Audit of the House of Representatives Restaurant Revolving Fund, July 4, 1976, to October 8, 1977

GGD-78-65: Published: Jun 9, 1978. Publicly Released: Jun 9, 1978.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

The House of Representatives Restaurant is operated primarily for members and employees of the House. Its sales revenues are deposited in the Treasury and credited to the House Restaurant Revolving Fund for use in operating the restaurant.

For the 15-month period ended October 8, 1977, the restaurant's net income was $72,281, consisting of a net loss of $38,603 during the 3-month transition period, July 4 to October 9, 1976, and net income of $110,884 during fiscal year (FY) 1977. The net income in FY 1976 was $534. During FY 1977, the number of customers served increased by about 6 percent over 1976. There was a significant improvement in both food and tobacco operations for the two FY. As a result of the GAO FY 1976 report, controls were improved over congressional and members' restaurant guest checks, restaurant cash receipts, and the use of the petty cash fund. However, improvement is still needed in cash deposit procedures and in analysis of tableware and kitchenware replacement expenses. During the previous 4 years, accounts receivable have shown steady annual increases averaging 38 percent. In FY 1977, the accounts receivable decreased by 26.1 percent. As of September 30, 1977, 21.7 percent was outstanding over 60 days compared with 25.5 percent at June 30, 1976. The financial statements present fairly the financial position of the revolving fund at October 8, 1977, and July 3, 1976, and the results of its operations and changes in its financial position for the periods then ended.

Matter for Congressional Consideration

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Matter: The Committee on House Administration should require cashiers to give customers cash register receipts and the restaurant administrative officer to be responsible for developing and conducting a systematic surprise cash count program. The restaurant administrative officer should analyze the cash flow at each cashier station and have the change fund transferred to the House Finance Office. The accounting office should reinstitute the monthly cash reconciliation procedure.

 

Explore the full database of GAO's Open Recommendations »

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here