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prospects of limiting future acquisitions as well as increasing rates of deaccessioning and loaning artifacts to kindred institutions.

Mr. Strom highlighted for the Committee Coopers and Lybrand's report, giving a "clean opinion" on the Smithsonian's financial statements for fiscal year 1987. He drew the Committee's attention to increased revenues for certain auxiliary activities, changes in the Institution's investment portfolio, and Smithsonian indebtedness for construction of the new restaurant at the Air and Space Museum, the purchase of Folkways Records, and the purchase of works of art. Miss Raffa introduced Coopers and Lybrand's Report to Management, and there ensued some discussion of the Smithsonian's continuing lag in the posting of transactions and need for a fully automated purchasing, receiving, and accounts payable system. Miss Leven described reasons why such a system is not readily available to handle the Smithsonian's Federal as well as nonappropriated trust fund accounting. She added that a prototype financial system is to be tested over the next six to eight months.

Mr. Stanton reported that the Office of Audits and Investigations conducted the following audit reports in calendar year 1987:

Accounting Service Center
Unliquidated Obligations
Office of Personnel Administration
Timekeeping Procedures
National Zoological Park Physical Plant Maintenance Program
National Zoological Park Workers' Compensation Claims
Payment Process
National Air and Space Museum Building Management Division
Exhibits Review Process
Resident Associates Program Cash Receipts Controls 
Small Purchase Order System
Transportation Procurement Process
Follow-Up on Open Recommendations

As Mr. Stanton discussed a number of the major points form these audits, the Committee raised several concerns. Prompted by reports that, despite marked improvement, some 30% of staff travel advances are delinquent, the Committee expressed the view that Smithsonian management should redouble its efforts to bring this unbusinesslike situation under tighter control and to inculcate greater discipline and awareness of requirements in the professionals who do the travelling. The Committee was also disquieted by what appears to be endemic sloppiness in record keeping and dilatory personnel work if one extrapolates from internal audit reports and investigations. The Committee has a sense that curatorial supervisors seem to want to put off office paper work because it is boring and that management does not hold their feet to the fire. In response, Mr. Stanton acknowledged that many heads of bureaus and offices could improve their operations, but he felt that a good number of offices at the Smithsonian do operate in an efficient and effective manner.

Moving into an executive session with Mmes. Leven, Dodson, Guss and Messrs. Jameson, Powers, and Hobbins, the Committee complimented Miss