Financial Audit: House Recording Studio Revolving Fund for the Periods
Ended 9/30/92 and 12/31/91 (Letter Report, 05/19/94, GAO/AIMD-94-82).
GAO audited the financial statements of the House Recording Studio
Revolving Fund for the periods ended September 30, 1992, and December
31, 1991, and the related statements of operations and cash flows. The
studio makes photographic prints, as well as radio and television tape
recordings, for Members of Congress and congressional committees. GAO
found that the financial statements were reliable in all material
respects; internal controls reasonably ensured that losses,
noncompliance with laws and regulations, and misstatements material to
the financial statements would be prevented or detected; and there was
no material noncompliance with laws and regulations.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: AIMD-94-82
TITLE: Financial Audit: House Recording Studio Revolving Fund for
the Periods Ended 9/30/92 and 12/31/91
DATE: 05/19/94
SUBJECT: Revolving funds
Accounting systems
Compliance
Internal controls
Federal fund accounts
Auditing standards
Financial records
Financial management
Legislative bodies
Financial statement audits
IDENTIFIER: House Recording Studio Revolving Fund
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Cover
================================================================ COVER
Report to the Clerk of the House of Representatives
May 1994
FINANCIAL AUDIT - HOUSE RECORDING
STUDIO REVOLVING FUND FOR THE
PERIODS ENDED 9/30/92 AND 12/31/91
GAO/AIMD-94-82
House Recording Studio Revolving Fund
Abbreviations
=============================================================== ABBREV
Letter
=============================================================== LETTER
B-114842
May 19, 1994
The Honorable Donnald K. Anderson
Clerk of the House of Representatives
Dear Mr. Anderson:
As you requested, we audited the accompanying statements of financial
position of the House of Representatives Recording Studio Revolving
Fund as of September 30, 1992 and December 31, 1991, and the related
statements of operations and cash flows for the periods then ended.
We found
the financial statements were reliable in all material respects;
internal controls in effect on September 30, 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 for
1992.
The following sections outline each conclusion in more detail and
discuss the scope of our audits.
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.
The financial statements present the activities of the House of
Representatives Recording Studio Revolving Fund and are not intended
to present the financial position and results of operations of the
House Recording Studio as a whole. Other costs, primarily salaries
and benefits, that are not financed directly by the Revolving Fund,
but which are readily identifiable, are presented in note 3.
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 September 30, 1992, provided reasonable
assurance that losses, noncompliance, or misstatements material to
the financial statements would be prevented or detected.\1
--------------------
\1 Our reports on the Fund's internal control structure and
compliance with laws and regulations for 1991 are presented in
GAO/AIMD-93-13, dated August 10, 1993.
COMPLIANCE WITH LAWS AND
REGULATIONS
------------------------------------------------------------ Letter :3
Our current year 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 which encompassed
the following areas: (1) treasury, (2) revenues, (3)
expenditures, (4) property (equipment), (5) inventory, and (6)
financial reporting; and
tested compliance with selected provisions of section 105 of the
Legislative Branch Appropriations Act, 1957, as amended (2
U.S.C. 123b), and of the rules and regulations of the Special
Committee on the House Recording Studio and of the Committee on
House Administration.
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
December 15, 1993.
Sincerely yours,
Charles A. Bowsher
Comptroller General
of the United States
FINANCIAL STATEMENTS
=========================================================== Appendix 0
Statements of Financial
Position
(See figure in printed
edition.)
Statements of Operations
(See figure in printed
edition.)
Statements 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.)