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[[underlined]] Report on Actions on Recommendations of Various Management Reports [[/underlined]]

Mr. Ripley reported that the Institution's continuing attention to the recommendations of various management reports is indicated in the following progress report:

[[underlined]] General Accounting Office Report (GGD-77-43) of March 31, 1977. "Need to Strengthen Financial Accountability to Congress" [[/underlined]]

Recommendations to the Board of Regents:

1. Dissolve the Smithsonian Research Foundation and the Smithsonian Science Information Exchange"

Action Taken. No further funds have been provided to the Smithsonian Research Foundation since the Congressional prohibition on its use. It has not had an administrative employee since November 30, 1977 and the last employee associated with a research project terminated on September 30, 1978. All travel and procurement accounts should be closed by December 31, 1978 and the Smithsonian's independent auditors will make a final audit of SRF accounts as of that date. The Office of General Counsel is examining the matter of dissolving the corporation. Programs previously administered by the SRF are now being successfully administered in accordance with standard personnel and procurement procedures.

In May 1978 the Regents were advised that the President's Reorganization Project had taken up consideration of the future status of the Exchange including its organizational placement and that the Smithsonian could expect a recommendation by the fall of 1978 in connection with OMB's action on the FY 1980 budget. Following discussions by the staffs of the President's Reorganization Project, the SSIE, the Smithsonian, and the Department of Commerce (with similar program responsibilities for the National Technical Information Service), the Director of OMB in a letter of July 21, 1978, to the Chairman of the Subcommittee on Interior and Related Agencies of the Senate Committee on Appropriations stated that the Administration was interested in moving the Exchange to the Department of Commerce and would prefer to have the FY 1979 appropriation made to that Department and the transfer become effective as of October 1, 1978. This letter went on to say that should such an adjustment to the FY 1979 budget not be feasible or timely, the OMB would then direct the Department of Commerce to study the issues of terminating SSIE's corporate status, converting SSIE employees to civil service, and consolidating its operations with those of the National Technical Information Service. The letter also suggested that the Appropriations Committee establish a specific date of not later than July 1, 1979 for transfer of SSIE and remaining available funds to Commerce. The Senate endorsed this alternate plan in its Report. No. 95-1063 on the FY 1979. The Conference Report No. 95-1672 on the FY 1979 appropriation stated that the managers agreed with the Senate recommendation to transfer the Exchange as proposed by OMB.

Since this OMB and Congressional action, the Institution has entered into the usual contract with the Exchange in order to permit its continued operations. As a result of continued discussion among the interested agencies, the Office of Management and Budget has placed the Exchange in