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SMITHSONIAN INSTITUTION
Office of the Inspector General
Audit Inventory
Fiscal Year 2008
Table of Contents
Section Title Page
Introduction 1
Estimated Staff Days Available for New Audits in Fiscal Year 2008 2
Fiscal Year 2007 Audits Carried Forward to Fiscal Year 2008 3
Non-Discretionary Audit Work for Fiscal Year 2008 4
Other New Audit Starts Planned for Fiscal Year 2008 5
Fiscal Year 2008 Audit Proposals in Detail 7
Potential Future Audits 17
Introduction
This Fiscal Year 2008 Audit Inventory communicates the Smithsonian Office of the Inspector
General's audit priorities to the Smithsonian Institution, the Congress, and other interested parties.
Our office promotes effective governance by providing the Board of Regents, Congress,
Smithsonian management and the public independent and objective evaluations of the programs
and operations of the Institution. To this end, we continue to focus our audit efforts on the
following high-risk areas and thereby advance the Institution's performance goals of Enhanced
Management Excellence and Financial Strength:
· Modernization of financial management and accounting operations
· Budget performance and integration
· Management of capital assets
· Modernization and security of the IT infrastructure
· Profitability of revenue operations and collection of revenues
· Contract administration
· Security and care of the national collections
· Safety and environmental management
· Human resource management
The list of audits that follows reflects our current workload and estimated resources in FY 2008.
Two sets of projects are non-discretionary: First, as the Contracting Officer's Technical
Representative on the Institution's annual financial statement audits, we oversee these audits and
issue our own assessment of key issues. This role is especially important given new audit
requirements and the increased scrutiny of nonprofit financial management. Second, under the
Federal Information Security Management Act, we must conduct or oversee a series of evaluations
that address information technology (IT) security. This function is also critical, as all aspects of the
Institution's programs and operations rely on secure IT systems.
Because we identified more audits than we have resources to perform, the plan includes both a list
of audits we hope to initiate in FY 2008 as well as a list of potential future audits. We believe every
audit in this inventory would yield significant benefits to the Institution. Yet we recognize that
issues of more immediate concern may arise, and we want to be able to address them as well. Our
goal is to be more nimble while recognizing that we have limited resources. Thus, rather than a
firm schedule, this inventory outlines the larger projects we believe to be critical, with the
understanding that if new matters merit review by OIG audit staff, we will adjust our priorities
accordingly.
This document first explains staff resources available to perform our planned audits. We then
present two tables listing audits carried forward from FY 2007 and proposed new audit starts and
audit-related work for FY 2008. These tables also explain each audit's objectives. Following those
tables is a detailed description of each audit listed in the new audit starts table. Finally, we have
included a table listing potential future audits.
1
Estimated Staff Days Available
for New Audits in FY 2008
Estimated
Description Staff Days
Total FY 2008 staff days* 1,890
FY 2007 audits carried over ( 375)
Available days for new starts in FY 2008* 1,515
* While we currently have 11 positions assigned to the audit
division, available staff days were calculated based on an FTE
level of 9 audit staff. This number recognizes three positions
that are currently unfilled, management and administrative
time for the Assistant Inspector General for Audits, and lost
productivity caused by the future move of the office from
Arlington, VA back to Washington D.C.
2
FY 2007 Audits Carried Forward to FY 2008
We have considerable carryover from the current year, as follows:
Estimated
FY 2008
OIG
Title Objectives Staff Days
Oversight of Contractors Assess (1) whether SBV has adequate procedures for 75
at SBV ensuring the accuracy of revenues and expenses reported by
contractors; (2) SBV's practices for collecting and recording
proceeds from contractors; and (3) whether SBV is
adequately overseeing contractors to ensure compliance
with key contract terms.
Oversight of the FY 2007 Oversee the evaluation of the effectiveness of the 75
Federal Information Institution's information security policies, procedures, and
Security Management Act practices, which will assess whether (1) system accreditation
Evaluation and certification practices are adequate; (2) intrusion
detection software is being used throughout the Institution
to detect suspicious activity; (3) system scans are regularly
performed to identify vulnerabilities; (4) disaster recovery
plans for major systems have been developed and tested; and
(5) staff have received the required security awareness
training. We also will oversee the completion of the security
audit of an Institution system that supports the FY 2007
FISMA evaluation.
Oversight of the FY 2007 Oversee the external financial statement audits, including 75
Financial Statement reviewing audit documentation, evaluating key judgments,
Audits and monitoring progress to express concurrence with the
external auditors' reports and conclusions about the
Smithsonian's financial statements.
Workers' Compensation Evaluate the overall management of the Institution's 150
Claims workers' compensation program. Assess whether adequate
controls are in place to comply with the Federal Employees'
Compensation Act (FECA) requirements for (1) reviewing
and submitting claims; (2) monitoring charge-back costs;
(3) bringing claimants back to work as soon as possible; and
(4) recovering overpayments promptly.
3
Non-Discretionary Audit Work for FY 2008
We will oversee the following two sets of mandatory audits and reviews in FY 2008.
Estimated
OIG
Title Objectives Staff Days
Oversight of the FY 2008 Oversee the external financial statement audits by reviewing 100
Financial Statement audit documentation, evaluating key judgments, and
Audits monitoring progress to express concurrence with the
external auditors' reports and conclusions about the
Smithsonian's financial statements.
Oversight of the FY 2008 Oversee the evaluation of the effectiveness of the 35
Federal Information Institution's information security policies, procedures, and
Security Management Act practices, which will assess whether (1) system accreditation
Evaluation and certification practices are adequate; (2) intrusion
detection software is being used throughout the Institution
to detect suspicious activity; (3) system scans are regularly
performed to identify vulnerabilities; (4) disaster recovery
plans for major systems have been developed and tested; and
(5) staff have received the required security awareness
training.
Oversight of the FY 2008 Oversee the evaluation of the security of a subset of 40
Federal Information Institution systems, including limited testing of controls.
Security Management Act
Subset Audits
4
Other New Audit Starts Planned for FY 2008
We plan to initiate seven new discretionary audits or reviews in FY 2008, in the following order of
priority:
Estimated
OIG
Title Objectives Staff Days
Facility Safety Issues Assess (1) whether the Institution is making adequate 350
progress in correcting the most severe and high-risk safety
issues caused by the disrepair and obsolescence of its major
facilities, and (2) whether adequate precautions are being
taken to mitigate hazardous conditions until repairs can be
made.
Review of the Former Oversee the independent accountant's agreed-upon 75
Secretary's FYs 2006-2007 procedures review of the former Secretary's expenses and
Expenses and compensation for fiscal years 2006-2007. The Office of the
Compensation Inspector General will determine the scope, transactions,
and criteria for the review. We will review documentation,
evaluate key judgments to express concurrence with the
independent accountant's report, and offer our own
assessment of the reasonableness of the expenses.
Review of the Former Oversee the independent accountant's agreed-upon 75
Smithsonian Business procedures review of the former Smithsonian Business
Ventures Chief Executive Ventures Chief Executive Officer's expenses and
Officer's FYs 2006-2007 compensation for fiscal years 2006-2007. The Office of the
Expenses and Inspector General will determine the scope, transactions,
Compensation and criteria for the review. We will review documentation
and evaluate key judgments to express concurrence with the
independent accountant's report, and offer our own
assessment of the reasonableness of the expenses.
Capital Project Oversight Follow up on prior recommendations to determine whether 400
the Institution is effectively managing key risks for selected
major projects that represent a significant investment for the
Institution, e.g. renovations at the National Museum of
Natural History; construction of Asia Trail 2 and the
upgrading of the critical infrastructure at the National
Zoological Park; and Anti-Terrorism Protection. Assess
(1) the financial reporting capabilities available for
controlling project costs; (2) whether project schedule and
tracking systems are in place to facilitate the detection of
emerging problems that could delay the projects; and
(3) whether contingency funds are sufficient to cover
unanticipated problems and whether these funds are being
properly monitored.
5
Other New Audit Starts Planned for FY 2008, continued
OIG
Title Objectives Staff Days
Travel Card Oversight Assess whether (1) policies and procedures related to the 200
travel card program are adequate and in compliance with
applicable laws and regulations; (2) key controls for the
program are operating properly in the units;
(3) cardholders, particularly Smithsonian executives, are
using travel cards for authorized purposes and for
reasonable amounts; and (4) cardholders are paying their
travel card obligations in a timely manner.
Purchase Card Oversight Assess whether (1) policies and procedures related to the 200
purchase card program are adequate and in compliance with
applicable laws and regulations; (2) key controls for the
program are operating properly in the units; and (3)
cardholders are using purchase cards for authorized
purposes.
Business Expenses of This audit will examine the non-travel business expenses of 250
Smithsonian Executives, a judgmentally selected sample of Smithsonian executives
Unit Directors, Regents, and unit directors as well as travel and other business
and Advisory Board expenses of Regents and Advisory Board members to ensure
Members their compliance with Smithsonian policies and with best
practices in the nonprofit sector.
6
Planned FY 2008 Audits in Detail
7
Oversight of the FY 2008 Financial Statement Audits
Objectives
For these non-discretionary audits, we will oversee the external financial statement audits and
review audit documentation, evaluate key judgments, and monitor progress to express concurrence
with the external auditors' reports. We will offer observations on the audit process and suggest
improvements as needed.
Significance
The Institution's financial statements are currently audited by KPMG. The Financial Audit
Manager in the Office of the Inspector General serves as the Contracting Officer's Technical
Representative with oversight responsibilities for the annual audits. We will use GAO's Financial
Audit Manual and the audit programs developed by the Federal Audit Executive Council as guides
for monitoring KPMG's work.
Potential Impact or Monetary Savings
This oversight will provide assurances that KPMG's reports, conclusions, and findings are
reasonable and that its audits were conducted in accordance with relevant auditing and accounting
standards.
Staffing Requirement
100 staff days
8
Oversight of the FY 2008 Federal Information
Security Management Act Evaluation and Subset Audits
Objectives
For this non-discretionary engagement, we will oversee the contractor's evaluation of the
effectiveness of the Institution's information security policies, procedures, and practices, which will
assess whether (1) system accreditation and certification practices are adequate; (2) intrusion
detection software is being used throughout the Institution to detect suspicious activity; (3) system
scans are regularly performed to identify vulnerabilities; (4) disaster recovery plans for major
systems have been developed and tested; and (5) staff have received the required security awareness
training. A separate evaluation also will be conducted on the security of a subset of Institution
systems, including limited testing of controls.
Significance
The Smithsonian relies extensively on computerized information systems and electronic data to
carry out its programs and activities. The security of these systems is essential to prevent data
tampering, disruptions in critical operations, fraud, and inappropriate disclosure of sensitive
information. The Federal Information Security Management Act of 2002 requires the testing and
evaluation of federal systems. Although the Smithsonian is not obligated by law to comply with the
Act, it has implemented the Act's requirements to ensure it has an effective Information
Technology (IT) security program.
The Act also requires that the OIG perform an independent annual evaluation of the Institution's
information security program and practices in compliance with the Act. IT security audits
conducted by the OIG since the Act was passed have identified significant weaknesses in major
Smithsonian systems and highlighted the need for improvements in network access controls, IT
training, disaster recovery plans, system documentation, updated server patches, and security
configurations.
Potential Impact or Monetary Savings
The overall evaluation as well as the assessments of a subset of IT systems will identify
improvements needed in the Institution's IT security program to ensure the early detection of and
response to suspicious activity, the protection of systems and applications from unauthorized
access, the continuity of operations should disruptions occur, and staff awareness of required IT
security practices.
Staffing Requirement
75 staff days
9
Facility Safety Issues
Objectives
The audit will assess (1) whether the Institution is making adequate progress in correcting the most
severe and high-risk safety issues caused by the disrepair and obsolescence of its major facilities,
and (2) whether the Institution is taking adequate precautions to mitigate hazardous conditions
until repairs can be made. We will review prior reports on the state of the Institution's facilities,
including those issued by the National Academy of Public Administration, the Government
Accountability Office, and the Institution's Office of Facilities Engineering and Operations
(OFEO).
Significance
Many of the structural, mechanical, and electrical systems in the Institution's major facilities are
failing because of age, heavy and varied uses, and the lack of resources to perform all needed repairs
and replacements. This deterioration has resulted in significant deficiencies in fire and life safety
systems that have not been updated to meet current life safety code requirements and accessibility
standards. OFEO's Annual Management Evaluation and Technical Reviews of facilities have
identified a growing number of hazardous conditions that must be abated to prevent severe
personal injury, occupational illnesses, and property losses. These conditions include the lack of
fans for emergency exits to remove smoke from stairwells, failed fire detection/suppression systems,
and the lack of effective code-required maintenance programs for fire dampers, fire doors, and
alarm systems, among other problems. Although the Institution is making progress in addressing
these issues, many of them have been longstanding because, according to OFEO, about 64 percent
of its in-house resources for maintenance are spent on emergencies and unplanned repairs.
This audit will determine whether the Institution is addressing critical safety issues such as code-
compliant occupational safety, environmental management, and fire protection. As part of the
audit, we will follow up on actions taken by OFEO to address recommendations made in the Office
of Management and Budget's Program Assessment Rating Tool evaluation of the Institution's
facilities maintenance program.
Potential Impact or Monetary Savings
The audit will evaluate actions to improve internal controls over safety of the staff, volunteers,
visitors, collections, and property and make recommendations for strengthening management of
facility safety issues.
Staffing Requirement
350 staff days
10
Review of the Former Secretary's FYs 2006 and 2007
Expenses and Compensation
Objectives
We will oversee the independent accountant's agreed-upon procedures review of the former
Secretary's expenses and compensation for fiscal years 2006-2007. The Office of the Inspector
General will determine the scope, transactions, and criteria for the review. We will review
documentation and evaluate key judgments to express concurrence with the independent
accountant's report and offer our own assessment of the reasonableness of the expenses.
Significance
As a trust instrumentality of the United States and as a charitable organization under the Internal
Revenue Code, the Smithsonian must ensure that expenses incurred by individuals in carrying out
its mission are reasonable. The Smithsonian must also ensure that such expenses are properly
documented; that they are for a Smithsonian purpose and not for personal benefit; and that they
are not lavish or extravagant.
In 2007, the OIG committed itself to annual reviews of the Secretary's expenses to increase
transparency and accountability. An independent accountant will perform the review of the former
Secretary's expenses. An independent accountant recently performed an agreed-upon procedures
review of the former Secretary's expenses, compensation, and donations for fiscal years 2000
through 2005. The review found that many transactions were not properly documented or were
not in accordance with Smithsonian policies. Additionally, we determined that some transactions
might be considered lavish or extravagant.
In March 2007, Secretary Small resigned amid public criticism of his expenses and compensation,
and of overall governance at the Smithsonian. In June 2007, the Board of Regents' Governance
Committee recommended that the Audit and Review Committee report to the Board at least
annually on a review of the Secretary's expenses. Also, in June 2007, an Independent Review
Committee reported that while the Smithsonian had detailed guidelines and policies for business
expenses, the former Secretary exempted himself from these policies.
Potential Impact or Monetary Savings
We will provide oversight of the independent accountant and offer our own assessment of the
reasonableness of the expenses. Potential monetary savings could result if unauthorized expenses
are found.
Staffing Requirement
75 staff days
11
Review of the Former Smithsonian Business Ventures Chief Executive
Officer's FYs 2006-2007 Expenses and Compensation
Objectives
We will oversee the independent accountant's agreed-upon procedures review of the former Chief
Executive Officer (CEO) of Smithsonian Business Venture's (SBV) expenses and compensation for
fiscal years 2006-2007. The Office of the Inspector General will determine the scope, transactions,
and criteria for the review. We will review documentation and evaluate key judgments to express
concurrence with the independent accountant's report and offer our own assessment of the
reasonableness of the expenses.
Significance
As a trust instrumentality of the United States and as a charitable organization under the Internal
Revenue Code, the Smithsonian must ensure that expenses incurred by individuals in carrying out
its mission are reasonable. The Smithsonian must also ensure that such expenses are properly
documented; that they are for a Smithsonian purpose and not for personal benefit; and that they
are not lavish or extravagant.
An independent accountant will perform the review of the former CEO's expenses and
compensation. An independent accountant recently performed an agreed-upon procedures review
of the former CEO's compensation for fiscal years 2000 through 2005 and expenses for 2001
through 2005. Based upon our review of the independent accountant's work, we recommended,
among other items, that the CEO reimburse the Institution for $29,698 in unsupported or
unauthorized business expenses and file amended tax forms for an additional $65,234 in
inadequately supported expenses.
Potential Impact or Monetary Savings
We will provide oversight of the independent accountant and offer our own assessment of the
reasonableness of the expenses. Potential monetary savings could result if unauthorized expenses
are found.
Staffing Requirement
75 staff days
12
Capital Project Oversight
Objectives
The audit will follow up on prior recommendations to determine whether the Institution is
effectively managing key risks for selected major projects that represent a significant investment for
the Institution, e.g. renovations at the National Museum of Natural History; construction of Asia
Trail 2 and the upgrading of the critical infrastructure at the National Zoological Park; and Anti-
Terrorism Protection. We will assess (1) the financial reporting capabilities available for
controlling project costs; (2) whether project schedule and tracking systems are in place to facilitate
the detection of emerging problems that could delay the projects; and (3) whether contingency
funds are sufficient to cover unanticipated problems and whether these funds are being properly
monitored.
Significance
Capital project expenditures, after salaries and other related expenses, are the largest expenditure
items in the Institution's budget. An estimated $778 million will be spent on facilities projects over
the next five years. The largest expenditures are planned for the National Museum of Natural
History ($146 million), the National Zoological Park ($108 million); and for anti-terrorism
protection ($71 million). In addition, the National Museum of American History will undergo
extensive renovations.
Prior OIG audits on the oversight of construction projects for the Steven F. Udvar-Hazy Center, the
National Museum of the American Indian, and the Patent Office Building renovation noted
weaknesses in the Institution's oversight process. For example, we found (1) management lacked
financial reports necessary to gauge the health of the projects, performance metrics, planned versus
actual costs, and schedule updates; (2) competing clients (such as OFEO and Museum project
managers) were directing the contractors, often in opposing directions; and (3) contingency funds
were not effectively monitored. Given the austere budget outlook, the Institution must ensure that
its capital projects are delivered on time and within budget.
As part of the audit, we will incorporate a review of the improvement plan that OFEO developed to
address the Office of Management and Budget's 2005 Program Assessment Rating Tool evaluation.
That evaluation recommended that OFEO improve cost estimates for facility projects by
systematically documenting their requirements, scope of work, and desired schedule.
Potential Impact or Monetary Savings
The audit will make recommendations to strengthen oversight of major capital projects to help
ensure they are delivered within approved budgets and schedules.
Staffing Requirement
400 staff days
13
Travel Card Oversight
Objectives
The audit will determine whether (1) policies and procedures related to the travel card program are
adequate and comply with applicable laws and regulations; (2) key controls for the program are
operating properly in the units; (3) cardholders, particularly Smithsonian executives, are using
travel cards for authorized purposes and for reasonable amounts; and (4) Smithsonian employees
are paying their travel card balances in a timely manner. We plan to cover selected transactions
from fiscal years 2005 through 2007.
Significance
During FY 2006, there were 35,156 travel card transactions for individually-billed travel cards,
totaling $6,376,573. In addition, the Institution uses centrally-billed travel cards to pay for airline
and train tickets. The Smithsonian participates in the Government Travel Card Program and uses
Citibank as its merchant bank. Unlike the Smithsonian's purchase card program, monthly travel
card bills are sent directly to individual cardholders. Supervisors are responsible for approving
travel, cardholders are responsible for timely payment to Citibank, and the Institution is
responsible for reimbursing travelers.
A June 2002 OIG audit found delinquent travel card payments and unauthorized travel card usage.
The audit found that management failed to monitor cards adequately for delinquency and
appropriate usage and failed to implement disciplinary actions and proper training. Our July 2007
review of the Smithsonian Business Venture's CEO's expenses also revealed lax management
oversight and card misuse. Finally, the Board of Regents' Governance Committee requested that
we perform regular audits of travel card use.
To prevent fraudulent, improper and abusive travel card activity, we will determine if management
provides effective program oversight, especially since much of the oversight is decentralized.
Potential Impact or Monetary Savings
The audit will make recommendations to strengthen oversight of the travel card program to help
ensure that purchases are made in compliance with laws, policies, and procedures. Potential
savings could result if we identify improper purchases and the Institution subsequently obtains
reimbursement.
Staffing Requirement
200 staff days
14
Purchase Card Oversight
Objectives
The audit will determine whether (1) policies and procedures related to the purchase card program
are adequate and comply with applicable laws and regulations; (2) key controls for the program are
operating properly in the units; and (3) cardholders are using purchase cards for authorized
purposes. We plan to cover selected transactions from fiscal years 2005 through 2007.
Significance
During FY 2006, the Smithsonian had 105,214 purchase card transactions, totaling $24,216,688.
The Smithsonian participates in the U.S. General Services Administration's SmartPay program and
uses Citibank as the merchant bank. The Smithsonian downloads Citibank files on a regular basis
and posts them to its enterprise resource planning (ERP) system. Smithsonian uses this system to
monitor purchases made using the purchase card, reconcile account information, and request
reports. The Citibank Visa card allows cardholders to buy goods and services under an established
delegation of authority and is the primary method by which the Institution's employees make open
market purchases of $2,500 or less (micro-purchases). The Smithsonian's Office of Contracting
administers the purchase card program, while unit level approving officials are responsible for
oversight of individual cardholders.
We will follow up on our previous audit work in this area. April 2003 and December 2003 OIG
audits recommended that the Smithsonian improve certain aspects of its purchase card program.
In particular, we recommended that purchase card transactions be processed promptly in the ERP
system, that the Office of Contracting revise the training manual and directives regarding purchase
approvals and documentation of sensitive items, and that the Office of the Comptroller remove
unnecessary organizational checking accounts to encourage the use of purchase cards. The Board
of Regents' Governance Committee also requested that we conduct regular audits of purchase card
use.
To prevent fraudulent, improper and abusive purchase card activity, we will determine if
management provides effective program oversight, especially since much of the oversight is
decentralized.
Potential Impact or Monetary Savings
The audit will make recommendations to strengthen oversight of the purchase card program to
help ensure that purchases are made in compliance with laws, policies, and procedures. We will
also determine if additional cost savings are possible through increased use of purchase cards
instead of purchase orders.
Staffing Requirement
200 staff days
15
Business Expenses of Smithsonian Executives,
Unit Directors, Regents, and Advisory Board Members
Objectives
This audit will examine the non-travel business expenses of a judgmentally selected sample of
Smithsonian executives and unit directors as well as the travel and business expenses of Regents and
Advisory Board members for fiscal years 2005 through 2007 to ensure their compliance with
Smithsonian policies and with best practices in the nonprofit sector.
Significance
In light of the controversies surrounding the business expenses of the former Smithsonian Secretary
and the former Chief Executive Officer of Smithsonian Business Ventures, the Smithsonian Board
of Regents' Governance Committee requested that our office provide assurances that the expenses
incurred by all high-level officials, Regents, and Advisory Board members on behalf of the
Smithsonian are reasonable. We will be covering travel expenses of Smithsonian officials through
our travel card audit. Accordingly, we will focus in these audits on non-travel related expenses of
Smithsonian officials, and on the travel and business expenses of Smithsonian Regents and
Advisory Board members. We will be conducting this type of review annually picking a different
judgmental sample of individuals each year -- to help ensure compliance at all levels with
Institution policies and procedures; to ensure careful and frugal stewardship of Institution
resources; to ensure that these expenses are reasonable and in furtherance of the Institution's
mission; and to keep the Board of Regents and the Congress fully informed about the spending
practices of officials and advisors of the Institution.
Potential Impact or Monetary Savings
These annual audits will help assure Congress, donors, other stakeholders and the public that the
Institution's limited resources are being spent prudently. To the extent that we identify any
unauthorized or otherwise inappropriate expenditures, our work could result in reimbursement to
the Institution of such funds. These audits could also result in the Institution having to amend its
tax filings and the tax filings it submits on behalf of employees.
Staffing Requirement
250 staff days
16
Potential Future Audits
17
Potential Future Audits
Estimated
OIG
Title Objectives Staff Days
Management of National The audit will determine for the National Museum of 350
Collections Storage Needs Natural History and National Air and Space Museum
whether (1) efficient use is being made of existing storage
space; (2) collecting units have rigorous processes for
making decisions regarding acquisitions and disposals so
that the space requirements of collections grow at a
manageable rate; and (3) units are effectively managing
collections processing backlogs.
Modernization of the IT Assess the Institution's IT investment strategies and 300
Infrastructure and the determine whether (1) the Chief Information Officer has
Development of implemented sound strategies and practices for managing IT
Investment Strategies resources and meeting program area information needs, and
(2) the IT infrastructure is being sufficiently modernized to
support the activities of the Institution.
Effectiveness of the Evaluate the metrics process for measuring and tracking 250
Institution's Process for risk. Review management's effectiveness in (1) identifying
Identifying, Measuring, and measuring risks and vulnerabilities; (2) evaluating and
and Managing Risk monitoring corrective action plans; and (3) providing
alternatives and resources to eliminate the vulnerabilities
and minimize the risks.
Management of Examine a sample of the costliest exhibits to determine if 200
Exhibition Projects museum management adequately tracks exhibition-related
expenses and financing, reasonably estimates the life-cycle
costs of exhibitions, and identifies risks and sources of
contingent funds when budgets are not met.
Collections Information Determine whether opportunities exist to increase public 250
Systems access to information and enhance the state of collections
information management, while at the same time reducing
infrastructure and maintenance costs.
Accountability and Assess the effectiveness of SI fleet management, including 250
Maintenance of the (1) provisions for authorizing and controlling all vehicle
Institution's Fleet maintenance and repair services; (2) provisions for
authorizing and monitoring all vehicle use and activity; and
(3) vehicle purchase and disposal.
18
Potential Future Audits, continued
OIG
Title Objectives Staff Days
Status of Human Capital Examine the Institution's progress in implementing human 125
and Workforce capital initiatives targeted for FYs 2005 and 2006 that were
Restructuring recommended by the Human Resources Research
Organization, including (1) improving the timeliness of
routine human resource processes; (2) conducting initial
training needs assessments; (3) performing a workforce
analysis of the financial management function; and
(4) developing initial metrics.
Adequacy of Controls Examine whether the Institution is providing adequate 250
Over Collection Items oversight of loaned collections to ensure (1) items are not
Loaned to Other loaned to organizations that are unable to care for the
Organizations objects; (2) organizations are abiding by the terms and
conditions of the loan agreements; (3) loaned items are
adequately insured; and (4) the Institution is promptly
following up on expired loans.
Human Resource Identify opportunities for reducing overtime costs and 250
Management and competitively outsourcing functions to achieve cost savings
Competitive Sourcing and improve mission effectiveness.
Design Errors and Determine if the Institution is monitoring the construction 200
Omissions in Capital costs associated with design errors and omissions on capital
Projects projects and recovering these costs from its design
consultants. Identify barriers to effective cost recovery and
industry best practices that could be implemented to
improve the tracking and recovery of these costs.
19