GAO-01-1034R Interparliamentary Groups

United States General Accounting Office

Washington, DC 20548

August 14, 2001

The Honorable Henry J. Hyde

Chairman

Committee on International Relations

House of Representatives

Subject: Applying Agreed-Upon Procedures: House Interparliamentary Groups

Dear Mr. Chairman:

We have performed the procedures you requested to assist the Committee in evaluating

the extent to which five House Interparliamentary Groups’ Schedules of Receipts,

Disbursements, and Fund Balance for the years ended December 31, 2000 and 1999,

appropriately reflect the cash receipts and disbursements and fund balance for the years

then ended. The schedules, prepared by the treasurer of each group, present for the

years ended December 31, 2000 and 1999, the opening fund balance, total receipts and

disbursements by category, and ending fund balance, on a cash basis, for each of the

following groups:

! British-American Parliamentary Group,

! Canada-United States Interparliamentary Group,

! Mexico-United States Interparliamentary Group,

! Transatlantic Legislators' Dialogue (formerly the United States-European

Community Interparliamentary Group), and

! The United States Group of the NATO Parliamentary Assembly (formerly the

United States Group of the North Atlantic Assembly).

In summary, the procedures you asked us to perform included reviewing documentation

supporting each group’s recorded receipt and disbursement transactions and related fund

balance for evidence that the transactions were properly authorized and recorded. We

also recalculated the reported amounts using each group’s general journal and supporting

documents and compared the recalculated amounts to the reported amounts in each

group’s 2000 and 1999 schedule. The individual agreed-upon procedures along with our

results are presented in enclosure I. The unaudited 2000 and 1999 schedules for each of

the five Interparliamentary Groups are presented in enclosure II.

By specifying the procedures, your office was responsible for ensuring that the

procedures were sufficient to meet your objectives, and we make no representations in

that respect. In performing the agreed-upon procedures, we conducted our work in

accordance with U.S. generally accepted government auditing standards, which
Page 2 GAO-01-1034R Interparliamentary Groups

incorporate applicable standards for attestation engagements established by the

American Institute of Certified Public Accountants. These attestation standards provide

guidance for performing and reporting the results of agreed-upon procedures. In

agreeing to perform the procedures you requested, we discussed this guidance and the

related limitations on the nature, scope, and intended use of our work with your

Committee staff. Since we were not asked to, and did not perform, an examination, the

objective of which would be to express an opinion, we do not express an opinion on the

schedules. We began our work on June 25, 2001, and completed our work on July 13,

2001.

We provided a draft of this letter, along with its enclosures, to your staff for review and

comment. Your staff agreed with the contents of this letter and the enclosures. This

letter is intended for the use of the House Committee on International Relations and is

not intended to be, and should not be, used by those who have not agreed to the

procedures or taken responsibility for their sufficiency. However, this letter is a matter

of public record and its distribution is not limited. We are sending copies of this letter to

the Chairmen of the individual House Interparliamentary Groups and the Ranking

Minority Member of the House Committee on International Relations. This letter will

also be available on GAO’s home page at http://www.gao.gov. If you have any questions

concerning our work or the results of the agreed-upon procedures, please contact me on

(202) 512-2600 or Jeanette Franzel, Acting Director, on (202) 512-9406.

Sincerely yours,

Jeffrey C. Steinhoff

Managing Director

Financial Management and Assurance

Enclosures
Enclosure I

Page 3 GAO-01-1034R Interparliamentary Groups

Agreed-Upon Procedures and Related Results

Receipts Procedures

1. Compare the amount of the appropriation recorded in the general journal as

received for calendar years 2000 and 1999 to evidence of the amount of the

appropriation requested and related deposits shown on the bank statements.

2. Compare the interest recorded in the general journal as received for calendar

years 2000 and 1999 to the interest credited on each group’s 2000 and 1999 bank

statements.

3. Compare the other receipts recorded in the general journal as received for

calendar years 2000 and 1999 to deposit slips, bank statements, and/or other

documentation evidencing other receipts.

Results

For each group, the annual appropriation, interest, and other receipts recorded in the

general journal agreed with and were supported by appropriate documentation.

Disbursements Procedures

For each disbursement for calendar years 2000 and 1999, record the category of the

disbursement on the GAO-prepared schedule, and

1. compare the voucher amount to the amount disbursed per the general journal;

2. compare the payee on the voucher to the supporting documents;

3. examine each voucher and supporting documents for evidence that the

designated official certified (signed) that the goods and/or services were received

and the voucher was approved (signed) by the authorizing official before it was

submitted for payment;

4. examine each canceled check to determine that the check was signed by the

designated official and endorsed by the payee;

5. examine the disbursement entry in the general journal to determine whether the

journal entry included the date of the check, the payee, the check number, the

amount, and the description of the type or category of goods or services provided;

and

6. examine the check register and subsequent bank statements to determine if a

check was recorded, issued, and paid for each payment voucher.
Enclosure I

Page 4 GAO-01-1034R Interparliamentary Groups

Results

For each voucher,

1. The amount agreed with the amount recorded as disbursed in the general journal.

2. The payee named agreed with the supporting documents.

3. The designated official certified (signed) that the goods and/or services were

received and the authorizing official approved (signed) each voucher before it was

submitted for payment.

4. In examining each canceled check to determine that the check was signed by the

designated official and endorsed by the payee, we found one check on which the

payee did not match the endorsee on the check. A check disbursed for the

Mexico-United States Group in 2000 was endorsed by someone other than the

payee on the voucher and check. We inquired at the payee’s office and were told

that the endorsee was authorized to sign for the payee.

5. In examining the disbursement entry in the general journal to determine whether

the journal entry included the date of the check, the payee, the check number, the

amount, and the description of the type or category of goods or services provided,

we found that each group’s journal entries contained the required information

with three exceptions.

! One transaction in 2000 for Transatlantic Legislators' Dialogue was entered

into the general journal using the date the voucher was prepared instead of

using the date on the check.

! One general journal entry in 2000 for Transatlantic Legislators' Dialogue did

not contain the description of the transaction. The related supporting

documents did provide a description of the type of payment.

! For 2000 and 1999, the NATO Parliamentary Assembly Group treasurer did not

enter the date when recording every disbursement. According to the group’s

treasurer, she only dated the first disbursement recorded for a day and all

other transactions recorded on the same date were left undated.

6. Finally, we found that a check was recorded, issued, and paid for every payment

voucher generated by each group in 2000 and 1999.

Overall Procedures

1. Using the amounts recorded in the general journal for 2000 and 1999, recalculate

the total receipts for each year by category (appropriations, interest, and other)

and total disbursements for the year by category (representational functions,

interpreters/translation, travel, lodging/per diem, transfers to U.S. Treasury, and

miscellaneous). Trace the recalculated amounts to the amounts in the 2000 and

1999 Schedules of Receipts, Disbursements, and Fund Balance.
Enclosure I

Page 5 GAO-01-1034R Interparliamentary Groups

2. Trace the opening fund balances recorded in the general journals for 2000 and

1999 to the ending balances recorded in the prior year’s journals. Trace both

opening and ending fund balances for 2000 and 1999 in the general journals to the

bank statements and the Schedules of Receipts, Disbursements, and Fund

Balance for 2000 and 1999. Recalculate each group’s ending balance for 2000 and

1999 by adding all receipts posted to its journal to the opening balances recorded

in the journal for 2000 and 1999, and subtracting all disbursements and other

charges recorded in the journal for 2000 and 1999.

3. Review the reconciliation for each group’s 2000 and 1999 year-end bank

statements and related reconciling items. Review subsequent bank statements for

evidence that the reconciling items were posted as provided for in the

reconciliation.

4. With respect to each procedure, obtain an explanation for any differences

between amounts recorded in the general journal, the bank statements, and the

Schedules of Receipts, Disbursements, and Fund Balance.

Results

1. The recalculated amounts of total receipts and disbursements by category as

recorded in the general journal agreed with the amounts in the 2000 and 1999

Schedule of Receipts, Disbursements, and Fund Balance for all groups. We traced

the recalculated amounts to the 2000 and 1999 Schedule of Receipts,

Disbursements, and Fund Balance for each group.

2. The opening fund balances for 2000 and 1999, as recorded in each group’s general

journal, agreed with the ending balances from the prior year’s workpapers for four

out of the five groups. The treasurer for the British-American Group did not carry

forward the ending balance from the prior year in the general journal to the

opening balance for 2000 and 1999. However, we confirmed that the numerical

accounting of disbursements and receipts were correctly calculated, as if the

opening balance had been stated.

3. The opening and ending fund balances for 2000 and 1999 in each group’s general

journal and related bank statements agreed with the opening and ending fund

balances in each group’s Schedule of Receipts, Disbursements, and Fund Balance

for 2000 and 1999 except as noted above.

! The recalculated ending balances agreed with the ending balances, as reported

for all groups, in their 2000 and 1999 Schedules of Receipts, Disbursements,

and Fund Balance.

! For each group, the subsequent month's bank statements evidenced that all

outstanding items identified during the year-end bank reconciliation were later

posted to the account.
Enclosure I

Page 6 GAO-01-1034R Interparliamentary Groups

4. We obtained a satisfactory explanation for any identified differences in amounts

recorded in the general journals, the bank statements, and the Schedules of

Receipts, Disbursements, and Fund Balance.
Enclosure II

Page 7 GAO-01-1034R Interparliamentary Groups

Schedules for the Interparliamentary Groups (Unaudited)

British-American Interparliamentary Group

For the year ended December 31,

2000 1999

Beginning fund balance 2 $158,179.36 $133,980.28

Receipts:

Appropriation 25,000.00 $ $25,000.00

Interest 1,722.16 1,506.08 

Total receipts $26,722.16 $26,506.08

Disbursements:

Travel 0.00 $2,307.00

Transfers to U.S. Treasury 3 0.00 3,849.18

Total disbursements $3,849.18 $2,307.00

Ending fund balance 4 $181,052.34 $158,179.36

House of Representatives

British-American Parliamentary Group

Schedule of Receipts, Disbursements, and Fund Balance 1

(Unaudited)

 1 The Schedule of Receipts, Disbursements, and Fund Balance is prepared on a cash basis.

 2

 Beginning Fund Balance represents the balance at January 1, 1999 and 2000 of interparliamentary group funds carried 

over from the prior period. 

 3

 Transfers represent disbursements by the Group to the U.S. Treasury pursuant to Section 502(b) of Title V of Public 

Law 103-236 (108 Stat. 462). Under this provision, interest earned from funds provided to the Group pursuant to Section 

303 of Title III of Public Law 100-202 (101 Stat. 1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts 

shall be periodically deposited in a miscellaneous account of the Treasury. 

 4

 Ending Fund Balance represents the fund balance remaining at December 31, 1999 and 2000 and available for use in a 

subsequent period. 
Enclosure II

Page 8 GAO-01-1034R Interparliamentary Groups

Canada-United States Interparliamentary Group

For the year ended December 31,

 2000 1999

Beginning fund balance 2 $48,955.81 $71,503.98

Receipts:

Appropriation $35,000.00 $35,000.00

Interest 293.39 751.93 

Other 3 0.00 2,156.00

Total receipts $37,449.39 $35,751.93

Disbursements:

Representational functions 4 $37,151.00 $45,341.23

Travel 0.00 2,568.46 

Lodging/per diem 9,900.00 10,390.41 

Transfers to U.S. Treasury 5 0.00 2,490.66

Miscellaneous 575.91 0.00

Total disbursements $50,117.57 $58,300.10

Ending fund balance 6 $36,287.63 $48,955.81

House of Representatives

Canada-United States Interparliamentary Group

Schedule of Receipts, Disbursements, and Fund Balance 1

(Unaudited)

 5 Transfers represent disbursements by the Group to the U.S. Treasury pursuant to Section 502(b) of Title V of Public 

Law 103-236 (108 Stat. 462). Under this provision, interest earned from funds provided to the Group pursuant to Section 

303 of Title III of Public Law 100-202 (101 Stat. 1329-23; 22 U.S.C. 276 note) and deposited in interest-bearing accounts 

shall be periodically deposited in a miscellaneous account of the Treasury.

 6

 Ending fund balance represents the fund balance remaining at December 31, 2000 and 1999 and available for use in 

a subsequent period.

 1

 The Schedule of Receipts, Disbursements, and Fund Balance is prepared on a cash basis.

 2

 Beginning Fund Balance represents the balance at January 1, 2000 and 1999 of interparliamentary group funds 

carried over from the prior period.

 3

 Other receipts consist of amounts repaid by congressional members/staff for expenses related to activities of 

interparliamentary groups which were initially paid out of annual appropriations provided to fund the group: including 

reimbursement from Representatives Upton, Gilman, English, Houghton and Payne for official expenses incurred in 1999 

and 2000.

 4

 Representational functions include the costs associated with holding the interparliamentary groupsí annual 

conferences. These costs include expenses for supplies, gift items, ground transportation, official delegation group meals, 

and meeting room costs.
Enclosure II

Page 9 GAO-01-1034R Interparliamentary Groups

Mexico-United States Interparliamentary Group

For the year ended December 31,

 2000 1999

Beginning fund balance 2 $107,966.33 $132,548.62

Receipts:

Appropriation $40,000.00 $40,000.00

Interest 1,184.68 1,259.67

Other 3 16,492.29 123.00

Total receipts $57,676.97 $41,382.67

Disbursements:

Representational functions 4 $20,149.56 $57,049.03

Interpreters/translation 6,594.09 1,079.88

Travel 4,687.62 998.00

Lodging/per diem 6,964.27 6,204.84

Transfers to U.S. Treasury 5 3,609.62 0.00

Miscellaneous 586.09 633.21

Total disbursements $42,591.25 $65,964.96

Ending fund balance 6 $123,052.05 $107,966.33

House of Representatives

Mexico-United States Interparliamentary Group

Schedule of Receipts, Disbursements, and Fund Balance 1

(Unaudited)

 5 Transfers represent disbursements by the Group to the U.S. Treasury pursuant to Section 502(b) of Title V 

of Public Law 103-236 (108 Stat. 462). Under this provision, interest earned from funds provided to the Group 

pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat. 1329-23; 22 U.S.C. 276 note) and 

deposited in interest-bearing accounts shall be periodically deposited in a miscellaneous account of the 

Treasury.

 6 Ending fund balance represents the fund balance remaining at December 31, 1999 and 2000, and 

available for use in a subsequent period.

 1

 The Schedule of Receipts, Disbursements, and Fund Balance is prepared on a cash basis.

 2

 Beginning Fund Balance represents the balance at January 1, 1999 and 2000 of interparliamentary group 

funds carried over from the prior period.

 3

 Other receipts consist of unused funds repaid by congressional staff for advance travel expenses; 

reimbursement from the Department of State for official per diem expenses incurred by three Members not part 

of the official Speaker appointed delegation; and also reimbursement from the Senate for shared expenses 

paid by the House. 

 4

 Representational functions include the costs associated with holding the interparliamentary groupsí annual 

conferences. These costs include expenses for supplies, gift items, ground transportation, official delegation 

group meals, and meeting room costs.
Enclosure II

Page 10 GAO-01-1034R Interparliamentary Groups

Transatlantic Legislators’ Dialogue

For the year ended December 31,

2000 1999

Beginning fund balance 2 $130,944.60 $82,719.10

Receipts:

Appropriation $50,000.00 $50,000.00

Interest 1,501.52 1,082.85 

Total receipts $51,501.52 $51,082.85

Disbursements:

Representational functions 3 $20,196.49 $2,319.35

Interpreters/translation 2,920.00 0.00

Travel 0.00 460.00 

Lodging/per diem 0.00 0.00

Miscellaneous 4 78.00 3,475.67 

Total disbursements $26,592.16 $2,857.35

Ending fund balance 5 $155,853.96 $130,944.60

 5 Ending fund balance represents the fund balance remaining on December 31, 1999 and December 31, 2000 

and available for use in subsequent periods.

 1

 The schedule of Receipts, Disbursements, and Fund Balance is prepared on a cash basis.

 2

 Beginning Fund Balance represents the balance at January 1, 1999 and January 1, 2000 of the 

Transatlantic Legislatorsí Dialogue funds carried over from the prior period.

 3

 Representational Functions include the costs associated with holding the annual conferences. These costs 

include expenses for supplies, gift items, ground transportation, official delegation group meals, and control room 

costs.

 4

 Transfers represent disbursements by the Dialogue to the U.S. Treasury pursuant to Section 502(b) of Title 

V of Public Law 103-236 (108 Stat. 462). Under this provision, interest earned from funds provided to the 

Dialogue pursuant to Section 303 of Title III of Public Law 100-202 (101 Stat. 1329-23; 22 U.S.C. 276 note) and 

deposited in interest-bearing accounts shall be periodically deposited in a miscellaneous account of the 

Treasury. Figure for 2000 includes interest payback to U.S. Government for the period January 1998-December 

1999.

House of Representatives

Transatlantic Legislatorsí Dialogue

(Formerly the U.S. - European Community Interparliamentary Group)

Schedule of Receipts, Disbursements, and Fund Balance 1
Enclosure II

Page 11 GAO-01-1034R Interparliamentary Groups

United States Group of the NATO Parliamentary Assembly

(194049)

For the year ended December 31,

 2000 1999

Beginning fund balance 2 $150,272.78 $166,696.00

Receipts:

Appropriation $50,000.00 $50,000.00

Interest 1,613.80 1,538.41 

Other 3 0.00 2,948.28 

Total receipts $51,613.80 $54,486.69

Disbursements:

Representational Functions 4 $19,939.83 $18,698.45

Interpreters/Translation 0.00 0.00

Travel 9,172.94 47,387.71 

Lodging/per diem 1,959.39 800.00 

Repayment of Earned Interest 4,679.90 0.00

Miscellaneous 2,202.93 4,023.75 

Total disbursements $37,954.99 $70,909.91

Ending fund balance 5 $163,931.59 $150,272.78

House of Representatives

United States Group of the NATO Parliamentary Assembly

Schedule of Receipts, Disbursements and Fund Balance 1

(Unaudited)

 5 Ending fund balance represents the final balance remaining at December 31, 2000 and 1999 and 

available for use in a subsequent period.

 1

 The Schedule of Receipts, Disbursements and Fund Balance is prepared on a cash basis.

 2 Beginning Fund Balance represents the balance at January 1, 2000 and 1999 of interparliamentary group 

funds carried over from the prior period.

 3

 Other receipts represent the refund to the fund of unused plane fare for congressional members who were 

to have attended a conference held in November, 1998.

 4

 Representational Functions include the costs associated with holding each of the interparliamentary 

groupsí annual conferences, such as supplies, gift items, ground transportation, official delegation group 

meals, and control rooms.