Letter of Transmittal - Appraisal Subcommittee

Financial Status of the ASCIn FY 1989, the ASC received a one-time appropriationof $5 million to fund its start-up operations.The appropriation was an advance from theUnited States Treasury and disbursements madeusing these monies had to be repaid. During FY1998, the ASC completely repaid the Treasury advanceunder Section 1108(c) of Title XI, which requiredrepayment by the end of FY 1998.Fiscal year 1990 was the first year in which theASC incurred operating expenses. In January 1992,the States began remitting to the ASC an annualfee of $25 for each licensed or certified appraiseradded to the Registry. Until June 1994, the ASC✯ ✯ ✯operated on its appropriation. Since then, the ASChas been funding its operations from Registry fees.Fees received during FY 2002 totaled $2,299,325.Appendix A contains the ASC’s FY 2002 auditedfinancial statements. They show that theASC’s financial position improved since the prioryear. Total assets and total liabilities increased, withthe fund balance increasing marginally over lastyear’s positive amount. The external auditors didnot find any material weakness involving the ASC’sinternal control structure and its operation or anymaterial instances of noncompliance with selectedprovisions of applicable laws and regulations tested.13