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B-162878 1 (1970-04-06)

handle is hein.gao/gaobabkrv0001 and id is 1 raw text is: RE71TU - Not toe relesed &E~sde the General -/Z4 .. . WASHiNGTON. DC 2,848 B-162878 RELEA4ED A PR 6 1970 Dear Madam Chairman: The General Accounting Office has made an audit of the financial transactions of the House Beauty Shop for calendar year 1969, pursuant to your request received on December 15, 1969. Our audit included an examination of selected financial transactions, appropriate tests of the accounting records, and such other auditing procedures as we con- sidered necessary. GENERAL COMMENTS The House Beauty Shop was originally established about 1932. The shop was reorganized on December 11, 1967, pursuant to House Resolution 1000, Ninetieth Congress, which created a Select Committee on the House Beauty Shop, placed management of the shop and all matters connected therewith under the direction of the Select Committee, and authorized use of the contingent fund of the House for the cost of initial equip- ment and materials not to exceed $15,000. As of December 31, 1969, repayments totaling $10,000 had been made to the Clerk of the House for deposit to the contingent fund as is shown in the Comparative Statement of Assets, Liabilities, and Equity (schedule 1). The purpose of the Beauty Shop is to provide convenient beauty facilities for Congresswomen, wives of Congressmen, and female congres- sional employees. At December 31, 1969, the staff of the shop consisted of the manager, a receptionist, two maids, four manicurists, an electrol- ogist, and 15 beauticians. The House Beauty Shop is operated by a manager, Mrs. Betty Jane Oszust, under a fixed-fee contract. The managerts fee, compensation of the staff, and all expenses of the shop are paid from shop receipts. As shown in the Comparative Statement of Income, Expenses, and Retained Earnings (schedule 2), the shop realized a net income of $8,625 in calendar year 1969 compared with $3,136 in calendar year 1968. The Legislative Branch Appropriation Act, 1970 (Public Law 91-145, approved Dec. 12, 1969, 83 Stat. 338), made the Select Committee on the House Beauty Shop a permanent committee; established effective January 1, 1970, a revolving fund in the U.S. Treasury; provided for audits of the

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