United States

House of

Representatives

Financial

Audit Report

April 26, 2016 | Report No. 16-HSW-04

Audit of the Financial Statements 

for the Fiscal Year Ended September 30, 2015

2015

TABLE OF CONTENTS

Office of Inspector General Audit Report Summary .......................................................................... 3

Management’s Discussion and Analysis ..............................................................................................7

Independent Auditor’s Report..............................................................................................................15

Chief Administrative Officer’s Audit Report Response .................................................................... 29

Fiscal Year 2015 Financial Statements................................................................................................ 33

Consolidated Balance Sheets ................................................................................................... 36

Consolidated Statements of Net Cost ........................................................................................37

Consolidated Statements of Changes in Net Position ................................................................. 38

Combined Statements of Budgetary Resources......................................................................... 39

Notes to the Financial Statements ......................................................................................................41

Required Supplementary Information ................................................................................................ 63

Other Information..................................................................................................................................67

Combined Schedule of Spending.............................................................................................. 69
2 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Office of Inspector General Audit Report Summary | 3

Office of Inspector General 

Audit Report Summary
4 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Office of Inspector General Audit Report Summary | 5

ANNUAL FINANCIAL STATEMENTS 

FISCAL YEAR 2015 

SUMMARY 

This report presents the audited Annual Financial Statements of the U.S. House of Representatives 

(House) for the fiscal years ended September 30, 2015 and 2014. We contracted with Cotton and 

Company LLP, a certified public accounting firm, to perform an audit of the House’s financial 

statements, and to report on internal control over financial reporting and on any reportable 

noncompliance with tested laws and regulations. The contract required that the audit be performed in 

accordance with auditing standards generally accepted in the United States of America. 

For the eighteenth consecutive year, the independent auditors expressed an unmodified opinion on 

the House’s financial statements, a noteworthy accomplishment for the House. An unmodified 

opinion means that the financial statements present fairly, in all material respects, the financial 

position and the results of the entity’s operations in conformity with U.S. generally accepted 

accounting principles. 

Cotton and Company LLP closed the prior year significant deficiency related to ineffective controls 

over financial reporting processes. However, the independent auditors reported two significant 

deficiencies1 relating to ineffective controls over information technology and property and

equipment. Management concurred with the auditor’s report and continues to implement corrective 

actions related to the outstanding issues. 

The auditors identified no instances of non-compliance with applicable laws and regulations. 

Cotton and Company LLP is responsible for the attached auditor’s report dated March 30, 2016 and 

the conclusions expressed therein. The Office of Inspector General does not express an opinion on 

the House’s financial statements, the effectiveness of internal control over financial reporting, or 

conclusions on compliance with laws and regulations. 

We would like to thank House management and staff for their assistance and cooperation during the 

course of this audit. 

1

 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control, that is less severe than a 

material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. 
6 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Management’s Discussion and Analysis (unaudited) | 7

Management’s Discussion 

and Analysis
8 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Management’s Discussion and Analysis (unaudited) | 9

MANAGEMENT’S DISCUSSION AND ANALYSIS

FISCAL YEAR 2015

Introduction

Management’s Discussion and Analysis (MDA) provides 

a high level overview of the origin and mission of the U.S. 

House of Representatives (House). Fiscal Year (FY) 2015 

(October 1, 2014 – September 30, 2015) coincided with 

sessions of the 113th and 114th U.S. Congresses.

Origin, History, and Mission

The House is one of two legislative chambers that comprise 

the Congress of the United States (the other is the U.S. 

Senate). Article I, Section 1 of the Constitution, adopted 

by the Constitutional Convention on September 17, 1787, 

created and vested all legislative powers to the Congress. 

Location, Size, and Organization

The House chamber is located in the U.S. Capitol in 

Washington, D.C. Other House administrative buildings in 

Washington, D.C. include the Cannon, Longworth, Rayburn 

and Ford House Office Buildings; and the O’Neill Federal 

Building. 

Law fixes the number of voting representatives in the 

House at no more than 435, proportionally representing 

the population of the 50 states. Also referred to as a 

congressman or congresswoman, each representative is 

elected to a two-year term serving the people of a specific 

congressional district. Among other duties, representatives 

introduce bills and resolutions, offer amendments and serve 

on committees. To be elected, a representative must be at 

least 25 years old, a United States citizen for at least seven 

years and an inhabitant of the state he or she represents.

Article 1, Section 2 of the Constitution provides for 

both the minimum and maximum sizes for the House 

of Representatives. Currently, there are five delegates 

representing the District of Columbia, the Virgin Islands, 

Guam, American Samoa, and the Commonwealth of 

the Northern Mariana Islands. A resident commissioner 

represents Puerto Rico. The delegates and resident 

commissioner possess the same powers as other members of 

the House, except that they may not vote when the House is 

meeting as the House of Representatives. 

The Rules of the House, adopted at the beginning of each 

new Congress, allow for the creation of standing and special 

and select committees. The Committees of the House under 

the 113th and 114th Congresses are: 

Committee on Agriculture

Committee on Appropriations

Committee on Armed Services

Committee on the Budget

Committee on Education and the Workforce 

Committee on Energy and Commerce

Committee on Ethics 

Committee on Financial Services

Committee on Foreign Affairs

Committee on Homeland Security

Committee on House Administration

Committee on the Judiciary

Committee on Natural Resources

Committee on Oversight and Government Reform

Committee on Rules

Committee on Science, Space, and Technology 

Committee on Small Business

Committee on Transportation and Infrastructure

Committee on Veterans’ Affairs

Committee on Ways and Means

Permanent Select Committee on Intelligence

Select Committee on Benghazi

The joint committees are: the Joint Economic Committee, 

the Joint Committee on the Library, the Joint Committee on 

Printing and the Joint Committee on Taxation.
10 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

House Leadership

Article I, Section 2 of the Constitution states, “The House 

of Representatives shall chuse (sic) their Speaker and other 

officers.” In addition to the Speaker, each political party in 

the House has a leadership hierarchy, typically including 

a Majority Leader, Minority Leader, Majority Whip, and 

Minority Whip. 

House Officers and Organizations

Rule II of the Rules of the House for the 113th and 114th 

Congresses provided for the election of four officers to 

support House operations: a Clerk, a Sergeant at Arms, a 

Chief Administrative Officer and a Chaplain. The Rules of 

the House also established the Offices of Inspector General, 

Historian and General Counsel.

Under House Rule II, the Chief Administrative Officer 

has “operational and financial responsibility for functions 

as assigned by the Committee on House Administration 

and shall be subject to the policy direction and oversight 

of the Committee on House Administration.” According 

to Committee on House Administration records, the 

Chief Administrative Office has been designated as the 

disbursing officer for the House of Representatives since 

July 1, 1995. Additionally, House Rule II requires the 

Chief Administrative Officer to “fully cooperate with 

the appropriate offices and persons in the performance of 

reviews and audits of financial records and administrative 

operations.” Accordingly, an audit of the financial 

statements of the House, as prepared by the Chief 

Administrative Officer, is performed annually. 

FINANCIAL STATEMENT HIGHLIGHTS

Basis of Accounting and Presentation

The FY 2015 financial statements present the financial 

position, net cost of operations, changes in net position and 

budgetary resources of the House. These statements have 

been prepared in accordance with U.S. Generally Accepted 

Accounting Principles (GAAP) issued by the Federal 

Accounting Standards Advisory Board (FASAB) and the 

applicable form and content requirements of the Office 

of Management and Budget’s (OMB) Circular No. A-136, 

Financial Reporting Requirements. 

The House’s accounting structure, in accordance with 

GAAP, utilizes both accrual and budgetary accounting. 

Under accrual accounting, events are recognized as they 

occur, as opposed to when cash is received or disbursed. 

Therefore, revenues are recorded when earned and expenses 

are recorded when a liability is incurred, without regard to 

receipt or payment of cash. The budgetary accounting, on 

the other hand, facilitates compliance with legal constraints 

on, and controls over, the use of Federal funds. As a result, 

certain line items on the proprietary financial statements 

may not equal similar line items on the budgetary financial 

statements.

Budgetary Resources

The House finances most of its operations through 

congressional appropriations of budget authority. To the 

extent that revenue generated by some House activities does 

not cover expenses, appropriations are required. The House 

receives annual, multi-year and no-year appropriations 

that may be used, within statutory limits, for operating 

and capital expenditures. A financing source is recognized 

for these appropriated funds received, less appropriations 

transferred or not available through rescission or 

cancellation. The House usually receives the full amount 

of its appropriation at the beginning of each fiscal year as 

stated in the public law. The House reported total budgetary 

resources for FY 2015 of $1.5 billion, up 3 percent from 

FY 2014. The House reported $87 million of total unpaid 

obligated balances as of September 30, 2015.

3%

0%

1%

2014: $1.462B

2015: $1.245B

2015: $1.271B

2015: $1.505B

2014: $1.233B

2014: $1.269B

$0.0B $0.5B $1.0B $1.5B

Net

Outlays

Obligations

Incurred

Total Budgetary

Resources

Obligations Incurred increased by $2 million in FY 2015. 

Net Outlays increased by $12 million in FY 2015.
Management’s Discussion and Analysis (unaudited) | 11

Balance Sheet 

Condensed Balance Sheet Data

Dollars in Millions 2015 2014 % Change

Fund Balance with Treasury $320 $279 15%

Property and Equipment, Net 24 19 26%

Other Assets 12 6 100%

Total Assets $356 $304 17%

Accounts Payable 24 28 -14%

Actuarial Federal Employees’ 

Compensation Act Liabilities 32 35 -9%

Other Liabilities 20 17 18%

Total Liabilities $76 $80 -5%

Unexpended Appropriations 263 217 21%

Cumulative Results of 

Operations 17 7 143%

Total Net Position $280 $224 25%

Total Liabilities and 

Net Position $356 $304 17%

Total Assets – The House reported total assets of $356 

million as of September 30, 2015, a 17 percent increase 

from prior year total assets of $304 million. The Fund 

Balance with Treasury (FBwT) of $320 million represents 

the primary asset on the Balance Sheet of the House 

(90 percent of total assets). The net increase to FBwT of 

approximately $41 million is due to overall spending for 

FY 2015 being approximately $55 million less than the 

total House appropriation received of approximately $1.3 

billion; and funds returned through surplus warrants to the 

U.S. Treasury. The House typically does not spend its entire 

appropriation in the first year as funds are available for 

spending over a three year period from the time received.

Property and Equipment is the second largest asset, with a 

net balance of $24 million. The major items in this category 

include computer software and hardware, and equipment. 

The net increase of approximately $5 million can be 

attributed to $17 million in new asset purchases offset by 

$12 million in net disposals and depreciation.

Other Assets include Cash, Accounts Receivable, Inventory 

and Operating Materials and Supplies, and Advances and 

Prepayments. The majority of the increase in Other Assets 

is primarily due to Prepayments.

Total Liabilities – The House reported total liabilities of 

$76 million as of September 30, 2015, a 5 percent decrease 

from the prior year total of $80 million. The primary 

categories include Accounts Payable of $24 million 

(32 percent of total liabilities) and Actuarial Federal 

Employees’ Compensation Act (FECA) Liabilities of $32 

million (42 percent of total liabilities). Accounts Payable 

is an estimate and decreased by 14 percent as the result of 

an analysis of spending trends in historical data and the 

first two months’ financial activity of the subsequent FY. 

Actuarial FECA Liabilities decreased due to an overall 

decrease in Workers’ Compensation expenses. 

Other Liabilities include categories such as Accrued Payroll 

and Benefits, Accrued Annual Leave, Advances from 

Others and Other Liabilities. Workers’ Compensation is a 

part of Other Liabilities and represents the most significant 

portion of the overall 18 percent increase. This increase 

was the result of the timing of the payment of the accrued 

liability between FY 2014 and FY 2015. 

Total Net Position – The Net Position as of 

September 30, 2015 was $280 million, an increase of $56 

million (25 percent) from the prior fiscal year. The balance 

was primarily comprised of Unexpended Appropriations of 

$263 million. The increase in Unexpended Appropriations 

is due to a combination of spending being $55 million less 

than appropriations received offset by $9 million of funds 

returned through surplus warrants to the U.S. Treasury.

Statement of Net Cost

Net Cost of Operations – The Net Cost of Operations 

for FY 2015 was $1.5 billion, a 1 percent decrease from 

FY 2014, primarily comprised of Legislative Activities. 

Limitations of the Financial Statements

The principal financial statements have been prepared to 

report the financial position and results of operations of the 

entity. While the statements have been prepared from the 

books and records of the House in accordance with GAAP 

for federal entities and in the formats prescribed by OMB, 

the statements are in addition to the financial reports used to 

monitor and control budgetary resources that are prepared 

from the same books and records. The statements should be 

read with the realization that they are for a component of the 

U.S. Government, a sovereign entity. 
12 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Management’s Discussion and Analysis (unaudited) | 13

Internal Control Assessment

OMB Circular A-123, Appendix A Review

The Internal Control Assessment is a review of the design and operating effectiveness of key internal 

control activities for the CAO’s business processes, for safeguarding of assets, and for compliance with 

applicable laws and regulations. The Program follows a risk-based approach in determining the key 

controls to be assessed during the current year in accordance with Appendix A of OMB Circular A-123, 

Management’s Responsibility for Internal Control.

Under Rule II of the Rules of the U.S. House of Representatives (the House) for the 113th Congress, as 

amended, the CAO has “operational and financial responsibility for functions as assigned by the 

Committee on House Administration.” The Rule further requires the CAO to “fully cooperate with the 

appropriate offices and persons in performance of reviews and audits of financial records and 

administrative operations.”

A Senior Assessment Team (SAT) exists to provide senior management oversight for assessment of 

internal controls over financial reporting as they relate to budgetary and financial policies, standard 

operating procedures and business systems. The SAT has held meetings, as needed, to report on the 

findings and status to date, and discuss remediation efforts. The Internal Controls Program supports the

SAT in performing the day-to-day functions of the program.

The SAT assessed and evaluated the CAO’s compliance with Appendix A of OMB Circular A-123 

requirements as of June 30, 2015, and determined that as of September 30, 2015 the deficiencies related 

to property, plant, and equipment identified continued to be significant. As of June 30, 2015, the internal 

controls over financial reporting were operating effectively.

Office of the Inspector General (OIG) Assessment for Previous Fiscal Year

Under House Rule II of the House for the 113th Congress, the Office of the Inspector General (OIG) 

provides “audit, investigative, and advisory services to the House and joint entities in a manner consistent 

with government-wide standards.” For FY 2014, the OIG engaged Cotton & Company LLP to perform 

the external audit of the House’s financial statements. The House received an unmodified audit 

opinion. Cotton & Company LLP did not report any material weakness in FY 2014. The audit report 

noted three significant deficiencies related to ineffective controls over property and equipment, the 

financial reporting process, and information technology. Cotton & Company LLP remains the financial 

statements auditor for FY 2015.

Table 1 – Summary of the Financial Statement Audit for FY 2015

Independent Auditor’s Report

Audit Opinion Unmodified

Restatement No

Name of Material Weakness Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

None 0 0 0 0 0 0

Table 2 – FY 2015 Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA §2)

Statement of Assurance Unqualified

Name of Material Weakness Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

None 0 0 0 0 0 0
14 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Independent Auditor’s Report | 15

Independent Auditor’s Report
16 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Independent Auditor’s Report | 17

1

INDEPENDENT AUDITORS’ REPORT

To the Inspector General

U.S. House of Representatives

In our audits of the fiscal years (FY) 2015 and 2014 financial statements of the U.S. House of 

Representatives (House), we found:

• The financial statements as of and for the FYs ended September 30, 2015 and 2014, are 

presented fairly, in all material respects, in accordance with accounting principles generally 

accepted in the United States of America.

• No material weaknesses in internal control over financial reporting as of September 30, 2015.

• Two significant deficiencies in internal control over financial reporting as of September 30, 2015. 

• No reportable noncompliance in FY 2015 with the provisions of applicable laws, regulations, and 

contracts that we tested. 

The following sections contain:

1. Our report on the House financial statements, including required supplementary information 

and other information included with the financial statements.

2. Other reporting required by Government Auditing Standards, which includes: a) our report on 

the House’s internal control over financial reporting; b) our conclusions on the House’s 

compliance with laws, regulations, and contracts; and c) the House’s comments on a draft of this 

report. 

REPORT ON THE FINANCIAL STATEMENTS 

We have audited the accompanying consolidated balance sheets of the House as of September 30, 2015

and 2014, and the related consolidated statements of net cost, consolidated statements of changes in 

net position, and combined statements of budgetary resources for the years then ended, and the 

related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with accounting principles generally accepted in the United States of America; this includes 

the design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or 

error.
18 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

2

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; standards applicable to financial statement audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and as applicable, Office of 

Management and Budget (OMB) Bulletin No. 15-02, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 15-02 require that we plan and perform the audit to 

obtain reasonable assurance about whether the financial statements are free from material 

misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 

the financial statements. The procedures selected depend on the auditor's judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or 

error. In making those risk assessments, the auditor considers internal control relevant to the entity's 

preparation and fair presentation of the financial statements in order to design audit procedures that 

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of 

significant accounting estimates made by management, as well as evaluating the overall presentation of 

the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion.

Opinion 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

consolidated financial position of the House as of September 30, 2015 and 2014, and its consolidated 

net cost, consolidated changes in net position, and combined budgetary resources for the years then 

ended, in accordance with accounting principles generally accepted in the United States of America. 

Other Matters

Required Supplementary Information 

Accounting principles generally accepted in the United States of America, and as applicable, OMB 

Circular No. A-136, Financial Reporting Requirements, require that the Management’s Discussion and 

Analysis and other required supplementary information be presented to supplement the basic financial 

statements. Such information, although not a part of the basic financial statements, is required by the 

Federal Accounting Standards Advisory Board (FASAB) and OMB, who consider it to be an essential part 

of financial reporting for placing the basic financial statements in an appropriate operational, economic, 

and historical context. We have applied certain limited procedures to the required supplementary 

information in accordance with auditing standards generally accepted in the United States of America. 

These procedures consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management's responses to our 

inquiries, the basic financial statements, and other knowledge we obtained during our audits of the 

basic financial statements. We do not express an opinion or provide any assurance on the information 

because the limited procedures do not provide us with sufficient evidence to express an opinion or 

provide any assurance.
Independent Auditor’s Report | 19

3

Other Information 

Our audits were conducted for the purpose of forming an opinion on the basic financial statements as a 

whole. The Schedules of Spending for the FYs ended September 30, 2015 and 2014, are presented for 

purposes of additional analysis and are not a required part of the basic financial statements. This 

information has not been subjected to auditing procedures and, accordingly, we do not express an 

opinion or provide any assurance on it.

OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS

Report on Internal Control and on Compliance

Internal Control Over Financial Reporting 

In planning and performing our audit of the FY 2015 financial statements, we considered the House's 

internal control over financial reporting (internal control) to determine the audit procedures that are 

appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, 

but not for the purpose of expressing an opinion on the effectiveness of the House’s internal control. 

Accordingly, we do not express an opinion on the effectiveness of the House’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies, in internal control, such that there is a reasonable possibility that a material 

misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a 

timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control 

that is less severe than a material weakness, yet important enough to merit attention by those charged 

with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph of this 

section and was not designed to identify all deficiencies in internal control that might be material 

weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any 

deficiencies in internal control that we consider to be material weaknesses. However, material 

weaknesses may exist that have not been identified. 

Significant Deficiencies

We identified the following deficiencies in the House’s internal control that we consider to be significant 

deficiencies:

1. Ineffective Control Over Property and Equipment

2. Ineffective Control Over Information Technology

These deficiencies in internal control are described in more detail in Appendix A.

Limitations of Internal Control

Because of inherent limitations in internal control, misstatements due to error or fraud, losses, or 

noncompliance may nevertheless occur and not be detected. We also caution that projecting our 

evaluation to future periods is subject to the risk that controls may become inadequate because of 

changes in conditions, or that the degree of compliance with controls may deteriorate.
20 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

4

Compliance with Laws, Regulations, and Contracts

As part of obtaining reasonable assurance about whether the House’s financial statements are free from 

material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, and contracts, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts. However, providing an opinion on compliance with those 

provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 

We did not test compliance with all laws and regulations applicable to the House. We limited our tests 

of compliance to those provisions of laws and regulations OMB audit guidance requires that we test and

we deemed applicable to the financial statements for the FY ended September 30, 2015. We caution 

that noncompliance may have occurred and may not have been detected by these tests, and that such 

testing may not be sufficient for other purposes. The results of our tests disclosed no instances of 

noncompliance or other matters that are required to be reported under Government Auditing Standards

or OMB audits.

House’s Response to Findings

The House’s response to the findings identified in our audit is included in Appendix B. The House 

concurred with the findings and recommendations in our report. The House’s response was not 

subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, 

we express no opinion on it.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of this communication regarding other reporting required by Government Auditing 

Standards is solely to describe the scope of our testing of internal control and compliance and the 

results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control 

or on compliance. This communication is an integral part of an audit performed in accordance with 

Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, 

this communication is not suitable for any other purpose.

COTTON & COMPANY LLP 

Catherine L. Nocera, CPA, CISA

Partner 

Alexandria, VA 

March 30, 2016
Independent Auditor’s Report | 21

5

APPENDIX A

SIGNIFICANT DEFICIENCIES NOTED DURING THE

FY 2015 FINANCIAL STATEMENT AUDIT
22 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

6

During our audit of the House’s FY 2015 financial statements, we identified two significant deficiencies 

in internal control, described in this appendix. We do not consider these deficiencies to be material 

weaknesses. 

Finding 1: Ineffective Controls Over Property and Equipment

Summary Status: Prior-Year Significant Deficiency

Open

The House’s property and equipment (property) records are not always accurate, and property included 

in account balances may not exist. In addition, the House’s procedures for conducting physical 

inventories of Office of the Chief Administrative Officer (CAO) property do not include inventories of 

software items.

In response to prior-year recommendations regarding internal control deficiencies over property, the 

House has begun to implement corrective actions; however, it requires additional time to design and 

implement an effective system of internal control over property. Specifically, the CAO accomplished the 

following during FY 2015:

• The House established a formalized governance structure that included appointing a Chief 

Logistics Officer, who reports to the CAO, and established the Office of Asset Management 

(OAM) to develop, execute, and manage all processes related to the property life cycle. OAM is

responsible for the design and operating effectiveness of the House’s property management 

procedures, and for compliance with accounting standards, property laws and regulations, and 

House policies.

• OAM updated business process maps and assessed operational capabilities for the various 

processes within the property life cycle. In addition, during the fourth quarter of FY 2015, OAM 

had implemented some changes to the disposal process. As of September 30, 2015, however,

OAM had not fully designed, implemented, documented, and tested all of the standard 

operating procedures, and it does not plan to complete full implementation until the end of FY 

2016.

• For the second consecutive year, during FY 2015, CAO contracted with a third-party vendor to 

perform a physical inventory of accountable and capitalized property assigned to the CAO’s 

office. The number of missing items (i.e., items not found during the FY 2015 inventory)

decreased significantly from FY 2014, as shown below; however, we noted that software was 

not included in the scope of the physical inventory during FY 2015 and FY 2014.

Table 1. Items Not Found During Physical Inventories

Fiscal

Year

Number of

Items

Acquisition Cost/

Accumulated Depreciation 

2014 1,221 $38,647,301

2015 22 3,138,227

Difference (1,199) $(35,509,074)
Independent Auditor’s Report | 23

7

During the inventory process, the House identified 47 fully depreciated1 capitalized items that were not 

initially found, and needed more research to determine their status. Upon further review, the House 

located 16 of the items, determined that 2 items were duplicates, and determined that 29 items with a 

total acquisition cost of $1,841,497 did not exist2

. The 29 items were recorded in the accounting system 

as “disposed” on January 12, 2016, after the draft financial statements were submitted for audit. 

Accordingly, the acquisition cost and accumulated depreciation were overstated in Footnote 5, General 

Property and Equipment, Net.

During our audit, we tested a sample of 62 capitalized property items for existence and other attributes. 

These items included 29 items acquired during FY 2015 (additions), 4 items with a NBV greater than 

zero, and 29 items with a NBV of zero. We identified the following exceptions:

• Two software items with a NBV of zero and an acquisition cost totaling $343,910 were no longer

in service and had not been removed from the property records.

• One equipment item with a NBV of zero had components with an acquisition cost of $17,736 

that were removed from service during FY 2015; however, the asset’s acquisition cost and 

accumulated depreciation were not adjusted accordingly.

• A total of 3 of the 29 capitalized property additions and 1 of the 29 items with a NBV of zero had 

incorrect or missing asset identification tags.

• One of the 29 capitalized property additions had the incorrect serial number.

• A total of 12 of the 29 capitalized property additions and 3 of the 29 items with a NBV of zero 

had incorrect physical locations.

We also compared items transferred to the General Services Administration (GSA) per the House’s 

transfer manifests (Standard Form -126) to the items on the House’s property listing as of September 

30. We identified eight items (one capitalized and seven accountable) that were listed as transferred to 

GSA per the transfer manifests but that were still in service per the House’s property records. The House 

stated that six of these items were not shipped to GSA; they were originally recorded as disposed in the 

property system, and when they were later added back to the property records, the transfer manifests 

were not corrected. The remaining two items were inappropriately added back into service during the 

CAO inventory reconciliation process.

FASAB Statements on Federal Financial Accounting Standards (SFFAS) No. 6, Accounting for Property, 

Plant, and Equipment, states:

In the period of disposal, retirement, or removal from service, general PP&E [property] shall be 

removed from the asset accounts along with associated accumulated depreciation/amortization.

 1 Net book value (NBV) is the acquisition value of an asset less accumulated depreciation. A fully depreciated asset 

with no residual value will have a NBV of $0.

2 These 29 items were not included in Table 1. Items Not Found During Physical Inventories, because they were still

being researched when the original inventory results were compiled.1. Items Not Found During Physical 

Inventories
24 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

8

The U.S. Government Accountability Office’s (GAO) Standards for Internal Control in the Federal 

Government states:

A subset of these objectives is the safeguarding of assets. Internal control should be designed to 

provide reasonable assurance regarding prevention of or prompt detection of unauthorized 

acquisition, use, or disposition of an agency’s assets.

GAO’s Standards for Internal Control in the Federal Government also states:

Transactions should be promptly recorded to maintain their relevance and value to management 

in controlling operations and making decisions. This applies to the entire process or life cycle of a 

transaction or event from the initiation and authorization through its final classification in 

summary records. In addition, control activities help to ensure that all transactions are 

completely and accurately recorded.

Because of these internal control deficiencies, the House’s property records were overstated by a 

known error of $2,203,143, with a likely overstatement of $6,231,705. In addition, without effective 

internal controls, the risk of material misstatements in the financial statements is increased and 

accountability is diminished. 

We recommend that the CAO continue to design and implement property process improvements and 

internal control activities, including:

• Completing the design, implementation, testing, and monitoring of the process and standard 

operating procedures changes that were began in FY 2015, or that will be made during FY 2016.

• Updating documentation of business process maps and standard operating procedures showing 

full operational capabilities and key control activities.

• Providing training to management and process owners responsible for property life cycle 

processes, internal control, compliance, and accounting activities.

• Performing robust physical inventories that include software items.

Finding 2: Ineffective Control over Information Technology

Summary Status: Prior-Year Significant Deficiency

Open

During FY 2015, the House continued to make progress in improving its internal controls over 

information technology (IT). It successfully remediated prior-year deficiencies concerning segregationof-duties conflicts and tracking of information security weaknesses; however, it is still in the process of 

fully implementing a risk management framework, including maintenance of system security plans 

(SSPs) and implementation of baseline configurations. We first identified and reported the issues 

concerning the risk management framework in FY 2009. In addition, there are still other areas for 

improvement in strengthening controls surrounding financial systems. 

We noted the following control deficiencies related to internal controls over information systems, which 

collectively represent a significant deficiency. An element of this significant deficiency has been omitted 

because it contains sensitive information. We have communicated this element containing sensitive 

information to the Inspector General in a separate restricted distribution report.
Independent Auditor’s Report | 25

9

1. The House has not fully implemented procedures to ensure that all major systems within its IT 

environment have undergone a risk management process.

2. The House has not fully developed and maintained SSPs for major financial systems.

3. The House has not adequately designed and implemented audit logging and monitoring controls 

for financial applications.

4. The House does not actively monitor and review access to PeopleSoft shared group accounts.

We discuss each of these deficiencies below and provide our recommendations for improvement.

1. The House has not fully implemented procedures to ensure that all major systems within its IT 

environment have undergone a risk management process.

The House did not complete risk management framework activities in accordance with National Institute 

of Standards and Technology (NIST) guidance for PeopleSoft, Human Resource Information Systems 

(HRIS), FinMart, the House Network, and Active Directory. Specifically, SSPs continue to need 

improvement, control assessment processes are not fully implemented, and the continuous monitoring 

program has not been finalized. As a result of these limitations, all in-scope systems authorized in FY 

2015 received “Authority to Operate” (ATO) with specific terms and conditions. The ATO was granted 

because the necessity of continuing to operate the system outweighed the risks presented by the 

identified control deficiencies; however, the terms and conditions state that the ATO is contingent upon 

the House making progress in mitigating system weaknesses.

NIST Special Publication (SP) 800-37, Revision 1, Guide for Applying the Risk Management Framework to 

Federal Information Systems: A Security Life Cycle Approach, indicates that an organization must assess 

its security controls before authorizing the information system to operate. During FY 2015, the CAO did 

achieve a significant milestone in implementing a formal risk management framework by developing an 

Assessment and Authorization Plan to reach full implementation status. The plan’s projects are 

scheduled for completion by December 2017.

Without completing risk management framework activities, management cannot obtain adequate 

assurance that the general IT environment and all information systems are operating with an acceptable 

amount of risk.

NIST SP 800-37, Revision 1, requires that organizational officials, in collaboration with the senior 

information security officer, assess the information provided by the system owner or common control 

provider regarding the current security state of the system and make recommendations for addressing 

any residual risks. Risk assessments are employed at the discretion of the organization to provide 

needed information on threats, vulnerabilities, and potential impacts, as well as the analyses for risk 

mitigation.

We recommend that the CAO: 

• Implement and enforce a risk management framework using the approved risk management 

framework policies and procedures.
26 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

10

• Undergo a security assessment process, to include risk assessments, in accordance with House 

policy and industry best practices for federal information systems, to ensure that management’s 

authorizing officials are provided with adequate information to make system authorization 

decisions.

2. The House has not fully developed and maintained SSPs for major financial systems.

The House’s Assessment and Authorization Plan for implementing a risk management framework 

includes a project for updating SSPs for major financial systems. SSP development includes minimum 

security control selection, scoping, and tailoring of selected security controls. The Assessment and 

Authorization Plan implementation for major financial systems is still in the initial stages, however, and 

the House did not update or assess the SSPs during FY 2015. According to the Assessment and 

Authorization Plan, all major financial systems (Network, Active Directory, PeopleSoft, HRIS, and 

FinMart) should have updated ATOs in place as of September 2016, with the ATOs for the entire system 

scheduled to be in place by December 2017. As a result, there is an increased risk that potential threats 

and vulnerabilities will go unmitigated due to a lack of security controls commensurate with the risk of 

the system security categorization.

NIST SP 800-18, Revision 1, Guide for Developing Security Plans for Federal Information Systems, 

provides guidance for developing SSPs. In accordance with NIST SP 800-18, agencies must meet the 

minimum security requirements of Federal Information Processing Standard (FIPS) 200.These 

requirements represent a broad-based, balanced information security program that addresses the 

management, operational, and technical aspects of protecting the confidentiality, integrity, and 

availability of federal information and information systems. Agencies meet the minimum security 

requirements in FIPS 200, Minimum Security Requirement for Federal Information and Information 

Systems, by applying security controls selected in accordance with NIST SP 800-53, Revision 4, 

Recommended Security Controls for Federal Information Systems and Organizations, and with the 

designated impact levels of the information systems. The impact levels of the information system are 

determined using guidance provided by FIPS 199, Standards for Security Categorization of Federal 

Information and Information Systems.

We recommend that the CAO document and implement policies and procedures that provide guidance 

regarding the implementation of a risk management framework as outlined by NIST SP 800-37, Revision 

1, including SSP development and maintenance, which includes system security categorization, 

minimum security control selection, scoping, and tailoring.

3. The House has not adequately designed and implemented audit logging and monitoring controls 

for financial applications.

We noted inadequate logging and monitoring of FinMart infrastructure components. Specifically, CAO 

management does not log and monitor the modification or deletion of content in SQL Server Agent jobs 

on the FinMart production SQL server. The SQL Server Agent is responsible for running scheduled tasks 

within the Microsoft SQL database; these tasks are referred to as jobs. SQL Server Agent jobs manage 

the daily data transfer with PeopleSoft, as well as the system assurance job that ensures data integrity. 
Independent Auditor’s Report | 27

11

During FY 2015, we noted that CAO management has begun the process of remediating this issue, 

specifically through the implementation of MacAfee Database Active Monitoring (DAM); however,

during testing, the tool did not alert management regarding sensitive queries. Management is currently 

in the process of remediating this issue; however, it was not resolved as of the end of FY 2015.

In accordance with NIST SP 800-53, Revision 4, organizations should determine, based on a risk 

assessment and mission/business needs, that the information system is capable of auditing 

organizationally defined auditable events. The organization should review and analyze information 

system audit records for indications of inappropriate or unusual activity and report findings to 

designated organizational officials. 

We recommend that the CAO implement audit logging and monitoring tools for FinMart to ensure that 

management actively monitors audit logs for sensitive financial records and tables, as well as for key 

security activities, and that all reviews and any follow-up actions are documented.

4. The House does not actively monitor and review access to PeopleSoft shared group accounts.

The House does not adequately monitor and review shared group accounts, including privileged 

administrator accounts. We noted three group accounts, two with administrative access and one used 

by the accounting department for accounts payable processing, that did not have proper oversight and 

accountability.

During FY 2015, management developed documentation acknowledging the requirement for improved 

privileged account and access management (PAAM), as well as an implementation plan for increased 

PAAM capabilities. Management is currently undergoing planning to determine the best approach for 

addressing PAAM.

These issues are due to a lack of adequately established policies and procedures guiding the usage and 

monitoring of PeopleSoft shared group accounts, including privileged administrator accounts. The lack 

of policies and procedures and adherence to such increases the risk that inappropriate actions may be 

performed with a privileged account within the financial system and go undetected; even if 

inappropriate actions are detected, accountability for those actions may not be determined.

In accordance with NIST SP 800-53, Revision 4, the information system should uniquely identify and 

authenticate organizational users or processes acting on behalf of organizational users. Unique 

identification of individuals in group accounts (e.g., shared privileged accounts) may need to be 

considered for detailed accountability of activity.

We recommend that the CAO uniquely identify and authenticate users to the highest degree possible,

and establish and implement policies and procedures concerning audit logging and monitoring, including 

privileged administrator accounts.
28 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

12

APPENDIX B

MANAGEMENT’S RESPONSE
Chief Administrative Officer’s Audit Report Response | 29

Chief Administrative Officer’s 

Audit Report Response
30 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Chief Administrative Officer’s Audit Report Response | 31
32 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Fiscal Year 2015 Financial Statements | 33

Fiscal Year 2015 

Financial Statements
34 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Fiscal Year 2015 Financial Statements | 35

FINANCIAL STATEMENTS INCLUDED IN THIS REPORT

The U.S. House of Representatives (House) has prepared 

financial statements for fiscal year (FY) 2015 in accordance 

with U.S. Generally Accepted Accounting Principles 

(GAAP) issued by the Federal Accounting Standards 

Advisory Board (FASAB) and the applicable form and 

content requirements of the Office of Management and 

Budget’s (OMB) Circular No. A-136, Financial Reporting 

Requirements. The responsibility for the integrity of the 

financial information included in these statements rests 

with management of the House. The audit of the House’s 

financial statements was performed by Cotton & Company 

LLP. The auditor’s report accompanies the financial 

statements.

The House’s financial statements for FY 2015 and FY 2014 

consisted of the following:

The Consolidated Balance Sheets, which presents as of 

September 30, 2015 and 2014 those resources owned or 

managed by the House that are available to provide future 

economic benefits (assets); amounts owed by the House 

that will require payments from those resources or future 

resources (liabilities); and residual amounts retained by the 

House comprising the difference (net position).

The Consolidated Statements of Net Cost, which presents 

the net cost of the House’s operations for the years ended 

September 30, 2015 and 2014. The House’s net cost of 

operations includes the gross costs incurred by the House 

less any exchange revenue earned from House activities. 

The Consolidated Statements of Changes in Net Position, 

which presents the change in the House’s net position 

resulting from the net cost of the House’s operations, 

budgetary financing sources other than exchange 

revenues, and other financing sources for the years 

ended September 30, 2015 and 2014.

The Combined Statements of Budgetary Resources, 

which present the budgetary resources available to the 

House during FY 2015 and FY 2014, the status of these 

resources at September 30, 2015 and 2014, the change 

in obligated balance during FY 2015 and FY 2014, and 

net outlays of budgetary resources for the years ended 

September 30, 2015 and 2014.
36 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

CONSOLIDATED BALANCE SHEETS

As of September 30, 2015 and 2014

2015 2014

ASSETS

Intragovernmental:

Fund Balance with U. S. Treasury (Note 2) $ 319,824,750 $ 278,582,522 

Accounts Receivable, Net (Note 3) 142,760 66,614 

Advances and Prepayments (Note 7) 602,149 169,759 

Total Intragovernmental 320,569,659 278,818,895 

Cash and Other Monetary Assets (Note 2) 6,079 2,655 

Accounts Receivable, Net (Note 3) 502,289 370,883 

Inventory and Operating Materials and Supplies (Note 4) 1,204,215 1,197,223 

Property and Equipment, Net (Note 5) 23,863,897 19,208,430 

Advances and Prepayments (Note 7) 9,387,281 4,639,201 

Total Assets $ 355,533,420 $ 304,237,287 

 

Stewardship Property and Equipment (Note 6)

 

LIABILITIES

Intragovernmental:

Accounts Payable $ 3,100,879 $ 4,529,826 

Advances from Others 803,684 603,219 

Other Liabilities 4,135,145 2,361,598 

Total Intragovernmental 8,039,708 7,494,643 

Accounts Payable 20,918,323 23,158,599 

Actuarial Federal Employees' Compensation Act Liabilities 32,427,866 35,349,785 

Accrued Payroll and Benefits 6,763,623 6,522,459 

Accrued Annual Leave 7,321,389 7,125,969 

Other Liabilities 36,374 77,556 

Total Liabilities (Note 8) $ 75,507,283 $ 79,729,011 

NET POSITION

Unexpended Appropriations $ 263,423,019 $ 217,237,784 

Cumulative Results of Operations 16,603,118 7,270,492 

 Total Net Position $ 280,026,137 $ 224,508,276 

Total Liabilities and Net Position $ 355,533,420 $ 304,237,287 
Fiscal Year 2015 Financial Statements | 37

CONSOLIDATED STATEMENTS OF NET COST

For the Years Ended September 30, 2015 and 2014

2015 2014

NET COST OF OPERATIONS (Note 11)

Net Costs By Program Area

Legislative Activities

Gross Costs $ 1,465,566,238 $ 1,485,227,505 

Less: Earned Revenue (4,555,636) (5,362,533)

Net Program Costs 1,461,010,602 1,479,864,972 

Revolving Fund Activities

Gross Costs 2,514,857 1,965,051 

Less: Earned Revenue (4,547,110) (4,736,462)

Net Program Costs (2,032,253) (2,771,411)

Net Cost of Operations $ 1,458,978,349 $ 1,477,093,561 
38 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION

For the Years Ended September 30, 2015 and 2014

2015 2014

Cumulative Results of Operations

Beginning Balance $ 7,270,492 $ 8,202,332 

Budgetary Financing Sources

Appropriations Used 1,240,662,789 1,235,297,710 

Nonexchange Revenue 12,310 33,950 

Other Financing Sources

Imputed Financing from Costs Absorbed

 by Others (Note 15) 228,077,042 241,196,971 

Other Adjustments (441,166) (366,910)

Total Financing Sources 1,468,310,975 1,476,161,721 

Net Cost of Operations (1,458,978,349) (1,477,093,561)

Net Change 9,332,626 (931,840)

Total Cumulative Results of Operations $ 16,603,118 $ 7,270,492 

Unexpended Appropriations

Beginning Balance $ 217,237,784 $ 159,014,711 

Budgetary Financing Sources

Appropriations Received 1,295,556,000 1,295,494,000 

Other Adjustments (8,707,976) (1,973,217)

Appropriations Used (1,240,662,789) (1,235,297,710)

Total Budgetary Financing Sources 46,185,235 58,223,073 

Total Unexpended Appropriations $ 263,423,019 $ 217,237,784 

Net Position $ 280,026,137 $ 224,508,276 
Fiscal Year 2015 Financial Statements | 39

COMBINED STATEMENTS OF BUDGETARY RESOURCES

For the Years Ended September 30, 2015 and 2014

2015 2014

Budgetary Resources:

Unobligated balance brought forward, Oct 1 $ 192,856,060 $ 140,882,286 

Recoveries of prior year unpaid obligations 911,784 2,236,360 

Other changes in unobligated balance (8,707,832) (1,973,217)

Unobligated balance from prior year budget authority, net 185,060,012 141,145,429 

Appropriations (discretionary and mandatory) 1,295,556,000 1,295,494,000 

Spending authority from offsetting collections (discretionary and mandatory) 23,956,121 25,105,864 

Total budgetary resources $ 1,504,572,133 $ 1,461,745,293 

Status of Budgetary Resources:

Obligations incurred $ 1,270,578,816 $ 1,268,889,233 

Unobligated balance, end of year:

Exempt from apportionment 223,072,499 182,011,041 

Unapportioned 10,920,818 10,845,019 

Total unobligated balance, end of year: 233,993,317 192,856,060 

Total budgetary resources $ 1,504,572,133 $ 1,461,745,293 

Change in Obligated Balance:

Unpaid Obligations:

Unpaid Obligations, brought forward, Oct 1 $ 85,704,477 $ 77,226,086 

Obligations incurred 1,270,578,816 1,268,889,233 

Outlays (gross) (1,268,769,228) (1,258,174,482)

Recoveries of prior year unpaid obligations (911,784) (2,236,360)

Unpaid obligations September 30, 2015 86,602,281 85,704,477 

Memorandum (non-add) Entries:

Obligated balance, start of year $ 85,704,477 $ 77,226,086 

Obligated balance, September 30, 2015 $ 86,602,281 $ 85,704,477 

Budget Authority and Outlays, Net

Budget authority, gross (discretionary and mandatory) $ 1,319,512,121 $ 1,320,599,864 

Actual offsetting collections (discretionary and mandatory) (23,956,121) (25,105,864)

Budget authority, net (discretionary and mandatory) $ 1,295,556,000 $ 1,295,494,000 

Outlays, gross (discretionary and mandatory) $ 1,268,769,228 $ 1,258,174,482 

Actual offsetting collections (discretionary and mandatory) (23,956,121) (25,105,864)

Outlays, net (discretionary and mandatory) 1,244,813,107 1,233,068,618 

Agency outlays, net (discretionary and mandatory) $ 1,244,813,107 $ 1,233,068,618 
40 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Notes to the Financial Statements | 41

Notes to the 

Financial Statements
42 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Notes to the Financial Statements | 43

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

A. Description of the Reporting Entity

The U.S. House of Representatives (House) is one of two 

separate legislative chambers that comprise the Congress 

of the United States. The other is the U.S. Senate (Senate). 

All lawmaking powers of the Federal government are 

given to the Congress under Article I of the Constitution 

of the United States. The House and Senate jointly agree 

on a budget for the Legislative Branch and submit it to the 

President of the United States. The Members of the House 

serve two-year terms of office, which coincide with the 

sequential numbering of the entire Congress. 

To help carry out its constitutional duties, the House creates 

committees of Members and assigns them responsibility 

for gathering information, identifying policy problems, 

proposing solutions, and reporting bills to the full chamber 

for consideration. The House elects and appoints Officers 

and officials to administer both legislative and non-legislative 

functions, which support the institution and its Members in 

carrying out its legislative duties. The financial statements 

of the House provide financial information on the activities 

of all entities, which are subject to the authority vested in the 

House by the U.S. Constitution, public laws, and rules and 

regulations adopted by the membership of the House.

These financial statements reflect the organizational 

structure of the House under the 113th and 114th 

Congresses. The Fiscal Year (FY) 2015 financial statements 

are comprised of two programs: Legislative Activities and 

Revolving Fund Activities. 

Legislative Activities

Legislative Activities consist of all financial activity related 

to the operations of all Member Offices, both in Washington, 

D.C. and Congressional districts; all Committees both 

Standing and Special and Select; Leadership Offices; House 

Officers and Offices; and Joint Functions that the House 

shares with the Senate including the Attending Physician 

and Joint Committee on Taxation.

House Members are elected from congressional districts of 

approximately equal population. The financial information 

aggregates transactions of the Member districts and 

Washington, D.C. offices, and includes 435 Representatives; 

five Delegates, one each from the District of Columbia, 

Guam, Virgin Islands, American Samoa and Northern 

Mariana Islands; and one Resident Commissioner from 

Puerto Rico. 

The Committees financial information aggregates 

transactions of the Standing and Special and Select 

Committees of the 113th and 114th Congresses. Committees 

are organized at the beginning of each Congress according 

to their jurisdictional boundaries incorporated in the Rules 

of the House. The Committees of the House under the 113th 

and 114th Congresses are:

Committee on Agriculture

Committee on Appropriations

Committee on Armed Services

Committee on the Budget

Committee on Education and the Workforce 

Committee on Energy and Commerce

Committee on Ethics 

Committee on Financial Services

Committee on Foreign Affairs

Committee on Homeland Security

Committee on House Administration

Committee on the Judiciary

Committee on Natural Resources

Committee on Oversight and Government Reform

Committee on Rules

Committee on Science, Space, and Technology 

Committee on Small Business

Committee on Transportation and Infrastructure

Committee on Veterans’ Affairs

Committee on Ways and Means

Permanent Select Committee on Intelligence

Select Committee on Benghazi
44 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

The House Leadership Offices financial information 

aggregates transactions of:

Speaker of the House

Majority and Minority Leaders

Majority and Minority Whips

Party Steering Committees, Caucus or Conference, which 

consist of Representatives of the same political party

The Officers and Legislative Offices financial information 

aggregates transactions of all legislative support and 

administrative functions provided to Members, Committees, 

and Leadership offices, including:

Chaplain

Chief Administrative Officer (CAO)

Clerk of the House

Office of Congressional Ethics

Office of Interparliamentary Affairs

Office of the General Counsel

Office of the Historian

Office of Inspector General

Office of the Law Revision Counsel

Office of the Legislative Counsel

Parliamentarian

Sergeant at Arms

The Joint Functions financial information aggregates 

transactions of the joint activities of the House and the 

Senate to the extent that the House funds these functions. 

House administrative management does not exert direct 

control over the expenditures of these functions. The joint 

functions in these statements include:

Attending Physician

Joint Economic Committee

Joint Committee on the Library

Joint Committee on Printing

Joint Committee on Taxation

Revolving Fund Activities 

Revolving Fund Activities consist of all financial activity 

related to the operations of all House revolving fund accounts.

The Revolving Funds financial information aggregates 

transactions of:

House Child Care Center

House Recording Studio 

House Services

Net Expenses of Equipment 

Net Expenses of Telecommunications

Stationery

B. Basis of Consolidation

The consolidated financial statements include the accounts 

and significant activities of the House. All significant 

interoffice balances and transactions have been eliminated 

to arrive at consolidated financial information, except for 

the Statement of Budgetary Resources which is presented on 

a combined basis in accordance with Office of Management 

and Budget’s (OMB) Circular No. A-136.

The financial statements do not include legislative 

agencies that support the House and that receive separate 

appropriations. These agencies are:

Architect of the Capitol

Congressional Budget Office

Government Accountability Office

Government Printing Office

Library of Congress

U.S. Botanic Garden

U.S. Capitol Police

Functions jointly shared between the House and the Senate 

are included in the financial statements to the extent their 

operations are funded by House appropriations. 

C. Basis of Accounting and Presentation

The financial statements present the financial position, net 

cost of operations, changes in net position and budgetary 

resources of the House. These statements have been 

prepared in accordance with U.S. Generally Accepted 

Accounting Principles (GAAP) issued by the Federal 

Accounting Standards Advisory Board (FASAB) and the 

applicable form and content requirements of the OMB 

Circular No. A-136. 

While the House is a Legislative Branch entity, it has 

elected to incorporate many of the Federal government 

Executive Branch agency financial management and 

reporting standards that management deems necessary for 

the fair presentation of financial statement information.

The House’s accounting structure, in accordance with 

GAAP, utilizes both accrual and budgetary accounting. 

Under accrual accounting, events are recognized as they 

occur, as opposed to when cash is received or disbursed. 

Therefore, revenues are recorded when earned and expenses 

are recorded when a liability is incurred, without regard to 

receipt or payment of cash. The budgetary accounting, on 

the other hand, facilitates compliance with legal constraints 

on, and controls over, the use of Federal funds. 
Notes to the Financial Statements | 45

Throughout these financial statements, assets, liabilities, 

revenues and costs have been classified according to the 

type of entity with whom the transactions were made. 

Intragovernmental assets and liabilities are those from or to 

other Federal entities. Intragovernmental earned revenues 

are collections or accruals of revenue from other Federal 

entities, and intragovernmental costs are payments or 

accruals of liabilities to other Federal entities. 

While these statements have been prepared from the 

records of the House in accordance with GAAP and formats 

prescribed in OMB Circular No. A-136, these statements 

are in addition to the financial reports used to monitor and 

control the budgetary resources that are prepared from 

the same records. These statements should be read with 

the realization that they are for a component of the U.S. 

government, a sovereign entity. 

D. Fund Balance with the U.S. Treasury, 

and Cash and Other Monetary Assets

The U.S. Treasury processes cash receipts and disbursements 

for the House through its cash management services. Fund 

Balance with Treasury represents the aggregate amount of 

House fund accounts with the U.S. Treasury available to pay 

current liabilities and finance authorized purchases. Fund 

Balance with Treasury consists of balances for general fund 

expenditure accounts, revolving funds, and other fund types 

as of the end of the FY. Fund Balance with Treasury also 

includes the Congressional Use of Foreign Currency account, 

which is held at the U.S. Treasury and is maintained and 

administered by the Department of State on behalf of the 

House. The House also maintains an account related to Other 

Fund Types. Cash and other monetary assets include cash on 

hand that represents deposits in transit and amounts held in a 

commercial bank account. (See Note 2)

The following describes the type of funds maintained by the 

House:

General Fund Expenditure Accounts are fund accounts 

used to record amounts appropriated by Congress for the 

general support of the Federal government. 

Revolving Funds are fund accounts used to record funds 

authorized by specific provisions of law to finance a 

continuing cycle of business–type operations. Receipts 

are credited directly to the revolving fund as offsetting 

collections and are available for expenditure without further 

action by Congress. 

Other Fund Types include General Fund Receipt and 

Deposit Fund accounts. General Fund Receipt accounts 

are used to record all receipts not earmarked by law for a 

specific purpose. These receipts may include miscellaneous 

recoveries and refunds and fines and penalties. The U.S. 

Treasury automatically transfers all cash balances in these 

receipt accounts to the general fund of the Treasury at the 

end of each FY. Deposit Fund accounts are used to record 

monies withheld from payroll and payments for goods and 

services that are pending disbursement to other entities; and 

receipts and disbursements awaiting determination of the 

proper accounting classification. 

E. Accounts Receivable, Net

Accounts Receivable represents amounts due to the House 

from Federal entities, Members, employees and/or vendors 

for money, goods, and services less an Allowance for 

Doubtful Accounts. Accounts Receivable primarily arises 

from provision of goods and services, commissions, and 

overpayments. Allowance for Doubtful Accounts is based 

on an analysis of outstanding accounts, aging methodologies 

and historical collection experience. Intragovernmental 

accounts receivable are generally considered to be fully 

collectible. (See Note 3)

F. Inventory and Related Property, Net 

Inventory is tangible personal property that is held for sale. 

The CAO Office Supply Service and Gift Shop maintain 

an inventory of supplies and merchandise purchased for 

resale to the public. Inventories for sale are valued at the 

historical cost method using the weighted average cost flow 

assumption.

Operating Material and Supplies are tangible personal 

property to be consumed during normal operations. The 

CAO Logistics and Support Office maintains inventories of 

such items as hardwood, carpet, leather, fabric, furniture 

components, and repair materials purchased by the House 

for use in its operations. The CAO House Information 

Resources Office maintains inventories of such items as 

fiber jumpers to support network connectivity and patch 

cords to support desktop computers. These items are not 

for sale and are reflected in the financial statements at an 

estimated value based on the historical cost method using 

the first in/first out cost flow assumption. (See Note 4)
46 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

G. General Property and Equipment, Net

General Property and Equipment (P&E) consists of office 

and computer equipment, furniture, vehicles, software, 

leasehold improvements and work in process. The House 

capitalizes property and equipment when the acquisition 

cost equals or exceeds an established threshold and has a 

useful life of two years or more. The costs of such items are 

recognized as assets when acquired. 

Property and equipment are capitalized if the unit 

acquisition cost is equal to or greater than $25,000 and 

the item has a useful life of two years or more with the 

exception of software. Software is capitalized if the unit 

acquisition cost is equal to or greater than $10,000 and the 

item has a useful life of two years or more. Work in process 

consists of capitalized costs associated with assets received, 

but not placed in service as of the end of the FY. 

An appropriate portion of an asset’s value is reduced and 

an expense for depreciation or amortization is recognized 

over the accounting periods benefited by the asset’s use. 

The House calculates depreciation and amortization 

expense based on the straight-line method over an asset’s 

estimated useful life. Depreciation expense is applicable to 

tangible assets such as equipment, furniture, and vehicles. 

Amortization expense is applicable to intangible assets such 

as software and leasehold improvements. 

A loss is recognized when the net book value of the asset 

at the time of disposal exceeds any proceeds received. A 

gain is recognized when the net book value of the asset at 

the time of disposal is less than any proceeds received. (See 

Note 5)

House office buildings and land occupied by Members and 

employees in Washington, D.C. are under the custody of 

the Architect of the Capitol (AOC) and are excluded from 

the House’s property and equipment accounts. The House 

recognizes an imputed cost and related imputed financing 

source in its financial statements for the costs associated 

with the occupancy of the U.S. Capitol, House office 

buildings, and the O’Neill Federal Building. (See Notes 1K 

and 15)

H. Stewardship Property and Equipment 

Stewardship (P&E) includes heritage assets and stewardship 

land. Heritage assets are unique due to their historical 

or natural significance; cultural, educational, or artistic 

importance; or significant architectural characteristics. 

Heritage assets consist of collection-type assets, such as 

objects gathered and maintained for exhibition, for example, 

museum collections, art collections, and library collections; 

and non-collection-type assets, such as parks, memorials, 

monuments, and buildings. These assets are expected to 

be preserved indefinitely. The House’s heritage assets are 

considered collection-type assets and consist primarily of 

historical artwork and artifacts. 

Heritage assets can serve two purposes: a heritage function 

and a general government operational function. If a heritage 

asset serves both purposes, but is predominantly used for 

general government operations, the asset is considered 

a multi-use heritage asset, which is included in general 

P&E on the Balance Sheet. The House office buildings 

and land occupied and used by Members and employees in 

Washington, D.C. meet the criteria of multi-use heritage 

assets. Stewardship responsibility for these multi-use 

heritage assets is maintained by the AOC and disclosed on 

its financial statements. The House does not possess multiuse heritage assets or stewardship land.

Heritage assets that are not multi-use are disclosed on the 

Balance Sheet as a note reference with no asset amount 

shown, and are not included in the general P&E. The 

cost of improving, reconstructing, or renovating heritage 

assets is recognized as an expense in the period incurred. 

Similarly, the cost to acquire or construct a heritage asset 

is recognized as an expense in the period incurred. Due to 

their nature, matching costs with specific periods would not 

be meaningful. (See Note 6 and Required Supplementary 

Information)

I. Advances and Prepayments

Advances and prepayments are transfers of cash to cover 

future expenses or the future acquisition of assets. These 

goods and services are delivered in increments that span 

several months. Advance payments are recorded as assets 

and consist of payments to Federal government entities for 

contractual services and for mailings that require address 

corrections or additional postage. As the goods and services 

are rendered, the Advance account is drawn down and the 

appropriate asset or expense is recognized. Prepayments are 

also recorded as assets, and represent payments made by 

a Federal entity to cover certain periodic expenses before 

those expenses are incurred. Prepayments include payments 

for subscriptions and are initially recorded as expenses. At 
Notes to the Financial Statements | 47

year-end, all such payments made for the current year are 

analyzed to determine the proper expense and prepayment 

amounts applicable to the current accounting period for 

financial statement purposes. The House also pays for health 

plans under Public Law 111-148, Patient Protection and 

Affordable Care Act (ACA) and records this payment as an 

advance. The advance account is then drawn down and an 

expense is recognized when invoices are received for health 

care insurance premiums. (See Note 7)

J. Liabilities 

Liabilities represent the probable future outflow or other 

sacrifice of resources as a result of past transactions or 

events. Liabilities are amounts due to others as a result of 

items received, services rendered, expenses incurred, assets 

acquired and construction or work in process regardless 

of whether invoices have been received. Liabilities also 

represent amounts received that have not yet been earned. 

Liabilities covered by budgetary resources are liabilities 

incurred that will be covered by available budgetary 

resources encompassing not only new budget authority 

but also other resources available to cover liabilities for 

specified purposes in a given year. Liabilities not covered by 

budgetary resources include unfunded liabilities incurred 

for which revenues or other sources of funds necessary to 

pay the liabilities have not been made available through 

congressional appropriations or current earnings of the 

reporting entity. (See Note 8)

The House’s liabilities include:

Accounts Payable that represent amounts owed for the 

cost of goods and services received but not yet paid. The 

House estimates certain accounts payable balances based on 

methodology that encompasses historical data and the first 

two months’ financial activity of the subsequent FY. 

Advances from Others that represent advance payments 

received from other Federal government entities for shared 

services, in advance of the delivery of these services. As the 

services are rendered the Advances from Others account is 

drawn down and the appropriate revenue is recognized. The 

House received payments in advance of receipt of shared 

services from the Library of Congress and the AOC. 

Actuarial Federal Employees’ Compensation Act 

Liabilities that represent an estimate based on actuarial 

calculations using historical payment patterns to predict 

what costs will be incurred in the future. The liability is 

adjusted annually by applying actuarial procedures. Any 

upward or downward adjustment to the liability is recorded 

as an annual increase or decrease to benefits expense. The 

House calculated the actuarial liability based on a model 

developed by the U.S. Department of Labor (DOL). The 

Federal Employees’ Compensation Act (FECA) provides 

income and medical cost protection to covered Federal 

civilian employees injured on the job, employees who 

have incurred a work-related occupational disease, and 

beneficiaries of employees whose death is attributable 

to a job-related injury or occupational disease. Claims 

paid for the benefit of House employees under FECA are 

administered by DOL, which pays the initial claim and 

obtains reimbursement from the House. 

Accrued Payroll and Benefits and Annual Leave that 

represent both a funded and unfunded liability. A funded 

liability has a corresponding appropriation to liquidate it. 

An unfunded liability is a liability that is incurred during 

the current or prior year but is not payable until a future FY 

for which an appropriation has not yet been received.

Accrued payroll and benefits include salaries and associated 

benefits earned in the current FY and paid in the subsequent 

FY.

Annual leave for the House Officers, the Inspector General 

and their employees is accrued as earned, and the liability 

is reduced as leave is taken. The accrued annual leave 

balances are calculated according to Public Law 104-53, 

November 19, 1995, Sec. 109 Stat. 522 (i.e., the lesser of the 

employee’s monthly pay or the monthly pay divided by 30 

days and multiplied by the number of days of accrued leave). 

The House utilizes actual hours to calculate the liability. 

Sick and other types of paid leave are expensed as they 

are taken. The Members’ and Committees’ Congressional 

Handbooks allow offices to adopt personnel policies that 

provide for the accrual of annual leave and use of such 

leave. Leadership and other select House offices have also 

adopted similar policies. While leave is tracked from one 

pay period to the next, a consistent policy has not been 

formally adopted by these entities regarding the accrual and 

payment of leave time. Therefore, an accrued leave liability 

for Members, Committees, Leadership and select House 

offices is estimated on the financial statements. In FY 2015, 

the estimate was based on a three-year average of historical 

data of actual annual leave paid. 
48 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

Other Intragovernmental Liabilities that represent 

the Accrued workers’ compensation amount billed by 

DOL that will be paid in subsequent FYs, Unemployment 

compensation amounts owed to DOL, and accrued benefits. 

Other Public Liabilities that represent amounts held 

pending proper accounting disposition or amounts withheld 

from payroll and payments for goods and services that are 

pending disbursement to other entities. 

K. Revenue and Other Financing Sources

Appropriations

The House finances most of its operations through 

congressional appropriations of budget authority. To the 

extent that revenue generated by some House activities does 

not cover expenses, appropriations are required. The House 

receives annual, multi-year and no-year appropriations 

that may be used, within statutory limits, for operating 

and capital expenditures. A financing source is recognized 

for these appropriated funds received, less appropriations 

transferred or not available through rescission or 

cancellation. The House usually receives the full amount of 

its appropriation at the beginning of each FY as stated in the 

public law. 

Exchange and Non-Exchange Revenue

The House classifies revenues as either exchange revenue or 

non-exchange revenue. Exchange revenue is derived from 

transactions in which both the government and the other 

party receive value; and is recognized when goods have 

been delivered or services rendered. The House’s exchange 

revenue consists of (1) sales of goods to the public for Office 

Supply Service and Gift Shop sales; (2) sales of services to 

the public for child care, photography sales, postal services 

and Attending Physician services; and (3) other revenue 

for vendor commissions. Non-exchange revenue is derived 

from the government’s sovereign right to demand payment 

from the public (e.g., taxes, duties, fines, and penalties) but 

also includes donations. The House reports non-exchange 

revenue collected from donations for the Reduction of 

Public Debt and fines for Ethic Violations.

Intragovernmental Costs and Earned Revenues

The House earns intragovernmental revenue by providing 

mail and telecommunication services primarily to other 

legislative entities. Intragovernmental costs and exchange 

revenue represent transactions made between two reporting 

entities within the Federal government and are disclosed 

separately from costs and exchange revenue with the public 

(exchange transactions made between the reporting entity 

and a non-Federal entity). Intragovernmental expenses 

relate to the source of goods and services purchased by 

the reporting entity and not to the classification of related 

revenue. The purpose of this classification is to enable 

the Federal government to provide consolidated financial 

statements, and not to match public and intragovernmental 

revenue with costs that are incurred to produce public and 

intragovernmental revenue. The net cost of the House’s 

operations includes gross costs incurred by the House less 

any exchange revenue earned from House activities. 

Imputed Financing from Cost Absorbed by Others 

(and Related Imputed Costs)

The House recognizes the amount of cost incurred by a 

Federal entity for goods and services provided and paid 

for in total, or in part, by other Federal entities. Since the 

cost is not actually reimbursed to these Federal entities, an 

imputed financing source is also recognized to offset the 

costs financed by the entities. The imputed cost and imputed 

financing source for costs are associated with the occupancy 

of the U.S. Capitol, House office buildings, and the O’Neill 

Federal building under the custody of the AOC; the Federal 

Employee and Veterans’ Benefits; and settlement of claims 

and litigation paid from the Treasury’s Judgment Fund. The 

imputed cost is recognized in the Statement of Net Cost and 

the imputed financing source is recognized in the Statement 

of Changes in Net Position. 

Occupancy Cost:

The House recognizes an occupancy cost for the U.S. 

Capitol, House office buildings, and the O’Neill Federal 

Building under the custody of the AOC that are occupied by 

Members and staff in Washington, D.C. The House office 

buildings are comprised of the Cannon, Ford, Longworth, 

Rayburn, and other buildings and facilities. The AOC 

receives an appropriation for the maintenance, care and 

operations of the House office buildings, facilities and 

grounds; and costs associated with the acquisition and 

maintenance of the land and buildings is accounted for by 

the AOC. A separate appropriation is received by AOC 

for the O’Neill Federal Building which is included in the 

occupancy cost.

The imputed occupancy cost for the U.S. Capitol and House 

office buildings is calculated by multiplying the gross 
Notes to the Financial Statements | 49

square footage of the buildings, which includes a ‘common 

area factor’ of 12 percent, by the estimated acquisition and 

maintenance cost per square foot. The industry standard 

rental rate increase of 0.2 percent over FY 2014 is reflected 

in the FY 2015 occupancy costs. Actual cost paid by the 

AOC for the O’Neill Federal building is included in the 

occupancy cost.

Federal Employee and Veterans’ Benefits Cost:

Federal-employing entities recognize their share of the cost 

of providing future pension benefits to eligible employees at 

the time the employees’ services are rendered. The pension 

expense recognized in the Statement of Net Cost is the 

current service cost for House employees less the amount 

contributed by the employee. 

The measurement of the service cost requires the use of 

actuarial cost methods and assumptions, with the factors 

applied by the House provided by the Office of Personnel 

Management (OPM), the Federal agency that administers 

the plan. The excess of the recognized pension expense 

over the amount contributed by the House represents the 

amount being financed directly through the Civil Service 

Retirement and Disability Fund administered by OPM. The 

House does not receive an appropriation to fund this cost. 

Therefore, this portion of the pension cost is considered an 

imputed financing source to the House, and is included in 

the Imputed Financing from Costs Absorbed by Others on 

the Statement of Changes in Net Position. 

Federal-employing entities also recognize a current period 

expense for the future cost of post-retirement health benefits 

and life insurance for its employees while they are still 

employed. This cost is included in the Statement of Net 

Cost. Employees and the House do not currently make 

contributions to fund these future benefits, and the House 

does not receive an appropriation to fund this expense. 

Therefore, this portion of the post-retirement health benefits 

and life insurance is considered an imputed financing source 

to the House, and is included in Imputed Financing from 

Costs Absorbed by Others on the Statement of Changes in 

Net Position. (See Note 15)

L. Personnel and Benefits Compensation

House Members and employees are covered by either Civil 

Service Retirement System (CSRS), the Federal Employees 

Retirement System (FERS), the Federal Employees 

Retirement System – Revised Annuity Employee (FERSRAE) or the Federal Employees Retirement System – 

Further Revised Annuity Employee (FERS-FRAE). Both 

Members and employees are eligible for retirement benefits 

under CSRS, FERS, FERS-RAE or FERS-FRAE. 

With few exceptions, Members and employees of the House 

are covered by one of the following retirement programs:

1. Employees hired before January 1, 1984, and who have 

been employed continuously without a break in service 

of more than 365 days since December 31, 1983 are 

covered under CSRS. 

2.Employees hired on or after January 1, 1984, and before 

January 1, 2013, are covered under FERS. 

3. Employees hired on or after January 1, 2013, and before 

January 1, 2014, are covered under FERS-RAE. 

4. Employees hired on or after January 1, 2014 are covered 

under FERS-FRAE.

A CSRS basic annuity, unreduced for age, debts to the 

fund, or survivor’s benefits, is calculated by multiplying the 

highest 3 consecutive years’ average salary by a percentage 

factor which is based on the length of Federal service. 

However, Members’ benefits are different from those of 

employees. For example, a Member covered by CSRS is 

eligible to receive unreduced retirement benefits at age 60 if 

he or she has 10 years of Member service. An employee is 

eligible to receive reduced benefits at age 50 with 20 years 

of service or at any age with 25 years of service. The FERS, 

FERS-RAE and FERS-FRAE basic benefit plans provide 

the same benefits for either Members or employees.

CSRS employees contribute a portion of their earnings to the 

Civil Service Retirement Fund. The House also contributes 

an amount to this fund. FERS, FERS-RAE and FERSFRAE employees, in addition to paying Social Security, 

contribute a portion of their base earnings to the FERS, 

FERS-RAE and FERS-FRAE retirement funds. The House 

also contributes an amount toward the FERS, FERS-RAE 

and FERS-FRAE retirement and Social Security funds. 
50 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

FERS, FERS-RAE, FERS-FRAE and CSRS employees can 

contribute to the Thrift Savings Plan (TSP) up to the IRS 

limit. FERS, FERS-RAE and FERS-FRAE employees also 

receive an automatic one percent House-paid contribution, as 

well as an additional House matching TSP contribution up to 

five percent of their basic pay. CSRS employee contributions 

to TSP do not receive matching House contributions. FERS, 

FERS-RAE and FERS-FRAE employees could receive 

benefits from the basic FERS annuity, the Social Security 

System, and TSP. CSRS employees could receive benefits 

from CSRS and TSP. Post-employment retirement, health, 

and life insurance benefits are not reported by the House, 

rather they are reported by OPM. (See Note 12)

M. Net Position

Unexpended Appropriations

Unexpended Appropriations includes the portion of the 

House’s appropriations represented by undelivered orders 

and unobligated balances. The amount of unexpended 

appropriations reported on the Balance Sheet should equal 

the amount of unexpended appropriations reported on the 

Statement of Changes in Net Position.

Appropriations are not considered expended until goods 

have been received or services have been rendered. The 

House has single, multi and no-year appropriations. Multiyear appropriations consist of 15-month, 18-month, and 

27-month multi-year funding. Funds cancel two years after 

expiration and are no longer available for obligation or 

expenditure for any purpose and are returned to the U.S. 

Treasury. 

Cumulative Results of Operations

Cumulative Results of Operations includes the net results 

of operations since inception plus the cumulative amount of 

prior period adjustments. The amount of cumulative results 

of operations reported on the Balance Sheet should equal 

the amount of cumulative results of operations reported on 

the Statement of Changes in Net Position.

N. Use of Estimates

The preparation of financial statements requires 

management to make estimates and assumptions that affect 

the reported amount of assets and liabilities, as well as the 

disclosure of contingent assets and liabilities at the date of 

the financial statements, and the amount of revenue and 

expense reported during the period. Actual results could 

differ from those estimates. 
Notes to the Financial Statements | 51

NOTE 2 – FUND BALANCE WITH THE U.S. TREASURY, CASH AND OTHER 

MONETARY ASSETS

Fund Balance with Treasury (FBWT) as of September 30, 2015 and 2014: 

Fund Balance with Treasury 2015 2014

General and Other Funds

House Maintained $ 270,798,041 $ 224,580,024 

Congressional Use of Foreign Currency 15,730,542 22,589,531 

Total General and Other Funds 286,528,583 247,169,555 

Revolving Funds 33,296,167 31,412,967

Total $ 319,824,750 $ 278,582,522 

Status of Fund Balance with Treasury as of September 30, 2015 and 2014: 

Status of Fund Balance with Treasury 2015 2014

Unobligated Balance

Available $ 223,072,499 $ 182,011,041 

Unavailable 10,920,818 10,845,019 

Obligated Balance not yet Disbursed 86,602,281 85,704,477 

Non-Budgetary FBWT* (770,848) 21,985

Total $ 319,824,750 $ 278,582,522 

*Represents deposit funds held at the U.S. Treasury.

Cash and Other Monetary Assets as of September 30, 2015 and 2014:

Cash and Other Monetary Assets 2015 2014

Cash on Hand $ 6,079 $ 2,655 

Total $ 6,079 $ 2,655 

Funds that were canceled and returned to the U.S. Treasury as of September 30, 2015 and 2014: 

Appropriations 2015 2014

2014 (single year) $ 404,349 $ - 

2013 (single year) 7,940,850 523,128 

2012 (single year) - 1,450,089 

2012/2013 (multi-year) 26,090 - 

2011/2013 (multi-year) 336,543 - 

Total $ 8,707,832 $ 1,973,217
52 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

NOTE 3 – ACCOUNTS RECEIVABLE, NET

Accounts Receivable, Net as of September 30, 2015 and 2014:

Accounts Receivable, Net 2015 2014

Intragovernmental

Accounts Receivable $ 142,760 $ 66,614 

Total Intragovernmental 142,760 66,614

With the Public

Accounts Receivable 515,632 399,537 

Allowance for Doubtful Accounts (13,343) (28,654)

Total With the Public 502,289 370,883

Total $ 645,049 $ 437,497 

NOTE 4 – INVENTORY AND RELATED PROPERTY, NET

Inventory and Related Property, Net as of September 30, 2015 and 2014:

Inventory and Related Property, Net 2015 2014

Operating Materials and Supplies Held for Use $ 434,514 $ 401,479 

Inventory Purchased for Resale 769,701 795,744

Total $ 1,204,215 $ 1,197,223 
Notes to the Financial Statements | 53

NOTE 5 – GENERAL PROPERTY AND EQUIPMENT, NET

General Property and Equipment, Net as of September 30, 2015 and the related depreciation 

and amortization expense: 

2015 Classes of Property 

and Equipment

Service 

Life 

(Years)

Acquisition 

Cost

Accumulated 

Depreciation

Net Book 

Value

Depreciation 

Expense

Work in Process N/A $ 2,862,984 $ - $ 2,862,984 $ - 

Computer Software in Development N/A 88,841 - 88,841 - 

Computer Software and Hardware 3/5 85,396,522 73,300,719 12,095,803 7,709,626 

Equipment 5 46,790,775 38,525,504 8,265,271 3,359,702 

Motor Vehicles 5 10,915,661 10,783,334 132,327 272,834 

Furnishings and Other Equipment 10 979,175 632,957 346,218 66,714 

Leasehold Improvements 10 9,085,375 9,012,922 72,453 196,400 

Total $ 156,119,333 $ 132,255,436 $ 23,863,897 $ 11,605,276 

General Property and Equipment, Net as of September 30, 2014 and the related depreciation 

and amortization expense: 

2014 Classes of Property 

and Equipment

Service 

Life 

(Years)

Acquisition 

Cost

Accumulated 

Depreciation

Net Book 

Value

Depreciation 

Expense

Work in Process N/A $ 1,099,623 $ - $ 1,099,623 $ - 

Computer Software in Development N/A - - - - 

Computer Software and Hardware 3/5 86,970,444 77,104,142 9,866,302 9,377,376 

Equipment 5 45,077,786 37,538,706 7,539,080 5,796,580 

Motor Vehicles 5 10,532,139 10,510,499 21,640 66,085 

Assets Under Capital Lease 10 - - - 33,862 

Furnishings and Other Equipment 10 1,240,517 827,585 412,932 72,754 

Leasehold Improvements 10 9,085,375 8,816,522 268,853 210,352 

Total $ 154,005,884 $ 134,797,454 $ 19,208,430 $ 15,557,009 
54 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

NOTE 6 – STEWARDSHIP PROPERTY AND EQUIPMENT

Physical counts for collection-type heritage assets as of September 30, 2015 and 2014: 

Heritage Assets 2014 Additions Withdrawals 2015

Artwork 334 11 - 345 

Artifacts 5,731 2,054 1 7,784 

Total 6,065 2,065 1 8,129 

The House’s heritage assets are directly related to its 

mission to document and preserve the legislative integrity 

and traditions of the institution. Permanent authority for 

the Clerk of the House originated in the opening days of the 

First Congress, when John Beckley was elected Clerk on 

April 1, 1789, pursuant to Article I of the Constitution: “The 

House of Representatives shall chuse (sic) their Speaker and 

other Officers....” The Clerk’s responsibilities to document 

and preserve the activities of Congress have grown over the 

centuries, and are found in Rules VII and XI of the House, 

and by the Rules of the House of Representatives Fine Arts 

Board, established via 40 USC Sec. 188c (Public Law 100-

696 [Title X]). 

The House’s stewardship responsibility for its heritage 

assets includes those in or associated with the House, its 

legislative history, Members and institutional heritage. 

Under the provisions of the House of Representatives Fine 

Arts Board, the Clerk is responsible for the administration, 

maintenance, and display of the works of fine art and other 

similar property of the Congress for display or for other 

use in the House wing of the Capitol, the House Office 

Buildings, or any other location under the control of the 

House in accordance with Public Law 100-696. The House’s 

heritage assets are curated by the House Curator in the 

Clerk’s Office of History and Preservation. The House 

Curator maintains records, both paper and electronic, for 

works of art and artifacts. Staff and resources are devoted to 

the conservation and preservation of heritage assets, using 

professional standards established by the American Institute 

for Conservation and the National Archives and Records 

Administration. These standards provide for cleaning, 

storing, displaying, handling and protecting the House’s 

heritage assets. 

The House acquires heritage assets by purchase, transfer 

from Federal entities, gift, or by provision of federal law. 

Prior to acquiring these assets, the House Curator, on behalf 

of the Clerk and the House of Representatives Fine Arts 

Board, ensures they meet minimum standards as required 

by the American Association of Museum’s ethics guidelines 

and standards and best practices for accessioning of objects 

into museum collections. The House’s collections continue 

to increase as it acquires additional assets and few items 

have been retired or disposed of to date.

Deaccessioning of objects and related withdrawals 

or disposals will only occur if the House Curator, in 

accordance with the American Association of Museum’s 

guidelines and best practices, determines the asset is in 

irretrievable condition; does not meet the needs of the 

collection; or should be withdrawn due to exchange or gift 

of unwanted or duplicate copies. Staff ensure that heritage 

assets remain in good condition, carefully preserving and 

saving these treasures for present and future generations. 

The Required Supplementary Information section of this 

report provides additional information on the condition of 

stewardship P&E.

Descriptions of the types of heritage assets are:

Artwork

The House’s artwork encompasses oil and acrylic paintings, 

works on paper, and sculpture in bronze, marble and other 

media.

Artifacts

The House’s historical artifacts include objects in all media, 

including but not limited to paper, metal, plaster, wood, 

textile and stone.
Notes to the Financial Statements | 55

NOTE 7 – ADVANCES AND PREPAYMENTS

Advances and Prepayments as of September 30, 2015 and 2014:

Advances and Prepayments 2015 2014

Intragovernmental $ 602,149 $ 169,759 

Public 9,387,281 4,639,201 

Total $ 9,989,430 $ 4,808,960 

NOTE 8 – LIABILITIES 

Liabilities are classified as either current or non-current. 

Current liabilities refer to liabilities that are expected to 

settle within 12 months of the Balance Sheet date. 

Non-current refers to liabilities that are expected to settle 

more than 12 months of the Balance Sheet date.

Liabilities Covered and not Covered by Budgetary Resources as of September 30, 2015: 

Liabilities

Liabilities Covered by 

Budgetary Resources

Liabilities Not Covered by 

Budgetary Resources

Current Non-Current Current Non-Current 2015

Intragovernmental Liabilities

Accounts Payable $ 3,100,879 $ - $ - $ - $ 3,100,879 

Advances from Others 803,684 - - - 803,684 

 3,904,563 - - - 3,904,563 

Other Liabilities

Withholdings Payable 365 - - - 365

Accrued Benefits 1,393,648 - - - 1,393,648 

Accrued Workers’ Compensation 2,922,492 - - - 2,922,492 

Unemployment Compensation 375,662 - - - 375,662 

Deposit Fund Liability - Federal (767,438) - - - (767,438)

Liabilities for Non-Entity Assets 210,416 - - - 210,416 

Total Other Liabilities 4,135,145 - - - 4,135,145 

Total Intragovernmental Liabilities 8,039,708 - - - 8,039,708 

Public Liabilities

Accounts Payable 20,918,323 - - - 20,918,323 

Actuarial FECA Liability - - - 32,427,866 32,427,866 

Accrued Payroll and Benefits 6,763,623 - - - 6,763,623 

Unfunded Accrued Annual Leave - - - 7,321,389 7,321,389 

Other Liabilities 36,374 - - - 36,374 

Total Public Liabilities 27,718,320 - - 39,749,255 67,467,575 

Total $ 35,758,028 $ - $ - $ 39,749,255 $ 75,507,283 
56 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

Liabilities Covered and not Covered by Budgetary Resources as of September 30, 2014: 

Liabilities

Liabilities Covered by 

Budgetary Resources

Liabilities Not Covered by 

Budgetary Resources

Current Non-Current Current Non-Current 2014

Intragovernmental Liabilities

Accounts Payable $ 4,529,826 $ - $ - $ - $ 4,529,826 

Advances from Others 603,219 - - - 603,219 

 5,133,045 - - - 5,133,045 

Other Liabilities

Accrued Benefits 1,462,263 - - - 1,462,263 

Accrued Workers’ Compensation 556,003 - - - 556,003 

Unemployment Compensation 200,000 - - - 200,000 

Deposit Fund Liability - Federal (15,526) - - - (15,526)

Liabilities for Non-Entity Assets 158,858 - - - 158,858 

Total Other Liabilities 2,361,598 - - - 2,361,598 

Total Intragovernmental Liabilities 7,494,643 - - - 7,494,643 

Public Liabilities

Accounts Payable 23,158,599 - - - 23,158,599 

Actuarial FECA Liability - - - 35,349,785 35,349,785 

Accrued Payroll and Benefits 6,522,459 - - - 6,522,459 

Unfunded Accrued Annual Leave - - - 7,125,969 7,125,969 

Other Liabilities 77,556 - - - 77,556 

Total Public Liabilities 29,758,614 - - 42,475,754 72,234,368 

Total $ 37,253,257 $ - $ - $ 42,475,754 $ 79,729,011 
Notes to the Financial Statements | 57

NOTE 9 – LEASE COMMITMENTS 

OPERATING LEASES: Future Operating Lease Payments Due as of September 30, 2015: 

Year Building

Structures Vehicles Office Space Parking Total

2016 $ 505,445 $ 409,650 $ 22,844,510 $ 251,724 $ 24,011,329 

2017 516,740 89,114 5,675,464 61,818 6,343,136 

2018 528,299 1,210 - - 529,509 

2019 540,127 - - - 540,127 

2020 552,231 - - - 552,231 

Thereafter 1,877,453 - - - 1,877,453 

Total $ 4,520,295 $ 499,974 $ 28,519,974 $ 313,542 $ 33,853,785 

The House maintains operating leases for building 

structures, vehicles and district office space and parking. 

The lease agreements are in accordance with House 

rules and regulations and agreed upon vendor terms and 

conditions. In accordance with the Members’ Congressional 

Handbook, the House requires that leases entered into by 

Members for space be no longer than the elected term of the 

Member. Members and Officers also enter into leases to rent 

vehicles for official business purposes. A Member may lease 

a vehicle for a period that exceeds the current congressional 

term, but the Member remains personally responsible for 

the lease liability if service to the House concludes prior to 

lease termination. Operating lease payments are recorded as 

expenses. Future operating lease payments are not accrued 

as liabilities. Members may lease office space in their 

districts through the U.S. General Services Administration 

or may directly lease space from the private sector. 

NOTE 10 – COMMITMENTS AND CONTINGENCIES

Contingencies should be recognized as a liability when a 

past transaction or event has occurred, a future outflow 

or other sacrifice of resources is probable, and the related 

future outflow or sacrifice of resources is measurable. 

General contingent liabilities consist of claims filed 

against the House which are awaiting adjudication. For the 

purpose of estimating contingent liabilities for the financial 

statements, the House conducted a review of existing claims 

for which the likelihood of loss to the House is probable. 

Additionally, management and the House’s General Counsel 

evaluated the materiality of cases determined to have a 

reasonably possible chance of an adverse outcome.

The House is currently involved in one legal matter where 

the sacrifice of resources is probable and the range of 

the loss cannot be estimated; and one legal matter where 

the sacrifice of resources is reasonably possible, but the 

likelihood of an unfavorable outcome or the range of the 

loss cannot be predicted. Therefore, a contingent liability 

was not recorded and there is no impact to the financial 

statements. 

Management believes all other claims are immaterial with 

respect to the House’s financial statements. Under law, any 

settlement of claims litigated in court would be settled by 

Treasury’s Judgment Fund.
58 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

NOTE 11 – INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental Costs and Exchange Revenue for the Years Ended September 30, 2015 

and 2014: 

Intragovernmental Costs and Exchange Revenue 2015 2014

Legislative Activities

Intragovernmental Costs $ 504,774,083 $ 522,658,990 

Public Costs 960,792,155 962,568,515 

Total Costs 1,465,566,238 1,485,227,505 

Intragovernmental Earned Revenue (4,133,978) (4,808,424)

Public Earned Revenue (421,658) (554,109)

Total Earned Revenue (4,555,636) (5,362,533)

Net Program Costs 1,461,010,602 1,479,864,972 

Revolving Fund Activities

Intragovernmental Costs 172,100 152,393 

Public Costs 2,342,757 1,812,658 

Total Costs 2,514,857 1,965,051 

Intragovernmental Earned Revenue (1,958,984) (1,957,655)

Public Earned Revenue (2,588,126) (2,778,807)

Total Earned Revenue (4,547,110) (4,736,462)

Net Program Costs (2,032,253) (2,771,411)

Total

Intragovernmental Costs 504,946,183 522,811,383 

Public Costs 963,134,912 964,381,173 

Total Costs 1,468,081,095 1,487,192,556 

Intragovernmental Earned Revenue (6,092,962) (6,766,079)

Public Earned Revenue (3,009,784) (3,332,916)

Total Earned Revenue (9,102,746) (10,098,995)

Net Cost of Operations $ 1,458,978,349 $ 1,477,093,561 
Notes to the Financial Statements | 59

NOTE 12 – PERSONNEL AND BENEFITS COMPENSATION

Personnel and Benefits Compensation for the Years Ended September 30, 2015 and 2014:

Member and Employee Personnel and Benefits Compensation 2015 2014

Personnel Compensation $ 740,761,368 $ 731,485,118 

Retirement Plan Contributions 149,543,129 140,066,298 

Social Security 51,793,753 50,799,657 

Health Insurance 40,316,499 46,845,084 

Student Loan/Fitness Center Programs 14,283,424 14,542,300 

Unemployment and Workers’ Compensation 3,922,581 2,718,388 

Transit Benefits 2,233,078 2,322,577 

Life Insurance 1,091,234 1,081,786 

Death Benefits 890,476 901,349 

Annual Leave 195,420 (793,519)

Allowances 25,000 25,000 

Workers' Compensation Actuarial Adjustment (2,921,919) (3,157,150)

Total $ 1,002,134,043 $ 986,836,888 

NOTE 13 – EMERGENCY PREPAREDNESS

The House continues to develop contingency plans and 

capabilities to ensure the continuation of essential House 

Operations in the occurrence of a disruptive event. 

Approximately $17 million and $16 million were expended 

in 2015 and 2014, respectively.

NOTE 14 – EXCHANGE REVENUES

In certain cases, the prices charged by the House for the 

sale of goods and services are set by House rules and 

regulations, which for program and other reasons may not 

represent full cost. In other cases, prices set for goods and 

services are intended to recover the full costs incurred by 

these activities (e.g., child care fees, postal fees, and Gift 

Shop sales to the public).
60 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

NOTE 15 – IMPUTED FINANCING FROM COST ABSORBED BY OTHERS

The House must recognize an imputed cost and imputed 

financing source for costs associated with the occupancy 

of the U.S. Capitol, House office buildings, and the O’Neill 

Federal Building; a portion of Federal Employee and 

Veterans’ Benefits; and settlement of claims and litigation 

paid by Treasury’s Judgment Fund. During FY 2015, the 

House offices continued expansion to the O’Neill Federal 

Building due to planned renovations in the Cannon House 

Office Building. The imputed cost is recognized in the 

Statement of Net Cost and the imputed financing source is 

recognized in the Statement of Changes in Net Position.

Imputed Financing from Cost Absorbed by Others for the Years Ended September 30, 2015 

and 2014:

Imputed Cost and Financing Source 2015 2014

Occupancy Costs $ 176,560,336 $ 176,042,979

Federal Employee and Veteran’s Benefits

Current Service Cost - Federal Employee Health Benefits 35,986,020 33,783,292 

Current Service Cost - Federal Pensions 15,423,645 28,764,007 

Current Service Cost - Federal Employee Group Life Insurance 107,041 106,693 

Total Federal Employee and Veteran’s Benefits 51,516,706 62,653,992 

Claims to be Paid by the U.S. Treasury’s Judgment Fund on Behalf of the House - 2,500,000 

Total $ 228,077,042 $ 241,196,971 

NOTE 16 – UNDELIVERED ORDERS AT THE END OF THE PERIOD

Undelivered Orders represent the amount of paid and 

unpaid orders for goods and services ordered which have 

not been received.

Undelivered Orders as of September 30, 2015 and 2014:

Undelivered Orders at the End of the Period 2015 2014

Undelivered Orders, Unpaid $ 51,127,548 $ 49,275,328 

Undelivered Orders, Paid 9,989,430 4,808,960 

Total $ 61,116,978 $ 54,084,288 

NOTE 17 – PERMANENT INDEFINITE APPROPRIATIONS

A permanent and indefinite appropriation is a standing 

appropriation which, once made, is always available for 

specified purposes and does not require repeated action 

by Congress to authorize its use. Legislation authorizing 

an agency to retain and use offsetting receipts tends to be 

permanent; if so, it is a form of permanent appropriation. 

This appropriation is for an unspecified amount of money; 

and may appropriate all or part of the receipts from certain 
Notes to the Financial Statements | 61

sources, the specific amount of which is determinable only 

at some future date, or it may appropriate “such sums as 

may be necessary” for a given purpose. 

The House has two permanent and indefinite appropriations. 

These appropriations include the Compensation of Members 

and Related Administrative Expenses, and Congressional 

Use of Foreign Currency.

Compensation of Members and Related Administrative 

Expenses is maintained and administered by the House. 

Public Law 97-51, Sec. 130(c), Oct. 1, 1981, 95 Stat. 966, 

Appropriation of funds for Compensation of Members 

of Congress and for Administrative Expenses at Levels 

Authorized by Law and Recommended by the President for 

Federal Employees, establishes the appropriation to fund 

the payroll and benefits compensation for Members of 

Congress and related administrative expenses in support of 

administering the fund.

Congressional Use of Foreign Currency is maintained 

and administered by the Department of State on behalf of 

the House. This account, which was established in 1948 

and made permanent in 1981, is authorized by legislation 

codified in Title 22, Sec. 1754 of the United States Code. 

The funds are available to Congressional Committees and 

delegations to cover local currency expenses incurred while 

traveling abroad. Use of the foreign currency account for 

Congressional delegations and other official foreign travel of 

the House is authorized by either the Speaker of the House 

or the chairman of a Standing, Special and Select, or Joint 

Committee. 

NOTE 18 – EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF 

BUDGETARY RESOURCES AND THE BUDGET OF THE U.S. GOVERNMENT

The Budget of the U.S. Government with actual amounts 

has not been published as of September 30, 2015. This 

document will be available in February 2016.

Differences between the Statement of Budgetary Resources and the Budget of the

U.S. Government as of September 30, 2014: 

Differences between the Statement of Budgetary Resources 

and the Budget of the U.S. Government Budgetary Resources Net Outlays

Statement of Budgetary Resources $ 1,295,494,000 $ 1,233,068,618 

Difference 506,000 (68,618)

Budget of the U.S. Government $ 1,296,000,000 $ 1,233,000,000 

The House deems the variances between the amounts 

reported in the Statement of Budgetary Resources and 

the actual amounts reported in the Budget of the U.S. 

Government for budgetary resources and net outlays to be 

immaterial and/or insignificant. As such, reconciliation of 

this item is not necessary and therefore not included.
62 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

NOTE 19 – RECONCILIATION OF BUDGETARY RESOURCES OBLIGATED TO 

NET COST OF OPERATIONS

For the Years Ended September 30, 2015 and 2014:

2015 2014

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $ 1,270,578,816 $ 1,268,889,233 

Spending Authority from Offsetting Collections and Recoveries (24,867,905) (27,342,224)

Obligations Net of Offsetting Collections and Recoveries 1,245,710,911 1,241,547,009 

Net Obligations 1,245,710,911 1,241,547,009 

Other Resources

Imputed Financing from Costs Absorbed by Others 228,077,042 241,196,971 

Net Other Resources Used to Finance Activities 228,077,042 241,196,971 

Total Resources Used to Finance Activities 1,473,787,953 1,482,743,980 

Resources Used to Finance Items not Part of the Net Cost of Operations:

Change in Budgetary Resources Obligated for Goods, Services, and 

Benefits Ordered but not Yet Provided (6,832,225) (9,119,006)

Resources that Finance the Acquisition of Assets (17,639,009) (9,046,039)

Other Resources or Adjustments to Net Obligated Resources 

that do not affect Net Cost (428,856) (332,963)

Total Resources Used to Finance Items not Part of the

Net Cost of Operations (24,900,090) (18,498,008)

Total Resources Used to Finance the Net Cost of Operations $ 1,448,887,863 $ 1,464,245,972 

Components of Net Cost of Operations That will not Require or 

Generate Resources in the Current Period:

Components Requiring or Generating Resources in Future Periods:

Increase/(Decrease) in Actuarial Liability $ (2,921,919) $ (3,157,150)

Increase/(Decrease) in Annual Leave Liability 195,420 (793,519)

Other (207,554) 111,038 

Total Components of Net Cost of Operations Requiring or 

Generating Resources in Future Periods (2,934,053) (3,839,631)

Components not Requiring or Generating Resources:

Depreciation and Amortization 11,605,276 15,557,009 

Revaluation of Assets or Liabilities 40,811 155,897 

Other 1,378,452 974,314 

Total Components of Net Cost of Operations not Requiring or 

Generating Resources 13,024,539 16,687,220 

Total Components of Net Cost of Operations that will not 

Require or Generate Resources in the Current Period 10,090,486 12,847,589 

Net Cost of Operations $ 1,458,978,349 $ 1,477,093,561 
Required Supplementary Information (unaudited) | 63

Required Supplementary 

Information
64 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Required Supplementary Information (unaudited) | 65

REQUIRED SUPPLEMENTARY INFORMATION

Stewardship Property and Equipment

The U.S. House of Representatives (House) collection of 

heritage assets includes historical artwork and artifacts that 

reflect the rich heritage and evolving nature of the House. 

The institution mirrors the changing face and history of 

the nation. These ideals and trials of our history are also 

expressed in the heritage assets whose subject matter 

includes prominent Americans and other distinguished 

individuals, significant moments in history, and symbolic 

representations of the nation’s rich and diverse history.

The House’s Curator manages and cares for the House’s 

collection of works of art and artifacts under its jurisdiction 

which are located throughout the U.S. Capitol complex 

including House office buildings and other locations under 

the control of the House. Since these locations are not in a 

museum setting, works of art and artifacts may be subject 

to damage from contact and surface deposits. However, it is 

the House’s goal to preserve its heritage assets and manage 

the condition in accordance with the intended usage of the 

collection. The House conducts periodic assessments to 

monitor, inspect and evaluate the condition of the heritage 

assets to determine the current condition for preservation 

or restoration efforts. These assessments are performed 

in accordance with House established practice and 

professional standards. General conditions are categorized 

as excellent, good, fair and poor. The House has determined 

its heritage assets to be in good to excellent condition. 

The following tables present the general condition of the 

House’s heritage assets and indicate an aggregate condition 

of the collection as of September 30, 2015:

Heritage Asset Collection - Artwork

General Condition 2014 Increase Decrease 2015

Good to Excellent 334 11 - 345

The works of art include oil and acrylic paintings, works on 

paper, and sculpture in bronze, marble and other media. 

These items range from portraits and historical documents 

to statues and other works of art.

Examples of the House’s collection of works of art include:

Oil Paintings

The House’s collection of oil paintings primarily consists 

of the portraits of House of Representatives’ Speakers and 

Committee Chairmen. An example includes that of Speaker 

Henry Clay by Guiseppe Fagnani in 1852. His portrait was 

the first of what became the Speaker’s portrait series in 

the House Collection. This portrait series became official 

with House Resolution 164 in 1910, which decreed that the 

service of every speaker be commemorated with an oil 

portrait. All Speaker portraits hang in the Speaker’s Lobby 

and in the East and West Chamber stairways that adjoin it.

Acrylic Paintings

The House’s collection of acrylic paintings includes 

Committee portraits painted in acrylic on canvas. One 

such example is the portrait of former Chairman of the 

Committee on Appropriations, George Mahon.

Works on Paper

The House’s collection of works on paper includes items 

such as an early 19th century sketch of Speaker Jonathan 

Dayton. 

Sculptures

The House’s collection of sculptures includes items such 

as several marble busts of former Speakers of the House, 

including Speakers Thomas B. Reed, Joseph G. Cannon, 

James Beauchamp Clark, and Nicholas Longworth.
66 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015

Heritage Asset Collection - Artifacts

General Condition 2014 Increase Decrease 2015

Good to Excellent 5,731 2,054 1 7,784

The artifacts include items in various types of media, 

including but not limited to paper, metal, plaster, wood, 

textile and stone. These items range from photographs 

and other historical images, literature (e.g., newspapers, 

magazines, and handbills), and political campaign 

buttons to engravings, furniture, and other types of 

historical artifacts.

Examples of the House’s collection of artifacts include:

Paper

The House’s collection of paper artifacts include items 

such as photographs of the House of Representatives 

Chamber in 1937; Visitor’s Gallery passes from various 

Representatives from the early 1900’s; detail of a tally 

sheet of the February 9, 1825 Electoral College vote from 

the records of the U.S. House of Representatives with the 

names of Andrew Jackson of Tennessee, John Quincy 

Adams of Massachusetts, William H. Crawford of Georgia, 

and Henry Clay of Kentucky appearing written in longhand; 

and Campaign Cards and other memorabilia of various 

Representatives dating back to the early 1900s. 

Metal

The House’s collection of metal artifacts includes items 

such as an artifact of the House Chamber, the historic 

inkwell that sits on the Speaker’s desk when the House is in 

session, which dates back to the 19th century. The inkwell 

is known to have been used as long ago as 1821 in the Old 

Hall of the House before the Members moved to the present 

chamber.

Plaster

The House’s collection of plaster artifacts include items 

such as several small 1932 busts of George Washington, 

presented to Members of Congress on the bicentennial of 

the first president’s birth. 

Wood

The House’s collection of wood artifacts includes items 

such as the gavel used by Speaker Nancy Pelosi to open the 

110th Congress as the first woman to serve as the House’s 

presiding officer; and an 1819 desk and chair from the 

House Chamber. 

Textile

The House’s collection of textile artifacts includes items 

such as a recent House Page uniform, donated to the 

collection by a former Page.

Stone 

The House’s collection of stone artifacts includes items such 

as a small piece of the U.S. Capitol East front stairs.
Other Information (unaudited) | 67

Other Information
68 | UNITED STATES HOUSE OF REPRESENTATIVES AUDIT REPORT 2015
Other Information (unaudited) | 69

COMBINED SCHEDULE OF SPENDING

For the Years Ended September 30, 2015 and 2014

2015 2014 

(Reclassify)

What Money is Available to Spend?

Total Resources $ 1,504,572,133 $ 1,461,745,293 

Less Amount Available but Not Agreed to be Spent (223,072,499) (182,011,041)

Less Amount Not Available to be Spent (10,920,818) (10,845,019)

Total Amounts Agreed to be Spent $ 1,270,578,816 $ 1,268,889,233 

How was the Money Spent/Issued?

Personnel Compensation & Benefits $ 1,006,282,580 $ 994,059,412 

Contracts 97,689,105 76,111,096 

Other 166,607,131 198,718,725 

Total Amounts Agreed to be Spent $ 1,270,578,816 $ 1,268,889,233 

Who did the Money go to?

Federal $ 295,715,313 $ 300,824,257 

Non-Federal 974,863,503 968,064,976 

Total Amounts Agreed to be Spent $ 1,270,578,816 $ 1,268,889,233 

The FY 2014 Schedule of Spending was reclassified for the 

following section: 

Who did the Money go to? - to accurately reclassify 

approximately $20M of transactions that were initially 

recorded in the ‘Federal’ line item, but were later discovered 

to be ‘Non-Federal’ type items based on a review of the 

supporting documentation while performing a similar 

analysis for the FY 2015 Schedule of Spending.
U.S. House of Representatives

OFFICE OF INSPECTOR GENERAL