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SMITHSONIAN INSTITUTION    1522

that the budget for 1962, that will be presented, is given in such a way as to show the actual audited figures for 1960 together with the budget figures for that year. For comparison purposes the budget figures adopted at the annual meeting of the Board last year, that is the budget for the fiscal year 1961, under which the Institution is now operating, are also presented. By giving these four columns, it is thus possible to compare on the same page the approved budget for the last audited year and the actual expenditures of that year, as well as the budget under which the Institution is being operated at the present time, together with the proposed figures for the 1962 budget.

The Committee, on recommendation of the Secretary and the Director of the Freer Gallery of Art, authorized the expenditure from accumulated Freer income of $150,000 for the purchase of approved objects of Asiatic art. It was noted that the accumulated income fund of the Freer Gallery stood at $625,788.70 on June 30, 1960. It was further noted that it was the direction of the donor that such income be expended for purchases of objects of art of this type.

At this meeting of the Executive Committee the Secretary also gave a report on the progress of the building of the Museum of History and Technology and on plans for other Smithsonian buildings. He also reported on the affairs of the Institution in general. The question of capital improvements at the National Zoological Park was given special consideration, and the Secretary was asked to send a report on this matter to the members of the Board of Regents prior to the Regents meeting on January 13, 1961.

It was noted that Peat, Marwick, Mitchell & Co., a nationally known firm of auditors, had made the annual audit of the Institution's accounts. This report is incorporated in the printed report of the Secretary that is before you. Copies of the typed and signed audit are also on the table for examination.

Each year at this time, I am happy to review the procedure by means of which the investments of the Smithsonian Institution are managed. During the current year, as in recent years, recommendations for changes in the portfolio of the Institution come to me as Chairman of both the Executive Committee and the Permanent Committee of the Smithsonian. The recommendations concerning such changes ordinarily originate with the investment counselors. Copies of these proposals from their office are sent not only to me but also to the Secretary of the Institution. Each such recommendation receives my personal consideration, and my approval or disapproval. I also ask my associates in the Trust Department of the Riggs National Bank to check these proposals on the basis of the detailed sources of information that are at their disposal. A final decision is then made as to the proper action to be taken in regard to each recommendation. Such action is then submitted in writing for approval or for reconsideration to the members of the Permanent Committee.

Detailed quarterly statements of all the Smithsonian Institution's investments come to me from Scudder, Stevens & Clark for consideration. Typical copies of these reports are before us today on the table. These statements summarize the investment holdings of the Smithsonian Institution as organized in the major funds of the Institution on the dates when they are issued.

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