The fiscal year 1996 financial statements presented in this report are unaudited. The 1995 financial statements are presented for comparative purposes. We received a disclaimer of audit opinion on the 1995 financial statements because of our auditor's concerns with the integrity of the data supporting our cost estimates for the Federal Family Education Loan Program. An audit of the Department, in accordance with the Government Management Reform Act of 1994, is currently underway. A copy of the audited financial statements together with the auditor's report will be available around July 31, 1997 and can be obtained by completing the mail-in card in the back of this report. If the card has been removed, you may call (202) 401-0322 to place your order.
The 1996 financial statements have been prepared to report the financial position and results of operations of the Department of Education, pursuant to the requirements of the Chief Financial Officers Act of 1990 and the Government Management Reform Act. While these statements have been prepared from the books and records of the entity in accordance with formats prescribed by the Office of Management and Budget, these statements are different from the financial reports used to monitor and control the budgetary resources which are prepared from the same books and records.
The financial statements should be read with the understanding that they are for a component of a sovereign entity, that liabilities not covered by budgetary resources cannot be liquidated without the enactment of an appropriation and that the payment of all liabilities other than for contracts can be abrogated by the sovereign entity.