Financial Management: Opportunities Exist to for Smithsonian Enterprises to Improve Its Retail Cash Management Operations

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Date Issued

Monday, September 29, 2025

Submitting OIG

Smithsonian Institution OIG

Agencies Reviewed/Investigated

Smithsonian Institution

Components

Smithsonian Enterprises

Report Number

OIG-A-25-08

Report Description

Smithsonian Enterprises (SE) oversees the majority of the revenue-generating operations of the Smithsonian Institution
(Smithsonian). It is an essential source of unrestricted funds— monies without donor-imposed or legal restrictions on their use. SE provides unrestricted funds to the Smithsonian through the operation of revenue-generating activities.
In SE's fiscal year (FY) 2023, SE generated $150.8 million in net revenue, including more than $63 million from 32 retail stores, approximately $10.7 million of which were cash transactions.

OIG made four recommendations for Smithsonian Enterprises management to improve compliance with policies and procedures related to document retention, audits over cash management, system access for separated employees, and discounts. Management concurred with all four recommendations.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
OIG-A-25-08-01	Yes	$0	$0
Revise and implement SE's Document Retention Policies for Smithsonian Enterprise stores to: a) require retail directors to periodically communicate the contents of this document to store management, and b) require retail directors to perform periodic checks and document their review to ensure that financial document retention complies with SE policy.
OIG-A-25-08-02	Yes	$0	$0
Revise and implement the Retail Green Bag Audit, Store Register Audit, and Retail Safe Fund procedures to: a) assign specific positions with the responsibility to conduct audits and daily safe counts, b) require retail directors and group managers to document their review of monthly audits, and c) require retail directors to document their quarterly review of daily safe count sheets.
OIG-A-25-08-03	Yes	$0	$0
Update and implement SE's Separation/Termination Checklist to include a step to block separated employees’ POS system access on their last day of employment.
OIG-A-25-08-04	Yes	$0	$0
Revise and implement the Discounts procedure to: a) reflect only valid discounts, b) require that the procedure be reviewed and updated periodically, and c) require that the discount codes programmed in the POS system be reviewed and updated periodically so only authorized and valid discount codes are applied to transactions.