What OIG Found:
The Office of the Inspector General (OIG) initiated the audit of the Library’s Jakarta overseas field office to evaluate controls in select areas, including financial management and reporting, collection acquisition and processing, asset management, information technology (IT) security, payroll, and physical and preservation controls.
What OIG Evaluated:
We found:
-The Jakarta overseas field office had internal controls in place to ensure safeguards over petty cash. However, we identified funds put to better use related to untimely de-obligation of funds and demurrage charges totaling $84,742.39 and $4,041, respectively.
- The Jakarta overseas field office’s shipment process resulted in delayed shipments of collection items beyond the established six-month shipping interval
- All sampled IT equipment located onsite. However, we identified discrepancies in the inventory list.
Recommendations: There were 15 recommendations made in this report; the following five are the publicly released recommendations.
1) Develop and implement de-obligation standard operating procedures steps and procedures to facilitate the execution of the Jakarta overseas field office's de-obligations, and those of other overseas field offices as applicable, on a more timely basis.
2) Develop and implement preventive and detective controls to mitigate and monitor the Jakarta overseas field office’s future demurrage charges.
3) Analyze its shipping methods and determine the optimal frequency to ensure more timely shipments.
4) Analyze and respond to the risk of CAP participants not having adequate shipping funds for prepaid orders.
5) Analyze the Jakarta office’s IT inventory process and respond as needed to reduce the kind of discrepancies we identified.
