Review of Specific Items at GPO

LCD-77-413: Published: Feb 11, 1977. Publicly Released: Oct 27, 1983.

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The Government Printing Office's (GPO) estimated 1975 administrative expenses of $11.7 million were considered too low. In conjunction with a review of the validity of the administrative expenses, the GPO's policy of handling discounts was examined, and determinations were made as to whether remodeling costs are being improperly charged as an expense item and where the Superintendent of Documents' administrative expenses were reported for fiscal years 1975 and 1976.

Total administrative expenses for fiscal year 1975 were about $14 million. Administrative expenses of $3.8 million were transferred to specific cost centers, leaving net administrative expenses of $10.2 million. Since 1970, the GPO has consistently reduced total administrative expenses by amounts which could be directly related to specific cost centers and reported only net administrative expenses. A fast discount clause was incorporated into all per price contracts in 1976 which limited the prompt payment discount to five percent. Any other discount is passed on to customer agencies. Some of the $138,075 spent on remodeling in 1976 should have been capitalized rather than expensed.

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