Summary: In response to a congressional request, GAO investigated allegations that: (1) the National Archives and Records Administration (NARA) and National Archives Trust Fund Board improperly commingled appropriated funds and unrestricted Trust Fund money; (2) NARA violated federal procurement and personnel regulations; and (3) because Trust Fund personnel did not hold civil service appointments, they were not eligible to compete for remaining positions if a reduction-in-force occurred.
GAO found that: (1) NARA recorded its reproduction fees deposited into the Trust Fund in separate accounts; (2) NARA did not improperly expend the funds, because the fees were available for any appropriate Trust Fund expenditure; (3) the Trust Fund was not required to follow the Federal Acquisition Regulation when purchasing goods and services; and (4) because NARA personnel appointments were consistent with the law and regulations, all employees would compete equally for remaining positions in the event of reductions-in-force. GAO also found that: (1) the Trust Fund could not ensure that it complied with the legislative requirement that its profits not exceed the 10-percent profit margin allowed for its publications; (2) Trust Fund financial operations lacked written policies, procedures, and documentation for its accounting practices; (3) NARA and Trust Fund annual reports did not provide a Statement of Changes in Financial Position; and (4) the financial statements did not fully disclose unusual transactions and were unaudited, resulting in inaccurate and unreliable financial information for presentation to Congress.
