TITLE

Financial Audit: Senate Restaurants Revolving Fund for Fiscal Years 2006 and 2005: GAO-07-462

AUTHOR(S)
Sebastian, Steven J.
PUB. DATE
March 2007
SOURCE
GAO Reports;3/13/2007, p1
SOURCE TYPE
Government Document
DOC. TYPE
Article
ABSTRACT
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. In its audit of the Fund, Clifton Gunderson, LLP reported that the financial statements were presented fairly, in all material aspects, in conformity with U.S. generally accepted accounting principles, the Fund maintained effective internal controld over financial reporting (including safeguarding assets)and complaince with laws and regulations, and there was no reportable noncompliance with selected provisions of laws and regualations it tested. Although Clifton Gunderson LLP reported 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 deserve management attention. 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 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. The 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.
ACCESSION #
24583836

 

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