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reported immediately to the Secretary and within seven days to the appropriate Congressional committee.

These requirements would impinge on the statutory authority (20 U.S.C. 41 [[underlined]] et seq. [[/underlined]] ) and responsibility of the Board of Regents, which includes six members of Congress, with respect to oversight of financial and program matters of the Institution. Additionally, the Congressional reporting requirements, including the provision of a listing of all audit reports and making the reports to Congress available to the public upon request, will discourage the internal process of openness and cooperation. This same concern prompted the Board of Regents' action in 1977 when the Board approved a resolution aimed at protecting the integrity, independence and confidentiality of the internal audit process.

The Regents noted that the proposed amendment, in addition to complicating the job of maintaining the confidentiality of the internal audit function at the Institution, would make it more difficult to use the audit function for a variety of investigative and corrective activities if it were to apply rigidly to the Smithsonian. In effect, the Institution is already in compliance with the key provisions of the amendment, and the Congressional members of the Board of Regents constitute a reviewing body that accomplishes much of what the amendment proposes to do. It was agreed that the Congressional Regents would work with the Secretary to bring these perspectives to the attention of the relevant committees of the Senate and the House of Representatives.

[[underlined]] Report on Divestment and the Status of the Endowment [[/underlined]]

It was noted that the investment managers had succeeded in selling all holdings in companies doing business in South Africa with the exception of stock in three firms who have announced plans to withdraw from their operations there. (Subsequent to the meeting it was discovered and announced that there had been an error in reporting and that the managers continued to hold stock in only two such companies, Ford and ITT.) In any event, the managers will be in full compliance with the Regents' standards of divestment no later than December 31, 1987 and probably earlier. The total value of the endowment funds stood at $227 million as of September 22.

[[underlined]] The Secretary's Report [[/underlined]]

Mr. Adams reported that he has accepted two important assignments outside of the immediate concerns of the Smithsonian, service on a National Academy of Sciences committee of "experts" to evaluate the suitability of proposed locations for the nation's new superconducting super collider and the Chairmanship of the National Academy of Sciences' Commission on Behavioral and Social Sciences and Education, a post he had held in the 1970's.

Mr. Adams also reported on organizational matters in light of Dr. Reinhardt's retirement from the Directorate of International Activities, Dr. Hoffman's appointment to succeed Dr. Challinor as the Assistant Secretary for Research, and the potential selection of an Assistant