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Financial Management: Audit of the Senate Gift Shop Revolving Fund for Fiscal Year 2010

GAO-11-326R Published: Apr 06, 2011. Publicly Released: Apr 06, 2011.
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Highlights

In a letter dated July 22, 2010, Congress requested that we conduct an audit of the Senate Gift Shop's cash receipts and cash disbursements recorded in the Senate Gift Shop Revolving Fund for the fiscal year ended September 30, 2010. In the letter, Congress also requested that we review the inventory accounting procedures of the Gift Shop. The Senate Gift Shop was established on October 6, 1992, to sell gift items to members of the Senate, Senate staff, and the general public. All sales receipts are taken to the Senate Disbursing Office for deposit into the Senate Gift Shop Revolving Fund in the U.S. Treasury. The Gift Shop then uses the cash receipts to purchase inventory items for resale, supplies, shipping, and other related services expenses. The Senate Disbursing Office maintains the money and makes payments on behalf of the Senate Gift Shop Revolving Fund. Salaries and benefits of Senate employees who work in the Gift Shop are not paid from the revolving fund; rather, they are paid from the "Salaries, Officers, and Employees" appropriation account of the Senate. Additional costs of the Gift Shop such as rent and utilities cannot be readily determined and are covered by other appropriated Senate funds.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
The Secretary of the Senate should direct Senate Gift Shop management to update existing written procedures for cash receipts and cash disbursements to include: (1) documented reviews of weekly deposit envelopes (cash receipts), (2) a description of any manual adjustments to amounts on "X" and "Z" reports in the "Notes" section of Daily and Weekly Cash Sheets (cash receipts), and (3) documented reviews of monthly reconciliations (cash receipts and disbursements).
Closed – Implemented
As part of GAO's audit of the cash receipts and cash disbursements recorded in the Senate Gift Shop Revolving Fund for FY 2014, GAO found that the recommendation was implemented and considered closed.
The Secretary of the Senate should direct Senate Gift Shop management to disseminate updated accounting procedures, train personnel as necessary, and establish a mechanism to provide for subsequent review of activities for compliance.
Closed – Implemented
As part of GAO's audit of the cash receipts and cash disbursements recorded in the Senate Gift Shop Revolving Fund for FY 2014, GAO found that the recommendation was implemented and considered closed.

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Topics

Accounting proceduresAppropriated fundsCash managementFinancial managementFund auditsInventoriesInventory controlOffice managementRevolving fundsPolicies and procedures