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089074 1 (1977-03-09)

handle is hein.gao/gaobacvca0001 and id is 1 raw text is: 


               UNITED STATES GENERAL ACCOUNTING  OFFICE
                           REGIONAL OFFICE
                       ROOM 201 415 FIRST AVENUE NORTH
                       SEATTLE, WASHINGTON 98109





                                                 MAR   9 1977
Major General Wesley E  Peel
Division Engineer, North
  Pacific Division
U S  Army Corps of Engineers
210 Customs House
Portland, Oregon  97209

Dear General Peel

     We have completed our review of the Corps of Engineers (Corps)
project financial statements for the fiscal year ended June,30, 1976
The purpose of our review was to determine the reasonableness and
propriety of the project financial statements submitted by the North
Pacific Division (NPD) to the Bonneville Power Administration for
inclusion in the fiscal year 1976 Federal Columbia River Power System
consolidated financial statements   Our review included such test of
accounting records, financial procedures, and controls as we considered
necessary in the circumstances   Our 1976 detailed review work was
performed primarily at the Portland and Seattle Districts

     Matters requiring changes on the financial statements were brought
to the attention of responsible district officials and resolved during
our audit   In addition, we identified several areas where procedures
affecting the financial records could be improved

TRANSACTIONS WHICH REQUIRED     -
CHANGES TO THE FINANCIAL
STATEMENTS

     1.   Interest was incorrectly stated on the financial statements
of the Libby, Ice Harbor, Little Goose, and Lower Granite Projects

Libby

        --Interest on the Federal Investment was understated by
          $3,961,434 on the Statement of Assets and Liabilities









                                                          0 9707

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