Battle of Normandy Foundation

The Battle of Normandy Foundation, a private, nonprofit organization formed in 1985 to honor America's World War II veterans and teach future generations about the war, has sought to build a memorial garden in Normandy, France. However, the Foundation has been plagued by serious managerial and financial problems. The Foundation recently had to appoint its fourth president in six months and change the leadership of its Board of Directors. Also, the Foundation's liabilities substantially exceed its assets. Unless the Foundation obtains enough funding and achieves management stability, it is uncertain whether it can pay to run the Memorial Garden and whether other projects will move forward. GAO's audit found that the Foundation spent the $3 million it received in 1993 from the U.S. Treasury for the design and construction of the memorial garden in Normandy in accordance with the Coins Act. The total recorded cost of the memorial garden through June 1994 was $3.6 million; however, about $400,000 was still owed to memorial garden contractors. Foundation officials concurred with a draft of this report.

GAO found that: (1) the Foundation has experienced significant managerial, financial, and internal control problems; (2) it is uncertain whether the Foundation will be able to pay current and future operating costs for the Memorial Garden or fund other projects such as the Wall of Liberty, since its liabilities substantially exceed its assets and its management structure is unstable; (3) the Foundation spent $3 million in surcharge coin proceeds it received in 1993 for the design and construction of the United States Armed Forces Memorial Garden in accordance with the Commemorative Coins Act; (4) as of June 1994, the total recorded cost of the Memorial Garden was $3.6 million and the Foundation owed $400,000 to Memorial Garden contractors; (5) between 1986 and 1992, the Foundation spent 63 percent of its revenues on program activities; (6) in 1993, the Foundation spent 83 percent of its revenues on program activities; (7) the Foundation properly contracted with a private tour company to promote the Memorial's tour activities; (8) the Foundation recovered $90,000 of the $120,000 a private contractor owed the Foundation; and (9) Battle of Normandy Foundation officials concurred with the findings presented in the report.