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members of the Committee felt that measures of energy and effectiveness must be pressed by the management to put this problem right.

Messrs. Bloom and Morse described for the Committee the review which Coopers & Lybrand conducted of the personnel-payroll system both on-site at the National Finance Center in New Orleans and at the Smithsonian.  They noted a number of procedural weaknesses in timely communications, reconciliations, selected internal controls, verification of time cards, updating for personnel changes, and selected data processing procedures.

Concluding Coopers & Lybrand's presentation, Mr. Strom presented the final report on administrative and financial arrangements and procedures at the Smithsonian Astrophysical Observatory.  This subject was explored in detail at the Committee's last meeting; the report confirms data given at that time.

Mr. Stanton gave a brief overview of the annual report of the Office of Audits and Investigations.  He indicated that reviews of the following programs and activities were conducted:
Smithsonian Astrophysical Observatory
Joseph Henry Papers
National Associates Program
Unliquidated Obligations
Utilities Payment Process
Accounting Service Center
Mail Management
Internal Controls Over Cash Receipts at the 1988 Festival of American Folklife
Conservation Analytical Laboratory
American Art/Portrait Gallery Office of Building Management
Internal Controls Over Payroll Operations; Operations of the Payroll/Personnel System
Trust Fund Health Benefits Program
National Museum of Natural History Office of Building Management
Auxiliary Activities
Follow-up on Open Audit Recommendations