DOCUMEWT RESUME 00288 - A0891 6 4 7 ] Physician Revolving Fund: Audit of the Office of the ttending GGD-77-29; B-181h04. August 1, 1975, through September 30, 1976. pp.). arch 9, 1977. 4 pp. 3 enclosures (3 Congress; by Report to Freeman H. Cary, Attending Physician, Robert F. Keller, Acting Comptroller General. Contact: General Government Div. Legislative FunctIons Budget Function: General Govrnment: (801). oi the Attending organization concerned: Congress: Office Physician. The financial transactions of the Office of the period Physician Revolving Fund were audited for the Attending 30, 1976. The financial through September were August 1, 1975, the for Revolving Fund prepared from records statements were maintained or a furnished by the fnd. The records, which cash basis, were adjusted to present the financial position and oa an accrual basis. results of the revolving fund operations expenser incurred in The statements do not include certain with appropriated funds. evolfing fund operations and paid for fairly the Findings/Conclusions: he statements present 30, 1976, the financial position of the Fund at September in its financial results of its operations, and the changes to position [or the 1-month period thCn ended. The net income be transferred to the U.S. Treasury for the pericd Augst 1, 1975, through Seplember 20, 1976, is $1,001.37. The purchase and the majority of the Fund's resale of nresr3tion drugs make upthe audit period, receipts and d.sburseents. During prescription drug sales amounted to about $28,000. Certainthe and officials of immunizations are given free to Members a $1 fee. ongress and to congressional employees for and achieve a proper Recommsendations: To provide better control should purchase mat.hing of costs and revenues, the Office vaccines which are of through the revolving fund those types through the given at a fee. The cost of vaccines purchased should Le reimbursed to revolving fund and given at no charge to the Office. (SC! the Fund from appropriated funds available c '-REPORTOF THE COMPTROLLER GENERAL OF THE UNITED STATES Audit Of The Office Of The Attending Physician Revolving Fund August 1, 1975, Through September 30, 1976 Congress cf the United States GGD.77-29 M2 ' - 7 of ~piC~-~COMPTROLLER GENERAL or THE UNITED STATES i/t-~~~-~~~ ~WASHINGCTON. O.C. 20542 B-181804 The Honorable Freeman H. Cary, M.D. The Attending Physician Congress of the United States Dear Dr. Cary: Pursuant to your August 25, 1976, request and the Legislative Branch Appropriation Act, 1976 (89 Stat. 283), of the we audited the financial transactions of the OfficeAugust Attending Physician Revolving Fun for the period 1, 1975, through September 30, 1976. SCOPE OF AUDIT Our audit was made in accordance with generally accept- ed auditing standards a.d included an examination of the accounting records and such other auditing procedures as we considered necessary. OPINION ON FINANZIAL STATEMENTS We prepared the financial statements for the Revolving Fund from records furnished us. We adjusted the records, wh'ch were maintained on a cash basis, to present the fiiancial position and results of the revolving fund opera- tions on an accrual basis. These statements do not include certain expenses--such as labor, syringce", and other supplies--incurred in revolving fund operations and paid for with appropriated funds. In our opinion, the accompanying statements (schs. 1,2, and 3), prepared in accordance with the financial arrange- ments des;,oed above, present fairly the fin ncial position of the Office of the Attending Physician Revlvinq Fund at September 30, 1976, the results of its operations, end the changes in its financia; position for the 14-month period then ended. GENERAL COMMENTS The Office of the Attending Physician was established in 1928 to serve the medical needs of the Members of Con-Fund gress. The Office of the Attending Physician Revolving B-181804 -- established by the Legislative Branch Appropriation Act, 1976--became effective August 1, 1975. It was capitalized through a transfer of the balance in the Office of the Attending Physician suspense account maintained by the Clerk of the ouse of Representatives. The act requires all moneys received from the sale of drugs or any cther source to be deposited by the Office in the revolving fund, and peLmits disbursements to be mate from the fund for the purchase of drugs for resale. After restoring any impairment of capital, the fund's net income, as established by our annual audit, is required to be transferred to the general fund of the U.S. Treasury. The net income to be transferred to the Treasury for the period August 1, 1975, through September 3C, 1976, is $1,001.37. (See sch. 2.) REVOLVING FUND ACTIVITIES Prescription drug sales The purchase and resale of prescription drugs make up the majority of the furd's receipts and disbursements. The Office purchases wholesale drugs and resells them for cash to Members' families and congressional employees. The price harged is unit cost rounded upward to the nearest nickel. The Office receives a 2 -F ent cash discount from its wholesaler for prompt payment. During the audit period, prescription drug sales amounted to about $28,000. Immunization receipts The Office charges a $1 fee for gamma globulin, polio, and certain influenza immunizations given to congressional employees. At th. direction of the Attending Physician, these vaccines are provided free to Members and officials of the Conaress. During the audit period immunization receipts totaled $1,581. The gamma globulin and polio vaccine were paid for out the revolving fund, but the influenza -accine was pur- chased with appropriated funds. We re tel5 that the Office used appLopriated funds or the influenza accire when the program was first institutea because the cost was small and continued to use this method of payment each year. 2 B-181804 The influenza immunization program is now much larger than the gamma globulin and polio programs in the number of immunizations given and in the percentage of immunizations given at the $1 fee, as shown in the following table: Polio and Immunizations aamma globulin Influenza Number Percent Number Percent Given at no charge 287 56 171 11 Given at $1 fee 224 44 1,357 89 Total 5'1 100 1,528 100 Our review of the costs and revenues for the immuniza- tion activities resulted in a net adjustment of $1,217.58 due from the revolving fund to appropriated funds at Septem- ber 30, 1976. Recommendation To provide better control and achieve a proper matching of costs and revenues, we recommend that the Office purchase through the revolving fund those types of vaccines which are given at a fee. Also, we recommend that the cost of vaccines purchased through the revolving fund and given at no charge be reimbursed to the revolving fund from appropriated funds available to the Office. The Attending Physician agreed to adopt our recommendations. Insurance receipts The Office furnishes medical transcripts and performs physical examinations for life insurance applicants. Pay- ments of $397.50 were received from life insurance companies for these services and deposited in the revolving fund during the 14-aonth audit period. As required by the Legislative Branch Appropriatior Act, 1976, we are sending copies of this report to the Speaker of the House of Representatives; the President of the Senate; the Subcommittees on the Legislative Branch, 3 B-18i.804 House end Senate Committees on Appropriations; the House Commi:tee on Government Operations; the Senate Committe on Governmental Affairs; and the Clerk of the House of Repre- sentatives. Sincerely yours, ACTING Compt eneral of the United States 4 SCHEDULE 1 SCHEDULE CONGRESS OF THE UNITED STATES OFFICE OF TEE ATTENDING PHYSICIAN REVOLVING FUND BALANCE SHEET SEPTEMBER 30, 1976 ASS2TS CURRENT SSETS: Cash in U.S. Treasury $2,615.59 Change fund 25.00 Undeposited receipts 1,000.95 inventory of drugs (note a) 259.20 Total $3,900.74 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $1,215.37 Amount due Office of Attending Physician appropriated f-nds 1,217.58 Total 2,432.95 EQUITY: Balance at beginning of period 466.42 Add: Excess of revenue over costs 1,001.37 Balance at end of period (note b) 1,467.79 Total liabilities and equity $,900.74 a/The inventory, representing undelivered customers' prescriptions, is stated at cost. b/As explained o. page 2, $1,001.37 is to be transferred to the U.S. Treasury. SCHEDULE 2 SCHEDULE 2 CONGRESS OF TE UNITED STATES OFFICE OF THE ATTENDING PHYSICIAN REVOLVING FUND STATEMENT OF OPERATIONS AUGUST 1, 1975, THROUGH SEPTEMBER 30, 976 REVENUE: Prescription drug sales $27,966.60 Immunization receipts 1,581.00 Insurance receipts 397.50 Total $29,945.10 COSTS: Prescription drugs 27,307.22 Immunization vaccines 1,636.51 Total 28,943.73 EXCESS OF REVENUE OVER COSTS $ 1,001.37 2 SCHEDULE 3 SCHEDULE 3 CONGRESS OF THE UNITED STATES OFFICE OF THE ATTENDING PHYSICIAN REVOLVING FUND STATEMENT OF CHANGES IN FINANCIAL POSITION AUGUST 1, 1975, THROUGH SEPTEMBER 30, 1976 FUNDS PROVIDED: Prescription dr sales $27,966.60 Immunization receipts 1,581.00 Insurance receipts 397.50 Total $29,945.10 FtJNDS APPLIED: Cost of prescription drugs $27,307.22 Cost of i--unization vaccines 1,636.51 Increase in working capital 1,001.37 Total $29,945.10 Analysis of Chianges in Working Cepital Increase or decrease (-) WORKING CAPITAL CHANGES: Cash $ 1,303.49 Accounts receivable -18.20 Inventory 137.40 Accounts payable 795.26 Amount due Office of Attending Physician appropriated funds -1,217.58 NET INCREASE. IN WORKING CAPITAL $ 1,001.37 3
Audit of the Office of the Attending Physician Revolving Fund: August 1, 1975, through September 30, 1976
Published by the Government Accountability Office on 1977-03-09.
Below is a raw (and likely hideous) rendition of the original report. (PDF)