Financial Audit: Senate Restaurants Revolving Fund for Fiscal
Years 2001 and 2000 (15-MAR-02, GAO-02-461).
GAO contracted with Clifton Gunderson LLP to audit the financial
statements of the Senate Restaurants Revolving Fund for fiscal
years 2001 and 2000. Clifton Gunderson LLP found that (1) the
financial statements were fairly presented in conformity with
U.S. generally accepted accounting principles, (2) the fund
maintained effective internal control over financial reporting
and compliance with laws and regulations, and (3) there was no
reportable noncompliance with selected provisions of the laws and
regulations it tested.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-02-461
ACCNO: A02859
TITLE: Financial Audit: Senate Restaurants Revolving Fund for
Fiscal Years 2001 and 2000
DATE: 03/15/2002
SUBJECT: Accounting procedures
Auditing standards
Dining facilities
Financial statement audits
Fund audits
Internal controls
Revolving funds
Senate Restaurant Revolving Fund
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO 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. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-02-461
United States General Accounting Office
GAO Report to the Chairman, Committee on Rules and Administration, U. S.
Senate, and the Architect of the Capitol
March 2002
FINANCIAL AUDIT
Senate Restaurants Revolving Fund for Fiscal Years 2001 and 2000
a
GAO-02-461
Contents
Letter 1
Appendix
Appendix I: Report on Audit of the U.S. Senate Restaurants Revolving
Fund 4
Independent Auditor's Report 4
Balance Sheets 7
Statements of Operations and Changes in U.S. Government Equity
(Deficit) 8
Statements of Cash Flows 9
Notes to Financial Statements 10
Page i GAO-02-461 Senate Restaurants Page ii GAO-02-461 Senate Restaurants
A
United States General Accounting Office Washington, D.C. 20548
March 15, 2002
The Honorable Christopher J. Dodd Chairman, Committee on Rules and
Administration United States Senate
The Honorable Alan M. Hantman Architect of the Capitol
As you requested, we provided for audits of the financial statements of the
U.S. Senate Restaurants Revolving Fund (the Fund) for the fiscal years ended
September 30, 2001, and 2000 by contracting with independent public
accounting firms.1 The contracts required that the audits be done in
accordance with U.S. generally accepted government auditing standards and
the joint GAO/PCIE2 Financial Audit Manual.
In its fiscal year 2001 audit of the Fund, Clifton Gunderson LLP found the
following:
* The financial statements were presented fairly, in all material respects,
in conformity with U.S. generally accepted accounting principles.
* The Fund maintained effective internal control over financial reporting
(including safeguarding assets) and compliance with laws and regulations.
* There was no reportable noncompliance with selected provisions of laws and
regulations it tested.
1Clifton Gunderson LLP audited the financial statements of the Fund as of
September 30, 2001, and KPMG Peat Marwick LLP audited the financial
statements of the Fund as of September 30, 2000. KPMG Peat Marwick LLP
expressed an unqualified opinion on the Fund's fiscal year 2000 financial
statements.
2President's Council on Integrity and Efficiency (PCIE).
Page 1 GAO-02-461 Senate Restaurants
Although Clifton Gunderson LLP found that the Fund maintained effective
internal control, it did identify certain matters involving the Fund's
internal control that, while not significant enough to be considered
reportable conditions,3 deserve management attention. Clifton Gunderson LLP
reported these matters to management in a separate letter.
As disclosed in Clifton Gunderson LLP's report and note 1 to the Fund's
financial statements, the operation of the Senate Restaurants is
economically dependent on financial and other support provided primarily by
the Architect of the Capitol and the U.S. Senate.
* The Fund's financial statements for fiscal years 2001 and 2000 include
direct financial support provided by the Architect and the U.S. Senate in
the form of transferred appropriations, and/or appropriated capital totaling
$700,000 in each year.
* The Fund's financial statements for fiscal years 2001 and 2000 do not
include other support that benefits the operation of the restaurants.
Specifically, the Architect of the Capitol provided about $110,000 and
$133,000 in fiscal years 2001 and 2000, respectively, for the purchase and
maintenance of restaurant-related capital items, which remain the property
of the Architect. In addition, during fiscal years 2001 and 2000, the
Architect and the Government Printing Office provided the Fund with support
services-the value of which cannot be readily determined.
As disclosed in Clifton Gunderson LLP's report and note 1 to the Fund's
financial statements, if operating trends continue, the Fund will continue
to require future support to maintain continuing operations. Such support
will be greater in the coming year due to the effect on the Senate
Restaurants' operation from the September 11, 2001, terrorist attack and the
October 2001 anthrax incidents.
In connection with the audit of the Fund's financial statements performed by
Clifton Gunderson LLP, we reviewed its report and related working papers
and, as necessary, met with Clifton Gunderson LLP representatives and the
Fund's management. Our review, as differentiated from an audit in
3Reportable conditions are matters coming to the auditor's attention that in
the auditor's judgment should be communicated because they represent
significant deficiencies in the design or operation of internal control,
which could adversely affect the entity's ability to meet the internal
control objectives described in the report.
Page 2 GAO-02-461 Senate Restaurants
accordance with U.S. generally accepted government auditing standards, was
not intended to enable us to express, and we do not express, opinions on the
Fund's financial statements and about the effectiveness of its internal
control or conclude on compliance with laws and regulations. Clifton
Gunderson LLP is responsible for the accompanying auditor's report and for
the conclusions expressed in the report. However, our review disclosed no
instances in which Clifton Gunderson LLP did not comply, in all material
respects, with U.S. generally accepted government auditing standards.
This report is a matter of public record and is intended for the use of the
U.S. Senate, the Architect of the Capitol, the management of the Senate
Restaurants, and other interested parties. We are sending copies of this
report to Senator Mitch McConnell, Ranking Member, Senate Committee on Rules
and Administration; Senator Richard J. Durbin, Chairman, and Senator Robert
F. Bennett, Ranking Member, Subcommittee on Legislative Branch, Senate
Committee on Appropriations; Senator Tom Daschle, Majority Leader; and
Senator Trent Lott, Minority Leader. Copies of this report will be made
available to others upon request. This report will also be available on
GAO's homepage (www.gao.gov). Should you or your staff have any questions
concerning our review of the audits, please contact me on (202) 512-9406 or
Hodge Herry, Assistant Director, on (202) 512-9469. You can also reach us by
email at [email protected] or [email protected].
Jeanette M. Franzel Acting Director Financial Management and Assurance
Page 3 GAO-02-461 Senate Restaurants
Appendix I
Report on Audit of the U.S. Senate Restaurants Revolving Fund
Independent Auditor's Report
Page 4 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Page 5 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Page 6 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Balance Sheets
Page 7 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Statements of Operations and Changes in U.S. Government Equity (Deficit)
Page 8 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Statements of Cash Flows
Page 9 GAO-02-461 Senate Restaurants
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Notes to Financial Statements
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
Appendix I Report on Audit of the U.S. Senate Restaurants Revolving Fund
(194085) Page 16 GAO-02-461 Senate Restaurants
GAO's Mission The General Accounting Office, the investigative arm of
Congress, exists to support Congress in meeting its constitutional
responsibilities and to help improve the performance and accountability of
the federal government for the American people. GAO examines the use of
public funds; evaluates federal programs and policies; and provides
analyses, recommendations, and other assistance to help Congress make
informed oversight, policy, and funding decisions. GAO's commitment to good
government is reflected in its core values of accountability, integrity, and
reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents is through the
Internet. GAO's Web site (www.gao.gov) contains abstracts and full-text
files of current reports and testimony and an expanding archive of older
products. The Web site features a search engine to help you locate documents
using key words and phrases. You can print these documents in their
entirety, including charts and other graphics.
Each day, GAO issues a list of newly released reports, testimony, and
correspondence. GAO posts this list, known as "Today's Reports," on its Web
site daily. The list contains links to the full-text document files. To have
GAO E-mail this list to you every afternoon, go to www.gao.gov and select
"Subscribe to daily e-mail alert for newly released products" under the GAO
Reports heading.
Order by Mail or Phone The first copy of each printed report is free.
Additional copies are $2 each. A check or money order should be made out to
the Superintendent of Documents. GAO also accepts VISA and Mastercard.
Orders for 100 or more copies mailed to a single address are discounted 25
percent. Orders should be sent to:
U.S. General Accounting Office
P.O. Box 37050
Washington, D.C. 20013
To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
512-6061
Visit GAO's Document GAO Building
Room 1100, 700 4th Street, NW (corner of 4th and G Streets, NW)Distribution
Center Washington, D.C. 20013
To Report Fraud, Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm,Waste, and Abuse in E-mail:
[email protected], orFederal Programs 1-800-424-5454 or (202) 512-7470
(automated answering system).
Public Affairs Jeff Nelligan, Managing Director, [email protected] (202)
512-4800 U.S. General Accounting Office, 441 G. Street NW, Room 7149,
Washington, D.C. 20548
Presorted Standard
Postage & Fees Paid
GAO
Permit No. GI00
United States
General Accounting Office
Washington, D.C. 20548-0001
Official Business
Penalty for Private Use $300
Address Correction Requested
*** End of document. ***