oversight

Audit of United States Capitol Guide Force, January 1, 1970, Through January 2, 1971, and Liquidation of Its Assets and Liabilities, January 3 Through March 4, 1971

Published by the Government Accountability Office on 1971-07-02.

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

Audit Of United States Capitol
Guide Force January 1, 1970, Through
January 2, 1971,~And Liquidation
Of Its Assets And Liabilities
January 3 Through March 4, 1971
                                 B-133224




                 ,‘.




BY THE COMPTROLLER     GENERAL
OF THE UNITED STATES
                         CCMPTROLLER      GENERAL         OF      PHE        UNITED      STATES
                                        U’ASHWGTON.        D.C.         20918




B-133224



Dear    Mr.    Dunphy:

         This is our report             on the audit    of the United      States      Capitol    Guide
                                                                  -
Force
I_-       financial        statements
            ---.-wm,-rr--------r  *-mm-    for the period      January     1,~19~&>&~%&--
uary 2, 1971, and the liquidation                of its assets      and liabilities       during    the
period     January        3 through      March    4, 1971, as required           by the Legislative
Reorganization            Actof     1970.

         The financial      statements       were prepared         by us from       the records
of the United      States   Capitol     Guide     Force    on a basis    consistent       with that
of the preceding        year and in accordance             with the accounting         practice
and financial      arrangements         described       on page 5 of the report,           In our
opinion,    the financial      statements       present     fairly  the financial      position    of
the Guide     Force     at January      2, 1971, and the results        of its operations         for
the period     then ended*

           We found that all assets     and liabilities                               of the Guide          Force   had   been
liquidated     within the 60-day    period     specified                              by the act.

         On January         3, 1971, the Capitol            Guide    Service    was established     as a
congressional        entity    under    a Capitol          Guide    Board,      As of January    3,
1971, members         of the Capitol      Guide           Force    at January      2, 1971, were ap-
pointed     as guides      under    the Capitol           Guide   Service     (congressional    employ-
ees).

                                                                   Sincerely               yours,




                                                                   Comptroller                    General
                                                                   of the United                  States

The Honorable        Robert     G. Dunphy
Chairman,     Capitol     Guide    Board            @Lk        as653




                               50 TH ANNIVERSARY                   1921 w 1971
                              Contents
                                                                     Page

INTRODUCTION                                                           1
    General comments                                                   1
    Legislative Reorganization           Act                           1

OPERATIONS OF THE CAPITOL GUIDE FORCE                                  3
    Guide service    fees                                              3
    Commissions                                                        3
    Service  fees                                                      3
    Income and distribution                                            4

LIQUIDATION OF ASSETS AND LIABILITIES            OF THE CAPITOL
GUIDE FORCE                                                            5

SCOPE OF AUDIT                                                         5

OPINION OF FINANCIAL         STATEMENTS                                5

                                                          Schedule
FINANCIAL STATEMENTS
     Comparative    statement   of financial con-
       dition,   January    2, 1971, and Decem-
       ber 31, 1969                                            1       9

    Comparative  statement   of income and ex-
      pense for period January 1, 1970,
      through January    2, 1971, and for ca-
      lendar year 1969                                         2      10

     Statement  of undistributed           income for
        period January   1, 1970,        through Jan-
        uary 2, 1971                                           3      11

     Statement     of distribution       of income   to
        guides                                                 4      12
     Statement       of liquidation     of assets and
        liabilities,        January   3 to March 4,
        1971                                                   5      13
       AUDIT OF THE UNITED STATES CAPITOL GUIDE FORCE

      AND THE LIQUIDATIOM        OF ITS ASSETS AND LIABILITIES

                              INTRODUCTION

GENERAL COHMENTS

       The United States Capitol      Guide Force was created            about
1876 to provide      for the orderly     handling      of tourists     in the
United States Capitol       Building.      Although     the Guide Force
was not established      by specific     legislation,       it 'has operated
continually     since its establishment.           The  Guide    Force oper-
ated under rules and regulations           issued by the Capitol         Po-
lice Board.

      The guides were not legislative          employees;     therefore
they. did not participate        in the Federal   retirement,       life in-
surance,   or health    benefits    programs.    Their compensation
was paid from fees collected          for guide services      and from
commissions on sales of the book 'We, the People."

       At December 31, 1970, the Guide Force consisted         of 24
guides.    Mr. Robert McCormick,     a House of Representatives
appointee,    served as Captain during   the first   'half of cal-
endar year 1970.     Because of illness    he was replaced     by
Mr. Jared Rolston,    a House of Representatives     appointee,    who
served as Captain for the remainder      of the year.

LEGISLATIVE    REORGANIZATION ACT

        The Legislative     Reorganization       Act of 1970, effective
January 3, 1971, provided           for reorganizing      the Guide Force
and establishing        it under the Congress as the Capitol          Guide
Service    and for the establishment          of a Capital     Guide Board.
The act provided        also that the Capitol        Guide Service   operate
under the direction,         supervision,     and control     of the Capitol
Guide Board and that all records and assets of the Guide
Force be transferred         from the Capitol       Police Board to the
Capitol    Guide Board.
      The Capitol      Guide   Board   is authorized:

      1. To establish  the number of Guide positions      consid-
         ered to be necessary   to carry out the activities       of
         the Capitol  Guide Service.

      2. To appoint on a permanent basis a Chief Guide, an
         Assistant Chief Guide, and the other Guides consid-
         ered to be necessary.

     3. To prescribe       the duties      and responsibilities   of all
         employees      of the Capitol      Guide Service.

     4. To fix,       and adjust  from time to time, the Capitol.
         Guide      Service employees'   respektive rates of pay at
         single      per annum (gross)   rates.

      5. To terminate    the employment of the Chief Guide, As-
         sistant   Chief Guide, or Guides as the Board consid-
         ers to be appropriate.

      6. To prescribe     a uniform  dress       to be worn by the Cap-
         itol    Guide Service employees         when on duty and to
         provide     such uniforms  without        charge to the employ-
         ees .

        As of January 3, 1971, the Capitol       Guide Board ap-
pointed    the members of the Capitol      Guide Force at January 2,
1971, as members of the Capitol        Guide Service.    Pending the
appointment     of a Chief Guide, Mr. Floyd Kirby,      a Senate ap-
pointee,     is serving.in the position.

      The act provides    that a fee no longer be charged for a
guided tour of the United States Capitol      and that the ex-
penses of the Capitol     Guide Service be paid from the contin-
gent fund of the House of Representatives      until  appropria-
tions are available    for the payment of such expenses.




                                       2
             OPERATIONS OF THE CAPITOL GUIDE FORCE

GUIDE SERVICE FEES

       The fees charged for guide service,         as provided for by
the Capitol    Police Board's regulations,       were 25 cents a per-
son for general      visitors and 15 cents a person for school
organizations,     with the following    exceptions.

      1. For groups brought  in by sight-seeing   companies,  a
         fee of 15 cents was charged for children    from 6 to
         I.2 years of age; no fee was charged for children
         under 6 years of age.

      2. For other general visitors,  no fee was charged               for
         children  under 10 years of age.

      ,3. Special  tours,     for which     tickets   were not   issued,
          were given for      a $5 fee.

     Prenumbered tickets        were sold to general  visitors and
to school organizations‘and         sight-seeing companies on a pre-
paid basis.



         By arrangement    with the United   States Capitol      Histori-
cal Society,       the guides included    in their    lectures   a brief
description       of the book IWe, the People" and encouraged
visitors     to purchase a copy either      before leaving     the Capi-
tol or by mail order.          A mail order form for the book was
printed     on the back of the tour tickets        sold by the Guide
Force.

      The arrangement provided    that the society  pay the Guide
Force a basic commission of $100 a week and a commission of
5 cents for each paperbound    copy and 10 cents for each hard-
bound copy of the book sold,      These commissions were paid
to the guides at Z-week intervals.

SERVICE FEES

      The guide service       fees    were determined  by totaling       the
amount of cash received         for   tickets  sold to general    visitors

                                       3
and the dollar    value of prepaid        tickets   redeemed and were
apportioned    to participating       guides--those     on duty or on
approved leave-- subject        to the allocation      of an additional
50 cents to the captain.          The fees were paid to the guides
each week.

INCOME AND DISTRIBUTION

      Net income for the period      January 1, 1970, through Jan-
uary 2, 1971, was $240,982.        (See  sch. 2.)     The distribu-
tion of income to guides was $242,118         (see sch. 4), of which
$2,410 represented   1969 undistributed       income.    The undistrib-
uted income at January 2, 1971, was $1,274.            (See sch. 3.)

      The compensation      for each guide who worked full      time
for the entire      period January    1, 1970, through January 2,
1971, averaged $10,425,        compared with an average of $11,500
for calendar     year 1969.     The decrease in compensation      re-
sulted primarily       from a decline   in the number of visitors
using the guide service.




                                   4
               LIQUIDATION      OF ASSETS AND LIABILITIES

                      OF THE CAPITOL GUIDE FORCE

         The Capitol  Guide Board was given 60 days from Janu-
ary 3, 1971, to conclude         the affairs     of the Guide Force.
During the period January 3 through March 4, 1971, all lia-
bilities     were paid and the remaining        undistributed      income
of $1,274 was paid to the guides;            each guide's     share was
based on the percentage        of his participation         in the total
income distributed      during     1970.    (See sch. 5.)

      During the liquidation         period cash refunds    of $3,857
were made for prepaid      tickets      redeemed, the largest   refund
being made to D.C.'Transit         in the amount of $3,008.

                              SCOPE OF AUDIT

       Our audit was made in accordance with generally          accepted
auditing   standards    and accordingly   included   such tests of
the accounting     records and such other auditing      procedures
as we considered      to be necessary   in the circumstances.

                   OPINION OF FINANCIAL         STATEMENTS

        The accompanying        comparative      statements     of financial
condition       (sch. 1) and of income and expense (sch. 2) and
the statements        of undistributed       income (sch. 31, distribu-
tion of income to guides (sch. 41, and liquidation                       of assets
and liabilities         (sch. 5) were prepared           by us from the rec-
ords of the United States Capitol                Guide Force, which had
been maintained        on an accrual       basis.      These statements        do
not include        the cost of certain       benefits       and services     fur-
nished to the Guide Force without                charge,     such as space
used by the Guide Force, telephone                 service,    cost of tickets
and forms printed          by the United     States Government Printing
Office,      and services     by the staff       of the Sergeant at Arms
of the Senate.

        In our opinion,      the accompanying     financial      statements--
schedules     1, 2, and     3--which  were prepared       on a basis con-
sistent    with that of      the preceding   year and in accordance
with the accounting         practice  and financial       arrangements



                                        5
described   above, present  fairly   the financial    position of
the United   States Capitol   Guide Force at January 2, 1971,
and the results    of its operations    for the period January    1,
1970, through    January 2, 1971.
-CIAL   STATEMENTS
                                                                        SCHEDULE1


                  UNITED STATES CAPITOL GUIDE FORCE



        COMPARATIVE STATEMENT OF FINANCIAL                  CONDITION

            JANUARY 2, 1971,       AND DECEMBER 31,            1969


                                               January 2,       December 31,
                                                   1971             1969

       ASSETS

CASH                                                  $8,278               $11,528
ACCOUNTS RECEIVABLE                                      494                    375
          Total    assets                             $_8,772              $11,903,

      LIABILITIES AND
   UNDISTRIBUTED INCOMI?

LIABILITIES:
      Undistributed      income
         payable                             $1,104            $2,126
      Federal     income taxes
         withheld                             2,418               816
      District      of Columbia
         income taxes withheld                  119               134
      Unearned sales                          3,857             6,417
          Total    liabilities                        $7,498               $ 9,493

UNDISTRIBUTED INCOME (sch.          3)                 1,274               -2,410
          Total liabilities         md
            undistributed        income               $8,772               $11,903




                                         9
SCHEDUIZ 2

                     UNITED STATIZSCAPITOL GUIDE FORCE




              COMPARATIVESTATEMENTOF INCOMEAND EXFENSE
    FOR PERIOD JANUARY1, 1970, THROUGHJANUARY2, 1971
                           AND FOR CALENDARYEAR 1969



                                    January 1, 1970,          Calendar
                                         through                year
                                    January 2, 1971             1969
INCOME:
    Guide service            fees          $222,680              $243,378
    Bsok      e0mnisoion                     18,573                20,255
                                            241,253               263,633
   ENSE:
    Fl0wers       and gifts         $ 24               $126
    Supplies                         104                121
    Insurance                         76                117
    Tax penalty                       66
    B& service             charge    _1         271                      364
NET INCOME                                 $240,982              $263,269




                                      10
                                                                    SCHEDULE 3


                      UNITED STATES CAPITOL GUIDE FORCE



                      STATEMENT OF UNDISTRIBUTED           INCOME

      FOR PERIOD JANUARY 1, 1970,                  THROUGH JANUARY 2, 1971



Balance,       January     1, 1970                                    $     2,410

Net income       (sch.      2)                                            240,982

Available       for    distribution                                       243,392

Distribution          to guides       (sch.   4)                          242,118

Balance,       January      2, 1971                                   $     1,274




                                              11
                                U!UTED STATES CAPITOL GUIDE FORCE




                        STATEMENT OF CISTRIBUIION             OF INCOME TO GUIDES




                                --------              Distributed
                                                                II_----_ durimg period-------w-w_-
                                                                January 3 --through March 4, ----- 1971
                                 January 1, 1970,          Undistributed              Final
                                      through                     income         distribution
     -Name of puide             .&nuary     2, ---1971 January 2, 1971            of income         Total

Bobo, Virginia         P.              $ 10,443                $   47.97        $      56.08     $     104.05
Brady, Marc                              10,318                    47.96               55.83           103.79
Brown, Mary Love                          8,570                    47.97               46.02            93.99
Curry,     Erma                          10,339                    47.97               55.44           103.41
Daley, Mary D.                           10,375                    47.97               55.69           103.66
Dobbs, Catherine                         10,304                    47.96               55.32           103.28
Fenlon, Bette                            10,440                    47.97               56.08           104.05
Gee, Douglas,         Jr.                10,345                    47.97               55.58           103.55
Glover,     Patrick,      Sr.            10,028                    47.97               53.78           101.75
Isenberg,      Ray C.                    10,392                    47.97               55.83           103.80
Kimbrough,       Calvin                  10,442                    47.97               56.08           104.05
Kirby,     Floyd E.
    (Captain,      calendar
   year 1971)                                10,503                48.47               56.33           104.80
McCormick,       Robert E.
   (Captain,      calendar
   year 1970)                                10,284                47.97               55.18           103.15
Milner,     Kathleen      C.                 10,431                47.97               55.95           103.92
Nottingham,       Thomas L.                  10,451                47.97               56.08           104.05
Poulos,     George P.                        10,459                47.96               56.08           104.04
Rogers,     Ann                              10,443                47.96               56.08           104.04
Rolston,      Jared L.
   (Captain,      calendar
   year 1970)                                 10,485               47.96               56.33           104.29
Rutledge,      Ferrell     B.                 10,374               47.96               55.69           103.65
Schamp, Arlene PI.                            10,437               47.96               56.08           104.04
Seeley,     Eloise     8.                     10,443               47.96               56.08           104.04
Showalter,       Kathryn                      iO,442               47.96               56.08           104.04
Woods, Jeanette                               10,441               47.96               56.08           104.04
Dunphy, Donna                              ---L--4 929                           ---              --
     Total                             Q%lL8                   $1,103.71
                                                                = ___-   =      $1x&z-273.77     $2,377.48
                                                                                                  Tp




                                                         12
                                                                           SCHEDULE 5


                              UNITED STATES CAPITOL GUIDE FORCE



                                   STATEMENT OF LIQUIDATION

                                   OF ASSETS AND LIABILITIES

                              JANUARY 3, 1971,        TO MARCH 4, 1971



ASSETS AT JANUARY 3, 1971:
    Cash                                                                           $8,278
    Accounts receivable                                                                494

                               Total                                               $8,772

PAYMENT OF LIABILITIES            AND
  DISTRIBUTION OF INCOME:
       Federal      income taxes withheld                                          $2,418
       District       of Columbia income taxes                  with-
          held                                                                         119
       Prepaid tickets           redeemed                                           3,857
       Distribution         to guides:
              Undistributed         income                               $1,104
              Final    distribution       of
                 income                                                   1,274

                               Total                                      2,378

                        Less Federal   and District    of Colum-
                          bia income taxes withheld                          303    2,075
                        Federal  and District     of Columbia
                           income taxes withheld                                    2




U.S.   GAO.   Oash..   D.C.

                                                 13