Financial Audit: Senate Recording Studio Revolving Fund Financial
Statements for the Year Ended March 31, 1992 (Letter Report, 08/02/94,
GAO/AIMD-94-118).

GAO audited the financial statements of the Senate Recording Studio
Revolving Fund as of March 31, 1992.  The recording studio helps
televise and record Senate floor proceedings and assists with other
activities involving Senators and committees. GAO found that the
financial statements were reliable in all material respects; internal
controls reasonably ensure that losses, noncompliance with laws and
regulations, and misstatements affecting the financial statements would
be prevented or detected; and there was no material noncompliance with
laws and regulations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-118
     TITLE:  Financial Audit: Senate Recording Studio Revolving Fund 
             Financial Statements for the Year Ended March 31, 1992
      DATE:  08/02/94
   SUBJECT:  Accounting procedures
             Auditing standards
             Financial statement audits
             Revolving funds
             Legislative bodies
             Internal controls
             Compliance
             Funds management
             Financial management
             Fund audits
IDENTIFIER:  Senate Recording and Photographic Studios Revolving Fund
             
**************************************************************************
* This file contains an ASCII representation of the text of a GAO        *
* report.  Delineations within the text indicating chapter titles,       *
* headings, and bullets are preserved.  Major divisions and subdivisions *
* of the text, such as Chapters, Sections, and Appendixes, are           *
* identified by double and single lines.  The numbers on the right end   *
* of these lines indicate the position of each of the subsections in the *
* document outline.  These numbers do NOT correspond with the page       *
* numbers of the printed product.                                        *
*                                                                        *
* No attempt has been made to display graphic images, although figure    *
* captions are reproduced. Tables are included, but may not resemble     *
* those in the printed version.                                          *
*                                                                        *
* A printed copy of this report may be obtained from the GAO Document    *
* Distribution Facility by calling (202) 512-6000, by faxing your        *
* request to (301) 258-4066, or by writing to P.O. Box 6015,             *
* Gaithersburg, MD 20884-6015. We are unable to accept electronic orders *
* for printed documents at this time.                                    *
**************************************************************************


Cover
================================================================ COVER


Report to the Sergeant at Arms
U.S.  Senate

August 1994

FINANCIAL AUDIT - SENATE RECORDING
STUDIO REVOLVING FUND FINANCIAL
STATEMENTS FOR THE YEAR ENDED
MARCH 31, 1992

GAO/AIMD-94-118

Senate Recording Studio


Abbreviations
=============================================================== ABBREV


Letter
=============================================================== LETTER


B-199745

August 2, 1994

The Honorable Robert Benoit
Sergeant at Arms
United States Senate

Dear Mr.  Benoit: 

As your predecessor requested, we audited the accompanying statements
of financial position of the Senate Recording Studio Revolving Fund
as of March 31, 1992, and the related statements of operations and
cash flows for the year then ended.  We found

  the financial statements were reliable in all material respects;

  internal controls in effect on March 31, 1992, provided reasonable
     assurance that losses, noncompliance with laws and regulations,
     and misstatements material to the financial statements would be
     prevented or detected; and

  no material noncompliance with laws and regulations we tested. 

The following sections outline each conclusion in more detail and
discuss the scope of our audit. 


   OPINION ON FINANCIAL STATEMENTS
------------------------------------------------------------ Letter :1

The financial statements and accompanying notes present fairly, in
conformity with generally accepted accounting principles, the Fund's

  assets, liabilities, and government equity;

  revenues and expenses; and

  cash flows. 

As discussed in note 3, the financial statements present the results
of activities financed through the Senate Recording Studio Revolving
Fund, and are not intended to represent the financial position and
results of operations of the Senate Recording Studio as a whole. 
Other readily identifiable costs, such as employee salaries and
benefits, which are financed by other appropriated funds, are not
included on the financial statements, but are disclosed in note 3. 
Also, the statements do not include such costs as space and
utilities, which are not readily identifiable. 


   OPINION ON INTERNAL CONTROLS
------------------------------------------------------------ Letter :2

The internal controls we evaluated were those designed to

  safeguard assets against loss from unauthorized use or disposition;

  assure the execution of transactions in accordance with laws and
     regulations; and

  properly record, process, and summarize transactions to permit the
     preparation of financial statements and to maintain
     accountability for assets. 

Those controls in effect on March 31, 1992, provided reasonable
assurance that losses, noncompliance, or misstatements material to
the financial statements would be prevented or detected. 


   COMPLIANCE WITH LAWS AND
   REGULATIONS
------------------------------------------------------------ Letter :3

Our audit tests for compliance with selected provisions of laws and
regulations disclosed no material instances of noncompliance.  Also,
nothing came to our attention in the course of our other work to
indicate that material noncompliance with such provisions occurred. 


   OBJECTIVES, SCOPE, AND
   METHODOLOGY
------------------------------------------------------------ Letter :4

Studio management is responsible for

  preparing annual financial statements in conformity with generally
     accepted accounting principles,

  establishing and maintaining internal controls to provide
     reasonable assurance that the internal control objectives
     mentioned above are met, and

  complying with applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether
(1) the financial statements are reliable (free of material
misstatement and presented fairly in conformity with generally
accepted accounting principles) and (2) relevant internal controls
are in place and operating effectively.  We are also responsible for
testing compliance with selected provisions of laws and regulations. 

In order to fulfill these responsibilities, we

  examined, on a test basis, evidence supporting the amounts and
     disclosures in the financial statements;

  assessed the accounting principles used and significant estimates
     made by management;

  evaluated the overall presentation of the financial statements;

  evaluated and tested relevant internal controls, including those
     over treasury, revenues, expenditures, property (equipment), and
     financial reporting; and

  tested compliance with selected provisions of 2 U.S.C.  123b and
     123b-1 and the Department of the Treasury regulations on cash. 

We limited our work to accounting and other controls necessary to
achieve the objectives outlined in our opinion on internal controls. 
Because of inherent limitations in any system of internal control,
losses, noncompliance, or misstatements may nevertheless occur and
not be detected.  We also caution that projecting our evaluation to
future periods is subject to the risk that controls may become
inadequate because of changes in conditions or that the degree of
compliance with controls may deteriorate. 

We performed our work in accordance with generally accepted
government auditing standards.  We completed our audit work on March
31, 1994. 

Sincerely yours, Charles A.  Bowsher
Comptroller General
of the United States


FINANCIAL STATEMENTS
============================================================ Chapter 0

   Balance Sheet

   (See figure in printed
   edition.)

   Statement of Operations

   (See figure in printed
   edition.)

   Statement of Cash Flows

   (See figure in printed
   edition.)

   Notes to Financial Statements

   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)

