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indirect costs is atypical of that for the research universities, given its unique funding structure (which relies so heavily on direct Federal appropriations).  Even without these difficulties, the Institution would still find itself standing on shifting sands, as the Office of Naval Research and the Defense Contract Audit Agency are changing their standards on allowable and appropriate costs retrospectively.  An additional area of concern is that, because the Institution has open audits dating back to 1983, the Defence Contract Audit Agency may have the capacity to extrapolate findings of any unallowable costs back for all those open years.  A report on these matters will be presented to the Audit and Review Committee on March 4.

In discussion, the Regents suggested that it would be prudent for staff to examine its various accounts as soon as possible, looking for areas in which the Institution has both overcharged and under-charged indirect costs.


HONOR FOR MRS. GAYNOR

Mr. Adams noted that he had recently awarded the Secretary's Gold Medal for Exceptional Service to Margaret C. Gaynor, the Institution's Director of Government Relations.  While the award was presented in honor of her many accomplishments, it pointed specifically to her successful crafting and shepherding of the legislation which established the National Museum of the American Indian.  Noting that the accompanying citation made reference to her engaging "guile," the Regents congratulated her and encouraged her to continue to persevere on behalf of other Smithsonian legislative priorities.


OTHER MATTERS

Concluding his Report, the Secretary agreed to provide a list of topics he expects to raise in this portion of future meetings of the Board.