oversight

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)

                          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




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