Summary: GAO reviewed the Library of Congress' use of its gift authority to establish revolving funds.
The Library has used its gift authority to establish at least 24 revolving funds, none of which has been specifically authorized by Congress. These revolving funds were not properly accounted for by the Library, nor were the activities financed by the funds fully disclosed to Congress. In establishing the funds, Library officials relied on the Library's authority to accept and use gifts as the donor intended. Together these funds generate approximately $3.7 million annually in receipts from various activities. Among other things, the activities include among other things, a photoduplication service, a recording laboratory, and various publications. The Library's disclosure of these activities in the Federal Budget Appendix is inadequate, and its accounting, budgeting, and reporting of them do not meet prescribed procedures. These factors serve to limit congressional knowledge of the Library's revolving funds.
