This is the accessible text file for GAO report number GAO-04-416 
entitled 'Financial Audit: Senate Restaurants Revolving Fund for Fiscal 
Years 2003 and 2002' which was released on March 09, 2004.

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Report to the Chairman and Ranking Minority Member, Committee on Rules 
and Administration, U.S. Senate, and the Architect of the Capitol:

March 2004:

FINANCIAL AUDIT:

Senate Restaurants Revolving Fund for Fiscal Years 2003 and 2002:

GAO-04-416:

Contents:

Letter: 

Appendix:

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

Independent Auditor's Report:  

Balance Sheets:  

Statements of Operations and Changes in U.S. Government Equity:  

Statements of Cash Flows:  

Notes to Financial Statements:  

Letter March 9, 2004:

The Honorable Trent Lott: 
Chairman: 
The Honorable Christopher J. Dodd: 
Ranking Minority Member: 
Committee on Rules and Administration: 
United States Senate:

The Honorable Alan M. Hantman: 
Architect of the Capitol:

As you requested, we provided for an audit of the financial statements 
of the U.S. Senate Restaurants Revolving Fund (the Fund) for the fiscal 
years ended September 30, 2003 and 2002, by contracting with the 
independent public accounting firm of Clifton Gunderson LLP. The 
contract required that the audit be done in accordance with U.S. 
generally accepted government auditing standards and the joint GAO/
PCIE[Footnote 1] Financial Audit Manual.

In its 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.

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,[Footnote 2] 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 through 
the Architect of the Capitol (the Architect) and by the U.S. Senate. 
The financial statements present the financial positions 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.

* The Fund's financial statements for fiscal years 2003 and 2002 
include direct financial support provided through the Architect, which, 
after deducting repayment of loans in fiscal year 2002 to the Senate 
contingent fund, totaled $1,095,000 and $850,000,[Footnote 3] 
respectively, from transferred appropriations.

* The Fund's financial statements for fiscal years 2003 and 2002 do not 
include other support that benefits the operation of the restaurants. 
Specifically, the Architect provided approximately $176,000 and 
$200,000 in fiscal years 2003 and 2002, respectively, for the purchase 
and maintenance of restaurant-related capital items, which remain the 
property of the Architect. In addition, during fiscal years 2003 and 
2002, 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 losses from operations continue, which totaled 
$678,211 and $1,191,941 in fiscal years 2003 and 2002, respectively, 
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 
working papers 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 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 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 Minority 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 will 
also be available at no charge on GAO's Web site at 
[Hyperlink, http://www.gao.gov]. Should you or your staff have any 
questions concerning our review of the audits, please contact me on 
(202) 512-6906 or Hodge Herry, Assistant Director, on (202) 512-9469. 
You can also reach us at [Hyperlink, williamsM1@gao.gov] or 
[Hyperlink, herryh@gao.gov.].

Signed by: 

McCoy Williams: 
Director: 
Financial Management and Assurance:

[End of section]

Appendixes: 

[End of section]

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

Independent Auditor's Report:

[See PDF for image]

[End of figure]

Balance Sheets:

[See PDF for image]

[End of figure]

Statements of Operations and Changes in U.S. Government Equity:

[See PDF for image]

[End of figure]

Statements of Cash Flows:

[See PDF for image]

[End of figure]

Notes to Financial Statements:

[See PDF for image]

[End of figure]

[End of section]

(195022):

FOOTNOTES

[1] President's Council on Integrity and Efficiency (PCIE).

[2] Reportable 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.

[3] After deducting $350,000 in repayment of loans from the $1,200,000 
of gross appropriations in fiscal year 2002, the net transferred 
appropriations to the Fund were $850,000. 

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