This is the accessible text file for GAO report number GAO-07-462 
entitled 'Financial Audit: Senate Restaurants Resolving Fund for Fiscal 
Years 2006 and 2007' which was released on March 13, 2007. 

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

United States Government Accountability Office: 

GAO: 

March 2007: 

Financial Audit: 

Senate Restaurants Resolving Fund for Fiscal Years 2006 and 2005: 

GAO-07-462: 

Contents: 

Letter: 

Appendix: 

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

March 13, 2007: 

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/Presidentís Council on 
Integrity and Efficiency (PCIE)[Footnote 1] Financial Audit Manual. 

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

* 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 reported that the Fund maintained 
effective internal control, it did identify certain matters involving 
the Fundís control environment that while not significant enough to be 
considered reportable conditions[Footnote 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 LLPís report and note 1 to the Fundís 
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. 

* The Fundís 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 Fundís 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 LLPís report and the Fundís 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 Fundís 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 Fundís 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 Fundís 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 auditorís 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 [hyperlink, 
http://www.gao.gov]. 

If you or your staff have any questions concerning this report, please 
contact me at (202) 512-3406 or sebastians@gao.gov. 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. 

Signed by: 

Steven J. Sebastian: 

Director: 

Financial Management and Assurance: 

[End of section] 

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

Clifton Gunderson LLP: 
Certified Public Accountants and Consultants: 
Offices in 15 states and Washington D.C.: 

Independent Auditor's Report: 

Comptroller General: 
United States Government Accountability Office: 

In our audits of the United States Senate Restaurants Revolving Fund 
(the Fund) for fiscal years 2006 and 2005, we found: 

* the financial statements are presented fairly, in all material 
respects, in conformity with U.S. generally accepted accounting 
principles; 

* the Fund had effective internal control over financial reporting 
(including safeguarding assets) and compliance with laws and 
regulations as of September 30, 2006; and: 

* no reportable noncompliance in fiscal year 2006 with laws and 
regulations we tested. 

The following sections discuss in more detail (1) these conclusions and 
(2) the scope of our audits. 

Opinion on Financial Statements: 

The financial statements, including the accompanying notes, present 
fairly, in all material respects, in conformity with U.S. generally 
accepted accounting principles, the financial position of the Fund as 
of September 30, 2006 and 2005, and the results of its operations and 
cash flows for the fiscal years then ended. 

As discussed in note 1, the financial statements present the financial 
position and the results of operations of the Fund and are not intended 
to present the financial position and results of operations of the 
Senate Restaurants as a whole. Amounts for capital expenditures and 
related repairs and maintenance purchased by the Architect of the 
Capitol (the Architect) for the benefit of the Fund are not reflected 
in the Fund's financial statements. Also, the financial statements do 
not include such costs as space and utilities, which are not readily 
identifiable. 

As discussed in Note 1, the operations of the Fund are economically 
dependent on direct support provided through the Architect and by the 
United States Senate. In fiscal years 2006 and 2005, the Fund received 
$850,000 each year in direct financial support to cover losses from 
operations, which totaled $1,019,380 and $680,965, respectively, during 
the same period. If losses from operations continue, the Fund will 
continue to require financial support to maintain operations. 

Opinion on Internal Control: 

The Fund maintained, in all material respects, effective internal 
control over financial reporting (including safeguarding assets) and 
compliance as of September 30, 2006, that provided reasonable assurance 
that misstatements, losses, or noncompliance material in relation to 
the financial statements would be prevented or detected on a timely 
basis. Our opinion is based on criteria established by the U.S. 
Government Accountability Office (GAO) Standards for Internal Control 
in the Federal Government. 

We found certain matters involving the control environment that we do 
not consider reportable conditions.[Footnote 3] We are communicating 
these matters to the Fund's management, along with our recommendations 
for improvement, in a separate letter. 

Compliance with Laws and Regulations: 

Our tests for compliance in fiscal year 2006 with selected provisions 
of laws and regulations disclosed no instances of noncompliance that 
would be reportable under U.S. generally accepted government auditing 
standards. However, the objective of our audit was not to provide an 
opinion on overall compliance with laws and regulations. Accordingly, 
we do not express such an opinion. 

Objectives, Scope, and Methodology: 

The Fund's management is responsible for (1) preparing the financial 
statements in conformity with U.S. generally accepted accounting 
principles; (2) establishing, maintaining, and assessing internal 
control to provide reasonable assurance that control objectives are 
met; and (3) complying with applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether (1) 
the financial statements are presented fairly, in all material 
respects, in conformity with U.S. generally accepted accounting 
principles, and (2) management maintained effective internal control as 
of September 30, 2006, the objectives of which are the following: 

* Financial reporting: Transactions are properly recorded, processed, 
and summarized to permit the preparation of financial statements in 
conformity with U.S. generally accepted accounting principles, and 
assets are safeguarded against loss from unauthorized acquisition, use, 
or disposition. 

* Compliance with applicable laws and regulations: Transactions are 
executed in accordance with laws governing the use of budget authority 
and with other laws and regulations that could have a direct and 
material effect on the financial statements. 

We are also responsible for testing compliance with selected provisions 
of laws and regulations that have a direct and material effect on the 
financial statements. 

In order to fulfill these responsibilities, we (1) examined, on a test 
basis, evidence supporting the amounts and disclosures in the financial 
statements; (2) assessed the accounting principles used and significant 
estimates made by management; (3) evaluated the overall presentation of 
the financial statements; (4) obtained an understanding of internal 
control related to financial reporting (including safeguarding assets) 
and compliance with laws and regulations (including execution of 
transactions in accordance with budget authority); (5) tested relevant 
internal control over financial reporting (including safeguarding 
assets) and compliance, and evaluated the design and operating 
effectiveness of internal control for the fiscal year ended September 
30, 2006; and (6) tested compliance in fiscal year 2006 with selected 
provisions of 2 U.S.C. 2042-2050, certain provisions of the Legislative 
Branch Appropriations Act, Department of the Treasury regulations on 
cash, Office of Personnel Management regulations on employee benefits 
and employer costs, and Internal Revenue Service regulations on federal 
income and Social Security tax withholdings. 

We limited our internal control testing to controls over financial 
reporting and compliance. Because of inherent limitations in internal 
control, misstatements due to error or fraud, losses, or noncompliance 
may nevertheless occur and not be detected. We also caution that 
projecting our evaluation to future periods is subject to the risk that 
controls may become inadequate because of changes in conditions, or 
that the degree of compliance with controls may deteriorate. 

We did not test compliance with all laws and regulations applicable to 
the Fund. We limited our tests of compliance to those laws and 
regulations that we deemed applicable to the financial statements for 
the fiscal year ended September 30, 2006. We caution that noncompliance 
may occur and not be detected by these tests and that such testing may 
not be sufficient for other purposes. 

We performed our work in accordance with U.S. generally accepted 
government auditing standards and the joint GAO/President's Council on 
Integrity and Efficiency (PCEE) Financial Audit Manual. 

Agency Comments and Our Evaluation: 

In commenting on the draft of this report, the Fund's management 
concurred with the facts and conclusions in our report. 

Signed by: 

Clifton Gunderson: 

Calverton, Maryland: 

December 15, 2006: 

United States Senate Restaurants Revolving Fund Balance Sheets: 
As of September 30, 2006 and 2005: 

Assets: 

Cash: Funds with U.S. Treasury; 
2006: $1,284,449; 
2005: $1,399,235. 

Cash: Petty cash and change funds; 
2006: $20,500; 
2005: $20,500. 

Total cash; 
2006: $1,304,949; 
2005: $1,419,735. 

Accounts receivable, Senate customer accounts (note 3); 
2006: $68,357; 
2005: $53,757. 

Vendor Commissions and other income receivables; 
2006: $26,079; 
2005: $30,507. 

Food, beverage, and merchandise inventory; 
2006: $141,450; 
2005: $144,065. 

China, glassware, silverware, and tableware; 
2006: $199,354; 
2005: $199,891. 

Prepaid expenses; 
2006: $2,745; 
2005: $4,318. 

Total Assets; 
2006: $1,742,934; 
2005: $1,852,273

Liabilities and U.S. Government Equity: 

Accounts payable and accrued expenses: Due to vendors and customers; 
2006: $344,561; 
2005: $318,530. 

Accounts payable and accrued expenses: Payroll and related benefits; 
2006: $233,363; 
2005: $318,530. 

Accounts payable and accrued expenses: Deferred income; 
2006: $19,455; 
2005: $25,999. 

Total accounts payable and accrued expenses; 
2006: $597,379; 
2005: $572,342. 

Other liabilities: Employees accrued leave; 
2006: $298,476; 
2005: $263,472. 

Total liabilities; 
2006: $895,855; 
2005: $835,814. 

U.S. government equity: Appropriated capital (note 4); 
2006: $2,847,144; 
2005: $2,847,144. 

U.S. government equity: Cumulative (deficit); 
2006: $2,000,065; 
2005: $1,830,685. 

Total U.S. Government equity; 
2006: $847,079; 
2005: $1,016,459. 

Total liabilities and U.S. Government Equity; 
2006: $1,742,934; 
2005: $1,852,273. 

[End of table] 

The accompanying notes are an integral part of these statements.  

United States Senate Restaurants Revolving Fund: 
Statements Of Operations And Changes In U.S. Government Equity: 
For the Fiscal Years Ended September 30, 2006 and 2005: 

Sales and other operating income Note 5): 

Sales: Food Service; 
2006: $4,771,907; 
2005: $4,480,140. 

Sales: Food Service; 
2006: $4,771,907; 
2005: $4,480,140. 

Sales: Catering; 
2006: $4,288,333; 
2005: $4,802,560. 

Sales: Sundry shop sales; 
2006: $727,694; 
2005: $678,946. 

Sales: Vending machine and other commissions; 
2006: 312,722; 
2005: 343,626. 

Total; 
2006: $10,100,656; 
2005: $10,305,272. 

Cost of Sales: 

Food and beverages; 
2006: $3,278,528; 
2005: $3,261,152. 

Sundry shop merchandise; 
2006: $516,454; 
2005: $454,607. 

Total; 
2006: $3,7947,982; 
2005: $3,715,759. 

Cost and Sales: Gross income from sales and other operating income; 
2006: $6,305,674; 
2005: $6,589,513. 

Operating Expenses: Personnel and benefits (note 6); 
2006: $6,766,264; 
2005: $6,705,688. 

Operating Expenses: Supplies and materials; 
2006: $521,598; 
2005: $529,425. 

Operating Expenses: Miscellaneous; 
2006: $37,192; 
2005: $35,365. 

Total operating expenses; 
2006: $7,325,054; 
2005: $7,270,478. 

Loss from operations; 
2006: ($1,019,380); 
2005: ($680,9650. 

Other funding: Direct financial support (note 1 and 4); 
2006: $850,000; 
2005: $850,000. 

Net income (loss); 
2006: ($169,380). 
2005: $169,035. 

U.S. Government Equity, Beginning of Year; 
2006: $1,016,459; 
2005: $847,424. 

U.S. Government Equity, End of Year; 
2006: $847,079; 
2005: $1,016,459. 

Cash Flows From Operating Activities: Net income (loss); 
2006: $(169,380); 
2005: $169,035. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Accounts receivable; 
2006: $(14,600); 
2005: $37,557. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Vendor commissions receivable; 
2006: $4,428; 
2005: ($4,561). 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Food, beverage, or merchandise 
inventory; 
2006: $2,615; 
2005: $15,065. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: China, glassware, silverware, and 
tableware; 
2006: $537; 
2005: ($36,376). 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Prepaid expenses; 
2006: $1,573; 
2005: $6,730. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Due to vendors; 
2006: $26,031; 
2005: $40,116. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Payroll and related benefits; 
2006: $5,550; 
2005: $10,268. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Employees' accrued leave; 
2006: $35,004; 
2005: $9,555. 

Cash Flows From Operating Activities: Adjustments to reconcile net 
income to net cash provided by operating activities: Effects of changes 
in operating assets and liabilities: Deferred income; 
2006: $6,544; 
2005: $926. 

Net cash provided by (used in) operating activities; 
2006: $114,786; 
2005: $248,315. 

Cash, Beginning of Year; 
2006: $1,419,735; 
2005: $1,171,420. 

Cash, End of Year; 
2006: $1,304,949; 
2005: $1,419,735. 

[End of table] 

United States Senate Restaurants Revolving Fund Notes To Financial 
Statements: 
For the Fiscal Years Ended September 30, 2006 and 2005: 

Note 1ó Organization:  

The United States Senate Restaurants Revolving Fund (the Fund) operates 
facilities for senators, employees of the Senate, and (in certain 
locations) the general public. The Architect of the Capitol (the 
Architect), under the direction of the Senate Committee on Rules and 
Administration (the Committee), is responsible for managing the 
restaurants. The restaurant management recommends price changes, which 
are subject to the Committee's approval. 

The financial statements present the financial position and the results 
of operations of the Fund and are not intended to present the financial 
position and results of operations of the Senate Restaurants as a 
whole. 

Economic Dependency: 

The Fund's operations are economically dependent on direct financial 
support provided through the Architect and by the United States Senate 
(the Senate). Under 2 U.S.C. 2050, the Architect is required to 
transfer appropriated funds to the Fund for use in paying certain 
management personnel and miscellaneous operating expenses of the 
restaurants. Support provided directly by the Senate consists of 
appropriations, loans, and transfers of appropriated capital (equity) 
to the Fund from the Senate's contingent fund used to finance the 
Fund's recurring operating losses. If losses from operations continue, 
the Fund will continue to require future support to maintain 
operations. 

The Architect also provides other financial support that is not 
included in the Fund's financial statements. The Architect uses 
appropriated funds among other things to purchase and maintain 
restaurant-related capital items, which remain the property of the 
Architect and are thus not reflected in the Fund's financial 
statements. 

In addition, the Architect and the Government Printing Office use 
appropriated funds ó the value of which cannot readily be determined ó 
to provide the Fund with space, utilities, garbage disposal, and 
printing in support of restaurant operations. These costs do not appear 
in the Fund's financial statements. 

Note 2 ó Summary Of Significant Accounting Policies (A) Basis Of 
Accounting:  

The financial statements are prepared on the accrual basis of 
accounting in conformity with U.S. generally accepted accounting 
principles.

This information is an integral part of the accompanying financial 
statements. 

Note 2 Ė Summary Of Significant Accounting Policies (Continued): 

(b) Use Of Estimates: 

The preparation of financial statements in conformity with U.S. 
generally accepted accounting principles requires management to make 
estimates and assumptions that affect the reported amounts of assets 
and liabilities and the disclosure of contingent assets and liabilities 
at the date of the financial statements. Estimates and assumptions may 
also affect the reported revenues and expenses during the reporting 
period. Actual results of those amounts could differ from management's 
estimates and assumptions. 

(c) Funds With U.S. Treasury: 

Cash receipts from sales and commissions are deposited in the U.S. 
Treasury and credited to the Fund for use in operating the various 
restaurant facilities. 

(d) Accounts Receivable: 

Accounts receivable are uncollateralized customer obligations, which 
generally require payment within 30 days from the invoice date. 
Accounts receivable are stated at the invoice amount. Payments of 
accounts receivable are applied to the specific invoices identified on 
the customer's remittance advice or, if unspecified, to the earliest 
unpaid invoices. Interest accrues at 2 percent per month on balances 
over 60 days past due. 

Management has determined that there is no need for an allowance for 
doubtful accounts, which is based on management's assessment of the 
collectibility of specific customer accounts and the aging of the 
accounts receivable. If there is a deterioration of a major customer's 
credit worthiness or actual defaults are higher than the historical 
experience, management's estimates of the recoverability of amounts due 
the Fund could be adversely affected. 

(e) Vendor Commissions Receivable: 

Vendor commissions receivable represents vending machine commissions 
earned in the current fiscal year but not received until next fiscal 
year. 

(f) Inventory: 

Under its authority to use funds as necessary for restaurant 
operations, the Fund acquires various types of inventory items (food, 
beverage, merchandise, china, glassware, silverware, and tableware). 
These inventories are valued at lower of cost or market using the first-
in, first-out method. 

Charges for breakage and shortages of china, glassware, silverware, and 
tableware purchased by the Fund are based on periodic physical counts 
and are treated as current period expenses in the Fund's statements of 
operations. 

(g) Deferred Income: 

Deferred income represents catering deposits received as of September 
30 for events that will occur subsequent to year-end. 

(h) Employees' Accrued Leave:  

Employees accrue annual leave on a biweekly basis. Full-time hourly and 
salaried workers accrue leave at rates ranging from 4 to 8 hours, 
depending on length of service. Part-time employees accrue leave at 
fluctuating biweekly rates, based on the amount of hours worked each 
pay period. Employees may carry over a maximum of 240 hours each 
calendar year. 

Note 3 ó Accounts Receivable, Senate Customer Accounts: 

The Committee allows senators, former senators, and certain Senate 
officials to have customer accounts. A comparison of the aged customer 
accounts receivable at September 30, 2006 and 2005 follows. 

Days Outstanding: 0 to 30; 
2006: Amount: $61,670; 
2006: Percentage: 90.2%; 
2005: Amount: $51,915; 
2005: Percentage: 96.6%. 

Days Outstanding: 31 to 60; 
2006: Amount: $3,137; 
2006: Percentage: 4.6%; 
2005: Amount: $106; 
2005: Percentage: .2%. 

Days Outstanding: 61 to 90; 
2006: Amount: $3,116; 
2006: Percentage: 4.6%; 
2005: Amount: $1,296; 
2005: Percentage: 2.4%. 

Days Outstanding: Over 90. 
2006: Amount: $434; 
2006: Percentage: .6%; 
2005: Amount: $440; 
2005: Percentage: .8. 

Total; 
2006: Amount: $68,357; 
2006: Percentage: 100.0%; 
2005: Amount: $53,757; 
2005: Percentage: 100.0. 

[End of table] 

Management actively pursues collection of all past due amounts. In 
accordance with policies established by the Committee, the Fund's 
accounting office mails monthly statements, which include the current 
charge (with supporting receipt) to all accounts with a balance. 
Customers whose accounts are delinquent over 30 days will receive a 
telephone reminder. Customers whose accounts are delinquent over 60 
days will receive an e-mail reminder. Additional collection procedures 
are pursued on all balances that are delinquent for over 120 days, or 
accounts that are over 60 days delinquent with balances over $10,000. 
The ultimate collection of all delinquent receivables is ensured 
through closeout procedures, which require payment of all past due 
balances at the time a senator leaves office. 

Note 4 Ė Financing Activities: 

In managing the Fund, the Architect has access to three types of 
supplemental funding: (1) appropriations, (2) loans, and (3) transfers 
of appropriated capital (equity). Under 2 U.S.C. 2050, the Architect is 
required to transfer appropriated funds to the Fund for use in paying 
certain management personnel and miscellaneous operating expenses of 
the restaurants. For the fiscal years ended September 30, 2006 and 
2005, the Fund's financial statements include direct financial support 
received from the Architect and the Senate through transferred 
appropriations of $850,000 and $850,000, respectively. 

Also, 2 U.S.C. 2049 allows the Architect, with the approval of the 
Committee, to borrow from the Senate contingent fund the amounts 
necessary to manage the Fund. The Committee establishes the loan 
amounts and repayment periods. The loaned funds come from the 
miscellaneous appropriation account of the Senate's contingent fund, 
and loan repayments are deposited to the same account. The last loan 
requested was received in fiscal year 1998 and repaid in fiscal year 
2002. 

Under 2 U.S.C. 2044, the Secretary of the Senate, at the request of the 
Architect and with the approval of the Committee, may transfer funds 
from the Senate's contingent expenses appropriation account to the Fund 
as appropriated capital. The Fund's total appropriated capital is 
$2,847,144 as of September 30, 2006 and 2005. No appropriated capital 
transfers have been received by the Fund since fiscal year 1999. 

Note 5 Ė Sales, Commissions, And Other Operating Income: 

The following schedule provides a comparison of sales, commissions, and 
operating income for the various Fund activities during fiscal years 
2006 and 2005. 

Regular food services: Catering; 
Fiscal Year 2006: Sales and Commissions: $4,288,333; 
Fiscal Year 2006: Operating Income (Loss): ($106,169); 
Fiscal Year 2005: Sales and Commissions: $4,802,560; 
Fiscal Year 2005: Operating Income (Loss): $221,128. 

Regular food services: Capitol dining rooms; 
Fiscal Year 2006: Sales and Commissions: $318,415; 
Fiscal Year 2006: Operating Income (Loss): (427,988); 
Fiscal Year 2005: Sales and Commissions: $267,898; 
Fiscal Year 2005: Operating Income (Loss): ($436,655. 

Regular food services: North Servery Cafeteria; 
Fiscal Year 2006: Sales and Commissions: $2,860,435; 
Fiscal Year 2006: Operating Income (Loss): ($603,271); 
Fiscal Year 2005: Sales and Commissions: $2,755,772; 
Fiscal Year 2005: Operating Income (Loss): ($627,163). 

Regular food services: South Buffet; 
Fiscal Year 2006: Sales and Commissions: $478,357; 
Fiscal Year 2006: Operating Income (Loss): ($26,821); 
Fiscal Year 2005: Sales and Commissions: $426,963; 
Fiscal Year 2005: Operating Income (Loss): ($22,500). 

Regular food services: Snack Bar; 
Fiscal Year 2006: Sales and Commissions: $271,543; 
Fiscal Year 2006: Operating Income (Loss): ($94,660); 
Fiscal Year 2005: Sales and Commissions: $223,462; 
Fiscal Year 2005: Operating Income (Loss): ($84,987). 

Regular food services: Senate chef; 
Fiscal Year 2006: Sales and Commissions: $843,157; 
Fiscal Year 2006: Operating Income (Loss): ($53,727); 
Fiscal Year 2005: Sales and Commissions: $806,045; 
Fiscal Year 2005: Operating Income (Loss): ($73,490). 

Total regular food services; 
Fiscal Year 2006: Sales and Commissions: $9,060,240; 
Fiscal Year 2006: Operating Income (Loss): ($1,312,636); 
Fiscal Year 2005: Sales and Commissions: $9,282,700; 
Fiscal Year 2005: Operating Income (Loss): ($1,013,667). 

Sundry Shop operations: Southside Deli; 
Fiscal Year 2006: Sales and Commissions: $344,352; 
Fiscal Year 2006: Operating Income (Loss): ($21,675); 
Fiscal Year 2005: Sales and Commissions: $327,100; 
Fiscal Year 2005: Operating Income (Loss): ($7,119). 

Sundry Shop operations: Hart Office Building; 
Fiscal Year 2006: Sales and Commissions: $383,342; 
Fiscal Year 2006: Operating Income (Loss): ($2,209); 
Fiscal Year 2005: Sales and Commissions: $351,846; 
Fiscal Year 2005: Operating Income (Loss): ($3,805). 

Total Sundry Shop operations; 
Fiscal Year 2006: Sales and Commissions: $727,694; 
Fiscal Year 2006: Operating Income (Loss): ($19,466); 
Fiscal Year 2005: Sales and Commissions: $678,946; 
Fiscal Year 2005: Operating Income (Loss): ($10,924). 

Vending machine and other commissions; 
Fiscal Year 2006: Sales and Commissions: $312,722; 
Fiscal Year 2006: Operating Income (Loss): $312,722; 
Fiscal Year 2005: Sales and Commissions: $343,626; 
Fiscal Year 2005: Operating Income (Loss): ($1343,626). 

Total; 
Fiscal Year 2006: Sales and Commissions: $10,100,656; 
Fiscal Year 2006: Operating Income (Loss): ($1,019,380); 
Fiscal Year 2005: Sales and Commissions: $10,305,272; 
Fiscal Year 2005: Operating Income (Loss): ($680,965). 

[End of table] 

Note 6 ó Personnel And Benefits: 

Personnel and benefits consist of salaries and wages for Fund 
employees; employee benefits for Fund employees; and contract labor, 
which includes on-call wait staff used for special functions and 
events. The following table presents a breakout of the amounts included 
in each category for the fiscal years ended September 30, 2006 and 
2005. 

Personnel and benefits: Salaries and wages; 
2006: $3,767,711; 
2005: $3,834,756. 

Personnel and benefits: Employee benefits; 
2006: $1,867,015; 
2005: $1,863,713. 

Personnel and benefits: Contract labor; 
2006: $1,131,538; 
2005: $1,007,219. 

Total; 
2006: $6,766,264; 
2005: $6,705,688. 

[End of table] 

Fund employees are covered by the Civil Service Retirement System 
(CSRS) or the Federal Employees' Retirement System (FERS), to which the 
Fund contributes. For employees covered by FERS, the Fund also 
contributes 1 percent of pay to the Thrift Savings Plan (TSP) and 
matches employee contributions to the TSP, up to an additional 4 
percent of pay. While the Fund has no liability for benefit payments to 
its former employees under the pension programs, the federal government 
is liable for the benefit payments through the Office of Personnel 
Management. 

The Fund also contributes to other employee benefits, including health 
insurance (FEHBP), life insurance (FEGLI), Social Security (FICA), 
Medicare (HIT), leave expense, employee meals, local transportation 
assistance, and employee physicals. 

Contributions made by the Fund for employee benefits during fiscal 
years 2006 and 2005 are listed in the following table. 

Employee benefits: FEHBP; 
2006: $580,482; 
2005: $568,643. 

Employee benefits: FERS; 
2006: $458,748; 
2005: $457,360. 

Employee benefits: Leave expense; 
2006: $271,676; 
2005: $276,892. 

Employee benefits: FICA; 
2006: $192,128; 
2005: $199,282. 

Employee benefits: TSP; 
2006: $116,425; 
2005: $114,426. 

Employee benefits: Employee meals; 
2006: $89,313; 
2005: $83,009. 

Employee benefits: Transit subsidy; 
2006: $44,034; 
2005: $51,954. 

Employee benefits: HIT; 
2006: $60,065; 
2005: $58,883. 

Employee benefits: CSRS; 
2006: $47,188; 
2005: $46,632. 

Employee benefits: FEGLI; 
2006: $6,956; 
2005: $6,632. 

Total; 
2006: $1,867,015; 
2005: $1,863,713. 

[End of table] 

Note 7 ó Other Funding Not In Financial Statements: 

Identifiable costs paid directly by the Architect for the benefit of 
the Fund that are not reflected in the Fund's financial statements 
include equipment maintenance, equipment purchases, and professional 
fees totaling $163,020 and $161,183 for fiscal years 2006 and 2005, 
respectively. 

Note 8 ó Subsequent Event: 

In October 2006, the Fund received $850,000 of appropriated funds from 
the Architect for fiscal year 2007 for the support of management 
personnel and other operating expenses of the restaurants.

[End of section] 

Footnotes: 

[1] PCIE is an interagency council that is charged with promoting 
integrity and effectiveness in federal programs and primarily consists 
of the presidentially appointed inspectors general
(IG) under the IG Act, as amended. 

[2] Reportable conditions are matters coming to the auditorís attention 
that in the auditorís judgment should be communicated because they 
represent significant deficiencies in the design or operation of 
internal control, which could adversely affect the entityís ability to
meet the internal control objectives described in the report. 

[3] Reportable conditions involve matters coming to our attention 
relating to significant deficiencies in the design or operation of the 
internal control that, in our judgment, could adversely affect the 
organization's ability to record, process, summarize, and report 
financial data consistent with the assertions of management in the 
financial statements. 

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