The Kennedy Center receives federal funding annually for capital  improvement projects based on its Building Plan. Kennedy Center Has Received Over $150 Million for Capital Projects

The Kennedy Center has received approximately $152 million in federal  appropriations for capital projects since it took responsibility for these  projects in fiscal year 1995. The Kennedy Center has the flexibility to change the  projects or sequence of projects it plans to fund on the basis of such factors  as the need to minimize disruptions to the operations of the Center and  budget constraints. Seventeen  projects are planned for fiscal years 2005 through 2008 and include several  large projects with life safety components, such as the installation of  sprinklers. Finally, we believe the funding anticipated in the Building Plan may not be  sufficient to complete all of the planned projects. The Comprehensive Building Plan Is of Limited Use in Understanding the Status of the Kennedy Center’s Renovations

The Building Plan is of limited use in understanding the Kennedy Center’s  progress in implementing its plan to renovate the Center because it does  not include the status of projects identified in prior plans or provide budget  information for individual projects. For example, the Kennedy Center combined  several life safety projects identified in the Building Plan into one project  that is currently under way and the Center expects to be completed in fiscal  year 2006. Kennedy Center Will Likely Request Additional Operations and Maintenance Funding for Its New Plaza Project

In fiscal year 2004, the Kennedy Center received about $16 million for  operations and maintenance costs for the existing Center and will likely  need additional federal appropriations for O&M expenses when the new  plaza project is complete. O&M Costs for the Proposed Plaza Project Could Range from $6 Million to $11 Million

On the basis of data from a survey of museum facility management  practices and Kennedy Center data, we calculate that the potential O&M  costs for the proposed plaza project could range from $6 million to $11  million, in current dollars. This is  due, in part, to changes in the sequence of its planned projects. In addition, the letter did not agree with how we counted the projects  identified in the Comprehensive Building Plan. Scope and Methodology

To determine the amount of federal appropriations the John F. Kennedy  Center for the Performing Arts (Center) requested and received for capital  projects for fiscal years 1995 to 2004, we reviewed the Kennedy Center’s  annual budget justification to Congress and Comprehensive Building Plan  and its updates; federal authorization and appropriation laws; and the  Kennedy Center’s audited financial statements. Finally, we relied on the Kennedy  Center’s 2002 Comprehensive Building Plan to determine the amount of  federal appropriations the Center expects to request through fiscal year  2008. Finally, we compared the information the Kennedy Center provided  on the status of the capital projects in the Building Plan and its updates and  capital appropriations received since fiscal year 1995 to evaluate the  likelihood that the plan would be fully implemented as planned by the end  of fiscal year 2008.
Why GAO Did This Study

Since fiscal year 1995, the John F. Kennedy Center for the Performing Arts (Center) has been responsible and received federal funding for implementing capital improvement projects and operations and maintenance activities. The Kennedy Center's Comprehensive Building Plan identifies capital projects needed to renovate the Center and bring it into compliance with current life safety and accessibility codes. The Kennedy Center currently is planning to construct, with private funds, two new buildings to open in 2013 on a new plaza to be built adjacent to the existing facility. The Kennedy Center expects federal funding to operate and maintain these buildings. GAO was asked to examine (1) how much the Center has received in federal appropriations for capital projects, (2) the status of the Comprehensive Building Plan and updates, and (3) the potential impact of the Center's plaza project on the need for future operations and maintenance funding.

What GAO Found

For fiscal years 1995 through 2004, the Kennedy Center received approximately $152 million in federal appropriations for capital projects identified in its Comprehensive Building Plan. According to its fiscal year 2002 Comprehensive Building Plan, the Kennedy Center will need an additional $57 million in federal appropriations from fiscal year 2005 through fiscal year 2008 to complete its planned capital projects. The Kennedy Center has completed many of the capital projects identified in the Comprehensive Building Plan and has many more ongoing. However, we do not expect the Center to be able to complete all of the capital projects identified in the plan by fiscal year 2008. This is in part because the Kennedy Center reprioritized the sequence of its planned projects to minimize disruptions to its patrons. Several of the projects that will likely not be completed include components, such as the installation of sprinklers, that are important in meeting the Kennedy Center's goal of bringing the facility into compliance with current life safety codes. However, the Comprehensive Building Plan does not discuss changes to its prioritization of projects or the impact of those changes on completing its planned renovations. In addition, the updates to the plan do not include information on the status of projects identified in earlier plans or provide budget information for individual projects. As a result, the Comprehensive Building Plan is of limited use for understanding the Kennedy Center's progress in completing its planned renovations. Operations and maintenance costs for the plaza project, including two new buildings, could range from $6 million to $11 million annually, in current dollars, based on data from a survey of museum facility management practices and Kennedy Center data. The Kennedy Center expects to request additional annual federal appropriations for these costs. However, because the project is currently in the early planning phase, the operations and maintenance estimate could change as designs are finalized. In fiscal year 2004, the Center received about $16 million for the operations and maintenance costs of the existing facility.