	Opinion on Financial Statements

The financial statements and accompanying notes present fairly, in all  material respects, in conformity with U.S. generally accepted accounting  principles, the Foundation’s financial position as of September 30, 2004,  and 2003, and the results of its activities and its cash flows for the fiscal  years then ended. We reported on this matter during our audit of the Foundation’s  fiscal year 2003 financial statements. Specifically, section 104(c)(1) of the Congressional Award Act, as amended  (2 U.S.C. The Foundation’s Ability to Continue as a Going Concern

The Foundation incurred losses (decreases in net assets) of almost  $168,000 and $6,000 in fiscal years 2004 and 2003, respectively. Net assets as of  September 30, 2004 were approximately $42,000. In order to fulfill these responsibilities, we  examined, on a test basis, evidence supporting the amounts and  disclosures in the financial statements;  assessed the accounting principles used and significant estimates made   evaluated the overall presentation of the financial statements and notes;  read unaudited financial information for the Foundation for fiscal year   obtained an understanding of the internal control related to financial  reporting (including safeguarding assets) and compliance with laws and  regulations;   tested relevant internal control over financial reporting and compliance  and evaluated the design and operating effectiveness of internal control;  and  tested compliance with selected provisions of the Congressional Award  Act, as amended. We did not test compliance with all laws and regulations applicable to the  Foundation. We performed our work in accordance with U.S. generally accepted  government auditing standards. Presented below are the Foundation's expenses by functional classification  for the fiscal years ended September 30, 2004, and 2003.
Why GAO Did This Study

This report presents our opinion on the financial statements of the Congressional Award Foundation for the fiscal years ended September 30, 2004, and 2003. These financial statements are the responsibility of the Congressional Award Foundation. This report also presents (1) our opinion on the effectiveness of the Foundation's related internal control as of September 30, 2004, and (2) our conclusion on the Foundation's compliance in fiscal year 2004 with selected provisions of laws and regulations we tested. We conducted our audit pursuant to section 107 of the Congressional Award Act, as amended (2 U.S.C. 807), and in accordance with U.S. generally accepted government auditing standards.

What GAO Found

We have audited the statements of financial position of the Congressional Award Foundation (the Foundation) as of September 30, 2004, and 2003, and the related statements of activities and statements of cash flows for the fiscal years then ended. We found (1) the financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles, although substantial doubt exists about the Foundation's ability to continue as a going concern; (2) the Foundation did not have effective internal control over financial reporting (including safeguarding assets) and compliance with laws and regulations; and (3) a reportable noncompliance with one of the laws and regulations we tested.