oversight

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)

                             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)

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