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VOTED that, in accordance with Section 2.08 of the Bylaws, the Board of Regents confers on Edward P. Boland the title of Regent Emeritus, with all the rights and responsibilities thereof.

[[underlined]] RESIGNATION OF REGENT GELL-MANN [[/underlined]]

The Chancellor read a letter of resignation from Regent Murray Gell-Mann which was accepted with regret.

[[underlined]] PROPOSED AMENDMENTS TO THE BYLAWS OF THE BOARD OF REGENTS [[/underlined]]

The Regents gave preliminary consideration to proposed amendments to their Bylaws which would establish a nominating committee as a standing committee and which would eliminate gender-specific references in several sections. As provided by the Bylaws, the proposed amendments will be brought forward to the Regents for further consideration at their next regularly scheduled meeting.

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

At its May 24 meeting, the Audit and Review Committee discussed Coopers and Lybrand's plan for their consolidated audit of fiscal year 1988 funds. In that connection the Committee noted that Coopers and Lybrand had rotated key members of their audit team, that new administrative procedures will require additional time for tests of effectiveness of controls, and that the Auditing Standards Board's proposed application of accounting standards for capitalization of museum collections would indeed be problematical for the Smithsonian.

Mr. Anderson gave a brief report on weaknesses in administrative and financial practices, and there ensued a wide-ranging discussion of such matters as controls over cash management, timely follow-up on audit recommendations, and prompt settlement of employees' travel advances. Mr. Anderson pointed out the difficulties in meeting and balancing three main objectives: prudent fiduciary stewardship, public service, and effective support of the professional research staff. The Committee acknowledged these complexities but suggested that different approaches to cash management, for instance, be explored. While the Committee recognized that the Smithsonian's record of implementing internal audit recommendations was commendable, it was noted that follow-up often takes too long and that greater responsibilities need to be placed upon the Assistant Secretaries for correcting problems in the bureaus and offices of the Institution. Concluding this portion of the meeting, Mr. Anderson said that in most cases of outstanding travel advances the Institution owes the employees a reimbursement, that as a matter of policy the Smithsonian no longer processes an advance for any employee who still has not settled on a previous trip, and that in those few cases where advances remain unsettled for a long time Mr. Anderson personally prods the employees into action; accordingly this appears generally to be a matter of documentary, but not financial, delinquency.
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