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Action Taken.  As noted previously, new procedures, developed in accordance with Federal laws and regulations, have been instituted for the administration of each of the Research and Fellowship Programs previously administered by the Smithsonian Research Foundation.  These procedures are working well and there does not appear to be the need to seek exemptions from legislation.  A previous item reported on the Smithsonian Science Information Exchange and the need for the Department of Commerce to obtain legislation to protect the benefits of the Exchange's employees at the time they become Federal employees within the Department of Commerce.

2.  "Continue working with the Appropriations Committees to reach a common understanding as to the types of budget reprogramming actions the Committees wish to approve in advance, and, in the interim, continue seeking Committee approval of all reprogramming actions"

Action Taken.  The Institution is complying with reprogramming procedures developed by the House and Senate Appropriations Subcommittees and is experiencing no difficulties in meeting the Institution's needs.

[[underlined]] Audit and Review Committee of the Board of Regents Report of September 1, 1977, Covering the Relationship of the Smithsonian Institution to the Federal Government and Other Matters [[/underlined]

Recommendations for Improving the Accountability of the Institution to the Congress:

1. "The Regents and the Secretary should adopt the policy of seeking specific authorizations for all significant new programs and projects involving the use of federal funds"

Action Taken.  This policy is in effect for the Institution.  Recent examples include the legislation for the Museum of African Art and for the construction authorization for the Museum Support Center.  Legislation will be considered for the development of the South Garden, an item before the Regents for the January 1979 meeting.

2. "The Regents and the Secretary should adopt a policy of discussing with the Appropriations Committees any proposed use of trust funds which may involved the future expenditure of Federal funds"

Action Taken.  Such a policy is in effect.  Its continued implementation will be facilitated by the new consolidated budget format approved by the Regents, by the submission of consolidated budget information on a line item basis to the Congress as previously noted, and by the annual update and submission of the Institution's five-year perspective.

3. "The Regents and the Secretary should establish a 5-year forward planning process for the Institution covering all of its activities"