Booz-Allen found that the Library’s staff, management structure, and resources are in danger of being overwhelmed by this growth. The three missions can be used to characterize the potential scope of activity and the customers the Library might serve: (1) Congress; (2) Congress and the nation; and (3) Congress, the nation, and the world community of libraries, publishers, and scholars. Booz-Allen concluded that the Library would require significantly fewer staff and financial resources to carry out this mission. Booz-Allen concluded that this expanded mission would require increased staff and financial resources. Booz-Allen identified two role options: (1) independent archive/knowledge developer and (2) information/knowledge broker. On the basis of these discussions as well as its other findings from the overall management review of the Library, Booz-Allen recommended that the Library’s mission be focused within the Congress/nation alternative, and planning should begin toward a future mission of serving Congress and performing the role of a national information/knowledge broker. Library’s Management and Operational Processes Need Improving

Booz-Allen reported that the Library’s management processes could be more effective. Financial Statements

Price Waterhouse found that the Library had mixed results in implementing GAO’s recommendations made in its 1991 report. . . except for the effects of such adjustments, if any, as might have been determined to be necessary had (Price Waterhouse) been able to examine evidence regarding property and equipment balances, the Consolidated Statement of Financial Position presents fairly, in all material respects, the Library’s financial position as of September 30, 1995, in conformity with the basis of accounting described in Note 1 to the Consolidated Statement of Financial Position.”

			Internal Financial and Compliance Controls

Price Waterhouse concluded that the Library’s financial internal controls in place as of September 30, 1995, were not effective in safeguarding assets from material loss and in ensuring that there were no material misstatements in the Consolidated Statement of Financial Position.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed two independent management and financial reviews of the Library of Congress.

What GAO Found

GAO noted that: (1) the management review found that the Library's mission needed to be reassessed because its enormous growth threatens to overwhelm its staff, structure, and resources; (2) alternative missions include service to Congress exclusively, Congress and the nation, or Congress, the nation, and the world community; (3) the first two mission options would require fewer staff and resources, but the third mission would require staff and funding increases; (4) after determining its mission, the Library's service role options include being an independent archive-knowledge developer or an information-knowledge broker; (5) the review recommended that the Library focus on the Congress-nation mission alternative and become a national information-knowledge broker; (6) the review also recommended that the Library improve its human and financial resources management and operational processes; (7) the financial review found that the Library had mixed results in implementing previous GAO recommendations and certain financial management weaknesses remain; (8) except for property and equipment accounts, the Library's financial statements presented fairly, in all material respects, its financial position as of September 30, 1995; (9) the Library's internal controls were not effective in safeguarding assets, ensuring that material misstatements did not occur, and ensuring that gifts complied with applicable laws and regulations; and (10) the review made several recommendations for safeguarding assets and improving accounting processes.