DCCU6SANT EESOUE 04569 - [B0044938] Audit of the Office of the Attending Physician Revolving Fund, Fiscal Year 1977. GGD-78-31; B-181604. December 29, 1977. 3 pp. + 3 enclosures (3 pp,). Report to the Congrees; by Rotket F. Keller, Acting Comptroller General. issue Area: Accounting and Financial Reporting ~2800). Contact: General Govertcent Div. Budget Function: General Government.: Legislative Functions (801). organization Concerned: Congress: Office of the Attending Physician. Congressional Relevance: House Committee ca House Administration; Senate Coswittee on Rules and Administration; Congress. Authority: Legislative branch Appropriation Act [of] 1976 (89 Stat. 283). The financial transactions of the Office of the Attending Physician Revolving . Jnd for fiscal year 1977 were audited in accordance with generally accepted auditing standards. Financial statements for ths revolving fund were prepared from records furnished by the fund. Shese statee*-ts not include certain exrenses such as labor, syringes, aud cthezdo rupplies incurzed in revolving fund operations and paid fer with appropriated funds. FindiPgs/Conclusiots; The purchase and resale of prescriFtion drugs make up the sa$jrity of the funds' receipts and disburresents. Authorizinq legislation requires ,11 soleys received from the sale of drugs or other sources to be deposited by the Office in the revolting fund and permits disbursements from the fund for the purchase of lrugs for resale. After restoring any impairaent of capital, the fund's ntt income is required to be transferred tn the general fund of the U.S. Treasury. The net income to be transferred to the Treasury for fiscal year 1977 is $1,406.06. (RRS) c0 REPORT TO THE CONGRESS zo*~ m BY THE COMPTROLLER GENERAL 1, ~.~ OF THE UNITED STATES Audit Of The Office Of The Attending Physician Revolving Fund--Fiscal Year 1977 Congress of the United States GGOD78-31 DECEMBER 29, 1977 COMPITROILLIR CLI[NRAL OF THE UNITED rTATZ WA4INGTW. D.C. W q-181804 To the President tf the Senete and the Speaker of the House of Representatives Pursuant to the Legisla-ive Dranch Appropriation Act, 1976 (89 Stat. 28?,), we audited the financial transactions of the Office of the Attending Physician r.evolving Fund for fiscal year 1977. SCOPE OF AUDIT Our audit was made in accordance with generally ac- -epted auditing stan5ards and included an examination of the accounting reco ds and such other auditing procedures as we considered necessary. OPINION ON FINANCIAL STATEMENTS We prepared the financial statements for the revolving fund from records £furnished us. We adjusted the records, which were maintained on a cash basis, to present the finan- cial position and results of the revolving fund operations on an accrual basis. These statements do not include cer- tain expenses--such as labor, syringes, and other supplies-- incurred in revolving fund operations and paid for with ap- propriated funds. In our opinion, the accompanying statements (schs. 1, 2, and 3), prepared on a basis consistent with that of the preceding period and in accordance with the financial ar- rangements described above, present fairly the financial position of the Office of the Attending Physician Revolving Fund at September 30, 1977 and 1976, the res,.lts of its operations, anu the changes in its financial position for the periods then erded. GENERAL COMMENTS The Office of the Attending Physician was established in 1928 to serve the medical needs of the Members of Con- gress. The Office of the Attending Physician Revolving Fund--established by the Legislative Branch Appropriation Act, 1976--became effective August 1, 1975. It was capi- talized through a transfer of the balance in the OffLce of the Attending Phvsician suspense dccount maintained by the Clerk of the Ho- - of RepresenLatives. B-181804 The act requires all moneys recei-ve from the sale of drugs or any other source to be deposited by the Office in the revolving fund, and permits disbursements to be made from the fund for the pur:hase of drugs for resale. After restoring any impairment of capital, the fund's net income, as established by oor annual audit, is required to be transferred to the general fuid of the U.S. Treasury. The net income to Le transferred to the Treasury for fiscal year 1977 is $1,406.06. (See sch. 2.) REVOLVING FUND ACTIVITIES Prescription drug sales The purchase and resale of prescription drugs make up the majority of the fund's receipts and disbursements. The Office purchases wholesale drugs and resells them for cash to Members' tamilies and congressional employees. The price charged is unit cost rounded upward to the nearest nickel. The Office receives a 2-percent cash discount from its wholesaler for prompt payment. During the fiscal year prescription drug sales amounted to $26,171.56. Immunization receipts The Office charges a $1 fee for gamma globulin, polio, and certain influenza immunizations given to congressional employees. At the direction of the Attending Physician, these vaccines are provided free to Members and officials of the Congress. During the fiscal year immunization receipts totaled $1,805. In our previous report on the Office's revolving fund (GGD-77-29, Mar, 9, 1977), we recommended that the Office purchase through the fund those types of vaccines which are given at a fee. During fiscal year 1977, the gamma globulin and polio vaccines given at a fee were purchased from the revolving fund and included in the financial statements. (See schs. 1, 2, and 3.) The Office also purchased the in- fluenza vaccine, which will be administered during fiscal year 1978, through the revolving fund. The influenza vaccine, which was administered during fiscal year 1977, was purchased with appropriated funds prior to the issuance of our March 1977 report. Our review of the costs and revenues for the revolving fund's activi- ties resulted in a net adjustment of $1,373.08 due from the revolving fund to appropriated funds at September 30, 1977. 2 B-181804 Insurance receipts The Office furnishes medical transcripts and performs physical examinations for life insurance applicants. ments of $244 were received from life insurance Pay- companies for these services and deposited in the revolving fund dur- ing the fiscal year. As required by the Legislative Branch Appropriation Act, 1976, we are sending copies of this report to the Sub- committees on the Legislative Branch, House and mittees on Appropriations; the House Committee Senate Com- Operations; the Senate Committee on Governmentalon Government the Clerk of the House of Representatives. Affairs; and Comptroller General of the United States 3 SCHEDULE 1 SCHEDULE 1 CONGRESS OF ' UNITED STATES OFFICE OF THE ATTENDING PHYSICIAN REVOLVING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1977 AND 1976 ASSETS 1977 1976 CURRENT ASSETS: Cash in U.S. Treasury $2,867.60 $2,615.59 Change fund Undepositad receipts 25.C) 25.00 Accounts receivable 614.70 1,000.95 Inventory of drugs (note a) 35.45 - Inventory of vaccines (note b) 140.00 259.20 1,407.46 Total $5 090.21 $3.900.74 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $1,844.65 $1,215.37 Amount due Office of Attending Physician appropriated funds 1.373.08 1,217.58 Total 3,217.73 2,432.95 EQUITY: Balance at beginning of period 1,467.79 466.42 Less: Amount transferred to U.S. Treasury 1;001.37 466.42 466.42 Add: Excess of revenue over costs 1.406.06 1,001.37 Balance at end of period i/1.872.48 1.467.79 Total liabilities and equity $5.090.21 $3,900.74 a/Undelivered customers' prescriptions, stated at cost. /Vaccines are stated at cost, using the first-in first-out method of valuation. c/As explained on p. 2 of the letter, $1,406.06 is to be transferred to the U.S. Treasury. SCHEDULE 2 SCHEDULE 2 CONGRESS OF THE UNITED STATES OFFICE OF THE ATTENDING PHYSICIAN REVOLVING FUND COMPARATIVE STATEMENT OF. OPERATIONS FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 1977 AND THE 14-MDNTH PERIOD ENDED SEPTEMBER 30. 1976 Period ended FY September 30, 1977 1976 REVENUE: Prescription drug sales $26,171.56 $27,966.60 Immunization receipts 1,805.00 1,581.00 Insurance receipts 244.00 397.50 Total revenue 28,220.56 29.945410 COSTS: Prescription drugs 25,560.15 27,307.22 Immunization vaccines 1,254.35 1,636.51 Total rosts 26,814.50 28,943.73 EXCESS OF REVENUE OVER COSTS $ 1,406.06 $_1001.37 SCHEDULE 3 SCHEDULE 3 CONGRESS OF THE UNITED STATES OFFICE OF THE ATTENDING PHYSICIAN REVOLVING FUND COMPAkATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30. !977 AND THE 14-MONTP. PERIOD ENDED SEPTEMBER 30. 1976 Period ended FY September 30, 1977 1976 FUNDS PROVIDED: Prescription drug sales $26,171.56 $27,966.60 Immunization receipt- 1,805.00 1,581.00 Insurance receipts 244.00 397.50 Total $28,220.56 $29.945.10 FUNDS APPLIED: Cost of prescription drugs $25,560.15 $27,307.22 Cost of immunization vaccines 1,254.35 1,636.51 Increase in working capital 404.69 1,001.3i Amount transferred to U.S. Treasury 1.001.37 - Total $28,220.56 $29.945.10 ANALYSIS OF CHANGES IN WORKING CAPITAL Increase or Increase or decrease (-) decrease (-) WORKING CAPITAL CHANGES: Cash's $ -134.24 $ 1,303.49 Accounts receivable 35.45 -18.20 Inventory 1,288.26 137.40 Accounts payable -629.28 796.26 Amount due Office of Attending Physician fpproriated funds -155.50 -1.217.58 NET INCREASE IN WORKING CAPITAL $ 404,69 $ 1.001.37 (41051) 3
Audit of the Office of the Attending Physician Revolving Fund, Fiscal Year 1977
Published by the Government Accountability Office on 1977-12-29.
Below is a raw (and likely hideous) rendition of the original report. (PDF)