Summary: Pursuant to a legislative requirement, GAO audited the use of commemorative coin surcharge proceeds received by World Cup USA 1994, Inc., the sponsor of the 1994 World Cup soccer games, focusing on the legislative requirement that World Cup USA transfer 10 percent of the surcharge proceeds it received to the U.S. Soccer Federation Foundation, Inc.
GAO noted that: (1) World Cup USA's financial statements were audited through December 1994 by an independent public accounting firm; (2) those statements showed total revenues from all sources of about $386 million and total expenses of about $347 million related to organizing and staging the World Cup soccer games; (3) GAO determined that World Cup USA received about $9.3 million in final surcharge proceeds and that it transferred about $930,000, 10 percent of the surcharge proceeds, to the Foundation; (4) GAO further determined that the Foundation provided those funds to three separate organizations which either plan to establish scholarship endowments or have awarded the scholarships directly to qualified students; (5) World Cup USA established a variety of accounts to record its expenses but was not required to, and did not, separately account for its use of surcharge proceeds; (6) neither World Cup USA nor GAO could determine specifically how World Cup USA applied the remainder of about $8 million in surcharge proceeds ($9.3 million less about $930,000 in scholarships and about $340,000 in administrative expenses) in organizing and staging the World Cup soccer games; and (7) provisions now require future coin surcharge recipients to (a) separately account for the expenditure of coin surcharge proceeds; and (b) obtain annual financial audits by an independent public accounting firm until all surcharge proceeds are expended or placed in trust.
