INTERIOR, ENVIRONMENT, AND RELATED 

AGENCIES APPROPRIATIONS FOR 2010 

HEARINGS 

BEFORE A 

SUBCOMMITTEE OF THE 

COMMITTEE ON APPROPRIATIONS 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

SUBCOMMITTEE ON INTERIOR, ENVIRONMENT, AND 

RELATED AGENCIES 

NORMAN D. DICKS, Washington, Chairman 

JAMES P. MORAN, Virginia 

ALAN B. MOLLOHAN, West Virginia 

BEN CHANDLER, Kentucky 

MAURICE D. HINCHEY, New York 

JOHN W. OLVER, Massachusetts 

ED PASTOR, Arizona 

DAVID E. PRICE, North Carolina 

MICHAEL K. SIMPSON, Idaho 

KEN CALVERT, California 

STEVEN C. LATOURETTE, Ohio 

TOM COLE, Oklahoma 

NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking 

Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. 

DELIA SCOTT, CHRISTOPHER TOPIK, JULIE FALKNER, 

JASON GRAY, and BETH HOUSER

Staff Assistants 

PART 8 

OVERSIGHT HEARING ON SMITHSONIAN INSTITUTION 

( 

Printed for the use of the Committee on Appropriations 


dcolon on DSK2BSOYB1PROD with HEARING
INTERIOR, ENVIRONMENT, AND RELATED 

AGENCIES APPROPRIATIONS FOR 2010 

HEARINGS 

BEFORE A 

SUBCOMMITTEE OF THE 

COMMITTEE ON APPROPRIATIONS 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

SUBCOMMITTEE ON INTERIOR, ENVIRONMENT, AND 

RELATED AGENCIES 

NORMAN D. DICKS, Washington, Chairman 

JAMES P. MORAN, Virginia 

ALAN B. MOLLOHAN, West Virginia 

BEN CHANDLER, Kentucky 

MAURICE D. HINCHEY, New York 

JOHN W. OLVER, Massachusetts 

ED PASTOR, Arizona 

DAVID E. PRICE, North Carolina 

MICHAEL K. SIMPSON, Idaho 

KEN CALVERT, California 

STEVEN C. LATOURETTE, Ohio 

TOM COLE, Oklahoma 

NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking 

Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. 

DELIA SCOTT, CHRISTOPHER TOPIK, JULIE FALKNER, 

JASON GRAY, and BETH HOUSER

Staff Assistants 

PART 8 

OVERSIGHT HEARING ON SMITHSONIAN INSTITUTION 

( 

Printed for the use of the Committee on Appropriations 

U.S. GOVERNMENT PRINTING OFFICE 

54–504 WASHINGTON : 2010 


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COMMITTEE ON APPROPRIATIONS 

DAVID R. OBEY, Wisconsin, Chairman 

JOHN P. MURTHA, Pennsylvania 

NORMAN D. DICKS, Washington 

ALAN B. MOLLOHAN, West Virginia 

MARCY KAPTUR, Ohio 

PETER J. VISCLOSKY, Indiana 

NITA M. LOWEY, New York 

JOSE ́ E. SERRANO, New York 

ROSA L. DELAURO, Connecticut 

JAMES P. MORAN, Virginia 

JOHN W. OLVER, Massachusetts 

ED PASTOR, Arizona 

DAVID E. PRICE, North Carolina 

CHET EDWARDS, Texas 

PATRICK J. KENNEDY, Rhode Island 

MAURICE D. HINCHEY, New York 

LUCILLE ROYBAL-ALLARD, California 

SAM FARR, California 

JESSE L. JACKSON, JR., Illinois 

CAROLYN C. KILPATRICK, Michigan 

ALLEN BOYD, Florida 

CHAKA FATTAH, Pennsylvania 

STEVEN R. ROTHMAN, New Jersey 

SANFORD D. BISHOP, JR., Georgia 

MARION BERRY, Arkansas 

BARBARA LEE, California 

ADAM SCHIFF, California 

MICHAEL HONDA, California 

BETTY MCCOLLUM, Minnesota 

STEVE ISRAEL, New York 

TIM RYAN, Ohio 

C.A. ‘‘DUTCH’’ RUPPERSBERGER, Maryland 

BEN CHANDLER, Kentucky 

DEBBIE WASSERMAN SCHULTZ, Florida 

CIRO RODRIGUEZ, Texas 

LINCOLN DAVIS, Tennessee 

JOHN T. SALAZAR, Colorado 

JERRY LEWIS, California 

C. W. BILL YOUNG, Florida 

HAROLD ROGERS, Kentucky 

FRANK R. WOLF, Virginia 

JACK KINGSTON, Georgia 

RODNEY P. FRELINGHUYSEN, New 

Jersey 

TODD TIAHRT, Kansas 

ZACH WAMP, Tennessee 

TOM LATHAM, Iowa 

ROBERT B. ADERHOLT, Alabama 

JO ANN EMERSON, Missouri 

KAY GRANGER, Texas 

MICHAEL K. SIMPSON, Idaho 

JOHN ABNEY CULBERSON, Texas 

MARK STEVEN KIRK, Illinois 

ANDER CRENSHAW, Florida 

DENNIS R. REHBERG, Montana 

JOHN R. CARTER, Texas 

RODNEY ALEXANDER, Louisiana 

KEN CALVERT, California 

JO BONNER, Alabama 

STEVEN C. LATOURETTE, Ohio 

TOM COLE, Oklahoma 

BEVERLY PHETO, Clerk and Staff Director 

(II)


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(1) 

DEPARTMENT OF THE INTERIOR, ENVIRONMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2010 

THURSDAY, DECEMBER 10, 2009. 

OVERSIGHT HEARING ON SMITHSONIAN INSTITUTION 

WITNESSES 

MARK GOLDSTEIN, GAO, DIRECTOR, PHYSICAL INFRASTRUCTUR 

TEAM 

A. SPRIGHTLEY RYAN, SMITHSONIAN INSTITUTION, INSPECTOR GENERAL 

DR. G. WAYNE CLOUGH, SECRETARY, SMITHSONIAN INSTITUTION 

Mr. DICKS. The Committee will come to order. 

I want to welcome our witnesses this morning from the Government Accountability Office and the Smithsonian Institution’s Inspector General and Secretary. Our first panel will include Mr. 

Mark Goldstein, Director of the Physical Resource Team of the 

GAO, and Ms. Sprightley Ryan, Inspector General. After we hear 

their testimony and ask them some questions, I would like them 

to stay in the hearing room while we listen to testimony from Secretary Wayne Clough. We want to focus on recent reviews of governance and facilities, as well as other management control and 

collection care issues. We thank all of the witnesses for appearing 

here today. 

I am glad that we have a chance to have this hearing today. As 

most of you know, our Committee has had some serious concerns 

for how the previous Smithsonian Secretary was governing the Institution. We were particularly troubled by the major ethical and 

judgment lapses. The Smithsonian is a vital national cultural and 

scientific resource. The specialists, the museums and the varied 

educational programs such as the National Zoo are special to all 

Americans, and there is a huge federal investment as well for 

which taxpayers expect accountability and responsibility. To ensure 

these, management and leadership are critical. 

Today we will begin by focusing on governance issues at the 

Smithsonian. As a result of public and Congressional demands, the 

Smithsonian completed detailed reports on reforms identified by 

the Independent Review Committee and the Regents Governance 

Committee. We have tasked the GAO to evaluate the Smithsonian’s 

progress at implementing these important reforms. Although the 

Institution has been quite responsive so far, it is our role to carefully monitor the progress and see where we can help encourage 

further reform implementation. 


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The GAO physical infrastructure team review of the Smithsonian 

verifies that the maintenance backlog is huge and getting worse. 

This is not new information. We face this situation with many of 

our agencies. For years there have been reviews and concerns for 

degraded Smithsonian collections and failed buildings. Meanwhile, 

the Smithsonian continues to expand its facilities and its programs. 

There has been tremendous expansion of buildings at the Smithsonian during the past two decades. This noteworthy growth is happening while other facilities and vital collections, visitor services 

and scientific and cultural programs are stressed. The Committee 

needs to evaluate and understand what the Secretary and the 

Smithsonian are doing to prioritize efforts to improve this situation. 

Finally, I understand the Secretary has recently completed an involved strategic planning process to guide the Smithsonian for the 

next decade. I hope you will explain this process so that we may 

all better understand how the federal, trust and private portions of 

the Institution all interact and work together. This will help us better understand and evaluate further funding requests. 

Mr. DICKS. Before we begin, I want to ask my friend and ranking 

member, Mr. Simpson, if he would like to make an opening statement. 

Mr. SIMPSON. Thank you, Mr. Chairman. I want to join Chairman Dicks in welcoming each of you here today. I also want to 

offer my congratulations to our panel of witnesses for having the 

foresight to testify after we have actually completed our appropriations bill. 

Let me also commend Chairman Dicks for holding yet another 

hearing in his series of important oversight hearings on this Subcommittee. Oversight is one of the most critical functions of the Appropriations Committee, and Chairman Dicks has led by example 

all year long. 

Judging by a review of this morning’s testimony and from candid 

conversations with Secretary Clough, it would appear that a new 

era of governance has emerged at the Smithsonian. Collaboration, 

accountability and transparency are an integral part of the fabric 

of today’s Smithsonian. To the public and to those of us vested with 

oversight responsibilities over this cherished institution, this is 

good news. 

Before I yield back, I want to mention that our staff and the staff 

of this Committee had the opportunity to visit the Suitland campus 

earlier this week to observe and review some of the more than 100 

million items in the Smithsonian’s collection. I know they probably 

did not see all of the Smithsonian’s 100 million items, but close to 

it. I am told it was an eye-opening experience, and I will followup with additional questions related to their visit as well as a variety of other subjects upon the completion of today’s testimony. 

Thank you, Mr. Chairman. 

Mr. DICKS. I want to just add, I think that Secretary Wayne 

Clough has really made a major change and I feel very positive 

about the new direction. I just want to say that there was great 

concern but I think we are moving in the right direction. Our committee has been very supportive of the Smithsonian over the years 

and will continue to be, and our only concern was that we get this 


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thing moving in the right direction. I think that is being accomplished. 

Mr. Mark Goldstein, please present your testimony. 

GAO TESTIMONY

Mr. GOLDSTEIN. Thank you, Mr. Chairman. 

Mr. Chairman and members of the Subcommittee, thank you for 

the opportunity to discuss governance and facilities-related issues 

at the Smithsonian Institution. Over the past several years, GAO 

has issued a number of reports on these important topics. 

The Smithsonian is the world’s largest museum complex. Its 

funding comes from its own private trust fund assets and federal 

appropriations. The Board of Regents, its governing body, is responsible for the long-term stewardship of the institution. In recent 

years, GAO and others have documented significant governance 

and accountability breakdowns at the Smithsonian which could ultimately put funding and the organization’s credibility at risk. 

In 2007, the Board of Regents’ Governance Committee released 

a report recommending 42 governance reforms. In 2008, GAO 

found that the Board of Regents had implemented 30 of these 42 

reforms. GAO also had made four additional recommendations at 

that time. 

In response to a recent Congressional mandate, this report and 

testimony provides an update on the status of the Smithsonian’s 

implementation of governance reforms recommended by the Board 

of Regents’ Governance Committee and GAO. The work for this report is based on an analysis of Smithsonian documents, interviews 

with Smithsonian officials and a GAO report on Smithsonian governance. We are not making any new recommendations in this report or in the testimony that I am discussing this morning. I would 

add that the Smithsonian and its Board of Regents concurred with 

the findings of our report. 

GAO SUMMARY OF GOVERNANCE REFORMS

The findings of our report are as follows. First, since May 2008, 

the Smithsonian has implemented nine reforms recommended by 

its Governance Committee in addition to the 30 it had implemented 

prior to May 2008 and one of four recommendations, but work remains on three reforms and on three recommendations. The nine 

Governance Committee reforms implemented since May 2008 include efforts such as revising policies related to travel and expense 

reimbursement and event expenses, creating a regents’ annual public forum, and clarifying roles and responsibilities of and developing 

an assessment process for the Board of Regents itself. It has not 

completed implementation of three governance reforms related to 

the Smithsonian’s contracting policy, a comprehensive review of financial reporting and internal controls, and enhancing the role of 

the advisory boards. 

IMPLEMENTATION OF GAO RECOMMENDATIONS

Second, regarding GAO’s May 2008 recommendations, the Smithsonian implemented GAO’s recommendation to evaluate what actions it can take in the event of persistent neglect of duties by a 


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regent but has not completed implementation of the following three 

recommendations. The Board took steps but did not implement 

GAO’s recommendation to develop and make public its process for 

the selection, use and evaluation of non-Regents. The Board of Regents posted on its website the process—— 

Mr. DICKS. What is a non-Regent? 

Mr. GOLDSTEIN. A non-Regent is an individual who is on a committee of the Board of Regents to assist them to provide expertise 

and additional evaluative materials, particularly in areas where 

they may not have the expertise on the Board itself. 

Mr. DICKS. Okay. 

Mr. GOLDSTEIN. The Board of Regents posted on its website the 

process for selecting non-Regent committee members but did not 

make a final decision regarding a proposed bylaw to give non-Regent members of committees the same roles and responsibilities as 

Regents. The Board of Regents took steps to improve its relationship with stakeholders, including advisory boards. However, due to 

limitations of the efforts so far, such as their informal nature and 

the focus on dissemination of information from the Regents rather 

than two-way communication, several advisory board chairs with 

whom we spoke expressed concern that the Board of Regents still 

lacked a sufficient understanding of Smithsonian museums and 

other entities to govern as effectively as possible. The Board of Regents has indicated that in the future it plans to formalize two-way 

communications with the advisory committees to facilitate better 

interaction. 

Finally, the Board of Regents has not conducted a comprehensive 

evaluation of its reforms but plans to do it in fiscal year 2010. 

In conclusion, while the GAO believes that some additional work 

is required to complete the implementation of all recommendations, 

the Smithsonian has made considerable progress and has taken seriously efforts to rebuild public confidence and to ensure greater 

transparency and accountability. 

I would be pleased to respond, Mr. Chairman, to any questions 

you or the members of the Subcommittee may have. Thank you. 

[The statement and brief biography of Mark L. Goldstein 

follow:] 


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Mr. DICKS. I think we are going to hear from the Inspector General first. Ms. Sprightley Ryan, we will hear your testimony. 

INSPECTOR GENERAL TESTIMONY

Ms. RYAN. Thank you. Good morning. I appreciate this opportunity to testify about governance at the Smithsonian. 

While, as GAO remarks, the Smithsonian has made significant 

progress in governance reforms, it needs even stronger management control. The Smithsonian cannot fully realize its new strategic plan without improving management control. It needs to bolster its commitment to continuing reform and to careful stewardship of public resources. I will touch on three challenges: Financial 

discipline, better central oversight, and care of the public treasures 

at the heart of the Institution, its collections. 

FINANCIAL DISCIPLINE

First, financial discipline. The Smithsonian needs greater financial discipline, especially in high-risk areas such as the management of capital projects, financial reporting, implementation of the 

financial management system, use of funds and personal property 

accountability. In my written testimony, I have provided details on 

each of these. For now I am going to focus on the last two: Use of 

funds and personal property accountability. 

In our recent audit of facilities maintenance funds, we found that 

the Smithsonian took funds appropriated for facilities maintenance 

and applied them to unplanned capital projects. For two fiscal year 

2008 capital projects, maintenance monies funded about $550,000 

out of approximately $1 million obligated for the capital projects. 

Apart from the resulting accounting and reporting errors, we are 

concerned that the misapplication of these funds could ultimately 

increase overall facilities costs because these monies were not spent 

on needed maintenance. Unfortunately, we could not determine if 

there were additional instances where the Institution paid for capital projects with maintenance dollars because there was no documentation of these funding decisions. 

MANAGEMENT CONTROLS

These errors occurred because of a relaxed view of management 

control, one that prefers ambiguity that allows for discretion, without appreciating that ambiguity also creates confusion that allows 

for mistakes. Responsibility for funds control was dispersed. There 

was little common understanding of the purpose and rules governing funds control and there was no accountability for mistakes. 

Also, appropriate training, supervision and quality control were 

lacking. 

As for personal property, which includes everything from desks 

to laptops to trucks to telescopes, our just-issued audit again found 

a lack of discipline. Fortunately, recent changes in policies and procedures have substantially improved management of personal property, and the number of missing assets has declined significantly. 

Yet the Smithsonian needs to make even more progress. It did not 

hold individuals accountable for personal property losses, believing 

it could not do so without having employees sign forms acknowlVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00032 Fmt 6602 Sfmt 6602 E:\HR\OC\A504P2.XXX A504P2

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edging their responsibility for the items. Yet at the same time, the 

Smithsonian did not ensure that people completed these forms. The 

Institution has held only one person accountable for $40 worth of 

the approximately $12.3 million worth of missing property in the 

last five years. Moreover, current policy does not hold unit managers directly responsible for enforcing personal property accountability because unit managers resisted such a rule, which brings 

me to the second challenge: Appropriate central oversight. 

There needs to be a shift in the interaction between the 

Smithsonian’s central functions and its units. The units’ autonomy 

is long-standing and nurtures vitality and creativity, but it also 

poses risks to the Institution’s limited resources. Inaccurate accounting and reporting, inadequate project oversight and unacceptable risks to privacy are just some of the consequences of this decentralization. Functions such as procurement, information technology, information security, project oversight and accounting 

should not be subject to varying policy interpretations and operating practices. 

COLLECTIONS STEWARDSHIP

A third challenge in management control is stewardship of the 

collections. We were heartened to see the increase in the fiscal year 

2010 appropriations for the Institution’s collections care initiative. 

The collections are increasingly at risk. In previous audits, we focused on collection security and inventory controls and have found 

them lacking. In our recently begun audit at the National Museum 

of American History, we have expanded our scope to also look at 

the condition of the collections, particularly storage, which historically has had issues with environmental contaminants, moisture, 

crowding and other serious risks. 

Finally, I would like to comment on an overarching challenge to 

improving management control: The need for better internal marketing to explain that the purpose of management control is not to 

create paperwork, it is to reduce unnecessary risks and improve 

the operations and thereby protect Smithsonian resources. Nor is 

its purpose centralized power. Effective management control produces information needed to make difficult resource decisions. 

Strong management control reduces problems that cost money, for 

example, ensuring that laptops do not disappear; or problems that 

cause public embarrassment, for example, creating oversight that 

prevents lavish spending or ensuring that if a laptop does disappear, no sensitive information is lost. 

Finally, by fostering greater transparency and accountability, 

strong management control instills confidence in the Smithsonian, 

assuring its appropriators and donors that the Institution is a 

proper steward of its resources. 

I would be happy to answer any questions. 

[The statement and brief biography of A. Sprightley Ryan 

follow:] 


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PREVIOUS LAPSES IN GOVERNANCE

Mr. DICKS. All right. Mr. Goldstein, we appreciate the GAO work 

on Smithsonian management. As you know, the Committee was 

very concerned about the management lapses of the previous 

Smithsonian leadership. We acted to get their attention to see that 

reforms would be implemented. What do you think were some of 

the largest problems that resulted from the governance lapses the 

Smithsonian experienced? 

Mr. GOLDSTEIN. I think the largest lapse, as the Inspector General alludes to as well, is a lack of management control that allowed leadership at the Smithsonian to essentially do what they 

wished to do unimpeded by a normal course of control and integrity 

that in many instances allowed certain—— 

Mr. DICKS. Is this a lack of staffing? I mean, do they not have 

a strong—— 

Mr. GOLDSTEIN. No, it was a lack—— 

Mr. DICKS [continuing]. Comptroller or person who provides oversight on these expenditures of funds? 

Mr. GOLDSTEIN. It was not a lack of staffing per se, it was more 

of a lack of a willingness or desire or culture to achieve those objectives. That has happily been remedied. While they are still putting 

some of the internal controls and practices in place, they clearly 

have turned the corner and do feel that these are things that they 

are willing to do. They can use some additional training and probably some additional resources to ensure that the financial—— 

CONTROLS ON FUNDING PURPOSES

Mr. DICKS. What about spending money on the wrong purpose— 

if you are taking maintenance money and using it for capital 

projects? That is a misuse of the money, the way that Congress has 

provided the money. Is that not correct? 

Ms. RYAN. Yes, but we believe that—— 

Mr. DICKS. Is it just not understood what is the difference maintenance and capital projects? 

Ms. RYAN. There was certainly some lack of communication down 

to the people who obligated the money of the importance of that 

difference, but we are satisfied that to the extent the Institution 

implements our recommendations, which they have agreed to do, 

the likelihood of this happening again will be minimal. 

Mr. DICKS. Mr. Goldstein, you indicate that the Smithsonian has 

made some progress but nevertheless it still has a number of management challenges that have persisted over many years. What do 

you think are the top two or three management and governance 

problems which still persist? 

DETERIORATED FACILITIES

Mr. GOLDSTEIN. I think the biggest single challenge that the 

Smithsonian faces, which I believe the Smithsonian is certainly trying to remedy through its strategic planning process and through 

its upcoming campaign is to ensure that they have effective program in place to manage the deterioration of the facilities they 

have and to have an accountability for how they are going to provide effective leadership for the facility and its collections so the 


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public is able to view them in the years to come. That is still its 

greatest challenge. They have taken—both the Institution and the 

Board of Regents, I think, have taken this much more seriously 

than when we began issuing our reports on these topics back in 

2005, so to that extent, I think the culture is changing but they 

have some room to go still. 

Mr. DICKS. This is a problem we face across the government, I 

mean in terms of inadequate funding either in the President’s 

budget or from the Congress, whichever way you want to look at 

it, to deal with facilities and some of the issues related to collections. 

Mr. GOLDSTEIN. I appreciate that. 

Mr. DICKS. But you point these things out and remind us that 

we are still not where we need to be on some of these issues, and 

I just want to make it clear that part of it is because of a lack of 

resources. It is not evil intent here, it is that we do not have the 

money to do everything. But I do believe that this idea—and we 

face this in many other areas, such as the Park Service where we 

want to continue to expand and do more things while at the same 

time we are leaving behind some issues that have not been dealt 

with that need to be dealt with. It is a prioritizing of funding, I 

think. What else would you say are two or three things that are 

left to be done? 

REGENTS RELATIONSHIP WITH ADVISORY BOARDS

Mr. GOLDSTEIN. I do think because it came out both in their own 

recommendations as well as ours that getting a better handle on 

the relationship between the Board of Regents and its advisory 

boards is a really important endeavor. The new chair of the Board, 

as well as the Secretary have committed to doing this, but for a 

long time I think the museums did have somewhat of a disconnect 

from the Board. 

Mr. DICKS. Do they go in and brief the Board once a year or 

something like that about what they are doing? 

Mr. GOLDSTEIN. It is episodic. 

Mr. DICKS. It is not on a real schedule? 

Mr. GOLDSTEIN. That is correct. There is now a quarterly e-mail 

that comes from the chairman of the Board, and as I indicated, the 

Smithsonian has committed to trying to formalize better two-way 

communications. In our discussions with advisory board chairs for 

the preparation of our report today, we talked to a number of them 

and they felt that they had seen improvements but they still felt 

that a lot of the communication was one-way and that they were 

not getting the opportunities to provide the regents with critical information on museums. 

Mr. DICKS. So whose problem is that? Is it the regents or the 

management? 

Mr. GOLDSTEIN. It is principally the regents. It is the relationship between the regents themselves and the advisory boards and 

the museums because clearly the regents do need a better understanding of the problems of the specific museums. 

Mr. DICKS. How many times a year do the regents meet? 

Mr. GOLDSTEIN. They meet four times a year. 

Mr. DICKS. Four times a year. 


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Ms. RYAN. Plus committees. 

Mr. DICKS. Plus they have various committees. 

Mr. Simpson. 

Mr. SIMPSON. Thank you, Mr. Chairman. You asked pretty much 

everything, but let me—— 

Mr. DICKS. I left a few. 

FLEXIBILITY ON USE OF APPROPRIATIONS ACCOUNTS

Mr. SIMPSON. I was just proud that there was not anything about 

the previous Administration in the testimony. 

Let me ask a question, though. Capital projects versus maintenance dollars: how much flexibility is there to move money between 

capital projects and maintenance dollars? 

Ms. RYAN. In theory, there is none because they are separate appropriations accounts, in my understanding. 

Mr. SIMPSON. Is that a mistake? 

Ms. RYAN. Is that a mistake? 

Mr. SIMPSON. I guess the reason I am asking that, is there ever 

a time that a maintenance project becomes a capital project when 

it starts off as a maintenance project? 

Ms. RYAN. It could in theory, and I am not an expert in this area 

but I do not think it is a mistake to separate them because the 

money would always go to the latest emergency rather than longterm planning for maintenance, for example, but that is my nonexpert opinion. You would have to ask—— 

Mr. SIMPSON. See, I have always wondered if we as Members of 

Congress or as any legislative body, whatever we do, if we get too 

particular in our appropriations, saying you can only spend a dollar 

here or there or there, and try to stovepipe things too much instead 

of setting goals and visions, whether it is the Smithsonian or any 

other agency of the federal government. Instead, perhaps we should 

say this is what we expect and if we are going to appropriate this 

amount of money to you, we expect you to use your expertise to decide how you are going to achieve these goals. If we do not appropriate that much, what are you going to be able to do, et cetera, 

et cetera, and then hold you accountable the next year for what you 

achieved, and if you fail to achieve those goals, we want to know 

why. But sometimes we sit here and say you can only—you know, 

we will let you buy a phone system and we will let you buy something else over here and we will let you do these kinds of things 

and we try to manage with the appropriation dollars, and that is 

what kind of gets me between maintenance and capital projects in 

that if we have a vision of what we want the Smithsonian to become, we expect the Secretary, his staff and so forth to be able to 

use their vision to decide what to do in the area of maintenance 

and what to do in the area of capital projects instead of sitting 

back and going well, we got appropriated this much money for capital maintenance and we have got to do this project, oops, this 

turned into a maintenance project and oops, this turned into a capital project, how we are going to—you know, do they spend all their 

time trying to fit the dollars into this pie chart or whatever that 

we have created rather than doing their job. It is kind of an esoteric question. I do not know. 


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Ms. RYAN. Well, certainly you are the appropriators. You can do 

what you think is right. 

Mr. SIMPSON. Thank you for that. 

Go ahead, Mr. Chairman. 

Mr. DICKS. Well, the only thing I was going to say is, you have 

the President’s budget. The President’s budget lays out what the 

President thinks should be done. Obviously we make adjustments 

in that but we are basically operating off a document that has come 

from the Smithsonian and they with OMB have developed it, and 

it seems to me that they have a responsibility to spend the money 

on the things that have been agreed to between the President’s 

budget and Congress in terms of the appropriations. Not to do that 

is a mistake, and it is not legal. 

Mr. SIMPSON. That was not the question I asked. It is obvious 

that they have to spend the money according to how it is appropriated. I am suggesting—and this is not the first time. When I 

was the Speaker of the House in Idaho, we used to spend all the 

time on the appropriations committee deciding how the Department of Health and Welfare was going to spend every dollar, and 

we would debate whether they could buy a $14,000 phone system 

in the legislature. That is not our job. We do not know whether 

that is what they need or not. What we know is what we want the 

Department of Health and Welfare to become and the job we want 

them to do. We hire people to achieve that goal, and we ought to 

hold them accountable for it and we ought to be able to have a 

budget process where they come in and sit down and say okay, if 

you appropriate us $10 million this year, this is what we can 

achieve with it; if you appropriate us $12 million, this is what we 

will do; if you appropriate us $8 million, this is what we will do, 

and have goals that we can look at. Then next year when you come 

in for your appropriations, say we gave you $10 million, this is 

what you said you would do, did you do it, did you do more, did 

you do less, why, why not, instead of getting down and deciding 

what kind of phone system you can buy. The problem is, we understand the phone system. We do not understand all the rest of it, 

so we debate the phone system. And I just said that we need to 

be more flexible in what we allow agencies, not just the Smithsonian but all agencies, to do the job and hold the people we hire to 

do the job accountable for the job that they do, and when we say— 

I can see, in fact, I almost cannot see a time when it does not occur 

when we have people that we have hired to do the job sitting down 

there saying gee, is this a maintenance project, when does it become a capital project and what is the difference between—and we 

all know, if you are going to build a new building, that is a capital 

project. If I am going to do something else to the building that 

needs to be repaired, is that maintenance or when does that become capital and which fund should it be coming from? We are 

spending all our time—I am not saying we are spending all our 

time. Well, I guess I did say that. We are spending a lot of our time 

trying to fit the definitions rather than do the job is what bothers 

me, and I appreciate your testimony and I think that we need the 

Inspector General and the Government Accountability Office to 

oversee these things to make sure that money is being spent appropriately. 


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PERSONAL PROPERTY LOSS

It concerns me when you testify that $12 million of personal 

property has disappeared and is unaccounted for. What are we 

doing to find out where that $12 million of personal property is and 

what exactly it entails? What is it mostly? 

Ms. RYAN. It is a variety of things. As I said, it could be anything 

from a vehicle to a laptop, and as for what the Institution is doing 

to find the items that are missing, I do not know what they are 

doing now for the past items. I do know that their improved policies, and also by implementing our recommendations from our 

audit, which just came out this month, they will further reduce the 

number of missing items. It has gone down to I believe less than 

or around 1 percent of items accounted for, which is apparently, I 

am not an expert on this but apparently the industry standard and 

agency standard and they are going to be holding people more accountable for their individual items. 

Mr. SIMPSON. Are those mostly personal computers and that type 

of stuff? 

Ms. RYAN. Yes, and occasionally a vehicle. No telescopes that I 

know of. 

Mr. SIMPSON. That is pretty weird to have vehicles disappear. 

Mr. DICKS. In your statement you said—if you would yield a second? 

Mr. SIMPSON. Yes. 

Mr. DICKS. In your statement you said that there was resistance 

on the part of the managers to take personal responsibility. I know 

in the military they do this, and we still lose a lot of stuff in the 

military. But do you think that that is essential, that people who 

are the managers take responsibility for these items, at least—— 

MANAGEMENT CONTROLS AND ACCOUNTABILITY

Ms. RYAN. Take responsibility for enforcing accountability, yes, 

absolutely, that is part of the whole management control issue that 

is such a challenge. There has to be an ethos. It is the tone at the 

top. You will be held accountable for stuff that our office loses, and 

that makes it less likely it will get lost, I believe. 

Mr. DICKS. Let us give Mr. Hinchey a chance. 

Mr. HINCHEY. Well, thank you very much, Mr. Chairman, and 

thank you, both of you. It is a pleasure to be here with you and 

I just want to express my appreciation for what you are doing because I understand it is a pretty tough set of circumstances that 

you are engaged in and you are trying to make some significant 

progress, and I know that there are a number of issues that you 

have implemented that are important to the overall management 

of the Institution. I wonder if you could just tell us a little bit more 

specifically about some of the things that you have put into play 

and the ones that you think are the most significant reforms that 

you have brought about, what do you think they are going to do 

and how effective they are going to be. 

Mr. GOLDSTEIN. We have recommended and the Governance 

Committee at the Smithsonian itself had recommended a number 

of different things to put in place including changes to travel policies, to creating public forums to provide greater transparency of 


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the actions of the Board, to achieving better efforts at contracting, 

to understanding Smithsonian business ventures and trying to 

bring that into line more with normal operating procedures at 

Smithsonian, and many of these things, as my testimony indicates, 

they have done. There are three or four outstanding things that 

they have yet to complete but they are working on them. Those include finishing contracting policies by writing contracting manuals, 

some of which they have completed, a few of which they have not, 

and improving financial reporting and internal control procedures. 

That will take additional resources, probably staffing resources perhaps as well as training. The Board had been somewhat concerned 

about that issue. And then as I indicated earlier, trying to improve 

interactions between the Board of Regents and the advisory boards. 

PROGRESS IMPLEMENTING GOVERNANCE REFORMS

Mr. HINCHEY. Well, that is pretty good because a lot of progress 

is being made apparently. 

Mr. GOLDSTEIN. Yes, sir, quite a bit. 

Mr. HINCHEY. And there are still a few things that are still outstanding but nevertheless they are being worked on? 

Mr. GOLDSTEIN. That is correct, sir. 

Mr. HINCHEY. What do you think that this Committee should be 

doing in order to help? I know that there were a lot of things that 

this Committee did last year and expanded this budget in some 

very, very positive and very effective ways to make some big 

changes, and I wonder what you might think should be some of the 

focus of attention in the upcoming budget for the upcoming year? 

Mr. GOLDSTEIN. Well, I think the kind of oversight that you are 

conducting today is important, asking GAO and the Inspector General at the Smithsonian to continue doing reviews of selected areas 

to make sure that the kinds of things being put in place are actually being implemented. For instance, the report that we have 

issued today, where we update our recommendations so that we 

can see which things the Smithsonian has put into place are helpful. We have not gone in at Congress’ request at this point in time 

but certainly could to actually selectively evaluate whether or not 

these changes are actually making headway and whether they are 

being implemented. In other words, we have not gone in to take a 

sample, for instance, of travel vouchers or things like that. We 

have simply seen that the reforms are being put in place. But the 

next step would be over time to make sure through an auditing 

process that the things they said they were going to do they are 

actually doing and that they are doing well. 

Mr. HINCHEY. Well, that is good to hear, of course, and I am not 

surprised because I know that the chairman of this Committee has 

made some very significant progress in focusing attention on the 

needs that really need to be addressed and to be addressed effectively, and I am sure that we will continue to do it under his leadership as this process goes on in the context of this next budget 

process, so thanks. Thank you very much. 

Mr. GOLDSTEIN. Thank you. 


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CROSS-UNIT INITIATIVES

Mr. DICKS. Ms. Ryan, you have stressed the need for more crossunit initiatives for the Institution to enhance management and control of its many autonomous units. What specific kinds of cross-unit 

policies, practices or programs do you think are most urgently 

needed? 

Ms. RYAN. Well, as I noted in my testimony, financial reporting, 

project management, use of funds, and just from the asbestos report that came out from the independent consultant that the Institution hired to look at its asbestos program, even there they note 

that one of the challenges to having a better asbestos management 

program is not only a lack of complete documentation but limited 

communication among departments and inconsistent messages to 

employees, which comes from the lack of cross-unit or what I would 

call centralization at the Institution. Oh, and I am sorry, if I add 

one other really important area, it would be information technology 

management and security. 

INFORMATION TECHNOLOGY SECURITY

Mr. DICKS. Well, how would you rate the quality of the information technology at the Smithsonian? Is it uneven? Is it unit by unit 

or museum by museum? 

Ms. RYAN. It is both a central system—I think it is quite good 

overall but there is variation. Again, there is not a complete authority in one central office. The chief information officer does not 

necessarily have authority over all the various museums. For example, some museums have their own websites and that is terrific 

but that means that sometimes security issues are not handled 

consistently throughout the Institution. 

Mr. DICKS. Have there been problems with hackers coming in or 

loss of sensitive information? 

Ms. RYAN. Yes, there have been, but not recently. The ones I am 

most aware of, there was one four or five years ago and then another one maybe a year ago but it is not something I would want 

to discuss in detail here. I would be happy to brief your staff. 

CARE OF THE COLLECTIONS

Mr. DICKS. What about the care of the collections? Now, you have 

done some work on that. 

Ms. RYAN. Yes. 

Mr. DICKS. Tell us about that. Tell us the good news and the bad 

news, if you can. 

Ms. RYAN. Well, the good news is, there is a terrific new facility 

out at Pennsy Drive. I cannot remember the exact name of it but 

it is part of the huge storage complex of the Institution and that 

some of the museums have state-of-the-art collections controls and 

we assume conditions, although we have not audited that yet so I 

am not comfortable giving any sort of assessment there. For example, National Museum of the American Indian, a new building, has 

just amazing facilities for the collections. The bad news is, the security is not always what it should be. That is something that we 

have looked at multiple times. The inventories are not conducted 

as often as they should be, and unfortunately, both those two 


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issues are resource-related largely, although we believe they could 

do more if they approached the issues more systematically, you 

know, figuring out which parts to inventory or, for security, focusing on the high-risk items. You want to spend more on the Hope 

Diamond than you do on, arachnid samples, I suppose. And then 

the final issue, the condition of the collections, we are starting to 

look into that now. 

I will be happy to brief you as our audit progresses but we are 

especially concerned about storage. Again, in the asbestos report 

that was issued by the independent consultant, they talk about 

building 16 at Garber, which has restricted access because a lot of 

the collections have asbestos-containing material. They are enclosed in a protective structure, but that structure was built in the 

early 1980s so it is unclear how viable that still is, and there are 

other places as well that have contaminants that are going to have 

to be dealt with. 

Mr. DICKS. Is there a systematic program to do that? 

Ms. RYAN. I am not aware. I think the Secretary would be a better person to answer that. 

Mr. DICKS. We are going to ask him that. 

Mr. Simpson. 

TRAVEL POLICY AND AUDITS

Mr. SIMPSON. Just one other question. You mentioned travel audits and that type of thing. Is there any evidence that any of that 

has been misused funds or anything like that or is it a bookkeeping 

issue? 

Mr. GOLDSTEIN. We have not actually done those audits at this 

point so it would not be possible for me to tell you. 

Ms. RYAN. If I may, we have—— 

Mr. DICKS. There was some history of lavish—— 

Mr. GOLDSTEIN. But that is going back—— 

Mr. DICKS [continuing]. Activities in the previous Administration. 

Mr. GOLDSTEIN. Clearly there were issues with how travel funds 

were used under the previous Secretary. We have not since that 

time gone back in to look. 

Ms. RYAN. Our office has, and we have not found any major problems. 

Mr. DICKS. What do you think of the new travel policy? 

Ms. RYAN. It is good. It is much better, and there is a much better—— 

Mr. DICKS. And it is clear and understandable so that people who 

are traveling know what they can or cannot do? 

Ms. RYAN. I believe so. I am sure there are people who disagree 

but I think more importantly, the culture is changing. People understand and accept that yes, they have to be accountable for how 

they are spending the Institution’s money, and that has been really 

good. 

Mr. DICKS. Thanks for all you guys do. 

Mr. GOLDSTEIN. Thank you very much. 

Mr. DICKS. Mr. Hinchey, any follow-up? 


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INTERACTION BETWEEN SMITHSONIAN AND GAO

Mr. HINCHEY. Just briefly. The interaction between the Smithsonian and the GAO and sort of the oversight operations there, can 

you give us some insight as to how effectively that operation has 

been and what might be done to make it stronger and more effective? 

Mr. GOLDSTEIN. I have been doing audits of the Smithsonian for 

about six years now. As you know, we issued a number of important reports. We have always had extremely good relationships 

with the Smithsonian, with their Office of Governmental Affairs as 

well as with the Secretary’s office. We have been able to obtain all 

the information that we need, and they have been very cooperative 

with us. They have always listened very carefully to what we have 

had to say, and have always accepted our recommendations and 

done pretty well in implementing them, so I think we have a very 

good relationship. It is not always the case with all the—you know, 

no one likes an auditor, but we have a good relationship with them. 

They have been very helpful to us in our work. 

MAINTENANCE BACKLOG

Mr. HINCHEY. That is great. I am glad to hear that. I understand 

that there is a maintenance backlog that is pretty substantial, 

about $2 billion. 

Mr. GOLDSTEIN. About 2.5, the last time we looked at it. 

Mr. HINCHEY. Can you give us some sense of priority as to what 

are some of the things that needed to be addressed most? 

Mr. GOLDSTEIN. There are a lot of major projects in really almost 

all of the museums. As I say, it has been two years since we have 

looked at it so I would hesitate to go into any detail, but the problems that they have largely remain and they have a capital plan 

that is in place that sort of incorporates both of their federal and 

their trust funds these days, which is a recommendation that we 

made several years ago so you could see transparently across all 

their museums the kinds of things that need to be fixed and the 

kinds of programs that they have, and they have a lot to do. 

Mr. HINCHEY. A pretty uniform situation across the board? 

Mr. GOLDSTEIN. Most of the museums have some—these are old 

museums. Many of them have been around for a long time and 

there are a lot of issues that need resolving. 

Mr. HINCHEY. Well, thanks very much. 

Mr. DICKS. All right. We appreciate your work and we thank you 

for your testimony here today and we look forward to continuing 

working with you. 

Mr. GOLDSTEIN. Thank you. 

Ms. RYAN. Thank you. 

TESTIMONY OF SMITHSONIAN SECRETARY CLOUGH

Mr. DICKS. Now we are going to have Dr. Wayne Clough, Secretary of the Smithsonian, and this is his first testimony, I believe, 

before our Committee. We are going to put your bio and your entire 

statement in the record. Please proceed as you wish. 

Mr. CLOUGH. Thank you. Thank you, Mr. Chairman, and thanks 

to the Committee for this opportunity to meet with you today and 


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talk about the Smithsonian, an institution that is a great American 

institution and one that we all love and admire. 

I want you to know that we are committed at the Smithsonian 

in what we would call a new era of transparency and openness and 

to the sharing of information and also to communicating the appropriate values to all of our employees, and a big part of that is discipline and understanding values. 

STRATEGIC PLAN

We have a new strategic plan. We think that is a very important 

one that was done in a historically different way than in the past 

and that we engage all elements of the Smithsonian as well as 

bring in outside experts to participate with us on that plan, and 

it in fact calls for us to work across disciplines instead of staying 

in our silos and particularly to use the latest technology to reach 

the American people in ways that we have not done in the past. 

In doing so, we also hope to extend our reach, and we have been 

having discussions with the Department of Education to help address the issues that face the K–12 system in our country. And to 

that end, we have been fortunate to receive a gift from one of our 

regents to hire a director of education for the Smithsonian to coordinate our efforts in that area. 

The new vision of our strategic plan calls on us to shape the future by preserving our heritage, discovering new knowledge and 

sharing our resources with the Nation and the world. Our strategic 

plan organizes our activities and focuses them under four areas, 

our grand challenges: One, unlocking the mysteries of the universe, 

which relates to the great work we do in astronomy and astrophysics; second, understanding and sustaining a biodiverse planet; 

third, valuing world cultures; and finally, understanding the American experience, what does it mean to be an American. These are 

areas of focus to help us identify where we want to track our efforts 

in the future and best utilize the resources that we do have. We 

also reaffirm the core values of integrity, responsibility and organizational excellence and so there was a major effort also put on 

what we call enabling mission and that is doing our work right 

with discipline. That was all part of the process. 

RECENT ACCOMPLISHMENTS

For many reasons, we are optimistic about the future of the 

Smithsonian. For example, last year our folks worked very hard 

and opened 90 new exhibits that were remarkable in their range 

and diversity. We had nearly 30 million visits at the Smithsonian 

last year, six million more than the year before. I think we serve 

the American public particularly well in times of economic need in 

a way that few others do. The National Museum of American History, which was opened a year ago after being closed for two years, 

has seen already more than 4.6 million visitors, a 40 percent increase in visitation at this museum over past years. We have also 

had two free educational online conferences, webinars, in the past 

year, one on Lincoln and one on climate change. Experts from 

across the Smithsonian took part and with teachers and students 

all across the Nation and indeed the world. They could log on and 

participate. 


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Mr. DICKS. Is that on your website regarding climate change and 

we can go take a look at that? 

Mr. CLOUGH. That is correct, and it is archived and you can see 

all of our experts from different parts of the Smithsonian speaking 

to what they know about the topic. 

Mr. SIMPSON. What about the one on Lincoln? 

Mr. CLOUGH. The Lincoln webinar is also there as well. 

So nearly 11,000 people participated in all 50 States and more 

than 180 countries. Hundreds of universities joined us as well as 

NGOs, nonprofit organizations and, importantly, a number of Girl 

Scout troops. 

Mr. DICKS. That is very important. 

EDUCATIONAL OUTREACH

Mr. CLOUGH. And even my small, rural hometown of Douglas, 

Georgia, in the southern part of that State participated, which I 

am very proud of. 

In science, art, history, and culture we have much to contribute 

and we are finding new ways to do so. We are using social media 

to tell the Smithsonian stories and to connect with audiences we 

have not connected with. We know we do not connect well with certain demographics and we are working on that. So we have used 

websites and blog posts, and since October 1st we have had more 

than 130,000 video views on Youtube, 34,000 Facebook fans and 

16,000 Twitter followers where we rank, incidentally, as one of the 

top five most visited museum sites in the world. We were even the 

most popular blog in the world in a story last September when our 

scientists who study mammals that are endangered discovered a 

giant breed of rat in Papua, New Guinea, and this rat actually 

turned out to be not any more handsome than a normal rat but it 

was quite engaging because it enjoyed being petted and it is a vegetarian. We actually have this specimen, but I decided not to bring 

it along today. 

Mr. DICKS. Thank you for that. We appreciate it. 

GOVERNANCE REFORM IMPLEMENTATION

Mr. CLOUGH. We remain committed of course to the highest governance standards, and as you have heard, we are working hard 

with the GAO and with our IG to get at that issue and working 

with our regents, and we are proud of the fact that the GAO report 

had no further findings and that we have made progress on 39 of 

the 42 issues that we had, and we are committed to finishing that 

off. 

We also appreciate the good work done by our Inspector General 

and we are cooperating with her to implement the reforms in the 

various areas that she has reviewed so accurately, I think, for you 

today, concerns expressed by both of them that we are working 

hard to address. And in a larger approach to this, in addition to 

addressing point by point by point, which we will do, we are undertaking a best practices study. We should have that under contract 

at the beginning of the year so that we look at the entirety of the 

Smithsonian, and the issue of how we work together in this organization or do not work together and try to find ways not only to do 


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our work correctly but also to use the money more efficiently that 

we have. 

Mr. DICKS. Universities are doing this too. 

Mr. CLOUGH. Yes. 

Mr. DICKS. They have had this same problem. You have been an 

expert as head of Georgia Tech and provost at the University of 

Washington. They are not working between departments. I mean, 

we had a long, hard struggle with the intelligence community getting them to do this, and I just think the more interdisciplinary efforts you can have makes a lot of sense and utilizes all this talent 

you have. 

Mr. CLOUGH. It does, and it creates what I call opportunity space 

where there are things we can do when we join our forces together 

that we cannot do if we stay apart, and so we are excited about 

that. That is what our plan certainly calls for, and it really makes 

a lot of difference in addressing some of the discipline issues that 

we heard about earlier. 

So our Board of Regents of course is aggressive about their reform agenda and joining forces with the management to try to get 

all those done, and I do believe the Regents are working hard on 

their end of these issues. They have held historically their first two 

public meetings, which were widely seen on webcast and well received, and in addition they are working hard on this issue of 

working with the advisory boards that was mentioned. 

EFFICIENT USE OF FUNDING

We are working hard too to get more efficient about the dollars 

that we receive, not only from the federal government but from the 

many private supporters that we have for the Smithsonian. The 

federal funding provided in fiscal year 2010 for the facilities capital 

and facilities maintenance will allow us to improve the condition of 

the Smithsonian’s facilities, to design projects and make progress 

towards industry-recognized standards for facilities revitalization 

and facilities maintenance. And of course, we did receive some 

funding, $25 million in funding from the Recovery Act, and we 

have obligated $22 million of that already, or 89 percent, with holding back a little bit for reserve for contingencies and we have created the jobs that we expected in that case. You may have seen the 

scaffolding on the grand old Arts and Industries Building next to 

the castle building that stimulus funding made possible. That is 

the first effort to begin to restore that building, and with the federal funds we have with fiscal year 2010 we are beginning to work 

on the roof, which is a very complicated old roof structure, and repairing the masonry and working on some of the hazardous materials that are inside of this building. We developed a comprehensive program also, we think, for how this building might be used 

for the future. 

I certainly want to thank the Committee for the additional $2 

million provided in the fiscal year 2010 budget to address the very 

important collections management issues for the Smithsonian, and 

those funds will go towards improved storage and additional conservation, and of course, we are continuing to grapple with the continued erosion that the chairman referred to of our curatorial staff 

that has occurred over the last decade, partly because of unfunded 


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pay increases. I do also want to thank the Committee for the flexibility you provided by allowing the availability of the fiscal year 

2010 salaries and expenses appropriations an extra year. 

Again, the Smithsonian is entering a new era. We know we can 

help our Nation and the world face many of the grand challenges 

that lie ahead in science, education and issues of national identity. 

We uniquely have the capacity through the collective impact of our 

museums and science centers to tell the story of America, all of its 

hopes, it struggles, its triumphs, its contradictions and its courage. 

In today’s challenging time, we think our mission is more important than ever before. We look forward to the future and working 

with this Committee and with all our stakeholders to make the 

Smithsonian the great institution it should be for the American 

people. Thank you again for the opportunity to be here. 

And finally, I know that you are very busy with all the work you 

have up here. Mr. Chairman, you were very generous to have your 

committee come down to the Smithsonian to see many of our facilities. We thank you for that visit. Our staff very much appreciated 

that visit. But we know since you are busy, we thought today we 

would bring the Smithsonian to you, and so what you have is an 

example of what we are doing with our digitization efforts, and so 

many of the Smithsonian treasures are right here captured on this 

thumb drive. It tells you a lot about our treasures that we digitized 

and we are busy using the digitization money to do more of this. 

In addition, it shows you all the different websites that you want 

to go to. You can even hear sounds from the zoo animals and 

download them onto your cell phone. 

[The statement and brief biography of G. Wayne Clough follow:] 


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Mr. DICKS. We will do it. Well, thank you, and again, I want to 

say I personally appreciate your statement today and your energy 

and your enthusiasm and your new plan. I think they are terrific 

and I just see the Smithsonian doing better and better. 

ASBESTOS SITUATION IN BUILDINGS

Now, we have a few things we want to talk about. I want to ask 

you about the asbestos situation that was mentioned earlier at the 

Smithsonian and the article in the Washington Post today. As you 

know, many of us on the Hill are very concerned about potential 

asbestos dangers to workers and to the public. With the millions 

of visitors you receive and the hundreds of workers who are routinely modifying buildings for exhibits, it is essential that the 

Smithsonian take its asbestos situation very seriously. The consultant’s report indicates that there continues to be record-keeping and 

training problems on this issue. The lack of employee training 

seems to be a common theme even in the business and financial 

system reviews we have examined. Please tell us about the asbestos situation, especially what you are doing to update records, test 

facilities and train employees on proper asbestos handling. 

Mr. CLOUGH. Thank you. If you remember, we had an incident 

regarding a particular employee a while back and it triggered a reevaluation of our asbestos programs. My approach to that, working 

with our staff, was to say we will look at this in its largest sense. 

We want to approach this by bringing in an outside company that 

would review our policies and procedures overall to see if we have 

the right context, right framework to do the work and then secondly, we want to go down to where the rubber meets the road 

with our employees and let them tell us what they think as to 

whether or not they are really getting the training that we say we 

are going to deliver. But in the meantime, in addition to undertaking that study with an independent consultant, we undertook a 

number of activities ourselves. For example, we are reassessing the 

entire mapping of asbestos-containing materials, ACMs, as they are 

called, over the entire Smithsonian and it was recommended, for 

example, in the report that we do that every three years. We will 

do that. That is underway as we speak. Eight hundred people this 

year did receive asbestos training and we went through a screening 

process for anyone who felt they may have a health problem. That 

process continues but we think we are fully on track in that regard. 

The independent study that we commissioned, I asked that that 

report directly to my office, not to go through our safety office, and 

I think our safety office has many competent people but I want it 

to come directly to me, not to the safety office. I wanted them to 

be able to tell us if they felt we had problems in our safety office, 

and so that report now has been issued. We are reassured in many 

ways by that report. It does say that our overall framework and 

our overall policies are good. They meet the test of federal standards, which as they say are much better and much higher than you 

would find in most commercial applications. However, they did note 

a number of cases where we can improve in record keeping and in 

training and we are glad to hear that. We want to be a learning 

organization. This information we take to heart. So as soon as we 

got the report, we digested that report very briefly. We issued an 


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e-mail to all of the Smithsonian employees saying that we had the 

report, it is posted on our website so any employee can read it, and 

we—— 

Mr. DICKS. I think that is terrific. 

Mr. CLOUGH. And we delegated to the head of facilities the task 

of taking each and every one of those recommendations from the 

safety consultant and getting back to me in February and saying 

exactly how we are going to address each one of those things. So 

we think there was a reassuring message in the report but at the 

same time we need to get more serious about how we document, 

how we record, and as the Inspector General has said, to get the 

Smithsonian to act as a whole on these issues that pervade the 

whole institution as opposed to treating them separately. 

Mr. DICKS. Now, with respect to the settlement reported today in 

the Washington Post, do you expect that there are other employees 

who also worked in the same kind of conditions and who may be 

seeking compensation? 

Mr. CLOUGH. It could happen, and we do not know where that 

will actually go because we offered every employee at the Smithsonian first an opportunity to have a one-on-one session with an expert on asbestos issues in terms of their health, their physical 

health, and as I understand it, I think about 60 people took us up 

on that, and then we offered them if they wanted to go further a 

full health screening on their health conditions, and I think about 

50 people have undertaken that and we simply have not heard the 

outcome from that. There may be some who do feel that they have 

issues and obviously we will stand up to that test. 

Mr. DICKS. And so we do not know yet what the result of the 

medical testing is. Is that correct? 

Mr. CLOUGH. To date, we have not heard anything back from 

anyone suggesting a problem but we may. As you know, asbestos 

is something that takes a while to wind out in terms of those 

issues. 

SUITLAND FACILITY PROBLEMS

Mr. DICKS. Now, we understand that the Garber facility, which 

our staff visited earlier this week, has a major asbestos problem. 

The asbestos in the storage facilities makes use of artifacts difficult 

and expensive. How large is this problem and what are you going 

to do about it and do we need to provide resources for that? 

Mr. CLOUGH. It is a serious issue. This area is called the 

Suitland facility, the collections center, has within it some incredible state-of-the-art facilities which the federal government has 

helped us build, particularly to deal with assets and artifacts that 

require special care, for example, fish specimens and birds and all 

these things that you have to keep in alcohol, that kind of thing. 

We have moved all that out there so we have had tremendous improvement in collections care on that side. The Garber part of the 

facility is the oldest part. It was an old warehouse area and the 

Smithsonian has been using these warehouses to store things and 

it was discovered after some time that there was asbestos in this 

area and so they are isolated, and if you walk in you will see plastic everywhere to keep the asbestos from getting on the artifacts 

but it is not a good facility. Ultimately we would like to get out of 


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Garber entirely. We would like to tear down all those old warehouses, they are far from state-of-the-art, and get out of Garber. 

Now, we were able to move a significant amount of the collections that were there into the new Pennsy facility that the Inspector General referred to. This is a state-of-the-art facility in Landover, Maryland, in sort of a light industrial area. It was done I 

think very cost-effectively and provided us with places to move 

some of the artifacts. Now, the Air and Space Museum has a large 

new facility and we will move some of that out to the Dulles facility 

or so-called Hazy Museum in their construction that they are doing 

now. So we are doing it step by step. Ultimately we need to tear 

all that down and get out of the Garber facility. 

Mr. DICKS. And that is a resource issue, right? 

Mr. CLOUGH. Yes, it is. 

Mr. DICKS. You have to have the money in order to do that. 

Mr. CLOUGH. Yes, it is. 

Mr. DICKS. Okay. So let us know about that. 

Mr. Simpson. 

Mr. SIMPSON. Thank you for being here today. I appreciate the 

job that you are doing. Your five-year plan requires a base funding 

increase of between 16 and 32 percent. 

Mr. CLOUGH. Yes. 

FUND RAISING BY SMITHSONIAN

Mr. SIMPSON. Tell me about the—while that will not all be federal funding, a portion of it will be, is that an attainable goal? How 

is your fundraising going during these economic times and contributions to the Smithsonian and so forth during these times? 

Mr. CLOUGH. That is a very good question. We are fortunate at 

the Smithsonian that people love the place and even though there 

was a point back last December when we wondered if we would 

meet what we set as a goal before the economy kind of went south, 

which is $120 million in private funding for this last year, we 

ended the year with $126 million. We were one of the few nonprofits I think in the country that made its goal, in fact exceeded 

its goal. We had a wonderful array of gifts to help us with a series 

of issues and to help us do more digitization, more educational outreach, in some cases even in collections to help us there. So we did 

well this year. Now, can we maintain it? We are actually setting 

a goal with the regents now that will be even higher than that. We 

think we need to ramp up what we are doing. 

In terms of resourcing the plan, I think the issue there is that 

we looked at it from the point of view of some flexibility in the 

goals. As you mentioned, it goes from 16 to 32 percent. So we could 

do what we need to do if we got a 16 percent increase in total budget but we could do a lot more if we got 32 percent, and some of 

that depends on how good we are at fundraising. Some of it depends on what we will do in terms of, for example, being more aggressive about getting grants and contracts fulfilled from foundations and even from other government agencies for that matter. So 

we have a series of ways to do it. Finally, also redirection. We are 

doing that as we speak at the Smithsonian. We are taking resources that were spent in some areas and we are redirecting them 

to get the significant plan objectives done, so we will do a certain 


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amount of redirection to accomplish that. The increase in revenue 

that we are looking for would be coming from roughly 50 percent 

on the federal side and 50 percent on the private side, and that differs from our present ratio, which is more like 65/35, 65 federal. 

We are going to try to become more self-reliant. We are going to 

work hard to increase our own resources so we can get our work 

done. We speak to the federal side of it by saying these are the essential things we think the federal government should support. We 

are open every day of the year but one. We have 30 million visitors. 

We think that the federal government should support us with revitalization and maintenance money to address this amazing traffic 

that we get for the Smithsonian. 

VISITATION INCREASE

Mr. SIMPSON. It is kind of stunning that the amount of traffic increased by six million. What percentage was that? 

Mr. CLOUGH. It went from 24 million to 30 million. 

Mr. SIMPSON. That is a huge increase at a time when the economy is really—I do not know if it is because the economy is down 

and people are starting to stay home and learn about America 

rather than travel abroad and those kinds of things. That is a stunning increase, and even though it might be free to go to the Smithsonian, it still takes money to come here. 

Mr. DICKS. And also the exhibits. The new things are really attractive, and it just shows you what you can do if you have a highquality exhibit that people can go in and interact with. 

Mr. CLOUGH. And we are working with the young people before 

they come to the Smithsonian to use the Web and become educated 

about what they are going to see. We are working with teachers. 

We call it the learning journey. And so they can actually work with 

a curator or one of our guides before they actually get here. 

NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE

Now, I will say one quick thing on the funding side. Some of that 

new funding relates to the National Museum of African American 

History and Culture. That is a big job that we have been asked to 

do and we welcome it. It is a $500 million proposition. We agreed 

as an institution to raise half of that and the federal government 

agreed to put up $250 million. This past year one of the slight 

problems was that in our revitalization budget, we had $125 million allocated to us but we were told to take $20 million out of that 

and use it for this new museum and we need, we think, to make 

that a fairly bright line that we do not want to punish the rest of 

the Institution to build the new museum. 

Mr. DICKS. Is that going to be an issue? There is talk of a Latino 

museum now. There are a lot of different groups, organizations, et 

cetera, so the American people would like to see the expansion of 

the Smithsonian. Are we in danger of expanding so fast that we endanger the rest of the Smithsonian with our funding? 

NATIONAL MUSEUM OF THE AMERICAN LATINO

Mr. CLOUGH. I think it is and it is something that we all need 

to think about carefully because none of us want to be in a situaVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00074 Fmt 6602 Sfmt 6602 E:\HR\OC\A504P2.XXX A504P2

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tion where we have these wonderful assets and we cannot maintain 

them. I think we have to be careful about that. I do believe that 

the plan that was laid out, if we can adhere to it, is a workable 

plan to get this new museum built, for example, and we appropriately maintain it. The Latino Commission is looking at whether 

there be such a museum and should the Smithsonian run it, and 

if so, where should it be located, and so we have made our resources available to them in terms of our expertise to understand 

what it takes to build a museum but that museum probably is 

eight to ten years away. It takes a long time to build a museum. 

DIGITIZING SMITHSONIAN INFORMATION

Mr. SIMPSON. One of the Smithsonian’s initiatives is to digitize 

information on the 100 million-plus items in its collection. Does the 

Smithsonian have the technology currently to do that? 

Mr. CLOUGH. I think we have a lot of the expertise. We do not 

quite have the staff that we need nor do we have the equipment 

that we want to use because I have tried to emphasize to our folks, 

if you look at our plan, it is a five-year plan, this is a massive task 

when you have 137 million specimens and artifacts and works of 

art, and it will take years actually to get this done, to get the complete job done. What I want our folks to be thinking about is what 

will the technology be five years from now in digitization. We do 

not want to do something that technology five years from now cannot read and use and so we need to think way ahead about where 

the technology gain will be, and in addition, as opposed to our 

great friends at the Library of Congress, we have mostly three-dimensional objects to digitize and we want kids when they are looking at some fantastic beetle or something or studying the biodiversity issues, want them to be able to take that image and turn it 

around, see it in three dimensions, not just see a flat image of it, 

so our task now is to get out ahead of the technology wave so that 

when we digitize, we truly have something that is engaging, people 

use and they can learn from. 

Mr. DICKS. Do you have a committee of people like from Microsoft or other great companies, Google, that advise you on where 

technology is going to be? Because it does change very rapidly. 

Mr. CLOUGH. It is changing very rapidly, and we are going to set 

up a committee but we did last year something we called Smithsonian 2.0. We invited all the folks that were experts on the Web, 

there were 30 of them that came, mostly young people, who were 

experts on using the Web and took them back into our collections 

and we showed them all these wonderful things in the collections 

and we said how can get these things out, and I attended the readout session. I heard 30 people tell me 30 very interesting stories 

about what we should be thinking about doing to engage the young 

generation that do not read newspapers and use iPhones and so 

forth. 

Mr. DICKS. Do you have somebody that works for you that is an 

expert on these matters? 

Mr. CLOUGH. Absolutely, and we have had two large-scale institutional efforts that have looked at Web access and looked at 

digitization. So we have an agreement, and as the Inspector General and Mark indicated, getting the Smithsonian to work as a 


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whole on this, because we want to have the same standards. When 

the American people come to the Smithsonian, we do not want 

them to have to go through: What museum am I supposed to go 

to to get this? If you want to study Teddy Roosevelt, we have 

things about Teddy Roosevelt in six different museums. We do not 

want you to have to go through that. We want you to be able to 

just find it on the Web about Teddy Roosevelt and bingo, you get 

it all. We aggregate what comes out so everything we have in the 

Smithsonian about Teddy Roosevelt is in one place for you. And so 

Web access and making it easy for our visitors is a big challenge 

for us. 

Microsoft has been generous with us. They just gave us a very 

nice donation of equipment and a beautiful new technology called 

a surface technology that we will be using in our visitors center, 

and I visited Google, I visited Cisco. They both are very interested 

in working with the Smithsonian. 

PRIVATE SECTOR CONTRIBUTIONS

Mr. SIMPSON. Let me ask just one other question before we let 

Maurice ask some things. How much of your contributions do you 

get from the private sector to support the Smithsonian? How much 

of them are large contributions from major contributors and how 

much of them are small contributions from American citizens? 

Mr. CLOUGH. Well, we get both kinds, and just recently, for ex- ample, the Gates Foundation gave us a $10 million grant for the 

African American History and Culture Museum. But we do have 

what we call subscribing memberships and we get a significant 

amount of funding, not nearly the big funding, but the nice thing 

about the subscribing memberships is that it is discretionary 

money. In other words, it allows us to make choices, and the Gates 

Foundation, wonderful gift, but they told us exactly what to do 

with it, whereas the subscribing memberships allow us to address 

problems and move around a little bit, so it may not be a big 

amount of money but it is money that allows us to move around 

a little bit and make decisions on our own. 

Mr. DICKS. Maurice. 

Mr. HINCHEY. Thanks, Mr. Chairman. 

Mr. CLOUGH. I should say 2,000 Americans make donations, 

small donations. 

Mr. SIMPSON. Do you find that number goes up or has gone up 

as we have digitized the collection and made it more widely known 

to the American citizens? 

Mr. CLOUGH. We do not know quite the answer to that yet but 

we are tracking it because we are just getting very, very serious 

about this digitization and then making it available to people. 

Mr. HINCHEY. Well, thank you very much. I am absolutely fascinated by what you have had to say and the way that you have 

answered the questions that have been put to you. It just generates 

more and more respect for you and what you are doing and a deep 

amount of appreciation. I very much appreciate your insight and 

the initiatives that you are taking based upon that, and I know 

that that will have a lot of positive effects on people all across this 

country. So all of this is very, very important and I am absolutely 

intrigued by those four things that you put forward with which you 


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are focusing more than 50 percent of the funding, and I think that 

so much of the operation that you are engaged in is very entertaining and very interesting but it is also very educational. 

Mr. CLOUGH. Yes, it is. 

Mr. HINCHEY. And the focus of attention in these four issues is 

going to I think accelerate that education even more and more, and 

I think they are critically important. Unlocking the mysteries of 

the universe, that is fascinating, and understanding and securing 

a biodiverse planet, all of these things are very critically important 

politically to this country right now too, and the interaction of this 

country with other countries around the world is critically important in so many ways and the understanding of the population of 

all that is American culture also is critically important. I think 

that what you are doing here is a great contribution to that. 

Mr. CLOUGH. Thank you. 

Mr. HINCHEY. I wonder if you might be interested in talking a 

little bit more about that, about any of those points and what you 

think is going to happen and how that is going to flow out. 

EDUCATION AND SCIENCE

Mr. CLOUGH. Thank you. Well, first I would like to say thank you 

for your kind remarks, but I have got some folks with me here and 

there are another 5,000 at the Smithsonian who make the place 

work and they are wonderful people. They are passionate about 

what they do and so I am successful because they are successful, 

and my job is to make sure they can do their job. 

The grand challenges we think, it was an interesting process because we got lots of people together who had never met each other 

before in many cases. Again, as our IG indicated, we have 1,000 

people that work in Cambridge, Massachusetts, on astrophysics 

and then we have 400 people working in Panama looking at tropical rainforest issues. Our tropical research institute has been there 

since the construction of the Panama Canal. They work diligently 

with the Panamanian government today. And we serve the needs 

of about 2,000 visiting scholars who come to see us because they 

want to learn how we do biodiversity experimentation and observation. That has been spread around the world, incidentally, in something called the Smithsonian Institution Global Earth Observatory 

where we have relationships with 30 countries and we observe forests all over the world to look at issues like climate change and 

these kinds of challenges. So those kind of things are very important. 

But bringing these people together was a significant step because 

they could talk about what they are doing and begin to see how 

their efforts could be joined in some way, and as the chairman indicated, get more out of it than just the sum of the parts. It would 

be more than the sum of our parts. And so as we went through this 

process, it was as if you were focusing a microscope, and maybe 

that was not a good choice since the Inspector General said we 

might have lost one. But at any rate, it got sharper and sharper 

and sharper and so we ended up with these four areas and we are 

going to operationalize that by creating centers in each one of those 

areas that will bring together, aggregate the work of our units and 

our museums and our science centers towards these ends and get 


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us to focus our funding. The centers will not be large administrative units, they will be very small but they will be facilitating units 

and so we think we are going to get private funding to help us get 

started with that. For example, we can take the work of our museums, like the National Portrait Gallery, the American Art Museum, 

the American History Museum, the National Postal Museum, the 

new Museum on African American History and Culture, the American Indian Museum, and aggregate those things to talk about 

what does it mean to be an American, which is becoming ever more 

important as our country becomes more diverse. What is the glue 

that makes us stick. And so there are these things like immigration. Many people, except for the first people, immigrated here and 

were looking for opportunity, and after our folks got here they had 

to struggle, so social justice, those kinds of things. And technology 

pervades America. What is it about us that makes us innovative? 

Understanding these things is very important. We think these are 

the exciting places to do business that we have not been able to get 

at before. 

CLIMATE CHANGE

Mr. HINCHEY. Absolutely. I fully agree with you. I am really excited about what you are doing. Now, you mentioned the climate 

change and that is something that is critically important to us as 

well as to you and it is something that really has to be dealt with. 

I wonder if the interaction that you are talking about with regard 

to other countries in the context of climate change involves in any 

way such countries as China and Australia, for example. 

Mr. CLOUGH. Yes, it does, particularly China. We have the 

Smithsonian Global Earth Observatory. We have four of those in 

China. We also have worked with them with our National Zoo 

through their panda initiative. We do work for them on habitat 

protection, and habitat obviously relates to climate change and the 

issues climate change will bring, which as you know will vary locally considerably, and so we are working closely with China. We 

work with Australia. We work with Brazil because they have 

rainforest issues that are different than those in Panama, different 

kinds of rainforest, and as you know, the earth is a wonderful, 

largely un-understood mechanism and so we hope we are contributing to better understanding of the big picture that drives the climate change and what its effects will be. 

Mr. HINCHEY. Well, I think that contribution is absolutely essential and I hope that you continue to be very successful in that and 

the other things that you are doing. I appreciate it very much. 

Mr. DICKS. And some of the collections they have already help 

us understand the history of the planet and the changes that have 

occurred. There have been a lot of times in the past where we have 

had dramatic changes in climate. We have had a 10,000-year period of time here where it has been relatively stable. That is not 

a given. And so, you know, there is a lot of history there and also 

looking into the future is a big thing. 

Mr. HINCHEY. Absolutely. 


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FORMER SMITHSONIAN BUISNESS VENTURES OFFICE

Mr. DICKS. Let me ask a couple quick ones. The management 

problems that occurred several years ago at the former Smithsonian Business Ventures were some of the most widely publicized 

and most alarming. Can you tell us how the Smithsonian enterprises has changed the approaches your institution takes regarding 

managing moneymaking and corporate business arrangements? 

Mr. CLOUGH. Yes. Well, they have been pulled more inside the 

Smithsonian so they are part of the team in many ways and so, for 

example, the Regents’ oversight committee is now bringing the unit 

within the oversight of the Regents. They really did not have that 

oversight before. We have an entirely new staff there. All the leaders from the previous enterprise are gone and so we have new people there who I think are much more attuned to what we need to 

accomplish as an institution. So there is more oversight, there is 

more connection. Tom Ott, who is the CEO, if you will, of that unit 

sits in my cabinet so he is involved with all of the units of the 

Smithsonian so they are seen as part of the team as opposed to sort 

of someone outside there operating almost independently. 

Mr. DICKS. How significant is this? What kind of dollars are we 

talking about? 

Mr. CLOUGH. Well, they generate in terms of income that comes 

to the institution that we can use, this past year they generated 

$27 million. It is a significant sum of money. 

ROLE OF REGENTS VERSUS ROLE OF SECRETARY

Mr. DICKS. The GAO governance recommendations analysis focuses on the governance role of the regents. Can you help the Committee better understand how you see the role of the regents versus 

the role that you play at setting policy and managing the Institution? 

Mr. CLOUGH. Well, I think it is one of those things where you 

have to strike a balance and I have to work closely with the chair 

and the committee chairs of the regents, and fortunately we have 

I think an excellent set of committed regents at this point, and as 

you know, Patty Stonesifer from your area, she is now the chair, 

and Patty and I talk once a week at least or more. In addition, they 

have nine committees now. They used to have five. They have nine 

committees and those committees meet regularly. So while the regents as a whole meet four times a year, all nine of those committees are going to meetings on another schedule to make sure business gets done. And then there is an executive committee and I 

meet monthly with the executive committee, and they stay in touch 

and we try to stay in sync on these issues. For example, they approve our goals and our measurable goals, like our new strategic 

plan, we will have a set of goals each year and a set of measurables 

and we will have a five-year set, and we have software called Share 

Point so we can enter in our progress on a very regular basis and 

we share that quarterly with the executive committee as to how we 

are doing to meet our goals, how we are spending our money, if we 

are ahead or behind, those kinds of issues. So it is a much more 

connected process today than it was in the past. And I tell people 

that the Smithsonian unfortunately had to learn this the hard way. 


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Most nonprofits, most universities had taken almost all these 

measures into house and into hand some years back and the 

Smithsonian just had to get it done this way, which is not the right 

way and we still have work to do to make sure it has pervaded 

down to the Institution but we are doing well. Two thousand ten, 

incidentally, will allow us to add nine new people in the controls 

and oversight areas and particularly addressing what our Inspector 

General referred to as personal property management. We will 

have three new people there. We will have three new people who 

will look at the travel policies, which we think are now set well, 

and three new folks who will work in one other area in terms of 

accountability and oversight. 

RELATIONSHIP BETWEEN FEDERAL APPROPRIATIONS AND TRUST

PORTION OF INSTITUTION

Mr. DICKS. Because you have heard, Mr. Simpson brought it up, 

there continues to be a lack of understanding on the Hill and I 

think with the public at large on the relationship between the federal appropriations side of the Institution and the trust side. Can 

you please discuss how the trust works with the federal side and 

how the budgets and personnel work together and what additional 

things should this Committee know about this relationship? 

Mr. CLOUGH. Well, our trust funding comes from a number of 

sources, and philanthropy would be one of those, our $127 million. 

Now, that is not all cash that you spend. A lot of those gifts are 

in endowments and they mature over time. The Smithsonian Enterprise’s $27 million comes into this trust fund. We do work for 

organizations like NASA and Department of Education where we 

offer our services to do things for them to get things done they cannot do. We operate, for example, two orbiting telescopes in space— 

the Chandra is one of those that we operate with NASA—and for 

them as a contractor and that kind of funding goes in what we call 

the trust budget so it is separate from appropriations basically, 

anything that is separate. The revenues from our stores and so 

forth are separate from it. Those are used in different ways to 

make the Institution operate. For example, if we do work with 

NASA, we have specified things that we have to do for NASA and 

for the payment for the services that we provide and so that is not 

funding that we can use at large at the Institution. So it is a little 

bit like a university, Mr. Chairman, in a way where they have a 

private funding side and then they have a state funding side where 

you have a state institution. I would say that for the federal government as I see its obligation from my perspective, one of those 

places would be again is where we provide a service, and that a 

service is typically not something that a donor or a business enterprise would support, and a good example of that is being open 

every day of the year but one and having 30 million visitors, and 

I think the federal government has an obligation to help us with 

support of our collections, support of the people that support the 

collections and maintenance of the buildings and revitalization of 

those buildings. Those would be examples of where I think the federal government should support the Smithsonian to do that kind of 

work. 


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And then there are certain places where we will try to enhance. 

I like to tell people we are a leverage organization. When you provide us with dollars, where it is appropriate, and it has to stay on 

mission, we want to leverage those dollars to enhance the effect of 

those. And for example, all of our exhibits are supported by private 

funds even though the people that work in them may be federally 

funded but to actually hang those pictures on the wall or put those 

exhibits up and get the appropriate nomenclature and get it on the 

Web, that is all a private donation process. 

Mr. DICKS. It is. 

Mr. CLOUGH. It is. 

Mr. DICKS. All right. Mr. Simpson. 

MILITARY UNIFORMS COLLECTIONS

Mr. SIMPSON. Just a couple other things. One is preservation of 

the collections. We have a Member of Congress who wanted to be 

here and give some opening testimony, not a member of this SubCommittee. Chairman Dicks was graciously going to allow him to, 

do that but then he could not make it at the last minute but he 

is very interested in the military uniforms collection. As you know, 

some extra money went in to collections care because of his insistence that we address that. Could you tell me where that is and 

what is going to happen with that? 

Mr. CLOUGH. Well, I had the pleasant opportunity last night to 

meet him and his wife at a Christmas party, a holiday party, and 

we had a little discussion. Obviously he is very interested in military history of this country as we all should be and the Smithsonian clearly needs to represent that part of our history well. He did 

I think suggest that those funds come for the military collection. 

They do need help and we are grateful but this committee I think 

wisely said let us think of it more broadly and so you provided us 

with $2 million more for collections care, part of which will be used 

certainly to address the issues associated with the military uniform 

collection. So it is going to good use and it is taking care of that 

particular problem as well as others. 

Mr. SIMPSON. I also appreciate the fact that you recognized the 

rest of your staff and the people who do the work at the Smithsonian. As anyone knows, whether you are a Member of Congress or 

Secretary of the Smithsonian, you are only as good as the people 

behind you and you do have some great people that work for you. 

They did a great job in keeping us, the Committee, informed and 

the staff and so forth. So we appreciate that and the people that 

work for you and the job that they do. 

Mr. CLOUGH. Thank you. Well, I am very, very lucky. I can tell 

you, one of the things I have learned is how passionate the people 

are and how hardworking they are and how much they love their 

jobs. 

Mr. DICKS. Mr. Hinchey. 

SMITHSONIAN AND GAO INTERACTION

Mr. HINCHEY. I do not think I have any more questions, but 

maybe one about GAO and how the interaction is going, how positive it is and how effective it is. Perhaps you want to say something about that. 


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Mr. CLOUGH. I think that Mark characterized that correctly. I 

think obviously we need to learn as an organization and we need 

to have outside entities and others tell us in areas where we may 

have become too ingrained to actually see where there is a problem. I think evaluating progress is a good thing where we can get 

a sort of report card. I am able to tell you we put in policies and 

procedures and we are doing these things but are we actually doing 

them? That is another question, and I think we need to be appropriately evaluated on that. We need to be open and accountable 

and so we welcome their participation with us. 

Mr. HINCHEY. Well, I thank you very much. 

Mr. Chairman, thank you for this hearing. I very much appreciate your being here, Mr. Secretary. 

Mr. CLOUGH. Thank you. My pleasure. 

Mr. DICKS. Well, again, thank you for the job you are doing. I 

think the difference in approach and attitude is very obvious and 

we are just glad the Smithsonian is in good hands and that you are 

enjoying this job and out there trying to make it a better place. We 

are going to support you in that. 

Mr. CLOUGH. Thank you very much, and we certainly appreciate 

the support that you have given us. The budget was a very strong 

budget in fiscal year 2010. We could not be more grateful. I have 

an old friend that used to say—the fellow who is known as Father 

of Silicon Valley—give me a little more than my fair share and you 

will never regret it. 

Mr. DICKS. We will remember that. 


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GAO RESPONSES TO FOLLOW-UP QUESTIONS FROM DECEMBER 10, 2009, HEARING

Questions from Chairman Dicks 

GOVERNANCE AND MANAGEMENT: GENERAL QUESTIONS

1. Mr. Goldstein, we appreciate the GAO work on Smithsonian management. As you know, this Committee was very concerned about the management lapses of the previous Smithsonian leadership. We acted to get 

their attention and see that reforms would be implemented. What do you 

think were some of the largest problems that resulted from the governance lapses the Smithsonian experienced? 

GAO Response: As we pointed out in prior work (GAO–08–632), both the 

Smithsonian’s Governance Committee and the Independent Review Committee 

(IRC) studies of the Smithsonian’s governance published in June 2007 highlighted 

some of the largest problems resulting from the governance lapses the Smithsonian 

experienced: 

• Inadequate policies in place and insufficient oversight of and knowledge 

among regents concerning executive compensation, trust and federal pay systems, leave for senior executives, conflicts of interest regarding service on forprofit boards, travel expenses, event expenses, activities of Smithsonian Business Ventures, and internal financial controls; • A lack of critical information and relationships necessary to bring forward important issues and concerns and to support vigorous deliberation and wellreasoned decision making on the part of the Board of Regents (Board)—for 

example, Smithsonian senior management lacking access to the Board, too 

much control within the Secretary’s office regarding the information available 

to the Board and the Board’s agenda, and a lack of transparency and connection to stakeholders within the Smithsonian (such as museum directors and 

advisory boards) and to the public at large; and • IRC’s finding that there was insufficient action on the part of the Board to 

demand critical information needed to conduct adequate oversight of the 

Smithsonian. This problem was linked to a number of issues, such as unclear 

roles and expectations for citizen, congressional, and ex-officio regents; a lack 

of engagement and participation by some regents; unclear responsibilities of 

Board committees and a lack of certain critical committees such as a fundraising committee; a lack of diversity of skills and expertise needed to conduct 

adequate oversight; inflexible size and structure of the Board; and a lack of 

accountability of regents with regard to their performance and to fulfilling 

their fiduciary duties. 

2. Mr. Goldstein, you indicate that the Smithsonian has made some 

progress, but never-the-less, it still has a number of management challenges that have persisted over many years. What do you think are the 

top two or three management and governance problems which have persisted? 

GAO Response: As we stated in response to the previous question, most of the governance problems faced by the Smithsonian fell into three broad categories: Inadequate policies and procedures on such issues as compensation and travel, expense 

reimbursement; a lack of direct communication between the Board of Regents and 

stakeholders such as senior management and the advisory boards to ensure that the 

Board of Regents received information critical to effective governance; and issues related to the regents’ roles and responsibilities and the Board of Regents’ structure. 

In our recent work on the Smithsonian’s implementation of governance reforms 

(GAO–10–190R), we assessed the extent to which the Smithsonian implemented 

governance reforms recommended by its Governance Committee and GAO related 

to these issues, but it is too to know the extent to which these efforts have improved 

the Smithsonian’s governance. 

3. Mr. Goldstein, of the governance reforms which the Smithsonian has implemented, which aspects do you think are the most important at helping ensure sound, overall institution management? 

GAO Response: It is our hope that all of the reforms that the Smithsonian has 

implemented will play an important role in improving the governance and management of the Smithsonian. The Smithsonian has implemented 39 of the 42 reforms 

recommended by its Governance Committee, including 8 reforms related to executive and ethics reforms, 1 reform related to executive travel policies, 3 reforms related to policies on broader Smithsonian operations, 8 reforms related to the access 


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of senior officials to the Board and level of information available to the Board, 5 

related to transparency, 2 related to communication and stakeholder relationships, 

5 related to roles and responsibilities of the Board or regents, 6 related to the 

Board’s structure and composition, and 1 related to developing a regents’ assessment process. The Smithsonian also implemented GAO’s recommendation to evaluate what actions it can take in the event of persistent neglect of duties by a regent. 

4. Mr. Goldstein, of the governance reforms which still are not fully implemented, which do you think are the most important and urgent for the 

Institution to work on? 

GAO Response: While we are not in a position to prioritize the importance of the 

governance reforms that the Smithsonian has not yet fully implemented, we would 

point out that of the 46 reforms and recommendations we examined, 6 remain 

unimplemented. Specifically, of 42 governance reforms recommended by the Smithsonian Board of Regents Governance Committee, 3 have not yet been implemented; 

of 4 GAO recommendations, 3 have not yet been implemented. We think that it is 

important that the Smithsonian continue to work on fully implementing all 6 of 

these unimplemented reforms and recommendations. These reforms and recommendations are related to the Smithsonian’s contracting policy, a comprehensive 

review of financial reporting and internal controls, enhancing the role of advisory 

boards (one Governance Committee reform and a related GAO recommendation), a 

policy on the use of nonregents on Board of Regents committees, and a comprehensive evaluation of the Board of Regents’ reforms. 

5. Mr. Goldstein, which of the incomplete reforms and GAO recommendations do you think this subcommittee should address through the appropriations process? 

GAO Response: Although we have not assessed the Smithsonian’s funding needs 

related to implementing governance reforms and recommendations, our prior finding 

that as of September 2007, the Smithsonian’s cost estimate for facilities projects had 

increased to $2.5 billion through fiscal year 2013 clearly has ongoing funding implications. In addition, we reported that both the Smithsonian Chief Financial Officer 

(CFO) and members of the Board of Regents Audit and Review Committee expressed a need for increased staffing and other resources to effectively execute the 

Smithsonian’s plan to improve internal controls. According to Smithsonian officials, 

the Smithsonian received funding in fiscal years 2009 and 2010 to improve internal 

controls. We did not evaluate the Smithsonian’s need for resources in this area. 

6. Mr. Goldstein, as you know, this Committee has had concerns about the 

Smithsonian’s ability to prioritize among its many different scientific, 

cultural, educational, and visitor services. Do you get a sense that there 

is capability at the Institution’s headquarters to prioritize among the 

many competing needs? 

GAO Response: We have not assessed the Smithsonian’s ability to prioritize among 

its different mission-related services and needs. 

7. Mr. Goldstein, your testimony repeatedly deals with the different roles 

that the Regents and the Smithsonian’s Secretary play at providing policy and management for the Institution. What do you think are some of 

the key aspects that differentiate the Regents role from that of the Secretary’s office and the various museum leaders? 

GAO Response: As we state in our recently issued report (GAO–10–190R), according to Smithsonian officials, generally, the Board of Regents is responsible for setting Smithsonian policies and the Smithsonian Secretary is responsible for implementing those policies. 

8. While the Smithsonian seems to have turned the corner on some management issues, it still is engaged in several large expansions. For instance, the Congressionally mandated National Museum for African 

American History and Culture will be a major new facility that will be 

placed right near the Washington Monument in a critical Mall location. 

Given your examination of the Smithsonian’s management, do you think 

the Institution is able to provide the careful oversight of such a major 

and critical capital project? 

GAO Response: We have not assessed the Smithsonian’s ability to provide effective 

oversight of major capital projects. 


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FACILITIES CONDITION AND DEFERRED MAINTENANCE BACKLOG

9. Mr. Goldstein, I know that the GAO has not looked carefully at Smithsonian facilities for the past two years, but I want to get a sense of your 

impression of how they are managing the facilities funding they do get. 

Do you think the Smithsonian now has a decent, long-range plan for its 

many varied facilities? 

GAO Response: We have not assessed the Smithsonian’s long-range capital plan 

or facilities management since 2007. However, in 2007, we found that the 

Smithsonian’s capital planning process incorporated many capital planning principles as defined by our prior work and the Office of Management and Budget. We 

also found that the Smithsonian’s capital planning decision-making process was 

guided by a comprehensive assessment of facilities’ conditions and needs and the 

identification of performance gaps between current and needed capabilities. We 

found that the Smithsonian’s capital planning efforts included a review and approval framework with established criteria for selecting capital investments and a 

long-term capital investment plan. Furthermore, we found that each year, the central Smithsonian facilities group worked with the museums and other facilities 

groups to develop an annual list of new and previously submitted projects, which 

were prioritized for inclusion in the annual 5-year capital plan using a prioritization 

matrix. 

10. You have indicated that there is a maintenance backlog of well over $2 

billion. Can you give the Committee a sense of where the largest portions of this backlog exist? 

GAO Response: Based on work we did for our 2007 report (GAO–07–1127), the 

Smithsonian’s then-estimate of $2.5 billion in facilities projects for fiscal years 2005 

through 2013—which included revitalization, construction, and maintenance 

projects—included several main categories of work. The Smithsonian’s estimated revitalization and new construction costs were driven in part by the need to modernize 

or add systems, such as fire detection and alarm and security systems, and to comply with newer life safety code requirements, such as those for handicapped accessibility to buildings and restrooms. Maintenance costs included staff costs, minor repair and maintenance projects, and other contracts, supplies, materials, and equipment for Smithsonian’s maintenance program. In addition, we found that the 

Smithsonian’s cost estimate for facilities projects through fiscal year 2013 had increased from about $2.3 billion in April 2005 to about $2.5 billion as of March 2007, 

and that this increase was due to several factors, according to Smithsonian officials. 

For example, Smithsonian officials said that major increases had occurred in 

projects for the National Zoo and the Museum of American History because the two 

facilities had recently developed master plans that identified additional requirements. In addition, according to Smithsonian officials, estimates for antiterrorism 

projects had increased due to adjustments for higher costs for security-related 

projects at the Air and Space Museum. According to Smithsonian officials, the increase also reflected the effect of delaying corrective work in terms of additional 

damage and escalation in construction costs. We have not done the work to update 

this information since 2007. 

11. Of the large facilities maintenance backlog, how much of it is urgent 

for protecting safety and for protecting the collections? Are there still 

significant security concerns? 

GAO Response: We have not done sufficient work to answer this question. 

12. Previous reviews of the conditions of the Smithsonian’s priceless collections indicated that there are some serious lapses in the ability of the 

Smithsonian to protect these items for the long haul. Do you think 

there are particular facilities which this Committee should be particularly concerned about? 

GAO Response: We have not done sufficient work to answer this question. 

Chairman Dicks Questions for the Inspector General 

MANAGEMENT CONTROL

1. Ms. Ryan, I want to thank you for your work at the Smithsonian, which 

I think has been important at identifying previous governance lapses at 

the Smithsonian, and offering constructive recommendations for change. 

Your testimony stresses the importance of management control. The 


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Smithsonian, with 19 separate museums, a major zoo, and numerous 

other scientific and cultural responsibilities, is quite a diverse beast. 

This is further complicated by the hybrid nature of its Federal and its 

Trust funding and management structure. How do you think the Institution’s headquarters should increase its control while not overly interfering with the diverse missions of the various museums? 

IG Response: Sustaining a sense of freedom and entrepreneurship is essential to 

a creative institution like the Smithsonian. Vigorous management control need not 

threaten these values. The Smithsonian should strive to have systems of management control that emphasize accountability at all levels; clear policy guidance that 

is kept current; meaningful training; and quality assurance efforts to test effectiveness of the controls. The Institution should further standardize major administrative processes across the board. Currently, some individuals who handle these transactions do so only part-time and their expertise, training and supervision are minimal. The Institution needs to provide better training and resources for administrative staff in budgeting, accounting, asset and inventory management, payroll, travel, 

and similar areas. Taking these steps will not threaten the diverse missions of the 

Institution but rather will provide more accurate and timely information that in 

turn will lead to better decision-making. 

2. Ms. Ryan, given your concern for increased management control, do you 

think this is an issue for the Regents to deal with, or is it primarily an 

issue for the Secretary and individual museum leaders? 

IG Response: This responsibility lies with everyone at the Institution. The Secretary must lead, setting the tone at the top, communicating expectations, and holding everyone at the Smithsonian accountable. The Regents also have a role by setting overall policy and rigorously scrutinizing management decisions. Executives 

and unit heads should adhere to and enforce controls. And all employees should understand and embrace the controls. 

3. Ms. Ryan, one of your major themes is the need for better financial discipline. Do you think the Institution’s headquarters and leadership has 

the ability and the interest to implement and use financial systems in 

annual and every day decision making? 

IG Response: Smithsonian leaders have expressed a strong commitment to improving financial systems to enhance day-to-day operations. In our work on such topics 

as project management, inventory control, and budgeting and accounting we have 

found that managers uniformly seek more, and more accurate and timely, information. However, they do not always use ERP (the Institution’s financial system) as 

fully as they could. And we continue to be concerned about the slow implementation 

of the final modules of the ERP, which will be essential to the success of missioncritical initiatives. We are hopeful that a new project costing system, for example, 

will provide reliable, timely information to better manage capital and other projects. 

We are also hopeful that the Institution will use the financial system in implementing the goals of its new strategic plan. 

4. Ms. Ryan, there continues to be a bit of confusion among the public, and 

here on the Hill, of the different roles of the Federal appropriations, and 

the Trust funding at the Smithsonian. I think this confusion existed in 

the Smithsonian castle in the past as well, leading to the major governance lapses of the previous Secretary. Do you think the Smithsonian 

leadership and employees have a clear picture of how this hybrid organization should operate? 

IG Response: I believe the new strategic plan, which represents not only the vision 

of the Secretary but of multiple stakeholders throughout the Institution, is a significant step towards redefining a unified Smithsonian. 

5. Do you think the Smithsonian leadership should be more transparent 

with the Hill and the public on how the Federal and the trust areas of 

the Institution interact? 

IG Response: More transparency is always better. In addition to providing more 

information to Congress, I believe the Institution could do a better job of explaining 

the various funding sources and how they are used in supporting the Institution’s 

mission. 

6. Ms. Ryan, you mentioned that the Institution needs to have careful review and control of its major capital projects. Given the continuing exVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00086 Fmt 6621 Sfmt 6621 E:\HR\OC\A504P2.XXX A504P2

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pansion of the Smithsonian, do you think the headquarters has the ability to provide sufficient oversight of these capital projects? 

IG Response: Our recent audit work has shown that the Institution has significantly improved oversight of capital projects. The Smithsonian can further step up 

its oversight by implementing the improvements it agreed to in response to our recent report on funding for capital projects. Clarification of authority and accountability over funding decisions, expanded training for financial decision-makers and 

accountants, revised and updated financial policies, and enhanced quality assurance 

are essential. Finally, an integrated financial system (such as the yet-to-be implemented costing module in the ERP) will let financial and accounting staff focus on 

oversight, not merely on inputting data. 

7. Ms. Ryan, another theme is your concern for how the Smithsonian uses 

its funds. You discussed a situation in which dispersed responsibility for 

how funds are used means that there is no accountability for errors. Do 

you think this situation is due to a leadership lapse or from insufficient 

or ineffective guidance from the budget division? 

IG Response: In part, this situation stems from insufficient policy and guidance. 

Policy and guidance should express the values and expectations of the organization. 

The preference for loosely worded financial policy, ambiguous in its intent, contributed to dispersed responsibility for funding decisions and the resulting accounting 

errors. In addition, central office management did not take responsibility for overseeing the units, and the units, in turn, resist any centralized oversight. Improved 

guidance will tighten control of funds and accounting practices. Both central leadership and unit management must agree on the need for greater accountability and 

oversight. 

8. Ms. Ryan, a continuing theme I find when looking at the Smithsonian is 

the need for central oversight. You mentioned that there are various 

management inconsistencies that result from decentralization. What do 

you think are the main obstacles for the Institution to providing better 

oversight and increased accountability, while still allowing and encouraging the diverse missions to be accomplished? 

IG Response: One big obstacle, as I mentioned in my testimony, is the resistance 

by the various units to central controls. Another important obstacle thwarting improved oversight and increased accountability is the lack of clearly defined authority 

for ensuring proper implementation of management control. In our work, we have 

found that key functional leaders either lack the authority to enforce procedures or 

are reluctant to do so. Similarly, we have found examples of obsolete policies that 

assigned responsibility for management control functions to outdated positions. The 

Smithsonian is, however, addressing these issues. In particular, the Institution is 

hiring a consultant to help examine the existing organizational and leadership 

structure. The study should be completed within the next year. Our office will monitor any changes that result, and we hope they will improve accountability and oversight while also promoting the core missions of the Smithsonian. And we will continue to press for timely policies, training, and communication of the authority of 

and expectations for all employees. 

CROSS-UNIT INITIATIVES

9. Ms. Ryan, you have stressed the need for more cross-unit initiatives for 

the Institution to enhance management and control of its many autonomous units. What specific kinds of cross-unit policies, practices or programs do you think are most urgently needed? What role do you think 

this Committee should play at encouraging and enhancing such crossunit approaches? 

IG Response: Management controls over such functions as use of funds, property 

management, accounting, information technology and information security, and 

physical security are common to all Smithsonian units. A unified approach to such 

functions will serve the goals of the Institution. Consistent implementation of controls can only be realized through a firm commitment to do so by the Secretary and 

Under Secretaries, in cooperation with the units, through policies and other communications that set forth clear expectations, and through enforcement of the rules. 

The Committee could help advance such initiatives through continued oversight and 

through continued budget support for stronger pan-institutional administration, 

training, and information technology initiatives. 


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10. Ms. Ryan, have you had a chance to look at the Institution’s Information Technology applications? It seems to me that IT needs are more 

and more important these days, and that common, cross-unit IT structures can help force inter-unit coordination and compatibility. And, 

cross-unit IT systems are needed for better central management controls, as well as for efficient use of funds. What is going on with IT at 

the Smithsonian? 

IG Response: Under the Federal Information Security Management Act (FISMA), 

which requires us to test controls that safeguard information and systems, we annually evaluate the effectiveness of selected Institution information security policies, 

procedures, and practices. There are several important Institution-wide IT systems 

that help support the missions, such as for timekeeping, travel, and certain financial 

functions under the ERP system. Unfortunately, as I noted in my written testimony, 

not all modules of the ERP have been implemented, and they will not be for a few 

more years. More needs to be done. For example, this is another area where authority is dispersed; the Chief Information Officer may lack the authority necessary to 

improve intra-unit cooperation. I hope that the study I mention in my answer to 

question 8 will also help address this issue. 

MANAGEMENT CONTROLS OVER CARE OF THE COLLECTIONS

11. Ms. Ryan, your testimony mentions that there have been concerns from 

your office and from the Smithsonian’s Office of Policy and Analysis 

that the collections may be at risk of theft or deterioration. My subcommittee provided a small funding bump-up in the last appropriations 

bill for collections management. Do you think that the Smithsonian has 

a decent handle on the condition of its collections and the needs for its 

protection and use? 

IG Response: The Smithsonian does seem to understand the challenges of properly 

maintaining its collections. Unfortunately, the condition of the collections is an enduring problem: it stems from their vastness, age, and continual growth. It also results from the long-term and persistent decline in resources available for collections 

stewardship, caused to a great degree by the base erosion in funding that comes 

from the need to address mandated increases in other areas. 

The Smithsonian recently began a pan-Institutional survey of collections stewardship, which will serve as a critical tool to assess the condition of the collections. Our 

preliminary work on the state of the collections at the National Museum of American History indicates that NMAH officials are using the tool to profile collection 

conditions candidly and comprehensively. We will continue to study the refinement 

of this assessment tool at NMAH and at other collecting units of the Smithsonian 

and plant to focus more of our audit work on stewardship of the collections. We will 

keep the Committee apprised of our findings. 

12. Given the large backlog in deferred maintenance at the Smithsonian, 

do you think the Institution has the ability to prioritize among the 

many varied demands and the very different kinds of collections and 

research needs? 

IG Response: The Office of Facilities Engineering and Operations does produce a 

comprehensive, prioritized list of maintenance needs; problems arise when breakdowns or other events occur that could compromise safety (of the collections, staff, 

or visitors) that demand a reordering of priorities. In terms of maintenance versus 

programmatic needs, I think the Institution’s new strategic plan would be the best 

gauge against which to measure the Institution’s progress in addressing the perennial balancing it must do between the core missions (e.g., research and exhibits) and 

those aspects that support the core mission (infrastructure and administration). 

13. Ms. Ryan, you have had a chance to visit most of the Smithsonian’s museums and research facilities. Can you give the Committee a sense for 

where you think the collections managers have done a good job, and 

where there are larger challenges? 

Response: In our recent audit work at the National Air and Space Museum 

(NASM), while we found some issues regarding security devices, we also determined 

that the collections managers were able to promptly locate all items we sought and 

overall maintain good stewardship of the NASM collections. We have not done extensive audit work recently on other collections. However, it is clear that with the 

bigger ones, such as at the National Museum of Natural History and the National 

Museum of American History—where we recently started an audit of collections 


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stewardship—there are numerous challenges. In addition to incomplete inventory 

records and accession backlogs, there are serious concerns about storage space, storage conditions, and environmental hazards ranging from asbestos contamination to 

insufficient humidity controls. These problems are long-standing and cumulative 

and require a significant investment of resources to address. As I noted in my answer to question 11, the Institution is taking steps to address them, such as through 

the development of the collections assessment tool, and your committee’s generous 

$2 million addition to the FY 2010 budget for collections will also help. And as I 

mentioned earlier, we are increasingly focusing our audit work on collections stewardship. We will keep you informed our findings. 

14. Your report indicated that $12 million in personal property cannot be 

accounted for. Does this mean these items were pilfered? Do you know 

what the amount of non-accountable property is per year? How does 

this compare with other federal agencies and institutions? 

IG Response: In our audit of personal property accountability, we deliberately 

chose to use the word ‘‘missing’’ to describe the personal property that the Institution cannot account for because we do not know, and the Institution does not know, 

what happened to the items. They may have been misplaced, they may have been 

discarded, they may have been pilfered—there is no way to know because until recently, the Institution had such poor recordkeeping and little accountability. I would 

also note that there is a significant amount of what is called ‘‘nonaccountable’’ personal property, such as office and maintenance supplies, which we did not cover in 

our audit because we considered them relatively low risk and low cost. Accordingly, 

we did not (and could not) determine the overall value of missing property at the 

Smithsonian. 

In the last couple of years, the value of personal property the Institution has found 

missing has declined significantly, to about 1 percent ($1.1 million) of assets inventoried, compared to a 2006 value of about 5 percent ($7.2 million) of assets inventoried. (These inventories covered one-third of the Institution.) As for other federal 

entities, public reports indicate the Indian Health Services identified a minimum of 

$15.8 million in lost or stolen property from 2004–2007; the Department of Veterans 

Affairs was missing over $26 million in IT equipment in 2008; and NASA reported 

to GAO in 2007 that it had lost over $94 million in equipment over the previous 

10 years. Obviously, the Smithsonian is not the only entity facing this challenge; 

GAO cites property acquisition and management in its 2009 High Risk List for the 

federal government. 

Chairman Dicks Additional Questions for Secretary Wayne Clough 

GOVERNANCE AND MANAGEMENT: GENERAL QUESTIONS

1. Dr. Clough, I very much appreciate you coming today. As we discussed 

previously, you know that this Committee had major problems with the 

governance and ethical lapses of the previous Secretary. I understand 

that the Institution has been diligent at implementing many of the reforms recommended by the Independent Review Committee and the Regents Governance Committee. Of the reforms that you have implemented, which do you think are the most important to enhance the management of the Institution? 

Response: The increased attention that the Institution has paid to governance and 

accountability in the last few years has had a number of positive effects. We believe 

that it has reassured the American people that their resources are being used wisely 

and in a way that is in keeping with our status as a public trust. Secondly, it has 

provided us an opportunity to revisit a number of policies and practices and ensure 

that they reflect best practices in the federal and nonprofit sectors. Overall, the 

most important reform probably has been that we are now more consistent in providing a strong tone of accountability at the top, in explaining the rationale behind 

new regulations and policies, and in continually emphasizing the importance of individual responsibility for carrying out the Institution’s mission in a fiscally prudent 

and ethical manner. 

2. The GAO indicates that some reforms have not been implemented. I am 

curious about your response to the GAO concern that the Board of Regents needs to have two-way communication with the various advisory 

boards. The GAO implies that the Regents may lack sufficient understanding of particular museums to govern effectively. Do you agree that 


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the Regents may have insufficient knowledge of museums? What is your 

office doing to enhance the Regents abilities? 

Response: As part of their governance reforms, the Regents look to the over 30 advisory boards to help them learn about operations at the museum or research center 

level. Over the past two years, the Regents have implemented a variety of methods 

to promote communications with the advisory boards and strengthen their partnership with them. Those steps, we believe, have greatly enhanced the Regents’ understanding of the issues facing individual units. The Regents and I recognize, however, 

that good governance requires us to assess our progress regularly and reset goals 

to ensure we employ the best practices in non-profit governance. This includes continually improving communications between the Regents and the advisory boards. 

I would also point out that a number of the Regents serve on some of these advisory 

boards and a number of advisory board members have been added to Regents committees as well. 

In light of the guidance provided by GAO in its December 10, 2009 report, my office 

will support efforts by the Regents to codify ways to further facilitate two-way communications between the Regents and advisory board chairs. Patty Stonesifer, the 

Chair of the Board of Regents, already sends quarterly reports to the advisory board 

chairs and meets personally with many of them to discuss issues facing their respective museums or research centers. Ms. Stonesifer and I will continue to hold an annual meeting with the chairs; next April, our agenda will focus on the launch of the 

national campaign. 

The Regents employ many other tools to learn about the needs of the various Smithsonian museums, research centers and programs. Ms. Stonesifer meets routinely 

with my direct reports museum directors and other senior staff. The agenda for each 

Regents’ meeting includes the opportunity for the Under Secretaries to present information on new acquisitions, programs and discoveries. The Regents’ orientation 

manual was recently revised and now includes extensive information on all aspects 

of our operations. My office is keenly aware, however, that our role is to promote 

opportunities for independent and unfiltered communication between the Regents 

and the advisory board members, and not manage the content of that dialogue. 

3. I am concerned that the GAO has indicated that the reform recommendation concerning contracting policy has not been implemented 

yet. Isn’t it very important for you to have clear, written agency-specific 

policies and procedures that all of your museums and program must follow? 

Response: It is very important to us that written uniform contracting policies and 

procedures are available and accessible to all SI employees. Pursuant to the Regents’ Governance Recommendation 25, the SI wide contracting policy, Smithsonian 

Directive 314 (SD 314), was issued in June 2008. During the development of SD 314 

it was determined that the most effective manner to implement the policies cited 

therein would be through an accompanying manual to address the various types of 

procurement and contracting activity. Work to establish the Procurement and Contracting Procedures Manual (PCPM) involves extensive SI stakeholder input and 

contracted assistance to ensure current processes and industry best practices are reviewed. All existing and examined practices pertinent to SI contracting will be incorporated into one or more of the seven parts of the PCPM, each addressing particular 

types of SI contracting activities or management oversight of SI contracting. The 

time it is taking us to develop the PCPM is not unusual considering the breadth 

of information we need to cover for it to be helpful to SI staff. Throughout the development of the PCPM SI staff have continued to have access to advice and existing 

or newly established guidance relevant to their procurement and contracting activities. All parts of the PCPM are on track to be completed during calendar year 2010. 

4. The management problems that occurred several years ago at the 

former Smithsonian Business Ventures were some of the most widely 

publicized and most alarming. Can you tell us how the Smithsonian Enterprises has changed the approaches your Institution takes regarding 

managing money-making and corporate business arrangements? 

Response: Since the issuance of the Task Force report on Smithsonian Business 

Ventures (now Smithsonian Enterprises) in January of 2008, we undertook a significant and comprehensive restructuring of this business unit and we now have an entirely new administrative team. The results of this restructuring have been extremely positive. The changes to Smithsonian Enterprises (SE) included recruiting 

new leadership in the key positions of the unit, focusing on transparency and accountability, and realigning of emphasis not only on revenue-generation, but also 


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support of the mission of the Institution as well. Key to the success that the unit 

has enjoyed for the past two years have been the positive strides made in governance issues, transparency and communication. 

Governance: 

• All open Inspector General comments specific to Smithsonian Enterprises 

were addressed and closed as of March 31, 2009. Open Audit comments are 

reviewed with the Regents’ Audit & Review Committee. 

• Quarterly compliance reviews of SE travel and purchase card activity have 

been implemented to ensure these areas are controlled and comply with 

Smithsonian policy. SE’s compliance reports are issued to the Smithsonian Institution’s CFO. 

• A full scope audit by an independent audit firm (KPMG) has been in place 

for Smithsonian Enterprises since fiscal year 2008. No material weaknesses 

or deficiencies were identified in fiscal year 2008. Currently a KPMG audit 

of SE is in process for fiscal year 2009. SE’s audit findings from KPMG are 

reviewed directly with the Regents’ Audit & Review Committee. 

• As part of the Regents’ Governance recommendation #23, an assessment was 

conducted of SE’s internal control environment by Booz Allen and senior SI 

representatives resulting in a ‘‘green’’ or low risk scoring. 

• As part of Regents’ Governance recommendation #20, a complete review of all 

112 existing SI policies was performed by a joint SE and SI team with the 

goal of determining SE’s compliance. The determination was that SE was in 

compliance with all but three existing policies relating to existing financial 

systems previously approved and in use by SE. An exception was subsequently approved by the Smithsonian Secretary for each of these policies. Additionally, SE’s separately approved travel policy was retired and SE adopted 

the Smithsonian’s travel policy. 

• As part of Regents’ Governance recommendation #25, SE executives are participating on a pan-Institutional team currently drafting procedures specific 

to Revenue Generating Contract procedures. 

• As part of Regents’ Governance recommendation #24, SE has fully synchronized and is in compliance with the Institution’s Unified Compensation 

policy. SE’s senior employee compensation is submitted directly to the 

Smithsonian’s Office of Human Resources which reviews it directly with the 

Regents’ Compensation Committee. 

• As part of Regents’ Governance recommendation #22, SE’s annual budget 

processes are now synchronized with the Smithsonian’s budget planning 

schedule for the Regents. The SE President presents the annual budget to the 

Regents’ Finance Committee for review and approval. 

Communication and Transparency: 

• Senior SI representatives attend monthly operating reviews for each SE division. 

• The SE CFO holds a monthly meeting with the SI CFO to review SE financial 

performance, budgets and other relevant controllership or compliance items. 

• Quarterly financial reviews are held between SE, SI and museum personnel 

on the health of individual museum retail operations. 

• Quarterly meetings with SE senior leadership and the Institution’s Strategic 

Advisory Committee (SAC) are held to review strategic and tactical initiatives. The SAC is comprised of senior leadership across several SI disciplines 

and serves as a sounding board for SE management. 

• An annual review with senior Smithsonian leadership and museum directors 

is held to benchmark SE performance and cost structures and review the new 

SE annual budget and financial performance. 

• The president of SE reports directly to the Secretary, not to an independent 

board of directors as was previously done. As such, the president meets with 

the Secretary and his cabinet weekly, as well as other regularly scheduled update meetings with the Secretary. 

In summary, significant reforms have been implemented to improve governance of 

Smithsonian Enterprises’ operations and business activities. 

REGENTS ROLE IN GOVERNANCE

5. The GAO governance recommendation analysis focuses on the governance role of the Regents. Can you help the Committee better understand 

how you see the role of the Regents versus the role that you play at setting policy and managing the Institution? 


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Response: Over the past two years and guided by the best practices in non-profit 

governance, the relationship between the Regents and Secretary has evolved into a 

strong constructive partnership. The Regents, pursuant to the statutes establishing 

the Smithsonian, possess the legal responsibility for the governance of the Institution—organizational oversight and policy setting, while delegating to the Secretary 

responsibility for managing operations and resources. 

The benefits of this constructive partnership were particularly evident in the development of the Smithsonian’s strategic plan. The Regents actively provided guidance 

on (and eventually approved) the plan’s directions and then delegated to the Secretary the primary responsibility for its successful implementation. The Secretary 

is currently developing metrics to measure the progress of the plan against its goals 

and the Regents are committed to supporting the Smithsonian’s efforts to ensure its 

success. 

Another example of the partnership in action is the development of the 

Smithsonian’s contracting policy. The Regents adopted a governance reform (#25) requiring that Smithsonian contracting practices promote integrity, fairness, and 

openness and delegated to the Secretary responsibility for the creation of a policy 

that reflected their guidance. As the GAO noted, the new contracting policy reflects 

the Regents’ direction and we have made significant progress in completing handbooks and other materials that will complete the implementation of the policy. 

6. The one GAO-generated recommendation that the Institution has not implemented deals with a report to the Congress and to the OMB concerning an overall funding strategy for the Institution. Why has that not 

happened? What are you planning to do in this regard? 

Response: In 2007 GAO recommended that the Smithsonian comprehensively analyze funding options and report to Congress and OMB on a funding strategy to meet 

the needs of its revitalization, construction and maintenance projects. Since then, 

we have identified and reviewed several mechanisms to increase private funding, including a gift ‘‘maintenance’’ fee, special exhibition fees, energy savings performance 

contracts, public/private partnerships and public collection boxes. With the exception 

of the gift maintenance fee, all of these ideas have been implemented but have generated only minimal additional income. In addition, we are in the planning stages 

of a major national fund raising campaign which will be designed to raise funds to 

support the Institution in achieving the goals of our recently approved strategic 

plan, ‘‘Inspiring Generations Through Knowledge and Discovery.’’ The campaign will 

raise funds for a number of priorities, including revitalized exhibition space, new 

programs and exhibits, endowed positions, and new facilities, such as the National 

Museum of African American History and Culture. Despite the recent economic 

downturn, our donors remain committed to the Institution, as evidenced by the fact 

that we not only met but exceeded our overall fiscal year 2009 fund raising target 

of $120 million, with a year-end result of $127 million. The new strategic plan will 

help us sustain and increase donor support. We will brief our stakeholders in the 

Administration and Congress when our planning for the National Campaign is complete. We have also formed an internal team of creative thinkers to come up with 

more ideas to increase non-federal revenue and will be exploring those ideas in 

depth in the coming months. 

SMITHSONIAN TRUST FUNDS

7. Dr. Clough, as you have heard, there continues to be a lack of understanding here on the Hill, and I think with the public at-large, on the 

relationships between the Federal appropriations side of the Institution 

and the Trust side. Can you please discuss how the Trust works with the 

Federal side and how the budgets and personnel work together? What 

additional things should this Committee know about this relationship? 

Response: As a general rule, the Smithsonian uses federal funds to sustain and 

maintain our facilities, to provide a safe and secure environment for our visitors, 

staff, and collections and to support key research and public programs where long 

term funding stability or leveraging are required. We use trust funds for development/fund raising activities; to support our research, exhibitions and education and 

public programs; to share in some of the operating costs of the Institution; and to 

leverage federal funding and fulfill public-private partnerships. Private funds have 

to be raised to put on exhibitions which amount to millions of dollars each year for 

the 100 or so exhibits we mount. Trust funds are frequently used to expand or improve facilities projects, when desirable and when the work can be done in conjunction with a federal renovation or revitalization project. A prime example is the hisVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00092 Fmt 6621 Sfmt 6621 E:\HR\OC\A504P2.XXX A504P2

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toric Patent Office Building, which houses the Smithsonian American Art Museum 

and the National Portrait Gallery. In this case, federal funds were used to rehabilitate the existing, dilapidated building and trust funds were raised and used to create the exquisite enclosed courtyard which has become a wonderful addition to the 

museum experience. This type of federal-private partnership is crucial to building 

new museums; revitalizing facilities; broadening external collaborations to accomplish myriad research and education efforts; and creating and caring for exhibits. 

Our people work side by side to achieve the Institution’s goals and objectives. Functions that are uniquely trust, such as managing the endowment, fund raising, and 

operating retail stores, are performed by trust employees. Senior leadership executives serve at the discretion of the Secretary and are in trust-funded positions. Employees whose work is funded by donors, government grants, revenue-generating activities, and endowments are always appointed in trust positions. 

8. There seems to be a continuing theme in the various GAO and IG reports and what I hear elsewhere about a lack of access between the various senior Institution officials and the Regents, and with the Congress. 

Do you think there are barriers between various Smithsonian personnel 

and the policy setting Regents board and the Congress? 

Response: One of the governance reforms implemented by the Board of Regents 

was to ensure that key internal gatekeepers have direct access to the Board. The 

Board of Regents’ By-laws now provide that the General Counsel, Chief Financial 

Officer (CFO) and Inspector General (IG) attend all Board of Regents meetings and 

are invited to give presentations in executive session with the Regents, that the 

General Counsel also attends all Regents’ committee meetings, and that the CFO 

and IG attend those Regents’ committee meetings they deem relevant to their work. 

The By-laws also provide that the General Counsel and the CFO have the right and 

obligation to bring to the attention of the Regents and their relevant committees 

any issues of concern, and that the IG operates independently of all other SI officers. The agenda for each Regents’ meeting includes the opportunity for the Under 

Secretaries to present information on new acquisitions, programs and discoveries. 

The Chair of the Board meets routinely with the Secretary’s direct reports, museum 

directors and other senior staff. The Office of the Regents processes other staff requests for meetings with the Regents. Some Regents also sit on museum advisory 

boards. 

With respect to senior officials’ and other employees’ access to Congress, many congressional offices have asked that all communications come from a single Smithsonian office, to avoid the confusion and inconvenience that can result from multiple 

voices. Management always consults with the relevant Smithsonian directors and 

staff when preparing responses to congressional inquiries and when developing presentations on Smithsonian issues for Congress. Where appropriate, Smithsonian experts participate in briefings given to Members and their staff on various topics. 

Members of Congress and their staff are routinely invited to tour our exhibits and 

facilities and to attend events, during which they meet Smithsonian staff in various 

areas. And, as do all citizens, Smithsonian staff have the constitutional right to express themselves freely to their elected representatives in Congress. 

9. The IG testimony stresses a need for greater management control and 

accountability for a whole host of business and program issues. Do you 

think it is important for leaders like yourself in the Smithsonian Castle 

to have greater control of the 19 museums and other facilities and programs? 

Response: Everyone at the Smithsonian is responsible for ensuring our resources 

are managed in a manner befitting our status as a public trust. Although it is important for senior management to set a tone of accountability, in my tenure as Secretary I have stressed that leaders throughout the organization are accountable for 

promoting and upholding these values. Management should provide strong guidance 

and adequate training, but the day-to-day responsibility for ensuring that these expectations are being met should rest with those who are closest to these activities. 

FINANCIAL DISCIPLINE

10. The IG also stressed the need for greater financial discipline. Do you 

think the Smithsonian leadership and the top managers are serious 

about financial management? Are you able to use the financial systems 

to help manage and prioritize various competing program needs? 


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Response: The Smithsonian leadership and top managers are serious about financial management and have emphasized the need to strengthen financial management by enhancing internal controls in the Institution’s strategic plan. As you know, 

management completed its review of 23 of the Institution’s critical financial processes and has been focused over the past year on implementing improvements to 

address the five processes identified as high-risk. The Institution has reformed its 

policy directives review process to ensure policies are developed in a timely manner, 

and is about to issue several critical policy directives and procedural manuals regarding the use of funds and procurement that will strengthen management control. 

Other improvements will result from the hiring of new staff that were funded in 

the fiscal year 2010 appropriation and implementation of new training programs. 

The ten positions that were approved in the fiscal year 2010 appropriation will 

strengthen the management of personal property assets, procurement oversight and 

policy compliance, and improve financial reporting. In addition, the Institution is 

contracting for a best practices study that will result in improvements to the Institution’s management structure and decision-making processes. We remain focused 

on improving the financial system to enhance efficiency and reduce the errors that 

result from manual processes. Project costing, cash management, and grants modules will be implemented in fiscal year 2010. 

The Inspector General issued recommendations in her recent audits of personal 

property accountability and facilities maintenance funds to strengthen financial 

management. The Institution’s leadership takes these recommendations seriously 

and is working to implement them. Two of the recommendations to provide training 

to staff involved in real property transactions and to instruct units to complete the 

appropriate property accountability forms have already been closed. A task force, 

composed of staff from several offices including budget, accounting and facilities, has 

been formed to focus on the recommendations stemming from the facilities audit. 

Though management disagrees that maintenance funds were improperly used for 

capital-related projects. Work has begun to develop and communicate a formal policy on the proper use of maintenance and capital funds for unplanned requirements, 

to improve documentation of funding source decision and rationale, and improve 

training for those who authorize the use of Federal funds. 

The Institution uses its financial system to manage competing program needs. By 

monitoring spending and program accomplishments, the Institution is able to shift 

funds from programs that are progressing more slowly than planned to programs 

with a more urgent need. Having just completed a strategic plan, the Institution is 

working to incorporate the priorities and structures of that plan into the financial 

system. Once this is done, the financial system will become even more helpful in 

managing competing program priorities. 

11. The IG indicated that the decentralized nature and management of the 

Smithsonian is a real obstacle to better oversight and accountability. 

To what extent can the personnel in the Castle be more effective at 

bringing accountability and consistency, as appropriate, to the many 

different museums in the Institution? 

Response: The Smithsonian is a stronger organization overall because of the 

unique and individualized missions of its museums, research centers and programs. 

Clearly certain processes benefit from more centralized coordination when there are 

efficiencies or enhanced oversight that can be gained through consistency. Other activities are better managed at the unit level. This balance between central and unit 

control of activities is one that is revisited periodically to ensure that the current 

balance is one that is best for the Institution. We are about to embark on a wideranging assessment of our organizational structure to ensure that we are set up in 

a way that will enable us to carry out the objectives of our new strategic plan. As 

part of this review, we will also look at some core processes to ensure we are following the best practices and enabling our mission most effectively. We are hopeful 

that this review, which will be aided by expert consultants, will result in improvements to our management structure and decision-making processes and will produce 

some cost-savings. 

Also, we are using a teamwork approach with all of the units to reduce barriers to 

productivity and to allow for ideas to be developed anywhere in the Institution. We 

have developed a number of cooperative task forces made up of individuals from 

across the Institution to look at issues such as travel, the capital campaign and improving trust funds. 

12. What level of centralized control is appropriate? 


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Response: As stated above, the Smithsonian is a stronger organization overall because of the unique and individualized missions of its museums, research centers 

and programs. Clearly certain processes can benefit from more centralized coordination when there are efficiencies or enhanced oversight that can be gained through 

consistency, but there are other activities that are better managed at the unit level. 

This balance between central and unit control of activities is one that must be revisited periodically to ensure that the current balance is one that is best for the Institution. 

13. How do you use your financial management systems to provide accountability for your many diverse units? Do you have a policy of providing additional program funding for the better performing units and 

reductions for units which have not performed? Which management 

metrics can you use across so many different programs and museums? 

Response: One of the goals of the Institution’s strategic plan is to improve the allocation of resources based on Institutional priorities, cost effectiveness and demonstrated value. The Institution has several processes by which it holds diverse 

units accountable for meeting their program goals. The Secretary establishes his annual goals at the start of each fiscal year and the Board of Regents affirms them. 

The Secretary then holds his management team accountable for achieving them. 

Each quarter, the Institution’s leadership completes a status report that outlines 

what progress has been made in achieving these goals. In the annual budget process 

program managers align their funding requests with the Institution’s strategic plan. 

Requests will receive consideration for funding based upon the extent to which that 

funding will further the objectives of the strategic plan. In addition, units are required to establish their budgets at the start of each fiscal year through the Smithsonian Operating Plan in which they document risks and opportunities to achieving 

the year’s goals. Management reviews this plan against actual performance during 

a mid-year review. The mid-year review provides an opportunity to review the 

planned expenditures for the remainder of the year and identify any lower-priority 

expenditures that can be deferred so that funds can be devoted to higher-priority 

expenditures. Units that have performed well throughout the year and have identified high-priority needs will be ‘‘rewarded’’ with these funds at year-end. 

The metrics used to measure performance are laid out in the strategic plan and include the following: 

• Dollar amount of external funding from peer-reviewed research grants and 

contracts 

• Number of peer-reviewed/refereed publications in priority research areas 

• Number of strategic partnerships and collaborations 

• Number of physical visits to Smithsonian museums, the National Zoo, and 

Smithsonian traveling exhibitions 

• Number of visitors using online resources 

14. Does the Smithsonian have different financial management and accountability tools for your Federal versus your Trust funds and programs? 

Response: The Institution uses the same financial management and accountability 

tools described in the answer to Question 13 for its Trust funds, and all Trust revenue and expenditures are tracked in the same financial system. The gifts, grants, 

and contracts the Institution receives are considered restricted funds and are held 

to additional standards and reporting requirements as agreed to with the donor or 

sponsor. 

15. Dr. Clough, now that you have been at the Smithsonian for nearly a 

year and a half, what have been some of your bigger surprises? What 

area of your work are you most proud of so far? 

Response: One surprise to me has been the breadth, depth and contribution of 

Smithsonian science and scholarship to the larger questions of the day, including 

understanding climate change, uncovering the origins of the universe and preserving and appreciating our history and cultural heritage. Part of that surprise was 

learning how the Smithsonian reaches across America and to the world through our 

research stations, museum affiliations, traveling exhibits and collaborations with 

other organizations. I have been impressed with the talent and dedication of our 

staff. We handled 9 million more visitors this year and provided the American public free high quality exhibits and programs. During a time of great fiscal uncertainty, our value resonated with a lot of people and visitor numbers are proof of 

that. During this initial period, I have also made a concerted effort to visit every 


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Smithsonian museum and most of our research locations in the U.S. and abroad so 

that I can better communicate about the incredible education and research work of 

this Institution. I was also surprised to learn how important our large numbers of 

volunteers are to helping us maintain our vast collections and educate visitors. In 

my 18 months here I have already given several 40-year service pins to volunteers. 

Their dedication and that of our full time staff is essential. 

An accomplishment of which the entire Smithsonian can be proud is the development of our new strategic plan. We went through a very intensive, wide-ranging, 

bottom-up process including over one thousand stakeholders from both inside and 

outside the Institution. In those discussions we identified the Smithsonian’s 

strengths and resources, and tightened the focus of our efforts on those areas where 

we can make the strongest contributions to public life. Our strategic vision captures 

the relevance of the Smithsonian in helping our citizens and the world understand 

key science, history, art and culture issues and describes how the Smithsonian will 

engage more diverse audiences with a refocused education program. The Smithsonian will serve as a laboratory to create models and methods of innovative informal 

education and link them to the formal education system. In addition, through technology, we will make our vast collections more accessible to all. I am confident that 

this new plan will help us broaden access and reach new audiences, both in Washington, DC and around the country. The plan has been very well received, and I’m 

pleased to say that it has already generated significant donor interest. 

FACILITIES MAINTENANCE CONDITION AND BACKLOG

16. The GAO physical infrastructure team review of the Smithsonian 

verifies that the maintenance backlog is huge and getting worse. This 

is not new information. For years, there have been reviews and concerns for degraded collections and failed buildings. At the same time, 

the Smithsonian continues to expand its facilities and its programs, 

while older facilities and vital collections, visitor services, and scientific and cultural programs are stressed. Can you give the Committee 

some background on what you as Secretary and chief executive of the 

Smithsonian are doing to prioritize your efforts and improve this situation? 

Response: The optimal funding for the capital and maintenance program of an annual $150 million and $100 million respectively, based on industry standards and 

reviewed by GAO, has yet to be secured, but we are grateful for the steady upward 

progress that has been made in approaching that level of support. While substantial 

improvements have been made, particularly at the National Museum of American 

History, the National Museum of Natural History, and the National Zoological Park, 

many vital facilities needs remain. We have a rigorous prioritization system, which 

is essential, especially when the Smithsonian has been asked to initiate new facilities and programs, such as the National Museum of African American History and 

Culture. Other footprint growth has largely been a result of our efforts to improve 

the care and security of our valuable collections, as well as to comply with appropriate standards and codes as we revitalize existing spaces. We are watching this 

closely, with recognition of the burden it places on our facilities operations and 

maintenance. 

Prioritization is the product of two major inputs. First, our facilities staff assesses 

needs on an annual basis, with priority coding that values health and safety improvements first, critical systems replacements and code improvements next, and 

deferrable functional improvements last. Second, the project prioritization is reviewed initially with program staff to coordinate timing, funding and access with 

research, exhibits and other Institutional initiatives. Then it is vetted and approved 

by the Institution leadership, including the Regents’ Facilities Committee. In this 

way, we will address visitor, staff and collections safety first and foremost, while 

reflecting program priorities as articulated in the Strategic Plan for fiscal years 

2010–2015. 

17. I expect that by now you have visited most of the Smithsonian’s museums, facilities and other program offices. What do you see as the most 

pressing facility issues for the Smithsonian? What will be the Federal 

and what will be the private and trust role at dealing with the most urgent facilities needs? 

Response: I have made over 90 visits to our units here in Washington, DC and all 

over the world. The most pressing facility issues for the Smithsonian are: 


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1. To correct long-standing deficiencies at our largest and most visited facilities 

in concert with the development of public programs that support the Strategic 

Plan; 

2. To design and construct the National Museum of African American History and 

Culture by 2015; 

3. To reopen the Arts and Industries Building as a Gateway to the Smithsonian; 

4. To support Smithsonian tropical research and environmental science with the 

construction of state-of-the-art laboratory facilities. 

The Smithsonian has maintained consistently that the revitalization of existing 

buildings and landscapes, all of which serve the public, is a Federal responsibility 

and our capital and maintenance programs are built around that understanding. At 

the same time, we vigorously seek and receive private funds for the programs and 

research, public events and exhibits that define our mission. 

18. Given the huge backlog in your maintenance needs, is it appropriate 

for the Smithsonian to accept new, additional responsibilities? 

Response: The Smithsonian does not seek new, additional responsibilities. When 

tasked with doing so by Congress, such as in the creation of the National Museum 

of African American History and Culture, the Smithsonian does its best to fulfill 

that mandate. 

ASBESTOS CONCERNS: ADDITIONAL QUESTIONS FOR SECRETARY CLOUGH AT TODAY’S

HEARING

19. Mr. Secretary, I want to ask you about the asbestos situation at the 

Smithsonian and the article in the Washington Post today. As you 

know, many of us on the Hill are very concerned about potential asbestos danger to workers and to the public. With the millions of visitors 

you receive, and the hundreds of workers who are routinely modifying 

buildings for exhibits, it is essential that the Smithsonian take its asbestos situation very seriously. The consultant’s report indicates that 

there continue to be recordkeeping and training problems on this 

issue. The lack of employee training seems to be a common theme, even 

in the business and financial system reviews we have examined. 

Please tell us about the asbestos situation, and especially, what you are 

doing to update records, test facilities, and train employees on proper asbestos handling. 

Response: The comprehensive review of the Smithsonian’s asbestos management 

program was recently completed by URS, an independent contractor, to assess compliance with applicable Federal, state and local regulatory requirements and industry best practices. The SI’s asbestos policies and specifications were found to be typical of policies prepared by Federal agencies, which oftentimes far exceed those of 

commercial entities. The Institution also conducted an internal review of its programs to ensure compliance with applicable regulatory requirements and best practices. Recommended modifications determined as a result of both the URS and internal assessments are being evaluated and, as appropriate, will be incorporated into 

existing policies and procedures. 

Records pertaining to asbestos locations, quantities and condition throughout the 

Smithsonian are being updated as part of a comprehensive asbestos-containing material (ACM) assessment and re-survey, conducted by Aerosol Monitoring and Analysis (AMA), an independent environmental consulting firm. This initiative commenced in November 2008 and included requirements that the contractor reconcile 

data/information in existing asbestos survey reports and compile all abatement 

records into an electronic database; correlate all existing ACM information into a 

geospatial database that interfaces with the Smithsonian’s work order management 

system; perform and document ACM inspections, prioritizing inspected areas requiring abatement; post applicable ACM warning signs; perform assessments for suspect 

ACM not identified in existing reports; and perform bulk sample collection and analysis of suspect materials. 

With respect to ACM training, over 800 SI employees have received asbestos awareness training thus far during 2009. In September of this year, a memorandum was 

also forwarded to each facility/museum director outlining asbestos notification, 

training and work practice requirements, soliciting their assistance in identifying, 

with published guidelines, other staff needing this important training. Exhibits staff 

from the National Air and Space Museum also completed 16-hour asbestos operations and maintenance training requirements and follow-up, certifying them to conduct Class III asbestos-related tasks. Records for contractor-provided training for 


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Class III workers are maintained at the affected facilities. Records for facility/organization specific asbestos awareness training provided by Smithsonian staff are 

maintained centrally and at the affected facilities/organizations. Records of general 

awareness training provided to staff interested in learning about asbestos-containing materials are maintained centrally. 

20. Today’s Washington Post reported that outside construction firms 

working at the Air and Space museum were told in plan specifications 

that wallboard joint compound contained ‘‘less than 1 percent’’ asbestos, meaning that special OSHA-required precautions did not need to 

be taken. However, the Smithsonian’s own analysis from 1992 shows 

that the wallboard joint compound contains more than 1 percent, 

meaning the special procedures were required. Is the Smithsonian 

today telling AIR AND SPACE contractors that there is more than 1 

percent asbestos in the wallboard joint compound? 

Response: Over the course of the past year, we have revised our contract specifications to remove any ambiguity that existed previously between standards promulgated by EPA and OSHA. All contractors are advised of the presence of asbestoscontaining materials (ACM) in buildings where those materials may be disturbed as 

part of their work. Similarly, all contractors who may disturb ACM are required to 

have the appropriate level of EPA-accredited training and jurisdictional licensure 

that certifies their awareness of proper safe work practices when disturbing and/or 

handling ACM. All contractors working in NASM are advised of the presence of the 

asbestos-containing joint compound and are required to follow all OSHA required 

safe work practices and precautions when tasks may disturb the material. The 

work-safe practices reinforcement starts with the project managers for capital 

projects, starting with the concern and notification of possible exposure to the design 

group. That information is conveyed within the design documents. The construction 

group then reinforces at the pre-bid walk thru, the preconstruction meetings and 

progress meetings. By definition, asbestos-containing materials are those that contain greater than 1% asbestos. 

21. With respect to the settlement reported today in the Post, do you expect that there are other employees who also worked in the same kind 

of conditions and who may be due compensation? 

Response: The settlement reported in the Washington Post released an individual 

employee’s claims arising out of his employment with the Smithsonian, but did not 

resolve his Federal Employees’ Compensation Act (FECA) claim for asbestosis. That 

employee’s FECA claim was accepted by the Department of Labor. The Smithsonian 

is not aware of additional claims similar to the settled claims. With regard to asbestosis, one other employee’s FECA claim currently is pending with the Department 

of Labor (DOL). DOL, not the Smithsonian, decides such claims. It is possible that 

other employees or former employees may file FECA claims. In general, an employee or former employee has three years from the time he or she becomes aware 

of a work-related injury to file a FECA claim. 

22. I understand that last March, when this issue came up, the Smithsonian offered medical testing and treatment for employees. What has 

been the result of that medical testing? 

Response: In March 2009, the Smithsonian offered free medical screening evaluations as well as consultations with an outside expert on asbestos-related disease to 

all current and former museum employees. Sixty-eight (68) individuals contacted 

Smithsonin medical staff for screenings and possible referral to the outside expert. 

Of those, 46 individuals requested and were given referrals to the outside expert; 

it was left to the employee to schedule the appointment. To date, 32 individuals 

have scheduled appointments with the outside expert. That process is drawing to 

a close with one individual awaiting an appointment. Of the 31 individuals who consulted with the expert, five individuals so far have been diagnosed with asbestosrelated disease, specifically pulmonary asbestosis. Among the five individuals, three 

are former employees and two are current employees. Each of them reported to the 

independent expert a work history which suggests possible exposure to asbestos 

prior to 1990. Some reported work histories which suggest significant likelihood of 

exposure associated with previous employment or military service going as far back 

as the 1960s. All current and former employees having actual disease findings as 

well as three individuals with no evidence of asbestos-related disease, but with histories of exposure warranting follow-up medical testing in three to five years, are 

being offered follow-up appointments with OHS staff. During these appointments, 

OHS staff provide further information and explanation of the expert’s findings. CurVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00098 Fmt 6621 Sfmt 6621 E:\HR\OC\A504P2.XXX A504P2

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rent and former employees with disease findings are referred to the Office of Human 

Resources to discuss procedures for filing an occupational illness claim with the Department of Labor, if desired. Current employees needing routine and ongoing follow-up medical testing are advised that they can be followed by the Smithsonian’s 

OHS. Former employees needing such testing are advised to follow up with their 

private physician. 

23. We understand that some of your older facilities, especially such storage as at the Garber facility, which staff visited earlier this week, have 

major asbestos problems. The asbestos in these storage facilities makes 

use of artifacts difficult and expensive. How large is this problem? 

What are you going to do about it? 

Response: A small percentage of our storage facilities at Garber have asbestos-containing insulation in place that is in varying stages of disrepair. The insulation, 

which may have been sprayed or troweled on, is contained behind either double layers of polyethylene sheeting or corrugated steel walls. Access to these buildings and 

artifacts is controlled by trained museum staff. Work in these buildings that may 

disturb ACM is restricted to staff who have been trained in proper work procedures 

for handling asbestos-contaminated articles and who have the proper personal protective equipment needed to safeguard against potential asbestos fiber exposures. I 

plan to close the Garber Facility in the long run, as soon as we can develop facilities 

to replace those at Garber. 

More than 90% of the Smithsonian’s million and a half square feet of collections 

storage space is rated in optimal or acceptable condition. The revitalization or replacement of the remaining unacceptable space appears in the ten year program of 

capital requirements with priority given to spaces occupied by staff and visitors. 

COLLECTIONS CARE AND CONDITIONS

24. Many different reports and evaluations all indicate that there are legitimate concerns for the Smithsonian’s ability to provide proper care 

for many scientific and cultural artifacts. Where in the Smithsonian do 

you think there are the most urgent needs for improved collections 

care? Where is the Smithsonian in pretty good shape? 

Response: Over the past few years, the Smithsonian has made incremental 

progress in improving collections care across the Institution. A number of our facility-related projects have directly improved collections storage, preservation, and access—such as the opening of the state-of-art facility at Pennsy Drive in Landover, 

Maryland and consolidation there of collections from disparate storage locations; 

completion of POD 5 at the Museum Support Center in Suitland, Maryland, and the 

move of all alcohol collections from the National Museum of Natural History; pending completion of POD 3 at MSC for collections requiring high-quality environmental conditions and special security (artworks and physical anthropology) and 

ultra-cold or liquid nitrogen storage (cryo-collections); and the pending completion 

and move of collections at the Cooper-Hewitt, National Design Museum to an offsite storage and conservation facility. 

In addition, we have taken a pragmatic and systematic approach to improving the 

stewardship of Smithsonian collections, including the following: initiated a pan-Institutional collections assessment to inform long-term strategic plans and priorities 

for collections care; addressed the Smithsonian Inspector General’s audit recommendations regarding deficiencies in collections inventory and security at the National Museum of Natural History; continued to replace obsolete storage cabinetry 

and housing materials across the Institution that are currently detrimental and 

hazardous to the collections, staff, and researchers, by purchasing compact storage 

equipment and stable materials; conducted collections-level assessments, preservation surveys, and inventories to establish priorities and strategic plans for the allocation of collections care resources; and stabilized and conserved specific collections 

at risk of loss or damage. 

In fiscal year 2009, the Smithsonian initiated an Institution-wide collections assessment adapted from a survey tool used by the National Museum of Natural History. 

The resulting data and assessment methodology, currently being evaluated and refined, will guide long-term strategic plans for collections care, identifying areas of 

need and improvement, establishing priorities, and providing a practical framework 

for the allocation of collections care resources. Based on the initial assessment data, 

priority collections care needs include: 

• Continued purchasing of compact storage units and housing for collections 

across the Institution, as well as replacing substandard cabinetry and mateVerDate Nov 24 2008 04:26 Jan 26, 2010 Jkt 054504 PO 00000 Frm 00099 Fmt 6621 Sfmt 6621 E:\HR\OC\A504P2.XXX A504P2

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rials, with particular focus at the following museums: National Museum of 

Natural History, National Museum of American History, National Air and 

Space Museum, and the Cooper-Hewitt, National Design Museum. 

• Stabilizing, rehousing, and inventorying of specific collections at risk throughout the Smithsonian, including film and photographic collections, botanical 

and marine mammal specimens, military history objects, fossils, meteorites 

and minerals, anthropological artifacts, textiles, works on paper, space history 

objects, graphic arts, new media, cryo-collections, and paper-based archival 

collections. 

• Relocation of collections currently stored in substandard conditions at the 

Garber Facility in Suitland, Maryland. 

25. The GAO and others have talked about a specific financial total for the 

facilities backlog. Do you have any idea about the backlog in collections care? What would it cost, over how many years, to bring the most 

urgent collections into decent shape? 

Response: As mentioned above, the Smithsonian initiated Institution-wide collections assessment in fiscal year 2009 adapted from a survey tool successfully used 

by the National Museum of Natural History. Currently, the data and assessment 

methodology is being evaluated and refined. The resulting data will identify and 

quantify areas of need and improvement, establish ranking priorities, and determine 

associated costs. 

26. Does the Smithsonian have a rigorous system to determine which collections are the most important, and which could be given away? Are 

you able to give low priority artifacts away to other museums? 

Response: Yes. First of all, each Smithsonian collecting unit is required to develop 

and implement a written collections management policy and a collections plan to ensure the proper development, acquisition, preservation, documentation, use, and disposition of its collections based on the mission, strategic plan, and programmatic 

goals of the Smithsonian and the individual unit. Collections management policies 

establish general principles, authorities, and standards that govern the collections 

activities of the collecting unit, including acquisitions and deaccessioning. Collections plans provide a rationale for the collections and direct decision-making regarding acquisition, deaccessioning, resource allocation, and other aspects of building 

and sustaining the collections. Together, they ensure logical, responsible collections 

growth by establishing well-defined goals and priorities that guide collections activities. 

In order to provide responsible management of the collections, potential acquisitions 

undergo a rigorous selection and review process. Smithsonian collecting units actively assess the degree to which potential acquisitions and existing collections are 

consistent with the mission and goals of the unit; enhance objectives in exhibition, 

research, or educational programs; and can receive appropriate care and preservation. Prudent collections management also includes judicious review, evaluation, 

deaccessioning, and disposal of existing collections to refine and improve the quality 

and relevance of the collections. Collection items selected for deaccessioning because 

they are duplicative, redundant, of lesser quality or have insufficient relationship 

to the mission and goals of the collecting unit are often donated or transferred to 

other museums and non-profit educational or research institutions. 

AMERICAN RECOVERY AND REINVESTMENT ACT—ARRA

27. The Smithsonian received $25 million in the American Recovery and 

Reinvestment Act earlier this year. Please refresh our memory regarding how you have used these funds, and what your progress has been 

at getting work done promptly. 

Response: The Smithsonian is very grateful for the $25 million in ARRA funds that 

permitted us to address high priority revitalization in three categories: 

1. Arts and Industries Building—$4.6 million Exterior Masonry Repair, Selected Interior Demolition and Hazardous Material Removal 

2. National Zoological Park—$9.7 million Fire Protection, Medium Voltage 

Equipment, Repair Bridges, Renew Roofs, Replace Barns 

3. SI-wide Revitalization—$10.7 million High Voltage Equipment, Backflow 

Preventers, Emergency Generators, Elevators/Escalators 

Progress as of December 1, 2009 was: 

Obligated—$21,879,269 


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Outlayed (Expensed)—$6,306,555 (28 percent expensed denotes significant 

work/progress toward completion) 

Percentage of Projects Started—100% (16 projects total) 

LEGACY FUND AND THE ARTS AND INDUSTRIES BUILDING RESTORATION

28. The fiscal year 2010 appropriations act redirected $30 million of previously appropriated funds intended for various cost-share facilities 

projects to now be used to restore the Arts and Industries Building on 

the National Mall, if matched with private funds. Please tell us more 

about how and when you plan to use these funds, and what your immediate plans are for this building. How long will it take to get Arts and 

Industries open and useful again? What are your plans for its use? 

Response: We are moving forward with renovation of the Arts and Industries 

Building. With federal funds provided in the fiscal year 2010 Interior bill ($12.6 million) and the American Recovery and Reinvestment Act ($4.6 million), we are beginning roof replacement, repairing the masonry, removing hazardous materials and 

removing some interior partitions. 

In consultation with some of the most imaginative experts in the country, who are 

donating their services, we have developed a comprehensive program for the content 

of the building, and are hard at work to actualize that program with dynamic and 

exciting designs. When it reopens, ideally in 2015, the Arts and Industries Building 

will serve as a gateway to the Smithsonian and provide an intersection between our 

education program and the four Grand Challenges identified in our new Strategic 

Plan. We have evidence of major donor interest, especially with regard to the innovative technology we will deploy in order to create a truly exciting experience for 

our visitors, both in person and online. I am confident the new language of the Legacy Fund will be a great incentive for donors. 

The goal in the rehabilitation of this building is to learn from the ‘‘green’’ technologies of the past and make the building a showplace for the future, incorporating 

sustainable features for energy reduction, and use of natural day lighting and water 

capture from the 2.2 acre roof for reuse in garden irrigation. 

SCIENTIFIC AND CULTURAL PROGRAMS

29. Your strategic plan is pretty clear that science is a big part of what the 

Smithsonian is all about. I think that fact is not fully appreciated here 

on the hill, or with the public. I know that your science programs are 

first rate, but it is not clear to me how the Smithsonian coordinates 

and integrates its science programs with other Federal science providers, such as the USGS and elsewhere. What will you do to better explain the role of the Smithsonian in various scientific disciplines? 

Response: The Smithsonian coordinates its science programs with other federal 

science providers through national and international scientific planning processes at 

the institutional level, as well as collaboration at the project and scientist level. In 

a number of cases, including NOAA’s National Marine Fisheries Service, scientists 

from other government agencies are assigned to work in the Smithsonian to use the 

National Collections as a major part of their jobs. This unheralded interagency collaboration has been going on for well over 100 years and results in both reduced 

costs to the government and better integrated science. In recent years, the Smithsonian has increased its involvement in interagency processes under the National 

Science and Technology Council and State Department processes. In addition to participating in many subcommittees and working groups, we co-chair the Interagency 

Working Group on Scientific Collections and the Task Team on Earth Observations. 

We also participate in National Research Council activities such as the Decadal Surveys in astronomy, and international activities such as those of the OECD Global 

Science Forum and GEO/GEOSS in Earth observations. 

The Smithsonian has been developing better means to highlight our role in various 

science disciplines, and continuing to do so is a major emphasis of the new Strategic 

Plan. The Office of Public Affairs has designated a press officer to focus on this challenge and works closely with the Office of the Under Secretary for Science in promoting science at the Smithsonian, including a new science web site oriented for the 

general public, and regular briefings on science for the news media. We have been 

hosting more meetings and conferences as part of our outreach, for example, organizing recent scientific symposia on topics such as rates of tropical extinction and 

high profile international events such as the GEO plenary and Antarctic Treaty 

50th Anniversary Summit in November 2009. 


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30. Does the Smithsonian have a significant role in climate change research given your extensive biological, geological, and paleontological 

expertise? Are you coordinating with other Federal agencies, such as 

those funded in the Interior bill? 

Response: Smithsonian research provides key data, theoretical advances, and testing of new measurement methodologies in the larger federal climate change research program. We work closely with other agencies on much of the research and 

coordinate with these agencies through the US Global Change Research Program 

and the US Group on Earth Observations under the National Science and Technology Council. While the Smithsonian does not itself do integrated climate modeling (a job of other organizations), our work on carbon sequestration, forest dynamics, coastal and marine ecology, atmospheric composition and the long view from paleontology all integrate into the models and parameter development. The strength 

of the unique contribution made by Smithsonian research comes from the long-term 

understanding of the natural baselines and the study of how individual species and 

ecosystems respond (historically and currently) to climate change and habitat 

change. 

An example of our work in carbon sequestration and forest dynamics is SIGEO, a 

global observational platform that we lead with 20 other nations to observe the response of forests to climate change. 

Also, through the Smithsonian Online Education Conference: Climate Change, participants, alongside scientists and curators, explored Smithsonian research and collections related to the evidence, impact, and response to climate change. 

PERSONAL PROPERTY INVENTORY

31. The Inspector General’s recent report indicated that $12 million in personal property cannot be accounted for. Does this mean these items 

were pilfered? Do you know what the amount of non-accountable property is per year? How does this compare with other federal agencies 

and institutions? 

Response: There is no evidence that any property was stolen. In the past, when 

the Institution researched unaccounted-for items, we have generally found that 

lapses in documentation, not theft, had led to the unaccounted-for status. This is 

not to say that theft can be ruled out completely. The IG has found weaknesses in 

our personal property accountability system, while noting that ‘‘the Smithsonian has 

made significant improvements to its personal property management in several 

ways.’’ The IG has made recommendations for additional improvements to the system, and management has accepted those recommendations and is working to implement them. Our fiscal year 2010 federal appropriation includes funding to hire 

three FTEs who will be dedicated to personal property management. According to 

the IG, in fiscal year 2009, 1% of property was missing and 1% was unrecorded. The 

General Services Administration (GSA) is the federal entity primarily responsible 

for issuing personal property management regulations and procedures. GSA has not 

issued comprehensive guidance on this issue, but instead refers federal entities to 

private sector resources. The Smithsonian’s rate of 2% missing or unrecorded property compares favorably with the industry standard of 2% issued by the American 

Society for Testing and Materials International (ASTM International), Standard 

E2221–02, Standard Practice for Administrative Control of Property. 

The SI goal of no more than 2% inventory variance representing loss (missing) and 

unrecorded (items found that have not been recorded in the ERP PeopleSoft Financial System) personal property assets as a result of inventory verifications is consistent with ASTM’s asset management standards. These include performance 

standards, practices, metrics, and methods of effectiveness for the conduct of management and administration activities for durable and movable assets (personal 

property management). 

Questions From Ranking Member Simpson 

QUESTIONS FOR SECRETARY CLOUGH

CLIMATE CHANGE

1. Climate Change: The Interior Appropriations conference report provided nearly $400 million for climate change related work. Nearly $7 million has been provided to the Smithsonian. As I’ve said throughout this 

2010 process, it’s been difficult to see whether or how all of these federal 


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climate change efforts are coordinated and strategically focused. Precisely what is the role of the Smithsonian with regard to climate change 

research? What type of coordination do you have with other federal government agencies to avoid duplication of efforts? 

Response: Smithsonian research provides key data, theoretical advances, and testing of new measurement methodologies in the larger USG climate change research 

program. We work closely with other agencies on much of the research and coordinate with these agencies through the US Global Change Research Program and the 

US Group on Earth Observations under the National Science and Technology Council. While the Smithsonian does not itself do integrated climate modeling (a job of 

other organizations), our work on carbon sequestration, forest dynamics, coastal and 

marine ecology, atmospheric composition and the long view from paleontology all integrate into the models and parameter development. The strength of the unique contribution made by Smithsonian research comes from the long-term understanding 

of the natural baselines and the study of how individual species and ecosystems respond (historically and currently) to climate change and habitat change. 

SMITHSONIAN PRIORITIES AND NEW MUSEUMS

2. Smithsonian priorities: There will always be tremendous interest among 

various constituencies to build even more Smithsonian museums. The 

National Museum of the American Indian, I believe, is the newest museum. The National Museum of African American History and Culture 

has been authorized by Congress and this project is in its early stages. 

I’m hoping that Eva Longoria will be calling soon to encourage my support for the National Museum of the American Latino. Do we ever reach 

the point where we say, ‘‘We’re done building museums until we can better maintain what we already have?’’ Is it unreasonable to suggest that 

we address unmet needs of the Smithsonian—like digitization of records 

and preservation of historic collections—before taking on new, costly 

projects? 

Response: The Smithsonian does not propose new museums. We are focused on 

managing what we have, and our highest priority is the care of existing museums, 

collections and programs. However, when Congress enacts legislation that requires 

the Smithsonian to build and operate a new museum, we do our best to meet that 

mandate. With your help, we are also devoting resources to digitization and preservation of historic collections, which will help us broaden access and reach new audiences. 

COLLECTIONS

3. Preservation of collections: Earlier this week, our Committee staff visited your campus at Suitland and saw firsthand how some of the Smithsonian collections are being stored and preserved. I know that progress 

has been made in building state-of-the-art storage for some collections 

but am also told that many of the Smithsonian’s prized possessions are 

being stored in several dilapidated buildings at the Garber site which 

are in severe need of repair and restoration. Do you expect your fiscal 

year 2011 budget request to include funding for addressing these needs 

for collections in these buildings? 

Response: Constructed between the late 1940s and early 1960s, the Butler-style 

buildings at the Garber Facility in Suitland, Maryland, were originally designed as 

temporary 25-year structures. Although some buildings have been renovated, many 

have long passed their useful lifespan, are structurally compromised, and are substandard facilities for storing collections. Environmental conditions are inadequate 

and hazardous to the collections while overcrowding severely restricts physical access, preservation, and use of the collections. 

Recently, the Smithsonian has taken a number of corrective actions to improve the 

care of collections from the National Museum of American History and National Air 

and Space Museum which are stored at Garber: 

• Last year, the National Museum of American History (NMAH) completed the 

move of portions of their collections stored at Garber and two other off-site locations in Virginia to the new Pennsy Drive collections storage facility. However, 

NMAH’s storage space at Pennsy Drive is now fully occupied. 

• The National Air and Space Museum (NASM) has upgraded micro-climate storage containers and rehoused the space suit and aviation clothing collections 

stored at Garber, thereby improving their overall preservation and access. 


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• The pending completion of Udvar-Hazy Center Phase Two will enable NASM 

to move 75 percent of the Museum’s collections from Garber to a state-of-theart collections storage facility. 

Improving the care and preservation of collections currently stored at the Garber 

Facility is and will continue to be a priority for the Smithsonian. Future budget requests will support the relocation of collections currently stored in substandard conditions at the Garber Facility and the development of the site to address the longterm storage needs of the Smithsonian. 

OUTREACH

4. Smithsonian outreach beyond the Beltway: One of the laudable goals of 

your strategic plan is to open the resources of the Smithsonian to millions of people including minorities, people in rural areas (which is appealing to a state like Idaho), and other underserved populations. Can 

you provide for us your vision of how this is achieved? Do you have any 

specific timelines for achieving these goals? To what extent will the 

Smithsonian depend upon philanthropic giving versus federal funding? 

What are the total costs involved? 

Response: In the implementation of the strategic plan, we intend to continue and 

expand our longstanding initiatives to reach out to the people of the United States 

and around the world. We will build upon the strengths that already exist, including 

our Smithsonian Institution Traveling Exhibition Service (SITES), now in its 58th 

year, which currently circulates over 50 exhibitions each year to all 50 states on a 

wide variety of topics. SITES is a national leader in developing exhibitions that celebrate our diverse cultural heritage as well as scientific and technological innovations, and exhibitions currently in development and being circulated highlight the 

lives and achievements of African Americans, Latinos, Asian Pacific Americans, Native Americans, and others. Another key initiative is SITES’ Museums on Main 

Street (MoMS) program: SITES travels to the underserved populations of rural 

America and places its exhibits in non-traditional venues, such as community centers, libraries, and shopping malls. As we go forward, we hope to enhance and augment our outreach through exhibitions around the country. 

SITES works in concert with our Smithsonian Affiliations Program; with over 160 

affiliates in 41 states, Puerto Rico, Panama, and the District of Columbia, the Affiliations Program goes far beyond the Beltway to bring Smithsonian programs, exhibits, and expertise to museums and cultural institutions throughout the country. Latest data indicate that over 7,500 Smithsonian artifacts have been displayed by Affiliates. In addition, numerous Smithsonian scholars have participated in programs 

in science, history, and art education at Affiliate locations; workshops, internships, 

and visiting professionals programs have enriched the careers of staff in affiliated 

institutions. 

In addition to SITES and Affiliations, many other programs take the Smithsonian 

beyond the Beltway to millions of people, many of these programs are delivered via 

Smithsonian websites. Web-based delivery systems and Web 2.0 interactive technologies, Smithsonian on-line video conferences, webinars, and museum-to-school 

distance learning initiatives all show us enormous potential for the future. Our partnership with the Council of Chief State School Officers (CCSSO) and our on-going 

programs with State Teachers of the Year are also important conduits for reaching 

all 50 states. We recently began a series of Smithsonian Education Online Conferences. These free conferences and archived sessions reached over 10,000 people 

in all fifty states and over 80 countries, representing a diverse audience. The conferences focus on topics in science, history, culture, and art and are based on Smithsonian research and collections. 

All of our educational resources are available on SmithsonianEducation.org, including lessons plans, digitized images, downloadable tours, and website links. Teachers 

and parents can easily find educational resources using a search engine that links 

resources to state educational standards and topics of interest. 

The Smithsonian’s National Science Resources Center, in partnership with the National Academies (National Academy of Sciences, National Academy of Engineering, 

and National Institute of Medicine) offers leadership development programs and resources designed to improve K–12 science education. We are working with the Department of Education and CCSSO to deliver these and other education programs 

to underserved populations. 

In implementing our strategic plan, we plan to use information technology initiatives to share our vast collections and extensive research. We need to develop the 


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enterprise systems and shared resources and services to deliver our assets via a 

technological framework that will enable users everywhere to experience the Smithsonian. Funding from federal and outside sources, both dollars and in-kind gifts, will 

be needed to accomplish our goals. 

5. Educational programs: Your testimony highlighted many of the Smithsonian educational programs available to students of all ages. What is the 

extent of your outreach to local school districts, colleges, universities, 

and other avenues for learning? Do you have specific educational outreach geared specifically to seniors? Or, if I’m not in school, but am curious by nature and don’t have the means to travel to Washington, DC, 

how does one become aware of these opportunities? 

Response: The Smithsonian has a memorandum of understanding with the Council 

of Chief State School Officers (CCSSO) that details how the two organizations work 

together to deliver Smithsonian content to school districts throughout the country. 

One outcome is recruiting Teachers of the Year from across the country to serve as 

Smithsonian Ambassadors, offering local workshops on how to access and use 

Smithsonian resources. In addition, Smithsonian in Your Classroom, filled with content essays and classroom-ready lessons, is mailed semi-annually to all public and 

private elementary and middle schools in the United States and Department of Defense Education Authority, and current and back issues are also available on line. 

The Smithsonian American Art Museum, in partnership with the Department of Defense Education Activity, provides professional development, curriculum resources 

and videoconferences for K–12 teachers and students in schools for children of military service members located on bases in the U.S., Europe, and the Pacific. 

For the past 24 years, the Smithsonian’s National Science Resources Center (NSRC) 

has leveraged the research and expertise of the Smithsonian and the National Academies to develop much needed science education materials for the classroom in partnership with government agencies, academic institutions, corporations, and museums. NSRC materials are now used in K–12 science programs in more than 1,200 

school districts, representing 30% of the U.S. student population, or 19 million students. 

For outreach to colleges and universities, the Smithsonian hosts over 1,000 college 

students annually, representing all fifty states, who take part in internships across 

the Institution. In addition, the Smithsonian has a ten-year partnership with Montgomery College in Maryland to offer faculty seminars and professional development 

opportunities and is currently exploring offering these same opportunities to college 

faculty across the country through online courses. Hundreds of opportunities for 

graduate, predoctoral, postdoctoral and senior fellowships are available through the 

Office of Fellowships, which posts opportunities for research and study on-line at 

http://www.si.edu/ofg/fellowopp.htm and circulates them to universities around 

the country. More than 110 of such opportunities were awarded in 2009. 

For outreach to seniors, the Smithsonian Education Online Conferences are available to anyone interested in the topic. Based on registration from previous two conferences, many seniors participated individually or through organizations such as 

Garden Clubs, VFWs, and senior centers. In addition, to better serve families, the 

Smithsonian publishes a Grandparents’ Guide with suggestions for enhancing intergenerational museum visits. 

All of these opportunities are promoted on www.si.edu and 

www.SmithsonianEducation.org, and in Smithsonian magazine, Smithsonian in 

Your Classroom, Go Smithsonian (our museum guide), education e-newsletters sent 

to teachers, and various types of social media. 

ARTS AND INDUSTRIES BUILDING

6. Arts Industries Building/National Museum of African American History: 

The renovation of the Arts and Industries Building and the construction 

of the National Museum of African American History and Culture are 

two major undertakings. What are the timelines and costs involved for 

each project? How is the Smithsonian budgeting for these endeavors? 

Has an ultimate use been determined for the Arts and Industries Building once the renovation is completed? 

Response: The timelines and cost estimates are outlined on the table below. 


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Arts & Industries Building (AIB) NMAAHC 

FY10 ........................ Design—complete Roof, Windows, 

Structure, bid and award; write 

scope for Core phase of work.

Design—kick-off design, complete three concept alternatives; complete Environmental Impact Statement. 

Construction—complete Exterior Masonry Repairs and Selected Demo/ 

Hazmat.

FY11 ........................ Construction—begin Roof/Windows/ 

Structure.

Design—complete 35% construction documents. 

Design—award and begin Core; award 

and begin Interior Outfitting and Exhibits.

FY12–15 .................. Construction—complete Roof/Windows/ 

Structure; bid and award Core, 

begin Core.

Design—complete 100% construction documents. 

Design—completed ............................... Construction—begin site work, begin building. 

FY15 ........................ Construction—complete 100% exhibits Construction—complete 100% building; complete 100% 

exhibits. 

Reopen as Smithsonian Gateway .......... Open Museum. 

Total Project Cost ... $200–300 million .................................. $500 million. 

The revitalization of the Arts & Industries Building and the design and construction 

of the new National Museum of African American History and Culture are major 

undertakings that require thoughtful consideration of the effort and the impact 

their construction has on the rest of the revitalization needs of the Institution. Both 

projects will require substantial private funds. By law, the construction costs of 

NMAAHC are to be split equally between Federal and privately raised Trust 

sources. 

For AIB, the Federal responsibility is for the preservation and rehabilitation of the 

historic structure; therefore, as design progresses and costs are developed, those 

costs are reflected in the capital program. We are at the earliest stages of planning 

a campaign to secure private support for the contents and outfitting of the building. 

Fortunately, thanks to the American Recovery and Reinvestment Act, we are moving forward with $4.6 million in current construction to repair the exterior masonry 

and remove hazardous materials and some interior partitions, and the fiscal year 

2010 federal budget provides $12.6 million to begin replacement of the roof. In addition, the fiscal year 2010 federal budget provides $30 million for the Legacy Fund 

and directs that funding to the Arts & Industries Building, on condition that we 

match it with privately raised funds. 

In consultation with some of the most imaginative experts in the country, we have 

developed a comprehensive program for the content of the building, and are hard 

at work to actualize that program with dynamic and exciting designs. When it reopens, the Arts and Industries Building will serve as a gateway to the Smithsonian 

and provide an intersection between our education program and the four Grand 

Challenges identified in our new Strategic Plan. We have evidence of major donor 

interest in the innovative technology that we will deploy to create a truly exciting 

experience for our visitors—in person and online. I am confident the new language 

of the Legacy Fund will be a great incentive for donors. 

Smithsonian’s goal in the rehabilitation of this building is to learn from the ‘‘green’’ 

technologies of the past and make the building a showplace for the future. We will 

be incorporating sustainable features for energy reduction, and the use of natural 

day lighting and water capture from the 2.2 acre roof for reuse in garden irrigation. 


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7. Smithsonian annual attendance: In your testimony, you noted that your 

attendance was roughly 30 million visitors during the last fiscal year, an 

increase of nearly 6 million visitors. To what do you attribute this remarkable increase? Is that a record number of visits for one year? 

Response: Six million additional visitors brought us back to a level of attendance 

last seen before 9/11. We believe the increase is attributable to several factors. The 

National Museum of American History reopened to the public in early fiscal year 

2009 after being closed for two years. The Presidential Inauguration in January 

2009 provided a sizeable increase in attendance. Also, Smithsonian museums 

opened 90 new exhibitions during the year. We also believe that the release of the 

feature film ‘‘Night at the Museum—Battle of the Smithsonian’’ generated additional attendance. It was an excellent year, but fiscal year 2009 visitation was not 

an all-time record. Our highest visitation was in fiscal year 2001, when we recorded 

33.7 million visitors. 


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I N D E X 

Page 

American Recovery and Reinvestment Act—ARRA .............................................. 96 

Arts and Industries Building ................................................................................ 97, 101 

Asbestos Concerns.................................................................................................... 67, 93 

Biography: A. Sprightley Ryan ............................................................................... 42 

Biography: G. Wayne Clough .................................................................................. 65 

Biography: Mark L. Goldstein ................................................................................ 27 

Climate Change........................................................................................................ 74, 98 

Collections: Condition and Care ........................................................... 29, 49, 84, 95, 99 

Controls on Funding Purposes ............................................................................... 43 

Cross-Unit Initiatives .............................................................................................. 49, 83 

Deteriorated Facilities ............................................................................................. 43 

Digitizing Smithsonian Information ...................................................................... 71 

Education and Science ............................................................................................. 73 

Efficient Use of Funding ......................................................................................... 54 

Facilities Condition and Maintenance Backlog ..................................................... 81, 92 

Financial Discipline ................................................................................................. 28, 89 

Flexibility on Use of Appropriations Accounts ...................................................... 45 

Former Smithsonian Business Ventures Office .................................................... 75 

Fund Raising by Smithsonian................................................................................. 69, 72 

GAO Summary of Governance Reforms ................................................................. 3 

Information Technology and Security .................................................................... 49 

Management Controls ................................................................................. 28, 47, 81, 84 

Military Uniforms Collections ................................................................................ 77 

National Museum of African American History and Culture .............................. 70 

National Museum of the American Latino ............................................................ 70 

Opening Statement of Chairman Dicks ................................................................. 1 

Opening Statement of Mr. Simpson ....................................................................... 2 

Outreach ................................................................................................................. 53, 100 

Personal Property Inventory and Loss................................................................... 47, 98 

Previous Lapses in Governance .............................................................................. 43 

Questions from Chairman Dicks............................................................................. 79, 85 

Questions from Mr. Simpson .................................................................................. 98 

Recent Accomplishments ......................................................................................... 52 

Relationship between Federal Appropriators and Trust Portion of Institution . 76 

Role of Regents................................................................................................... 44, 75, 87 

Scientific and Cultural Programs ........................................................................... 97 

Smithsonian and GAO Interaction ......................................................................... 51, 77 

Smithsonian Governance and Management Reform................................. 48, 53, 79, 85 

Smithsonian Implementation of GAO Recommendations .................................... 3 

Smithsonian Priorities and New Museums ........................................................... 99 

Smithsonian Trust Funds ....................................................................................... 88 

Strategic Plan .......................................................................................................... 52 

Suitland Facility Problems ..................................................................................... 68 


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Testimony of GAO........................................................................................................ 3, 5 

Testimony of Inspector General.............................................................................. 28, 30 

Testimony of Smithsonian Secretary Clough......................................................... 51, 56 

Travel Policy and Audits ......................................................................................... 50 

Visitation Increase ................................................................................................. 70, 102 

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