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KEARNEY&
COMPANY
noted other matters involving the internal control over financial reporting that we have reported to managementof the Fund in a separate letter dated February 27,2004.
COMPLIANCE WITH LAWS AND REGULATIONS
The managementof the Fund is responsible .for complying with laws and regulations applicable to the Fund. As part of obtaining reasonable assurance about whether the Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests of compliance with the laws and regulations described in the preceding paragraphdisclosed an instance of noncompliance, described below, with the following laws and regulations that are required to be reported under Government Auditing Standards. .During fiscal year 2003, the Fund was not in compliance with the "Congressional Accountability Act (CAA) of 1995." In the CAA, Congress made its facilities and employees subject to the same safety laws that applied outside the Legislative Branch. In 1997, other provisions of the CAA applied fire safety standards to Congressional buildings. The Office of Compliance conducted a year-long fire safety that culminated in a report issued in January 200 I that identified numerous safetyhazards in the three Capitol Hill Buildings utilized by the Fund. The results of our tests disclosed no other instances noncompliance that are required to of be reported under Government Auditing Standards.
..investigation
This report is intended solely for the information and use of the Librarian of Congress, management of National Digital Library Fund, and Congress, and is not intendedto be and should not be used by anyone other than thesespecified parties.
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