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United States Government Accountability Office: 
GAO: 

Report to Congressional Committees: 

March 2011: 

Financial Audit: 

American Battle Monuments Commission's Financial Statements for Fiscal 
Years 2010 and 2009: 

GAO-11-320: 

GAO Highlights: 

Highlights of GAO-11-320, a report to congressional committees. 

Why GAO Did This Study: 

Created in 1923, the American Battle Monuments Commission (the 
Commission) operates and maintains 24 American military cemeteries on 
foreign soil; 25 federal memorials, monuments, and markers; and 7 
nonfederal memorials. For fiscal year 2010, the Commission incurred 
program costs of $69.6 million to maintain its cemeteries and federal 
memorials. 

In accordance with 36 U.S.C. § 2103, GAO is responsible for conducting 
audits of the agencywide financial statements of the Commission. GAO 
audited the financial statements of the Commission for the fiscal 
years ended September 30, 2010, and 2009. 

The audits were done to determine whether, in all material respects, 
(1) the Commission’s financial statements were presented fairly and 
(2) Commission management maintained effective internal control over 
financial reporting. GAO also tested Commission management’s 
compliance with selected laws and regulations. 

What GAO Found: 

In GAO’s opinion, the financial statements of the Commission as of 
September 30, 2010, and 2009, and for the fiscal years then ended, are 
presented fairly, in all material respects, in conformity with U.S. 
generally accepted accounting principles (GAAP). Also, in GAO’s 
opinion, the Commission maintained effective internal control over 
financial reporting as of September 30, 2010. In addition, GAO found 
no reportable instance of Commission noncompliance in fiscal year 2010 
with selected provisions of laws and regulations tested. However, the 
Commission did not provide an analysis of the agency’s overall 
financial position and results of operations in Management’s 
Discussion and Analysis as required by U.S. GAAP and OMB Circular No. 
A-136, Financial Reporting Requirements. 

In a prior report (GAO-10-399), GAO identified a significant 
deficiency in the Commission’s internal control over financial 
reporting as of September 30, 2009, and a violation of the 
Antideficiency Act. In July 2010, the significant deficiency was 
resolved by the President’s appointment of eight Commissioners, a 
significant component of the Commission’s governance structure. The 
Commissioners provide high-level strategic oversight of Commission 
operations, including its internal control over financial reporting. 
The new Commissioners also approved a delegation of authority to the 
Secretary in the event all Commissioner positions become vacant. The 
Antideficiency Act violation was caused by a contract containing a 
hold-harmless clause which subjected the Commission to potentially 
unlimited liability. The violation was resolved by termination of the 
contract in fiscal year 2009 and the Commission’s reporting of the 
violation in fiscal year 2010. 

GAO noted other less significant matters involving the Commission’s 
internal control and will be reporting separately to Commission 
management. 

Figure: The Commission’s Suresnes American Cemetery in Suresnes, 
France: 

[Refer to PDF for image: photograph] 

Source: American Battle Monuments Commission. 

[End of figure] 

What GAO Recommends: 

GAO is not making any recommendations in this report, but will be 
reporting separately on matters identified during its audit, along 
with recommendations for strengthening the Commission’s internal 
controls. 

In commenting on a draft of this report, the Commission concurred with 
its facts and conclusions. 

View GAO-11-320 or key components. For more information, contact 
Steven J. Sebastian at (202) 512-3406 or sebastians@gao.gov. 

[End of section] 

Contents: 

Letter: 

Auditor's Report: 

Opinion on Financial Statements: 

Opinion on Internal Control: 

Compliance With Laws and Regulations: 

Consistency of Other Information: 

Objectives, Scope, and Methodology: 

Commission Comments: 

Management's Discussion and Analysis: 

Financial Statements: 

Consolidating Balance Sheet: 

Consolidating Statement of Net Cost and Changes in Net Position: 

Consolidating Statement of Budgetary Resources: 

Notes to Consolidating and Consolidated Financial Statements: 

Other Information: 

Required Supplementary Information: 

Schedules of Heritage Assets: 

Appendix: 

Appendix I: Management's Report on Internal Control Over Financial 
Reporting: 

Abbreviations: 

FMFIA: Federal Managers' Financial Integrity Act of 1982: 

OMB: Office of Management and Budget: 

[End of section] 

United States Government Accountability Office: 
Washington, D.C. 20548: 

March 1, 2011: 

The Honorable Patty Murray: 
Chairman: 
The Honorable Richard Burr: 
Ranking Member: 
Committee on Veterans' Affairs: 
United States Senate: 

The Honorable Jeff Miller: 
Chairman: 
The Honorable Bob Filner: 
Ranking Member: 
Committee on Veterans' Affairs: 
House of Representatives: 

In accordance with 36 U.S.C. § 2103, this report presents the results 
of our audits of the financial statements of the American Battle 
Monuments Commission (the Commission) for the fiscal years ended 
September 30, 2010, and 2009. This report contains our (1) unqualified 
opinion on the Commission's fiscal years 2010 and 2009 financial 
statements; (2) opinion that the Commission maintained, in all 
material respects, effective internal control over financial reporting 
as of September 30, 2010; and (3) conclusion that our tests of the 
Commission's compliance with selected provisions of laws and 
regulations for fiscal year 2010 disclosed no instances of 
noncompliance. The accompanying report also provides information 
regarding a significant deficiency in the Commission's internal 
control over financial reporting and a violation of the Antideficiency 
Act identified during last year's audit that were resolved in fiscal 
year 2010. 

We are sending copies of this report to the Chairmen and Ranking 
Members of the Senate Committee on Appropriations and the House 
Committee on Appropriations. We are also sending copies to the 
Director of the Office of Management and Budget, the Commissioners and 
Secretary of the Commission, and other interested parties. This report 
also will be available at no charge on the GAO Web site at [hyperlink, 
http://www.gao.gov]. 

Should you or your staffs have any questions concerning this report, 
please contact me at (202) 512-3406 or at sebastians@gao.gov. Contact 
points for our Offices of Congressional Relations and Public Affairs 
may be found on the last page of this report. Key contributors to this 
engagement were Roger R. Stoltz, Taya R. Tasse, Tory E. Wudtke, Eugene 
E. Stevens IV, Melanie B. Swift, Brian S. Harechmak, Casey L. Kopcho, 
and Cynthia Rios. 

Signed by: 

Steven J. Sebastian: 
Director: 
Financial Management and Assurance: 

[End of section] 

United States Government Accountability Office: 
Washington, D.C. 20548: 

To the Commissioners and Secretary of the American Battle Monuments 
Commission: 

Auditor's Report To the Commissioners and Secretary of the American 
Battle Monuments Commission: 

In accordance with 36 U.S.C. § 2103, we are responsible for conducting 
audits of the agencywide financial statements of the American Battle 
Monuments Commission (the Commission). In our audits of the 
Commission's financial statements for fiscal years 2010 and 2009, we 
found: 

* the consolidating financial statements as of and for the fiscal year 
ended September 30, 2010, and comparative consolidated totals as of 
and for the fiscal year ended September 30, 2009, are presented 
fairly, in all material respects, in conformity with U.S. generally 
accepted accounting principles; 

* the Commission had effective internal control over financial 
reporting as of September 30, 2010; and: 

* no reportable noncompliance with provisions of laws and regulations 
we tested. 

The following sections discuss in more detail (1) our basis for these 
conclusions; (2) our conclusions on Management's Discussion and 
Analysis and other supplementary information; (3) our audit 
objectives, scope, and methodology; and (4) Commission comments. 

Opinion on Financial Statements: 

The Commission's consolidating balance sheet as of September 30, 2010, 
consolidating statement of net cost and changes in net position, and 
consolidating statement of budgetary resources, with accompanying 
notes for the fiscal year then ended, and comparative consolidated 
totals as of and for the fiscal year ended September 30, 2009, are 
presented fairly, in all material respects, in conformity with U.S. 
generally accepted accounting principles. 

Opinion on Internal Control: 

The Commission maintained, in all material respects, effective 
internal control over financial reporting as of September 30, 2010. 
Commission internal control provided reasonable assurance that 
misstatements, losses, or noncompliance material in relation to the 
consolidating financial statements would be prevented or detected and 
corrected on a timely basis. Our opinion is based upon criteria 
established under 31 U.S.C. § 3512 (c), (d), commonly known as the 
Federal Managers' Financial Integrity Act of 1982 (FMFIA). 

In our audit of the Commission's fiscal year 2009 financial 
statements, [Footnote 1] we identified a significant deficiency 
[Footnote 2] in the Commission's governance structure because all 
Commissioner positions were vacant.[Footnote 3] Consistent with U.S. 
generally accepted government auditing standards, the Commissioners, 
the Secretary, and other designated officials collectively function as 
the Commission's governance structure. However, while the President 
appointed a new Commission Secretary on June 3, 2009, Commissioner 
appointments had not been made as of September 30, 2009. Further, we 
reported that we did not find any evidence of the Commission's express 
delegation of authority and assignment of responsibilities to the 
Secretary. In July 2010, eight[Footnote 4] Commissioners were 
appointed who now provide high-level strategic oversight of Commission 
operations, including its internal control over financial reporting. 
Additionally, the new Commissioners approved and implemented a 
Commission policy to delegate the Commissioners' governance authority 
to the Commission Secretary in the event all Commissioner positions 
become vacant. Consequently, this prior year significant deficiency 
was resolved as of September 30, 2010. 

We identified other less significant matters concerning the 
Commission's internal control that we will report separately along 
with recommended corrective actions. 

Compliance With Laws and Regulations: 

Our tests of the Commission's compliance with selected provisions of 
laws and regulations for fiscal year 2010 disclosed no instance of 
noncompliance that is reportable under U.S. generally accepted 
government auditing standards. 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. 

During our audit of the Commission's fiscal year 2009 financial 
statements, we determined that a Commission contract with a commercial 
employment services firm to provide temporary employees to the 
Commission violated the Antideficiency Act because it contained an 
open-ended hold-harmless clause which subjected the Commission to 
potentially unlimited liability.[Footnote 5] Commission officials 
agreed with our conclusion that the hold-harmless clause was an 
Antideficiency Act violation. In accordance with the act, the 
violation and relevant facts, circumstances, and actions taken by the 
Commission were subsequently reported to the Congress and the 
President of the United States, with a copy to the Comptroller 
General, following the guidance issued by the Office of Management and 
Budget (OMB). Since the contract was terminated in fiscal year 2009 
and the violation reported, this matter has been resolved. 

Consistency of Other Information: 

The Commission's Management Discussion and Analysis and other 
information related to heritage assets presented in the Commission's 
financial report contain a wide range of data, some of which are not 
directly related to the financial statements. We do not express an 
opinion on this information. However, we compared this information for 
consistency with the financial statements and discussed the methods of 
measurement and presentation with officials of the Commission. On the 
basis of this limited work, we found no material inconsistencies with 
the financial statements. However, the Commission did not provide an 
analysis of the agency's overall financial position and results of 
operations in Management's Discussion and Analysis as required by U.S. 
generally accepted accounting principles and OMB Circular No. A-136, 
Financial Reporting Requirements. 

Objectives, Scope, and Methodology: 

Commission management is responsible for (1) preparing the financial 
statements in conformity with U.S. generally accepted accounting 
principles, (2) establishing and maintaining effective internal 
control over financial reporting and evaluating its effectiveness, and 
(3) complying with applicable laws and regulations. Commission 
management evaluated the effectiveness of its internal control over 
financial reporting as of September 30, 2010, based upon the criteria 
established under FMFIA. Commission management's assertion based on 
its evaluation is included in appendix I. 

We are responsible for planning and performing the audit to obtain 
reasonable assurance and provide our opinion on whether (1) the 
Commission's financial statements are presented fairly, in all 
material respects, in conformity with U.S. generally accepted 
accounting principles, and (2) Commission management maintained, in 
all material respects, effective internal control over financial 
reporting as of September 30, 2010. We are also responsible for (1) 
testing compliance with selected provisions of laws and regulations 
that have a direct and material effect on the financial statements, 
and (2) performing limited procedures with respect to certain other 
information accompanying the financial statements. In order to fulfill 
these responsibilities, we: 

* examined, on a test basis, evidence supporting the amounts and 
disclosures in the financial statements, including evidence supporting 
statistical samples of Commission payroll and nonpayroll expenditures; 
[Footnote 6] 

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

* evaluated the overall presentation of the Commission's financial 
statements; 

* obtained an understanding of the Commission and its operations, 
including its internal control over financial reporting; 

* considered the Commission's process for evaluating and reporting on 
internal control over financial reporting based on criteria 
established under FMFIA; 

* assessed the risk of (1) material misstatement in the Commission's 
financial statements, and (2) material weakness in its internal 
control over financial reporting; 

* tested relevant internal control over the Commission's financial 
reporting; 

* evaluated the design and operating effectiveness of the Commission's 
internal control over financial reporting based on the assessed risk; 
and: 

* tested compliance with selected provisions of the following laws and 
regulations: 

- the Commission's enabling legislation codified in 36 U.S.C. Chapter 
21, 

- public laws applicable to the World War II Memorial Fund, 

- Buffalo Soldiers Commemoration Act of 2005, 

- Continuing Appropriations Resolution, 2010, 

- Consolidated Appropriations Act, 2010, 

- Antideficiency Act, 

- Pay and Allowance System for Civilian Employees, and: 

- Prompt Payment Act. 

An entity's internal control over financial reporting is a process 
affected by those charged with governance, management, and other 
personnel, the objectives of which are to provide reasonable assurance 
that (1) transactions are properly recorded, processed, and summarized 
to permit the preparation of financial statements in conformity with 
U.S. generally accepted accounting principles, and assets are 
safeguarded against loss from unauthorized acquisition, use, or 
disposition; and (2) transactions are executed in accordance with the 
laws governing the use of budget authority and other laws and 
regulations that could have a direct and material effect on the 
financial statements. 

We did not evaluate all internal control relevant to operating 
objectives as broadly established under FMFIA, such as controls 
relevant to preparing statistical reports and ensuring efficient 
operations. We limited our internal control testing to testing 
controls over financial reporting. Our internal control testing was 
for the purpose of expressing an opinion on the effectiveness of 
internal control over financial reporting and may not be sufficient 
for other purposes. Consequently, our audit may not identify all 
deficiencies in internal control over financial reporting that are 
less severe than a material weakness. Because of inherent limitations 
in internal control, internal control may not prevent or detect and 
correct misstatements due to error or fraud, losses, or noncompliance. 
We also caution that projecting any evaluation of effectiveness 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 policies or procedures may deteriorate. 

We did not test compliance with all laws and regulations applicable to 
the Commission. We limited our tests of compliance to those laws and 
regulations that have a direct and material effect on the financial 
statements for the fiscal year ended September 30, 2010. 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 audit in accordance with U.S. generally accepted 
government auditing standards. We believe our audit provides a 
reasonable basis for our opinions and other conclusions. 

Commission Comments: 

In commenting on a draft of this report, the Commission concurred with 
its facts and conclusions. 

Sincerely yours, 

Signed by: 

Steven J. Sebastian: 
Director: 
Financial Management and Assurance: 

February 11, 2011: 

[End of section] 

Management's Discussion and Analysis: 

American Battle Monuments Commission: 
Annual Financial Report: 
Management's Discussion And Analysis (MDA): 
For The Fiscal Year Ended September 30, 2010: 

Mission: 

The American Battle Monuments Commission (the Commission) — guardian 
of America's overseas commemorative cemeteries and memorials — honors 
the service, achievements and sacrifice of the United States armed 
forces. Since 1923, the Commission has executed this mission by (1) 
commemorating the achievements and sacrifices of America's armed 
forces through the erection and maintenance of suitable memorial 
shrines in the U.S. when authorized by Congress and where they have 
served overseas since April 6, 1917; (2) designing, constructing, 
operating, and maintaining permanent American military burial grounds 
in foreign countries; and (3) controlling the design and construction 
on foreign soil of U.S. military memorials, monuments, and markers by 
other U.S. citizens and organizations, both public and private, and 
encouraging their maintenance. The Commission's fiscal year 2010 
appropriation supported its continued commitment to the worldwide 
responsibilities that flow from this mission. 

In performance of its mission, the Commission administers, operates, 
and maintains 24 permanent American military cemeteries; 25 federal 
memorials, monuments, and markers; and seven nonfederal memorials. 
Three memorials are located in the United States; the remaining 
memorials and all of the Commission's cemeteries are located in 14 
foreign countries, the U.S. Commonwealth of the Northern Mariana 
Islands, and the British dependency of Gibraltar. These cemeteries and 
memorials are among the most beautiful and meticulously maintained 
shrines in the world. The Commission's World War I, World War II, and 
Mexico City cemeteries are closed to future burials except for the 
remains of U.S. war dead discovered in World War I and II battle areas. 

In addition to grave sites, the World War I and II cemeteries, 
together with three memorials on U.S. soil, commemorate by name on 
Tablets of the Missing those U.S. service members who were missing in 
action or lost or buried at sea during the First and Second World Wars 
and the Korean and Vietnam Wars. 

The Commission 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. 

During fiscal year 2010, the Commission continued to ensure that its 
commemorative cemeteries and memorials remain fitting shrines to those 
who have served our nation in uniform since America's entry into World 
War I. 

The Commission's mission statement: 

The American Battle Monuments Commission-—guardian of America's
overseas commemorative cemeteries and memorials-—honors the competence,
courage, and sacrifice of United States armed forces. 

Organizational Structure: 

The Commission's organizational structure for fiscal year 2010 is 
shown in figure 1. 

Figure 1: The Commission's Organizational Structure: 

[Refer to PDF for image: organizational structure] 

Tope level: 
Commissioners[A]. 

Second level, reporting to Commissioners: 
* Secretary[B]; 
* Chief of Staff: 
- Director, HR & Administration; 
- Director, Finance; 
- Director, Public Affairs; 
- Director, U.S. Memorials; 
- Director, Information Technology; 
* Director Overseas Operations: 
* Deputy Director: 
- Director, Human Resources; 
- Director, Engineering & Maintenance; 
- Director, Logistics; 
- Director, Information Technology; 
- Director, Finance; 
- Director, Horticulture; 
* Regional Director, WWII N. Cemeteries: 7 Cemeteries; 
- Regional Director, WWII S. Cemeteries: 6 Cemeteries; 
- Regional Director, WWI Cemeteries: 8 Cemeteries; 
- Regional Director, C.A. Cemeteries: 2 Cemeteries; 
- Regional Director, Pacific Cemeteries: 1 Cemetery; 
- Director, Interpretation & Visitor Services. 

Authorized Strength (FTE): 
US — General Service: 72; 
Locally Engaged Staff: 337. 
Total: 409. 

[A] Chairman and up to 10 Commissioners appointed by the President. 

[B] Appointed by the President. 

[End of figure] 

The Commission's policy-making body consists of up to an 11-member 
Board of Commissioners appointed by the President of the United States 
for an indefinite term and whose members serve without pay. The 
commissioners establish policy and ensure proper staff functioning in 
carrying out the mission of the Commission. During inspection visits 
to Commission cemeteries, they observe, inquire about, comment upon, 
and make recommendations on any and all aspects of Commission 
operations. The Administration had appointed 8 members to the Board of 
Commissioners by the close of the fiscal year. The Commission's daily 
operations are directed by an Executive Level Secretary, who is 
appointed by the President and assisted by a Chief of Staff. 

The Commission's headquarters office is in Arlington, Virginia and an 
Office of Overseas Operations located in Garches, France, just outside 
Paris. For fiscal year 2010, the Commission had a total of 409 full-
time equivalent (FTE) positions. U.S. citizens constituted 72 members 
of the staff, while the remaining 337 were locally engaged staff 
employed at the Commission's regional offices and at the cemeteries in 
the countries where the Commission operates. 

Operations Management: 

Operations management activities in fiscal year 2010 focused on 
funding salaries and benefits, service fees, scheduled maintenance and 
repairs, supplies, materials, spare parts, replacement of 
uneconomically repairable equipment, and capital improvements. 

For fiscal year 2010, the Commission received $62,675,000 from 
appropriations in its Salaries and Expenses account. The Commission's 
Foreign Currency Fluctuation Account appropriation for fiscal year 
2010 contained "such sums as may be necessary" language. For fiscal 
year 2010, the Commission estimated $20,200,000 be used to offset 
currency exchange losses. Figure 2 shows how the Commission obligated 
funding from its Salaries and Expenses account, by object class. 

Figure 2: Fiscal Year 2010 Obligations by Object Class: 

[Refer to PDF for image: pie-chart] 

Compensation & Benefits: 47%; 
Contracts, Services & Capital Improvements: 34%; 
Rent & Utilities: 7%; 
Printing & Supplies: 5%; 
Equipment: 4%; 
Travel & Transportation: 3%. 

[End of figure] 

The Commission has received funding for engineering, maintenance and 
horticulture programs that make the Commission's facilities among the 
most beautiful memorials in the world. These shrines to America's war 
dead require a formidable annual program of maintenance and repair of 
facilities, equipment, and grounds. 

The Commission prioritizes the use of its engineering, maintenance and 
horticulture funds carefully to ensure the most effective and 
efficient utilization of its available resources. This care includes 
upkeep of more than 131,000 graves and headstones and 73 memorial 
structures (within and external to the cemeteries) on approximately 
1,650 acres of land. Additionally, the Commission maintains 65 visitor 
facilities and quarters for assigned personnel; 67 miles of roads and 
paths; 911 acres of flowering plants, fine lawns, and meadows; 3 
million square feet of shrubs and hedges; and 11,000 ornamental trees. 

Care and maintenance of these resources requires exceptionally 
intensive labor at the Commission's cemeteries and memorials. 
Compensation and benefits consumed approximately 47 percent of the 
Commission's fiscal year 2010 spending while the remaining 53 percent 
supported engineering, maintenance, horticulture, logistics, services, 
supplies and other administrative costs critical to its operations. 

High Priority Performance Goals and Results: 

Summarized below are the Commission's performance goals and results. 

Goal 1: Provide an inspirational and educational visitor experience 
through effective outreach and interpretive programs: 

Objectives for Goal 1: 

* Develop, educate the public about the Commission mission, and the 
competence, courage, and sacrifice of those honored at its 
commemorative sites. 

* Increase visitation to Commission cemeteries, memorials, and website. 

* Educate and train all employees who provide visitor services in 
interpretive skills. 

* Leverage international events and relevant anniversary dates to 
interpret Commission cemeteries. 

* Satisfy constituents' needs through timely distribution of 
information and products. 

Strategy for Achieving Goal 1: 

We will develop educational materials and new technology capabilities 
to improve visitor education programs, both on-site and on our Web 
site. We will expand Web marketing and public/media outreach to 
increase visitation to our Web site and memorial sites. We will also 
develop a methodology to count visitors so that we can document both 
on-site and Web site visitation. We will expand training and mentoring 
opportunities to enhance professional and personal development of our 
employees. We will also create historical reference libraries to 
assist in the interpretive mission. We will leverage upcoming 
milestones to increase the public reach of the interpretive 
initiative, including D-Day, Memorial Day, Veterans Day, 100th 
anniversary of WWI, 70th anniversary of WWII, and the 2012 London 
Olympics. We will automate frequently requested services for our 
constituents in order to improve on-site and Web site customer service. 

Selected Performance Results toward Achieving Goal 1: 

* The PBS documentary "Hallowed Grounds" continued to air on stations 
nationwide over the Memorial Day and Veterans Day weekends, achieving 
a total viewership of five million since its launch in FY 2009 and 
becoming the best selling PBS video in its category—a significant 
boost for the Commission's outreach efforts. Likewise, a cover story 
authored by the Secretary appeared in the May issue of the American 
Legion magazine, which reaches into millions of homes, and numerous 
other travel-related articles ran in major metropolitan newspapers. 

* Military units, veterans groups, and local citizens and 
organizations continued to pay tribute to those honored at Commission 
cemeteries by visiting individually or participating in ceremonies and 
popular "adopt a grave" programs in several host European nations. 
Significantly, those who lived through the world wars have passed this 
tradition on to younger generations in an effort to ensure the 
American sacrifice is never forgotten in those liberated lands. 

* Interpretive specialists in the Commission's Overseas Operations 
Office in France executed an ambitious program to train our cemetery-
based staffs on effective interpretive techniques and effective 
visitor services programs. Professional reference libraries, comprised 
of general military history as well as books relevant to the wars and 
campaigns associated with individual cemeteries, were provided to each 
cemetery, another enhancement to our staffs' ability to interpretive 
historical events for their visitors. 

* New visitor brochures were designed and printed for another 10 
cemeteries in fiscal year 2010, bringing the total completed to 15. 
The final 11 brochures will be designed in fiscal year 2011. When this 
initiative is completed, newly designed multi-language brochures will 
be available in all 24 cemeteries as well as the Pointe du Hoc and 
Honolulu Memorials. The Commission continued to provide prompt 
responses to customer requests for lithographs, no fee passport 
authorizations, flower placements, and general information about how 
to visit the overseas cemeteries and memorials we administer. 

* Execution was administratively delayed on several Web-related 
initiatives: a site redesign; a war dead database redesign; and 
awarding of a contract for 18 campaign interactive programs. All three 
projects are expected to be completed or awarded in fiscal year 2011. 

Goal 2: Develop, operate, maintain, and improve Commission facilities 
as the world's best commemorative sites: 

Objective for Goal 2: 

* Review and evaluate facilities and execute approved maintenance, 
repair, and improvements. 

Strategy for Achieving Goal 2: 

We will continue to operate, maintain, and improve Commission 
facilities and infrastructure in like-new condition, and implement our 
evaluation processes to ensure compliance with our high standards. We 
will work to reduce the growth of operational and routine maintenance 
costs and promote more effective long-term planning, operations, and 
resource management. 

Selected Performance Results toward Achieving Goal 2: 

* The following are examples of the engineering, maintenance and 
horticulture projects executed in fiscal year 2010: 

- Rehabilitation of the Service Area at Oise Aisne American Cemetery; 

- Renovated storm drainage and sewage systems at Epinal American 
Cemetery; 

- Cliff stabilization for the Point du Hoc Federal Monument; 

- Replacement of irrigation systems at Florence and Sicily-Rome 
American Cemeteries; 

Renovation of former Visitor Center at Normandy American Cemetery. 

* The Commission recently awarded a study to assess all program needs 
and requirements at all European and Mediterranean sites and is in the 
process of developing a Master Plan for its American Cemetery in 
Manila. 

Goal 3: Attract and retain quality employees through personal and 
professional investment and development: 

Objectives for Goal 3: 

* Establish baseline employee satisfaction through employee survey. 

* Ensure timely and effective employee recognition. 

* Implement an enhanced performance management program with annual 
performance work plans tied to the strategic plan. 

* Balance employee personal and professional responsibilities through 
work/life initiatives. 

* Implement a professional development program responsive to agency 
and employee needs. 

Strategy for Achieving Goal 3: 

We will implement a professional training and development program, 
clearly map employee roles and responsibilities to the components of 
our strategic plan, develop a better understanding of employee needs 
and satisfaction, and make sure that truly outstanding performance is 
appropriately recognized. 

Selected Performance Results toward Achieving Goal 3: 

* Two new employees with extensive Human Resources experience were 
hired during 2010. They are tasked with developing needed HR policies 
and streamlining/establishing procedures required for the proper 
functioning of a good HR program. 

* In coordination with Federal Occupational Health under the 
Department of Health and Human Services, the Commission has continued 
its formal Employee Assistance Program. 

* A telework policy is being reviewed, and a policy letter will be 
issued in 2011. It will supplement the Commission's Alternative Work 
Schedule Pilot Program. 

* The Commission has made considerable progress in providing 
management and supervisory training to cemetery superintendents. 

Goal 4: Continually improve business and resource management practices: 

Objectives for Goal 4: 

* Effectively manage resources. 

* Modernize business processes to utilize new technologies and IT 
practices. 

* Formalize processes for development and promulgation of policies and 
procedures. 

* Modernize the Financial Management System and fully utilize the 
capabilities of the new system. 

Strategy for Achieving Goal 4: 

We will focus our efforts on standardizing core processes, identifying 
opportunities to use technology to streamline their execution, 
improving our organizational standards for site evaluation, and 
regularly reviewing each site for compliance with standards. 

Selected Performance Results toward Achieving Goal 4: 

* The Commission's allocation processes and procedures annually fully 
fund its mandatory and operational requirements in order to achieve 
its mission requirements. 

* During fiscal year 2010, the Commission initiated an effort to 
implement a new financial management system. 

* An internal control review and risk assessment was conducted in 
fiscal year 2010 to examine the Commission's internal control 
mechanisms and business processes. 

The Commission continues to receive "clean opinions" from its annual 
audit by the Government Accountability Office, with no material 
weaknesses noted. 

* The Commission continues to report that its internal control 
policies and procedures provide reasonable assurance that it complies 
with the provisions of 31 U.S.C. 3512 (c), (d) — Federal Managers' 
Financial Integrity Act (FMFIA). 

Financial Statements and Limitations: 

Since fiscal year 1997, the Commission has been required to produce 
financial statements and the Comptroller General of the United States 
has been required to independently audit these statements. The 
Commission earned unqualified opinions, each year, on its financial 
statements from the Government Accountability Office. 

The financial statements have been prepared to report the financial 
position and results of operations of the Commission, pursuant to the 
requirements of 31 U.S.C. 3515 (b). While the statements have been 
prepared from the books and records of the Commission in accordance 
with generally accepted accounting principles for federal entities and 
the formats prescribed by the Office of Management and Budget 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. The statements are for a component of the U.S. 
Government, a sovereign entity. 

Management Integrity: Systems, Controls, Legal Compliance: 

The Commission is cognizant of the importance of, and need for, 
management accountability and responsibility as the basis for quality 
and timeliness of program performance, mission accomplishment, 
productivity, cost-effectiveness, and compliance with applicable laws. 
It has taken management actions to ensure that the annual evaluation 
of these controls is performed in a conscientious and thorough manner 
according to Office of Management and Budget regulations and 
guidelines and in compliance with 31 U.S.C. 3512 (c), (d), commonly 
known as FMFIA. The Commission's evaluation of its system of internal 
management practices and controls during fiscal year 2010 revealed no 
material weaknesses. The objectives of the Commission's internal 
management control policies and procedures are to provide reasonable 
assurance that: 

* obligations and costs are in compliance with applicable law; 

* funds, property, and other assets are safeguarded against waste, 
loss, unauthorized use, and misappropriation; 

* revenue and expenditures applicable to agency operations are 
promptly recorded and accounted for; and; 

* revenue and expenditures applicable to agency operations are 
promptly recorded and accounted for; and programs are efficiently and 
effectively carried out in accordance with applicable laws and 
management policy. 

Based on its evaluation, the Commission concluded that there is 
reasonable assurance that it complies with the provisions of FMFIA. 
The reasonable assurance concept recognizes that the cost of internal 
controls should not exceed the benefits expected to be derived and 
that the benefits reduce the risk of failing to achieve stated 
objectives. 

Future Effects, Risks, and Uncertainties: 

Changes in the rate of exchange for foreign currencies have a 
significant impact on the Commission's day-to-day operations. In order 
to insulate the Commission's annual appropriation against major 
changes in its purchasing power, legislation was enacted in 1988 
(codified in 36 U.S.C. 2109) to establish a foreign currency 
fluctuation account in the U.S. Treasury. However, since the summer of 
2006, the U.S. dollar has fallen precipitously against the euro. The 
Commission has been closely monitoring this because its budget is 
disproportionately affected by foreign currency fluctuation. 
Legislation was enacted which included "such sums as may be necessary" 
language for the Commission's fiscal year 2010 Foreign Currency 
Fluctuation Account appropriation. This allows the Commission to 
preserve its purchasing power against a suddenly falling U.S. dollar 
against the euro. With this language the Commission will continue to 
estimate and report its Foreign Currency Fluctuation Account 
requirements as it has in the past. However, when a need arises where 
the amount forecast by the Commission for this account is 
insufficient, the Commission will submit an adjusted estimate to the 
Office of Management and Budget and to the Congress. 

Overall, by maintaining close scrutiny of the Commission's obligation 
status, as well as monitoring and distributing the Foreign Currency 
Fluctuation Account balance, the Commission reduces its overall future 
financial risk to continued operations. 

[End of section] 

Financial Statements: 

American Battle Monuments Commission: 
Consolidating Balance Sheet: 
As of September 30, 2010: 
(With Comparative Consolidated Total as of September 30, 2009): 

American Battle Monuments Commission: 
Consolidating Balance Sheet: 
As of September 30, 2009: 
(With Comparative Consolidated Total as of September 30, 2008): 

Assets: 

Intragovemmental: 

Fund balance with Treasury (note 2); 
General Fund, Cemeteries and Memorials: $59,268,841; 
Trust Funds, WWII and Other Trust Funds: $3,155,429; 
Total Funds, Total 2010: $62,424,270; 
Total Funds, Total 2009: $47,379,636. 

Treasury investments, net (note 3); 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: $9,077,064; 
Total Funds, Total 2010: $9,077,064; 
Total Funds, Total 2009: $9,380,713. 

Total Intragovemmental: 
General Fund, Cemeteries and Memorials: $59,268,841; 
Trust Funds, WWII and Other Trust Funds: $12,232,493; 
Total Funds, Total 2010: $71,501,334; 
Total Funds, Total 2009: $56,760,349. 

Cash and foreign accounts (note 4): 
General Fund, Cemeteries and Memorials: $163,540; 	
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $163,540; 
Total Funds, Total 2009: $228,671. 

Accounts receivable: 
General Fund, Cemeteries and Memorials: $4,747; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $4,747; 
Total Funds, Total 2009: [Empty]. 

Contributions receivable, net (note 5): 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: [Empty]. 

General property and equipment, net (note 6): 
General Fund, Cemeteries and Memorials: $2,775,546; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $2,775,546; 
Total Funds, Total 2009: $2,883,378. 

Heritage property (note 6): 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: [Empty]. 

Total Assets: 
General Fund, Cemeteries and Memorials: $62,212,674; 
Trust Funds, WWII and Other Trust Funds: $12,232,493; 
Total Funds, Total 2010: $74,445,167; 
Total Funds, Total 2009: $59,872,398. 

Liabilities: 

Intragovemmental: 

Accounts payable: 
General Fund, Cemeteries and Memorials: $156,065; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $156,065; 
Total Funds, Total 2009: $158,804. 

Accrued salaries and benefits: 
General Fund, Cemeteries and Memorials: $386,666; 
Trust Funds, WWII and Other Trust Funds: $192; 
Total Funds, Total 2010: $386,666; 
Total Funds, Total 2009: $441,063. 

Total Intragovemmental: 
General Fund, Cemeteries and Memorials: $542,731; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $542,731; 
Total Funds, Total 2009: $599,867. 

Accounts payable: 
General Fund, Cemeteries and Memorials: $3,684,876; 
Trust Funds, WWII and Other Trust Funds: $6,059; 
Total Funds, Total 2010: $3,690,935; 
Total Funds, Total 2009: $3,003,754. 

Other liabilities (note 7): 
General Fund, Cemeteries and Memorials: $4,368,135; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $4,368,135; 
Total Funds, Total 2009: $4,516,412. 

Total Liabilities: 
General Fund, Cemeteries and Memorials: $8,595,742; 
Trust Funds, WWII and Other Trust Funds: $6,059; 
Total Funds, Total 2010: $8,601,801; 
Total Funds, Total 2009: $8,120,033. 

Commitments and contingencies (note 8): 

Net Position (note 9): 

Unexpended appropriations: 
General Fund, Cemeteries and Memorials: $53,552,402; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $53,552,402; 
Total Funds, Total 2009: $39,267,566. 

Cumulative Results of Operations (deficit): 
General Fund, Cemeteries and Memorials: $64,530; 
Trust Funds, WWII and Other Trust Funds: $12,226,434; 
Total Funds, Total 2010: $12,290,964; 
Total Funds, Total 2009: $12,484,799. 

Total Net Position: 
General Fund, Cemeteries and Memorials: $53,616,932; 
Trust Funds, WWII and Other Trust Funds: $12,226,434; 
Total Funds, Total 2010: $65,843,366; 
Total Funds, Total 2009: $51,752,365. 

Total Liabilities and Net Position: 
General Fund, Cemeteries and Memorials: $62,212,674; 
Trust Funds, WWII and Other Trust Funds: $12,232,493; 
Total Funds, Total 2010: $74,445,167; 
Total Funds, Total 2009: $59,872,398. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Balance Sheet] 

American Battle Monuments Commission: 
Consolidating Statement Of Net Cost And Changes In Net Position: 
For the Year Ended September 30, 2010: 
(With Comparative Consolidated Total for the Year Ended September 30, 
2009): 

Program Costs: 
				
Intragovemmental program costs: 

Operations and maintenance: 
General Fund, Cemeteries and Memorials: $11,173,447; 
Trust Funds, WWII and Other Trust Funds: $26,852; 
Total Funds, Total 2010: $11,200,299; 
Total Funds, Total 2009: $9,351,245. 

Program costs with the public: 

Operations and maintenance: 
General Fund, Cemeteries and Memorials: $40,881,014; 
Trust Funds, WWII and Other Trust Funds: $702,468; 
Total Funds, Total 2010: $41,583,482; 
Total Funds, Total 2009: $39,040,255. 

Property and equipment (note 6): 
General Fund, Cemeteries and Memorials: $6,482,130; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $6,482,130; 
Total Funds, Total 2009: $2,887,482. 

Foreign currency losses, net: 
General Fund, Cemeteries and Memorials: $11,032,311; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $11,032,311
Total Funds, Total 2009: $8,565,315. 

Net Cost of Operations: 
General Fund, Cemeteries and Memorials: $69,568,902; 
Trust Funds, WWII and Other Trust Funds: $729,320; 
Total Funds, Total 2010: $70,298,222; 
Total Funds, Total 2009: $59,844,297. 

Changes In Net Position: 

Cumulative Results (Deficit) - Start of Year: 
General Fund, Cemeteries and Memorials: $16,776; 
Trust Funds, WWII and Other Trust Funds: $12,468,023; 
Total Funds, Total 2010: $12,484,799; 
Total Funds, Total 2009: $12,279,956. 

Budgetary Financing Sources: Appropriations used: 
General Fund, Cemeteries and Memorials: $68,950,164; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $68,950,164; 
Total Funds, Total 2009: $58,389,099. 

Total Budgetary Financing Sources: 
General Fund, Cemeteries and Memorials: $68,950,164; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $68,950,164; 
Total Funds, Total 2009: $58,389,099. 

Other Financing Sources: 

Other revenue: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: $64,010. 

Contributions: 
General Fund, Cemeteries and Memorials: $25,560; 
Trust Funds, WWII and Other Trust Funds: $414,287; 
Total Funds, Total 2010: $439,847; 
Total Funds, Total 2009: $672,954. 

Treasury investment earnings: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: $73,444; 
Total Funds, Total 2010: $73,444; 
Total Funds, Total 2009: $21,068. 

Imputed financing: 
General Fund, Cemeteries and Memorials: $1,000,932; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $1,000,932; 
Total Funds, Total 2009: $877,619. 

Gain on disposition of assets: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: $24,390. 

Total Other Financing Sources: 
General Fund, Cemeteries and Memorials: $1,026,492; 
Trust Funds, WWII and Other Trust Funds: $487,731; 
Total Funds, Total 2010: $1,514,223; 
Total Funds, Total 2009: $1,660,041. 

Total Financing Sources: 
General Fund, Cemeteries and Memorials: $69,616,656; 
Trust Funds, WWII and Other Trust Funds: $487,731; 
Total Funds, Total 2010: $70,104,387; 
Total Funds, Total 2009: $60,049,140. 

Less: Net Cost of Operations: 
General Fund, Cemeteries and Memorials: $69,568,902; 
Trust Funds, WWII and Other Trust Funds: $729,320; 
Total Funds, Total 2010: $70,298,222; 
Total Funds, Total 2009: $59,844,297. 

Net Increase (Decrease) for the Year: 
General Fund, Cemeteries and Memorials: $47,754; 
Trust Funds, WWII and Other Trust Funds: ($241,589); 
Total Funds, Total 2010: ($193,835); 
Total Funds, Total 2009: $204,843. 

Cumulative Results (Deficit) - End of Year: 
General Fund, Cemeteries and Memorials: $64,530; 
Trust Funds, WWII and Other Trust Funds: $12,226,434; 
Total Funds, Total 2010: $12,290,964; 
Total Funds, Total 2009: $12,484,799. 

Unexpended Appropriations: 

Unexpended Appropriations - Start of Year: 
General Fund, Cemeteries and Memorials: $39,267,566; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $39,267,566
Total Funds, Total 2009: $20,610,467. 

Appropriations received: 
General Fund, Cemeteries and Memorials: $82,875,000; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $82,875,000; 
Total Funds, Total 2009: $76,570,000. 

Appropriations transferred in: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: $500,000. 

Other offsetting receipts and adjustments: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]; 
Total Funds, Total 2009: ($23,802). 

Appropriations used: 
General Fund, Cemeteries and Memorials: ($68,590,164); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($68,590,164); 
Total Funds, Total 2009: ($58,389,099). 

Increase (decrease) in unexpended appropriations: 
General Fund, Cemeteries and Memorials: $14,284,836; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $14,284,836; 
Total Funds, Total 2009: $18,657,099. 

Unexpended Appropriations - End of Year: 
General Fund, Cemeteries and Memorials: $53,552,402; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $$53,552,402; 
Total Funds, Total 2009: $39,267,566. 

Total Net Position - End Of Year: 
General Fund, Cemeteries and Memorials: $53,616,932; 
Trust Funds, WWII and Other Trust Funds: $12,226,434; 
Total Funds, Total 2010: $65,843,366
Total Funds, Total 2009: $51,752,365. 

The accompanying notes are an integral part of these statements. 

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

American Battle Monuments Commission: 
Consolidating Statement Of Budgetary Resources: 
For the Year Ended September 30, 2010: 
(With Comparative Consolidated Total for the Year Ended September 30, 
2009): 

Budgetary Resources: 

Budgetary Authority: 

Appropriations: 
General Fund, Cemeteries and Memorials: $82,875,000; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $82,875,000; 
Total Funds, Total 2009: $$76,570,000. 

Appropriations transferred in: 
General Fund, Cemeteries and Memorials: [Empty]; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: [Empty]
Total Funds, Total 2009: $500,000. 

Net transfer in for net foreign exchange loss: 
General Fund, Cemeteries and Memorials: $11,590,892; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $11,590,892; 
Total Funds, Total 2009: $9,263,087. 

Other (receipts collected): 
General Fund, Cemeteries and Memorials: $43,166; 
Trust Funds, WWII and Other Trust Funds: $487,731; 
Total Funds, Total 2010: $530,897
Total Funds, Total 2009: $732,472. 

Unobligated Balances: 

Start of year: 
General Fund, Cemeteries and Memorials: $27,795,433; 
Trust Funds, WWII and Other Trust Funds: $11,480,804; 
Total Funds, Total 2010: $39,276,237; 
Total Funds, Total 2009: $23,938,362. 

Net transfer (out) for net foreign exchange (loss): 
General Fund, Cemeteries and Memorials: ($11,590,892); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($11,590,892); 
Total Funds, Total 2009: ($9,263,087). 

Other adjustments: 
General Fund, Cemeteries and Memorials: ($27,368); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($27,368); 
Total Funds, Total 2009: [Empty]. 

Total Budgetary Resources: 
General Fund, Cemeteries and Memorials: $110,686,231; 
Trust Funds, WWII and Other Trust Funds: $11,968,535; 
Total Funds, Total 2010: $122,654,766; 
Total Funds, Total 2009: $101,740,834. 

Status of Budgetary Resources: 

Obligations incurred-direct: 
General Fund, Cemeteries and Memorials: $74,565,006; 
Trust Funds, WWII and Other Trust Funds: $740,531; 
Total Funds, Total 2010: $75,305,537; 
Total Funds, Total 2009: $62,288,791. 

Unobligated balances available: 
General Fund, Cemeteries and Memorials: $36,121,225; 
Trust Funds, WWII and Other Trust Funds: $11,228,004; 
Total Funds, Total 2010: $47,349,229; 
Total Funds, Total 2009: $39,452,043. 

Total Status of Budgetary Resources: 
General Fund, Cemeteries and Memorials: $110,686,231; 
Trust Funds, WWII and Other Trust Funds: $11,968,535; 
Total Funds, Total 2010: $122,654,766; 
Total Funds, Total 2009: $101,740,834. 

Change in Obligated Balances: 

Obligations incurred for year: 
General Fund, Cemeteries and Memorials: $74,565,006; 
Trust Funds, WWII and Other Trust Funds: $740,531; 
Total Funds, Total 2010: $75,305,537; 
Total Funds, Total 2009: $62,288,791. 

Plus: Obligated balances, start of year: 
General Fund, Cemeteries and Memorials: $16,628,021 
Trust Funds, WWII and Other Trust Funds: $1,000,993; 
Total Funds, Total 2010: $17,629,014; 
Total Funds, Total 2009: $13,337,497. 

Less: Gross outlays for year: 
General Fund, Cemeteries and Memorials: ($67,877,123); 
Trust Funds, WWII and Other Trust Funds: ($737,035); 
Total Funds, Total 2010: ($68,614,158); 
Total Funds, Total 2009: ($57,997,274). 

Obligated Balances, End of Year: 
General Fund, Cemeteries and Memorials: $23,315,904; 
Trust Funds, WWII and Other Trust Funds: $1,004,489; 
Total Funds, Total 2010: $24,320,393; 
Total Funds, Total 2009: $17,629,014. 

Net Outlays: 
				
Gross outlays for year: 
General Fund, Cemeteries and Memorials: $67,877,123; 
Trust Funds, WWII and Other Trust Funds: $737,035; 
Total Funds, Total 2010: $68,614,158; 
Total Funds, Total 2009: $57,997,274. 

Less: Offsetting collections: 
General Fund, Cemeteries and Memorials: ($43,166); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($43,166); 
Total Funds, Total 2009: ($151,656). 

Net Outlays: 
General Fund, Cemeteries and Memorials: $67,833,957; 
Trust Funds, WWII and Other Trust Funds: $737,035; 
Total Funds, Total 2010: $68,570,992; 
Total Funds, Total 2009: $57,845,618. 

The accompanying notes are an integral part of these statements. 

[End of Consolidating Statement of Budgetary Resources] 

American Battle Monuments Commission: 
Notes To Consolidating And Consolidated Financial Statements: 
For the Fiscal Years Ended September 30, 2010 and 2009: 

Note 1. Significant Accounting Policies: 

A. Basis of Presentation: 

The accompanying consolidating and consolidated financial statements 
present the financial position, net cost of operations, changes in net 
position, and budgetary resources of the American Battle Monuments 
Commission (the Commission) 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 Commission is an independent agency within the executive branch of 
the federal government and was created by an Act of March 4, 1923, the 
current provisions of which are now codified in 36 U.S.C. Chapter 21. 
The Commission's mission is to commemorate the sacrifices and 
achievements of U.S. Armed Forces where they have served overseas 
since April 6, 1917, the date of the United States entry into World 
War I, and at locations within the United States when directed by the 
Congress. The Commission designs, administers, constructs, operates, 
and maintains 24 American military cemeteries and 25 federal 
memorials, monuments, and markers (herein collectively referred to as 
memorials). Three of the memorials are located in the United States 
while all of the cemeteries and the remaining memorials are located on 
foreign soil in 14 foreign countries, the Marianas, and Gibraltar. The 
Commission is also responsible for maintaining 7 nonfederal memorials 
with funds received from the memorials' sponsors. The Commission is 
headquartered in Arlington, Virginia. Field operations are conducted 
through offices located near Paris, France and Rome, Italy; and 
cemeteries in Manila, the Philippines; Mexico City, Mexico; and Panama 
City, Panama. 

The Commission also had responsibility for designing and constructing 
the National World War II Memorial located on the Mall in Washington, 
D.C. In accordance with 40 U.S.C. 8906(b), the Commission deposited 
$6.6 million into a separate Treasury account to offset the memorial's 
costs of perpetual maintenance. On November 1, 2004, the Commission 
signed an agreement with the National Park Service to formally 
transfer the National World War II Memorial to the Service for its 
future care and maintenance. Remaining funds reside in a trust fund in 
the U.S. Treasury to be used solely to benefit the World War II 
Memorial for other than routine maintenance expense. 

Commission programs are funded primarily through appropriations 
available without fiscal year limitation (no-year). The Commission 
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 gravesites; and (3) maintain and 
repair certain nonfederal war memorials. 

C. Basis of Accounting: 
The Commission's proprietary accounts (assets, liabilities, equity, 
revenue, and expenses) 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. Commission 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 Commission's cash receipts and disbursements are processed by the 
U.S. Treasury. Fund balances with Treasury are composed of 
appropriated general funds and trust funds. 

E. Investments: 

In accordance with 36 U.S.C. 2113(b), the Commission is authorized to 
invest World War II Memorial Trust Fund receipts in U.S. Treasury 
securities. The Commission is also authorized under a modification to 
its original legislation to invest receipts from certain nonfederal 
war memorial organizations in U.S. Treasury securities. 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 Commission's overseas offices maintain accounts of foreign 
currencies to be used in making payments in foreign countries. Amounts 
are recorded at a standard budget rate in U.S. dollars and a gain or 
loss recognized when paid in foreign currency. Appropriated monies are 
transferred from the Commission's Foreign Currency Fluctuation Account 
to fund net currency losses. Cash accounts in foreign currencies 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: 

The Commission recognizes unrestricted contributions or unconditional 
promises to give as revenue in the period of the initial pledge when 
sufficient verifiable evidence of the pledge 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 Commission at 
the time the goods are received or the services are performed. 
Multiyear contributions due over a period of time are discounted to 
their present value based upon the short-term Treasury interest rate. 

H. Operating Materials and Supplies Inventories: 

The Commission has determined that operating materials and supplies 
located at its cemeteries are not significant amounts and that it is 
more cost beneficial to record them on the purchase method of 
accounting whereby items are expensed as purchased rather than when 
consumed. Consequently, the Commission reports no operating materials 
or supplies inventories. 

I. Property and Equipment: 

Purchases of general property and equipment 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 5 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 Commission considers 
its cemeteries, and federal memorials, monuments, and markers acquired 
through purchase or donation to be noncollection heritage assets. 
Heritage assets acquired through purchase or donation are accounted 
for in the Commission's property records, and are not presented in the 
balance sheet. Withdrawals of heritage assets are recorded upon formal 
agreement with recipients. Additional disclosure on individual 
heritage asset cemeteries and memorials are found in the Schedules of 
Heritage Assets presented as unaudited other 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: 

The Commission's 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. The Commission's 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 Commission withholds .80 percent of 
base pay and as employer contributes 11.2 percent of base pay to this 
retirement system. For Federal Insurance Contribution Act (FICA) tax 
and Medicare, the Commission 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 
Commission withholds 7.00 percent of base pay plus 1.45 percent for 
Medicare from CSRS employees' earnings and as employer contributes 
7.00 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 
govemmentwide 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 Commission contributes a minimum of 1 
percent of FERS employees' base pay to TSP. For 2010, FERS employees 
could contribute up to $16,500 ($22,000 if at least age 50) on a tax-
deferred basis to TSP, which the Commission matches up to 4 percent of 
base pay. For 2010, CSRS employees may also contribute up to $16,500 
($22,000 if at least age 50) on a tax-deferred basis; however, they 
receive no matching contribution from the Commission. 

Retirement and other benefits for the Commission's foreign national 
employees are paid by the Commission in accordance with the provisions 
of 10 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 Commission 
Each year balances in the accrued separation pay and annual leave 
accounts are 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 Commission imputes financing for retirement and other benefits 
paid by OPM, financial audit costs incurred by the Government 
Accountability Office (GAO), and a heritage asset musical carillon 
donated each fiscal year. The Commission recognized these expenses and 
related imputed financing in its financial statements. A heritage 
asset musical carillon is also recognized each fiscal year as a 
donation by AMVETS and an in-kind expense. For fiscal year 2010, a 
donation was not given for a musical carillon. 

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. 

Note 2. Fund Balances with Treasury: 

All undisbursed account balances with the U.S. Treasury, as reflected 
in the Commission's records, as of September 30 are available and were 
as follows: 

Appropriated Funds: 
General Fund, 2010: $36,227,394; 
Trust Funds, 2010: [Empty]; 
Total, 2010: $36,227,394; 
Total, 2009: $29,846,213. 

Currency Fluctuation: 
General Fund, 2010: $23,041,447; 
Trust Funds, 2010: [Empty]; 
Total, 2010: $23,041,447; 
Total, 2009: $14,432,339. 

Other Trust Funds: 
General Fund, 2010: [Empty]; 
Trust Funds, 2010: $3,155,429; 
Total, 2010: $3,155,429; 
Total, 2009: $3,101,084. 

Total: 
General Fund, 2010: $59,268,841; 
Trust Funds, 2010: $3,155,429; 
Total, 2010: $62,424,270; 
Total, 2009: $47,379,636. 

Note 3. Treasury Investments, Net: 

As of September 30, the Commission's Trust Fund investments in U.S. 
Treasury notes, which are marketable securities due within 2 years 
were as follows: 

FY: 2010; 
Cost: $8,834,026; 
Interest Rates: 4.250 to 5.0%; 
Net Premium/(Discount): $156,464; 
Interest Receivable: $86,574; 
Net Investment: $9,077,064. 

FY: 2009; 
Cost: $8,832,026; 
Interest Rates: 4.250 to 5.750%; 
Net Premium/(Discount): $461,929; 
Interest Receivable: $86,758; 
Net Investment: $9,380,713. 

Amortization is on the interest method, and amortized cost 
approximated market as of September 30. 

Note 4. Cash and Foreign Accounts: 

Outside the United States, the Commission 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 as 
follows: 

Imprest Cash Funds: 
2010: $40,636; 
2009: $45,380. 

Foreign Bank Accounts: 
2010: $122,141; 
2009: $183,291. 

Undeposited Cash-Trust: 
2010: $763; 
2009: 0. 

Total: 
2010: $163,540; 
2009: $228,671. 

Note 5. Contributions Receivable: 

The Commission has a pledge from a living trust valued at $138,231 as 
of September 30, 2010. However, due to the uncertainty of time and 
amount when the pledge is collected, the contribution will be 
recognized at the amount when received. 

Note 6. General and Heritage Property and Equipment: 

General property and equipment acquisitions with an aggregate cost 
basis of $25,000 or less and all acquisitions of heritage assets which 
totaled $6,482,130 were expensed by the Commission in fiscal year 
2010. This included $2,293,504 related to the Normandy Visitor Center, 
a heritage asset. In fiscal year 2009, $2,887,482 was expensed, which 
included $1,532,186 of costs related to the construction of the 
Normandy Visitor Center. 

Since the 1960s, the Commission's Office of Overseas Operations near 
Paris, France, has occupied a residential structure owned by the 
United States government. The Commission 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 Commission's financial statements. 

General property and equipment as of September 30 was as follows: 

Category: Buildings: 
2010: Cost: $923,460; 
2010: Accumulated Depreciation: $196,068; 
2010: Net: $727,392; 
2009: Cost: $923,460; 
2009: Accumulated Depreciation: $165,316; 
2009: Net: $758,144. 

Accounting Systems: 
2010: Cost: $2,145,016; 
2010: Accumulated Depreciation: $1,929,838; 
2010: Net: $215,178; 
2009: Cost: $2,145,016; 
2009: Accumulated Depreciation: $1,852,848; 
2009: Net: $292,168. 

Equipment: 
2010: Cost: $4,522,998; 
2010: Accumulated Depreciation: $2,690,022; 
2010: Net: $1,832,976; 
2009: Cost: $4,121,515; 
2009: Accumulated Depreciation: $2,288,449; 
2009: Net: $1,833,066. 

Total: 
2010: Cost: $7,591,474; 
2010: Accumulated Depreciation: $4,815,928; 
2010: Net: $2,775,546; 
2009: Cost: $7,189,991; 
2009: Accumulated Depreciation: $4,306,613; 
2009: Net: $2,883,378. 
			
Heritage assets are significant to the mission of the Commission to 
design, construct, and maintain historical cemeteries and memorials. 
The Commission presents its heritage assets in three categories; 
cemeteries, federal memorials, and nonfederal memorials. Changes in 
heritage assets for fiscal year 2010 were as follows: 

Beginning of Year 10-1-09: 
Cemeteries: 24; 
Federal Memorials: 25; 
Nonfederal Memorials: 7. 

Number Acquired, Fiscal Year 2010: 
Cemeteries: 0; 
Federal Memorials: 0; 
Nonfederal Memorials: 0. 

Number Withdrawn, Fiscal Year 2010: 
Cemeteries: 0; 
Federal Memorials: 0; 
Nonfederal Memorials: 0. 

End of Year 9-30-10: 
Cemeteries: 24; 
Federal Memorials: 25; 
Nonfederal Memorials: 7. 

Through September 30, 2010, Commission cemeteries contain over 131,000 
interments. Over 94,000 Honored War Dead, whose remains were not 
recovered, are memorialized in the cemeteries and federal memorials 
that encompass over 1,600 acres. This land is provided to the 
Commission through host agreements with foreign countries for 
permanent use as cemeteries and memorials. 

Note 7. Other Liabilities: 

Other liabilities as of September 30 were as follows: 

Accrued Salaries and Benefits: 
2010: $1,657,119; 
2009: $1,573,798. 

Unfunded Separation Pay Liability: 
2010: $1,393,036; 
2009: $1,674,295. 

Unfunded Annual Leave: 
2010: $1,317,980; 
2009: $1,268,319. 

Total: 
2010: $4,368,135; 
2009: $4,516,412. 

Under a host nation agreement, the Commission's Italian employees earn 
separation pay for each year of service with the Commission. The 
Commission recognized an unfunded liability for separation pay for 
these employees of $1,393,036 as of September 30, 2010, and $1,674,295 
as of September 30, 2009. 

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 OPM. These costs are 
computed in accordance with cost factors provided by OPM. For fiscal 
year 2010, the Commission incurred $1,496,691 of pension and ORB 
costs, $501,932 of which was imputed. For fiscal year 2009, the 
Commission incurred $1,331,151 of pension and ORB costs, $417,619 of 
which was imputed. Total imputed costs of $1,000,932 for fiscal year 
2010 and $877,619 for fiscal year 2009 included audit services 
provided by GAO. 

Note 8. Lease Agreements: 

The Commission has no capital leases. The Commission's Arlington, 
Virginia, Headquarters Office is rented under a 5-year operating lease 
expiring in July 2012. 

The Commission's Rome office is located in the United States Embassy 
in Rome and payment for this space is made through the International 
Cooperative Administrative Support Services (ICASS) program with the 
U.S. State Department. The Florence Cemetery Superintendent's living 
quarters is rented under an operating lease expiring in January 2011. 

Living quarters for the Luxembourg Cemetery Assistant Superintendent 
are rented under an operating lease expiring in June 2011. Nine other 
living quarters leases for the benefit of the Commission's Paris 
office have been signed by the U.S. State Department and therefore, 
the Commission has no future liability for these leases. 

Rent expense for fiscal year 2010 operating leases was $714,175. 
Future minimum payments due on operating leases as of September 30, 
2010, are as follows: 

Fiscal Year 2011: $721,986; 
Fiscal Year 2012: $553,416; 
Total: $1,275,402. 

Note 9. Net Position: 

Net position balances as of September 30, 2010, were as follows: 

Unexpended Appropriations: 

Unobligated: 
General Fund: $36,121,225; 
Trust Funds: [Empty]; 
Total: $36,121,225. 

Undelivered Orders: 
General Fund: $17,431,177; 
Trust Funds: [Empty]; 
Total: $17,431,177. 

Total: 
General Fund: $53,552,402; 
Trust Funds: [Empty]; 
Total: $53,552,402. 

Cumulative Results of Operations (deficit): 

Unrestricted: 
General Fund: $64,530; 
Trust Funds: $11,228,004; 
Total: $11,292,534. 

Restricted for Undelivered Orders: 
General Fund: [Empty]; 
Trust Funds: $998,430. 
Total: $998,530; 

Total: 
General Fund: $64,530; 
Trust Funds: $12,226,434; 
Total: $12,290,964. 

Total Net Position: 
General Fund: $53,616,932; 
Trust Funds: $12,226,434; 
Total: $65,843,366. 

Net position balances as of September 30, 2009, were as follows: 

Unexpended Appropriations: 

Unobligated: 
General Fund: $27,795,433[A]; 
Trust Funds: [Empty]; 
Total: $27,795,433. 

Undelivered Orders: 
General Fund: $11,472,133; 
Trust Funds: [Empty]; 
Total: $11,472,133. 

Total: 
General Fund: $39,267,566; 
Trust Funds: [Empty]; 
Total: $39,267,566. 

Cumulative Results of Operations (deficit): 

Unrestricted: 
General Fund: $16,776; 
Trust Funds: $11,480,804; 
Total: $11,497,580. 

Restricted for Undelivered Orders: 
General Fund: [Empty]; 
Trust Funds: $987,219. 
Total: $987,219; 

Total: 
General Fund: $16,776; 
Trust Funds: $12,468,023; 
Total: $12,484,799. 

Total Net Position: 
General Fund: $39,284,342; 
Trust Funds: $12,468,023; 
Total: $51,752,365. 

[A] No-year appropriations received from FY 2002 through FY 2006 
totaling $30.0 million (after rescissions totaling $182,900) for 
design and construction of the Normandy Visitor Center were obligated 
by September 30, 2009. 

Note 10. Reconciliation of Net Cost of Operations to Budget: 

SFFAS No. 7 requires a reconciliation of proprietary and budgetary 
information in a way that helps users determine how budget resources 
obligated for programs relate to net costs of operations. Prior to 
fiscal year 2007, this reconciliation was accomplished by presenting a 
Statement of Financing as a basic financial statement. Effective for 
fiscal year 2007, the Office of Management and Budget in its Circular 
No. A-136, Financial Reporting Requirements, decided that this 
information for federal entities would be better placed and understood 
in a note. Consequently, this information is presented as follows: 

Resources Used To Finance Activities: 

Obligations incurred - direct: 
General Fund, Cemeteries and Memorials: $74,565,006; 
Trust Funds, WWII and Other Trust Funds: $740,531; 
Total Funds, Total 2010: $75,305,537; 
Total Funds, Total 2009: $62,288,791. 

Offsetting collections and recoveries: 
General Fund, Cemeteries and Memorials: ($43,166); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($43,166); 
Total Funds, Total 2009: ($36,623). 

Imputed retirement and audit services: 
General Fund, Cemeteries and Memorials: $1,000,932; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $1,000,932; 
Total Funds, Total 2009: $877,619. 

Other adjustments: 
General Fund, Cemeteries and Memorials: $98,634; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $98,634; 
Total Funds, Total 2009: $49,554. 

Total Resources Used to Finance Activities: 
General Fund, Cemeteries and Memorials: $75,621,406; 
Trust Funds, WWII and Other Trust Funds: $740,531; 
Total Funds, Total 2010: $76,361,937; 
Total Funds, Total 2009: $63,179,341. 

Resources That Do Not Fund Net Cost of Operations: 

General property capitalized on the balance sheet: 
General Fund, Cemeteries and Memorials: ($599,582); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($599,582); 
Total Funds, Total 2009: ($1,148,462). 

Undelivered orders - start of year: 
General Fund, Cemeteries and Memorials: $11,472,133; 
Trust Funds, WWII and Other Trust Funds: $987,219; 
Total Funds, Total 2010: $12,459,352; 
Total Funds, Total 2009: $9,386,385. 

Less: Undelivered orders - end of year: 
General Fund, Cemeteries and Memorials: ($17,431,177); 
Trust Funds, WWII and Other Trust Funds: ($998,430); 
Total Funds, Total 2010: ($18,429,607); 
Total Funds, Total 2009: ($12,459,352). 

Total Resources That Do Not Fund Net Cost of Operations: 
General Fund, Cemeteries and Memorials: ($6,558,626); 
Trust Funds, WWII and Other Trust Funds: ($11,211); 
Total Funds, Total 2010: ($6,569,837)
Total Funds, Total 2009: ($4,221,429). 

Components of Net Cost of Operations Not Requiring Resources in the 
Current Period: 

Components Requiring Resources in Future Periods: 

(Decrease) increase in unfunded annual leave: 
General Fund, Cemeteries and Memorials: $49,661; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $49,661; 
Total Funds, Total 2009: $113,593. 

(Decrease) increase in unfunded separation pay liability: 
General Fund, Cemeteries and Memorials: ($281,259); 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: ($281,259); 
Total Funds, Total 2009: $39,363. 

Increase in accounts receivable: 
General Fund, Cemeteries and Memorials: $4,747; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $4,747; 
Total Funds, Total 2009: [Empty]. 

Components Not Requiring Resources: 

Depreciation: 
General Fund, Cemeteries and Memorials: $707,413; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $707,413; 
Total Funds, Total 2009: $620,223. 

In-kind expenses: 
General Fund, Cemeteries and Memorials: $25,560; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $25,560; 
Total Funds, Total 2009: $113,206. 

Total Costs Not Requiring Resources in the Current Period: 
General Fund, Cemeteries and Memorials: $506,122; 
Trust Funds, WWII and Other Trust Funds: [Empty]; 
Total Funds, Total 2010: $506,122; 
Total Funds, Total 2009: $886,385. 

Total Resources Used to Finance the Net Cost of Operations: 
General Fund, Cemeteries and Memorials: $69,568,902; 
Trust Funds, WWII and Other Trust Funds: $729,320; 
Total Funds, Total 2010: $70,298,222; 
Total Funds, Total 2009: $59,844,297. 

Budget amounts agree with actual fiscal year 2009 amounts in the 
President's published 2011 Budget. Actual budget amounts for fiscal 
year 2010 will appear in the President's 2012 budget to be published 
after February 11, 2011, the date of the audit completion. 

Note 11. Fiduciary Activities: 

Fiduciary activities are the collection or receipt, and the management, 
protection, accounting, investment and disposition by the Federal 
Government of cash or other assets in which non-Federal individuals or 
entities have an ownership interest that the Federal Government must 
uphold. 

Fiduciary cash and other assets are not assets of the Federal 
Government and accordingly are not recognized on the balance sheet. 

The Scottish Widows Defined Benefit Scheme was established by a Trust 
Deed, which authorized the Commission to collect contributions on 
behalf of beneficiaries, foreign service national employees of the 
Commission's two cemeteries in England. Fiduciary assets as of 
September 30 were as follows: 

Schedule of Fiduciary Activity: 

Contributions, 2010: $79,791; 
Contributions, 2009: $454,197; 

Investment earnings, 2010: $36,827; 
Investment earnings, 2009: $67,515; 

Increases in fiduciary fund balances, 2010: $116,618; 
Increases in fiduciary fund balances, 2009: $521,712. 

Fiduciary net assets, beginning of year, 2010: $825,533; 
Fiduciary net assets, beginning of year, 2009: $303,821. 

Fiduciary net assets, end of year, 2010: $942,151; 
Fiduciary net assets, end of year, 2009: $825,533. 

Fiduciary Net Assets: 

Fiduciary Assets: Investments, 2010: $942,151; 
Fiduciary Assets: Investments, 2009: $825,533. 

Total Fiduciary Assets, 2010: $942,151; 
Total Fiduciary Assets, 2009: $825,533. 

Note 12. Commitments and Contingencies: 

As of September 30, 2010 the Commission had commitments of $18.4 
million from undelivered orders as a result of open contracts and 
purchase orders. Also as of September 30, 2010 the Commission had no 
contingencies expected to have a material effect on the financial 
statements. 

[End of section] 

Other Information: 

Required Supplementary Information: 

American Battle Monuments Commission: 
Other Information: 
September 30, 2010: 
(Unaudited): 

Maintenance, Repairs, and Improvements: 

The following unaudited information is required supplementary 
information on deferred maintenance and the condition of real property 
at Commission cemeteries and memorials: 

Deferred maintenance is maintenance that was not performed when it 
should have been or was scheduled to be and that, therefore, is put 
off or delayed for a future period. Maintenance and repairs performed 
on real property consisting of land improvements, buildings, and 
memorials totaled $10.0 million in fiscal year 2010 and $11.1 million 
in fiscal year 2009. For fiscal years 1998 through 2002, the 
Commission received $11 3 million of additional appropriations from 
the Congress that enabled it to entirely eliminate its deferred 
maintenance backlog as of September 30, 2002. No deferred maintenance 
backlog existed as of September 30, 2010, and 2009. 

Condition assessment surveys, using a five-point scale of one 
(excellent) to five (very poor), identify needed future maintenance 
and repair projects at cemeteries and memorials in order to maintain 
real property in an acceptable condition of three (fair) or better. 
These surveys are reviewed and updated at least annually by the 
Commission's engineering staff. In addition, engineering projects 
identified improvements in cemetery irrigation, drainage, roads, 
parking areas, and buildings. As of September 30, 2010, the Commission 
has identified 39 maintenance, repair, and improvement projects, with 
an estimated cost of $8 6 million, scheduled to be performed in fiscal 
year 2011, subject to available funding. 

Schedules of Heritage Assets: 

The following three pages present unaudited other information not 
required by U.S. generally accepted accounting principles on the 
Commission's 24 cemeteries; 25 federal memorials, monuments, and 
markers; and 7 nonfederal memorials as of September 30, 2010. 

Schedules of Heritage Assets: 

American Battle Monuments Commission: 
Schedule of Heritage Assets: 
September 30, 2010: 
(Unaudited): 

24 Cemeteries: 

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

Name: Ardennes American Cemetery; 
Location: Neupre, Belgium; 
Interred: 5,325; 
Memorialized: 462; 
Acres: 90.5; 
War: WW II. 

Name: Brittany American Cemetery; 
Location: St. James (Manche), France; 
Interred: 4,410; 
Memorialized: 498; 
Acres: 27.9; 
War: WW II. 

Name: Brookwood American Cemetery; 
Location: Brookwood, England; 
Interred: 468; 
Memorialized: 563; 
Acres: 4.5; 
War: WW I. 

Name: Cambridge American Cemetery; 
Location: Cambridge, England; 
Interred: 3,812; 
Memorialized: 5,127; 
Acres: 30.5; 
War: WW II. 

Name: Corozal American Cemetery; 
Location: Panama City, Panama; 
Interred: 5,407; 
Memorialized: 0; 
Acres: 16.0; 
War: Acquired by Executive Order from the former Panama Canal Zone. 

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

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

Name: Henri-Chapelle American Cemetery; 
Location: Henri-Chapelle, Belgium; 
Interred: 7,992; 
Memorialized: 450; 
Acres: 57.0; 
War: WW II. 

Name: Lorraine American Cemetery; 
Location: St. Avold (Moselle), France; 
Interred: 10,489; 
Memorialized: 444; 
Acres: 113.5; 
War: WW II. 

Name: Luxembourg American Cemetery; 
Location: Luxembourg City, Luxembourg; 
Interred: 5,076; 
Memorialized: 371; 
Acres: 50.5; 
War: WW II. 

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

Name: Mexico City National Cemetery; 
Location: Mexico City, Mexico; 
Interred: 1,563; 
Memorialized: 0; 
Acres: 1.0; 
War: Acquired by Executive Order from the War Department. 

Name: Netherlands American Cemetery; 
Location: Margraten, Holland; 
Interred: 8,301; 
Memorialized: 1,722; 
Acres: 65.5; 
War: WW II. 

Name: Normandy American Cemetery; 
Location: Colleville-sur-Mer, France; 
Interred: 9,387; 
Memorialized: 1,557; 
Acres: 172.5; 
War: WW II. 

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

Name: Oise-Aisne American Cemetery; 
Location: Fere-en-Tardenois, France; 
Interred: 6,012; 
Memorialized: 241; 
Acres: 36.5; 
War: WW I. 

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

Name: St. Mihiel American Cemetery; 
Location: Thiaucourt, Meurthe, France; 
Interred: 4,153; 
Memorialized: 284; 
Acres: 40.5; 
War: WW I. 

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

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

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

Subtotal for Cemeteries:	
Interred: 131,096; 
Memorialized: 60,314; 
Acres: 1,294.5. 

25 Federal Memorials, Monuments, And Markers: 

Name: East Coast Memorial; 
Location: New York City, NY; 
Memorialized: 4,609; 
Acres: 0.8; 
War: WW II. 

Name: Honolulu Memorial; 
Location: Honolulu, HI; 
Memorialized: 28,800; 
Acres: 1.0; 
War: WW II/Korea/Vietnam. 

Name: West Coast Memorial; 
Location: San Francisco, CA; 
Memorialized: 412; 
Acres: 1.3; 
War: WW II. 

Name: Audenarde Monument; 
Location: Audenarde, Belgium; 
Acres: 0.4; 
War: WW I. 

Name: Bellicourt Monument; 
Location: St. Quentin, France; 
Acres: 1.8; 
War: WW I. 

Name: Brest Naval Monument; 
Location: Brest, France; 
Acres: 1.0; 
War: WW I. 

Name: Cabanatuan Memorial; 
Location: Luzon, Phillipines; 
War: WW II. 

Name: Cantigny Monument; 
Location: Cantigny, France; 
Acres: 0.4; 
War: WW I. 

Name: Chateau-Thierry Monument; 
Location: Chateau-Thierry, France; 
Acres: 58.9; 
War: WW I. 

Name: Chaumont Marker; 
Location: Chaumont, France; 
War: WW I. 

Name: Gibraltar Naval Monument; 
Location: Gibraltar; 
Acres: 0.1; 
War: WW I. 

Name: Guadalcanal Memorial; 
Location: Guadalcanal; 
Acres: 0.5; 
War: WW II. 

Name: Kemmel Monument; 
Location: Ypres, Belgium; 
Acres: 0.2; 
War: WW I. 

Name: Marine Monument Belleau Wood; 
Location: Aisne, France; 
Acres: 199.6; 
War: WW I. 

Name: Montfaucon Monument; 
Location: Montfaucon, France; 
Acres: 9.6; 
War: WW I. 

Name: Montsec Monument; 
Location: Thiaucourt, France; 
Acres: 47.5; 
War: WW I. 

Name: Papua Marker; 
Location: Port Moresby, New Guinea; 
War: WW II. 

Name: Pointe du Hoc Ranger Monument; 
Location: St. Laurent-sur-Mer, France; 
Acres: 29.8; 
War: WW II. 

Name: Saipan Monument; 
Location: Saipan, Northern Mariana Islands; 
War: WW II. 

Name: Santiago Surrender Tree; 
Location: Santiago, Cuba; 
War: Spanish-American War. 

Name: Sommepy Monument; 
Location: Sommepy, France; 
Acres: 15.0; 
War: WW I. 

Name: Souilly Marker; 
Location: Souilly, France; 
War: WW I. 

Name: Tours Monument; 
Location: Tours, France; 
Acres: 0.5; 
War: WW I. 

Name: Utah Beach Monument; 
Location: Sainte Marie-du-Mont, France; 
Acres: 0.5; 
War: WW II. 

Name: Western Naval Task Force Memorial; 
Location: Casablanca, Morocco; 
War: WW II. 

Subtotal for Memorials; 
Interred: 0; 
Memorialized: 33,821; 
Acres: 368.9. 

Grand Total: 
Interred: 131,096; 
Memorialized: 94,135; 
Acres: 1,663.4. 

7 Nonfederal Memorials: 

Name: 29th Infantry Division Memorial; 
Location: Vierville-sur-Mer, France; 
War: WW II. 

Name: 30th Infantry Division Memorial; 
Location: Mortain, France; 
War: WW II. 

Name: 6th Engineering Special Brigade Memorial; 
Location: Vierville-sur-Mer, France; 
War: WW II. 

Name: 351st Bomb Group Memorial; 
Location: Oundle, England; 
War: WW II. 

Name: 147th Engineer Battalion Monument; 
Location: Englesqueville-la-Percee, France; 
War: WW II. 

Name: 507th Parachute Infantry Regiment Memorial; 
Location: Amfreville, France; 
War: WW II. 

Name: 398th Bomb Group Memorial; 
Location: Herdfordshire, England; 
War: WW II. 

[End of Other Information] 

[End of section] 

Appendix I: Management’s Report on Internal Control Over Financial 
Reporting: 

American Battle Monuments Commission: 
Established by Congress 1923: 	
Courthouse Plaza II, Suite 500: 
2300 Clarendon Boulevard: 
Arlington, VA 22201-3367: 

Mr. Steven J. Sebastian: 
Director, Financial Management and Assurance: 
U.S. Government Accountability Office: 
441 (3 Street, N.W. 
Washington, D.C. 20548: 

Dear Mr. Sebastian: 

The American Battle Monuments Commission's internal control over 
financial reporting is a process affected by those charged with 
governance, management, and other personnel, designed to provide 
reasonable assurance regarding the preparation of reliable financial 
statements in accordance with U.S. generally accepted accounting 
principles (GAAP). The Commission's internal control over financial 
reporting is designed to reasonably assure that (1) transactions are 
properly recorded, processed, and summarized to permit the preparation 
of financial statements in accordance with U.S. GAAP, and assets are 
safeguarded against loss from unauthorized acquisition, use, or 
disposition; and (2) transactions are executed in accordance with the 
laws governing the use of budget authority and other laws and 
regulations that could have a direct and material effect on the 
financial statements. 

Commission management is responsible for establishing and maintaining 
effective internal control over financial reporting. Commission 
management evaluated the effectiveness of its internal control over 
financial reporting as of September 30, 2010, based on the criteria 
established under 31 U.S.C. 3512 (commonly known as the Federal 
Manager's Financial Integrity Act), Based on that evaluation, we 
conclude that, as of September 30, 2010 the Commission's internal 
control over financial reporting was effective. 

Signed by: 

Max Cleland: 
Secretary: 

Signed by: 

Christine Fant: 
Chief Financial Officer: 

February 11, 2011: 

[End of section] 

Footnotes: 

[1] GAO, Financial Audit: American Battle Monuments Commission's 
Financial Statements for Fiscal Years 2009 and 2008; [hyperlink, 
http://www.gao.gov/products/GAO-10-399] (Washington, D.C.: Mar.1, 
2010). 

[2] A significant deficiency in internal control is less severe than a 
material weakness, yet is important enough to merit attention by those 
charged with governance. A material weakness is a deficiency, or 
combination of deficiencies, in internal control over financial 
reporting, such that there is a reasonable possibility that a material 
misstatement of the entity's financial statements will not be 
prevented, or detected and corrected on a timely basis. A deficiency 
in internal control exists when the design or operation of a control 
does not allow management or employees, in the normal course of 
performing their assigned functions, to prevent, or detect and correct 
misstatements on a timely basis. 

[3] Under the Commission's enabling legislation, up to 11 
Commissioners and the Secretary are appointed by the President of the 
United States. The Commissioners are charged with the execution of the 
Commission's mission, but may delegate any of its authorities to its 
Chairman, the Secretary, or to other officials in charge of Commission 
offices. 

[4] A ninth Commissioner was appointed in December 2010. 

[5] The Antideficency Act prohibits officers and employees of the U.S. 
government from obligating or spending in advance or in excess of 
appropriations. 31 U.S.C. § 1341(a). The U.S. Supreme Court and the 
Comptroller General have held that open-ended indemnification 
agreements violate this prohibition in the absence of specific 
statutory authority. See Hercules, Inc. v. United States, 516 U.S. 
417, 427-28 (1996); B-242146, Aug. 16, 1991. 

[6] These statistical samples were selected primarily to determine the 
validity of activities reported in the Commission's financial 
statements. We projected any errors in dollar amount to the population 
of transactions from which they were selected. In testing some of 
these samples, certain attributes were identified that indicated 
deficiencies in the design or operation of internal control. These 
attributes, where applicable, were statistically projected to the 
appropriate populations. 

[End of section] 

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