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Recommendation to receive and file the Long Beach Museum of Art Inventory Audit; and request City Management and Foundation Management to advise the City Council and City Auditor as to progress and plans for implementation in six months and one year from the date of receipt and filing of this report.
DISCUSSION
The Office of the City Auditor recently completed two audits involving the Long Beach Museum of Art: a review of the Museum's Capital Campaign and a review of the Museum's inventory.
Attached for your consideration is the Inventory Audit.
The objective of this audit was to conduct a complete inventory and to assess the controls over inventory to ensure that all City-owned artwork is fully accounted for and properly safeguarded.
Our audit focused on the systems for tracking how many art pieces the City owns at the museum, where they are located, and what they are worth.
As part of our audit, City Auditor staff conducted a comprehensive inventory of the artwork at the Museum to ensure that the City's assets are fully accounted for and properly protected. Staff physically observed, counted, and reconciled the City-owned art collection to the City's Fixed Asset Report and the Foundation's Inventory System. Additionally, staff analyzed internal controls at the Museum to ensure that the appropriate safeguards are in place to protect the City's collection in the future and reviewed the Museum's compliance with its contractual responsibilities to the City. These topics, our procedures, and recommendations for improvement are all discussed at length in the attached report.
We appreciate the time, information, and cooperation provided by current Foundation Management and by members of the Departments of Community Development and Financial Management in connection with this audit. The City's assets exist not only to serve today's residents but those of future generations, and thus our Office looks forward to continuing to advise the City on the necessary and appropriate controls needed to ensure that our assets will continue to serve the community in the years to come.
TIMING CONSIDERATIONS
This item is not time sensitive
FISCAL IMPACT
Implementation of the recommendations in the attached report will protect the City's valuable collection managed by the Long Beach Museum of Art, a subset of which has been valued at $12.8 million. In the event that the City is able to collect insurance for some of the missing pieces identified in this report, that would result in a positive recovery to the City.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Laura L. Doud, CPA
City Auditor