What Office of Inspector General Evaluated
We conducted an audit of the Library of Congress gift shop. Our objectives were to determine whether the design and documentation of the systems of internal control were adequate to ensure the accuracy and reliability of accounting data and to protect Gift Shop assets, and assessing whether compliance with the systems of internal control was adequate to rely on those controls Office of Inspector General conducted the Audit from February 2018 through December 2018.
What Office of Inspector General Found
The Audit report highlights key considerations for the Library’s Gift Shop as it prepares for increased customer traffic and sales following the introduction of the new Visitor Experience. To meet these demands, management must address higher inventory levels, increased point-of-sale activity, and improve merchandising data for informed investment decisions. As a revolving fund, the Gift Shop relies entirely on its ability to operate profit ably, without appropriations, necessitating strong business expertise from its management team.
We found:
- The gift shop must implement an improved accounting system for its financial management and reporting.
- Annual merchandise plans and inventory planning require enhanced documentation.
- Integrating online sales into DAX will reduce exposure to error.
- Management should address other internal control issues found including point-of-sale transactions and segregation of duties.
What Office of Inspector General Recommends
We made 22 recommendations related to improving gift shop operations in the area of financial management and accounting.
