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B-161145 1 (1975-09-04)

handle is hein.gao/gaobabkni0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 GENERAL GOVERNMENT SEP 4 1975 DIVISION o 9 O Mr. J. Raymond Carroll Coordinating Engineer Architect of the Capitol 0 0 Dear Mr. Carroll: We reviewed the procedures followed by the Architect of the Capitol (Architect) in billing for steam sold to two Government agencies and a privately owned library. Our review was directed toward ascertaining if the rates being charged were sufficient to recover the costs of producing the steam sold. We also reviewed the status of the expansion being made to the chilled water system of the Capitol Power Plant which produces steam for heating and chilled water for air conditioning. We have no comments to make at this time concern- ing the expansion. We made our review pursuant to 31 U.S.C. 67. Our -eview disclosed that (1) the billing rates for sale of steam are not sufficient to recover the costs of producing steam and (2) the quantity of steam sold to the Government Printing Office (GPO) is not being measured. We are recommending that the Architect periodically compute billing rates for steam sales during each year using current operating costs and production. Action is being taken to install a meter to measure the amount of steam used by GPO. Our discussion of these matters is contained in the following sections. BILLING RATES NOT SUFFICIENT TO RECOVER COSTS OF PRODUCING STEAM The rate used by the Architect in billing for steam sold to two government agencies and a privately owned library does not recover the costs of producing steam. Our computations show that the Architect did not receive $215,599 in receipts from the sale of steam. The Architect .produces steam in its central power plant to heat 12 buildings on Capitol Hill. In addition, the Architect sells steam to the GPO, the main city post office in Washington, D. C., and the Folger Shakespear~en Library. 08 ~Cl (

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