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--Personnel hiring and employment practices, and the procurement of goods and services financed by trust funds are consonant with sound management policies and procedures, and include, where appropriate administrative consistency and simplicity, the application of guidelines established for the use of Federal funds.  Trust fund employees are paid at rates commensurate with those of Federal employees.  Decisions concerning funding for employment are determined through the annual budget processes.  Employees are charged to Federal appropriations, restricted trust funds, and unrestricted trust funds in a manner consistent with approved programs and projects and in accord with the purposes for which these funds are provided to the Institution.  Any exceptions, which will be infrequent in number, to the consistent changing of personnel, will be specifically approved by the Secretary, and, if involving a key appointment or a long-term assignment, will be reported to the Board of Regents and to the Congress with an explanation of the circumstances that dictated an exception to regular budget policy.

Management and administrative services units of the Institution, including legal counsel, accounting, payroll, personnel, supply, and others, are staffed and otherwise supported in part from Federal funds and in part from trust funds, including funds resulting from overhead recovery on grants and contracts administered by the Smithsonian and from administrative fees charged to trust funded activities.  This procedure produces a ratio of Federal and trust fund administrative support approximately in proportion to the operating program expenditures of the Institution as a whole.

The auxiliary activities staff and related operating expenses, such as those of the Smithsonian Associates (including the [[underlined]] Smithsonian [[/underlined]] magazine), and the Museum Shops, are funded from the earned income of these activities.  Where losses are budgeted for certain of these activities such as the Traveling Exhibition Service and Performing Arts, usually included in the "auxiliary" category of the trust funds budget because they have earned income, also receive appropriated funds.