oversight

Examination of Records of the Finance Office Fiscal Year 1970

Published by the Government Accountability Office on 1971-01-18.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

RESTRICTED - Not to hb released otUtsids the Oeneral
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                               ·        'at3      r:ipcific appraval
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                                                     RELEASED




Examination Of Records
Of The Finance Office
Fiscal Year 1970                              B-7 d864


 House of Representatives




BY THE COMPTROLLER GENERAL
OF THE UNITED STATES



                       $cQ~                              3JAN.   18, 1 9 7.1
            COMPTROLLER GENERAL OF THE UNITED STATES
                       WASHINGTON. D.C. 20548




B- 114864




Dear Mr. Jennings:

      The accompanying report summarizes the results of
our examination of the records of the Finance Office, House
of Representatives, for the fiscal year ended June 30, 1970.
The examination was made pursuant to your request dated
May 11, 1970.

      A copy of this report is being sent to the Chairman of
the Committee on House Administration.

                              Sincerely yours,




                              Comptroller General
                              of the United States

The Honorable W. Pat Jennings
Clerk of the House of Representatives
                      Contents
                                                           Page

DIGEST                                                       1

INTRODUCTION                                                 3

ACCOUNTABILITY FOR APPROPRIATIONS AND FUNDS                  3
    Disbursements for salaries                               4
    Expenses of special and select committees                4
    Miscellaneous items                                      4
   'Payment of vouchers before approval                      7
    Control over checks                                      7

OPINION OF FINANCIAL STATEMENTS                              9

                                                Schedule
FINANCIAL STATEMENTS
    Statement of accountability for appro-
      priations and other funds, fiscal
      year ended June 30, 1970                      1      12
    Statement of appropriations and funds,
      fiscal year ended June 30, 1970               2       13
    Statement of authorizations and dis-
      bursements for special and select
      committees, Ninety-first Congress,
      January 3, 1969, through June 30,
      1970                                          3       15
    Schedule of contingent expenses of the
      House--miscellaneous items, fiscal
      year 1969 appropriations                      4       16
    Schedule of contingent expenses of the
      House--miscellaneous items, fiscal
      year 1970 appropriations                      5       17

                                                Appendix
APPENDIXES
    Letter from Clerk of the House of Rep-
      resentatives, dated May 11, 1970              I       21
    Memorandum of August 18, 1970 concern-
      ing corrective audit procedures              II       22
COMPTROLLER GENERAL'S            EXAMINATION OF RECORDS OF THE FINANCE OFFICE,
REPORT TO THE CLERK              HOUSE OF REPRESENTATIVES, FISCAL YEAR 1970
OF THE HOUSE OF                  B-114864
REPRESENTATIVES


DIGEST

WHY THE EXAMINATION WAS MADE

     The General Accounting Office (GAO) made an examination of the records
     of the Finance Office, House of Representatives, at the request of the
     Clerk of the House. (See app. I.)

FINDINGS AND CONCLUSIONS

     In GAO's opinion the financial statements (schs. 1 through 5), which
     were prepared on a basis conshstent wfth that of the preceding year
     and in accordance with the accounting practice described on page 9,
     present fairly the accountability of the Clerk of the House of Repre-
     sentatives for appropriated and other funds at June 30, 1970, and the
     status of the individual appropriations and other funds at that date.
     GAO found that:
       --Of 836 contingent fund vouchers paid in April 1970, 59 vouchers, or
         about 7 percent, were paid, contrary to prescribed procedures, prior
         to approval by the Committee on House Administration and the Clerk
         of the House. (See p. 7.)
       --Occasionally checks had been issued in amounts other than those shown
         on the vouchers or had been issued to the wrong payees. These checks
         were returned and corrected checks were issued. (See p. 7.)
       --Security over both blank checks and undelivered employees' payroll
         checks needed to be strengthened. (See p. 7.)

RECOMMENDATIONS OR SUGGESTIONS

     The Finance Officer, House of Representatives, should require that:
       --All contingent fund vouchers being processed for payment be approved
         by both the Committee on House Administration and the Clerk of the
         House prior to the payment of funds. (See p. 7.)
       --Controls be established to ensure that checks issued are for the cor-
         rect amounts and to the correct payees. (See p. 7.)
       --Security measures for all checks be strengthened to ensure that they
         are not left unattended for any period of time. (See p. 8.)
       --The sequence of check numbers be verified upon receipt of blank
         checks from the U.S. Treasury. (See p. 8.)

AGENCY ACTIONS AND UNRESOLVED ISSUES

    The Finance Officer agreed with GAO's suggestions and issued the nec-
    essary instructions to implement them.




                                       2
                       INTRODUCTION

     The General Accounting Office has made an examination
of the records of the FINANCE OFFICE OF THE HOUSE OF REPRE-
SENTATIVES for fiscal year 1970.

     The Clerk of the House is the principal fiscal officer
of the House. He disburses the funds appropriated for the
expenses of the House, other than those for salaries and
mileage of members and the expense allowance of the Speaker
that the Sergeant at Arms disburses. The Clerk of the House
makes disbursements on the basis of certifications by appro-
priate members and, in certain instances, by appropriate of-
ficers of the House. The financial records are kept in ac-
cordance with long-standing procedures of the Finance Office.

     Our examination was made in accordance with generally
accepted auditing standards and was undertaken to verify
the financial accountability of the Clerk of the House at
June 30, 1970. We (1) reviewed Federal laws relating to pay-
ments of salaries and other expenses of the House (2) exam-
ined, on a test basis, the records and financial transactions
for the required certifications and approvals, and (3) in-
cluded such auditing procedures as we considered appropriate.

        ACCOUNTABILITY FOR APPROPRIATIONS AND FUNDS

     At June 30, 1970, the unexpended funds for which the
Clerk of the House was accountable amounted to $6,824,698.
A statement of the accountability of the Clerk of the House
for the fiscal year ended June 30, 1970, as shown in the ac-
counts of the Finance Office, is presented as schedule 1 and
is summarized as follows:

     Unexpended balance, July 1, 1969     $     8,134,834
     Appropriations and receipts              102,036,585

         Total funds available                110,171,419

     Disbursements and transfers              103,346,721

     Unexpended balance, June 30, 1970    $    6,824,698



                                 3
     A statement showing, for each appropriation and fund,
the total amount available, the net disbursements, the
transfers during the period, and the unexpended balance at
June 30, 1970, is presented as schedule 2.

     Comments relative to disbursements for salaries, ex-
penses of special and select committees, miscellaneous items,
and payment of vouchers and to the control over checks are
presented in the following sections.

DISBURSEMENTS FOR SALARIES

     Most of the disbursements are for the payment of mem-
bers' clerk hire and the salaries of officers and employees
of the House. The payrolls are prepared on the basis of des-
ignations and appointments by the committee chairmen and of-
ficers and members of the House. Individual time and atten-
dance is not reported to the Finance Office, and salary pay-
ments continue until a notice to terminate is received. Any
payroll changes as a result of increased or decreased deduc-
tions requested by employees, appointments, terminations,
and so forth are recorded on pay-change work sheets from
original documents in the Finance Office. The work sheets
are then forwarded to the Data Processing Office for payroll
purposes.

     The special and select committee chairmen and the
elected officers of the House certify the correctness of the
payrolls covering the salaries of their respective employees,
whereas the standing committee chairmen and members do not.
Payrolls not certified are signed by the Clerk of the House
on the basis of the approved appointments.
EXPENSES OF SPECIAL AND SELECT COMMITTEES

     The expenses of special and select committees of the
House of Representatives are authorized and limited by House
resolutions. The authorization to incur expenses within the
specified limitation covers each session of the Congress un-
less otherwise provided in the authorizing resolution. Funds
to pay these expenses are appropriated on a fiscal-year basis.
Generally, expenses incurred during a given fiscal year are
paid from the appropriation applicable to that year.

     The expenses of special and select committees paid dur-
ing the fiscal year ended June 30, 1970, amounted to
$6,922,587 and were authorized by the Ninety-first Congress.

     The statement of authorizations, disbursements, and un-
expended balances for special and select committees of the
Ninety-first Congress is presented as schedule 3. This
schedule shows the authorizations and disbursements from
January 3, 1969, through June 30, 1970, and schedule 2 shows
the fiscal year 1970 transactions in the appropriation ac-
counts of the fiscal years indicated; thus the figures pre-
sented are for different periods of time.

MISCELLANEOUS ITEIS

     Amounts appropriated for miscellaneous items of the
House are available for necessary expenses not specifically
provided for in other appropriations. A separate appropria-
tion was established in fiscal year 1970 for employee bene-
fits which had previously been included in this appropria-
tion. In fiscal year 1970 there were 23 classifications of
miscellaneous items compared with 30 classifications in
fiscal year 1969.

     The funds appropriated for miscellaneous items for fis-
cal years 1969 and 1970 and the disbursements made from such
funds are presented as schedules 4 and 5 and are summarized
on the following page.




                              5
                                           1969         1970

Appropriations:
    Annual appropriation             $8,000,000      $5,010,000
    Transferred to other appropri-
      ations:
        Stationery Revolving Fund
          (prorated allowance for
          new members pursuant to
          2 U.S.Co 46-2)                    -7,000       -2,350
        Government contributions
          pursuant to Public
          Law 91-145, and Public
          Law 91-257                                   -63,100
        Special and select commit-
          tees pursuant to Public
          Law 91-257                                  -148,000
        Salaries, officers and
          employees, pursuant to
          Public Law 91-305                            -20,000
        Minority Leader's automo-
          bile pursuant to Public
          Law 91-257                         --                25

            Amount available             7,993,000   4,776,525

Total funds disbursed:
    Fiscal year 1969                     6,434,524
            "   1970                       639,799   3,105,137

            Total                        7,074,323   3,105,137

Unexpended balance, June 30, 1970    $     918,677   $1,671,388




                               6 ~         9867         7      8
PAYMENT OF VOUCHERS BEFORE APPROVAL

     The procedure for disbursing funds provides that contin-
gent fund vouchers be approved by both the Committee on
House Administration and the Clerk of the House prior to any
disbursement of contingent funds by the Finance Office. Our
review showed that, of the 836 contingent fund vouchers paid
in April 1970, 59 vouchers, or about 7 percent, were paid,
contrary to prescribed procedures, prior to approval by ei-
ther one or both of the above authorities.

     We suggested to the Finance Officer that this practice
be discontinued and that all contingent fund vouchers pro-
cessed for payment have the necessary approvals prior to the
disbursing of funds. In line with our suggestion, the Fi-
ance Officer issued verbal instructions to the Audit Section
requiring that all contingent fund vouchers be approved by
both the Committee on House Administration and the Clerk of
the House, prior to the processing of the payment checks.

     During our review we noted that occasionally checks had
been issued in amounts other than those shown on the vouchers
or had been issued to the wrong payees. For example, a
check was issued to a company for $3,014.90 although the
voucher was for $175.96. In another case, the House Record-
ing Studio submitted a voucher to the Finance Office which
showed that the payee was the Office Supply Service; however,
the check was made payable to the estate of a deceased em-
ployee. Although prior to our review the incorrect checks
were returned to the Finance Office and corrected checks
were issued, we believe that the situation indicated a need
for improving Finance Office audit procedures.

     To prevent future errors of this nature, we made several
suggestions to the Finance Officer. Procedures to prevent a
recurrence of such errors were established in a memorandum
dated August 18, 1970. (See app. II.)

CONTROL OVER CHECKS

     We observed that blank checks were being left unattended
near the bookkeeping and signature machines for substantial
periods of time. Since there is constant traffic in and out
of the Finance Office, it is quite possible for these checks

                              7
to be either lost or stolen. For example, we learned that
two blank checks were unaccounted for by the Audit Section
of the Finance Office. Since the sequence of numbers was
not verified upon receipt of blank checks from the U.S. Trea-
sury, the Audit Section had no way of knowing whether these
checks ever were received from the Treasury, or whether they
had been lost or stolen. The Treasury, however, was notified
on June 18, 1970, of their disappearance and stop-payment
notices subsequently were issued. The two checks were lo-
cated on November 24, 1970.

     We observed also a similar lack of security over unde-
livered employees' payroll checks. These checks were also
being left unattended for substantial periods of time.
Since employees are paid on a monthly basis, the amounts of
these checks are relatively large. As previously stated,
the constant flow of traffic in and out of the Finance Office
provides an opportunity for potential loss or theft of these
checks.

     We suggested to the Finance Officer that security mea-
sures for all checks be strengthened to ensure that they are
not left unattended for any period of time. We suggested
also that the sequence of check numbers be verified upon re-
ceipt of blank checks from the U.S. Treasury. This will
identify the check numbers for which the Finance Office is
accountable and should provide better control over disburse-
ments. The Finance Officer agreed with our suggestions and
issued the necessary instructions to implement them.




                             8
              OPINION OF FINANCIAL STATEMENTS

      The accompanying financial statements were prepared by
us from the records of the Finance Office, House of Represen-
tatives, which are maintained on a cash basis in accordance
with the long-standing procedures of the House Finance Of-
fice.

     In our opinion, the accompanying financial statements
(schs. 1 through 5), which were prepared on a basis consis-
tent with that of the preceding year and in accordance with
the accounting practice described above, present fairly the
accountability of the Clerk of the House for appropriated
and other funds at June 30, 1970, and the status of the indi-
vidual appropriations and other funds at that date.




                              9
FINANCIAL STATEMENTS




       11
SCHEDULE 1


                    THE        FINANCE          OFFICE




                           HOUSE OF REPRESENTATIVES

        STATEMENT OF ACCOUNTABILITY FOR APPROPRIATIONS AND OTHER FUNDS

                       FISCAL YEAR ENDED JUNE 30, 1970




UNEXPENDED BALANCE, JULY 1, 1969                                      $   8,134,834.39

APPROPRIATIONS AND RECEIPTS:
    Current appropriations                          $101,232,102.00
    Revolving funds receipts:
        Stationery Revolving
          Fund                 $       560,470.28
        House Recording Studio
          Revolving Fund               148,355.92
        House Beauty Shop Re-
          volving Fund                  60,777.35        769,603.55

    Proceeds from sale of mis-
      cellaneous items to be
      deposited in general
      fund of the Treasury                                34,878.79   102,036,584.34

            Total funds avail-
              able                                                    110,171,418.73

DISBURSEMENTS AND TRANSFERS:
    Disbursements for salaries
      and other expenses           101,073,551.86
    Less refunds and canceled
      checks                           140,683.89   100,932,867.97

    Transfers:
        Lapsed appropriations
          transferred to the
          general fund of the
          Treasury                   2,378,974.13
        Deposited in general
          fund of the Treasury          34,878.79      2,413,852.92   103,346,720.89

UNEXPENDED BALANCE, JUNE 30,
  1970 (sch. 2)                                                       $   6,824,697.84




                                           12
                                                                                                                            SCHEDULE 2

                                                  "
                                             T IE         F I h AN C E          UFF       ICE
                                                       HOUSE OP R}I'H;:'NTATIV'S

                                            STATEPIET OF AFFiOFRiATIUNS AND OFUNDS

                                               FISCAL YEAR EIDI) JUNE 30, 1970

                                                                             Funds                                                   Unexpendel
   fund                                                       fiscal       available             Net die-          Transfers
  symbol                                                                                                                              balance
                              Purpose                          year         (note a)            bursements          (note b)       June 3C. 1,170
0080410       Salaries, officers and employees                19z8
0090410              do.
                                                                       $      416,234.77            -        $ 416,254.77
                                                              1959            500,192.76          59,635.33       -                   440,507.43
0000410              do.                                      1970        17,910,440.00      17,609,b43.21        -                   240,79u.79
0080415       Clerk hire, members and delegates               1968              2,076.82           -             2,076.82
0090415                                                                                                                                  -
                     do.                                      1969             18,056.40             -95158c      -
0000415              do.                                                                                                               19,007.98
                                                              1970        49,200,00.00       49,176,1 4.14                             293,55.56
0090425       Attending physlcian                             1969             83,612.30          77,11747
0000425             do.                                                                                                                  ,49   3
                                                              1970             70,800.00          6,344.17                              2,455.83
0080431       Miscellaneous Items                             1968            203,717.31          30,793.72    177,923.59
0090431             do. (sch. 4)                                                                                                         -
                                                              1969         1,558,476.29          639,798.90       -                   918,677.39
0000431             do.    sch. 5)                            1970          4,776,525.00      3,105,136.93        -
0080432       Reporting hearings                                                                                                    1,671,38.07
                                                              1968             33,968.00           -            33,968.00
 009032
0000432
                    do.
                    do.
                             0090432                          1969            187,337.10         100,889.90       -~~~~~~~~~~~~~~~~~~~~33:968.0
                                                                                                                              -
                                                                                                                            66,447.20
                                                              1970            325,000.00         262,049.01       -                     2,95099
0080433       Special and select committees                   1968            397,288.31             -30.oc    397,588.31
                                                                                      397,299.31     -30       371588.3                  -
0090433             do.                                       1969            150,410.12         119,385.29
0000433             do.
                                                                                                                  -                    31,024.83
                                                              1970         7,050,000.00       6,803,141.79                            2456,58.21
0080434       Telegraph and telephone                         1968         1,069,866.92            7,712.68 1,062,174.24                 -
0090434             do.                                       1969            807,758.75         661,285.64                           146,4573.11
0000434             do.                                       1970         3,650,000.00       2,755,028.14        -
0080435       Revision of laws                                                                                                        894,971.86
                                                              1968                 98.98           -                98.98                -
0090435             do.                                       1969              1,852.66           1,750.00
0000435             do.
                                                                                                                  -                       102.66
                                                              1970             36,000.00          34,305.98       -                     1,694.02
0000436       Government contributions--employee
                benefits                                      1970         4,105,000.00         4,092,911.94
 0080439      Postage stamps                                                                                                           12,088.06
                                                                                  07.49             -                4,607.49            -
 0090439            do. not d                              1969              1587050              155,668.68          -                 3,039.82
 00004o39           do.      te e                          1970              320,390.00           155,958.25
 00X0441      Furniture                                                                                               -               164431.75
                                                          Wo year            255,291.41           255,120.94                              170.47
 oo0080441          do.                                    1968               23,298.54            11,125.03
 0090441            do.                                                                                             12173.51             -
                                                           1969              103,548.86           102,787.99          -                   760.87
 0000441            do.                                    1970              240,000.00           189,748.09          -                50,251.91
0060450       Coordinator of Information                   1968                1,479.22             -                1,479.22            -
0080460       Joint Committee on Internal Revenue
                Taxation                                      1968           35,354.26              -               35354.26             -
0090460             do.                                       1969            35,697.00                25.60
     ~~~~~~~~~~~~~~~~0000-~~460
as~ooo460
0080463
         ~          d
                    do.  0000460~~~~~~~~~~~~~~~~~~
                               o           .
              Joint Committee on Defense Production
                                                              1970                 97·m1.0
                                                                            607,715.00                 2.03,1.40
                                                                                                  601,829.46          -
                                                                                                                                       35,671.40
                                                                                                                                        :;u
                                                                                                                                        5,885.54
                                                              1968             5,770.32             -                5,TT.32             -
0090463             do.                                       1969           22,091.69                 71.90o
0000463             do.                                                                                                                22.019.79
                                                              1970          118,800.00            113,577.99                            5,222.01
0080470      Speaker's automobile                             1968               6125                                  612
0090470             do.                                       1969             1.312.79
0000470
0080471
               ~~~~00004~70
                    do.
                    do.
             Majority Leader's automobile
                                            ~1970             199
                                                              19.35
                                                                               1329
                                                                             15.750.0              4,
                                                                                                        78.8            1.7                  565.31
                                                                                                                                             970.65
                                                              1968               407.74             -                  47.4              -
0090471             do.                                       1969             1,141.11               601.25
0000471             do.                                                                                                                    539.86
                                                              1970           15,750.00             14,657.98                            1,092.02
0080472      Milnority Leader'a automobile                    1968                 9.04             -                      49.04         -
0090472             do.                                       1969               9395                 851.66                                 83.29
0000472             do.                                       1970           15,775.00             15,272.05                                502.95
0080474      Capitol Police Board                             1968          215,03980               -              21,039.80             -
0090474             do.                                       1969          727.070.31            540,349 69
0000474            do.                                                                                                                186,720.62
                                                              1970          900,000.00            345,132.59                          554,867.41
0080476      Uniforms and equlpment--Capital Police           1968               228.13             -                  228.13            -
0090476             0090476
                    do.        do~~~~~~~~~~~~~a.3                                                                      228.13-
                                                              1969           48,191.41            47,524.80                               666.61
0000476            do.                                        1970          134,0 60.00          105,762.09
0000499      Statement of appropriatlons                                                                                               28,237.91
                                                              1970             6,500.00            3,250.00                             3,250.00
        390  Consolidated Workling und                                         13  .16             -                13137.16
0093904
                   do.d
                   do.
                                   ~do.
                               93904                        1-1
                                                            1969
                                                                             ~19
                                                                             2,2 9.68              2,289.68           --
                                                                             3,693.10                986.52                            2,706.58
0003904            do.                                      1970                                 --3,700.00
0000820      Education of Pages                                                                                                        3,700.00
                                                            1970            112,307.00          112,307.00                               -
009/00825    Official mail costs                          1969-70        10,161,000.00       10.161,000.00
001X4004     House Recording Studio Revolving Fund        No year           338,36.56
00X0440
0OX14006
        0040 Stationery Revolving00y0440Fund
                           Revelvie&    Pund
             House Beauty Shop Revolving Fund
                                                            do.           2,673,928.24
                                                                                                210,793.04
                                                                                                210.793.011
                                                                                              1,936,067.03                          ~~~~~~~~~~~~~~~~~~~
                                                                                                                                     127,572.52
                                                                                                                                     737,861.21
                                                            do.              60,777.35           56,851.35                             3.92600
0010X42      Preparation of new edition of D.C.
               Code                                           do.            35.254.47             32,492.45                           2,762.02
0010437      Preparation of new edition of United
               States Code                                    do.           160,489.57            85,035.37
             Mlicellaneous receipts:                                                                                                  75,454.20
                  Sale of transcripts of hearings                             2,397.85             -                2,39g7.85           -
                            wastepaper                                       17,b423.78                             7,423.78            -
                            surplus property                                     72.13             -                  728.13
                 Other                                                                                                                  -
                                                                             14.,29.o3                             14.329.03
                     Total                                             $110,171,418.73       00,9,32,867.97     $2,413,852.92      $6,824697.84
aineludes transfers between appropriations and funds.
bconaists of $2,378,974.13 of lapsed appropriations and $34,878.79 of maiscellaneous receipts.
C.epresents   refunds of expenditures made In prior periods.
 the 1969 postage allowance expired January 18,       1970.
 TIhe 1970.postaae allowance expirel upon the convening of the let sess., 92d Cong.




                                                                     13
                      THE      FINANCE              OFFICE


                            HOUSE OF REPRESENTATIVES



                  STATEMENT OF AUTHORIZATIONS AND DISBURSEMENTS

          FOR SPECIAL AND SELECT COMMITTEES, NINETY-FIRST CONGRESS

                     JANUARY 3, 1969 THROUGH JUNE 30, 1970




                                                    Authorizations
     Parent committee            First session      Second session          Total

Agriculture                      $   100,000.00     $   100,000.00   $     200,000.00
Armed Services                       175,000.00         250,000.00         425,000.00
Banking and Currency                 692,500.00         681,000.00       1,373,500.00
Crime                                375,000.00         600,000.00         975,000.00
District of Columbia                 100,000.00            -               100,000.00
Education and Labor                  769,600.00         769,600.00       1,539,200.00
Foreign Affairs                      200,000.00         150,000.00         350,000.00
Government Operations                850,000.00         900,000.00       1,750,000.00
House Administration                 300,000.00         500,000.00         800,000.00
House Restaurant                        -                40,000.00          40,000.00
Interior and Insular Af-
   fairs                             115,000.00          80,000.00        195,000.00
Internal Security                    400,000.00         450,000.00        850,000.00
Interstate and Foreign Com-
  merce                              595,000.00         465,000.00       1,060,000.00
Judiciary                            250,000.00         250,000.00         500,000.00
Merchant Marine and Fish-
  eries                              135,000.00         175,000.00         310,000.00
Post Office and Civil Ser-
  vice                               412,000.00         394,000.00         806,000.00
Public Works                         486,000.00         587,000.00       1,073,000.00
Rules                                  5,000.00            -                 5,000.00
Science and Astronautics             350,000.00         350,000.00         700,000.00
Small Business                       350,000.00         505,000.00         855,000.00
Standards and Conduct                 20,000.00            -                20,000.00
Veterans' Affairs                    150,000.00         100,000.00         250,000.00
Ways and Means                        50,000.00            -                50,000.00
Special committees:
    Funerals                             2,424.86        13,531.65          15,956.51
United States Involvement
  in Southeast Asia                       -              30,000.00          30,000.00

          Total                  $6,882,524.86      $7,390,131.65    $14,272,656.51
                                                                    SCHEDULE 3




                                                            Unexpended
                     Disbursements                         balance
      1969                1970             Total        June 30, 1970
$    32,163.62       $   104,135.20   $  136,298.82     $    63,701.18
     60,066.65           173,242.72      233,309.37         191,690.63
    241,985.46           675,074.65      917,060.11         456,439.89
     17,655.90           606,348.09      624,003.99         350,996.01
     13,964.72            57,266.69       71,231.41          28,768.59
    271,281.02           709,139.91      980,420.93         558,779.07
     62,520.50           146,525.79      209,046.29         140,953.71
    377,436.27           892,541.43    1,269,977.70         480,022.30
     16,662.34           137,931.16      154,593.50         645,406.50
       -                  18,995.00       18,995.00          21,005.00
     25,986.57            85,279.95       111,266.52         83,733.48
    160,861.01           429,793.13       590,654.14        259,345.86
    177,593.49           543,348.49       720,941.98        339,058.02
    102,312.22           278,076.09       380,388.31        119,611.69
    49,914.65            160,628.14       210,542.79         99,457.21
    147,336.34           397,194.09       544,530.43        261,469.57
    229,500.21           545,060.75       774,560.96        298,439.04
        917.64             1,849.28         2,766.92          2,233.08
    140,958.56           401,913.87       542,872.43        157,127.57
    162,450.93           412,780.47       575,231.40        279,768.60
        170.30             5,666.82         5,837.12         14,162.88
     37,581.50           113,757.13       151,338.63         98,661.37
      1,866.38            11,736.07        13,602.45         36,397.55
      2,424.86           13,531.65         15,956.51

       ____-   ___           770.36            770.36        29,229.64
$2,333,611.14        $6,922,586.93    $9,256,198.07     $5,016,458.44




                                          15
SCHEDULE 4


                                                H E    FINANCE         OFFICE

                                                      HOUSE OF REPRESENTATIVES



                             SCHEDULE 'OF CONTINGENT EXPENSES OF THE HOUSE--MISCELLANEOUS ITEMS

                                                 FISCAL YEAR 1969 APPROPRIATIONS



                                                                                     Disbursed
                                                                            fiscal year ended June 30
                                                                                1969           1970             Total
  AVAILABILITY OF FUNDS:
      Appropriations (note a)                                                                              $8,000,000.00
      Transferred to Stationery Revolving Fund                                                                 -7.000.00
                        Total funds available                                                               7.993.000.00
   FUNDS DISBURSED:
    Item
  number

       1        Cleaning materials, supplies, towels, paper cups,
                  soap, and sundry items                           $ 213,207.98           S- 1,13 8.97 b      212,069.01
      2         Photostats and identification cards                     2,841.51               616.97           3,458.48
      3         Official blank checks (Clerk and Sergeant at Arms)      1,037.40               -                1,037.40
      4         Special office equipment, maintenance, and repairs     48,533.40            23,328.28          71,861.68
      S         News service, judicial books, tax pamphlets, etc.      74,650.22               806.70          75,456.92
      6         Newspapers (members' lobby)                             3,466.06               -                3,466.06
      7         Ice                                                        160.00              -                   160.00
      8         Laundry                                                35,162.62             7,715.37          42,877.99
      9         Gratuities                                            160,996.94             9,370.94         170,367.88
     10         Miscellaneous payroll (H. Res.)                       348,274.32               -              348,274.32
     11         Materials and equipment for folding                    36,872.22             2,531.94          39,404.16
     12         Premiums on official bonds                              4,129.00             1,809.00           5,938.00
     13         House Restaurant                                      175,000.00            36,000.00         211,000.00
     14         Clerk's motor vehicles                                    926.82               555.10           1,481.92
     15         Post Office motor vehicles                              2,455.13                55.13           2,510.26
     16         Publications distribution service motortruck               100.86                 2.70             103.56
     17         Hire of automobile, Sergeant at Arms                      300.00               300.00             600.00
     18         Stationery                                             65,674.64             8,894.40          74,569.04
     19         Electrical and mechanical equipment                   295,468.44           159,401.65         454,870.09
     20         Service on electrical and mechanical equipment         58,581.56             6,971.98          65,553.54
     21         Rental of home district office space, Members of
                  the Congress                                        407,225.67            41,759.34         48,985.01
     22         Official expenses of members, outside the District
                  of Columbia                                         352,767.84           135,594.12         488,361.96
     23         Insurance, Government contribution                    233,565.08               -              233,565.08
     24         Retirement, Government contribution                 2,741,501.84               -            2.741,501.84
     25         Contested-election cases                                2,000.00               -                2,000.00
     26         Health benefits, Government contribution              272,833.49               -              272,833.49
     27         Receptions for members of interparliamentary
                  institutions                                            519.10               -                   519.10
     28         Members' transportation expenses                      546,007.19            75,468.49         621,475.68
     29         Employees' transportation expenses                    123,572.64            11,405.55         134,978.19
     30         District telephone expenses                           226,691.74           118,350.21         345.041.95
                        Total funds disbursed                              $6.434523.71   $639,798.90       7.074.322.61
  UNEXPENDED BALANCE, JUNE 30, 1970                                                                        $ 918.677.39
  a$ 8 ,0   00 ,0 0 0
              appropriated under Public Law 90-417, July 23, 1968.
  bNet of prior year's adjustment, $1,500.00; refunds, $697.50; and disbursements,                 $1,058.53.




                                                                  16
                                                                              SCHEDULE 5


                              TH   E     FINANCE         OFFICE


                                       HOUSE OF REPRESENTATIVES




              SCHEDULE OF CONTINGENT EXPENSES OF THE HOUSE--MISCELLANEOUS ITEMS

                                   FISCAL YEAR 1970 APPROPRIATIONS




                                                                                   Fiscal year
                                                                                      ended
                                                                                  June 30, 1970

AVAILABILITY OF FUNDS:
    Appropriations (note a)                                                       $5,010,000.00
    Transferred to other appropriations:
        Stationery Revolving Fund                                                    -2,350.00
        Government contributions                                                    -63,100.00
        Special and select committees                                              -148,000.00
        Salaries, officers and employees                                            -20,000.00
        Minority Leader's automobile                                                    -25.00

            Total funds available                                                  4.776 525.00

FUNDS DISBURSED:

 Item
number

   1        Cleaning materials, supplies, towels, paper cups,
              soap, and sundry items                                                 168,601.30
   2        Photostats and identification cards                                        2,986.42
   3        Official blank checks (Clerk and Sergeant at Arms)                         2,026.94
   4        Special office equipment, maintenance, and repairs                        42,097.59
   5        News service, judicial books, tax pamphlets, etc.                         55,425.90
   6        Newspapers (members' lobby)                                                4,725.22
   7        Laundry                                                                   43,488.45
   8        Gratuities                                                               148,800;17
   9        Miscellaneous payroll (H. Res.)                                          195,596.77
  10        Materials and equipment for folding                                       41,275.47
  11        Premiums on official bonds                                                   511.00
  12        House Restaurant                                                         217,500.00
  13        Vehicles, House of Representatives                                         1,405.40
  14        Stationery                                                                75,625.11
  15        Electrical and mechanical equipment                                      259,960.51
  16        Service on electrical and mechanical equipment                            33,910.58
  17        Rental of home district office space, Members of the Congress            426,075.06
  18        Official expenses of members, outside the District of Columbia           354,047.51
  19        Contested-election cases
  20        Receptions for members of interparliamentary institutions                  1,265.26
  21        Members' transportation expenses                                         667,244.77
  22        Employees' transportation expenses                                       111,422.84
  23        District telephone expenses                                              251.144.66

                   Total funds disbursed                                           3.105,136.93

UNEXPENDED BALANCE, JUNE 30, 1970                                                 $1.671.388.07


*$4,960,000 appropriated under Public Law 91-145, December 12, 1969; $50,000 appropriated
 under Public Law 91-257, May 19, 1970; and Public Law 91-305, July 6, 1970.




                                                   17
I

    .1
 APPENDIXES




19
                                                      APPENDIX I




                             Effire of the (flak
                         *  ctne of fMey r1ntis7
                        pashirtshnit, ,  20515




                                      May 11, 1970




Honorable Elmer B. Staats
Comptroller General of the United States
General Accounting Office
Washington, D. C.

Dear Mr. Staats:
       I shall greatly appreciate your causing representatives

of the General Accounting Office, as in past years, to make an

audit of the Finance Office of the House of Representatives
covering the current Fiscal Year 1970, from July 1, 1969 to
June 30, 1970.

       Thank you for this valuable service.
                                      Sincerely,



                                      W.-E',CNNIN,     Clerk
                                      WU. S.Louse ox Representatives




                                 21
APPENDIX II


  Memo:andum To:   Don C. Gibson, Chief, Accounting Section & Marvin
                   Evans, Chief, Audit Section

  From:   James T. Molloy

  Date:   August 18, 1970

  Subject:   Corrective Audit Procedures

        It has come to my attention that in the past we have had problems
  with overpayment and underpayment of checks issued by this office. As
  of the above date I am institutifng the following procedures in the audit
  section to prevent these occurances.

                            Continual Audit Procedure

        When any group of checks are written they will immediately be checked
  for correctness of name, amount and date, then checked against the actual
  voucher and check register for correctness of amount. All group vouchers
  will be proven by making a tape of all the checks written for that voucher
  and then checking the total of the tape against the total amount shown
  on the voucher and check register.

                            Daily Audit Procedure

        No checks are to be released until 3:45 P. M. each day and then
  only after the audit section has run a tape on the total checks issued,
  the total vouchers processed and the total of the check registers for
  that days work, the final distribution of checks will be made by myself
  or Mr. Pearson. At 3:45 P. M. the reconciliation for that day is completed,
  and checks issued on vouchers after that time are to be carried over until
  the following days reconciliation.

                            Walk-Through Procedure

        Some of the Members are in the habit of sending one of the staff
  to the Office of Finance to hand carry a voucher through to completion.
  When this occurs the audit section is to get the permission of either
  myself or Mr. Pearson. The auditor then is to make out a three by five
  card and place it in the correct chronological order in the checks al-
  ready written showing the amount, the payee and the last three digits
  of the check number. These cards are to be kept in with the days checks
  until the daily reconciliation is completed.

        As a result of the above procedures there should be no dummy vouchers
  ever prepared after the above date for any reason whatsoever. It is
  stressed that all vouchers will be audited for correctness (including all
  group vouchers) before a check is written. It is also determined that
  the daily audit procedure will be completed by more than one member of
  the audit section (one will total checks, one the vouchers and one the
  check register). Each individual tape will be initialed and dated by the
  individual auditor.




                                                                   U.S. GAO Wash., D.C.

                                        22