Applying Agreed-Upon Procedures: House Interparliamentary Groups
(14-AUG-01, GAO-01-1034R).
To assist the Committee on International Relations evaluate the
extent to which five House Interparliamentary Groups' schedules
of receipts, disbursements, and fund balance for 2000 and 1999
appropriately reflected the cash receipts and disbursements and
fund balance for those years, GAO reviewed documentation
supporting each group's recorded receipt and disbursement
transactions and related fund balances for evidence that the
transactions were properly authorized and recorded. The
schedules, prepared by the treasurer of each group, present for
2000 and 1999 the opening fund balance, total receipts, and
disbursements by category, and ending fund balance, on a cash
basis, for each of the five groups. GAO also recalculated and
compared the recalculated amounts to the reported amounts in each
group's 2000 and 1999 schedule.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-01-1034R
ACCNO: A01606
TITLE: Applying Agreed-Upon Procedures: House Interparliamentary
Groups
DATE: 08/14/2001
SUBJECT: Accounting procedures
Accounting standards
Cash basis accounting
Financial records
Funds management
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GAO-01-1034R
GAO- 01- 1034R Interparliamentary Groups
United States General Accounting Office Washington, DC 20548
August 14, 2001 The Honorable Henry J. Hyde Chairman Committee on
International Relations House of Representatives
Subject: Applying Agreed- Upon Procedures: House Interparliamentary Groups
Dear Mr. Chairman: We have performed the procedures you requested to assist
the Committee in evaluating the extent to which five House
Interparliamentary Groups? Schedules of Receipts, Disbursements, and Fund
Balance for the years ended December 31, 2000 and 1999, appropriately
reflect the cash receipts and disbursements and fund balance for the years
then ended. The schedules, prepared by the treasurer of each group, present
for the years ended December 31, 2000 and 1999, the opening fund balance,
total receipts and disbursements by category, and ending fund balance, on a
cash basis, for each of the following groups:
! British- American Parliamentary Group,
! Canada- United States Interparliamentary Group,
! Mexico- United States Interparliamentary Group,
! Transatlantic Legislators' Dialogue (formerly the United States- European
Community Interparliamentary Group), and
! The United States Group of the NATO Parliamentary Assembly (formerly the
United States Group of the North Atlantic Assembly).
In summary, the procedures you asked us to perform included reviewing
documentation supporting each group?s recorded receipt and disbursement
transactions and related fund balance for evidence that the transactions
were properly authorized and recorded. We also recalculated the reported
amounts using each group?s general journal and supporting documents and
compared the recalculated amounts to the reported amounts in each group?s
2000 and 1999 schedule. The individual agreed- upon procedures along with
our results are presented in enclosure I. The unaudited 2000 and 1999
schedules for each of the five Interparliamentary Groups are presented in
enclosure II.
By specifying the procedures, your office was responsible for ensuring that
the procedures were sufficient to meet your objectives, and we make no
representations in that respect. In performing the agreed- upon procedures,
we conducted our work in accordance with U. S. generally accepted government
auditing standards, which
GAO- 01- 1034R Interparliamentary Groups Page 2 incorporate applicable
standards for attestation engagements established by the
American Institute of Certified Public Accountants. These attestation
standards provide guidance for performing and reporting the results of
agreed- upon procedures. In agreeing to perform the procedures you
requested, we discussed this guidance and the related limitations on the
nature, scope, and intended use of our work with your Committee staff. Since
we were not asked to, and did not perform, an examination, the objective of
which would be to express an opinion, we do not express an opinion on the
schedules. We began our work on June 25, 2001, and completed our work on
July 13, 2001.
We provided a draft of this letter, along with its enclosures, to your staff
for review and comment. Your staff agreed with the contents of this letter
and the enclosures. This letter is intended for the use of the House
Committee on International Relations and is not intended to be, and should
not be, used by those who have not agreed to the procedures or taken
responsibility for their sufficiency. However, this letter is a matter of
public record and its distribution is not limited. We are sending copies of
this letter to the Chairmen of the individual House Interparliamentary
Groups and the Ranking Minority Member of the House Committee on
International Relations. This letter will also be available on GAO?s home
page at http:// www. gao. gov. If you have any questions concerning our work
or the results of the agreed- upon procedures, please contact me on (202)
512- 2600 or Jeanette Franzel, Acting Director, on (202) 512- 9406.
Sincerely yours, Jeffrey C. Steinhoff Managing Director Financial Management
and Assurance
Enclosures
Enclosure I GAO- 01- 1034R Interparliamentary Groups Page 3
Agreed- Upon Procedures and Related Results
Receipts Procedures 1. Compare the amount of the appropriation recorded in
the general journal as
received for calendar years 2000 and 1999 to evidence of the amount of the
appropriation requested and related deposits shown on the bank statements.
2. Compare the interest recorded in the general journal as received for
calendar years 2000 and 1999 to the interest credited on each group?s 2000
and 1999 bank statements.
3. Compare the other receipts recorded in the general journal as received
for calendar years 2000 and 1999 to deposit slips, bank statements, and/ or
other documentation evidencing other receipts.
Results For each group, the annual appropriation, interest, and other
receipts recorded in the general journal agreed with and were supported by
appropriate documentation.
Disbursements Procedures For each disbursement for calendar years 2000 and
1999, record the category of the disbursement on the GAO- prepared schedule,
and
1. compare the voucher amount to the amount disbursed per the general
journal; 2. compare the payee on the voucher to the supporting documents; 3.
examine each voucher and supporting documents for evidence that the
designated official certified (signed) that the goods and/ or services were
received and the voucher was approved (signed) by the authorizing official
before it was submitted for payment;
4. examine each canceled check to determine that the check was signed by the
designated official and endorsed by the payee;
5. examine the disbursement entry in the general journal to determine
whether the journal entry included the date of the check, the payee, the
check number, the amount, and the description of the type or category of
goods or services provided; and
6. examine the check register and subsequent bank statements to determine if
a check was recorded, issued, and paid for each payment voucher.
Enclosure I GAO- 01- 1034R Interparliamentary Groups Page 4 Results
For each voucher, 1. The amount agreed with the amount recorded as disbursed
in the general journal. 2. The payee named agreed with the supporting
documents. 3. The designated official certified (signed) that the goods and/
or services were
received and the authorizing official approved (signed) each voucher before
it was submitted for payment.
4. In examining each canceled check to determine that the check was signed
by the designated official and endorsed by the payee, we found one check on
which the payee did not match the endorsee on the check. A check disbursed
for the Mexico- United States Group in 2000 was endorsed by someone other
than the payee on the voucher and check. We inquired at the payee?s office
and were told that the endorsee was authorized to sign for the payee.
5. In examining the disbursement entry in the general journal to determine
whether the journal entry included the date of the check, the payee, the
check number, the amount, and the description of the type or category of
goods or services provided, we found that each group?s journal entries
contained the required information with three exceptions.
! One transaction in 2000 for Transatlantic Legislators' Dialogue was
entered into the general journal using the date the voucher was prepared
instead of using the date on the check.
! One general journal entry in 2000 for Transatlantic Legislators' Dialogue
did not contain the description of the transaction. The related supporting
documents did provide a description of the type of payment.
! For 2000 and 1999, the NATO Parliamentary Assembly Group treasurer did not
enter the date when recording every disbursement. According to the group?s
treasurer, she only dated the first disbursement recorded for a day and all
other transactions recorded on the same date were left undated.
6. Finally, we found that a check was recorded, issued, and paid for every
payment voucher generated by each group in 2000 and 1999.
Overall Procedures 1. Using the amounts recorded in the general journal for
2000 and 1999, recalculate
the total receipts for each year by category (appropriations, interest, and
other) and total disbursements for the year by category (representational
functions, interpreters/ translation, travel, lodging/ per diem, transfers
to U. S. Treasury, and miscellaneous). Trace the recalculated amounts to the
amounts in the 2000 and 1999 Schedules of Receipts, Disbursements, and Fund
Balance.
Enclosure I GAO- 01- 1034R Interparliamentary Groups Page 5 2. Trace the
opening fund balances recorded in the general journals for 2000 and
1999 to the ending balances recorded in the prior year?s journals. Trace
both opening and ending fund balances for 2000 and 1999 in the general
journals to the bank statements and the Schedules of Receipts,
Disbursements, and Fund Balance for 2000 and 1999. Recalculate each group?s
ending balance for 2000 and 1999 by adding all receipts posted to its
journal to the opening balances recorded in the journal for 2000 and 1999,
and subtracting all disbursements and other charges recorded in the journal
for 2000 and 1999.
3. Review the reconciliation for each group?s 2000 and 1999 year- end bank
statements and related reconciling items. Review subsequent bank statements
for evidence that the reconciling items were posted as provided for in the
reconciliation.
4. With respect to each procedure, obtain an explanation for any differences
between amounts recorded in the general journal, the bank statements, and
the Schedules of Receipts, Disbursements, and Fund Balance.
Results 1. The recalculated amounts of total receipts and disbursements by
category as
recorded in the general journal agreed with the amounts in the 2000 and 1999
Schedule of Receipts, Disbursements, and Fund Balance for all groups. We
traced the recalculated amounts to the 2000 and 1999 Schedule of Receipts,
Disbursements, and Fund Balance for each group.
2. The opening fund balances for 2000 and 1999, as recorded in each group?s
general journal, agreed with the ending balances from the prior year?s
workpapers for four out of the five groups. The treasurer for the British-
American Group did not carry forward the ending balance from the prior year
in the general journal to the opening balance for 2000 and 1999. However, we
confirmed that the numerical accounting of disbursements and receipts were
correctly calculated, as if the opening balance had been stated.
3. The opening and ending fund balances for 2000 and 1999 in each group?s
general journal and related bank statements agreed with the opening and
ending fund balances in each group?s Schedule of Receipts, Disbursements,
and Fund Balance for 2000 and 1999 except as noted above.
! The recalculated ending balances agreed with the ending balances, as
reported for all groups, in their 2000 and 1999 Schedules of Receipts,
Disbursements, and Fund Balance.
! For each group, the subsequent month's bank statements evidenced that all
outstanding items identified during the year- end bank reconciliation were
later posted to the account.
Enclosure I GAO- 01- 1034R Interparliamentary Groups Page 6 4. We obtained a
satisfactory explanation for any identified differences in amounts
recorded in the general journals, the bank statements, and the Schedules of
Receipts, Disbursements, and Fund Balance.
Enclosure II GAO- 01- 1034R Interparliamentary Groups Page 7
Schedules for the Interparliamentary Groups (Unaudited)
British- American Interparliamentary Group
For the year ended December 31, 2000 1999
Beginning fund balance 2 $158,179.36 $133,980.28 Receipts:
Appropriation 25,000.00 $ $25,000.00 Interest 1,722.16 1,506.08 Total
receipts $26,722.16 $26,506.08
Disbursements: Travel 0.00 $2,307.00 Transfers to U.S. Treasury 3 3,849.18
0.00
Total disbursements $3,849.18 $2,307.00 Ending fund balance 4 $181,052.34
$158,179.36
House of Representatives British-American Parliamentary Group Schedule of
Receipts, Disbursements, and Fund Balance 1
(Unaudited)
1 The Schedule of Receipts, Disbursements, and Fund Balance is prepared on a
cash basis. 2 Beginning Fund Balance represents the balance at January 1,
1999 and 2000 of interparliamentary group funds carried over from the prior
period.
3 Transfers represent disbursements by the Group to the U.S. Treasury
pursuant to Section 502(b) of Title V of Public Law 103-236 (108 Stat. 462).
Under this provision, interest earned from funds provided to the Group
pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat.
1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts
shall be periodically deposited in a miscellaneous account of the Treasury.
4 Ending Fund Balance represents the fund balance remaining at December 31,
1999 and 2000 and available for use in a subsequent period.
Enclosure II GAO- 01- 1034R Interparliamentary Groups Page 8 Canada- United
States Interparliamentary Group
For the year ended December 31, 2000 1999
Beginning fund balance 2 $48,955.81 $71,503.98 Receipts:
Appropriation $35,000.00 $35,000.00 Interest 293.39 751.93 Other 3 2,156.00
0.00
Total receipts $37,449.39 $35,751.93
Disbursements: Representational functions 4 $37,151.00 $45,341.23 Travel
0.00 2,568.46 Lodging/per diem 9,900.00 10,390.41 Transfers to U.S. Treasury
5 2,490.66 0.00
Miscellaneous 575.91 0.00
Total disbursements $50,117.57 $58,300.10 Ending fund balance 6 $36,287.63
$48,955.81
House of Representatives Canada-United States Interparliamentary Group
Schedule of Receipts, Disbursements, and Fund Balance 1
(Unaudited)
5 Transfers represent disbursements by the Group to the U.S. Treasury
pursuant to Section 502(b) of Title V of Public Law 103-236 (108 Stat. 462).
Under this provision, interest earned from funds provided to the Group
pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat.
1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts
shall be periodically deposited in a miscellaneous account of the Treasury.
6 Ending fund balance represents the fund balance remaining at December 31,
2000 and 1999 and available for use in a subsequent period. 1 The Schedule
of Receipts, Disbursements, and Fund Balance is prepared on a cash basis.
2 Beginning Fund Balance represents the balance at January 1, 2000 and 1999
of interparliamentary group funds carried over from the prior period.
3 Other receipts consist of amounts repaid by congressional members/staff
for expenses related to activities of interparliamentary groups which were
initially paid out of annual appropriations provided to fund the group:
including reimbursement from Representatives Upton, Gilman, English,
Houghton and Payne for official expenses incurred in 1999 and 2000.
4 Representational functions include the costs associated with holding the
interparliamentary groups? annual conferences. These costs include expenses
for supplies, gift items, ground transportation, official delegation group
meals, and meeting room costs.
Enclosure II GAO- 01- 1034R Interparliamentary Groups Page 9 Mexico- United
States Interparliamentary Group
For the year ended December 31, 2000 1999
Beginning fund balance 2 $107,966.33 $132,548.62 Receipts:
Appropriation $40,000.00 $40,000.00 Interest 1,184.68 1,259.67 Other 3
16,492.29 123.00
Total receipts $57,676.97 $41,382.67
Disbursements: Representational functions 4 $20,149.56 $57,049.03
Interpreters/translation 6,594.09 1,079.88 Travel 4,687.62 998.00
Lodging/per diem 6,964.27 6,204.84 Transfers to U.S. Treasury 5 3,609.62
0.00 Miscellaneous 586.09 633.21
Total disbursements $42,591.25 $65,964.96 Ending fund balance 6 $123,052.05
$107,966.33
House of Representatives Mexico-United States Interparliamentary Group
Schedule of Receipts, Disbursements, and Fund Balance 1
(Unaudited)
5 Transfers represent disbursements by the Group to the U.S. Treasury
pursuant to Section 502(b) of Title V of Public Law 103-236 (108 Stat. 462).
Under this provision, interest earned from funds provided to the Group
pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat.
1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts
shall be periodically deposited in a miscellaneous account of the Treasury.
6 Ending fund balance represents the fund balance remaining at December 31,
1999 and 2000, and available for use in a subsequent period.
1 The Schedule of Receipts, Disbursements, and Fund Balance is prepared on a
cash basis. 2 Beginning Fund Balance represents the balance at January 1,
1999 and 2000 of interparliamentary group funds carried over from the prior
period.
3 Other receipts consist of unused funds repaid by congressional staff for
advance travel expenses; reimbursement from the Department of State for
official per diem expenses incurred by three Members not part of the
official Speaker appointed delegation; and also reimbursement from the
Senate for shared expenses paid by the House. 4 Representational functions
include the costs associated with holding the interparliamentary groups?
annual conferences. These costs include expenses for supplies, gift items,
ground transportation, official delegation group meals, and meeting room
costs.
Enclosure II GAO- 01- 1034R Interparliamentary Groups Page 10 Transatlantic
Legislators? Dialogue
For the year ended December 31, 2000 1999
Beginning fund balance 2 $130,944.60 $82,719.10 Receipts:
Appropriation $50,000.00 $50,000.00 Interest 1,501.52 1,082.85 Total
receipts $51,501.52 $51,082.85
Disbursements: Representational functions 3 $20,196.49 $2,319.35
Interpreters/translation 2,920.00 0.00 Travel 0.00 460.00 Lodging/per diem
0.00 0.00
Miscellaneous 4 3,475.67 78.00 Total disbursements $26,592.16 $2,857.35
Ending fund balance 5 $155,853.96 $130,944.60
5 Ending fund balance represents the fund balance remaining on December 31,
1999 and December 31, 2000 and available for use in subsequent periods. 1
The schedule of Receipts, Disbursements, and Fund Balance is prepared on a
cash basis.
2 Beginning Fund Balance represents the balance at January 1, 1999 and
January 1, 2000 of the Transatlantic Legislators? Dialogue funds carried
over from the prior period. 3 Representational Functions include the costs
associated with holding the annual conferences. These costs include expenses
for supplies, gift items, ground transportation, official delegation group
meals, and control room costs.
4 Transfers represent disbursements by the Dialogue to the U.S. Treasury
pursuant to Section 502(b) of Title V of Public Law 103-236 (108 Stat. 462).
Under this provision, interest earned from funds provided to the Dialogue
pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat.
1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts
shall be periodically deposited in a miscellaneous account of the Treasury.
Figure for 2000 includes interest payback to U.S. Government for the period
January 1998-December 1999.
House of Representatives Transatlantic Legislators? Dialogue (Formerly the
U.S. - European Community Interparliamentary Group)
Schedule of Receipts, Disbursements, and Fund Balance 1
Enclosure II GAO- 01- 1034R Interparliamentary Groups Page 11 United States
Group of the NATO Parliamentary Assembly
(194049)
For the year ended December 31, 2000 1999
Beginning fund balance 2 $150,272.78 $166,696.00 Receipts:
Appropriation $50,000.00 $50,000.00 Interest 1,613.80 1,538.41 Other 3 0.00
2,948.28 Total receipts $51,613.80 $54,486.69
Disbursements: Representational Functions 4 $19,939.83 $18,698.45
Interpreters/Translation 0.00 0.00 Travel 9,172.94 47,387.71 Lodging/per
diem 1,959.39 800.00 Repayment of Earned Interest 4,679.90 0.00
Miscellaneous 2,202.93 4,023.75 Total disbursements $37,954.99 $70,909.91
Ending fund balance 5 $163,931.59 $150,272.78
House of Representatives United States Group of the NATO Parliamentary
Assembly Schedule of Receipts, Disbursements and Fund Balance 1
(Unaudited)
5 Ending fund balance represents the final balance remaining at December 31,
2000 and 1999 and available for use in a subsequent period.
1 The Schedule of Receipts, Disbursements and Fund Balance is prepared on a
cash basis. 2 Beginning Fund Balance represents the balance at January 1,
2000 and 1999 of interparliamentary group funds carried over from the prior
period.
3 Other receipts represent the refund to the fund of unused plane fare for
congressional members who were to have attended a conference held in
November, 1998.
4 Representational Functions include the costs associated with holding each
of the interparliamentary groups? annual conferences, such as supplies, gift
items, ground transportation, official delegation group meals, and control
rooms.
*** End of document. ***