Viewing page 17 of 175

This transcription has been completed. Contact us with corrections.

-4-

would irreparably undermine the time-honored integrity of the Institution and its historic mandate for "the increase and diffusion of knowledge."

We hope that the Senate Rules Committee will proceed cautiously, will consider the manifold dimensions of the opportunities at hand, and will ensure that the interests of the Smithsonian Institution and American Indian people are well served.

With the expectation that the Secretary will provide a thorough briefing for the Board of Regents, including all of the most recent activities, the Committee recommended that the Regents be prepared to adopt a resolution essentially incorporating the middle paragraph of the foregoing statement.

The meeting of the Executive Committee was adjourned at approximately 2:00 p.m. upon the conclusion of luncheon.

[[underlined]] REPORT OF THE AUDIT AND REVIEW COMMITTEE [[/underlined]]

Mr. Acheson introduced the following report of the Audit and Review Committee. In addition, he summarized the deliberations of the Committee on the proposal to establish a policy of periodic rotation of the independent auditors or other means of introducing into the auditor relationship a degree of competition and assurance of objectivity. He then drew the Regents' attention to the recommendation which he had made to the Committee and which the Committee had unanimously endorsed (see Mr. Acheson's memorandum of April 29, 1988, below). He explained that it was recommended that the Smithsonian issue a Request for Proposals, and select the most highly qualified firm from respondents to conduct the annual audits for the next ten years; that the incumbent independent auditors not be excluded from bidding; and that a contract with the successful respondent be completed in time for work on the audit of fiscal year 1989 financial statements and records. In discussion he noted that at present the contract would be from year to year, could be terminated for cause at any time, and would in any case be opened up