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[[underline]] PRELIMINARY DRAFT [[/underline]]

SMITHSONIAN INSTITUTION POLICIES GOVERNING THE USE OF FEDERALLY APPROPRIATED FUNDS; FEDERALLY AND PRIVATELY FINANCED CONTRACTS AND GRANTS; AND TRUST FUNDS

To appraise Smithsonian policies on the various categories of funds made available to us, it is first necessary to review briefly the history of the Institution's financial support. Since its establishment in 1846, the Board of Regents have exercises its statutory authority over the uses of the Institution's trust fund income. Beginning with the original Smithson bequest of $542,000, the trust fund endowment has been augmented by others gifts and bequests, principally for specified or restricted purposes.

All funds of the Institution are administered, under the direction of the Board of Regents, subject to the terms and conditions required by their sources: Federal appropriations, Federally and privately financed contracts and grants, and trust funds.

In 1857, Congress first appropriated funds to the Institution for receiving and installing and caring for the national collections of scientific, historical, and art objects. Based on the assurance of continuing Federal support, the Regents agreed that the Smithsonian would accept responsibility as curator of the national collections.

The construction of the original Smithsonian Building in 1847-1855 was funded from the accrued interest on the Smithson bequest. Subsequently, the Congress appropriated funds for constructing and staffing the present Arts and Industries Building, and by 1883