Audit of the Food Service Contract with Marriott Corporation

GGD-77-10: Published: Dec 14, 1976. Publicly Released: Dec 14, 1976.

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The Marriott Corporation's records of the food service facility at the Congressional Visitors' Reception Area were audited.

The income of the facility from April 1 to September 6, 1976, was $121,382; the cost of sales was $42,689, operating expenses were $22,297, and other costs totaled $152,908. The facility showed a net loss of $130,611. Marriott's contract provided that Marriott could deduct from income: (1) the cost of equipment supplied plus installation and removal costs; (2) the cost of providing and installing asphalt; and (3) an amount equal to eight percent of sales for administrative overhead. The principal items included in other costs were site preparation, tent rentals, and depreciation of equipment. Marriott maintained a separate account in which the food service facility transitions for income and expense were recorded, and a weekly summary of income and expense transactions was generated.

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