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GAO-02-554R 1 (2002-04-29)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548


         April 29, 2002


         The Honorable Richard J. Durbin
         Chairman
         The Honorable Robert F. Bennett
         Ranking Minority Member
         Subcommittee on the Legislative Branch
         Committee on Appropriations
         United States Senate

         The Honorable Vernon J. Ehlers
         Chairman
         The Honorable Christopher J. Dodd
         Vice Chairman
         Joint Committee on the
         Library of Congress

         Subject: Library of Congress: Status of Retail Activities

         The Senate Committee on Appropriations directed us to evaluate the viability of using
         profits from the Library of Congress' retail activities to support other Library
         activities.' Specifically, we were asked to evaluate the (1) potential for generating
         profits from Library retail activities and (2) policies and procedures for the control of
         products, licensing agreements, and use of the Library's logo. Also, we were asked to
         work in consultation with the Library to evaluate options and alternatives for
         generating profits from retail activities.

         During the preliminary stages of our study, we determined that the Library's planning
         activities were in a very preliminary state. Therefore, we agreed with your staff on
         the following objectives for our work: (1) determine the status of the Library's plans
         to achieve the goal of operating these retail activities for profit, including whether it
         has developed business plans, implemented accounting procedures, conducted
         marketing studies, and developed pricing policies for its retail operations, (2) identify
         the Library's current policies and procedures for the control of products, licensing
         agreements, and use of the Library's logo, and (3) analyze past financial performance
         of Library retail activities for profit potential.

         In February and March, 2002, we briefed staff of the Subcommittee on the Legislative
         Branch, Senate Committee on Appropriations, and the Joint Committee on the

         'Senate Report 107-37, accompanying Public Law 107-68, Legislative Branch Appropriations Act, 2002.


GAO-02-554R Library of Congress Retail Activities

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