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entitled 'Financial Audit: Senate Restaurants Revolving Fund for 
Fiscal Years 2001 and 2000' which was released on March 15, 2002. 

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United States General Accounting Office: 
GAO: 

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

March 2002: 

Financial Audit: 

Senate Restaurants Revolving Fund for Fiscal Years 2001 and 2000: 
	
GAO-02-461: 

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
(Deficit): 

Statements of Cash Flows: 

Notes to Financial Statements: 

[End of section] 

United States General Accounting Office: 
Washington, D.C. 20548: 

March 15, 2002: 

The Honorable Christopher J. Dodd: 
Chairman: 
Committee on Rules and Administration: 
United States Senate: 

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

As you 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, 2001, and 2000 by contracting with 
independent public accounting firms.[Footnote 1] The contracts 
required that the audits be done in accordance with U.S. generally 
accepted government auditing standards and the joint GAO/PCIE 
[Footnote 2] Financial Audit Manual. 

In its fiscal year 2001 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 3] 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 
primarily by the Architect of the Capitol and the U.S. Senate. 

* The Fund's financial statements for fiscal years 2001 and 2000 
include direct financial support provided by the Architect and the 
U.S. Senate in the form of transferred appropriations, and/or 
appropriated capital totaling $700,000 in each year. 

* The Fund's financial statements for fiscal years 2001 and 2000 do 
not include other support that benefits the operation of the 
restaurants. Specifically, the Architect of the Capitol provided about 
$110,000 and $133,000 in fiscal years 2001 and 2000, respectively, for 
the purchase and maintenance of restaurant-related capital items, 
which remain the property of the Architect. In addition, during fiscal 
years 2001 and 2000, 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 operating trends continue, the Fund 
will continue to require future support to maintain continuing 
operations. Such support will be greater in the coming year due to the 
effect on the Senate Restaurants' operation from the September 11, 
2001, terrorist attack and the October 2001 anthrax incidents. 

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. 

This report is a matter of public record and is intended for the use 
of the U.S. Senate, the Architect of the Capitol, the management of 
the Senate Restaurants, and other interested parties. We are sending 
copies of this report to Senator Mitch McConnell, Ranking Member, 
Senate Committee on Rules and Administration; Senator Richard J. 
Durbin, Chairman, and Senator Robert F. Bennett, Ranking Member, 
Subcommittee on Legislative Branch, Senate Committee on 
Appropriations; Senator Tom Daschle, Majority Leader; and Senator 
Trent Lott, Minority Leader. Copies of this report will be made 
available to others upon request. This report will also be available 
on GAO's homepage [hyperlink, http://www.gao.gov]. Should you or your 
staff have any questions concerning our review of the audits, please 
contact me on (202) 512-9406 or Hodge Herry, Assistant Director, on 
(202) 512-9469. You can also reach us by email at franzelj@gao.gov or 
herryh@gao.gov. 

Signed by: 
	
Jeanette M. Franzel: 
Acting Director: 
Financial Management and Assurance: 

[End of section] 

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

Independent Auditor's Report: 

Clifton Gunderson LLP: 
Certified Public Accountants & Consultants: 
Centerpark I: 
4041 Powder Mill Road, Suite 410: 
Calverton, Maryland 20705-3106: 
tel: 301-931-2050: 
fax: 301-931-1710: 
[hyperlink, http://www.cliftoncpa.com] 

Independent Auditor's Report: 

Comptroller General: 
United States General Accounting Office: 

In our audit of the United States Senate Restaurants Revolving Fund 
(the Fund) for fiscal year 2001, 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, and, 

* no reportable noncompliance with laws and regulations we tested.
The following sections discuss in more detail (1) these conclusions 
and (2) the scope of our audit. 

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, 2001 and the results of operations and cash flows for 
the year then ended. The financial statements of the Fund as of 
September 30, 2000 were audited by other auditors whose report dated 
January 12, 2001, expressed an unqualified opinion on those financial 
statements. 

As discussed in note 1, 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. Amounts for capital 
expenditures and related repairs and maintenance purchased by the 
Architect of the Capitol (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 United States Senate 
and the Architect. If operating trends continue, the Fund will 
continue to require financial support to maintain operations. Due to 
the effect on operations from the September 11, 2001 terrorist attack 
and the October 2001 anthrax incident, the Fund will require 
substantial support in the coming fiscal year. 

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, 2001 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 General 
Accounting Office (GAO) Standards for Internal Control in the Federal 
Government. 

Compliance with Laws and Regulations: 

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. However, our tests for compliance with selected 
provisions of laws and regulations disclosed no instances of 
noncompliance that would be reportable under U. S. generally accepted 
government auditing standards. This conclusion is intended solely for 
the information of the General Accounting Office, the Architect of the 
Capitol, management of the Senate Restaurants and the United States 
Senate, and is not intended to be and should not be used by anyone 
other than these specified parties. 

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, 
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; 
and (6) tested compliance with selected provisions of 40 U.S.C. 174j-1 
through j-9, certain provisions of the Legislative Branch 
Appropriation 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, 2001. 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 audit in accordance with U. S. generally accepted 
auditing standards and Government Auditing Standards as issued by the 
Comptroller General of the United States. 

Agency Comments and our Evaluations: 

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

Signed by: 

Clifton Gunderson, LLP: 
Calverton, Maryland: 
January 11, 2002: 

[End of letter] 

Balance Sheets: 

United States Senate Restaurants Revolving Fund: 
Balance Sheets: 
September 30, 2001 and 2000: 

Assets: 

Cash: Funds with U.S. Treasury; 
2001: $990,309; 
2000: $874,819. 

Cash: Petty cash and change funds; 
2001: $20,500; 
2000: $20,500. 

Total cash: 
2001: $1,010,809; 
2000: $895,319. 

Prepaid expenses: 
2001: $7,141; 
2000: $11,353. 

Accounts receivable, Senate customer accounts (note 3): 
2001: $153,378; 
2000: $113,489. 

Vendor commissions and other income receivables (note 2(d)): 
2001: $22,032; 
2000: $15,123. 

Food, beverage, and merchandise inventory (note 2(c)): 
2001: $135,278; 
2000: $143,055. 

China, glassware, silverware, and tableware (note 2(c)): 
2001: $109,489; 
2000: $75,669; 

Total Assets: 	
2001: $1,48,127; 
2000: $1,254,008. 

Liabilities And U.S. Government Equity (Deficit): 

Accounts payable and accrued expenses: 

Due to vendors and customers: 
2001: $164,977; 
2000: $358,064. 

Payroll and related benefits: 
2001: $268,413; 
2000: $303,842. 

Deferred income (note 2(e)): 
2001: $38,146; 
2000: $27,201. 

Total accounts payable and accrued expenses: 
2001: $471,536; 
2000: $689,107. 

Other liabilities:		 

Employees' accrued leave (note 2(f)): 
2001: $235,472; 
2000: $183,019; 

Loans from Senate contingent fund (note 5): 
2001: $350,000; 
2000: $400,000; 

Total other liabilities: 
2001: $585,472; 
2000: $583,019. 

Total liabilities: 
2001: $1,057,008; 
2000: $1,272,126. 
		
U.S. Government equity:	 
	
Appropriated capital (note 5): 
2001: $2,847,144; 
2000: $2,847,144. 

Cumulative results of operations (deficit): 
2001: ($2,466,025); 
2000: ($2,865,262). 

Total U.S. Government equity (deficit): 
2001: $381,119; 
2000: ($18,118). 

Total Liabilities And U.S. Government Equity: 
2001: $1,438,127; 
2000: $1,254,008. 

These financial statements should be read only in connection with
the accompanying notes to financial statements. 

[End of balance sheets] 

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

United States Senate Restaurants Revolving Fund: 
Statements Of Operations And: 
Changes In U.S. Government Equity (Deficit): 
Years Ended September 30, 2001 and 2000: 

Sales And Other Operating Income (Note 6): 

Sales: 
	
Regular food services: 
2001: $3,731,411; 
2000: $3,653,383. 

Catering: 
2001: $4,605,198; 
2000: $4,217,783. 

Sundry shop sales: 
2001: $700,502; 
2000: $654,605. 

Vending machine commissions and other operating income: 
2001: $329,007; 
2000: $176,852. 

Sales: Total: 
2001: $9,366,118; 
2000: $8,702,623. 

Cost Of Sales: 

Food and beverages: 
2001: $2,688,127; 
2000: $2,470,304. 

Sundry shop merchandise: 
2001: $555,488; 
2000: $502,950. 

Cost Of Sales: Total; 
2001: $3,243,615; 
2000: $2,973,254. 

Gross income from sales and other operating income: 
2001: $6,122,503; 
2000: $5,729,369. 

Operating Expenses: 

Personnel and benefits (note 4): 
2001: $5,872,547; 
2000: $5,580,741. 

Supplies and materials: 
2001: $535,404; 
2000: $486,775. 

Miscellaneous: 
2001: $65,315; 
2000: $50,294. 

Total operating expenses: 
2001: $6,473,266; 
2000: $6,117 810. 

Loss from operations: 
2001: ($350,763); 
2000: ($388,441); 

Other Sources Of Funds: 

Appropriated funds (note 1): 
2001: $750,000; 
2000: $750,000. 

Net income: 
2001: $399,237; 
2000: $361,559; 

U.S. Government Equity (Deficit), Beginning Of Year: 
2001: ($18,118); 
2000: ($379,677). 

U.S. Government Equity (Deficit), End Of Year: 
2001: $381,119; 
2000: ($18,118). 

These financial statements should be read only in connection with
the accompanying notes to financial statements. 

[End of Statements of Operations and Changes in U.S. Government Equity 
(Deficit)] 

Statements of Cash Flows: 

United States Senate Restaurants Revolving Fund: 
Statements Of Cash Flows: 
Years Ended September 30, 2001 and 2000: 

Cash Flows From Operating Activities: 

Net income: 
2001: $399,237; 
2000: $361,559. 

Adjustments to reconcile net income to net cash provided by operating 
activities: (Increase) decrease in assets: 
		
Accounts receivable: 
2001: ($46,798); 
2000: $83,895. 

Food, beverage, and merchandise inventory: 
2001: $7,777; 
2000: $3,209; 

China, glassware, silverware, and tableware: 
2001: ($33,820); 
2000: ($488). 

Prepaid expenses: 
2001: $4,212; 
2000: ($11,353). 

Effects of changes in operating assets and liabilities:	Increase 
(decrease) in liabilities: 

Due to vendors: 
2001: ($193,087); 
2000: ($173,178). 

Payroll and related benefits: 
2001: ($35,429); 
2000: ($11,552). 

Employees' accrued leave: 
2001: $52,453; 
2000: $806. 

Deferred income: 
2001: $10,945; 
2000: ($22,483). 

Net cash provided by operating activities: 
2001: $165,490; 
2000: $230,415. 

Cash Flows From Financing Activities: 

Loan repayments to Senate contingent fund: 
2001: ($50,000); 
2000: ($50,000). 

Net increase in cash: 
2001: $115,490; 
2000: $180,415. 

Cash, Beginning Of Year: 
2001: $895,319; 
2000: $714,904. 

Cash, End Of Year: 
2001: $1,010,809; 
2000: $895,319. 

These financial statements should be read only in connection with
the accompanying notes to financial statements. 

[End of Statements of Cash Flows] 

Notes to Financial Statements: 

United States Senate Restaurants Revolving Fund: 
Notes To Financial Statements: 
September 30, 2001 And 2000: 

Note 1: Organization: 

The United States Senate Restaurant 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 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. 

Economic Dependency: 

The Fund's operations are economically dependent on direct financial 
support provided by the Architect of the Capitol (the Architect) and 
the United States Senate (the Senate). Beginning with fiscal year 
1998, the Architect is required to transfer appropriated funds to the 
Fund, pursuant to Public Law 105-55, 111 Stat. 1189, Title 1, for use 
in paying certain management personnel and miscellaneous operating 
expenses of the Restaurants. Support provided directly by the Senate 
consists of loans and transfers of appropriated capital (equity) to 
the Fund from the Senate's contingent fund. Loan proceeds and 
increases in appropriated capital provided by the Senate are used to 
finance the Fund's recurring operating losses. If operating trends 
continue, the Fund will continue to require future support to maintain 
operations. 

For the fiscal years ended September 30, 2001 and 2000, the Fund's 
financial statements include direct financial support received from 
the Architect and the Senate through transferred appropriations, loan 
proceeds, and/or increases in appropriated capital totaling $700,000 
in each year as follows: 

Transfers of appropriations from the Architect: 
2001: $750,000; 
2000: $750,000. 

Decrease in loans from Senate contingent fund: 
2001: ($50,000); 
2000: ($50,000). 
		
Total direct support: 
2001: $700,000; 
2000: $700,000. 

Subsequent to September 30, 2001, the Fund has received its 
appropriated funds from the Architect for fiscal year 2002 and has 
budgeted them to support the Fund at current operating levels. In 
addition, subject to approval of the Committees on Appropriations of 
the House of Representatives and Senate, the Architect of the Capitol 
is scheduled to transfer approximately $550,000 to the Fund in fiscal 
year 2002 for down time and canceled business due to the effect on 
operations from the September 11, 2001 terrorist attack and the 
October 2001 anthrax incident. 

The Architect also provides other financial support that is not 
included in the Fund's financial statements. The Architect uses 
appropriated funds to purchase and maintain Restaurant-related capital 
items which remain the property of the Architect. For the fiscal year 
ended September 30, 2001 and 2000, this support totaled $109,584 and 
$133,033, respectively. Identifiable costs paid directly by the 
Architect on behalf of the Fund for these items in fiscal years 2001 
and 2000, are as follows: 

Equipment maintenance: 
2001: $8,664; 
2000: $10,869. 

China, glassware, silverware, and tableware: 
2001: [Empty]; 
2000: $9,266. 

Equipment purchases: 
2001: $100,920; 
2000: $112,898. 

Total: 
2001: $109,584; 
2000: $133,033. 

In addition, the Architect and the Government Printing Office use 
appropriated funds—the value of which cannot readily be determined—to 
provide the Fund with space, utilities, garbage disposal, and printing 
in support of Restaurant operations. If operating trends for the 
Restaurants continue, the Fund will require future support, as 
described above, to maintain continuing operations. 

Note 2: Summary Of Significant Accounting Policies: 

(a) Use Of Estimates: 

The preparation of financial statements in accordance with accounting 
principles generally accepted in the United States of America 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 could differ from 
management's estimates. 

(b) 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. 

(c) 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 cost 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. 

Additionally, the Architect of the Capitol may use Senate Office 
Building and Capitol Building appropriations to purchase china, 
glassware, silverware, and tableware for restaurant operations. 
Because these assets are owned by the Architect of the Capitol and not 
the Fund, they are not recorded in the Fund's financial statements. 

(d) Vendor Commissions Receivable: 

Vendor commissions receivable represents vending machine commissions 
earned in the current fiscal year but not received until after 
September 30. 

(e) Deferred Income: 

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

(f) 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 carryover a maximum of 240 hours each 
calendar year. 

Note 3: 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, 2001 and 2000 follows: 

Days Outstanding: 
			
0 to 30: 
2001 Amount: $71,314; 
2001 Percent: 47.0%; 
2000 Amount: $82,256; 
2000 Percent: 72.5%. 

31 to 60: 
2001 Amount: $10,854; 
2001 Percent: 7.0%; 
2000 Amount: $205; 
2000 Percent: 0.2%. 

61 to 90: 
2001 Amount: $25,110; 
2001 Percent: 16.0%; 
2000 Amount: $11,545; 
2000 Percent: 10.2%. 

Over 90: 
2001 Amount: $46,100; 
2001 Percent: 30.0%; 
2000 Amount: $19,483; 
2000 Percent: 17.1%. 

Total: 
2001 Amount: $153,378; 
2001 Percent: 100.0%; 
2000 Amount: $113,489; 
2000 Percent: 100.0%. 

In accordance with policies established by the Committee, the Fund's 
accounting office mails monthly delinquent notice letters. These 
letters are signed by the Architect and are mailed to customers whose 
accounts are delinquent for over 30 days. 

Note 4: Personnel And Benefits: 

Fund employees are covered by the Civil Service Retirement System 
(CSRS) or the newer Federal Employees' Retirement System (FERS), to 
which the Fund contributes. For employees covered by FERS, the Fund 
also contributes one percent of pay to the Thrift Savings Plan (TSP) 
and matches employee contributions to the TSP, up to an additional 
four 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 
during fiscal years 2001 and 2000 are listed in the following table: 

Pension-related and other benefits: 

CSRS: 
2001: $63,204; 
2000: $62,670. 

FERS: 
2001: $363,894; 
2000: $360,105. 

TSP: 
2001: $86,944; 
2000: $81,592. 

FEHBP: 
2001: $378,852; 
2000: $339,752. 

FEGLI: 
2001: $6,337; 
2000: $6,322. 

FICA: 
2001: $187,332; 
2000: $191,555. 

HIT: 
2001: $54,387; 
2000: $55,500. 

Leave expense: 
2001: $253,633; 
2000: $229,171. 

Employee meals: 
2001: $80,660; 
2000: $81,765. 

Others: 
2001: $22,233; 
2000: $13,826. 

Total benefits: 
2001: $1,497,476; 
2000: $1,422,258. 

Note 5: Financing Activities: 

In managing the Fund, the Architect has access to two types of 
supplemental funding: (1) appropriations, and (2) loans. Under 40 
U.S.C. 174j-4, 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. Also, 40 U.S.C. 174j-9 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 items appropriation account 
of the Senate's contingent fund and loan repayments are deposited to 
the same account. 

From October 1988 through September 1998, under the authority provided 
by 40 U.S.C. 174j-9, the Architect of the Capitol requested and 
received various loans from the Senate's contingent fund totaling 
$2,250,000. Since FY 1998, the fund has not received any new loans. 

Between October 1989 and September 1999, the Fund paid all but 
$450,000 of these loans with transfers of appropriated funds, referred 
to as "appropriated capital", pursuant to 40 U.S.C. 174j4, from the 
Senate's contingent expense appropriation account. During fiscal year 
1999, the Fund received transfers of appropriated capital from the 
Senate's contingent expense appropriations account totaling $890,000. 
The Fund used $540,000 of the $890,000 transfer received in fiscal 
year 1999 to repay loans from the Senate's contingent fund. These loan 
repayments reduced the outstanding balance of loans from the Senate's 
contingent fund at September 30, 1999 to $450,000. In fiscal years 
2000 and 2001, the Fund repaid $50,000 of the outstanding loan balance 
with operating funds, reducing the outstanding balance of loans at 
September 30, 2000 and 2001 to $400,000 and $350,000. The transfer of 
appropriated capital received during fiscal year 1999 increased the 
Fund's appropriated capital to $2,847,144 at September 30, 1999. No 
appropriated capital transfer was received by the Fund in fiscal years 
2000 and 2001. 

The loan outstanding at September 30, 2001 and September 30, 2000 is 
as follows: 
	
Loan issued October 1996, due by September 30, 2003: 
2001: $350,000; 
2000: $400,000. 

Note 6: Sales: 

The following schedule provides a comparison of sales and commissions 
for the various Fund activities during fiscal years 2001 and 2000. 

Food and beverage operations: 
				
Special functions: 
Fiscal Year 2001 Sales and commissions: $4,419,352; 
Fiscal Year 2001 Operating income (loss): $573,525; 
Fiscal Year 2000 Sales and commissions: $4,045,154; 
Fiscal Year 2000 Operating income (loss): $902,770. 

Capitol dining rooms and sundry: 
Fiscal Year 2001 Sales and commissions: $467,279; 
Fiscal Year 2001 Operating income (loss): ($404,673); 
Fiscal Year 2000 Sales and commissions: $406,599; 
Fiscal Year 2000 Operating income (loss): ($535,125). 

North Servery Cafeteria: 
Fiscal Year 2001 Sales and commissions: $2,261,198; 
Fiscal Year 2001 Operating income (loss): ($606,384); 
Fiscal Year 2000 Sales and commissions: $2,164,751; 
Fiscal Year 2000 Operating income (loss): ($604,253); 

South Buffet: 
Fiscal Year 2001 Sales and commissions: $282,112; 
Fiscal Year 2001 Operating income (loss): ($115,603); 
Fiscal Year 2000 Sales and commissions: $254,536; 
Fiscal Year 2000 Operating income (loss): ($136,370). 

Coffee shop[A]: 
Fiscal Year 2001 Sales and commissions: $19,016; 
Fiscal Year 2001 Operating income (loss): ($820); 
Fiscal Year 2000 Sales and commissions: $133,859; 
Fiscal Year 2000 Operating income (loss): ($37,677). 

Snack bar: 
Fiscal Year 2001 Sales and commissions: $190,696; 
Fiscal Year 2001 Operating income (loss): ($48,026); 
Fiscal Year 2000 Sales and commissions: $168,114; 
Fiscal Year 2000 Operating income (loss): ($57,081). 

Senate chef: 
Fiscal Year 2001 Sales and commissions: $726,875; 
Fiscal Year 2001 Operating income (loss): ($7,319); 
Fiscal Year 2000 Sales and commissions: $725,674; 
Fiscal Year 2000 Operating income (loss): ($49,367). 

Food and beverage operations: Total; 
Fiscal Year 2001 Sales and commissions: $8,366,528; 
Fiscal Year 2001 Operating income (loss): ($609,300); 
Fiscal Year 2000 Sales and commissions: $7,898,687; 
Fiscal Year 2000 Operating income (loss): ($517,103). 

Sundry shop operations: 

Southside Deli: 
Fiscal Year 2001 Sales and commissions: $263,857; 
Fiscal Year 2001 Operating income (loss): ($20,155); 
Fiscal Year 2000 Sales and commissions: $210,560; 
Fiscal Year 2000 Operating income (loss): ($18,443). 

Hart office building: 
Fiscal Year 2001 Sales and commissions: $406,726; 
Fiscal Year 2001 Operating income (loss): ($50,315); 
Fiscal Year 2000 Sales and commissions: $416,524; 
Fiscal Year 2000 Operating income (loss): ($29,747). 

Total sundry: 
Fiscal Year 2001 Sales and commissions: $670,583; 
Fiscal Year 2001 Operating income (loss): ($70,470); 
Fiscal Year 2000 Sales and commissions: $627,084; 
Fiscal Year 2000 Operating income (loss): ($48,190). 

Vending machine commissions and other operating income[A]: 
Fiscal Year 2001 Sales and commissions: $329,007; 
Fiscal Year 2001 Operating income (loss): $329,007; 
Fiscal Year 2000 Sales and commissions: $176,852; 
Fiscal Year 2000 Operating income (loss): $176,852. 

Sundry shop operations: Total	
Fiscal Year 2001 Sales and commissions: $9,366,118; 
Fiscal Year 2001 Operating income (loss): ($350,763); 
Fiscal Year 2000 Sales and commissions: $8,702,623; 
Fiscal Year 2000 Operating income (loss): ($1884). 

[A] The coffee shop operated for one month in FY 2001 and was replaced 
by the private subcontractor doing business as Cups and Company. 
Subcontract income was $49,784 for FY 2001. Also, in FY 2001, the 
vending machine commissions included a one-time settlement of $75,995. 

Note 7: Reclassifications: 

Certain amounts in the prior period have been reclassified to conform 
to the current year's presentation. These reclassifications have no 
effect on previously reported U. S. Government equity.
This information is an integral part of the accompanying financial 
statements. 

[End of Notes to Financial Statements] 

Footnotes: 	 

[1] Clifton Gunderson LLP audited the financial statements of the Fund 
as of September 30, 2001, and KPMG Peat Marwick LLP audited the 
financial statements of the Fund as of September 30, 2000. KPMG Peat 
Marwick LLP expressed an unqualified opinion on the Fund's fiscal year 
2000 financial statements. 

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

[3] 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. 

[End of section] 

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