Legislative Service Organizations: Proposed Accounting Standards and
Guidelines (Letter Report, 12/16/93, GAO/AIMD-94-49).

This report explains GAO's proposed accounting standards and guidelines
for legislative service organizations (LSO), which range from the Arts
and Automotive Congressional Caucuses to the Democratic and Republican
study groups.  GAO believes that the LSOs should report their financial
operations on the accrual, rather than the cash, basis of accounting.
Under the accrual basis, revenues are recognized when earned and
expenses are recognized when incurred.  Financial statements should
disclose matters affecting the statements' use, understanding, and
interpretation. The Committee on House Administration has adopted
regulations specifically for LSOs, including provisions that allow LSOs
to carry over unexpended funds to following years.  LSOs can use their
financial statements to increase awareness of the House regulations
governing their operations, as well as exceptions to the regulations
granted by the House Committee on Administration.  In addition, related
party transactions and the nature of certain common control
relationships should be disclosed if the nature of those relationships
could significantly affect an organization.  At least three LSOs, for
example, share their executive directors with outside groups, while
another LSO shares its staff printer with an outside organization.

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

 REPORTNUM:  AIMD-94-49
     TITLE:  Legislative Service Organizations: Proposed Accounting 
             Standards and Guidelines
      DATE:  12/16/93
   SUBJECT:  Auditing procedures
             Legislative bodies
             Financial disclosure reporting
             Financial records
             Accounting procedures
             Auditing standards
             Audit oversight
             Reporting requirements
             Accrual basis accounting

             
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