348 



Smithsonian institution 



Report of the Chief Financial Officer 



systems are breaking down at an accelerated pace. Continual repair, restoradon, and 

 alteradon of the Smithsonian Insdtudon's facilities require careful management and 

 maximization of available resources for each project. 



The Smithsonian Institution's Office of Facilities Engineering and Operations (OFEO) is 

 responsible for overseeing repair and restoration of existing facilities, as well as construction 

 of new facilities. OFEO's primary focus is facilities management. However, its records are 

 not linked to the SFS. Acquiring and implementing a property equipment accounting and 

 management system as part of the Smithsonian Institution's new core financial system will 

 significantly improve the ability to account for repair, restoration, and alteration costs of the 

 Smithsonian Institution's facilities. Modernization of the Smithsonian Institution's financial 

 systems to ensure the integrity of resources entrusted is a top priority. 



Audit Requirements 



The Smithsonian Institution's financial statements are audited annually by an independent 

 public accounting firm, as required by OMB Bulletin No. 98-08, dated August 24, 1998, as 

 amended by OMB Bulletin No. 01-02, dated October 16, 2000, which implements the audit 

 provisions of the CFO Act of 1990, the Government Management Reform Act (GMRA) of 

 1994, and the Federal Financial Management Improvement Act of 1996. The Smithsonian 

 Institution's financial statements are prepared in conformity with the Financial Accounting 

 Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 116, 

 which establishes accounting standards for contributions, and SFAS 117, which requires that 

 financial statements for not-for-profit organizations include a Statement of Financial 

 Position, a Statement of Activities, and a Statement of Cash Flows. 



The Smithsonian Institution's financial statements are examined in accordance with generally 

 accepted auditing standards (GAAS). The Smithsonian Institution's Independent Auditor's 

 Report issued to the Smithsonian's Board of Regents and the accompanying Statement of 

 Financial Position of the Smithsonian Institution as of September 30, 2000, and related 

 Statements of Financial Activity and Cash Flows for the year then ended are provided here 

 for reference. 



