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Financial Audit: U.S. Senate Stationery Room Revolving Fund's Fiscal Years 2002 and 2001 Financial Statements

GAO-04-905 Published: Aug 27, 2004. Publicly Released: Sep 28, 2004.
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Highlights

This report presents the results of our audit of the Senate Stationery Room's Statement of Receipts, Disbursements, and Fund Balance for the fiscal years ended September 30, 2002 and September 30, 2001. This report also contains our opinion on the effectiveness of the Fund's related internal control as of September 30, 2002, and our evaluation of its compliance with selected provision of laws and regulations we tested.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The Secretary of the Senate should direct the Stationery Room management to continue its efforts to strengthen internal control to provide assurance that individuals responsible for approving purchase orders sign each document to formally evidence their approval.
Closed – Implemented
Stationery Room management has taken various actions to improve related internal controls, including implementing a policy that required appropriate supporting documentation (including approved purchase orders), prior to making related disbursements. The Stationery Room's policy required that purchase orders be approved by the Keeper of the Stationery and in doing so permitted the use of signature stamps to evidence his approval. The policy also requires the Keeper to properly secure the signature stamp to prevent unauthorized use. During 2006, we reviewed supporting documentation for a sample of more than 100 randomly selected disbursement transactions and in all instances the supporting documentation included evidence that the purchase order was approved by Keeper of the Stationery.
The Secretary of the Senate should direct the Stationery Room management to continue its efforts to strengthen internal control to provide assurance that Stationery Room receipt and disbursement transactions as well as fund balance amounts are timely reconciled to the Senate Disbursing Office records on a monthly basis.
Closed – Implemented
As GAO's Fiscal Year 2010 performance audit of the Fund's receipt and disbursement transactions, GAO work found that Stationery Room policies require a detailed monthly reconciliation of the Fund's receipt and disbursement transactions and related Fund balance with Senate Disbursing Office records, within 3 days of receipt of the monthly statement from Senate Disbursing Office. The policy requires that the reconciliation identify and research any discrepancies and make appropriate corrections or adjustments and that the reconciliation be documented. GAO's audit noted also that, in accordance with the Fund's policies, the FY 2010 monthly reconciliations of receipt and disbursement transactions were performed on a timely basis.
The Secretary of the Senate should direct the Stationery Room management to continue its efforts to strengthen internal control to provide assurance that policies and procedures are developed and implemented to document the basis (sole supplier, quality, and price) for decisions to purchase goods that are not of United States origin, including purchases from American distributors of goods manufactured in foreign countries, to ensure compliance with section 109 of title 2 of the United States Code.
Closed – Implemented
Based on inquiries in 2006 and 2008 to followup on the status of Stationery Room actions to implement this recommendation, GAO noted that Stationery Room management had taken some actions designed to enhance its compliance with "Made in America" requirements applicable to Stationery Room purchases. Those actions were primarily focused on documenting whether or not the items purchased from vendors were or were not made in the United States. However, the actions cited by management did not include implemented policies and procedures requiring the Stationery Room to document the basis for its decision to purchase goods that were not made in the United States. Additionally, subsequent GAO performance audits of the Fund's Fiscal Year 2010 and 2014 receipt and disbursement transactions did not identify any policies or procedures requiring the Stationery Room to document the basis or reason for its decisions to purchase goods that were not made in the United States. However, in September 2016, the Senate Stationery Room updated its policies and procedures manual to require that the basis for purchasing an item not made in the United States be indicated on the purchase order for all items.

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Topics

Accounting proceduresAccounting standardsFinancial recordsFinancial statement auditsFinancial statementsFund auditsInternal auditsInternal controlsRevolving fundsOffice supplies