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.
- Full Report:
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.