Ililillilllllllll llllllllil LM090595 lllllIll11 Ill11 II1 Audit Of The House Recording Studio Revolving Fund For Fiscal Year 1971 8-714842 House of Representatives BY THE COMPTROLLER GENERAL OF THE UNITED STATES COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. 20548 B- 114842 Dear Mr. Jennings: I This is our report on an audit of the House Recording YI -- Studio Revolving Fund for fiscal year 1971. The audit was made pursuant to your request dated June 1, 1971. Additional copies of this report are being furnished to you for transmittal to the members of the Committee on the House Recording Studio. A copy of this report is being sent to the Chairman, , . Committee on House Administration. . Sincerely yours, Comptroller General of the United States The Honorable W. Pat Jennings Clerk of the House of Representatives 50 TH ANNIVERSARY 1921-1971 I I I I I I CO&TROLLER GENERAL'5' AUDIT OF THE HOUSE RECORDiNG STUDIO I I REPORT TO THE CLERK OF REVOLVING FUND FOR FISCAL YEAR 1971 THE HOUSE OF REPRESENTATIVES B-114842 I I I I DIGEST I ------ I I I I WHYTHE AUDIT WASMADE ! The General Accounting Office (GAO) made an audit of the House Recording I I Studio Revolving Fund pursuant to a request dated June 1, 1971, by the I Clerk of the House of Representatives. I I I I FINDINGS AND CONCLUSIONS I I In GAO's opinion the accompanying financial statements (schs. 1, 2, I I and 3), which were prepared on a bXs??consistent with that of the I preceding year--except for the change in accounting for transistors and I diodes which GAO approved--and in accordance with the accounting prac- I tice and financial arrangement described on page 6, present fairly the i financial position of the revolving fund, at June 30, 1971, the re- I I sults of its operations, and the sources and application of its funds I for the year then ended. I I I I I I 1 I I I I I I I I I I I I I I I I I I I ! I i I I i I I I I I I I I i Tear Sheet OCT.7.9,19?1 Contents Page DIGEST 1 INTRODUCTION 2 FINANCIAL POSITION 3 Accounts receivable 3 Equipment 3 OPERATIONS 5 OPINION OF FINANCIAL STATEMENTS 6 Schedule FINANCIAL STATEMENTS Comparative statement of assets and liabilities, June 30, 1971 and 1970 1 9 Comparative statement of operations, fiscal years ended June 30, 1971 and 1970 2 10 Comparative statement of sources and application of funds, fiscal years ended June 30, 1971 and 1970 3 11 APPENDIX Letter dated June 1, 1971, from the Clerk of the House of Representatives 15 COMPTROLLERGENERAL'S AUDIT OF THE HOUSE RECORDING STUDIO REPORT TO THE CLERK OF REVOLVING FUND FOR FISCAL YEAR 1971 THE HOUSE OF REPRESENTATIVES B-114842 DIGEST ------ WHYTHE AUDIT WASMADE The General Accounting Office (GAO) made an audit of the House Recording Studio Revolving Fund pursuant to a request dated June 1, 1971, by the Clerk of the House of Representatives. FINDINGS AND CONCLUSIONS In GAO's opinion the accompanying financial statements (schs. 1, 2, and 3), which were prepared on a basis consistent with that of the preceding year--except for the change in accounting for transistors and diodes which GAO approved--and in accordance with the accounting prac- tice and financial arrangement described on page 6, present fairly the financial position of the revolving fund, at June 30, 1971, the re- sults of its operations, and the sources and application of its funds for the year then ended. 1 INTRODUCTION The General Accounting Office audit of the HOUSE RE- CORDING STUDIO REVOLVING FUND for the fiscal year ended June 30, 1971, was made in accordance with generally ac- cepted auditing standards and included a review of the con- trols over equipment and inventories,, an examination of selected financial transactions, and such other auditing procedures as we considered necessary. We also made the accounting entries necessary to close the books and prepared the accompanying financial statements. (Schs. 1 through 3.) The House Recording Studio was established pursuant to provisions of section 105 of the Legislative Branch Appro- priation Act, 1957 (2 U.S.C. 123b). The Studio is operated by a Studio Director under the jurisdiction of the Clerk of the House of Representatives, subject to the direction and control of the Committee on the House Recording Studio. The Studio makes film, audio tape, and video tape re- cordings for members of the House of Representatives. The prices or rates to be charged for services are established by the Clerk of the House, subject to the approval of the Committee on the House Recording Studio. The Studio operations are financed through a revolving fund and from appropriated funds. All moneys received are deposited into the revolving fund and are available for the operation of the Studio. Employee salaries and benefits and certain other operating expenses, such as utilities, are paid from appropriated funds. These payments are not recorded in the Studioss accounting records but are shown as a footnote to the financial statements. 2 FINANCIAL POSITION A comparative statement of the assets and liabilities of the revolving fund at June 30, 1971 and 1970, is pre- sented as schedule 1. The following comments are furnished with respect to items shown on this statement. ACCOUNTS RECEIVABLE Accounts receivable amounted to $21,109 at June 30, 1971, an increase of $5,886 from the amount outstanding at June 30, 1970. Confirmations received from members of amounts owed represented about 80 percent of total receiv- ables at June 30, 1971. No material discrepancies were noted. The age of the accounts receivable at June 30, 1971, and at June 30, 1970, is shown below. Days June 30, 1971 June 30, 1970 outstanding Amuunt Percent Amount Percent 1 thraugh 59 $18,247 86.4 $12,936 85.0 60 " 89 2,018 9.6 1,786 11.7 90 " 119 784 3.7 499 3.3 120 or more 60 .3 2 .O Total $21,109 100.0 $15,223 100.0 EQUIPMENT A summary of the changes in the equipment accounts dur- ing the fiscal year and the balances at July 1, 1970, and June 30, 1971 follows. Balance Balance Type of July 1, Dis- June 30, equipment 1970 Additions posals 1971 Television $415,716 $4,462 $ - $420,178 Motion picture 118,460 1,312 2,350 117,422 Radio 54,026 243 - 54,269 Office and shop 5,586 5,586 Total $593,788 $6,017 $2,350 $597,455 3 Television equipment additions consisted of a micro- phone, a teleprompter reader, a timer and related equipment, and a camera cable. Motion picture equipment additions consisted of a microphone and a camera and parts. Radio equipment additions consisted of two timers and related equipment. Equipment disposals consisted of two recorder-playback units in the motion picture category. The Studio acquired surplus property, some of which was repaired and put into use and assigned an estimated value of $1,430. Since the equipment was acquired without cost to the Studio, however, it was not recorded in the accounting records or statements and was not depreciated. 4 OPERATIONS A comparative statement of revolving fund operations for the fiscal years ended June 30, 1971 and 1970, is pre- sented as schedule 2. The excess of revenue over costs amounted to $23,912 for fiscal year 1971 compared with $48,909 for fiscal year 1970. The prices charged for mo- tion picture and radio tape services during this period were substantially the same as those charged in June 1956 by the Studio's predecessor, the Joint Senate and House Recording Facility. During fiscal year 1971 the Studio made a change in its accounting system for transistors and diodes. Previously they had been expensed when acquired. A physical inventory of these items was taken and an asset control account was set up as of July 1, 1970. Since all these items had pre- viously been expensed, the change resulted in a credit to capital of $3,926. If this change in the accounting system had not been made, the net income for fiscal year 1971 would have been $499 less than the amount reported in sched- ule 2. QPINION OF FINANCIAL STATEMENTS The accompanying financial statements were prepared by us from the accounting records of the Studio which were main- tained on an accrual basis. Employee salaries and benefits and certain other operating expenses were paid from appro- priated funds and are shown in a footnote to the financial statements. In our opinion, schedules 1, 2, and 3, which were pre- pared on a basis consistent with that of the preceding year --except for the change in accounting for transistors and diodes which we approved--and in accordance with the ac- counting practice and financial arrangement described above, present fairly the financial position of the House Recording Studio Revolving Fund, House of Representatives, at June 30, 1971, and the results of itsloperations and the sources and application of its funds for the year then ended. 6 -CIAL STATEMENTS HOUSE OF REPRESENTATIVES HOUSE RECORDING STUDIO REVOLVING FUND COMPARATIVE STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1971 AND 1970 AS S ET-S 1971 1970 CURRENT ASSETS: Cash (U.S. Treasury) $204,234 $140,282 Petty cash 78 53 Total 204,312 140,335 Accounts receivable 21,109 15,223 Inventory of materials and supplies, at cost 18,821 17,740 Total current assets 244,242 173,298 FIXED ASSETS: Equipment (note a> 597,455 593,788 Less accumulated depreciation 190,391 143,378 Total fixed assets 407,064 450,410 TOTAL ASSETS $651,306 $623,708 aDoes not include surplus equipment acquired from General Services Administration at no cost. The studio has assigned an estimated value of $1,430 to the items that have been repaired and are currently in use. SCHEDULE I LIABILITIES AND CAPITAL 1971 1970 CURRENT LIABILITIES: Accounts payable $ 127 $ 367 CAPITAL AND EXCESS OF REVENUE OVER COSTS: Contributed capital 183,410 183,,410 Excess of revenue over costs: Balance , prior years 439,931 391,022 Fiscal year 23,912 48,909 Capitalization of supplies acquired and expensed in prior years 3,926 467,769 439,931 Total capital and excess of revenue over costs 651,179 623,341 TOTAL LIABILITIES AND CAPITAL $651,306 $623,708 SCHEDULE 2 .IU~ISE RECOKDTNI: STUDIO REVOLVING FUND COMPARATIVE STATEMENT OF OPERATIONS FISCAL YEARS ENDED JUNE 30, 1971 AND 1970 Motion picture -- Radio -- Television Total -1971 -1970 -1971 1970 --- 1971 1970 -1971 1970 __ REVENUE: From sales $20,326 $40,511 $33,162 $41,017 $63,460 $57,749 $116,948 $139,277 COSTS : Film materials 8,528 16,166 - 8,528 16,166 Outside processing 6,644 9,589 - 6,644 9,589 Maintenance and re- pairs 3,526 2,155 1,885 1,731 21,310 19,474 26,721 23,360 Office supplies and other expenses 593 426 593 427 593 426 1,779 1,279 Loss on disposal of equipment 235 _ _ _ _ _ 235 - Depreciation of equipment 6,868 4,819 4,538 -5,115 37,723 30,040 49,129 39,974 Total costs (note a) 26,394 23,155 7,016 -7,273 59,626 49,940 93,036 90,368 Excess of revenue over costs or excess of costs over revenue(-) (note a) $-5,06_8 $22X$ $26,146 $23,744 $ 3,834 $_Q99 $ 23,912 $ 48,909 aSalaries of $211,784 ($191,205 in fiscal year 1970) employees' benefits of $17,834 ($13,672 in fiscal year 1970), and certain other operating expenses of the Studio were provided by appropriations and were not included as expenses in determining the excess of revenue over costs of the revolving fund. 10 SCHEDULE 3 HOUSE OF REPRESENTATIVES HOUSE RECORDING STUDIO REVOLVING FUND COMPARATIVE STATEMENT OF SOURCESAND APPLICATION OF FUNDS FISCAL YEARS ENDED JUNE 30, 1971 AND 1970 1971 1970 FUNDS PROVIDED: Sales $116,948 $139,277 Disposition of equipment 2,399 Decrease in working capital 74,823 Total funds provided $116,948 $216,499 FUNDS APPLIED: Costs (excluding depreciation and other items not requiring cur- rent outlay of funds) $ 43,673 $ 50,395 Equipment additions 6,017 166,104 Increase in working capital 67,258 Total funds applied $116,948 $216,499 11 APPENDIX --- 13 APPENDIX I June 1, 1971 Honorable Elmer B. Staats Comptroller General of the United States General Accounting Office Washington, D. C. Dear Mr. Staats: I would be grateful if you would conduct an audit of the House Recording Studio and the Office Equipment Service of the House of Representatives for Fiscal Year 1971. With kind regards, I remain Sincerely, tatives WPJ:el U.S GAO. Oash.. D.C. 15
Audit of the House Recording Studio Revolving Fund for Fiscal Year 1971
Published by the Government Accountability Office on 1971-10-19.
Below is a raw (and likely hideous) rendition of the original report. (PDF)