Evening star., 1949-06-08

less than the cost Of construction ?
A. The fees waived amounted 10
s32.7I8.e0 as follows: 1914. tsT2 - /:
le45. s3.7l3s7: is4s, s2s.i33.oo; !;
9totaling, s32.7isso.
@. You mention that fees COW
ering 1914. l945 and ls46 were
waived. Were any fees waived for
the years Ie4T or is4S?
A. The records do not disclose
any evidence that such fees were
waived. However. the fees for
ie47 and 1913 as shown by the
concessionaire's books are as fol-
lows: ie4T. s2s.ls2.77: ls4s. S4.-
550.l2: or a total Of $32.7i28s.
The concessionaire's books show
total fees OF $65.43l7s covering
the years 1914 TO le4s. inclusive.
as applicable TO the Ft. Dupont
project. However. when deter
mining the fee for ls4s OF $4.-
550.l2. the concessionsire in
ciuded. In its income. an amount
Of s16.s93 80 which represented a
transfer from a reserve fund pre-
viously established for the con-
struction and which should not
have been treated as other income
and the priority Of 81, 800 taken by
the contractor. but rather the
amount Of sle,s93 80 should be a
reduction Of the expense originally
charged when establishing the re-
serve. In fact q loss was sus-
tanned for i94S of $4,29356 and
no fee was due. The amount of
$l6.8e3 80 should have been di-
vided between the Government
and the concessionaire in the year
in which the expense was charged.
The Government share being
sS.446. 90 instead Of $4.5S0.12.
Q. Were any other construction
projects entered into?
A. Yes. On February 10. 1948,
the concesionaire offered TO pro-
vide all the capital necessary to
construct miniature golf courses
at Anacostia and Langston Park.
Approval for such construction
was authorized by the Interior De-
partment on May Z. 1948, with the
provision that the net profits from
the operations of its two mini
ature golf courses were to be ap-
piled In reduction of the construc-
ton cost and not TO be considered
as an investment by the company
or included in the company's net
worth.
@. What was the cost OF con-
struction of miniature golf
courses?
A. The cost Of construction Of
the two miniature golf courses
amounted to $53 3,225.44.
@. What were the profits from
operations of the miniatures
A. The profits from the minia-
lures were $28,482.72. However,
the construction cost Of $53, ,225. A
exceeded the remaining ceiling Of
5 per cent of gross annual receipts
by $4S,792 90 and, consequently,
only $4.433.35 of profits would be
applicable during that year. The
balance of $24.049.37 out of the
profits of s28.4s2.72 would then
be for distribution between the
parties and the Governments s
share would be $12,024.68.
@. Giving effect to the adjust
ments you have told US about and
any other audit adjustments and
applying the fees on the basis of
the per cent per annurn limita-
ton In the contract. what would
be the unabsorbed balance of the
construction cost Of the Fort Du-
pont project and the miniature
golf courses? ~
A. The unabsorbed balance of
the construction costs at Decem-
ber 81. 1948. on the basis of the
audit adjustments would be as
follows: Fort Dupont. $117.334e1:
miniatures. $4s, ,7e2.09; or q total
Of $166,127.00.
@. In arriving at the unab-
sorbed construction cost of $780,
127 which Is based on application
Of the 5 per cent limitation each
year. what amount in unapplied
fees would be due the Govern
ment?
A. The amount due the Gov
eminent as Of December 81. 1940.
In fees not applied, would be
$119,515.1S.