Summary: A review of the fiscal practices and policies of the Smithsonian Institution conducted in early 1977 showed that there was a need to strengthen their financial accountability to Congress. A report issued in September 1977 concluded that the Smithsonian had adopted adequate procedures for management of cash in its private funds and had been generally successful in keeping noninterest bearing checking account balances at minimum levels in consonance with daily operating needs. Criticisms of certain Smithsonian practices reported in March 1977 can be attributed for the most part to the failure of the Smithsonian to adequately inform Congress of its planned use of funds, both federal and private, and of its methods of operations. The problems could have been avoided if there had been free and open dialogue with the concerned congressional committees. Smithsonian officials are now taking steps to keep Congress better informed. The Smithsonian staff has prepared a preliminary draft of a policies and procedures statement governing the use of appropriated and trust funds which will be presented to the Secretary of the Smithsonian Institution and to the Board of Regents for approval. The Smithsonian included in its fiscal year 1979 appropriation request detailed estimates of trust fund receipts and planned expenditures.
