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KPMG Issues Unqualified Opinion on Liberty Disaster Relief Fund as of June 30, 2002
- To assure the public that the American Red Cross is exercising the highest level of stewardship over contributions to the victims of the September 11 attacks, an ongoing integrated audit process, under the supervision of the Audit Committee of the Board of Governors, was instituted within one week of September 11. This process included KPMG LLP, the U.S. Army Audit Agency and the Red Cross internal audit function.
- KPMG completed an initial financial statement audit of Liberty Disaster Relief Fund receipts and disbursements through October 31, 2001, and another audit of Fund activities for the period September 11, 2001 - June 30, 2002 (link to audit file attached).
- Important facts related to auditing activities to date:
- KPMG issued an unqualified opinion on Liberty Disaster Relief Fund receipts and disbursements at Red Cross national headquarters as of October 31, 2001, and noted no material weaknesses in internal controls.
- KPMG issued an unqualified opinion on all Liberty Disaster Relief Fund financial activities from September 11, 2001 - June 30, 2002 and again noted no material weaknesses in internal controls.
- The scope of the KPMG and internal audits included consideration of internal controls for Liberty Disaster Relief Fund contributions, as well as disbursements from the Fund, including in-kind materials and services.
- In addition to the independent financial audits by KPMG, Red Cross internal audit services, with assistance from KPMG, performed or coordinated supplemental audit testing at national headquarters and at more than 900 chapters to help evaluate the integrity of controls over the receipt, deposit and acknowledgement of contributions, as well as disbursements from the Liberty Disaster Relief Fund.
- The Red Cross has continued to provide services and assistance to those directly affected by the September 11 attacks, beyond the period covered in the audited financial statements. As of November 1, 2002, the Red Cross had received an unprecedented $1.052 billion in contributions (including $60 million of in-kind materials and services); $756 million of which has already been disbursed. With these generous contributions, the Red Cross already has provided:
- $276 million in direct assistance to 3,396 families of the deceased and seriously injured;
- $280 million to approximately 51,000 families of displaced workers, residents and disaster workers; and
- $139 million in immediate disaster relief that has provided an estimated 14 million meals, mental health services for approximately 236,000 people and health services for approximately 133,000 people (including $40 million of in-kind materials and services).
And the Red Cross will continue to provide assistance as long as needed.
- On January 31, 2002, the American Red Cross released a plan developed with former U.S. Senate Majority Leader George Mitchell, the Independent Overseer of the Liberty Disaster Relief Fund, detailing how the balance of the contributions to the Fund would be distributed. The plan emphasizes the prompt disbursement of financial aid while at the same time maintaining the Red Cross's commitment to help people with ongoing or unanticipated needs.
- Since January 31, Senator Mitchell has issued quarterly financial reports on the disbursement of funds; the last one is dated November 1, 2002. For more detail, see http://www.redcross.org/press/disaster/ds_pr/020801libertyfund.html.
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