Financial Audit

Because of the significance of the federal debt for the government's financial statements, GAO audited the federal debt managed by the Bureau of the Public Debt. This report presents the results of GAO's audit of the Schedule of Federal Debt Managed by the Bureau for fiscal years 1999 and 1998. GAO found that (1) the Schedules of Federal Debt were presented fairly in conformity with generally accepted accounting principles, (2) the Bureau had effective control over financing reporting and compliance with laws and regulations related to the Schedule of Federal Debt, and (3) there was no reportable noncompliance in fiscal year 1999 with a selected provision of a law GAO tested.

GAO noted that: (1) the Schedules of Federal Debt, including the accompanying notes, present fairly, in all material respects, in conformity with generally accepted accounting principles, the balances as of September 30, 1999, 1998, and 1997, for federal debt managed by BPD, the related accrued interest payables and net unamortized discounts and premiums, and the related increases and decreases for the fiscal years ended September 30, 1999 and 1998; (2) BPD maintained, in all material respects, effective internal control over financial reporting and compliance as of September 30, 1999, that provided reasonable assurance that misstatements, losses, or noncompliance, material in relation to the Schedule of Federal Debt for the fiscal year ended September 30, 1999, would be prevented or detected on a timely basis; (3) management asserted that its internal control is effective based on criteria established under the Federal Managers' Financial Integrity Act of 1982 and the Office of Management and Budget (OMB) Circular A-123; (4) GAO found matters involving computer controls that it does not consider to be reportable conditions; (5) GAO's tests for compliance in FY 1999 with Statutory Debt Limits disclosed no instances of noncompliance that would be reportable under generally accepted government auditing standards or OMB Bulletin No. 98-08; (6) however, the objective of GAO's audit of the Schedule of Federal Debt for the fiscal year ended September 30, 1999, was not to provide an opinion on overall compliance with laws and regulations; and (7) accordingly, GAO does not express such an opinion.