oversight

Financial Audit: Senate Restaurants Revolving Fund for Fiscal Years 2002 and 2001

Published by the Government Accountability Office on 2003-03-14.

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

             United States General Accounting Office

GAO          Report to the Chairman and Ranking
             Minority Member, Committee on Rules
             and Administration, U.S. Senate, and the
             Architect of the Capitol

March 2003
             FINANCIAL AUDIT
             Senate Restaurants
             Revolving Fund for
             Fiscal Years 2002 and
             2001




GAO-03-410
             a
Contents



Letter                                                                                                              1


Appendix
           Appendix I:   Report on Audit of the U.S. Senate Restaurants Revolving
                         Fund                                                                                       4
                         Independent Auditor’s Report                                                               4
                         Balance Sheets                                                                             7
                         Statements of Operations and Changes in U.S. Government
                           Equity                                                                                    8
                         Statements of Cash Flows                                                                    9
                         Notes to Financial Statements                                                              10




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                         Page i                                                     GAO-03-410 Senate Restaurants
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A
United States General Accounting Office
Washington, D.C. 20548



                                    March 14, 2003                                                                         Leter




                                    The Honorable Trent Lott
                                    Chairman
                                    The Honorable Christopher J. Dodd
                                    Ranking Minority Member
                                    Committee on Rules and Administration
                                    United States Senate

                                    The Honorable Alan M. Hantman
                                    Architect of the Capitol

                                    As you requested, we provided for an audit of the financial statements of
                                    the U.S. Senate Restaurants Revolving Fund (the Fund) for the fiscal years
                                    ended September 30, 2002, and 2001, by contracting with the independent
                                    public accounting firm of Clifton Gunderson LLP. The contract required
                                    that the audit be done in accordance with U.S. generally accepted
                                    government auditing standards and the joint GAO/PCIE1 Financial Audit
                                    Manual.

                                    In its audit of the Fund, Clifton Gunderson LLP found the following:

                                    • The financial statements were presented fairly, in all material respects,
                                      in conformity with U.S. generally accepted accounting principles.

                                    • The Fund maintained effective internal control over financial reporting
                                      (including safeguarding assets) and compliance with laws and
                                      regulations.

                                    • There was no reportable noncompliance with selected provisions of
                                      laws and regulations it tested.




                                    1
                                     President’s Council on Integrity and Efficiency (PCIE).




                                    Page 1                                                     GAO-03-410 Senate Restaurants
Although Clifton Gunderson LLP found that the Fund maintained effective
internal control, it did identify certain matters involving the Fund’s internal
control that, while not significant enough to be considered reportable
conditions,2 deserve management attention. Clifton Gunderson LLP
reported these matters to management in a separate letter.

As disclosed in Clifton Gunderson LLP’s report and note 1 to the Fund’s
financial statements, the operation of the Senate Restaurants is
economically dependent on financial and other support provided primarily
by the Architect of the Capitol and the U.S. Senate. The financial
statements present the financial positions and the results of activities
financed through the Fund and are not intended to present the financial
position and results of operations of the Senate Restaurant as a whole.

• The Fund’s financial statements for fiscal years 2002 and 2001 include
  direct financial support provided by the Architect, which, after
  deducting repayment of loans to the Senate contingent fund, totaled
  $850,000 and $700,000, respectively from transferred appropriations.

• The Fund’s financial statements for fiscal years 2002 and 2001 do not
  include other support that benefits the operation of the restaurants.
  Specifically, the Architect of the Capitol provided approximately
  $200,000 and $110,000 in fiscal years 2002 and 2001, respectively, for the
  purchase and maintenance of restaurant-related capital items, which
  remain the property of the Architect. In addition, during fiscal years
  2002 and 2001, the Architect and the Government Printing Office
  provided the Fund with support services—the value of which cannot be
  readily determined.

As disclosed in Clifton Gunderson LLP’s report and note 1 to the Fund’s
financial statements, if operating trends continue, the Fund will continue to
require future support to maintain continuing operations.

In connection with the audit of the Fund’s financial statements performed
by Clifton Gunderson LLP, we reviewed its report and related working
papers and, as necessary, met with Clifton Gunderson LLP representatives


2
 Reportable conditions are matters coming to the auditor’s attention that in the auditor’s
judgment should be communicated because they represent significant deficiencies in the
design or operation of internal control, which could adversely affect the entity’s ability to
meet the internal control objectives described in the report.




Page 2                                                        GAO-03-410 Senate Restaurants
and the Fund’s management. Our review, as differentiated from an audit in
accordance with U.S. generally accepted government auditing standards,
was not intended to enable us to express, and we do not express, opinions
on the Fund’s financial statements and about the effectiveness of its
internal control or conclude on compliance with laws and regulations.
Clifton Gunderson LLP is responsible for the accompanying auditor’s
report and for the conclusions expressed in the report. However, our
review disclosed no instances in which Clifton Gunderson LLP did not
comply, in all material respects, with U.S. generally accepted government
auditing standards.


This report is a matter of public record and is intended for the use of the
U.S. Senate, the Architect of the Capitol, the management of the Senate
Restaurants, and other interested parties. We are sending copies of this
report to the Chairman and Ranking Minority Member, Subcommittee on
Legislative Branch, Senate Committee on Appropriations; and the Majority
Leader and Minority Leader of the Senate. Copies of this report will be
made available to others upon request. This report will also be available at
no charge on GAO’s Web site at www.gao.gov. Should you or your staff
have any questions concerning our review of the audits, please contact me
on (202) 512-6906 or Hodge Herry, Assistant Director, on (202) 512-9469.
You can also reach us by E-mail at WilliamsM1@gao.gov or
herryh@gao.gov.




McCoy Williams
Director
Financial Management and Assurance




Page 3                                            GAO-03-410 Senate Restaurants
Appendix I

Report on Audit of the U.S. Senate                                  Appendx
                                                                          ies




Restaurants Revolving Fund                                           Append
                                                                          x
                                                                          Ii




Independent Auditor’s Report




                               Page 4   GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 5                               GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 6                               GAO-03-410 Senate Restaurants
                 Appendix I
                 Report on Audit of the U.S. Senate
                 Restaurants Revolving Fund




Balance Sheets




                 Page 7                               GAO-03-410 Senate Restaurants
                                        Appendix I
                                        Report on Audit of the U.S. Senate
                                        Restaurants Revolving Fund




Statements of Operations and Changes in U.S. Government Equity




                                        Page 8                               GAO-03-410 Senate Restaurants
                           Appendix I
                           Report on Audit of the U.S. Senate
                           Restaurants Revolving Fund




Statements of Cash Flows




                           Page 9                               GAO-03-410 Senate Restaurants
                                Appendix I
                                Report on Audit of the U.S. Senate
                                Restaurants Revolving Fund




Notes to Financial Statements




                                Page 10                              GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 11                              GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 12                              GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 13                              GAO-03-410 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate
Restaurants Revolving Fund




Page 14                              GAO-03-410 Senate Restaurants
           Appendix I
           Report on Audit of the U.S. Senate
           Restaurants Revolving Fund




(190074)   Page 15                              GAO-03-410 Senate Restaurants
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