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its constituencies--members of Congress, donors, potential donors, VIP visitors to the Smithsonian, journalists and others. The publication will be approximately 84-88 pages, that is, more along the lines of corporate annual reports. It will have a color cover with an education theme; a table of contents; a section with the Secretary's statement, report of the board of Regents, a list of benefactors and a financial report; a 19-page color spread, consisting of minimal text and one stunning color photo per page of an organization's most significant accomplishment,activity or acquisition (19 units in all, including all bureaus); highlights from the year on all units listed in Smithsonian Year 1990 and any new units established during the year (consisting of one short paragraph on the mission of the unit, followed by items of accomplishment); and an organization chart. Black-and-white photos will be used throughout.

The Secretary and Under Secretary consider this experiment, recognizing that there may not be a consensus on this new approach. They are prepared to review and evaluate achievement of the objectives of Smithsonian Year 1991 prior to the call for the entries of fiscal year 1992.

RECENT INDIRECT COST AND AUDIT ISSUES FOR FEDERAL GRANTS AND CONTRACTS

Throughout fiscal year 1991, the U.S. Government increased scrutiny of educational institutions under OMB Circular A-21 cost principals (which the Smithsonian currently is required to follow) in light of the perception that abuses of indirect cost recovery were occurring elsewhere. In June 1991, OMB proposed changes to Circular A-21 to tighten the cost principles used by educational institutions. OMB Circular A-133, which covers audit requirements, has recently been issued; compliance with the circular is expected to improve accountability a well as the cost effectiveness of the audit process.

The Smithsonian is keeping abreast of the changes and revisions being discussed by Congress, OMB, and other OMB A-21 mandated institutions. Over the last several months, it has reviewed its internal controls and developed strategies and procedures to improve the financial and administrative management of its externally-sponsored projects. Measures include expanding the role of the Office of Sponsored Projects, rewriting policies and procedures for seeking and accepting external grants and contracts, contracting with Coopers & Lybrand to perform a vulnerability assessment and diagnostic evaluation of the Smithsonian's indirect cost rate calculation, and complying with OMB A-133 audit requirements by implementing the coordinated audit concept.

LEGISLATIVE ACTIONS AND ISSUES: ZOO POLICE PAY, FEDERALIZATION OF SITES AND STATUS OF OTHER LEGISLATION

Two legislative initiatives call for additional Secretarial authority to determine competitive rates of pay for the Zoo police and authority to convert several personnel within the Smithsonian Institution Traveling Exhibition Service to Federal status. The following motions were adopted: