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In an audit made of the Veterans Canteen Service of the Veterans Administration (VA) for 1978, GAO found the financial statements represented fairly the financial position of the Canteen Service. During fiscal year (FY) 1978, the Service operated canteens at each VA medical center and domiciliary located in the United States and Puerto Rico. Services were available to a daily average of about 81,700 veterans in VA medical centers and domiciliaries and about 52,500 outpatients. Sales totaled $119.6 million and food and beverage vending machine revenue totaled $2.3 million. Net operating income was $4.3 million, an increase of 104 percent over the previous year. Because of its mission, the Service establishes prices as low as or lower than community prices and, to the extent possible, maintains uniform prices. This can lead to losses at smaller canteens. In FY 1978, 52 canteens operated at net losses totaling $514,835. No canteens were closed during the year and no new canteens were opened.

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