Financial Audit: Senate Restaurants Revolving Fund for Fiscal	 
Years 2006 and 2005 (13-MAR-07, GAO-07-462).			 
                                                                 
As requested, GAO provided for audits of the financial statements
of the U.S. Senate Restaurants Revolving Fund (the Fund) for the 
fiscal years ended September 30, 2006, and 2005, by contracting  
with the independent public accounting firm of Clifton Gunderson 
LLP.								 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-462 					        
    ACCNO:   A66764						        
  TITLE:     Financial Audit: Senate Restaurants Revolving Fund for   
Fiscal Years 2006 and 2005					 
     DATE:   03/13/2007 
  SUBJECT:   Accounting standards				 
	     Audit reports					 
	     Auditing standards 				 
	     Financial statement audits 			 
	     Fund audits					 
	     Internal controls					 
	     Revolving funds					 
	     Dining facilities					 
	     Cost estimates					 
	     Senate Restaurant Revolving Fund			 

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GAO-07-462

   

     * [1]Report to the Committee on Rules and Administration, U.S. Senate,
       and the Architect of the Capitol

          * [2]March 2007

     * [3]FINANCIAL AUDIT

          * [4]Senate Restaurants Revolving Fund for Fiscal Years 2006 and
            2005

     * [5]Contents
     * [6]Report on Audit of the U.S. Senate Restaurants Revolving Fund

Report to the Committee on Rules and Administration, U.S. Senate, and the
Architect of the Capitol

March 2007

FINANCIAL AUDIT

Senate Restaurants Revolving Fund for Fiscal Years 2006 and 2005

Contents

March 13, 2007Letter

The Honorable Dianne Feinstein
Chairman 
The Honorable Robert F. Bennett
Ranking Member
Committee on Rules and Administration
United States Senate

The Honorable Stephen T. Ayers
Acting Architect of the Capitol

As 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, 2006, and 2005, by contracting with the independent
public accounting firm of Clifton Gunderson LLP. The contract required
that the audit be conducted in accordance with U.S. generally accepted
government auditing standards and the joint GAO/President's Council on
Integrity and Efficiency (PCIE)^1 Financial Audit Manual.

In its audit of the Fund, Clifton Gunderson LLP reported that:

oThe financial statements were presented fairly, in all material respects,
in conformity with U.S. generally accepted accounting principles.

oThe Fund maintained effective internal control over financial reporting
(including safeguarding assets) and compliance with laws and regulations.

oThere was no reportable noncompliance with selected provisions of laws
and regulations it tested.

Although Clifton Gunderson LLP reported that the Fund maintained effective
internal control, it did identify certain matters involving the Fund's
control environment that while not significant enough to be
considered reportable conditions^2 deserve management attention. Clifton
Gunderson LLP  is reporting  these matters along with its recommendations
for improvement 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 through the
Architect of the Capitol (the Architect) and by the United States Senate.
The financial statements present the financial position and the results of
activities financed through the Fund and are not intended to present the
financial position and results of operations of the Senate Restaurants as
a whole.

oThe Fund's financial statements for fiscal years 2006 and 2005 reflect
direct financial support of $850,000 each year, received from the
Architect and the United States Senate through transferred appropriations.

oThe Fund's financial statements for fiscal years 2006 and 2005 do not
include other support that benefits the operation of the restaurants.
Specifically, the Architect provided approximately $163,020 and $161,183
in fiscal years 2006 and 2005, respectively, for the purchase and
maintenance of capital equipment, which remain the property of the
Architect, and professional fees. In addition, during fiscal years 2006
and 2005, the Architect and the Government Printing Office provided the
Fund with other support services, such as space and utilities, the value
of which cannot be readily determined.

As disclosed in Clifton Gunderson LLP's report and the Fund's financial
statements, losses from operations totaled $ 1,019,380 and $680,965 in
fiscal years 2006 and 2005, respectively. If losses from operations
continue, the Fund will continue to require future support to maintain
operations.

In connection with the audit of the Fund's financial statements performed
by Clifton Gunderson LLP, we reviewed its report and related audit
documentation and, as necessary, met with Clifton Gunderson LLP
representatives and the Fund's management. Our review, as differentiated
from an audit in 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 its 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 did not disclose any instances in which
Clifton Gunderson LLP did not comply, in all material respects, with U.S.
generally accepted government auditing standards and the joint GAO/PCIE
Financial Audit Manual.

This report is a matter of public record and is intended for the use of
the U.S. Senate, the Architect, the management of the Senate Restaurants,
and other interested parties. We are sending copies of this report to the
Chairman and Ranking Member, Subcommittee on Legislative Branch, Senate
Committee on Appropriations, and the Majority Leader and Minority Leader
of the Senate. Copies of this report will be made available to others upon
request. This report is also available at no charge on the GAO Web site at
http://www.gao.gov .

If you or your staff have any questions concerning this report, please
contact me at (202) 512-3406 or [email protected] . Contact points for
our Offices of Congressional Relations and Public Affairs may be found on
the last page of this report. Contributors to this report were Julie T.
Phillips and Kwabena Ansong.

Steven J. Sebastian
Director Financial Management and Assurance

Appendix I

Report on Audit of the U.S. Senate Restaurants Revolving Fund

(196123)

*** End of document. ***