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In the past decade the gross operating trust fund revenues of the Institution have ranged between 8% and 25% of its total operating budget.  Only in 1975 and 1976 have they exceeded 20%.  This has been due in substantial measure to the wide acceptance of [[underlined]] Smithsonian [[/underlined]] magazine by subscribers and advertisers which has generated sums of unrestricted funds previously unavailable.

[[underlined]] POLICIES AND PROCEDURES FOR THE USE OF TRUST FUNDS [[/underlined]]

The policies and procedures which have been developed for the use of trust funds may be summarized as follows.  Any future significant changes in these policies will be approved by the Executive Committee of the Board of Regents, and, if necessary, the full Board, and following such approval will be made known to the Office of Management and Budget and the Congress.

-- Annual income budgets are prepared in detail for each of the sources of trust funds along with expense budgets for all recipient programs, activities, and organizations.  The trust fund budgets are consolidated for review by Smithsonian management and approval by the Board of Regents as a part of the overall Institution budget.  These budgets are developed in coordination with Federal budget planning and allocations, particularly in those instances where both appropriated and trust funds are traditionally supplied to support an organization unit or program.

-- Separate financial accounts are maintained, reports prepared, and results monitored and projected to assure that trust funds are used for approved purposes and in an effective manner.  Trust fund plans and budgets for the current and budget years are communicated in a timely and comprehensive way to the Office of Management and Budget and the Congress for their review as part of the Federal appropriations process.  Any proposed expenditures of trust funds which may result in a significant requirement for future Federal dollars is brought to the attention of OMB and Congress in a timely manner before any commitment is made.    Similarly, unanticipated requirements to use significant amounts of trust funds for an activity usually supported with Federal appropriations are discussed with OMB and the appropriate committees of Congress also in a timely manner prior to commitment.