Network Bulletin No.00-46

Date: August 18, 2000

Subject:    Machine-lending agencies
Index term:  Auditor visits for machine audits

The Office of the Inspector General, Library of Congress,
has awarded a machine audit contract to KPMG.  NLS staff met
with the KPMG staff who will be conducting the audits to
provide an orientation and to discuss concerns that have
arisen in past audits.

KPMG has determined that they will visit a subset of
machine-lending agencies (MLAs).  They have divided the MLAs
into three sizes:  small, medium, and large.  They will
visit twenty-five randomly selected sites.  The KPMG
auditors will identify a random sample of a different number
of cassette machines for each size MLA.  Information
obtained through these visits and examination of cassette
machine records will be used to extrapolate the overall
accuracy of record keeping at all MLAs.

Auditors from KPMG will also conduct a machine-audit of NLS.
Staff from the Inspector General's Office, Library of
Congress, will conduct machine-audit visits to the
multistate centers and the BPHICS contractor.

KPMG will provide a report that will identify problems and
concerns for the network as a whole.  No individual MLA
reports will be issued.

Network suggestions regarding the machine audit were shared
with KPMG.  NLS provided a list of suggestions including the
National Audio Equipment Advisory Committee (NAEAC)
resolutions of 2000, Western Conference resolution of 1999,
and the Northern Conference resolution of 2000.  All
recommended that patrons be contacted in an accessible
format.  After discussion it was agreed that patrons
selected to be in the audit sample would receive
confirmation letters in both large print and on cassette.
Both formats will be sent in a package to each patron
contacted to confirm a cassette machine serial number.
Selected MLAs will receive a letter from Frank Kurt Cylke,
director of the National Library Service for the Blind and
Physically Handicapped, informing them of their selection
for a visit.  KPMG staff will follow up to schedule a date
for the visit.  KPMG expects to complete their visits no
later than November 30, 2000.

For more information contact:
Stephen Prine
Network Services Section