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United States General Accounting Office: 
GAO: 

Report to Congressional Committees: 

March 2002: 

Financial Audit: 

American Battle Monuments Commission's Financial Statements for Fiscal 
Years 2001 and 2000: 
	
GAO-02-390: 

Contents: 

Letter: 

Auditor's Report: 

Opinion on Financial Statements: 

Opinion on Internal Control: 

Reportable Condition: 

Compliance with Laws and Regulations: 

Consistency of Other Information: 

Objectives, Scope, and Methodology: 

Agency Comments and Our Evaluation: 

Appendix: 

Appendix I: Report on Audit of the American Battle Monuments	
Commission: 

ABMC Annual Financial Report: 

Management's Discussion and Analysis: 

Consolidating Balance Sheet: 

Consolidating Statement of Net Cost and Changes in Net Position: 

Consolidating Statement of Budgetary Resources: 

Consolidating Statement of Financing: 

Notes to the Consolidating Financial Statements: 

Required Supplementary Stewardship Information: 

Statement of Heritage Assets: 

Note to Statement of Heritage Assets: 

Abbreviations: 

ABMC: American Battle Monuments Commission: 

FMFIA: Federal Managers' Financial Integrity Act of 1982: 

OMB: Office of Management and Budget: 

[End of section] 

United States General Accounting Office: 
Washington, D.C. 20548: 

March 1, 2002: 

The Honorable John D. Rockefeller, IV: 
Chairman: 
The Honorable Arlen Specter: 
Ranking Minority Member: 
Committee on Veterans' Affairs: 
United States Senate: 

The Honorable Christopher H. Smith: 
Chairman: 
The Honorable Lane Evans: 
Ranking Minority Member: 
Committee on Veterans' Affairs: 
House of Representatives: 

This report presents the results of our audits of the American Battle 
Monuments Commission's (ABMC) financial statements for the fiscal 
years ended September 30, 2001 and 2000. We prepared this report in 
accordance with 36 U.S.C. 2103. 

We are sending copies of this report to the chairmen and ranking 
minority members of the Senate Committee on Appropriations and the 
House Committee on Appropriations. We are also sending copies to the 
secretary of the treasury, the director of the Office of Management 
and Budget, the chairman of ABMC, and other interested parties. 

Should you or your staffs have any questions concerning this report, 
please contact me on (202) 512-9406 or Roger R. Stoltz, Assistant 
Director, at (202) 512-9408. Key contributors to this assignment were 
Patricia A. Summers and Bronwyn E. Hughes. 

Signed by: 

Jeanette M. Franzel: 
Acting Director: 
Financial Management and Assurance: 

[End of letter] 

United States General Accounting Office: 
Washington, D.C. 20548: 

To the Chairman of the American Battle Monuments Commission: 

In accordance with 36 U.S.C. 2103, as codified by Public Law 105-225, 
August 12, 1998, we are responsible for conducting audits of the 
agencywide financial statements of the American Battle Monuments 
Commission (ABMC). In our audits of ABMC for fiscal years 2001 and 
2000, we found: 

* the consolidating financial statements as of and for the fiscal year 
ended September 30, 2001, and comparative consolidated totals as of 
and for the fiscal year ended September 30, 2000, are presented fairly 
in conformity with U.S. generally accepted accounting principles; 

* although internal controls should be improved, ABMC had effective 
internal control over financial reporting (including safeguarding 
assets) and compliance with laws and regulations as of September 30, 
2001; and; 

* no reportable noncompliance with laws and regulations we tested. 

The following sections discuss in more detail (1) these conclusions 
and our conclusions on Management's Discussion and Analysis and other 
supplementary information and (2) the objective, scope, and 
methodology of our audit. 

Opinion on Financial Statements: 

The ABMC consolidating balance sheet as of September 30, 2001, and its 
related consolidating statements of net cost and changes in net 
position; budgetary resources; and financing, with accompanying notes 
for the fiscal year then ended, and comparative consolidated totals as 
of and for the fiscal year ended September 30, 2000, are presented 
fairly, in all material respects, in conformity with U.S. generally 
accepted accounting principles. 

Opinion on Internal Control: 

ABMC maintained, in all material respects, effective internal control 
over financial reporting (including safeguarding assets) and 
compliance as of September 30, 2001, that provided reasonable 
assurance that misstatements, losses, or noncompliance material in 
relation to the consolidating financial statements or to stewardship 
information would be prevented or detected on a timely basis. Our 
opinion is based upon criteria established under 31 U.S.C. 3512 (c), 
(d), [Federal Managers' Financial Integrity Act (FMFIA)], and Office 
of Management and Budget (OMB) Circular No. A-123, Management 
Accountability and Control. 

However, our work identified the need to improve certain internal 
control, as described below, that we consider a reportable condition. 
Such a condition is a deficiency in the design or operation of 
internal controls that, in our judgment, could adversely affect ABMC's 
ability to meet internal control objectives or meet OMB criteria for 
reporting matters under FMFIA. We did not consider these deficiencies 
to be a material weakness, which occurs when the design or operation 
of internal control components does not reduce to a relatively low 
level the risk that misstatements in amounts that would be material to 
the consolidating financial statements being audited may occur and not 
be detected within a timely period by employees in the normal course 
of performing their assigned duties. In addition, misstatements may 
occur in other ABMC financial information not included in this report 
as a result of this reportable condition. 

Reportable Condition: 

During our audit we noted three deficiencies in internal controls over 
information technology systems as of September 30, 2001, which are 
discussed below. ABMC management reported these deficiencies in its 
fiscal year 2001 FMFIA report and plans corrections through the 
implementation of a new accounting system on October 1, 2001, and 
through efforts to be taken in tandem with the new system. Because the 
new accounting system was implemented by ABMC after September 30, 
2001, we did not determine if the new system corrected these 
deficiencies. 

Inadequate controls over information technology systems consisted of 
the three following areas. 

* User Documentation: There was no user documentation to support the 
Clipper accounting system used by the European Regional Office and the 
dBase IV accounting system used by the Mediterranean Regional Office. 
Also, there was no user documentation on the payroll function of the 
Foxpro accounting system used by the headquarters office that involved 
14 civilian employees. Users learned how to use the systems mainly 
through on-the-job training and had limited support to explain how 
functions should be performed and to answer questions. However, the 
age of these systems and their subsequent replacement on October 1, 
2001, did not justify the cost of developing user documentation during 
fiscal year 2001. 

* Security Program: The headquarters office of ABMC had not documented 
an overall security planning and management program for security and 
privacy of information as of September 30, 2001. OMB Circular A-130, 
Management of Federal Information Resources, provides guidance on 
documenting such a program including control objectives, areas of 
responsibility, system rules, training, personnel controls, system 
interconnections, review of controls, and process authorization. This 
program would encompass the existing automated proprietary security 
program. ABMC plans to document an overall security planning and 
management program for its new accounting system after October 1, 2001. 

* Business Continuity Plan: The European Regional Office business 
continuity plan did not contain sufficient detail to ensure successful 
manual operations and timely recovery of automated processing in the 
event of a business interruption. Sufficient details would include 
identification of business operations and applications, personnel 
contacts, hardware and software needs, space requirements, and 
alternative sites. The office plans to revise its business continuity 
plan to include the new accounting system after October 1, 2001. 

Compliance with Laws and Regulations: 

Our tests for compliance with selected provisions of laws and 
regulations for fiscal year 2001 disclosed no instances of 
noncompliance reportable under U.S. generally accepted government 
auditing standards or OMB audit guidance. However, the objective of 
our audit was not to provide an opinion on overall compliance with 
laws and regulations. Accordingly, we do not express such an opinion. 

Consistency of Other Information: 

Management's Discussion and Analysis and a stewardship statement of 
heritage assets with an accompanying note contain a wide range of 
data, some of which are not directly related to the consolidating 
financial statements. We do not express an opinion on this 
information. However, we compared this information for consistency 
with the consolidating financial statements and discussed the methods 
of measurement and presentation with ABMC officials. Based upon this 
limited work, we found no material inconsistencies with the 
consolidating financial statements or nonconformance with OMB guidance. 

Objectives, Scope, and Methodology: 
ABMC management is responsible for (1) preparing the consolidating 
financial statements in conformity with U.S. generally accepted 
accounting principles, (2) establishing, maintaining, and assessing 
internal control to provide reasonable assurance that the broad 
internal control objectives of FMFIA are met, and (3) complying with 
applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether 
(1) ABMC consolidating financial statements are presented fairly, in 
all material respects, in conformity with U.S. generally accepted 
accounting principles and (2) ABMC management maintained effective 
internal control that provides reasonable, but not absolute, assurance 
that the following objectives were met. 

* Financial reporting: Transactions are properly recorded, processed, 
and summarized to permit the preparation of consolidating financial 
statements and stewardship information in conformity with U.S. 
generally accepted accounting principles, and assets are safeguarded 
against loss from unauthorized acquisition, use, or disposition. 

* Compliance with applicable laws and regulations: Transactions are 
executed in accordance with (1) laws governing the use of budgetary 
authority, (2) other laws and regulations that could have a direct and 
material effect on the financial statements, and (3) any other laws, 
regulations, or governmentwide policies identified by OMB guidance. 

We are also responsible for (1) testing compliance with selected 
provisions of laws and regulations that have a direct and material 
effect on the consolidating financial statements and for which OMB 
guidance requires testing and (2) performing limited procedures with 
respect to certain other information appearing in the ABMC annual 
financial report. In order to fulfill these responsibilities, we: 

* examined, on a test basis, evidence supporting the amounts and 
disclosures in the consolidating financial statements; 

* assessed the accounting principles used and significant estimates 
made by ABMC management; 

* evaluated the overall presentation of the consolidating financial 
statements; 

* obtained an understanding of internal control related to financial 
reporting (including safeguarding assets) and compliance with laws and 
regulations (including execution of transactions in accordance with 
budget authority); 

* obtained an understanding of the recording, processing, and 
summarizing of performance measures as reported in Management's 
Discussion and Analysis; 

* tested relevant internal controls over financial reporting and 
compliance, and evaluated the design and operating effectiveness of 
internal control; 

* considered the process for evaluating and reporting on internal 
control and financial management systems under FMFIA; and; 

* tested compliance with selected provisions of the following laws and 
regulations: 
- ABMC enabling legislation codified in 36 U.S.C. Chapter 21,
- public laws applicable to the World War II Memorial Fund,
- Departments of VA and HUD and Independent Agencies Appropriations 
Act 2001,
- Antideficiency Act,
- Pay and Allowance System for Civilian Employees, and
- Prompt Payment Act. 

We did not evaluate all internal controls relevant to operating 
objectives as broadly defined by FMFIA, such as those controls 
relevant to preparing statistical reports and ensuring efficient 
operations. We limited our internal control testing to those controls 
over financial reporting and compliance. Because of inherent 
limitations in internal control, misstatements due to error or fraud, 
losses, or noncompliance may nevertheless occur and not be detected. 
We also caution that projecting our evaluation to future periods is 
subject to the risk that controls may become inadequate because of 
changes in conditions or that the degree of compliance with controls 
may deteriorate. 

We did not test compliance with all laws and regulations applicable to 
ABMC. We limited our tests of compliance to those required by OMB 
audit guidance that we deemed applicable to ABMC's consolidating 
financial statements for the fiscal year ended September 30, 2001. We 
caution that noncompliance may occur and not be detected by these 
tests and that such testing may not be sufficient for other purposes. 

We performed our work in accordance with U.S. generally accepted 
government auditing standards and OMB audit guidance. 

Agency Comments and Our Evaluation: 

ABMC management concurred with the facts and conclusions contained in 
a draft of this report. 

Signed by: 

Jeanette M. Franzel: 
Acting Director: 
Financial Management and Assurance: 
January 31, 2002: 

[End of section] 

Appendix I: Report on Audit of the American Battle Monuments 
Commission: 

ABMC Annual Financial Report: 

American Battle Monuments Commission Annual Financial Report For The 
Fiscal Year Ended September 30, 2001: 

Management's Discussion and Analysis: 

American Battle Monuments Commission Management's Discussion And 
Analysis: 

History and Mission: 

Prior to 1923, no federal agency was responsible for commemorating the 
sacrifices and achievements of United States Armed Forces. After World 
War I, many American military units erected monuments and markers 
where they had served in Europe. These monuments and markers came in 
assorted sizes, shapes, and description. Many bore little relationship 
to the achievements of the units they represented, were poorly 
designed and constructed, erected on land not owned by the units, and 
without provision for future maintenance. 

In response to this, Congress in 1923 created the American Battle 
Monuments Commission (ABMC), a small, independent agency of the 
Executive Branch of the Federal Government. Congress gave the ABMC the 
responsibility of commemorating the sacrifices and achievements of 
American armed forces where they have served since April 6, 1917, the 
date of United States entry into World War I. 

From appropriated funds the ABMC administers, operates, and maintains 
24 permanent American Military Cemeteries on foreign soil and 27 stand 
alone memorials, monuments, and markers: five in the United States and 
22 in 14 foreign countries, the Northern Mariana Islands, and 
Gibraltar. Presently, 124,914 U.S. War Dead are interred in these 
cemeteries: 30,921 from World War I, 93,243 from World War II, and 750 
from the Mexican War. Additionally, almost 6,000 American veterans and 
others are interred in the Mexico City and Corozal (Panama) National 
Cemeteries. Commemorated individually by name on stone tablets at the 
World War I and II cemeteries and three memorials on U.S. soil are the 
94,120 U.S. servicemen and women who were missing in action, or lost 
or buried at sea during the World Wars and the Korean and Vietnam 
Wars. In addition, 38,320 Korean War Dead are honored in the Korean 
War Veterans Memorial database. 

The ABMC also administers trust funds to: (1) build memorials 
authorized by Congress, but financed primarily from private 
contributions, commemorative coin proceeds, and investment earnings; 
(2) decorate grave sites with flowers from private contributions; and 
(3) maintain and repair nonfederal war memorials with private 
contributions. 

Organizational Structure and Operations: 

The ABMC policymaking body is comprised of an 11-member Board of 
Commissioners appointed by the President for an indefinite term, and 
who serve without pay. The Commissioners establish policy and ensure 
proper staff functioning in carrying out the mission of the agency. 
During inspections, they observe, inquire, comment upon, and make 
recommendations on any and all aspects of Commission operations. The 
ABMC's daily operations are directed by a compensated Executive Level 
Secretary appointed by the President. 

The Commission's headquarters office in Arlington, Virginia, provides 
oversight for two regional offices, three cemeteries, and 10 
memorials, monuments, and markers. The European Region, headquartered 
near Paris, France, is responsible for 17 cemeteries and 15 memorials, 
monuments, and markers. The Mediterranean Region, headquartered in 
Rome, Italy, operates and maintains four cemeteries, one memorial, and 
one monument. 

For Fiscal Year (FY) 2001, the ABMC was authorized and employed 368 
full-time civilian employees. U.S. citizens constitute 61 staff 
members while the remaining 307 were foreign service nationals 
employed in the countries where the ABMC operates. 

The care of these shrines to our War Dead requires a formidable annual 
program of maintenance and repair of facilities, equipment, and 
grounds. This care includes upkeep of some 130,900 graves and 
headstones; and 73 memorial structures (within and external to the 
cemeteries) on 1,648.8 acres of land. Additionally, the ABMC maintains 
41 quarters, utilities, and maintenance facilities; 67 miles of roads 
and walks; 911 acres of flowering plants, fine lawns and meadows; 
nearly 3 million square feet of shrubs and hedges; and over 11,000 
ornamental trees. Care and maintenance of these resources is 
exceptionally labor intensive. Therefore, personnel costs accounted 
for 53 percent of the appropriation for FY 2001. The remaining 47 
percent was required to fund other operating costs and fluctuations in 
six foreign currencies. 

In order to insulate the Commission's annual appropriation against 
major changes in its purchasing power due to currency exchange 
fluctuations, legislation was enacted in 1988 establishing an ABMC 
currency fluctuation account in the U.S. Treasury. During FY 2001, the 
ABMC's net foreign currency exchange gain was about $2.7 million, 
while cumulative net gains in recent years have brought the currency 
account balance to $10 million as of September 30, 2001. 

For the last several years, the American Veterans of WW II, Korea, and 
Vietnam (AMVETS) and the Robert R. McCormick Tribune Foundation have 
generously donated chromatically tuned bells in carillons to enhance 
our overseas cemeteries. The AMVETS installed the first carillon in 
our Manila cemetery in 1985. They subsequently formed a partnership 
with the foundation, and in May 2001 delivered a carillon to the 
Florence American Cemetery, the eleventh they have donated over the 
years. 

Performance Goals and Results: 

The American Battle Monuments Commission prepared a five year 
Strategic Performance Plan and an Annual Performance Plan in 
accordance with the Government Performance and Results Act. These 
plans were coordinated with key Congressional Staffs and the Office of 
Management and Budget. While there will continue to be a number of 
refinements as these plans are implemented, the ABMC feels it has 
developed a creditable "road-map" for the future. The following goals 
and results are directly related to our Strategic Performance Plan. 

Goal 1: 

Provide the best, most extensive support possible to next of kin and 
other customers who use the services of the American Battle Monuments 
Commission. 

Results: 

On request, ABMC provides information and assistance to relatives and 
friends of War Dead interred in or commemorated at its facilities. 
These services include burial and memorialization site information, a 
letter authorizing non-fee passports for members of the immediate 
family traveling overseas primarily to visit the cemetery, in-country 
travel and accommodation information, and upon arrival at the 
cemetery, escort to the appropriate grave or memorialization site. 
Requestors are provided with a photograph that is taken of the 
appropriate headstone or section of the Tablet of the Missing which is 
mounted on a color lithograph of the cemetery or memorial where a 
serviceman or woman is buried or commemorated by name. ABMC also 
purchases floral decorations with donor funds and the donor is 
provided with a photograph of the headstone or Tablet of the Missing 
with the decoration in place. 

In addition to responding to inquiries by friends and relatives of the 
War Dead interred or memorialized at our sites, we also provide 
information to the Executive Branch, Members of Congress, other 
government agencies, historians, and other interested individuals. 

During FY 2001, the ABMC responded to approximately 9,000 inquiries, 
requiring over 8,700 written responses. In addition, we mailed out 
more than 3,700 cemetery lithographs. 

Some eight million American and foreign citizens visited ABMC 
cemeteries, memorials, monuments, and markers during FY 2001. Most 
visitors paid homage collectively to the interred Honored War Dead. 
Many had a more personal reason for visiting a friend or relative who 
never returned home. Regardless of the visitor's motivation, ABMC 
employees dedicated themselves to making each visit gratifying and 
memorable. 

Throughout the year at sites around the world, the ABMC hosts a 
variety of special events and commemorations including Memorial Day, 
Independence Day, and Veterans' Day. In addition, many military units 
hold ceremonies to honor their fallen comrades, and local 
organizations pay tribute to those who died while liberating the 
region. While some ceremonies received national attention and 
publicity, many drew local attention only. All ceremonies reflected a 
solemn respect for America's Honored War Dead, and appreciation for 
the sacrifices of all veterans. 

Our ABMC Internet web site at [hyperlink, http://www.abmc.gov] 
provides our customers a convenient, user friendly method to access 
information on the Commission as well as our cemeteries, memorials, 
monuments, markers, and headquarters operations. In addition, 
information on the U.S. War Dead from the Korean War and those 
interred or commemorated at our World War I and II cemeteries overseas 
are accessible on the web site. 

Goal 2: 

Reduce deferred maintenance backlog and conduct an effective 
Infrastructure Modernization Program at all the ABMC cemeteries, 
memorials, and monuments in order to maintain the desired appearance 
standards, and modernize our facilities. 

Results: 

During Fiscal Year 2001, the ABMC continued to reduce its backlog of 
Deferred Maintenance Projects from 526 at an estimated cost of $10.5 
million as of September 1998 to 97 projects at an estimated cost of 
$2.3 million as of September 30, 2001. Congress has provided $9.3 
million of funding to reduce the deferred maintenance backlog, 
including $1.8 million for FY 2001. We project that we will eliminate 
our backlog of maintenance projects by the end of Fiscal Year 2002. 

During Fiscal Year 2001, the ABMC continued a review of its facilities 
to determine the most appropriate course of action to continue 
implementation of our Infrastructure Modernization Program. This phase 
involved completing assessments of our electrical systems and 
analyzing the structural aspects of our facilities within the European 
and Mediterranean Regions that identified an estimated $3.1 million in 
projects. For FY 2001, Congress appropriated $1.0 million to fund this 
initiative. 

Goal 3: 

Determine if technology, outsourcing, and automation can improve 
efficiency and/or reduce the costs of foreign manpower. 

Results: 

During Fiscal Year 2001, the ABMC continued to review business 
practices in its overseas locations. Specifically, ABMC attempted to 
determine if the use of technology and outsourcing could reduce the 
cost of foreign manpower. For FY 2001, Congress provided $1.0 million 
funding with which we modernized equipment, developed evaluation 
processes, procured enhanced automation programs, and performed deep 
core aerification at selected cemeteries. 

Goal 4: 

Modernize ABMC's accounting systems and funding processes to ensure 
that funding is used and accounted for in the most efficient and 
effective manner. 

Results: 

ABMC accounting systems did not comply with current OMB Circular A-1 
27 requirements to maintain a single, integrated financial management 
system. 

In April 2000, ABMC contracted with PricewaterhouseCoopers (PwC) to 
assist in the selection of an automated, integrated accounting system 
that conforms to regulatory and user requirements. PwC began the 
process by documenting ABMC's accounting and finance business 
processes, assessing the Information Technology (IT) architecture at 
Field Offices and Headquarters, and developing both functional and 
technical requirements. PwC then identified replacement options for 
ABMC's current system. ABMC leadership selected as a preferred 
alternative a vendor, or vendor team, that can supply appropriate IT 
infrastructure and supporting resources, as well as resources to 
maintain and upgrade the selected software package. In August 2000, 
ABMC issued a Request for Proposals (RFP) to secure software and 
hosting services to replace the legacy accounting systems. The RFP 
responses were received on October 10, 2000. During December 2000, the 
vendors, USinternetworking (USi), Inc. and PeopleSoft Financials for 
Government and Education were selected as the application services 
provider and software team. Implementation began in calendar year 2001 
with the new system going operational in October 2001. 

The ABMC has made other significant strides over the last several 
years to streamline its financial processes and procedures. Except for 
10 Tunisian staff, all of ABMC's employees are paid through electronic 
funds transfer (EFT). The headquarters office paid approximately 85% 
of its vendor purchases through EFT in FY 2001. 

Goal 5: 

Establish a National World War II Memorial in Washington, DC, to honor 
those who served in the Armed Forces of the United States during World 
War II and commemorate the participation of the nation in that war. 

Results: 

In 1993, Congress directed the ABMC to establish a World War II 
Memorial in Washington, D.C. or its environs. It will be the first 
national memorial dedicated to the 16 million who served in uniform 
during the war, the more than 400,000 who gave their lives, and the 
millions who supported the war effort from the home front. Congress 
provided legislative authority for siting the memorial in the prime 
area of the capital, which includes the National Mall. The total 
estimated cost of the memorial project is $163 million, which includes 
site selection and design, construction, a National Park Service 
maintenance fee required by the Commemorative Works Act, 
groundbreaking and dedication ceremonies, fund raising and 
administration of the project from its inception in 1993 through 
projected completion in 2004. 

The Commission of Fine Arts (CFA), the National Capital Planning 
Commission (NCPC) and the Department of Interior approved selection of 
the Rainbow Pool site, a 7.4-acre area at the east end of the 
Reflecting Pool between the Lincoln Memorial and the Washington 
Monument. This prominent location is commensurate with the historical 
importance and lasting significance of World War II to America and the 
world. The memorial site was dedicated by President Clinton on 
Veterans' Day, November 11, 1995. 

Friedrich St. Florian, an architect based in Providence, Rhode Island, 
was selected to design the memorial through a two-stage, open 
competition through the General Services Administration's Design 
Excellence Program. President Clinton announced St.Florian's selection 
during a White House ceremony on January 17, 1997. 

The CFA and NCPC approved St.Florian's memorial design concept in 
1998, his preliminary design in 1999, and his final architectural 
design in 2000, clearing the way for a ceremonial groundbreaking that 
occurred on Veterans' Day, November 11, 2000. The Commissions 
subsequently approved the memorial ancillary elements (comfort 
station, information pavilion, contemplative area and access road) in 
late 2000, and granite selections in the summer of 2001. The memorial 
site and design have been the subject of 24 public hearings since 1995. 

The public fund raising began in earnest in March 1997 when the ABMC 
announced that former Senator Bob Dole would serve as the National 
Chairman of the World War II Memorial Campaign. He was joined in this 
endeavor by National Co-Chairman Frederick W. Smith, founder and CEO 
of FedEx Corporation. The fund-raising efforts were very positive 
during FY 2001, building on the groundwork and success of previous 
fiscal years. The campaign received $24 1 million in contributions 
during the fiscal year, bringing the total funds received from all 
sources, including the federal government, to $175 million. 

Support of the campaign came from hundreds of thousands of individual 
Americans, corporations, foundations, veterans groups, civic, 
fraternal and professional organizations, states, and students in 
schools across the country. 

Congress also approved several legislative items that supported the 
memorial fund-raising efforts. Public Law 106-117, signed November 30, 
1999, authorized the ABMC up to $65 million in borrowing authority to 
assure timely construction of the memorial. This legislation also 
extended the authorization for initiation of the memorial construction 
to December 31, 2005; granted ABMC permanent authority to solicit and 
receive funds and preserves any such funds in ABMC controlled interest 
bearing Treasury Accounts, including any funds remaining after 
completion of the memorial; and increased ABMC's authority to accept 
volunteer services and to use intellectual property interests. In 
addition, Public Law 106-398, signed October 30, 2000, designated $6 
million of the proceeds expected from the sale of titanium from the 
National Defense Stockpile for completion of the design, 
groundbreaking, construction, maintenance, and dedication of the 
memorial. 

Our greatest challenge has been to ensure that construction is 
completed so that as many of the World War II generation as possible 
will live to see and be honored by the memorial. Although a 
construction permit was issued by the National Park Service in January 
2001, a coalition of groups opposed to the site and design filed a 
federal lawsuit to block the project. Construction, which should have 
begun in March 2001, was delayed by this legal action. Public Law 107-
11, signed on Memorial Day 2001, directed that the memorial "be 
constructed expeditiously at the dedicated Rainbow Pool site" and 
provided that previous site and design decisions "shall not be subject 
to judicial review." On the basis of this legislation, the federal 
lawsuit was dismissed, clearing the way for award of a construction 
contract in June 2001. Actual construction began in September 2001 and 
the memorial is expected to be completed and dedicated in the spring 
of 2004. 

Financial Statements: 

The ABMC is required by 36 U.S.C. 2103, as codified by Public Law 105-
225, August 12, 1998, to prepare agency wide financial statements 
annually, beginning with FY 1997, and to have such financial 
statements audited by the U.S. General Accounting Office (GAO) in 
accordance with generally accepted government auditing standards. 

While the financial statements have been prepared from the books and 
records of the ABMC in conformity with U.S. generally accepted 
accounting principles used by the Federal Government, the statements 
are in addition to the financial reports used to monitor and control 
budgetary resources which are prepared from the same books and 
records. Also, the financial statements should be read with the 
realization that they are for a component of the U.S. Government, a 
sovereign entity. One implication of this is that liabilities cannot 
be liquidated without legislation that provides resources to do so. 

Audits of ABMC for FY 1997 and FY 1998 were performed by the public 
accounting firm of KPMG under contract to the GAO. Audits of ABMC for 
FY 1999, FY 2000, and FY 2001 were conducted by GAO. Additionally, 
separate audits of the World War II Fund for FY 1999 and FY 2000 were 
conducted by the public accounting firm of KPMG. Copies of the 
separate KPMG reports are available upon request. 

Systems, Controls, and Legal Compliance: 

The ABMC is in the process of modernizing its accounting system as 
discussed in goal 4 to include controls in place over electronic data 
processing to prevent unauthorized access and computer viruses. The 
ABMC has assessed the effectiveness of its internal controls to 
provide reliable financial and performance reporting, and compliance 
with applicable laws and regulations. 

Future Effects on ABMC: 

The ABMC continues to support next of kin and others who use our 
services and to maintain the final resting places of American War Dead 
on foreign soil. Despite its aging facilities, ABMC strives to 
maintain high standards of physical appearance and operational 
efficiency to honor those who have died in the service of our country. 
The construction of the National World War II Memorial in Washington, 
D.C. will commemorate those who served and died in that conflict, as 
well as those who served on the home front. 

[End of Management's Discussion and Analysis] 

Consolidating Balance Sheet: 

American Battle Monuments Commission: 
Consolidating Balance Sheet:
As of September 30, 2001:
(With Comparative Consolidated Total as of September 30, 2000): 

Assets: 

Intragovernmental: 
			
Fund balances with Treasury (note 2): 
General Fund, Cemeteries and Memorials: $17,930,042; 
Trust Funds, World War II Memorial: $277,700; 
Trust Funds, Other Trust Funds: $259,945; 
Total Funds, 2001, Total: $18,467,687; 
Total Funds, 2000, Total: $19,493,664. 

Treasury investments, net (note 3): 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: $95,555,258; 
Trust Funds, Other Trust Funds: $26,716; 
Total Funds, 2001, Total: $95,581,974; 
Total Funds, 2000, Total: $71,238,328. 

Interest receivable: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: $1,895,213; 
Trust Funds, Other Trust Funds: $191; 
Total Funds, 2001, Total: $1,895,404; 
Total Funds, 2000, Total: $1,125,233. 

Total intragovernmental	
General Fund, Cemeteries and Memorials: $17,930,042; 
Trust Funds, World War II Memorial: $97,728,171; 
Trust Funds, Other Trust Funds: $286,852; 
Total Funds, 2001, Total: $115,945,065; 
Total Funds, 2000, Total: $91,857,225. 

Cash and foreign accounts (note 4): 
General Fund, Cemeteries and Memorials: $1,155,239; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $1,155,239; 
Total Funds, 2000, Total: $1,958,913. 

Contributions receivable, net (note 5): 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: $17,972,843; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $17,972,843; 
Total Funds, 2000, Total: $26,833,984. 

General property, plant, & equipment, net (note 6): 
General Fund, Cemeteries and Memorials: $1,981,381; 
Trust Funds, World War II Memorial: $46,549; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $2,027,930; 
Total Funds, 2000, Total: $392,775. 

Total Assets: 
General Fund, Cemeteries and Memorials: $21,066,662; 
Trust Funds, World War II Memorial: $115,747,563; 
Trust Funds, Other Trust Funds: $286,852; 
Total Funds, 2001, Total: $137,101,077; 
Total Funds, 2000, Total: $121,042,897. 

Liabilities: 
					
Liabilities covered by budgetary resources: 

Intragovernmental: 

Accounts payable: 
General Fund, Cemeteries and Memorials: $140,564; 
Trust Funds, World War II Memorial: $44,587; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $185,151; 
Total Funds, 2000, Total: $1,173,950. 

Accrued salaries and benefits: 
General Fund, Cemeteries and Memorials: $149,676; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $149,676; 
Total Funds, 2000, Total: $169,503. 

Total intragovernmental: 
General Fund, Cemeteries and Memorials: $290,240; 
Trust Funds, World War II Memorial: $44,587; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $334,827; 
Total Funds, 2000, Total: $1,343,453. 

Accounts payable: 
General Fund, Cemeteries and Memorials: $1,321,564; 
Trust Funds, World War II Memorial: $309,029; 
Trust Funds, Other Trust Funds: $275; 
Total Funds, 2001, Total: $1,630,868; 
Total Funds, 2000, Total: $2,295,795. 

Accrued salaries and benefits: 
General Fund, Cemeteries and Memorials: $792,434; 
Trust Funds, World War II Memorial: $20,131; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $812,565; 
Total Funds, 2000, Total: $1,337,023. 

Other liabilities: 
General Fund, Cemeteries and Memorials: $85,774; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $85,774; 
Total Funds, 2000, Total: $99,642. 

Liabilities not covered by budgetary resources: 

Unfunded annual leave: 
General Fund, Cemeteries and Memorials: $656,892; 
Trust Funds, World War II Memorial: $39,875; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $696,767; 
Total Funds, 2000, Total: $781,375. 

Separation pay liability (note 8): 
General Fund, Cemeteries and Memorials: $773,582; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $773,582; 
Total Funds, 2000, Total: $762,395. 

Total liabilities: 
General Fund, Cemeteries and Memorials: $3,920,486; 
Trust Funds, World War II Memorial: $413,622; 
Trust Funds, Other Trust Funds: $275; 
Total Funds, 2001, Total: $4,334,383; 
Total Funds, 2000, Total: $6,619,683. 

Commitments and contingencies (notes 7, 11): 

Net Position (notes 9, 10): 

Unexpended appropriations: 
General Fund, Cemeteries and Memorials: $16,563,010; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $16,563,010; 
Total Funds, 2000, Total: $13,870,281. 

Cumulative results of operations: 
General Fund, Cemeteries and Memorials: $583,166; 
Trust Funds, World War II Memorial: $115,333,941; 
Trust Funds, Other Trust Funds: $286,577; 
Total Funds, 2001, Total: $116,203,684; 
Total Funds, 2000, Total: $100,552,933. 

Total Net Position: 
General Fund, Cemeteries and Memorials: $17,146,176; 
Trust Funds, World War II Memorial: $115,333,941; 
Trust Funds, Other Trust Funds: $286,577; 
Total Funds, 2001, Total: $132,766,694; 
Total Funds, 2000, Total: $114,423,214. 

Total Liabilities and Net Position: 
General Fund, Cemeteries and Memorials: $21,066,662; 
Trust Funds, World War II Memorial: $115,747,563; 
Trust Funds, Other Trust Funds: $286,852; 
Total Funds, 2001, Total: $137,101,077; 
Total Funds, 2000, Total: $121,042,897. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Balance Sheet] 

Consolidating Statement of Net Cost and Changes in Net Position: 

American Battle Monuments Commission: 
Consolidating Statement Of Net Cost And Changes In Net Position: 
For the Year Ended September 30, 2001: 
(With Comparative Consolidated Total For the Year Ended September 30, 
2000): 

Costs: 

Program operations: 

Operations and maintenance: 
General Fund, Cemeteries and Memorials: $24,909,158; 
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: $109,063; 
Total Funds, 2001, Total: $25,018,221; 
Total Funds, 2000, Total: $26,045,001. 

Fund raising: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $3,473,850; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $3,473,850; 
Total Funds, 2000, Total: $6,695,212. 

Administrative: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $939,890; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $939,890; 
Total Funds, 2000, Total: $1,416,191. 

Educational support: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $65,385; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $65,385; 
Total Funds, 2000, Total: $201,252. 

Design and construction: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $10,131,861; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $10,131,861; 
Total Funds, 2000, Total: $4,945,316. 

Memorial costs (note 6): 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $74,427; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $74,427; 
Total Funds, 2000, Total: $806,334. 

Property, plant and equipment (note 6): 
General Fund, Cemeteries and Memorials: $1,738,613; 
Trust Funds, World War II Memorial (note 10): $9,087; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $1,747,700; 
Total Funds, 2000, Total: $1,263,474. 

Foreign currency (gains), losses, net: 
General Fund, Cemeteries and Memorials: ($2,678,256); 
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($2,678,256); 
Total Funds, 2000, Total: ($2,383,297). 

Net Cost of Operations: 
General Fund, Cemeteries and Memorials: $23,969,515; 
Trust Funds, World War II Memorial (note 10): $14,694,500; 
Trust Funds, Other Trust Funds: $109,063; 
Total Funds, 2001, Total: $38,773,078; 
Total Funds, 2000, Total: $38,989,483. 

Financing Sources: 

Expended appropriations: 
General Fund, Cemeteries and Memorials: $27,928,853; 
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $27,928,853; 
Total Funds, 2000, Total: $26,621,902. 

Foreign currency stabilization (gain): 
General Fund, Cemeteries and Memorials: ($2,678,256); 	
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($2,678,256); 
Total Funds, 2000, Total: $($2,383,297). 

Contributions: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $24,138,578; 
Trust Funds, Other Trust Funds: $190,545; 
Total Funds, 2001, Total: $24,329,123; 
Total Funds, 2000, Total: $66,983,966. 

Investment earnings: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial (note 10): $4,432,478; 
Trust Funds, Other Trust Funds: $1,125; 
Total Funds, 2001, Total: $4,433,603; 
Total Funds, 2000, Total: $2,345,332. 

Imputed financing (note 8): 
General Fund, Cemeteries and Memorials: $410,507; 	
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $410,507; 
Total Funds, 2000, Total: $465,223. 

Total financing sources: 
General Fund, Cemeteries and Memorials: $25,661,104; 
Trust Funds, World War II Memorial (note 10): $28,571,056; 
Trust Funds, Other Trust Funds: $191,670; 
Total Funds, 2001, Total: $54,423,830; 
Total Funds, 2000, Total: $94,033,126. 

Net Results of Operations: 
General Fund, Cemeteries and Memorials: $1,691,589; 
Trust Funds, World War II Memorial (note 10): $13,876,556; 
Trust Funds, Other Trust Funds: $82,607; 
Total Funds, 2001, Total: $15,650,752; 
Total Funds, 2000, Total: $55,043,643. 

Changes in Net Position: 

Increase in unexpended appropriations: 
General Fund, Cemeteries and Memorials: $2,692,728; 
Trust Funds, World War II Memorial (note 10): [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $2,692,728; 
Total Funds, 2000, Total: $4,113,646. 

Net Position - start of the year: 
General Fund, Cemeteries and Memorials: $12,761,859; 
Trust Funds, World War II Memorial (note 10): $101,457,385; 
Trust Funds, Other Trust Funds: $203,970; 
Total Funds, 2001, Total: $114,423,214; 
Total Funds, 2000, Total: $55,265,925. 

Net Position - end of the year: 
General Fund, Cemeteries and Memorials: $17,146,176; 
Trust Funds, World War II Memorial (note 10): $115,333,941; 
Trust Funds, Other Trust Funds: $286,577; 
Total Funds, 2001, Total: $132,766,694; 
Total Funds, 2000, Total: $114,423,214. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Statement of Net Cost and Changes in Net 
Position] 

Consolidating Statement of Budgetary Resources: 

American Battle Monuments Commission: 
Consolidating Statement Of Budgetary Resources:
For the Year Ended September 30, 2001:
(With Comparative Consolidated Total For the Year Ended September 30, 
2000): 

Budgetary Resources: 

Budgetary authority - gross: 
General Fund, Cemeteries and Memorials: $28,000,000; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $28,000,000; 
Total Funds, 2000, Total: $28,467,000. 

Budgetary authority - rescinded: 
General Fund, Cemeteries and Memorials: ($61,600); 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($61,600); 
Total Funds, 2000, Total: ($108,175). 

Unobligated balances, start of year: 
General Fund, Cemeteries and Memorials: $7,356,695; 
Trust Funds, World War II Memorial: $136,095,217; 
Trust Funds, Other Trust Funds: $151,883; 
Total Funds, 2001, Total: $143,603,795; 
Total Funds, 2000, Total: $25,846,341. 

Borrowing authority: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: ($65,000,000); 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($65,000,000); 
Total Funds, 2000, Total: $65,000,000. 

Spending authority from offsetting collections: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: $35,368,662; 
Trust Funds, Other Trust Funds: $190,431; 
Total Funds, 2001, Total: $35,559,093; 
Total Funds, 2000, Total: $63,983,680. 

Total Budgetary Resources: 
General Fund, Cemeteries and Memorials: $35,295,095; 
Trust Funds, World War II Memorial: $106,463,879; 
Trust Funds, Other Trust Funds: $342,314; 
Total Funds, 2001, Total: $142,101,288; 
Total Funds, 2000, Total: $183,188,846. 

Status of Budgetary Resources: 

Obligations incurred: 
General Fund, Cemeteries and Memorials: $24,806,808; 
Trust Funds, World War II Memorial: $32,401,040; 
Trust Funds, Other Trust Funds: $91,150; 
Total Funds, 2001, Total: $57,298,998; 
Total Funds, 2000, Total: $39,585,051. 

Unobligated balances, end of year: 
General Fund, Cemeteries and Memorials: $10,488,287; 
Trust Funds, World War II Memorial: $74,062,839; 
Trust Funds, Other Trust Funds: $251,164; 
Total Funds, 2001, Total: $84,802,290; 
Total Funds, 2000, Total: $143,603,795. 

Total Status of Budgetary Resources: 
General Fund, Cemeteries and Memorials: $35,295,095; 
Trust Funds, World War II Memorial: $106,463,879; 
Trust Funds, Other Trust Funds: $342,314; 
Total Funds, 2001, Total: $142,101,288; 
Total Funds, 2000, Total: $183,188,846. 

Outlays: 

Obligations incurred: 
General Fund, Cemeteries and Memorials: $24,806,808; 
Trust Funds, World War II Memorial: $32,401,040; 
Trust Funds, Other Trust Funds: $91,150; 
Total Funds, 2001, Total: $57,298,998; 
Total Funds, 2000, Total: $39,585,051. 

Plus: obligated balances, start of year: 
General Fund, Cemeteries and Memorials: $9,436,834; 
Trust Funds, World War II Memorial: $4,224,694; 
Trust Funds, Other Trust Funds: $52,191; 
Total Funds, 2001, Total: $13,713,719; 
Total Funds, 2000, Total: $10,706,062. 

Less: obligated balances, end of year: 
General Fund, Cemeteries and Memorials: ($8,478,961); 
Trust Funds, World War II Memorial: ($20,343,796); 
Trust Funds, Other Trust Funds: ($34,017); 
Total Funds, 2001, Total: ($28,856,774); 
Total Funds, 2000, Total: ($13,713,719). 

Total Outlays: 
General Fund, Cemeteries and Memorials: $25,764,681; 
Trust Funds, World War II Memorial: $16,281,938; 
Trust Funds, Other Trust Funds: $109,324; 
Total Funds, 2001, Total: $42,155,943; 
Total Funds, 2000, Total: $36,577,394. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Statement of Budgetary Resources] 

Consolidating Statement of Financing: 

American Battle Monuments Commission: 
Consolidating Statement Of Financing:
For the Year Ended September 30, 2001:
(With Comparative Consolidated Total For the Year Ended September 30, 
2000): 

Obligations and Nonbudgetary Resources: 
					
Obligations incurred: 
General Fund, Cemeteries and Memorials: $24,806,808; 
Trust Funds, World War II Memorial: $32,401,040; 
Trust Funds, Other Trust Funds: $91,150; 
Total Funds, 2001, Total: $57,298,998; 
Total Funds, 2000, Total: $39,585,051. 

Imputed retirement and audit services: 
General Fund, Cemeteries and Memorials: $410,507; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $410,507; 
Total Funds, 2000, Total: $465,223. 

Total Obligations and Nonbudgetary Resources: 
General Fund, Cemeteries and Memorials: $25,217,315; 
Trust Funds, World War II Memorial: $32,401,040; 
Trust Funds, Other Trust Funds: $91,150; 
Total Funds, 2001, Total: $57,709,505; 
Total Funds, 2000, Total: $40,050,274. 

Resources That Do Not Fund Net Cost of Operations: 

Cost capitalized on the balance sheet: 
General Fund, Cemeteries and Memorials: ($1,789,685); 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($1,789,685); 
Total Funds, 2000, Total: ($38,179). 

Decrease in separation pay: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: [Empty]; 
Total Funds, 2000, Total: ($38,421). 

Decrease in unfunded annual leave: 
General Fund, Cemeteries and Memorials: ($40,892); 
Trust Funds, World War II Memorial: ($43,716); 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: ($84,608); 
Total Funds, 2000, Total: [Empty]. 

Undelivered orders - start of year: 
General Fund, Cemeteries and Memorials: $6,513,586; 
Trust Funds, World War II Memorial: $2,172,281; 
Trust Funds, Other Trust Funds: $51,654; 
Total Funds, 2001, Total: $8,737,521; 
Total Funds, 2000, Total: $7,218,326. 

Less: Undelivered orders - end of year: 
General Fund, Cemeteries and Memorials: ($6,074,722); 
Trust Funds, World War II Memorial: ($19,970,047); 
Trust Funds, Other Trust Funds: ($33,741); 
Total Funds, 2001, Total: ($26,078,510); 
Total Funds, 2000, Total: ($8,737,521). 

Total Resources That Do Not Fund Net Cost of Operations: 
General Fund, Cemeteries and Memorials: ($1,391,713); 
Trust Funds, World War II Memorial: ($17,841,482); 
Trust Funds, Other Trust Funds: $17,913; 
Total Funds, 2001, Total: ($19,215,282); 
Total Funds, 2000, Total: (41,595,795). 

Costs That Do Not Require Resources: 

Depreciation: 
General Fund, Cemeteries and Memorials: $132,726; 
Trust Funds, World War II Memorial: $21,802; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $154,528; 
Total Funds, 2000, Total: $154,053; 

In-kind expenses: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: $113,140; 	
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $113,140; 
Total Funds, 2000, Total: $356,567. 

Total Costs That Do Not Require Resources: 
General Fund, Cemeteries and Memorials: $132,726; 
Trust Funds, World War II Memorial: $134,942; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $267,668; 
Total Funds, 2000, Total: $510,620. 

Financing Sources Yet to be Provided: 

Increase in unfunded annual: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: [Empty]; 
Total Funds, 2000, Total: $24,384. 

Increase in separation pay liability: 
General Fund, Cemeteries and Memorials: $11,187; 
Trust Funds, World War II Memorial: [Empty]; 
Trust Funds, Other Trust Funds: [Empty]; 
Total Funds, 2001, Total: $11,187; 
Total Funds, 2000, Total: [Empty]. 

Net Cost of Operations: 
General Fund, Cemeteries and Memorials: $23,969,515; 
Trust Funds, World War II Memorial: $14,694,500; 
Trust Funds, Other Trust Funds: $109,063; 
Total Funds, 2001, Total: $38,773,078; 
Total Funds, 2000, Total: $38,989,483. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Statement of Financing] 

Notes to the Consolidating Financial Statements: 

American Battle Monuments Commission: 
Notes To The Consolidating Financial Statements: 
For the Fiscal Years Ended September 30, 2001 and 2000: 

Note 1. Significant Accounting Policies: 

A. Basis of Presentation: 

The accompanying consolidating financial statements present the 
financial position, net cost of operations, changes in net position, 
budgetary resources, and financing of the American Battle Monuments 
Commission (ABMC) in conformity with U.S. generally accepted 
accounting principles as used by the federal government. There are no 
intra-entity transactions to be eliminated. 

B. Reporting Entity and Funding Sources: 

The ABMC is an independent agency within the Executive Branch of the 
Federal Government. The ABMC was created by an Act of March 4, 1923, 
the current provisions of which are now codified in 36 U.S.C. chapter 
21 by Public Law 105-225, August 12, 1998. The ABMC's mission is to 
commemorate the sacrifices and achievements of U.S. Armed Forces where 
they have served overseas since April 6, 1917, and at locations within 
the United States when directed by the Congress. The ABMC designs, 
administers, constructs, operates, and maintains 24 American military 
cemeteries and 27 memorials, monuments, and markers (herein 
collectively referred to as memorials). All of the cemeteries are 
located on foreign soil. Five memorials are located in the United 
States, and the remainder in fourteen foreign countries, the Marianas, 
and Gibraltar. The ABMC is headquartered in Arlington, Virginia. Field 
operations are conducted through offices located near Paris, France 
and in Rome, Italy; Manila, the Philippines; Mexico City, Mexico; and 
Panama City, Panama. 

The ABMC is also responsible for designing and constructing the 
national World War II Memorial to be located on the Mall in 
Washington, D.C. In accordance with the Commemorative Works Act, the 
Secretary of Interior will assume responsibility for maintenance of 
the Memorial after its completion. Also in accordance with the Act, 
the ABMC provided $6.6 million for deposit in a separate Treasury 
account to offset the Memorial's costs of perpetual maintenance.
The ABMC's programs are funded primarily through appropriations 
available without fiscal year limitation. The ABMC also administers 
several trust funds established to: (1) build memorials authorized by 
the Congress, but which are funded primarily by private contributions, 
commemorative coin sales proceeds, and investment earnings; (2) 
decorate grave sites; and (3) maintain and repair certain non-federal 
war memorials. 

C. Basis of Accounting: 

The ABMC proprietary (assets, liabilities, equity, revenue, and 
expenses) accounts are maintained on the accrual basis, where 
appropriated funds are accounted for by appropriation year, operating 
expenses are recorded as incurred, and depreciation is taken on 
property, plant, and equipment not otherwise classified as heritage 
assets. The ABMC budgetary accounts are maintained on a budgetary 
basis, which facilitates compliance with legal constraints and 
statutory funds control requirements. The functional budget 
classification is Veterans' Benefits and Services. 

D. Fund Balances with Treasury: 

The ABMC's cash receipts and disbursements are processed by the U.S. 
Treasury. Fund balances with Treasury are comprised of appropriated 
general funds and trust funds. 

E. Investments: 

In accordance with Public Law 103-32, the ABMC is authorized to invest 
World War II Memorial Trust Fund receipts in U.S. Treasury securities. 
The ABMC is authorized under a modification to its original 
legislation to invest receipts from certain non-federal war memorial 
organizations in U.S. Treasury securities. These Treasury investments 
are recorded at par value plus unamortized premium or less unamortized 
discount. Premiums and discounts are amortized using the interest 
method. 

F. Foreign Currency: 

The ABMC operating offices maintain accounts of foreign currencies to 
be used in making payments in foreign countries. These accounts are 
reported at the U.S. dollar equivalent using the Treasury exchange 
rate in effect on the last day of the fiscal year. 

G. Contributions and Revenue Recognition: 

Unrestricted contributions or unconditional promises to give to the 
ABMC are recognized as revenue in the period of initial pledge when 
sufficient verifiable evidence of pledges exists. Conditional promises 
to give are recorded as revenue when the condition has been met. 
Unconditional promises to give may be temporarily restricted or 
permanently restricted. Temporarily restricted promises to give are 
released from restriction when the conditions have been met. 
Permanently restricted promises to give are recorded as revenue in the 
period donated, however, donors generally allow only the earned income 
to be used for general or specific purposes. In-kind contributions of 
goods and services are recognized at fair value by the ABMC at the 
time the goods are received or the services are performed. Multi-year 
contributions due over a period of time are discounted to their 
present value based upon the short term Treasury interest rate. 

H. Operating Materials & Supplies Inventories: 

The ABMC has determined that it is more cost beneficial to record 
operating materials and supplies as an expense when purchased rather 
than when consumed. Consequently, the ABMC reports no operating 
materials or supplies inventories. 

I. Property, Plant, and Equipment: 

Purchases of general property, plant, and equipment (PP&E) of $25,000 
or less are expensed in the year of acquisition. Purchases of personal 
property exceeding $25,000 are capitalized and depreciated on a 
straight-line basis over five years. Expenditures relating to real 
property exceeding $25,000 are capitalized and depreciated on a 
straight-line basis over 30 years. Heritage assets are assets 
possessing significant cultural, architectural, or aesthetic 
characteristics. The ABMC considers cemeteries, memorials, monuments, 
and markers acquired through purchase or transfer to be heritage 
assets. Heritage assets are acquired through purchase or transfer and 
are accounted for in the ABMC's property records, and are not 
presented in the balance sheet. Withdrawals of heritage assets are 
recorded upon formal agreement with recipients. Additional unaudited
information concerning heritage assets is found in the Statement of 
Heritage Assets as required supplementary stewardship information. 
Cemetery land is owned by the foreign countries in which cemeteries 
are located, and is provided to the United States in perpetuity. 

J. Employee Benefits: 

Most ABMC civilian U.S. nationals hired after December 31, 1983 are 
covered by the Federal Employees' Retirement System (FERS), which was 
implemented on January 1, 1984. ABMC civilian U.S. nationals hired on 
or before December 31, 1983 could elect to transfer to FERS, or
remain with the Civil Service Retirement System (CSRS). For FERS 
employees, the ABMC withholds .80 percent of base pay, and as employer 
contributes 10.7 percent of base pay to this retirement system. For 
Federal Insurance Contribution Act tax and Medicare, the ABMC 
withholds 7.65 percent from FERS employees' earnings, matches this 
amount on a dollar-for-dollar basis, and remits the total amount to 
the Social Security Administration. The ABMC withholds 7.00 percent
of base pay plus 1.45 percent for Medicare from CSRS employees' 
earnings, and as employer contributes 8.51 percent of base pay plus 
1.45 percent for Medicare. These deductions are then remitted to the 
Office of Personnel Management (OPM) and the Social Security 
Administration. OPM is responsible for government-wide reporting of 
FERS and CSRS assets, accumulated plan benefits, and unfunded 
liabilities. 

On April 1, 1987 the Federal government instituted the Thrift Saving 
Plan (TSP), a retirement savings and investment plan for employees 
covered by FERS and CSRS. The ABMC contributes a minimum of 1 percent 
of FERS employees' base pay to the TSP. FERS employees have the option 
of contributing up to 11 percent of their base pay on a tax deferred 
basis to TSP, which the ABMC matches up to 4 percent of base pay. CSRS 
employees may contribute up to 6 percent of their base pay to TSP on a 
tax deferred basis, and receive no matching contribution from the ABMC. 

Retirement and other benefits for military personnel detailed to the 
ABMC are provided by the Military Retirement System (MRS). The 
military services bill the ABMC quarterly for reimbursement of 
assignees' pay and benefits, including MRS related amounts. The 
Department of Defense is responsible for reporting MRS assets, 
accumulated plan benefits, and unfunded liabilities. During FY2001 all 
military positions detailed to ABMC were converted to civilian. 

Retirement and other benefits for the ABMC's foreign national 
employees are paid by the ABMC in accordance with the provisions of 
ten host nation agreements negotiated by the U.S. Department of State. 

Annual leave is accrued as earned, and the resulting unfunded 
liability is reduced as leave is taken. Separation pay is provided in 
certain countries according to host nation agreements. Separation pay 
is accrued as earned, and the resulting unfunded liability is reduced 
when paid to the foreign national leaving the employ of the ABMC. Each 
year the balance in the accrued separation pay and annual leave 
accounts is adjusted to reflect current pay rates. To the extent that 
current or prior year appropriations are not available to fund annual 
leave and separation pay, funding will be obtained from future 
financing resources. Sick leave and other types of unvested leave are 
expensed when incurred. 

K. Imputed Financing: 

The ABMC received imputed financing for retirement and other benefits 
paid by OPM and financial audits paid by the General Accounting Office 
(GAO) during FY 2001 and FY 2000. The ABMC recognized these expenses 
and related imputed financing in the financial statements. 

L. Use of Estimates: 

The preparation of financial statements requires management to make 
estimates and assumptions that affect the reported amount of assets 
and liabilities, as well as the disclosure of contingent assets and 
liabilities at the date of the financial statements, and the amount of 
revenues and expenses reported during the reporting period. Actual 
results could differ from those estimates. 

M. Borrowing Authority: 

On November 30, 1999, Public Law 106-117 created special borrowing 
authority to assure the groundbreaking, construction, and dedication 
of the National World War II Memorial is completed on a timely basis 
but no later than December 31, 2005. The ABMC may borrow up to $65 
million at Treasury interest rates not to exceed twenty years for 
repayment. Although $65 million was apportioned in FY 2000, the ABMC 
met the requirements of the Act in FY 2000 without obligating any of 
the borrowing authority. In FY 2001, the borrowing authority was not 
required and was not apportioned. Therefore, the borrowing authority 
is shown as a reversal on the Consolidating Statement of Budgetary 
Resources. 

N. Comparative Data: 

Comparative data is presented for FY 2001 and FY 2000. Certain 
reclassifications of FY 2000 amounts were made for comparability with 
the FY 2001 presentation. 

Note 2. Fund Balances with Treasury: 

All undisbursed account balances with the U.S. Treasury, as reflected 
in the ABMC's records, as of September 30 were: 

General Fund Balance: 
2001 General Fund: $7,895,092; 
2001 Trust Funds: [Empty]; 
2001 Total: $7,895,092; 
2000 Total: $7,893,655. 

Monument Fund - Washington Office: 
2001 Trust Funds: $19,437; 
2001 Total: $19,437; 
2000 Total: $16,709. 

Monument Fund - European Offices: 
2001 Trust Funds: $75,807; 
2001 Total: $75,807; 
2000 Total: $49,763. 

Floral Decorations Fund: 
2001 Trust Funds: $72,691; 
2001 Total: $72,691; 
2000 Total: $73,926. 

Korean War Memorial Fund: 
2001 Trust Funds: $33,105; 
2001 Total: $33,105; 
2000 Total: $32,684. 

Vietnam Memorial Plaque: 
2001 Trust Funds: $58,905; 
2001 Total: $58,905; 
2000 Total: $4,115. 

WW II Memorial Fund: 
2001 Trust Funds: $277,700; 
2001 Total: $277,700; 
2000 Total: $4,354,802. 

Currency Fluctuation: 
2001 General Fund: $10,034,950; 
2001 Trust Funds: [Empty]; 
2001 Total: $10,034,950; 
2000 Total: $7,068,010. 

Total: 
2001 General Fund: $17,930,042; 
2001 Trust Funds: $537,645; 
2001 Total: $18,467,687; 
2000 Total: $19,493,664. 

Note 3. Treasury Investments, Net: 

As of September 30, the ABMC's investments in U.S. Treasury Notes, 
which are marketable securities due within one year for 2000 and due 
within two years for 2001 were: 

FY: 01; 
Cost: $94,226,000; 
Amortization Method: Interest; 
Interest Rates: 5.50% to 10.75%; 
Net Premium/(Discount): $1,355,974; 
Net Investment: $95,581,974. 

FY: 00; 
Cost: $71,427,000; 
Amortization Method: Interest; 
Interest Rates: 4.00% to 6.50%; 
Net Premium/(Discount): ($188,672); 
Net Investment: $71,238,328. 

Amortized cost approximated market as of September 30 for these 
investments. 

Note 4. Cash and Foreign Accounts: 

Outside the United States the ABMC makes payments in U.S. and foreign 
currencies through imprest cash funds and Treasury designated 
depository commercial bank accounts which as of September 30 were: 

Imprest Cash Funds: 
2001: $32,260; 
2000: $27,334. 

Foreign Bank Accounts: 
2001: $1,122,979; 
2000: $1,931,579. 

Total: 
2001: $1,155,239; 
2000: $1,958,913. 

Note 5. Contributions Receivable: 

The ABMC has pledges from the private sector to be used for the World 
War II Memorial with substantial pledges by major corporations and 
foundations. These pledges are recorded as contribution receivables 
and revenue in the fiscal year pledged, and $17,972,843 is temporarily 
restricted until collected. Amounts due in future years are as follows: 

Fiscal Year Due: 2002: $14,173,421; 
Fiscal Year Due: 2003: $2,810,033; 
Fiscal Year Due: 2004: $853,950; 
Fiscal Year Due: 2005: $265,000; 
Fiscal Year Due: 2006: $110,000; 
After five years: $352,087; 
Total amount due: $18,564,491; 
Less: Discount at 6%: ($591,648); 
Net Receivable: $17,972,843. 

The ABMC believes that all contributions receivable are fully 
collectible, and therefore, no allowance for uncollectible accounts 
has been established. 

As of September 30, 2001, $700,000 of conditional promises to give to 
the Memorial were outstanding, including a pledge for in-kind services 
with a balance of $200,000 that was not included in contributions 
receivable. 

Note 6. General Property, Plant, and Equipment, and Heritage Assets: 

General property, plant, and equipment with an aggregate cost basis of 
$25,000 or less and all heritage assets were expensed by the ABMC and 
totaled $1,747,700 in FY 2001 and $1,263,474 in FY 2000. WWII Memorial 
costs totaling $74,427 in FY 2001 and $806,334 in FY 2000 were also 
expensed. 

Since the 1960s, the ABMC's European regional office near Paris, 
France has occupied a residential structure owned by the United States 
government. The ABMC is responsible for all utilities, maintenance, 
and repairs. While the structure has the characteristics of a heritage 
asset, it has been used as general property. However, it is now fully 
depreciated and no value is contained in the financial statements. 

General property, plant, and equipment as of September 30 was: 
	
Category: Buildings; 
2001 Cost: $70,513; 
2001 Accumulated Depreciation: $46,940; 
2001 Net: $23,573; 
2000 Cost: $70,513; 
2000 Accumulated Depreciation: $44,592; 
2000 Net: $25,921. 

Category: Accounting System; 
2001 Cost: $1,760,065; 
2001 Accumulated Depreciation: [A]; 
2001 Net: $1,760,065; 	
2000 Cost: [Empty]; 
2000 Accumulated Depreciation: [Empty]; 
2000 Net: [Empty]. 

Category: Equipment; 
2001 Cost: $1,040,730; 
2001 Accumulated Depreciation: $796,438; 
2001 Net: $244,292; 
2000 Cost: $1,069,218; 
2000 Accumulated Depreciation: $702,363; 
2000 Net: $366,855. 

Total: 
2001 Cost: $2,871,308; 
2001 Accumulated Depreciation: $843,378; 
2001 Net: $2,027,930; 
2000 Cost: $1,139,731; 
2000 Accumulated Depreciation: $746,955; 
2000 Net: $392,776. 

[A] Amortization will start on October 1, 2001 when the accounting 
system is placed into service. 

There was no change in the number of physical units or acreage of 
cemeteries or memorial heritage assets in FY 2001 and FY 2000. 

Note 7. Lease Agreements: 

The ABMC has no capital leases. Operating lease costs (rent) for the 
ABMC's Arlington, VA headquarters was $441,365 in FY 2001 and $494,235 
in FY 2000 under a nine year lease. The European Director's living 
quarters are rented under a yearly agreement. The ABMC's Mediterranean 
office occupies commercial office space under a six-year renewable 
operating lease. The Mediterranean Director's living quarters are 
rented under a six year operating lease, with a two year renewal 
option. Future minimum payments due on operating leases as of 
September 30, 2001 were: 

Fiscal Year: 2002: $455,895; 
Fiscal Year: 2003: $442,479; 
Fiscal Year: 2004: $443,396; 
Fiscal Year: 2005: $444,329; 
Fiscal Year: 2006: $445,279; 
After five years: $381,657; 
Total: $2,613,035. 

Note 8. Employee Benefits: 

Under host nation agreements, the ABMC's Mediterranean Regions' 
Italian and Tunisian employees earn separation pay for each year of 
service with the Commission. The ABMC recognized an unfunded liability 
for separation pay for these employees of $773,582 as of September 30, 
2001, and $762,395 as of September 30, 2000. 

A portion of pension and other retirement benefits (ORB) expense is 
funded by an imputed financing source to recognize the amount of 
pension and ORB unfunded liabilities assumed by the OPM. These costs 
are computed in accordance with cost factors provided by OPM. For FY 
2001, the ABMC incurred $705,895 of pension and ORB costs, $217,507 of 
which was imputed. For FY 2000, the ABMC incurred $708,428 of pension 
and ORB costs, $212,486 of which was imputed. 

Note 9. Net Position: 

Net position balances as of September 30, 2001 were: 

Unexpended Appropriations: 

Unobligated: 
General Fund: $10,488,288; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $10,488,288. 

Undelivered Orders: 
General Fund: $6,074,722; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $6,074,722. 

Unexpended Appropriations: Total; 
General Fund: $16,563,010; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $16,563,010. 

Cumulative Results of Operations: 

Unrestricted: 
General Fund: $583,166; 
Trust Fund, WW II: $77,391,051; 
Trust Fund, Other: $252,836; 
Total: $78,227,053. 

Undelivered Orders: 
General Fund: [Empty]; 
Trust Fund, WW II: $19,970,047; 
Trust Fund, Other: $33,741; 
Total: $20,003,788. 

Temporarily Restricted: 
General Fund: [Empty]; 
Trust Fund, WW II: $17,972,843; 
Trust Fund, Other: [Empty]; 
Total: $17,972,843. 

Permanently Restricted: 
General Fund: [Empty]; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: [Empty]. 

Cumulative Results of Operations: Total; 
General Fund: $583,166; 
Trust Fund, WW II: $115,333,941; 
Trust Fund, Other: $286,577; 
Total: $116,203,684. 

Total Net Position: 
General Fund: $17,146,176; 
Trust Fund, WW II: $115,333,941; 
Trust Fund, Other: $286,577; 
Total: $132,766,694. 

Net position balances as of September 30, 2000 were: 

Unexpended Appropriations: 

Unobligated: 
General Fund: $7,356,695; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $7,356,695. 

Undelivered Orders: 
General Fund: $6,513,586; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $6,513,586. 

Unexpended Appropriations: Total; 
General Fund: $13,870,281; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: $13,870,281. 

Cumulative Results of Operations: 

Unrestricted: 
General Fund: ($1,108,422); 
Trust Fund, WW II: $72,451,120; 
Trust Fund, Other: $152,406; 
Total: $71,495,104. 

Undelivered Orders: 
General Fund: [Empty]; 
Trust Fund, WW II: $2,172,281; 
Trust Fund, Other: $51,564; 
Total: $2,223,845. 

Temporarily Restricted: 
General Fund: [Empty]; 
Trust Fund, WW II: $26,833,984; 
Trust Fund, Other: [Empty]; 
Total: $26,833,984 

Permanently Restricted: 
General Fund: [Empty]; 
Trust Fund, WW II: [Empty]; 
Trust Fund, Other: [Empty]; 
Total: [Empty]. 

Cumulative Results of Operations: Total; 
General Fund: ($1,108,422); 
Trust Fund, WW II: $101,457,385; 
Trust Fund, Other: $203,970; 
Total: $100,552,933. 

Total Net Position: 
General Fund: $12,761,859; 
Trust Fund, WW II: $101,457,385; 
Trust Fund, Other: $203,970; 
Total: $114,423,214. 

Note 10. Trust Fund — World War !I Memorial Fund Program: 

Financial progress since the inception of the Fund in FY 1993 through 
FY 2001 is as follows: 
		
Costs: 

Fundraising: 
FY 01: $3,473,850; 
Total FY 93-01[A]: $30,964,162. 

Administration: 
FY 01: $939,890; 
Total FY 93-01[A]: $5,791,982. 

Memorial project costs: 
FY 01: $74,427; 
Total FY 93-01[A]: $1,549,301. 

Property, plant and equipment: 
FY 01: $9,087; 
Total FY 93-01[A]: $248,134. 

Education: 
FY 01: $65,385; 
Total FY 93-01[A]: $426,834. 

Costs, Subtotal: 
FY 01: $4,562,639; 
Total FY 93-01[A]: $38,980,413. 

Design & Construction: 
FY 01: $10,131,861; 
Total FY 93-01[A]: $20,630,468. 

Net Cost of Operations: 
FY 01: $14,694,500; 
Total FY 93-01[A]: $59,610,881. 

Financing Sources: 

Coin surcharge proceeds: 
FY 01: [Empty]; 
Total FY 93-01[A]: $4,797,329. 

Department of Defense: 
FY 01: [Empty]; 
Total FY 93-01[A]: $5,000,000. 

Sale of titanium: 
FY 01: $6,000,000; 
Total FY 93-01[A]: $6,000,000. 

General support: 
FY 01: $18,138,578; 
Total FY 93-01[A]: $150,122,752. 

Contributions: 
FY 01: $24,138,578; 
Total FY 93-01[A]: $165,920,081. 

Investment earnings: 
FY 01: $4,432,478; 
Total FY 93-01[A]: $9,024,741. 

Total Financing Sources: 
FY 01: $28,571,056; 
Total FY 93-01[A]: $174,944,822. 

Net Results of Operations: 
FY 01: $13,876,556; 
Total FY 93-01[A]: $115,333,941. 

[A] The amounts for fiscal years 1993 through 2000 were audited by the 
U.S. General Accounting Office and presented in their reports GAO/AIMD-
95-9 for FY 1993; GAO/AIMD-96-24 for FY 1994; GAO/AIMD-97-68R for FY 
1995 and FY 1996; GAO/AIMD-98-129R for FY 1997; GAO/AIMD-99-74 for FY 
1998; GAO/AIMD-00-85 for FY 1999; and GAO-01-375 for FY 2000. 

Note 11. Subsequent Event: 

On November 26, 2001, Public Law 107-73 provided $5 million for the 
partial construction of a new interpretive and visitors' center at the 
American Cemetery in Normandy, France. Congress directed the 
Commission to work with the National Park Service and the American 
Folklife Center of the Library of Congress during the conceptual study 
and design of the new center. 

[End of Notes to the Consolidating Financial Statements] 

Required Supplementary Stewardship Information: 

Statement of Heritage Assets: 

American Battle Monuments Commission: 
Statement of Heritage Assets: 
(Unaudited): 

24 Cemeteries: 

European Region: 

Name: Aisne Marne American Cemetery; 
Location: Belleau, (Aisne), France; 
Interred: 2,289; 
Memorialized: 1,060; 
Acres: 42.5; 
War: WW I; 
Deferred Maintenance: $25,000. 

Name: Ardennes American Cemetery; 
Location: Neupre, Belgium; 
Interred: 5,328; 
Memorialized: 462; 
Acres: 90.5; 
War: WW II; 
Deferred Maintenance: $0. 

Name: Brittany American Cemetery; 
Location: St James, (Manche), France; 
Interred: 4,410; 
Memorialized: 498; 
Acres: 7.5; 
War: WW II; 
Deferred Maintenance: $52,000. 

Name: Brookwood American Cemetery; 
Location: Brookwood, England; 
Interred: 468; 
Memorialized: 563; 
Acres: 4.5; 
War: WW I; 
Deferred Maintenance: $30,000. 

Name: Cambridge American Cemetery; 
Location: Cambridge, England; 
Interred: 3,812; 
Memorialized: 5,126; 
Acres: 30.5; 
War: WW II; 
Deferred Maintenance: $7,000. 

Name: Epinal American Cemetery; 
Location: Epinal, (Vosges), France; 
Interred: 5,255; 
Memorialized: 424; 
Acres: 48.6; 
War: WW II; 
Deferred Maintenance: $100,000. 

Name: Flanders Field American Cemetery; 
Location: Waregem, Belgium; 
Interred: 368; 
Memorialized: 43; 
Acres: 6.2; 
War: WW I; 
Deferred Maintenance: $24,500. 

Name: Henri-Chapelle American Cemetery; 
Location: Henri-Chapelle, Belgium; 
Interred: 7,989; 
Memorialized: 450; 
Acres: 57.0; 
War: WW II; 
Deferred Maintenance: $13,000. 

Name: Lorraine American Cemetery; 
Location: St. Avoid, (Moselle), France; 
Interred: 10,489; 
Memorialized: 444; 
Acres: 113.5; 
War: WW II; 
Deferred Maintenance: $36,500. 

Name: Luxembourg American Cemetery; 
Location: Luxembourg; 
Interred: 5,076; 
Memorialized: 371; 
Acres: 48.7; 
War: WW II; 
Deferred Maintenance: $33,500. 

Name: Meuse-Argonne American Cemetery; 
Location: Romagne, (Meuse), France; 
Interred: 14,246; 
Memorialized: 954; 
Acres: 130.5; 
War: WW I; 
Deferred Maintenance: $157,000. 

Name: Netherlands American Cemetery; 
Location: Margraten, Holland; 
Interred: 8,302; 
Memorialized: 1,723; 
Acres: 65.5; 
War: WW II; 
Deferred Maintenance: $355,000. 

Name: Normandy American Cemetery; 
Location: Colleville Sur-Mer, France; 
Interred: 9,387; 
Memorialized: 1,557; 
Acres: 172.5; 
War: WW II; 
Deferred Maintenance: $58,000. 

Name: Oisne-Aisne American Cemetery; 
Location: Fere-en-Tardenois, France; 
Interred: 6,012; 
Memorialized: 241; 
Acres: 36.5; 
War: WW I; 
Deferred Maintenance: $52,500. 

Name: Somme American Cemetery; 
Location: Bony, (Aisne), France; 
Interred: 1,844; 
Memorialized: 333; 
Acres: 14.3; 
War: WW I; 
Deferred Maintenance: $60,000. 

Name: St Mihiel American Cemetery; 
Location: Thiacourt, Meurthe, France; 
Interred: 4,153; 
Memorialized: 284; 
Acres: 40.5; 
War: WW I; 
Deferred Maintenance: $160,000. 

Name: Suresnes American Cemetery; 
Location: Seine, France; 
Interred: 1,565; 
Memorialized: 974; 
Acres: 7.5; 
War: WW I/II; 
Deferred Maintenance: $101,100. 

Mediterranean Region: 

Name: Florence American Cemetery; 
Location: Florence, Italy; 
Interred: 4,402; 
Memorialized: 1,409; 
Acres: 70.0; 
War: WW II; 
Deferred Maintenance: $169,200. 

Name: North Africa American Cemetery; 
Location: Carthage, Tunisia; 
Interred: 2,841; 
Memorialized: 3,724; 
Acres: 27.0; 
War: WW II; 
Deferred Maintenance: $35,400. 

Name: Rhone American Cemetery; 
Location: Draguignan, Var, France; 
Interred: 861; 
Memorialized: 294; 
Acres: 12.5; 
War: WW II; 
Deferred Maintenance: $176,418. 

Name: Sicily-Rome American Cemetery; 
Location: Nettuno, Italy; 
Interred: 7,861; 
Memorialized: 3,095; 
Acres: 77.0; 
War: WW II; 
Deferred Maintenance: $25,000. 

Other: 

Name: Corozal American Cemetery; 
Location: Panama City, Panama; 
Interred: 5,044; 
Memorialized: [Empty]; 
Acres: 16.0; 
War: [A]; 
Deferred Maintenance: $26,000. 

Mexico City American Cemetery; 
Location: Mexico City, Mexico; 
Interred: 1,563; 
Memorialized: [Empty]; 
Acres: 1.0; 
War: Mex Am; 
Deferred Maintenance: $26,500. 

Name: Manila American Cemetery; 
Location: Luzon, Phillipines; 
Interred: 17,206; 
Memorialized: 36,282; 
Acres: 152.0; 
War: WW II; 
Deferred Maintenance: $212,000. 

Sub Total: 
Interred: 130,771; 
Memorialized: 60,311; 
Acres: 1,272.3; 
Deferred Maintenance: $1,935,618. 

[A] Acquired by Executive Order from the former Panama Canal Zone. 

American Battle Monuments Commission: 
Statement of Heritage Assets: 
(Unaudited): 

Name: American Expeditionary Forces Monument; 
Location: Washington, DC; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.1; 
War: WWI; 
Deferred Maintenance: [Empty]. 

Name: East Coast Memorial; 
Location: New York City, NY; 
Interred: 0; 
Memorialized: 4,601; 
Acres: 0.8; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Honolulu Memorial; 
Location: Honolulu, HI; 
Interred: 0; 
Memorialized: 28,796; 
Acres: 1.0; 
War: WW II/Korea/Vietnam; 
Deferred Maintenance: $110,000. 

Name: Korean War Veterans Memorial; 
Location: Washington, DC; 
Interred: 0; 
Memorialized: 37,278; 
Acres: 7.5; 
War: Korea; 
Deferred Maintenance: [Empty]. 

Name: West Coast Memorial; 
Location: San Francisco, CA; 
Interred: 0; 
Memorialized: 412; 
Acres: 1.3; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Audenarde Monument; 
Location: Audenarde, Belgium; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.4; 
War: WW I; 
Deferred Maintenance: $15,000. 

Name: Bellicourt Monument; 
Location: St. Quentin, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 1.8; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Brest Naval Monument; 
Location: Brest, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 1.0; 
War: WWI; 
Deferred Maintenance: $10,000. 

Name: Cabanatuan Memorial; 
Location: Luzon, Phillipines; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WW II; 
Deferred Maintenance: $104,000. 

Name: Cantigny Monument; 
Location: Cantigny, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.4; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Chateau-Thierry Monument; 
Location: Chateau-Thierry, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
Acres: 58.9; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Chaumont Marker; 
Location: Chaumont, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Gibraltor Naval Monument; 
Location: Gibraltor; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.1; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Guadalcanal Memorial; 
Location: Guadalcanal; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.5; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Kemmel Monument; 
Location: Ypres, Belgium; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.2; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Marine Monument Belleau Wood; 
Location: Aisne, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 199.6; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Montfaucon Monument; 
Location: Montfaucon, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 9.6; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Montsec Monument; 
Location: Thiacourt, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 47.5; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Papua Marker; 
Location: Port Moresby, New Guinea; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Point du Hoc Ranger Monument; 
Location: St. Laurent-sur-Mer, France; 
Interred: 0; 
Acres: 29.8; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Saipan Monument; 
Location: Saipan, Northern Mariana Islands; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WW II; 
Deferred Maintenance: $70,000. 

Name: Santiago Surrender Tree; 
Location: Santiago, Cuba; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: Sp American War; 
Deferred Maintenance: [Empty]. 

Name: Sommepy Monument; 
Location: Sommepy, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 15.0; 
War: WW I; 
Deferred Maintenance: $25,000. 

Name: Souilly Marker; 
Location: Souilly, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WWI; 
Deferred Maintenance: [Empty]. 

Name: Tours Monument; 
Location: Tours, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.5; 
War: WW I; 
Deferred Maintenance: [Empty]. 

Name: Utah Beach Monument; 
Location: Sainte Marie-du-Mont, France; 
Interred: 0; 
Memorialized: 0; 
Acres: 0.5; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Name: Western Naval Task Force Memorial; 
Location: Casablanca, Morocco; 
Interred: 0; 
Memorialized: 0; 
Acres: 0; 
War: WW II; 
Deferred Maintenance: [Empty]. 

Other: 

Name: European Region Garches Office: 
Interred: 0; 
Memorialized: 0; 
Deferred Maintenance: $9,400. 

Sub Total: 
Interred: 0; 	
Memorialized: 71,087; 
Acres: 376.5; 
Deferred Maintenance: $343,400. 

Grand Total: 
Interred: 130,771; 
Memorialized: 131,398; 
Acres: 1,648.8; 
Deferred Maintenance: $2,279,018. 

[End of Statement of Heritage Assets] 

Note to Statement of Heritage Assets: 

American Battle Monuments Commission: 
Note to Statement of Heritage Assets (Unaudited): 

Deferred Maintenance: 

Deferred maintenance is maintenance not performed when it should have 
been. The ABMC has deferred maintenance at many of its properties. 
Condition inspections of real property utilizing the condition 
assessment survey methodology are conducted at least biennially. As a 
result of these inspections, the ABMC estimates the cost to perform 
maintenance identified as necessary, but unperformed, during the 
current accounting period. 

Maintenance and repairs performed on real property consisting of land 
improvements, buildings, and memorials totaled $3.5 million in FY 
2001, $5.6 million in FY 2000, $6.1 million in FY 1999, and $5.9 
million in FY 1998, most of which was applied to deferred maintenance 
projects. Condition assessment surveys, using a five point scale of 
one (excellent) to five (very poor), identify needed maintenance and 
repair projects at cemeteries and memorials in order to maintain real 
property in an acceptable condition of three (fair) or better. Using 
these condition assessment surveys, 282 engineering maintenance 
projects with an estimated cost of $3.9 million were identified as of 
September 30, 2001 to be performed in future years as necessary to 
maintain real property in an acceptable condition. The estimated cost 
of 97 deferred engineering projects as of September 30, 2001 was $2.3 
million. The actual cost of deferred maintenance projects is dependent 
upon future events, but is not expected to exceed $5 million. 

[End of Note to Statement of Heritage Assets] 

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