MINUTES OF THE APRIL 29, 2013, MEETING

OF THE BOARD OF REGENTS

ATTENDANCE

This scheduled meeting of the Board of Regents was held on Monday, April 29, 2013. The Board 

conducted morning, afternoon, and executive sessions in the Regents’ Room in the Smithsonian 

Castle Building. Board Chair France Córdova called the meeting to order at 8:30 a.m. Also present

were: 

The Chief Justice 1 

Barbara Barrett

Stephen M. Case

Tom Cole

Shirley Ann Jackson

Sam Johnson

Robert P. Kogod

Patrick J. Leahy

John W. McCarter Jr. 

David M. Rubenstein

Roger W. Sant

Patricia Q. Stonesifer

Sakurako Fisher, Smithsonian National Board Chair

David Silfen, Investment Committee Chair

Vice President Joseph R. Biden Jr., Senator Thad Cochran, Senator Jack Reed, and Representative 

Xavier Becerra were unable to attend the meeting. 

Also present were: 

G. Wayne Clough, Secretary 

Patricia L. Bartlett, Chief of Staff to the Secretary 

Claudine K. Brown, Assistant Secretary for 

Education and Access

Amy Chen, Chief Investment Officer

Virginia B. Clark, Director of Advancement and 

Philanthropic Giving

Scott S. Dahl, Inspector General

Barbara Feininger, Office of the Regents Senior 

Writer-Editor (recorder)

Albert Horvath, Under Secretary for Finance and

Administration/Chief Financial Officer

Richard Kurin, Under Secretary for History, Art, 

and Culture 

John K. Lapiana, Chief of Staff to the Regents 

Judith Leonard, General Counsel 

Evelyn S. Lieberman, Director of Communications

and External Affairs 

Christopher Liedel, President of Smithsonian 

Enterprises

Nell Payne, Director of Government Relations 

Eva J. Pell, Under Secretary for Science 

Jeffrey P. Minear, Counselor to the Chief Justice 

Danielle Borrin, Assistant to the Vice President 

Tim Wolverton, Assistant to Senator Cochran

Kevin McDonald, Assistant to Senator Leahy 

Moira Lenehan-Razzuri, Assistant to Senator Reed

Sean Murphy, Assistant to Congressman Cole

David Heil, Assistant to Congressman Johnson 

Jefferson Hall, Staff Scientist, Smithsonian Tropical 

Research Institute 2 

Jennifer Jones, Armed Forces History Division Chair, 

National Museum of American History 2

Nancy Knowlton, Sant Chair in Marine Science, 

National Museum of Natural History 2

Steve Monfort, Director of the Smithsonian 

Conservation Biology Institute 2

 

Dennis Whigham, Senior Botanist, Smithsonian 

Environmental Research Center 2

 

1 The Chancellor, Chief Justice John G. Roberts, Jr., participated in the afternoon session.

2 Dr. Hall, Ms. Jones, Dr. Knowlton, Dr. Monfort, and Dr. Whigham participated in special presentations to the Board.
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MORNING SESSION

EXECUTIVE SESSION

The meeting of the Board of Regents began with an executive session, which was 

called to order by Board Chair France Córdova. The executive session adjourned at 

about 9:10 a.m.

REPORT OF THE BOARD AND EXECUTIVE COMMITTEE CHAIR

Introductory Remarks Board Chair France Córdova call the open session to order at 9:22 a.m. She thanked 

staff for their contributions towards the previous day’s donor recognition dinner and 

events. Dr. Córdova then welcomed Congressional Regent Tom Cole (R-OK) to his first 

Board meeting. Representative Cole, she said, is a member of the Chickasaw tribe, 

sits on the Interior Appropriations Subcommittee, and cochairs the Congressional 

Native American Caucus. Commenting that Representative Cole holds a Ph.D. in 

history from the University of Oklahoma, she noted that he also was a Thomas 

Watson Fellow and a Fulbright Fellow—honors named after two former Smithsonian 

Regents. Representative Cole expressed his appreciation for the privilege of joining 

the Board, and said that he looked forward to contributing to its efforts in support of 

the Smithsonian. 

Dr. Córdova acknowledged Barbara Barrett for her efforts to set up a photo shoot 

with Fortune magazine and those Regents who were able to participate. She thanked 

Governance and Nominating Committee Chair Roger Sant and the committee for 

leading the Regents’ response to the Inspector General’s audit of senior executive 

travel. She reported that that committee and the Compensation and Human 

Resources Committee will together implement the policy changes adopted in the 

Regents’ report. 

Dr. Córdova then reported on several new Smithsonian exhibitions that she had 

visited over the weekend, including the National Air and Space Museum’s Time and 

Navigation: Getting from Here to There, the National Museum of African Art’s (NMAfA) 

Earth Matters: Land as Material and Metaphor in the Arts of Africa, the National Museum

of the American Indian’s (NMAI) Cerámica de los Ancestros: Central America’s Past 

Revealed, and the Arthur M. Sackler Gallery’s The Cyrus Cylinder and Persia: A New 

Beginning. She encouraged Board members to tour the exhibitions. Dr. Córdova, as 

well as Patricia Stonesifer, also visited the Smithsonian Craft Show run by the 

Smithsonian’s Women’s Committee. The juried show, said Dr. Córdova, is recognized 

as one of the most high-quality crafts show in the United States. The Secretary 

interviewed this year’s honorary chair, Martha Stewart.

The Giant Magellan 

Telescope

The Carnegie Institution for Science invited Dr. Córdova to visit the site of the Giant 

Magellan Telescope (GMT) in late March 2013. Located in Las Campanas, Chile, the 

project is the collaborative effort of approximately 10 organizations and 

governments; it is expected to cost almost $1 billion when completed. Dr. Córdova 
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indicated that the first light would occur in 2019, and reported that the current 

estimate of the Smithsonian’s financial commitment totals approximately $90 million

in current dollars. Other sponsored guests included Ms. Barrett, Smithsonian 

Astrophysical Observatory (SAO) Director Charles Alcock, representatives of other 

current and prospective project partners. 

Dr. Córdova reported on the scientific goals of the project and the anticipated return 

on the Smithsonian’s investment. The 25-meter telescope’s light-gathering power will 

be 100 times larger than that of the Hubble Space Telescope and its resolution will be 

10 times sharper than that of the Hubble. It will help scientists probe distant events 

in the early universe to collect information about how, among other things, the 

Earth’s galaxy, star, and planet emerged. The unique science that the GMT could

yield includes information about the chemical evolution of the Universe, the 

detection of Earth-sized—and possibly life-bearing—planets orbiting other stars, and 

a better understanding of the fundamental physics of dark matter and dark energy.

The importance of the observatory’s location was explained by Dr. Córdova. Located 

in the Southern Hemisphere, where the center of the Milky Way Galaxy is best 

observed, Chile is heavily invested in astronomy’s global infrastructure. The country 

hosts a dozen outstanding observatory sites in the northern third of the country, 

where near-perfect conditions for observing the night sky exist. Dr. Córdova 

presented images of the site, an artist’s conception of the final telescope, and the 

fabrication of the telescope’s primary mirror, which is composed of seven mirrors 

designed by Roger Angel. [Dr. Angel recently was awarded the Kavli Foundation 

Prize—the highest award in the world to astronomers—for the mirrors’ design and 

fabrication.]

The project, said Dr. Córdova, is one of the most ambitious ever undertaken by 

mankind, and fundraising will be challenging. The Smithsonian’s participation, 

however, will be rewarded with scientific breakthroughs, and will inspire young 

people to better understand the evolution of the universe and mankind’s place in it. 

Ms. Barrett concurred that the Smithsonian’s participation in the GMT will allow it to 

participate in the most sophisticated direction in space exploration undertaken in 

generations. The GMT program, she said, will support the next step in human 

evolution by allowing mankind to understand its place in the universe. 

Ms. Stonesifer, who previously visited the Las Campanas Observatory, commented on 

the essential but challenging nature of fundraising for the GMT. The collaborative 

effort requires more than one donor, and different fundraising opportunities are 

being explored. 

Actions Between Meetings Dr. Córdova next updated the Board on actions taken by the Executive Committee on 

behalf of the Board since its January 2013 meeting. Approved were two gifts on the 

recommendation of the Advancement Committee; the submission of the Smithsonian’s 

fiscal year budget by the President; the establishment of an ad hoc campus master 

planning committee chaired by Robert Kogod; and a lease extension for office space at 

L’Enfant Plaza in Washington, D.C. 

Naming in Honor 

of Senator Daniel Inouye

Dr. Córdova reminded the Board of its recently approved motion expressing appreciation 

for the contributions of the late Senator Daniel Inouye. The Board of Trustees and staff of 
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NMAI subsequently asked that the Regents approve naming the museum’s Director’s 

Terrace in honor of Senator Inouye. If approved, said Dr. Córdova, NMAI Director Kevin 

Gover would announce the naming at a memorial ceremony scheduled for April 30, 2013. 

The motion was approved. 

See attached Action 2013.04.02 (Minutes of the Board of Regents, Appendix A).

Minutes of the January 28, 

2013, Board Meeting 

The minutes of the January 28, 2013, Board meeting were presented for approval. 

The minutes were approved without comment or revision.

See attached Action 2013.04.03 (Minutes of the Board of Regents, Appendix A).

Dr. Córdova then directed the Regents’ attention to a revised meeting agenda, copies of 

which were provided for the Board. The order of committee reports was modified to 

accommodate an unanticipated conflict in a committee chair’s schedule. 

REPORT OF THE SECRETARY

Awards and Recognitions The Secretary announced that, in addition to David Rubenstein, three 

Smithsonian staff were recently elected to the American Academy of Arts and 

Sciences: SAO’s David Lathum; the National Museum of Natural History’s (NMNH) 

Nancy Knowlton, who holds the Sant Ocean Chair; and the Smithsonian Tropical 

Research Institute’s (STRI) Richard Cooke. He congratulated Mr. Rubenstein for 

also receiving the Leonore and Walter Annenberg Award for Diplomacy through 

the Arts. 

SAO’s Irwin Shapiro was awarded the 2013 Einstein Award from The American 

Physical Society in recognition of outstanding accomplishments in the field of 

gravitational physics. The Smithsonian Channel, said the Secretary, was awarded 

a Peabody Award and Folkways recordings received two Grammy Awards.

Sequestration Update On April 16, 2013, the Secretary testified before House Committee on Oversight and 

Government Reform on the Smithsonian’s response to the proposed sequestration. 

He praised the preparations of Director of Government Relations Nell Payne and staff 

for the three-hour hearing, which also included the directors of two other Federal 

agencies. The hearing focused on each agency’s proposed response to the 

sequestration. The Secretary said that he believes that the Smithsonian’s plan was 

well-received as it demonstrates that the Institution can deal with the sequestration 

in the short term. He said, however, that a long-term sequestration will be more 

challenging. 

Sequestration resulted in a $42 million cut to the Smithsonian’s fiscal year 2013 

Federal budget. In response, the Smithsonian has made temporary cost-saving 

measures, including the institution of a hiring freeze; restrictions on staff travel; 

funding cuts for facilities maintenance; reduced investments for research and 

education; and reduced funds for contractors. In addition, some museum galleries 

will be temporarily closed from May 1 to September 30, 2013. Senior management, 
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said the Secretary, has worked hard to plan for and minimize the impact of 

sequestration. 

Should sequestration become permanent, the Smithsonian could lose $65 million in 

Federal appropriations annually. Under Secretary for Finance and 

Administration/Chief Financial Officer Al Horvath and his staff are developing 

response scenarios that will support a leadership retreat in July 2013, when a plan will 

be established to deal with the possibility of permanent reductions in Federal funding.

Fiscal Year 2014 Federal 

Budget Request

The Secretary then commented on the President’s fiscal year 2014 budget request for 

the Smithsonian, which he characterized as optimistic. The $869.2 million request 

includes $55 million for construction costs for National Museum of African American 

History and Culture (NMAAHC), which would almost complete the Federal 

commitment to the project, as well as $21 million to expand NMAAHC staffing. 

Funding for program increases includes $2.4 million for the collections care initiative 

and $2.3 million for the digitization initiative. Also included is $25 million for STEM 

education, which, to date, the Smithsonian has pursued through collaborative efforts 

with other Federal agencies. The President’s budget, said the Secretary, recognizes 

the important contributions the Smithsonian has made to STEM education, as well as 

other significant work the Smithsonian is advancing. 

Trust Budget Update Secretary Clough reported that the state of the Trust budget is good. Smithsonian 

Enterprises (SE) year-to-date revenue is ahead of comparable figures from fiscal year 

2012. SE President Chris Liedel, said the Secretary, is generating ideas to continue 

boosting SE revenues. He thanked Investment Committee Chair David Silfen, the 

committee, and Chief Investment Officer Amy Chen for their effective management of 

the Endowment. 

Sponsored research is ahead of last year’s performance. Fundraising for the national 

campaign has achieved 34 percent of its fiscal year 2013 “stretch” goal, and 45 

percent of the overall working goal for the campaign. Fundraising for the NMAAHC is 

up. 

Digital Activities and 

Partnerships

The Secretary reported that the Smithsonian’s digital activities are strong, and said 

that a full report would be provided to the Board at its June 2013 meeting. Access 

continues to expand and be consumed; web visitation is significantly higher than 

figures from the prior year.

The Smithsonian signed a Memorandum of Understanding with Internet2, and is the 

only organization of its type to have a channel on the superfast network. The 

network supports increased digital access to approximately 24 million students in 

some 220 U.S. colleges and universities, as well as members in partner corporations, 

government agencies, nonprofit groups, and research and education networks in 

more than 50 countries, including those in Asia and Europe.

The Secretary reported on a new partnership with the Digital Public Library of 

America (DPLA), which will provide links to the Smithsonian’s cultural and scientific 

content. The DPLA pilot project offers a virtual library by combining and centralizing

links to collections of participating cultural institutions. The Secretary recognized the 
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contributions of Smithsonian Institution Libraries Director Nancy Gwinn in this effort.

SE’s agreement with Gale Cengage has resulted in the archival preparation of digitized 

material from Smithsonian and Air & Space magazines. The searchable content will 

be available for purchase in May 2013.

Talks continue with Oak Ridge National Laboratory and the Institute for Computing in 

Humanities, Arts, and Social Science at the University of Illinois at Urbana-Champaign. 

A substantive partnership will be developed to analyze the Smithsonian’s efforts to 

link its archival materials. 

The Smithsonian American Art Museum, in collaboration with the University of 

Southern California, is participating in a consortium to develop a digital, virtual 

museum. Linked to Cloud technology, the open data system will support the 

seamless search of content from stand-alone websites.

The Smithsonian was selected to participate in the Presidential Innovation Fellows 

program. Two private-sector technology professionals will develop a pan-institutional 

crowdsourcing platform for the Institution. The Secretary thanked ad hoc external 

advisory committee members Steve Case and U.S. Chief Information Officer Steve 

VanRoekel for their contributions towards this effort, as well as Smithsonian National 

Board member Judy Huret and her husband, Bob Huret. Support from the Hurets will 

fund the positions. 

Education Four units are bridging the gap between formal and informal education through 

digital badging. The successful pilot program, which has enrolled 2,300 classrooms, 

offers 127 badges. Over 1,300 badges have been awarded to date, and 20 additional 

units have expressed interest in pursuing badging initiatives. The Secretary also 

reported that SE is introducing an “augmented reality” mobile app. 

The reach of Smithsonian education also has been expanded through digitization. 

Secretary Clough noted, however, that the basis of education remains grounded in 

the student-teacher interaction. The Smithsonian’s most successful efforts in that 

area are reflected in its selection for a $25 million i3 grant from the U.S. Department 

of Education, along with $7 million in matching funds. Under the leadership of 

Assistant Secretary for Education and Access Claudine K. Brown, a Smithsonian 

Science Education Center (SSEC) educational model reached 75,000 students, most of 

whom live below the Federal poverty line, over a five-year period. The Secretary 

reported that SSEC’s Leadership and Assistance for Science Education Reform (LASER) 

model was recently assessed as one of the highest-ranked programs in the initiative; 

it is now eligible for the next level of grants, which total up to $50 million. 

Grand Challenge Consortia All four Grand Challenge Consortia, said the Secretary, continue to make strong

progress. He cited “Earth Matters” as an example of a successful Consortia 

collaboration. “Earth Matters” partners include NMAfA, Smithsonian Gardens, 

NMNH, the National Museum of American History (NMAH), and the Smithsonian 

Environmental Research Center (SERC). 

Personnel The Secretary commented on successful conclusion of recent director searches. 
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Recent appointments include Kim Sajet (director of the National Portrait Gallery), 

Michael Mason (director of the Center for Folklife and Cultural Heritage), Kate Haw 

(director of the Archives of American Art), and Molly Fannon (director of the Office of 

International Relations). He thanked Under Secretary Kurin for his leadership of three 

of the search efforts.

Construction Updates Secretary Clough briefly commented on several major construction projects. The 

construction of the Arts and Industries Building (AIB) shell is 92 percent complete; 

window installation is ongoing. Interior upgrades will support the interim use of the 

building, which will begin in 2014.

The Secretary reported that unexpected site conditions have challenged the 

construction of NMAAHC. He commented on the NMAAHC project team’s efforts to 

address the problems, and said that the team continues to work towards opening the 

new museum in November 2015. 

Progress continues on the development of a master plan for the Smithsonian 

buildings on the south side of the National Mall. The plan will connect—both above 

and below ground—the Hirshhorn Museum and Sculpture Garden, AIB, the

Smithsonian Castle, the S. Dillon Ripley Center, NMAfA, the Arthur M. Sackler Gallery, 

and the Freer Gallery of Art. 

Concluding Remarks Dr. Córdova thanked the Secretary for his report. She thanked Secretary Clough for 

his leadership, which she characterized as “truly outstanding.” The Board concurred 

with an extended round of applause.

REPORT OF THE INVESTMENT COMMITTEE

Investment Committee Chair David Silfen reviewed the performance of the 

Endowment with the Board. Noting that the Endowment has benefited from careful 

management over the past several years, Mr. Silfen said its performance over 

calendar year 2012 was especially strong and significantly above benchmark. As of 

March 31, 2013, assets stand at a record high of $1,149.2 million. With regard to final 

calendar year 2012 results, the Endowment ranked in the first quartile in the

Cambridge Associates peer universe of endowments and foundations. Mr. Silfen also 

reported that asset allocations are essentially in line with policy targets, and liquidity 

continues to be carefully monitored. 

The Endowment has outperformed the S&P 500 and its volatility has been 

substantially lower since the 2005 establishment of the Investment Committee. Mr. 

Silfen commented on the growth of the Endowment payout since 2004. The 

committee, he said, continues to closely monitor and discuss asset allocation with 

regard to the Endowment’s ability to achieve its long-term objective to return 5.5 

percent plus inflation.

Significant portfolio changes that occurred during 2012 were reviewed. Fifteen new 

investments were made in calendar year 2012, and six manager relationships were 

modified. With regard to calendar year 2013, the emerging markets portfolio will 
8 

continue to be restructured, private equity and venture capital benchmarks will be 

reviewed and potentially recalibrated, and private real assets will continue to be 

moved closer to the upper range of the policy portfolio.

With regard to operations, Mr. Silfen congratulated the Office of Investments (OI) for 

the successful completion of the fiscal year 2012 audit. The audit, which was 

completed one month ahead of the prior year, did not result in any material findings 

or reportable conditions in the Smithsonian’s management of investment assets. He 

reported that OI staff was in the final stages of appointing a new investment 

custodian following a detailed search. Also, OI will again sponsor an internship 

program this summer to support ongoing research and short-term projects.

Mr. Silfen expressed his appreciation for the contributions of the Investment 

Committee and OI staff. Dr. Córdova thanked Mr. Silfen for his commitment and 

leadership over the past eight years, a sentiment that Mr. Sant strongly endorsed. 

Mr. Sant also thanked Chief Investment Officer Amy Chen and her staff for their 

contributions to the successful management of the Endowment.

The Board then discussed the management of endowment contributions, both 

pledged and received, during the capital campaign. Mr. Horvath noted that received 

funds that are earmarked for capital projects are held temporarily in restricted 

accounts, not the Endowment. Ms. Stonesifer asked about the Smithsonian’s 

investment policy for short-term investments. Ms. Chen explained that funds are 

conservatively managed and invested in short-term treasuries and agencies. The 

account is under the purview of the Finance Committee. The portfolio, added Mr. 

Silfen, is very liquid. 

REPORT OF THE ADVANCEMENT COMMITTEE

Update on the National 

Campaign 

Advancement Committee member Barbara Barrett provided the Committee’s report. 

As of March 31, 2013, reported Ms. Barrett, 34 percent of the fiscal year 2013 

fundraising goal has been raised. Fundraising for the total working campaign goal is 

ahead of schedule, standing at 45 percent. 

Ms. Barrett reported on fundraising for the NMAAHC. Over $101 million has been 

raised to date towards the museum’s $250 million private fundraising goal. It is 

anticipated that an additional $30 million will be secured by the end of the fiscal year. 

The Advancement Committee, said Ms. Barrett, is pleased with the work of NMAAHC 

Director Lonnie Bunch and the NMAAHC Council. 

During its last meeting, said Ms. Barrett, the Advancement Committee reviewed and 

approved key milestones that must be reached prior to the October 2014 public 

kickoff of the national campaign. The milestones include raising 60 percent of the 

total campaign goal, as well as securing contributions from all campaign steering 

committee members and the majority of Smithsonian advisory board members. The 

Advancement Committee, she said, will work with the Executive Committee should 

the milestones necessitate modifications to the campaign reporting schedule. Ms. 
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Barrett expressed the campaign steering committee’s appreciation for the outreach 

efforts that have been made on behalf of the campaign.

Gift Actions Ms. Barrett presented four proposed actions for the Board’s approval: three gift

agreements and one request for the establishment of a quasi-endowment. Each, she 

said, reflects campaign priorities and conforms with Smithsonian gift policies and 

procedures. The motions were approved en banc.

See attached Actions 2013.04.06–2013.04.09 (Minutes of the Board of Regents,

Appendix A).

REPORT OF THE AUDIT AND REVIEW COMMITTEE

Fiscal Year 2012 Financial 

Statement and 

Management Letter

Audit and Review Committee Chair John McCarter reported that the fiscal year 2012 

financial audit conducted by KPMG, the Smithsonian’s external auditor, resulted in an 

unqualified opinion. No material weaknesses or significant deficiencies were 

identified. Some areas for improvement were recommended in the audit 

management letter, and action plans have been created by management to resolve 

the identified issues. Mr. McCarter also reported on an internal control issue 

experienced by KPMG, noting that it did not impact KPMG’s work for the Smithsonian.

Inspector General’s Update Mr. McCarter reported that Inspector General Scott Dahl reported on the areas 

identified for review in the Office of the Inspector General’s (OIG) fiscal year 2014 

audit. The committee, he noted, agrees with the annual audit plan, which will include 

reviews of construction management, collections stewardship, financial management, 

and cash management. Mr. Dahl also reported to the committee on the investigation 

of stolen parking revenues at the Udvar-Hazy Center and updated the Board on that 

matter. He indicated that a former contract parking lot supervisor pled guilty to 

conspiring to steal more than $1.3 million from the Smithsonian, and a defendant 

who previously pled guilty was sentenced to 27 months imprisonment and ordered to 

pay restitution. Also, the Smithsonian is working with the U.S. Department of Justice 

to pursue civil recovery against PMI, the former parking contractor, and to retrieve 

stolen and forfeited proceeds. The OIG, said Mr. Dahl, is working with Smithsonian 

Enterprises (SE) staff and the Office of the Under Secretary for Finance and 

Administration to identify areas of vulnerability found during the investigation of 

parking cash-handling operations. 

Dr. Córdova commented on the quantity of stolen monies and the apparent lack of 

operations oversight. Mr. Dahl said that his office is working with Under Secretary Al 

Horvath and his staff to review how revenues from approximately 95,000 cars were 

diverted, and to prevent such an occurrence in the future. Mr. McCarter said the 

investigation identified the scope of the oversight failure; it also made clear that the 

sole responsibility for these business operations should not remain under the control 

of museum directors, whose primary responsibility is running museums. Going 

forward, parking operations at Udvar-Hazy will be overseen by SE.

Mr. Liedel said that OIG and finance staff supported SE efforts to assume 

management of the parking operations on April 14, 2013. Tracking data is being 
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collected to support transparent business operations, as well as to provide 

information for control improvements.

Mr. Horvath said that accounting controls for the prior operation were strong, given 

what was understood about the process, but that the physical controls were 

compromised. He said that SE’s management has instilled confidence in the 

operation, and that other enhancements to cash handling procedures have put the 

Smithsonian on track to implement the recommendations from Booz Allen Hamilton’s 

(BAH) review of the issue. Mr. Horvath reported that new audit procedures have 

been implemented with regard to third-party contractors, and that all contractor 

relationships will be audited by the end of the fiscal year. He stated that he agrees 

with BAH’s recommendation that the Smithsonian, wherever possible, standardize 

and consolidate its cash management operations. Over the next nine months, said 

Mr. Horvath, the facility will look to move away from the physical management of 

funds to electronic payments.

Ms. Stonesifer noted that, because of revenue-sharing concerns between some 

museums and SE, several museum directors maintain responsibility for certain cash 

handling procedures. She suggested that, in light of the Udvar-Hazy incident, the 

Audit and Review Committee might consider reviewing whether this practice should 

continue.

Mr. McCarter reported that the committee also discussed other OIG reports and work 

plans, made minor modifications to the Committee’s charter, and reviewed its 

calendar to ensure that the committee is meeting its responsibilities. 

REPORT OF THE FACILITIES COMMITTEE

Committee Update Facilities Committee Chair Robert Kogod reported that the committee met in 

February 2013, at which time it reviewed the Smithsonian’s facilities capital and 

maintenance requirements and was updated on specific initiatives and major 

construction projects. As per national industry standards, said Mr. Kogod, the size of 

the Smithsonian’s facilities portfolio annually requires approximately $150 million to 

address facilities capital requirements and $100 million for facilities maintenance. 

These costs, said Mr. Kogod, are never fully funded in the Smithsonian’s Federal 

budget, and he commended the efforts of the Office of Facilities Engineering and 

Operations (OFEO) to carefully monitor the condition of Smithsonian facilities to avert 

any crises from system failures. He noted that the facilities cannot continue to 

operate under these conditions, and said that the Smithsonian must make every 

effort to get increased funding for its facilities capital and maintenance requirements.

In April 2013, the Regents’ ad hoc campus master planning committee held its first 

organizational meeting with engineering and architectural firm BIG. The committee 

discussed the goals, process, and timing of the campus master planning initiative, 

which will primarily address the underground facilities on the south side of the Mall 

campus. The Board will continue to be apprised on the initiative’s progress.

The Secretary, said Mr. Kogod, also reported on specific projects, such as the AIB shell 
11

revitalization project and the renovation of Cooper-Hewitt, National Design Museum. 

The projects are progressing as planned, and are largely within budget and on 

schedule. Mr. Kogod said that the committee will closely examine progress on the 

NMAAHC construction project over the coming months and will provide a more 

comprehensive report on that initiative to the Board at its October 2013 meeting.

Discussion of Facilities 

Maintenance Backlog

For the benefit of newer Regents, Ms. Stonesifer asked Mr. Kogod to explain the state 

of the Smithsonian’s facilities maintenance backlog eight years ago, and the efforts 

that have been made since that time to address that issue. She said that the 

Smithsonian has made significant progress in turning the backlog around, and noted 

the contributions of Mr. Kogod, former Acting Secretary Cristián Samper, and 

Secretary Clough to that effort. She expressed concern, however, that current 

Federal funding shortfalls might put the Smithsonian again on a path towards a 

backlog of deferred maintenance problems. Mr. Kogod concurred with her 

assessment. 

Mr. Kogod explained that, historically, funding for the Smithsonian’s facilities capital 

and maintenance requirements had not received sufficient attention. In response, 

the Facilities Committee worked with OFEO to identify the current and long-term 

needs of the Smithsonian’s facilities. Mr. Kogod stated that significant progress has 

been made to address the backlog but emphasized that more work remains to be 

done.

The Secretary explained that the construction of new facilities mandated by Congress

compete with other Smithsonian facilities for funding. He said that the sequestration 

hearing made clear that deferred maintenance is a problem across the Federal 

government. Mr. Kogod said that the Smithsonian is not keeping up with its annual 

facilities requirements, and that the requirements will continue to grow. 

NEW COLLECTIONS HIGHLIGHTS

Under Secretary Richard Kurin updated the Board on the status of undeveloped film 

in a camera that had captured important images of the iceberg that sank the Titanic, 

as well as photographs of some of the survivors. He reminded that Board that it had 

viewed the Kodak Brownie camera of teenager Bernice Palmer at its April 2012 

meeting. [Miss Palmer was a passenger on the Carpathia, the ship that rescued the 

few survivors of the disaster.] Unfortunately, the development of the film did not 

result in any images.

Dr. Kurin also commented on gifts to the national collections from two of the guests

honored at the prior evening’s donor recognition dinner. Dr. T.B. Boyd III, president 

and chief executive officer of R.H. Boyd Publishing Corporation, an African American 

publishing company, donated important collections of African American church 

publications, such as hymnals, to the NMAAHC. NMAH Board Chair John Rogers, who 

had served as an aide to President Ronald Reagan, donated pieces of the Berlin Wall 

that he chiseled from the wall when it was taken down in 1989.
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REPORT OF THE SMITHSONIAN NATIONAL BOARD

Smithsonian National Board (SNB, or National Board) Chair Sako Fisher reported on 

the recent meeting of the SNG. She reminded the Regents that the mission of the 

SNB is to be advisors, ambassadors, and fundraisers for the Smithsonian. She added

that the National Board is the largest “boots on the ground” volunteer aspect of the 

national campaign.

SNB meetings focus on the Smithsonian’s “pillars of learning”—the four Grand 

Challenges. During this meeting, said Ms. Fisher, SNB members considered world 

cultures through, among other things, programs at the Freer and Sackler Galleries and 

a luncheon presentation on Cooper-Hewitt’s initiative “Design for the Other 90%.”

The presentations, she said, made clear why it is important to invest in the 

Smithsonian, and how donors can make a difference. Ms. Fisher noted that 

approximately 10 percent of the donors honored the previous evening are affiliated 

with the SNB. Ms. Fisher said that plans are under way to introduce SNB members to 

the staff and work that have benefited from donor support.

The fall 2013 SNB meeting will likely focus on biodiversity. The winter 2014 meeting, 

which will be held in Hawaii, will consider all four Grand Challenges. It is anticipated 

that the focus of the spring 2014 meeting will be the Grand Challenge “Unlocking the 

Mysteries of the Universe.” The fall 2014 meeting will address the national campaign 

kickoff. Ms. Fisher said that the winter 2015 meeting will likely be held in New York 

City, shortly after the reopening of Cooper-Hewitt.

Ms. Fisher welcomed the Regents to participate in SNB meetings. Staff will provide 

SNB meeting schedules and agendas to the Regents.

FINANCIAL DASHBOARD

Under Secretary for Finance and Administration/Chief Financial Officer Albert Horvath 

reported that the first six months of fiscal year 2013 were dominated by planning for 

sequestration, which was put into effect on March 1, 2013. The sequester resulted in 

a $42 million reduction in fiscal year 2013 Federal funding for the Smithsonian, and a 

total Federal appropriation of $775 million. There is $7 million in new funding in the 

fiscal year 2013 Federal budget to support NMAAHC staffing increases ($5 million) 

and repairs to facilities damaged by Superstorm Sandy ($2 million). 

Mr. Horvath discussed key components of the Smithsonian’s sequestration action 

plan. The implemented strategy, he said, was temporary and intended to be limited 

to fiscal year 2013. In some cases, mission-centric activities were protected by 

increased funding reductions in other units, such as OFEO, and pooled funds. 

During the sequestration plan’s development, said Mr. Horvath, a “ground-up” 

analysis process was created that supports planning for the possibility of structural 

budget reductions for fiscal year 2014 and beyond. All of the major operating units 
13

have developed plans to address the possibility of 7 percent reductions in Federal 

funding. The themes derived from these plans will support the July 2013 retreat’s 

“top-down” discussions about possible long-term Federal budget reductions.

With regard to non-Federal funding, Mr. Horvath reported that SE is on track to meet 

its net revenue target for the fiscal year; it also is ahead of last year’s performance 

through the first six months of the year. The fiscal year goal for sponsored research 

awards is ambitious. Awards to date are behind budget, although ahead of last year’s 

revenues. Mr. Horvath commented on the secondary effect of sequestration on the 

Federal sponsors that seed these awards. 

The Smithsonian’s incurred expenses, said Mr. Horvath, remain in line with its 

revenues. Federally funded budgets have been modified in response to the 

sequestration. Trust budgets also have been modified. With regard to the 

Smithsonian’s major facilities capital projects, Mr. Horvath noted that the 

Smithsonian has yet to receive Federal funding for repairs to address damage from 

the 2011 earthquake. He said that funding for other basic capital projects will be 

“crowded out” if funding for earthquake repairs is not received by fiscal year 2015.

Ms. Stonesifer asked the Secretary about the pipeline of pending gifts. Secretary 

Clough agreed that the fiscal year 2013 fundraising goal is a stretch goal. Ms. Clark 

said that the primary focus is on the campaign launch goal, adding that she is 

confident that the launch fundraising goal will be met. The Secretary noted that 

about 40 new development staff have been added across Smithsonian museums, 

units, and the central Office of Advancement. He said that the experience of the new 

employees, as well as the implementation of new operational procedures, will 

positively impact fiscal year 2014 fundraising efforts.

REPORT OF THE FINANCE COMMITTEE

Fiscal Year 2014 

Endowment Payout

Finance Committee Chair David Rubenstein reported that the committee met on April 

24, 2013, and discussed the sequestration situation and the fiscal years 2013 and 

2014 Federal budgets. Two other issues were reviewed for presentation to the Board: 

the fiscal year 2014 Endowment payout and the Smithsonian’s long-term debt.

The Smithsonian’s current policy is to pay out each year 5 percent of the five-year 

rolling average market value of the Endowment to support the Smithsonian’s 

programs and activities, as well as draw up to 1 percent from certain endowments to 

support national campaign costs. The Finance Committee agreed to recommend that 

the Board approve the payout formula.

Dr. Córdova, a member of the committee, noted that the committee recognizes 

concerns previously raised by Mr. Sant about the sustainability of the payout policy in 

the current economic climate. She said that the committee is cautious in its support 

for this year’s recommendation, and will continue to monitor the sustainability of the 

payout policy. 

The Regents discussed the increased use of Central Trust funds for staff expenses. 
14

Ms. Stonesifer said that it is important to recognize that the efforts of Office of 

Advancement staff, who are paid by Endowment funds, have resulted in increased 

non-Endowment funding for Smithsonian programs and activities. Mr. Horvath said 

that, in the short term, it would be difficult for the Central Trust to absorb a reduction 

in payout funds. Going forward, however, staff is reviewing how the Endowment 

payout interacts with other Smithsonian resources. Fundraising, he said, would be 

impacted.

Mr. Rubenstein then presented the committee’s recommendation that the Board 

approve the proposed payout from the Endowment for fiscal year 2014. The motion 

was approved.

See attached Action 2013.04.04 (Minutes of the Board of Regents, Appendix A).

New Debt Mr. Rubenstein then discussed the committee’s review of the Smithsonian’s existing 

long-term debt and a proposal to consider the issuance of new debt to finance Trustfunded capital projects. He explained that the Institution currently has $104 million 

of tax-exempt debt outstanding, including $26.5 million for the construction of the 

NMNH Discovery Center and $77.5 million for the construction of the Udvar-Hazy 

Center.

The Smithsonian, he said, has several planned or in-progress capital projects, such as 

the NMAAHC construction and the AIB renovation, that are or will be funded in part 

by Trust revenues. Using NMAAHC as an example, Mr. Rubenstein explained that 

management has requested authority to explore alternative funding to ensure that, 

should sufficient funding not be available to address the project’s immediate cash 

requirements, the new museum will open as scheduled in 2015.

He then presented the committee’s recommendation that the Board approve a 

motion to authorize the Secretary to engage with investment advisors and rating 

agencies in an effort to analyze financing needs for Trust-funded capital projects and 

to research potential debt structures should it be determined that a borrowing is 

necessary. The Secretary, he said, would then present any proposed debt issuance to 

the Committee for its review and subsequent recommendation to the Board for 

approval.

The Board agreed to authorize the Secretary to research potential debt issuance for 

the Finance Committee’s review. The Board also agreed that the undertaking of any 

debt issuance require the approval of the Board of Regents.

See attached Action 2013.04.05 (Minutes of the Board of Regents, Appendix A).

REPORT OF THE OFFICE OF GOVERNMENT RELATIONS

Director of Government Relations Nell Payne updated the Board on the outreach 

activities of the Office of Government Relations. The support of Representative 

Johnson resulted in the exhibition of 150 NMAH artifacts in the Rayburn House Office 

Building foyer. A dozen NMAH curators participated in the one-day event, which was 
15

attended by 600 congressional staff and several members of Congress. Strong 

attendance, said Ms. Payne, was encouraged in part by a “Dear Colleague” letter 

signed by the six congressional Regents.

A tour of the Museum Support Center was arranged for 25 Congressional spouses. 

The Smithsonian also hosted a successful event with Faith in Politics, a non-partisan 

group, that attracted 10 members of Congress to a NMAH event that included a 

dinner and tour of the Changing Washington exhibit. Future outreach activities 

include a Congressional staff picnic at the 2013 Folklife Festival; a concert by 

Hungarian Folklife participants on the steps of the Capitol; and a Congressional Night 

on July 24, 2013, which will again be sponsored by Nissan. Attendance continues to 

grow at the Congressional Night, which hopefully will become an annual event.

The sequester hearing, said Ms. Payne, went well for the Smithsonian. The panel was 

especially impressed by the Smithsonian’s preparations for a possible sequester. 

REPORT OF THE GENERAL COUNSEL

General Counsel Judith Leonard reported on the 41st annual Legal Issues in Museum 

Administration Conference, which is cosponsored by the Smithsonian and organized 

by the Office of General Counsel (OGC). The well-respected conference attracts 

lawyers, museum directors, registrars, and other museum professionals, as well as 

lawyers from other non-profit organizations. Over 180 participants attended the 

2013 conference, including representatives from 60 museums, offices of the state 

attorney generals, the Department of the Interior, the Library of Congress, and the 

National Endowment for the Arts. Many others participated via webcast. 

LUNCHEON PRESENTATION:

THE NATIONAL MUSEUM OF AMERICAN HISTORY

Introduction Under Secretary Kurin introduced luncheon speaker NMAH Director John Gray, who 

joined the museum in July 2012 after retiring from the Autry National Center of the 

American West. Mr. Gray began his career in the banking industry, after which he 

served in the Small Business Administration in Washington, D.C. He then became the 

first CEO of the Gene Autry Museum in Los Angeles. There he transformed the 

museum by consolidating three cultural organizations in Los Angeles and Denver,

including the Southwest Museum of the American Indian, into the Autry National 

Center of the American West. The consolidation, said Dr. Kurin, deftly combined the 

missions and resources of organizations dedicated to different aspects of Western 

history and culture. 

The National Museum of 

American History 

Mr. Gray thanked the Board for the opportunity to discuss the museum’s mission, 

activities, and vision, including its recently completed strategic plan. He spoke of the 

scale and complexity of the NMAH, which is visited by 5 million people each year. He 

noted the ability of museums to change lives, and said that the new strategic plan will 

help make the NMAH “worthy of that challenge.” Mr. Gray discussed the position of 
16

the NMAH in the context of American and European museums, explored how the 

museum can be national in both its representation and impact, and spoke of the 

planned renovation and reinstallation of galleries and equipment in the museum’s 

west wing. 

Mr. Gray spoke of the history and legacy of great European museums, and noted that 

the Smithsonian’s first collections were dedicated to anthropology and natural 

history. The Museum of History and Technology, which opened in 1964, was based in 

the tradition of European science and engineering museums. Its research and 

collections, however, also focused on national and social history. The renaming of the 

museum in 1980, said Mr. Gray, reflected a recognition of the expanded NMAH 

mission, and an understanding of American history and popular culture, science, and 

technology as an integrated whole.

History, noted Mr. Gray, is no longer celebrated as a core knowledge requirement in 

America, and great history museums have “become an elusive ideal.” Mr. Gray 

commented on the continuing growth of art and science museums and emphasized 

the critical need for a museum that presents a national perspective on American 

history and culture. He noted the proliferation of science, technology, and history 

centers that offer experiential and high-tech presentations—but lack contextualized, 

curated perspectives. 

In contrast, the NMAH mission is based on a belief that progress is based on an 

understanding of the nuanced, complicated, and collective story of the history of 

America. History museums, said Mr. Gray, derive their authenticity from the mix of 

collections as a whole, coupled with strong presentation and interpretation. He 

noted, however, that the number of NMAH curatorial staff has been reduced by 

almost 50 percent over the last 20 years, a figure he characterized as “unacceptable.” 

The museum, he said, also must enhance its collections with new acquisitions. In 

addition, NMAH must understand and embrace how people think and learn today if it 

is to help cultivate informed and engaged citizens. 

The renovation of the NMAH west wing will allow the museum to use technology and 

object displays to tell an integrated story of American history that is grounded in 

chronology and scholarship. The wing’s three public floors will be organized around 

large ideas that address what makes America unique. The exhibitions, programs, and 

publications on the first floor will address the themes of innovation, creativity, 

technology, and American enterprise. Second-floor themes will focus on democracy 

and the peopling of America. The theme of the third floor, said Mr. Gray, will be 

culture. He also discussed estimated budgets for each floor, and the need to develop 

alternative fundraising approaches for floors two and three.

Mr. Gray outlined the museum’s key intentions going forward. The museum, he said, 

must

• strengthen its intellectual leadership, 

• build up curatorial staff, 

• dramatically increase access to collections through digital media, and

• attract the next generation of American history staff. 
17

It is the museum’s responsibility, said Mr. Gray, to promote the profound beliefs of 

the United States, to safeguard the nation’s treasures, and to present American 

history in ways that are substantial, challenging, inviting, accessible, inspiring, and 

“wonderfully human.”

Discussion Senator Leahy thanked Mr. Gray for his presentation, and asked how the museum can 

increase its visitorship, given society’s decreased interest in history. Mr. Gray noted 

that the attention of people must now be captured or “grabbed” in order to immerse 

them in larger, meaningful learning experiences. The three themes or big ideas of the 

renovated west wing, he said, are designed to pull in museum visitors, and 

experiential programming will continue to engage their attention.

Ms. Stonesifer asked Mr. Gray to discuss the development of big ideas, outside of the 

west wing themes, that will support pan-institutional initiatives about the Grand 

Challenge “Understanding the American Experience.” Mr. Gray spoke of discussions 

with National Museum of the American Indian (NMAI) Director Kevin Gover, NMAAHC 

Director Lonnie Bunch, and SAAM Director Betsy Broun, who each contributed to the 

development of the NMAH strategic plan. The museum directors, he said, believe 

that the American experience is an inclusive one, and that each of the four museums 

tell the story of the American experience, albeit from different perspectives. Mr. Gray 

cited several collaborations that are under development, including a NMAH-NMAI 

exhibition about the native perspective on flags, NMAH-NMAAHC jazz programming 

that combines both museums’ collections, and NMAH contributions to a SAAM 

exhibition about the American West.

Mr. Sant expressed concern about NMAH’s annual attendance figure (5 million) when 

compared to annual visitation records for NMNH (over 7 million) and the National Air 

and Space Museum (over 7 million). A visit to NMAH, said Mr. Gray, is now seen as a 

type of pilgrimage. Visitors view select NMAH objects, such as the Star-Spangled 

Banner, and then go visit “cool” exhibitions at the other museums. It is essential, he 

said, that the museum change visitors’ experiences. The number of visitors to the 

museum, he noted, has increased since the museum’s last renovation, which included 

the reinstallation of the Star-Spangled Banner in an engaging exhibition space. Mr. 

Gray emphasized the importance of animating spaces with programming, such as that 

at the Greensboro lunch counter display. Fundraising for the NMAH endowment for 

programming, he said, will advance activities that engage the public.

Mr. Case applauded the museum’s plan to use digital technology to encourage and 

enhance the visitor experience, as well as the museum’s focus on the history of 

technology. He suggested that an increased focus on entrepreneurship, more than 

enterprise, will attract and engage the attention of the digital generation whose 

collective experience has been shaped by the contributions of such figures as Steve 

Jobs. Mr. Gray said that the focus of the museum’s new culture floor will be about 

how people participate in culture. The chronologically based exhibits will guide 

visitors through experiences that demonstrate how people create their own cultures. 

Mr. Gray also commented on a significant change in the museum visitor experience. 

Historically, an important element of exhibition design was to employ such elements 

as walls or lights to force visitors to stop, and then to direct their attention to a 
18

display. With the advent of digital technology and hand-held devices, he said, the key 

to creating an engaged museum experience is to use those devices to encourage 

museum visitors to pause and then engage in an exhibit or program.

Ms. Fisher asked about the number of repeat visitors to the museum. Mr. Gray said 

that NMAH does not yet have systems that can determine the number of repeat 

visitors but said that he hopes it will be able to do so in about a year. NMAH, he said, 

likely experiences more repeat visitation than is known. Mr. Gray also said that 

people typically make three visits to the museum: as children, as parents, and as 

grandparents—adding that the museum seeks to change that pattern by capturing 

visitors’ attention in larger ways, and building up affinity groups who then continue to 

participate with the museum in meaningful ways. 
19

AFTERNOON SESSION

The Chancellor called the afternoon session to order at 1:20 p.m.

GRAND CHALLENGE SPOTLIGHT: SMITHSONIAN BIODIVERSITY 

CONSERVATION SCIENCE

Introduction Dr. Pell introduced a panel discussion on biodiversity science. Noting that four 

Smithsonian units—STRI, SERC, NMNH, and NZP (including its Smithsonian 

Conservation Biology Institute, or SCBI)—directly support the Grand Challenge 

“Understanding and Sustaining a Biodiverse Planet,” she said that the Smithsonian’s 

collective strengths in biodiversity conservation science are unmatched. She also 

stated that these resources remain relatively unleveraged and unrecognized. This 

discussion, Dr. Pell said, would focus on “sustaining,” and the Smithsonian’s efforts to 

capitalize on its resources in biodiversity conservation science and achieve 

measurable impact on this Grand Challenge. 

Dr. Pell commented on the diversity of the Smithsonian’s biodiversity conservation 

initiatives. STRI conducts research on tropical forests and marine life; SERC studies 

landscape ecology from the perspective of the Chesapeake Bay; NMNH collections 

support conservation research and education; and NZP/SCBI considers individual 

species, training, and education. In an effort to pool and better leverage their 

biodiversity conservation resources, representatives from each unit formed the 

Conservation Council led by SCBI Director Steve Monfort about one year ago. 

Late in 2012, said Dr. Pell, Boston Consulting Group (BCG) approached the 

Smithsonian with an offer to do a pro bono project. Informed about the 

Smithsonian’s need to better coordinate and utilize its biodiversity conservation 

resources, as well as gain access to untapped funding resources, BCG produced a 

comprehensive report that stated that the Smithsonian has unmatched capabilities in 

the science aspects of biodiversity conservation. BCG also stated that these efforts 

are under-resourced, estimating that the Smithsonian should be able to successfully 

compete for as much as $100 million in available funding, well beyond what is 

currently being accessed. Buttressed by the report’s findings, the four units and the 

Conservation Council are moving forward to effectively coordinate, leverage, and 

advance the Smithsonian’s biodiversity conservation science initiatives. 

Leveraging Smithsonian 

Science to Address Critical 

Conservation Challenges: 

A Blueprint for Biodoversity 

Conservation

Dr. Monfort provided an overview of the Smithsonian’s capabilities in biodiversity 

conservation. He highlighted the Smithsonian’s work in basic science (increasing 

knowledge); applied science (applying that knowledge to conservation problems); and 

outreach (which includes training the next generation of conservation scientists). The 

Smithsonian’s position in biodiversity conservation science is enhanced by the 

geographic diversity of its research centers. The Smithsonian’s biodiversity 

conservation portfolio, he said, ranges from studies of genomes to complete 

organisms, from marine to terrestrial landscapes, from species to habitats to 

ecosystems. 
20

The Earth’s biodiversity is disappearing. To date, over 1.5 million species have been 

identified on the planet, and it is likely that over 10 million have yet to be discovered. 

Citing vertebrate classes as an example, Dr. Monfort said that nearly one quarter of all 

known vertebrate species are at risk of extinction. Threats to some other taxonomic 

groups are greater. 

Dr. Monfort spoke of historical threats to biodiversity through overexploitation, the 

introduction of invasive species, pollution, climate change, and habitat loss and 

fragmentation. He asked “Why should we care?” The answer, he said, lies in the fact 

that biodiversity provisions all of the services mankind needs to survive: air, water, 

food, fuels, and fiber. 

Dr. Monfort then compared the Smithsonian’s position in biodiversity conservation 

science efforts with that of other well-known conservation organizations. The 

Smithsonian, he said, is an intellectual leader in basic and applied conservation 

science; it also has unparalleled outreach capabilities. In addition, the Smithsonian is 

committed to training the next generation of biodiversity conservation scientists.

Last year, the Conservation Council asked Smithsonian scientists to self-identify their 

ongoing efforts in conservation sciences. The responses revealed that there are 60 

scientists working with 300 partner institutions in 28 countries on four continents 

doing 100 separate projects on 50 species. The scholarly output of these scientists, 

said Dr. Monfort, resulted in over 70 peer-reviewed publications. He noted that these 

results likely underrepresent the full scope of biodiversity conservation science 

currently under way at the Smithsonian. Moreover, said Dr. Monfort, they 

demonstrate that the Smithsonian is uniquely positioned to study major threats to 

biodiversity and to leverage scientific capacity towards actions that are likely to 

enhance species and ecosystem management, environmental education, and capacity 

building for the future.

Dr. Monfort cited examples of Smithsonian biodiversity conservation science projects, 

such as the reintroduction into Chad of 500 oryx that are currently extinct in the wild. 

He spoke of the global tiger initiative in South and Southeast Asia, which is working to 

double the 3,200-some tigers in the wild by 2022; efforts to save frogs threatened by 

a deadly fungus in Panama; and the emerging pandemic threats program that is 

developing a global early-warning system for emerging zoonotic diseases. 

The Smithsonian possesses an amazing spectrum of assets, said Dr. Monfort, but it 

must leverage its assets more effectively. To sustain biodiversity, as well as build the 

scientific and technical capacity of current and future generations, it must build 

stronger partnerships and be a leader in biodiversity conservation science. 

Agua Salud Project: An 

Integrated Ecosystem

Services Project

STRI staff scientist Jefferson Hall, who leads a 750,000-acre smart reforestation 

experiment in the Panama Canal watershed area, spoke of the competition between 

land and water use in tropical watershed areas. Dr. Hall reported that on December 

7, 2010, in one of the wettest years in Panama, over 12 inches of rain fell in a 24-hour 

period in the Panama Canal watershed. For the first time in its history, the Panama 

Canal was closed due to an act of nature. The rains, said Dr. Hall, continued, and five 

days later there was another storm peak. In the deforested area above the Madden 
21

Dam, which stores and regulates much of the water that flows through the Panama 

Canal, 112 million cubic meters of additional water nearly breached the dam, as well 

as the dams downstream. If that had occurred, said Dr. Hall, 5 percent of global trade 

would have stopped immediately. It was predicted that, once the dams were rebuilt, 

it would have taken four years to refill the Panama Canal.

The state of watershed areas in Panama and across the tropics reflects a global 

competition for land, water, and all of the goods and services that provide for a 

growing population. Dr. Hall explained that forests act like a sponge, whereas 

deforested areas contribute to either too much water flow or to drought conditions. 

Too much or too little water, said Dr. Hall, are both problems, and predictions of 

climate change indicate increases in the frequency of large, damaging storms. 

STRI’s smart reforestation project—the Agua Salud Project—is at the leading edge of 

forest science and applied conservation. STRI scientists are inventing mechanisms for 

smart reforestation under complex land-use scenarios. The work, said Dr. Hall, is at 

the intersection of science, commerce, policy, and nature. Early data is already 

influencing policies and practices for managing carbon sequestration, land and water 

regulation, and biodiversity conservation, as well as helping return degraded soils to 

productivity.

Because of growing populations, said Dr. Hall, good tropical soils will be used for 

agriculture. Smart reforestation must be productive on these fertile soils, and diverse 

forests must be developed that meet different management objectives. STRI’s 

research on smart reforestation across the tropics, as well as other watershed areas, 

will help guide land-use management and biodiversity conservation efforts in an 

increasingly complex future.

Conserving the Orchids of 

North America 

Dennis Whigham, senior botanist at SERC, spoke about the Smithsonian’s research on 

orchids, which have the largest number of species—35,000—of any family of plants 

on earth. The majority of orchids live in the tropics and subtropics, but over 250 

species of orchids are native to the United States and Canada. 

The Smithsonian has been a long-time leader in the study of orchids, particularly 

native orchids, and the ecology of the relationships between orchids and fungi. Each 

orchid, said Dr. Whigham, requires fungi at every stage of its life cycle. In addition, 

there are at least two stages in the life of each orchid during which it is totally 

dependent on fungi. Fungi occur mostly on the roots of orchids, where they form 

structures that the orchids digest. The structures, called pelotons, are completely 

controlled by the orchid and are of no known benefit to the fungi. 

The interaction between orchids and fungi represents an important biodiversity 

element, said Dr. Whigham, and the successful restoration of orchids therefore 

requires an approach that assures the survival of both the orchids and their fungal 

partners. The Smithsonian, he said, has the largest living collection of orchid fungi in 

the United States, most of which are new to science. To understand the ecology of 

any one orchid species, said Dr. Whigham, scientists must first understand the 

interactions between animals and fungi. To date, none of the interactions of the 250-

some species of orchids native to the United States and Canada are understood, and 
22

approximately 70 percent of these species are endangered. Orchids, said Dr. 

Whigham, are “the canary in the coal mine.” 

The Smithsonian, reported Dr. Whigham, has joined with the United States Botanic 

Garden to establish the North American Orchid Conservation Center (NAOCC), a largescale collaborative effort to support the survival of orchids native to the U.S. and 

Canada. NAOCC will be a public-private collaboration that includes partners across 

the United States. Three other Smithsonian units—NMNH, NZP, and Smithsonian 

Gardens—also are involved in the Grand Challenge–based initiative. NAOCC, which is 

the first continental-scale plant conservation effort at the Smithsonian, will establish 

national seed and fungal banks, determine how to propagate and restore native 

orchids, and develop educational activities that support the survival of the species.

Marine Conservation 

Science

Nancy Knowlton, the NMNH Sant Chair in Marine Science, discussed biodiversity 

conservation through the lens of marine conservation science. She noted that she 

also spent 20 years with STRI.

Covering over 70 percent of the planet, the ocean is vast and diverse, complex and 

changing, largely unexplored, and important to all life. It also is in trouble. The 

importance of the ocean, said Dr. Knowlton, is made evident to each visitor to the 

NMNH Sant Ocean Hall. The hall also demonstrates the Smithsonian’s commitment 

to informing and engaging the public in efforts to conserve and repair ocean’s health.

There are three components to the Smithsonian’s contributions to ocean 

conservation: understanding threats through science and education, providing 

solutions, and outreach. Dr. Knowlton first discussed the Tennenbaum Marine 

Observatories Network, which seeks to understand how the ocean is changing over 

time, and educate populations about its care. The impact of the observatories will 

extend far beyond the initial marine launch sites: the development of scientific 

methods and educational approaches will lead to a better understanding of threats to

the ocean’s health. Studies of a reef in Papua New Guinea, for example, demonstrate 

the effects of rising acidification on the ocean’s biodiversity. The chemistry of that 

reef, said Dr. Knowlton, offers a preview of what the rest of the ocean may look like in 

50 to 100 years. The methods of the observatories, she added, also are useful for 

educating students, citizen scientists, and researchers across the world.

Dr. Knowlton then highlighted some of the Smithsonian’s efforts to provide solutions 

to threats to the ocean’s health. She spoke of a project in Honduras in which a 

protected, sustainable lobster fishery was created in shallow waters in order to 

protect the physical safety and livelihoods of local fishermen. Another major 

conservation effort, she said, is SERC’s study of invasive species. The multifaceted 

effort includes large databases that track invasive species, as well as engages the 

contributions of citizen scientists.

Outreach efforts, said Dr. Knowlton, amplify the Smithsonian’s research and 

conservation efforts. She said that Sant Ocean Hall and the soon-to-open “Q?rius 

Center” will allow visitors the opportunity to interact firsthand with exhibits and 

scientists. In addition, the hall is undergoing a conservation messaging makeover that 

will focus on both threats and solutions to the ocean’s health. One example cited is 
23

the new “Science on a Sphere” program, which conveys information about the 

complex science of ocean warming and acidification, as well as the urgent need to 

address these threats. Web-based outreach is supported by the Ocean Portal, which 

is largely dedicated to understanding ocean conservation. The website receives over 

1 million unique visitors each year, she said, and numbers are growing. The portal will 

soon host “Beyond the Obituaries,” a program that highlights compelling success 

stories in marine conservation; it also will launch a platform on which citizen scientists 

can share other success stories. Providing people with an emotional connection to 

the problem, said Dr. Knowlton, is essential to the success of conservation efforts. 

Discussion Mr. McCarter asked Dr. Monfort how the Smithsonian can be assured that the 

collective efforts of different organizations’ conservation efforts are making an 

impact, or if in fact they are fragmented. He cited the Global Tiger Initiative, and 

noted other organizations’ tiger conservation efforts. Dr. Monfort spoke of the 

Smithsonian’s role as a trusted convener or broker. Organizations and nations, he 

said, recognize that the Smithsonian’s training and capacity building adds value to 

what others are doing. 

Mr. Sant said that the presentation effectively characterized the extent of the global 

threat to biodiversity, stating his opinion that the loss of biodiversity may be the 

primary issue facing mankind. He questioned BCG’s finding that the Smithsonian 

must get a greater share of the “pie” of available funding. The Smithsonian’s role, he 

argued, should be to expand the size of the pie to address these problems. 

Noting that collaborative initiatives will most likely secure the most funding, Mr. Case 

asked about such efforts both within the Smithsonian and with outside organizations. 

How, he asked, does the Smithsonian position itself as the “grand convener” to 

outside organizations? Commenting on the Smithsonian’s capacity to be a convener, 

Dr. Pell spoke of its response to an event in early April 2013, when USAID issued an 

RFP for a tiger initiative in Bangladesh. Within 48 hours, newly appointed Office of 

International Relations Director Molly Fannon flew to Bangladesh, all four biodiversity 

conservation units convened to draft a proposal, and Dr. Pell met with 

representatives from the Bangladeshi NGO. 

Mr. Rubenstein asked Dr. Monfort if the number of all species that have existed on 

Earth is known. He also asked how many species now exist, how many species die 

each year, and how many new species emerge each year. Dr. Monfort, noting that his 

response would be “data deficient,” responded that 1.5 million species have been 

identified to date, and that some estimates range up to 10 million and beyond. 

Current rates of extinction, he said, greatly exceed background rates by an order of 

magnitude, and species are going extinct before they have been discovered.

Noting that extinction can be a natural process, the Chancellor asked if researchers 

can determine when they are intervening in a natural process versus taking a 

corrective action in response to a man-made problem. He also asked if actions are 

ever undertaken in response to a process of natural extinction. Dr. Monfort said that 

very few species have gone spontaneously extinct for natural reasons. Responses to 

those extinctions, he said, vary. He also noted said that research has proven that the

vast majority of extinctions are caused by humans. In response to a question from 
24

Mr. Case about de-extinction efforts, Dr. Monfort said that it is not practical to divert 

resources towards bringing a species back from extinction when existing species do

not receive adequate protection. 

Mr. Rubenstein asked if scientists know how many of the species that ever existed are 

now extinct. He noted that non-specialists often quote a figure of 99 percent. 

Although exact figures are not available, Dr. Knowlton said that that number is not 

“wildly off.”

Ms. Stonesifer applauded the collaborative efforts of Smithsonian researchers, citing 

the example of pan-institutional efforts to combat the fungus threatening amphibians 

in Panama. She commented on the visibility of conservation advocacy groups, 

suggesting that the Smithsonian strengthen its fundraising capacity by expanding and 

raising the visibility of its conservation education and outreach initiatives. Dr. Pell, 

noting that the Smithsonian cannot conduct advocacy or policy work, said the 

development of a Smithsonian biodiversity conservation brand and website has been 

discussed. Dr. Monfort said that the Smithsonian, if it is committed to having an 

impact on global biodiversity conservation, must strengthen its fundraising capacity in 

support of these efforts. Mr. Sant suggested that the Smithsonian investigate unique 

areas, such as the global genome project, where only the Smithsonian has the ability 

to provide global leadership. Expanding those efforts, he said, will strengthen the 

Smithsonian’s ability to generate new sources of funding.

SERIOUSLY AMAZING: 40TH ANNIVERSARY OF VIET NAM’S RELEASE 

OF AMERICAN POWS

Dr. Kurin introduced Jennifer Jones, the chair of the NMAH Armed Forces History 

Division. Ms. Jones, who oversees the museum’s numismatics and military uniform 

collections, also was responsible for the museum’s comprehensive uniform rehousing 

project. 

Noting that 2013 is the 40th anniversary of the liberation of American soldiers held 

captive in Viet Nam, Ms. Jones displayed the POW bracelet of Congressional Regent 

Sam Johnson. The museum acquired the bracelet from a donor, who had received it 

from Representative Johnson and his family. The bracelet is one of about 50 POWMIA bracelets in the museum’s collections, which began acquiring Viet Nam 

memorabilia when it opened the Price of Freedom exhibition in 2004. The Board 

joined Ms. Jones in thanking Representative Johnson for his service.

REPORT OF THE GOVERNANCE AND NOMINATING COMMITTEE

Bylaw Amendments Governance and Nominating Committee Chair Roger Sant reported that the 

committee met three times since the last Board meeting. In addition to discussing 

the search process for two candidates to fill the positions that will be created when 

Ms. Stonesifer and Mr. Sant rotate off of the Board, the committee considered 

proposed bylaw revisions to the NMNH Board. The revisions, said Mr. Sant, are 
25

intended to update certain language, align the advisory board’s term limit waiver 

policy with Smithsonian policy, and require orientations for new board members. The 

motion was approved.

See attached Action 2013.04.10 (Minutes of the Board of Regents, Appendix A).

Advisory Board 

Appointments

Mr. Sant presented the committee’s recommendation that the Board of Regents 

appoint or reappoint members to 10 Smithsonian advisory boards. He commented on 

the wealth of talent that is found on the Smithsonian’s advisory boards, and noted 

that it is the intention of the Governance and Nominating Committee to help bring 

the performance of all Smithsonian advisory boards up to best practices. Mr. 

Rubenstein and Mr. Sant, both candidates for reappointment to the NMNH Board, 

recused themselves from the vote. The motions were approved en banc.

See attached Actions 2013.04.11–2013.04.20 (Minutes of the Board of Regents, 

Appendix A).

Charter Amendments Mr. Sant then presented the Audit and Review Committee’s recommendation that the 

Board approve suggested clarifications to the committee’s charter. The proposed 

changes are intended to clarify the charter’s provisions regarding membership and 

conflicts of interest, references to the Board Bylaws, and periodic reviews of the 

charter. The motion was approved.

See attached Action 2013.04.21 (Minutes of the Board of Regents, Appendix A).

The Board adjourned for an executive session at 2:36 p.m.

EXECUTIVE SESSION

During the executive session, Governance and Nominating Committee Chair Roger 

Sant updated the Board on the search process for two new Citizen Regents.

ADJOURNMENT

Dr. Córdova thanked the Regents for their participation. The executive session 

adjourned at about 3:30 p.m. 

Respectfully submitted,

G. Wayne Clough

Secretary

APPENDIX A: ACTIONS OF THE

APRIL 29, 2013, MEETING OF THE BOARD OF REGENTS

VOTED that the Board of Regents approves the naming of the National Museum of the

American Indian’s Director’s Terrace in honor of Senator Daniel K. Inouye. [2013.04.02]

VOTED that the Board of Regents approves the minutes of the January 28, 2013, meeting of the

Board of Regents. [2013.04.03]

VOTED that the Board of Regents approves a 5 percent payout from the Smithsonian 

Endowment in fiscal year 2014 to support programmatic activity. The Board further authorizes 

up to an additional 1 percent payout from the Smithsonian Endowment in fiscal year 2014 to 

fund certain expenses associated with the national fundraising campaign. The payout shall be 

calculated against the current five-year average market value of the Smithsonian Endowment. 

[2013.04.04]

VOTED that the Board of Regents authorizes the Secretary to analyze financing needs for Trustfunded capital projects and to research potential debt structures should it be determined that a 

borrowing is necessary. Further, the Secretary shall present any proposed debt issuance to the 

Finance Committee for a recommendation to the full Board for approval. [2013.04.05] 

VOTED that the Board of Regents recognizes the generosity of the Wallace H. Coulter

Foundation to the National Museum of American History and its American Enterprise exhibition

and names the first-floor public space adjacent to the exhibition the Wallace H. Coulter

Performance Plaza for a period of no less than 20 years from the date the exhibition opens;

names, subsequent to the fulfillment of a challenge grant, the interactive activity space within

the exhibition the Wallace H. Coulter Exchange for a period of no less than 20 years from the

date the exhibition opens; and names a program series in honor of Wallace H. Coulter for a 

period of five years from the date the exhibition opens. [2013.04.06] 

VOTED that the Board of Regents recognizes the generosity of the Lemberg Foundation to

Cooper-Hewitt, National Design Museum, and names the former breakfast room in the

museum’s Carnegie Mansion the Usdan Family Gallery for 40 years. [2013.04.07] 

VOTED that the Board of Regents recognizes the generosity of Nancy Marks to Cooper-Hewitt,

National Design Museum, and names the former bedroom of Mrs. Andrew Carnegie in the

museum’s Carnegie Mansion the Marks Family Gallery for 40 years. [2013.04.08] 

VOTED that the Board of Regents creates a quasi-endowment to be utilized at the discretion of

the Director of the Freer Gallery of Art and Arthur M. Sackler Gallery for purposes including, but

not limited to, acquisition, conservation, exhibitions and research in the field of Chinese art. 

Further, the Board authorizes the transfer of funds identified for this purpose. [2013.04.09] 

VOTED that the Board of Regents approves the proposed amendments to the bylaws of the

Board of the National Museum of Natural History. [2013.04.10] 
2 

VOTED that the Board of Regents appoints Raul Fernandez, Julie Flynn, and Philip K. Ryan and 

reappoints Valerie Anders, Brenda Gaines, Shelby Gans, Edward Hintz, Judy Huret, Marna 

Schnabel, and Deborah Wince-Smith to the Smithsonian National Board, all for three-year 

terms effective October 1, 2013. [2013.04.11] 

VOTED that the Board of Regents appoints Susan Norton to the Advisory Council of the Center 

for Folklife and Cultural Heritage for a three-year term effective June 25, 2013. [2013.04.12] 

VOTED that the Board of Regents appoints Carl Bass, Andy Berndt, and David Lubars to the 

Board of Trustees of Cooper-Hewitt, National Design Museum for three-year terms effective 

immediately. [2013.04.13] 

VOTED that the Board of Regents appoints Christopher Reynolds and reappoints Merit Janow to 

the Board of Trustees of the Freer Gallery of Art and the Arthur M. Sackler Gallery, each for 

four-year terms effective September 27, 2013. [2013.04.14] 

VOTED that the Board of Regents appoints Shephard W. Hill and David P. Storch to the Board of 

the National Air and Space Museum for three-year terms effective immediately. [2013.04.15] 

VOTED that the Board of Regents appoints Lynn Cutler to the Board of Trustees of the National 

Museum of the American Indian for a three-year term effective immediately and reappoints S. 

Haunani Apoliona, Brian Patterson, and Brenda Toineeta Pipestem to the Board of Trustees for 

three-year terms effective January 1, 2014. [2013.04.16] 

VOTED that the Board of Regents reappoints David Rubenstein to the Board of the National 

Museum of Natural History for a three-year term effective immediately; Roger Sant for an 

exceptional three-year term effective May 1, 2013; and John Fahey for a three-year term 

effective June 1, 2013. [2013.04.17] 

VOTED that the Board of Regents appoints Angela Marriott, Terry D. McCallister, and Emanuel 

Rouvelas to the National Advisory Board of the National Zoological Park for three-year terms 

effective immediately. [2013.04.18] 

VOTED that the Board of Regents appoints Todd Krasnow to the Advisory Board of the 

Smithsonian Astrophysical Observatory for a three-year term effective immediately. 

[2013.04.19] 

VOTED that the Board of Regents reappoints John Stamato to the Advisory Board of the 

Smithsonian Environmental Research Center for a three-year term effective immediately. 

[2013.04.20] 

VOTED that the Board of Regents approves the amended Charter of the Audit and Review

Committee. [2013.04.21]