About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

093578 1 (1973-12-12)

handle is hein.gao/gaobacxgi0001 and id is 1 raw text is: 0U357- UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON REGIONAL OFFICE FIFTH FLOOR q3 7L 803 WEST BROAD STREET FALLS CHURCH, VIRGINIA 22046 Mr. Harry Osolin, Chief Finance Division Veterans Canteen Service Veterans Administration Washington, D.C. 20420 BEST DOCUMENT AVAILABLE Dear Mr. Osolin As you know, we have completed our audit of the Veterans Canteen Service's (VCS) fiscal year 1973 financial statements and our report to the Congress is in preparation. We thought it would be useful to summarize for you certain matters which will not be included in our report but which we feel offer opportunity for improvements in the financial management area. These matters have been discussed with you and other VCS officials, and comments received have been included as appropriate. Revised Accounting Procedures for Contract Income Will Improve Financial Statement Presentation VCS receives substantial commission income from automatic food and beverage sales. A memo entry is kept of contractor sales of these items, and fot statement purposes VCS includes these with regular VCS sales The difference between contractor sales and commissions received is included as cost of sales. This practice overstates both sales and cost of sales In fiscal year 1973, food department sales of $27 million included $9 million from automatic food and beverage operations Although %e could not readily deter- mine the approximate portion, we were informed that a substantial part of the $9 million would be contractor sales. The General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies, title 2, subsection 15.1, states that Revenues represent the increase in assets (or decrease in liabilities) which results from operations You might be interested in knowing that the American Institute of Certified Public Accountants' position is that revenue be conventionally recorded at the amount received or expected to be received. Contract sales do not increase VCS assets by the total amount of the sales nor does VCS receive the total amount

What Is HeinOnline?

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.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most