HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaacfw0001 and id is 1 raw text is:
DOCUMENT '.ESURE
02182 - 1-11572550]
Examination of Financial Statements of Federal Prison
Industries, Inc., Fiscal Year 1976. FOD-77-03; B-114826. May 31,
1977. 13 pp.
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Accounting and Financial Reporting (2800).
Contact: Field Operations Div.
Budget Function: Lrv Enforcement and Justice: Federal
Cocrectional anld Rehabilitative Activities (753).
Organizaticn Concerned: Federal Prison Industries, Inc.;
Departaent of Justice.
Congressional Relevance: House Committee on the Judiciary;
Senate Committee on the Judiciary; congress.
Authority: 18 U.S.C. 4121.
The primary purpose of the Federal Prison Industries,
Inc., a wholly owned Government Corporation which functions
within the Department of Justice, is to give inmates an
opportunity to obtain training in -arketable skills and avoi!
idleness through employment. Findings/Conclusions: During
fiscal year 1976, the Corporation operated 58 shops and
factories at 25 Federal institutions. During this year, the
Corporation altered its treatment of certain costs wvkh
previously were considered administrative expenses. The change
was necessary to insure proper recording of these costs, taking
into account the Corporation's reorganization along product
lines. The costs related to sales, administration, and
production functions will now be accounted for as direct product
costs and ultimately expensed as an element of cost of goods
sold. Before this new treatment, they were subject to an annual
congressional limitation. The change in accounting for these
costs had no effect cn corporate net income, but factvry
overhe,-i costs increased by $1,001,029, and administrative
expenses decreased from the previous year. The financial
statements included in this report present fairly the financial
position of the Corporation at June 30, 1976 and June 30, 1975;
the results of its operations for the years then ended; and
changes in its financial position for the year endel June 30,
1976. (Author/SC)](ViewImageLocal?handle=hein.gao/gaobaacfw0001&div=1&collection=&method=preview&ext=.png&size=3)