MINUTES OF THE

APRIL 6, 2009, MEETING

OF THE

BOARD OF REGENTS

OF THE

SMITHSONIAN INSTITUTION
SMITHSONIAN INSTITUTION

Minutes of the Meeting of the Board of Regents

April 6, 2009

Table of Contents

Page 

Attendance .................................................................................................................................................................. 1 

Opening Remarks ..................................................................................................................................................... 2 

Report of the Strategic Planning and Programs Committee .................................................................. 2 

Scenario‐Planning Session ................................................................................................................................... 3 

Presentation by Smithsonian Enterprises ..................................................................................................... 4 

Report of the Board and Executive Committee Chair ............................................................................. 10 

Report of the Secretary ........................................................................................................................................ 11 

Report of the Smithsonian National Board ................................................................................................. 15 

Report of the Audit and Review Committee ............................................................................................... 15 

Report of the Governance and Nominating Committee ......................................................................... 18

Recent Acquisitions and Discoveries ............................................................................................................. 21 

Legislative Activities and Issues ...................................................................................................................... 21 

Report of the Finance Committee .................................................................................................................... 21 

Report of the Facilities Committee ................................................................................................................. 22 

Report of the General Counsel .......................................................................................................................... 24 

Report of the Advancement Committee ....................................................................................................... 24 

Report of the Investment Committee ............................................................................................................ 25 

Adjournment ............................................................................................................................................................ 26 

Appendix A: Approved Resolutions 
MINUTES OF THE BOARD OF REGENTS

April 6, 2009

ATTENDANCE

This scheduled meeting of the Board of Regents was held on Monday, April 6, 2009, in the 

Freer Gallery of Art’s conference room.  The meeting included a morning session and an 

afternoon session, which were followed by an executive session.  Board Chair Patricia Q. 

Stonesifer called the meeting to order at 8:59 a.m.  Present were: 

The Chief Justice 1 

Eli Broad  

Phillip Frost 

Shirley Ann Jackson  

Sam Johnson 2

Robert P. Kogod 

John W. McCarter Jr. 3

Doris Matsui  

Roger W. Sant 

Alan G. Spoon 

Patricia Q. Stonesifer

L. Hardwick Caldwell, Smithsonian National Board Chair 

Vice President Joseph R. Biden, Senator Thad Cochran, Senator Christopher Dodd, Senator 

Patrick Leahy, and Representative Xavier Becerra were unable to attend the meeting.  

Also present were:*  

France Córdova, Regent Designee4

G. Wayne Clough, Secretary  

Richard Kurin, Under Secretary for History,  

  Art, and Culture  

Alison McNally, Under Secretary for Finance  

  and Administration  

Patricia L. Bartlett, Chief of Staff to the  

  Secretary  

Amy Chen, Chief Investment Officer 

Virginia B. Clark, Director of External Affairs  

John K. Lapiana, Chief of Staff to the Regents  

Evelyn S. Lieberman, Director of  

  Communications and Public Affairs  

Alice C. Maroni, Chief Financial Officer  

Carole M.P. Neves, Director of the Office of  

  Policy and Analysis  

Tom Ott, President of Smithsonian 

  Enterprises (SE)  

Nell Payne, Director of Government Relations  

A. Sprightley Ryan, Inspector General 

Marsha S. Shaines, Acting General Counsel  

Barbara Feininger, Senior Writer‐Editor, Office  

of the Regents   

Grace L. Jaeger, Program Officer, Office of the 

Regents  

Jeffrey P. Minear, Counselor to the Chief Justice  

Joe Hepp, Assistant to Senator Dodd  

Kevin McDonald, Assistant to Senator Leahy  

Melody Gonzales, Assistant to Congressman  

Becerra  

David Heil, Assistant to Congressman Johnson  

Alexis Marks, Assistant to Congresswoman 

Matsui 

Peter Schwartz, Global Business Network  

  (GBN) Cofounder and Chairman 5

Mark Tino, GBN Senior Practitioner 5

Reggie Van Lee, Booz Allen Hamilton (BAH)  

  Senior Vice President 5

Gary Bettger, BAH Senior Associate 5 

Gregory Bokman, SE Chief Financial Officer 6

Peter Gibbons, SE Retail Group Director 6

Carol LeBlanc, SE Business Development and  

  Licensing Director 6

Scott Stark, SE Communications Manager 6

_____________________________________________________ 

1  The Chancellor, Chief Justice John G. Roberts, Jr., attended the afternoon plenary session and executive session. 

2  Mr. Johnson arrived at 9:10 a.m. and was present for the consideration of all proposed motions. 

3  Mr. McCarter departed at 2:10 p.m. and was not present for the consideration of motions 2009.04.02–2009.04.12. 

4  Dr. Córdova, Regent Designee, attended by invitation of the Regents and departed at 1:00 p.m. 

5  Messrs. Schwartz, Tino, Van Lee, and Bettger were present for the Regents’ Strategic Planning Session. 

6  Messrs. Bokman, Gibbons, and Stark and Ms. LeBlanc were present for the Smithsonian Enterprises Presentation. 

*  With the exception of Secretary Clough, Chief of Staff to the Secretary Patricia Bartlett, and Chief of Staff to the Regents  

John K. Lapiana, Smithsonian staff joined the meeting at 11:05 a.m. 
2 

MORNING PLENARY SESSION

OPENING REMARKS

Board Chair Patricia Stonesifer welcomed the attendees and expressed her 

appreciation for the morning tour of the Freer Gallery of Art by Julian Raby, the 

Director of the Freer and Sackler Galleries.  She said that the decision to conduct 

some of the Board of Regents’ meetings outside of the Smithsonian Castle (in this 

case, at the Freer Gallery of Art) reflected a commitment to strengthening the 

Regents’ attachment to the Smithsonian’s mission.   

Ms. Stonesifer then provided a brief overview of the meeting agenda.  Noting that 

the schedule was extremely full, she said that the Regents would be engaged in a 

detailed strategic planning exercise that morning, after which an update on the 

business, vision, and oversight of Smithsonian Enterprises would be presented.  

She announced that on the way to lunch the Regents would join National Museum 

of African American History and Culture Director Lonnie Bunch to see the six 

proposed designs for the new Museum and discuss the status and content of that 

design effort.  She said that the afternoon session of the Regents’ meeting also 

would be very full and would require the Regents’ commitment to conduct 

strategic and time‐sensitive discussions.  Strategic Planning and Programs 

Committee Chair Doris Matsui was then asked to present the Committee’s report. 

REPORT OF THE STRATEGIC PLANNING AND PROGRAMS 

COMMITTEE

Before beginning her report, Strategic Planning and Programs Chair Doris Matsui 

noted the Washington Post article on Board Chair Patricia Stonesifer, which was 

printed in that morning’s edition, reflected the “turning of a page” at the 

Smithsonian.  She added that the report highlighted the Smithsonian’s renewed 

ability to focus its vision on its future.  She also reported that the Office of 

Management and Budget had expressed its support for the Smithsonian’s 

undertaking of a strategic planning process. 

Review of the Strategic

Planning Process

Ms. Matsui reminded the Board that in September 2008 the Board had approved 

the Secretary’s recommendation to engage the Smithsonian and its stakeholders in 

the development of a new strategic plan.  Reflecting the Secretary’s commitment to 

an inclusive process, the subsequent creation of the strategic planning process was 

designed to engage a broad spectrum of internal and external stakeholders.  The 

process includes scenario‐building exercises that will inform the development of a 

strategic plan that can respond to present and future uncertainties, both economic 

and political, that face the Smithsonian. 

The three phases of the Smithsonian’s strategic planning process will be supported 

by the Smithsonian’s Office of Policy and Analysis; two outside consultants, Booz 

Allen Hamilton and Global Business Network; and a 22‐member Strategic Planning 
3 

Steering Committee that represents a diverse set of perspectives within and 

outside of the Institution.  Ms. Matsui said that the Steering Committee had 

assisted the consultants in identifying key individuals and groups to interview 

during Phase I, suggested participants for the scenario‐planning phase, and is 

currently helping identify themes that have emerged from both phases and will be 

reflected in the final strategic plan. 

Ms. Matsui reported that Phase I, the baseline information‐gathering phase of the 

Strategic Planning Process, was complete and directed the Regents’ attention to 

the analysis of online surveys and individual and group interviews included in the 

Board’s agenda books.  She added that the report also was posted on PRISM, the 

Smithsonian’s internal Web site, and reminded the Board that in January 2009 it 

had approved the launch of Phase II.   

The scenario‐planning exercises that comprise Phase II were reported as 

approximately 70 percent complete.  Ms. Matsui explained that the exercises 

involve intensive two‐day workshops that challenge Smithsonian stakeholders to 

conceptualize and discuss visions of the Institution’s future through scenario‐

based modeling.  The sessions are intended to generate detailed ideas about how 

the Smithsonian might respond to possible future events that either challenge or 

support the Smithsonian and its ability to fulfill its mission.  Ms. Matsui cited the 

current economic downturn as a timely example of an external challenge to the 

Institution.  

Ms. Matsui said that the workshop participants would meet with the Smithsonian’s 

museum, program, and office directors at the end of April 2009 to examine and 

discuss the results of the scenario‐planning sessions.  She added that the 

consultants would then synthesize all of the information gathered during Phase II 

and deliver a report of their findings in mid‐May 2009. 

Engaging the Regents

in a Scenario­Planning

Session

Ms. Matsui said that after her presentation the Regents would engage in an 

abbreviated scenario‐planning session with the assistance of Global Business 

Network (GBN) Cofounder and Chairman Peter Schwartz (who previously gave a 

luncheon presentation during the September 22, 2008, Board of Regents’ 

meeting), a member of his team, and representatives from Booz Allen Hamilton.  

She explained that the results of the first three scenario‐planning workshops 

would be presented for the Regents’ review and comment, and that their advice, 

including whether or not the different scenario environments appear to be on 

target, would inform Mr. Schwartz’s final report.  She also noted that a similar 

exercise with the Smithsonian’s advisory board chairs was scheduled for the 

following week. 

SCENARIO‐PLANNING SESSION 

Ms. Matsui then welcomed Mr. Schwartz, GBN Senior Practitioner Mark Tino, Booz 

Allen Hamilton (BAH) Senior Vice President Reggie Van Lee, and BAH Senior 

Associate Gary Bettger.  Mr. Schwartz explained that the results of effective 

scenario‐planning exercises reflect a balance between highly structured, rigorous 

analysis and imagination.  He also noted that the Smithsonian is not an institution 

“of the moment” and that its unique position in American history demands that the 
4 

development of its strategic plan recognizes the importance of this larger, long‐

term context.   

The Board then engaged in a two‐hour session to consider short‐ and long‐term 

visions for the Smithsonian.  Although near‐term views were discussed, the 

majority of the discussions were directed to projections of the Institution some 

five to 10 years into the future, as well as for the decades beyond.  The Board 

reviewed a summary of stakeholder responses from Phase 1 of the Strategic 

Planning Process; it also provided feedback on the scenario‐planning session and 

the overall strategic planning process. 

PRESENTATION BY SMITHSONIAN ENTERPRISES

The Chair introduced the presentation by Smithsonian Enterprises President Tom 

Ott by first noting that Smithsonian Enterprises (SE) had undergone some of the 

most dramatic changes in the Institution over the last two years.  The unit was 

reorganized and renamed (from Smithsonian Business Ventures to Smithsonian 

Enterprises), its priorities were realigned, its relationship to the rest of the 

Institution was redefined, and its leadership changed.  The Chair said that there 

were three goals for this presentation: to reintroduce the Regents and their 

liaisons to SE and its leadership team; to ensure that all understand the scope of 

SE’s businesses; and to make clear the challenges and possibilities that face SE, 

given the current economy and shifts in technology and consumer behavior. 

Overview of

Smithsonian

Enterprises

Mr. Ott thanked Ms. Stonesifer for the opportunity to address the Board.  He then 

reminded the Board that Smithsonian Enterprises is a division of the Institution 

that, when operating at its fullest potential, provides significant outreach for the 

Smithsonian by translating its recognized quality, expertise, and goodwill into 

products and services that enhance the Smithsonian’s reach and reputation while 

adding value and benefit to the consuming public.  SE, frequently the largest 

source of unrestricted revenue for the Institution’s Central Trust, was affirmed as 

the Institution’s primary revenue‐generating unit by the Smithsonian Business 

Ventures Task Force and the Board of Regents in January 2008.  Mr. Ott also 

explained that SE’s 454 employees are divided among three units — Media, Retail, 

and Licensing and Business Development — that operate out of either 

Washington, D.C.; Herndon, Virginia; or New York, New York; including three 

airport locations.   

Mr. Ott then cited several examples that demonstrate how SE supports the 

outreach and mission of the Smithsonian.  In its Media Group, SE’s magazines 

attract 8 million combined monthly readers and generate 2.2 million National 

Associate memberships annually — the biggest associate membership program in 

the Smithsonian.  In the Retail Group, SE museum stores record 1.8 million 

individual store transactions with visitors.  In the Licensing and Business 

Development Group, Mr. Ott reminded the Board that the forthcoming release of 

Night at the Museum: Battle of the Smithsonian is anticipated to attract over  

25 million moviegoers. 

Next an overview of SE’s mid‐year forecast was provided.  Acknowledging the 

challenging environment in which SE now operates, Mr. Ott said that its top‐line 
5 

revenues are forecast to be essentially flat as compared to fiscal year 2008 actual 

revenues.  He said that the total fiscal year 2009 revenue forecast of $157.3 million 

reflected an anticipated $17.6 million drop from SE’s fiscal year 2009 budget of  

$174.9 million, and was projected to result in a net gain loss of $9.3 million.  

However, Mr. Ott reported that extraordinary efforts by SE management had 

mitigated all but $1 million in anticipated net losses, resulting in a revised net gain 

forecast of $26.2 million for fiscal year 2009.  Examples of aggressive actions by SE 

management included reductions in workforce, compensation, and discretionary 

costs, consolidations in businesses, renegotiations with vendors, and explorations 

of new revenue‐generating opportunities.  He cautioned, however, that because of 

the economic downturn SE is operating in uncharted territory and that additional 

risks will likely challenge SE during the remainder of the fiscal year. 

Mr. Ott then summarized the shared issues that all SE groups now face.  He said 

the challenges to SE products and services include the aging of the SE customer 

base, weaknesses in brand perception and marketing, insufficiently robust digital 

offerings, and a lack of centralized databases.  Challenges from within the 

Institution include the need for greater pan‐institutional understanding of, 

collaboration with, and support for SE; inadequate funding for long‐term 

initiatives and infrastructure needs; compromised ability to exercise speed and 

agility when working with business partners in the commercial marketplace; and 

untapped digital resources and opportunities that could, if improved, enhance and 

support the Smithsonian’s outreach and value. 

Media Group Overviews of each SE group were then provided.  Mr. Ott first presented a review 

of the Media Group.  He noted that the group’s Magazine Publishing division 

provides 95 percent of the Media Group’s revenue and 90 percent of its net gain, 

and that the remainder of the group is comprised of Smithsonian Books (a 

partnership agreement with HarperCollins) and Smithsonian Channel (a joint 

venture with Showtime, Inc.). 

Mr. Ott explained that advertising’s migration from print to digital had 

permanently altered the landscape of magazine publishing.  He noted that it is an 

industry under siege, most recently because of recession‐driven cuts in advertising 

and marketing budgets, and that the Smithsonian’s Magazine Publishing division is 

the most challenged business within all of SE.  Although the division’s online ad 

spending and magazine‐associated internet businesses are performing well, they 

cannot replace print revenue losses. 

Smithsonian Books, which also operates in a difficult industry, provides mission‐

enhancing benefits but only marginal financial support.  Smithsonian Channel’s 

joint venture with Showtime, however, provides a guaranteed annual source of 

revenue that is anticipated to grow with the increased distribution of the Channel.  

Mr. Ott also noted that all operating expenses for the Emmy Award–winning 

channel are borne by the joint venture.  

Mr. Ott reported that the Smithsonian Media Group had taken both tactical and 

strategic actions to address the challenges it faces.  He said that although the 

tactical, or reactive, actions were effective, long‐term, proactive strategic decisions 

also must be made.  Mr. Ott said that the keys to the future success of the Magazine 

Publishing division will be rooted in its ability to successfully migrate from a 
6 

magazine company to a platform‐neutral content provider.  To do so, he proposed

that Magazine Publishing pursue a strategic publishing partnership that allows SE 

to control content; he added that the Secretary supported the investigation of this 

idea.  Mr. Ott also said that digital growth should be accelerated and monetized, 

especially through the use of pan‐institutional collaborations, and noted that this 

initiative would require a Smithsonian‐wide cultural shift, a reexamination of 

revenue‐sharing policies, and an investment in both infrastructure and staffing.  

Increasing media opportunities that are not ad‐reliant and maximizing the content 

and growth of Smithsonian Channel also will enhance revenues.  

  

Retail Group SE Retail Group Director Peter Gibbons then spoke about the state of the 

Smithsonian’s retail businesses.  Mr. Gibbons reminded the Board that the SE 

Retail Group includes museum and airport stores, food and beverage centers, 

interactive concessions, theaters, the Smithsonian Catalog, and e‐commerce 

activities.  He reported that the Retail Group forecasts $89 million in fiscal year 

2009 sales, a 9 percent shortfall to budget.  Although overall visitation to 

Smithsonian museums is up, overall Smithsonian retail transactions have dropped 

8 percent, compared to fiscal year 2008 transactions, due to the recessionary 

impact on consumer spending. 

Mr. Gibbons reported that aggressive management efforts have mitigated much of 

the impact from these changes.  He said that these efforts have focused on three 

areas: revenue‐generating initiatives, increasing visitation numbers and the 

duration of visitors’ stays, and control of costs.  

In addition to mitigating the impact of the changing retail landscape, the Retail 

Group’s strategic priorities will include acquiring new mission‐related content in 

the Institution’s theaters and expanding its focus on mission‐related products and 

programs.  Mr. Gibbons said that the wealth of content material that exists 

throughout the Smithsonian, including its museums, research, education, and 

publishing programs, presents enormous potential for expanded retail initiatives. 

He focused on two key initiatives that will advance the goals and revenue‐

generating efforts of the Retail Group: the consolidation of the museum store and 

catalog businesses and the reconceptualization of the catalog and e‐commerce 

platforms.  Noting that these businesses represent 76 percent of the total Retail 

Group, he said that they offer enormous upside potential and, if reorganized, 

would present significant opportunities for organizational efficiencies. 

The proposed consolidation of the museum stores and catalog units would 

combine eight separate operations into four.  Each division’s organization, 

distribution center, systems, and inventory would be merged into four 

overarching operational systems: retail organization, retail distribution center, 

retail systems, and retail inventory.  Regarding the reconceptualization of the 

catalog and e‐commerce platforms, Mr. Gibbons noted that the catalog 

organization had, over time, reduced the scope of its targeted audience and 

thereby limited its vitality, recognition, and reach.  By expanding its sights to 

include younger, trend‐conscious audiences and updating its product offerings and 

delivery systems, the Retail Group plans to broaden its consumer base, move 

“from muumuus to MOMA,” and better align its products to the Smithsonian’s 

culture. 
7 

Mr. Gibbons then explained the benefits that will be achieved through these 

operational and strategic‐planning initiatives.  The consolidation of the museum 

stores and catalog divisions will result in operational cost savings and will 

increase the Retail Group’s leverage with suppliers.  Merchandise costs will 

decrease, and consolidated product volume will support the development of 

exclusive proprietary goods that provide important contextual information, or 

storytelling opportunities, for Smithsonian merchandise.  Staff talent will likewise 

be leveraged through the consolidation of abilities, goals, and activities.  By 

creating contemporary merchandise and marketing programs, the Retail Group’s 

initiatives will enhance the Smithsonian’s brand awareness, affirm its relevance, 

and ultimately expand its revenue growth. 

Business Development

and Licensing Group

Mr. Gibbons then introduced SE Business Development and Licensing Director 

Carol LeBlanc, who noted that her scope of responsibilities includes product 

licensing and travel.  Ms. LeBlanc first noted that SE’s licensing, student travel, and 

Smithsonian Journeys programs generate limited revenue and experience 

relatively flat year‐to‐year growth; she noted, however, that the low investment 

requirements of each are very attractive to the Institution.  She said that the 

enterprises share a common need for and commitment to brand control.  Ms. 

LeBlanc acknowledged that this SE group also has been impacted by the economic 

downturn, noting that decreases in consumer discretionary spending have 

resulted in an industry‐wide drop in the travel industry. 

To address these challenges, Ms. LeBlanc explained that the Smithsonian’s travel 

programs must embrace a “cradle to grave” strategy that expands its niche 

programs beyond its current target audience (now primarily seniors, with some 

teenaged consumers) and embrace a broader market.  This portfolio approach will 

present new cultural and educational product offerings designed to better engage 

children, baby boomers, families, and college‐aged groups.  National and 

international destinations, short and long term trips, and other customizable 

options also will expand the scope and depth of the Smithsonian’s travel 

opportunities. 

To support these goals, and in recognition of the current challenges to the travel 

industry, Ms. LeBlanc said that her group is investing in the development of a long‐

term strategic plan; moving towards an online marketing mix; exploring 

marketing partnerships; and promoting value‐added, cost‐conscious products that 

recognize current travel trends.  She said that the Smithsonian’s travel programs 

are focused on managing expenses and positioning itself to take advantage of what 

is anticipated to be an inevitable rebound in the industry. 

With regard to licensing opportunities, Ms. LeBlanc said that she examined two 

issues when she assumed the management of the Licensing and Business 

Development Group: why this business had not grown over the years and, if it 

were to be developed, what its appropriate size would be.  She directed the 

Board’s attention to a chart demonstrating the scope of the Smithsonian’s 

licensing‐based retail sales as compared to that for other organizations.  She said 

that the licensing strategies employed by some organizations, such as Disney 

Consumer Brands, are not appropriate for the Smithsonian.  However, other like‐

minded organizations generate significantly more revenue than the Smithsonian 

does through licensing agreements.  Ms. LeBlanc said that the Smithsonian’s retail 
8 

sales from licensing opportunities could be developed from approximately 

$30 million to at least $250 million annually through aggressive but thoughtful 

management.   

To do so, Ms. Le Blanc said that the Institution must focus on and develop its 

Product Licensing Group, invest in the creative expertise and product 

development necessary for its success, and cultivate and formalize institutional 

support for this initiative.  Ms. LeBlanc next presented a comprehensive licensing 

strategy that was based on careful analysis of the Smithsonian brand, 

consideration of consumer genres that are compatible with the Smithsonian’s 

core, and identification of consumer groups and product categories that offer 

strong potential for product affinity and revenue growth.   

Ms. LeBlanc said that the carefully developed strategy has allowed the 

Smithsonian to communicate with potential licensees and retailers about possible 

product licensing opportunities.  The Smithsonian can now articulate the basis for 

its focus on certain consumer groups, explain the platforms it wants to employ to 

achieve future growth, and present a vision about where it wants to go in the 

future.  She added that the licensing strategy has been well received.  Ms. LeBlanc 

concluded by asserting that there is growth potential in the Smithsonian’s travel 

and product licensing areas and that, if carefully and thoughtfully done, these 

initiatives will extend the Smithsonian’s mission, increase its reach, and 

successfully generate incremental revenue. 

Oversight of

Smithsonian

Enterprises

SE Chief Financial Officer Gregory Bokman then updated the Board on the status of 

the policies, procedures, and processes that govern the oversight and 

accountability of Smithsonian Enterprises.  Noting that SE had experienced 

enormous changes over the last two years, Mr. Bokman reminded the Regents 

that, of the 25 governance reform recommendations put forth by Regents’ 

Governance Committee in 2007, five impacted SE and one was specifically directed 

at the unit.   

Mr. Bokman reported that SE operations were subsequently assessed against 112 

existing Smithsonian Directives.  He said that it had fully converted to the 

Smithsonian travel policy, and, with the exception of three existing policy 

exceptions that were reapproved by the Secretary, is now in compliance with all 

other directives.  SE’s annual budget processes are now synchronized with the 

Smithsonian’s budget planning schedule; its internal controls have been reviewed 

as part of the overall Smithsonian assessment and rated “Green,” or low risk; SE’s 

employee compensation plan now complies with the Smithsonian’s Unified 

Compensation policy; and the unit is participating on a team of Smithsonian 

representatives in the creation of Smithsonian‐wide revenue‐generating contract 

procedures that will be fully implemented upon their completion. 

He reminded the Board that Smithsonian Business Ventures’ primary business 

decisions previously were first reviewed and approved by its advisory board, 

recommended to the Secretary, and subsequently presented to the Regents.  Major 

SE business processes are now presented through the Secretary to the Regents’ 

Finance Committee, and include reviews with the Smithsonian’s Chief Financial 

Officer so that the decisions can be integrated into the Smithsonian’s overall 

financial processes. 
9 

Mr. Bokman said that SE senior compensation is now presented to the 

Smithsonian Office of Human Resources, and subsequently to the Secretary and 

the Regents’ Compensation and Human Resources Committee.  He explained that 

another new process includes a meeting with senior Trust leadership and museum 

directors at the end of the annual budget cycle to examine in detail SE’s annual 

plan, as well as review SE’s cost structure and benchmarking. 

Mr. Bokman said that SBV previously was audited annually by the Smithsonian’s 

external auditors, KPMG, as part of the overall Smithsonian audit; he added that 

that audit had a much higher materiality threshold with fewer audit details and 

procedures.  With regard to internal reviews by the Office of Inspector General, he 

said that SE had 11 open audit comments at the start of fiscal year 2008, and that 

all are now closed.  He also said that KPMG was engaged to conduct a stand‐alone 

audit of SE for fiscal year 2008, which will again be conducted for fiscal year 2009.  

The audits, which include much a lower materiality threshold with significantly 

increased procedures, are now reported through the Secretary to the Regents’ 

Audit and Review Committee. 

In summary, Mr. Bokman said that oversight of SE was demonstrably stronger and 

more frequent.  Mr. Bokman also reminded the Board that their agenda books 

included a detailed overview of the quantity and type of interactions between SE 

leadership, Smithsonian management, and the Board of Regents.  

Discussion Ms. Stonesifer thanked Mr. Ott and his team for a “remarkable presentation.”  She 

then opened the meeting for discussion. 

The first question regarded the scope, underlying philosophy, and restrictions of 

SE licensing and partnership agreements, and included concerns about the 

potential commercialization of the Smithsonian and the need to maximize the 

public’s good will towards the Institution.  The Regents discussed the possibility 

that the enduring existence of certain products, if pursued through partnership 

agreements, will be controlled by a partner and that the partner could readily 

become a de facto fulfiller —not promoter — of a Smithsonian product.  Mr. Ott 

was asked if, when considering potential licensing and partnership agreements, SE 

considers the possibility that it might have sufficient in‐house capabilities to 

pursue certain initiatives.  It also was established that the overall mix of SE royalty 

rates averages 6–7 percent, depending upon the product. 

The relationship between product quality and the Smithsonian’s reputation was 

discussed, including SE’s selection of toy products.  Mr. Ott outlined recent changes 

in SE’s vetting process for proposed licensing and product agreements.  He said 

that curators were previously involved in the product approval process and that 

now, in addition to those professionals, the Secretary, museum directors, and an 

advisory committee previously established by Acting Secretary Cristián Samper 

are included in discussions regarding new product categories and specific product 

approval as appropriate. He added that the process also includes careful 

consideration of the reputational aspects of both products and vendors, concern 

for educational standards and enhanced parental involvement, and the 

development of Web links that will guide consumers to SE Web sites that provide 

additional educational information about the products, potential uses, and 

applicable Smithsonian resources. 
10 

The Board also discussed the Smithsonian’s reputational considerations with 

regard to other SE businesses.  Ms. Matsui expressed concerns over liability issues 

that can arise with SE travel programs and in particular, with cruises.  She 

proposed a more detailed discussion regarding this issue.  

Ms. Stonesifer concluded the discussion by thanking Mr. Ott and his team for their 

presentation.  She said that their efforts had aligned an important part of the 

Smithsonian’s revenue stream with the Institution’s mission and culture.  She 

added that these actions were undertaken in a very short amount of time and 

during a period of great change.  She also expressed her appreciation for SE’s 

noteworthy actions to adapt to the changes effected by the economic downturn 

and SE’s contributions to the Smithsonian’s budget process.  

Session Adjournment Ms. Stonesifer then adjourned morning session at 12:05 p.m.   

AFTERNOON PLENARY SESSION

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

REPORT OF THE BOARD AND EXECUTIVE COMMITTEE 

Ms. Stonesifer opened her report by first thanking Mr. Kogod and his wife for 

hosting the Regents’ dinner the previous evening.  She then expressed her deep 

appreciation to Mr. Sant, noting that his leadership over the last two years 

established a standard to which she, as the new Chair of the Board, aspired. 

Regents’ Survey Results The Chair then reported on the results of the first annual Regents’ self‐assessment 

survey.  Stating that 10 Regents had responded to the survey, Ms. Stonesifer noted 

her desire that all members of the Board participate in the next review.  

Ms. Stonesifer said that, in general, the responses to the survey were quite strong 

and indicated a shared belief that Board and committee meetings were both well‐

managed and substantive in their content.  She then highlighted two issues for the 

Board’s consideration: strategic attachment and individual expertise. 

The survey indicated an almost uniform lack of certainty regarding the Regents’ 

sense of influence with regard to the Institution’s major strategic choices and the 

overall strategic planning process.  Ms. Stonesifer said that the scenario planning 

exercise that morning, as well as the strategic planning discussions scheduled for 

the Board’s June and September 2009 meetings, have been planned in part to 

better engage the Board in both the strategic planning process and the hard 

choices that will need to be made during it.  She added that the Board’s 

commitment to the Smithsonian’s mission will continue to be fostered through 

first‐hand exposure to the Smithsonian staff and programs that support that 

mission, and cited that morning’s guided tour by Freer and Sackler Galleries 

Director Julian Raby as such an opportunity. 
11 

The results of the self‐assessment survey, said Ms. Stonesifer, also prompted a 

closer examination of the individual expertise each Regent can offer to the Board.  

Citing the recent contributions of individual Regents to the Smithsonian’s finance 

and investment challenges, as well as the development of the new National 

Museum of African American History and Culture, she asked that each Regent 

consider other areas of expertise they could offer to benefit both the Board and the 

Smithsonian.  She noted that the scientific expertise within the Board could be 

applied to the consideration and development of the plans for Smithsonian 

science. 

Board Issues for 2009 Ms. Stonesifer next directed the Board’s attention to four issues that will be 

substantively addressed during the next meetings of the Board: strategic planning, 

communications and government affairs, the national campaign, and 

interdisciplinary science.  She asked the Board to opine on whether these are the 

right issues for the Board to explore at this time and if there are elements of each 

that should be especially included in these discussions. 

Conducting an organizational review of the Institution was discussed and, in 

particular, supporting a commitment to excellence in the Smithsonian’s 

organizational process.  The Secretary said that the Institution was preparing to 

engage an organizational consultant to review the Smithsonian’s administrative 

finance functions and how the Institution conducts its programs, such as 

interdisciplinary research and education.  Noting that an organizational review 

will be a multi‐staged process, he said that he anticipates that the organizational 

review will likely be conducted in the fall of 2009 and that the results of that 

analysis will be driven by the results of the strategic planning process, and will 

inform subsequent discussions by the Board. 

New Orientation

Materials for the Board

of Regents

Ms. Stonesifer then reported that the Office of the Regents, with the support of 

numerous offices throughout the Institution, had created a new Orientation Book.  

The book includes substantive information about the duties and responsibilities of 

the Board of Regents, as well as how the Board executes its duties.  She said that 

the book will be provided to both of the new Regents and given to current Board 

members, as well as posted on the Regents’ Web site. 

Meeting of the

Executive Committee

and Approval of the

January 26, 2009,

Meeting Minutes

In closing, Ms. Stonesifer said that the Executive Committee met with the 

Chancellor on March 19, 2009, for the purpose of approving the agenda for this 

meeting, as well as to provide a preliminary approval of the minutes of the January 

26, 2009, Regents’ meeting.  The Board of Regents then approved the minutes. 

See attached Resolution 2009.04.01 (Minutes of the Board of Regents, Appendix

A).

REPORT OF THE SECRETARY

Asbestos Findings Secretary Clough stated that his progress report to the Regents would primarily 

focus on three issues: asbestos‐related problems in two Smithsonian museums; 

the status of the Smithsonian’s budgets and fund‐raising efforts; and recent 

appointments to the Institution’s leadership team. 
12 

The Secretary said that the Washington Post had recently published three articles 

about two asbestos‐related findings at the Smithsonian.  The first incident 

involved an exhibits production employee at the National Air and Space Museum 

(NASM) who, in a Museum‐sponsored briefing the previous year, was informed 

that some of the joint spackling compounds applied to the Museum’s wallboards 

contained asbestos.  Secretary Clough explained that, although the Smithsonian 

had previously conducted asbestos prevention and protection information 

sessions with the Institution’s physical plant employees (i.e., electricians and 

mechanics), this was the first time that the members of this particular office had 

been made aware of the problem — an action the Secretary characterized as an 

“oversight.”   

The employee filed a Workers’ Compensation claim with the Department of Labor, 

and a claim under the Federal whistleblower protection provisions of the Clean Air 

Act.  Both claims were denied, and the employee has appealed.  

The Washington Post then published an article about an incident that occurred 

during the renovation of the National Museum of American History from 

September 2006 to November 2008.  The Secretary explained that, although the 

Smithsonian had followed all proper procedures and advised the prime contractor 

in advance about the existence of asbestos in the 1960s‐era building, a 

subcontractor conducted an unauthorized procedure in a wall system and 

subsequently discovered asbestos‐laden masking tape on pipe insulation in that 

area.  In response to this discovery and in accordance with best practices, the site 

was shut down, and the museum underwent a $2 million remediation effort. 

The Secretary emphasized that the public was not exposed to asbestos in either 

museum.  He also detailed the efforts that the Smithsonian had undertaken both 

before and after these reports, including an ongoing executive review of safety 

procedures. 

He first explained that the Smithsonian’s physical plant includes older buildings 

with both known and unknown construction materials and that findings of 

asbestos, for example, are common in any building constructed in the 1970s.  He 

then spoke of a Smithsonian‐wide safety initiative that was initiated over five 

years ago.  Since the launch of that effort, the Institution has established new 

safety manuals, policies, and procedures.  In addition, the Smithsonian’s total 

recordable injury rate fell to below the Bureau of Labor Statistics’ national average 

of all museums, historical sites and similar institutions, as well as below the 

Federal government average; and safety‐related communications with staff have 

been enhanced.   

Secretary Clough said that NASM became aware of the building’s asbestos issues 

prior to the launch of the pan‐institutional safety initiative.  He added that the 

decision to counsel and train the Museum’s physical maintenance staff on 

asbestos‐related issues reflected the established safety practices at that time.  He 

said that the NASM asbestos safety briefing that prompted this specific employee’s 

concerns was evidence of the Smithsonian’s implementation of updated safety 

systems. 

However, the Secretary also noted that the previous oversight that occurred at 
13 

NASM also reflected the decentralized nature of the Smithsonian.  He said that, 

although the new safety processes are effective, it is imperative that the 

Smithsonian always remain vigilant about maintaining a centralized, consistent, 

and organized approach with regard to the safety of its employees and the public.   

Secretary Clough said that the Smithsonian is taking a number of steps to assure 

both the public and its staff about the safety of its facilities.  He reported that an 

independent outside expert will be brought in to conduct a thorough review of the 

Smithsonian’s asbestos safety policies, procedures, and communications to assure 

that they are effective and comply with applicable legal standards. This process 

will include interviewing workers, who may participate anonymously.  The group 

will also assess all of the Smithsonian’s safety procedures and communications, 

including those for other hazardous materials.  The Secretary said the findings will 

be reported directly to the Office of the Secretary; he added that asbestos safety 

will be an agenda item at every bi‐monthly meeting of the Smithsonian’s safety 

coordinators, who will keep museum directors informed about safety issues.   

The Secretary said that current and former NASM employees who believe they 

might have been exposed to asbestos in the performance of their work will be 

offered free medical screenings by an outside expert.  All current and former 

Smithsonian employees and volunteers may visit the Institution’s Health Services, 

free of charge, to discuss asbestos‐related concerns; all employees also will have 

access to, either in person or through PRISM, an educational lecture by an outside 

authority on asbestos.  In addition to the carpenters, plumbers, welders, pipe 

fitters, electricians, and others who have already received mandatory asbestos 

safety training, all exhibits production employees have been mandated to undergo 

similar training.  The Secretary added that he would provide updates to the Board 

on the results of these initiatives.  

Commenting on his testimony before the Committee on House Administration 

about the Smithsonian’s management of asbestos and other hazardous materials, 

the Secretary reported that the hearing went very well and that the media 

coverage was balanced.  He also thanked the Congressional Regents for their 

support.  He added that a meeting was being scheduled with the editorial staff at 

the Washington Post to discuss its coverage.  

The Smithsonian’s

Federal and Trust

Budgets

Secretary Clough next updated the Board on the status of the Institution’s budgets.  

He first reported on the $25 million allocation to the Smithsonian from the 

American Recovery and Reinvestment Act of 2009, or “stimulus bill.” The 

Secretary said that, although more funding had been anticipated, he believes that 

this amount is appropriate for the Institution.  The funds will be applied as follows: 

$4.6 million will be directed to the Arts and Industries Building, primarily for work 

on the building’s exterior; the National Zoo will receive $11.4 million that, in 

combination with other funding, will include addressing animal fire safety issues 

at the Zoo; and the remaining $9 million will be dispersed to fund other shovel‐

ready projects throughout the Institution.  The Secretary thanked the 

Congressional Regents for their many efforts to successfully guide the Smithsonian 

through the process of the bill’s creation and approval.  He said that the Institution 

will be providing monthly reports to the Congress about the Smithsonian’s 

stimulus‐funded projects, including the jobs that it creates.  The Secretary added 

that 80% of the Smithsonian’s stimulus funds will be spent within at least the first 
14 

120 days of receipt, which could allow the Smithsonian the opportunity to 

participate in other stimulus‐funded projects that prove to need extra support, and 

that these actions will put the Smithsonian in very good standing when it submits 

its regular Federal budget request.   

Regarding the fiscal year 2009 Federal Budget, which was received with the 

approval of the fiscal year 2009 Omnibus Appropriation, the Secretary reported 

that the Smithsonian is in good shape.  The Institution received a total of  

$731 million, a 7 percent increase over its fiscal year 2008 budget, which allowed 

the Federal hiring freeze to be lifted.  The appropriated funds include $593 million 

for Operations (including $6.9 million for facilities maintenance), $123 million for 

Facilities Capital and $15 million for the Legacy Fund.  Congress also agreed to 

allow the Institution to shift funds to cover almost all of its non‐discretionary 

items.   

The fiscal year 2010 Federal budget process was reported as under way, in good 

shape, and fair.  The Secretary commented on the Smithsonian’s positive meetings 

with the new leadership of the Office of Management and Budget (OMB) and said 

that the Federal budget proposed by OMB represents a 6 percent increase over the 

fiscal year 2009 Federal budget.  He also noted that the OMB allocation was not 

final and that the distribution between Operations and Facilities Capital might 

require some changes.  Secretary Clough added that the fiscal year 2010 budget 

includes $20 million for the design of the new National Museum of African 

American History and Culture, which is a mandated expenditure. 

Discussing the fiscal year 2009 Trust budget, the Secretary said that, in addition to 

the challenges previously reported by Smithsonian Enterprises President Tom Ott, 

other components of the Trust budget reflected the impact of the economic 

downturn.  He said that the Smithsonian’s endowment had dropped nearly  

30 percent and therefore revenues from the endowment had decreased.  Although 

management has taken successful steps to balance the Trust budget, such as 

offering extended hours at the top three museums to increase attendance and 

extend retail operations, Secretary Clough said that aggressive planning continues 

to prepare for the possibility of additional revenue shortfalls.  He added that the 

results of these efforts would become clear within the next two months, at which 

point management might have to consider additional actions, such as employee 

furloughs.  On the positive side, the Secretary reported that fund‐raising efforts 

remain on track to reach the Smithsonian’s $120 million fund‐raising goal for fiscal 

year 2009.  

Additions to the

Smithsonian’s

Leadership Team

The Secretary then briefed the Regents on the status of several senior leadership 

positions.  In addition to Johnnetta Cole, the new Director of the National Museum 

of African Art who joined the Board for lunch that day, Richard Koshalek was hired 

as the new Director of the Hirshhorn Museum and Sculpture Garden.  Secretary 

Clough characterized both as high‐energy leaders with big‐picture views; he also 

thanked Eli Broad for his support in cultivating Mr. Koshalek’s interest in and 

commitment to the Hirshhorn.  He announced that Judith Leonard, who has 

extensive experience in both Federal agencies and educational institutions, will 

begin as the new Smithsonian General Counsel in June 2009 and reported that the 

search for the next Under Secretary for Science was under way.  Ms. Stonesifer 

requested that copies of that job description be provided to the Board to that it 
15 

could support that search.  Ms. Stonesifer also expressed her appreciation to 

Acting General Counsel Marsha Shaines for her invaluable, and active, leadership 

during this period of transition in the Office of General Counsel, which prompted 

applause from those present. 

REPORT OF THE SMITHSONIAN NATIONAL BOARD

Smithsonian National Board (SNB) Chair Hacker Caldwell presented the report 

from the Smithsonian’s pan‐Institutional advisory board.  Comprised of 34 

members, with 17 honorary members and 176 alumni, SNB represents 30 states 

and Washington, D.C.  Mr. Caldwell reminded the Board that SNB’s goals continue 

to be outreach and advocacy in SNB members’ communities on behalf of the 

Smithsonian, as well as generating financial resources. 

Mr. Caldwell reported that SNB members have been conducting a national effort to 

introduce Secretary Clough to their home communities.  He said that welcoming 

events for the Secretary had been held in Los Angeles (including a dinner hosted 

by Regent Eli Broad) and New York City, and that the Secretary would soon attend 

SNB‐sponsored activities in Boston, Washington, D.C., San Francisco, and 

Minneapolis. 

SNB members have welcomed the Secretary’s invitation to strengthen SNB’s 

advisory role to the Institution.  National Board members and alumni have 

participated in the first two phases of the Smithsonian’s strategic planning 

process.  Mr. Caldwell reminded the Board that two of the four newly elected non‐

Regent members of the Regents’ Advancement Committee are affiliated with SNB, 

one as a current SNB member and the other as a SNB alumnus.  In addition, the 

National Board’s spring 2009 meeting will include discussions with the Secretary 

on the Institution’s educational direction. 

Mr. Caldwell also asked for the Board’s support for the proposed slate of nine 

nominees to the SNB Class of 2009, which would be considered during the report 

of the Regents’ Governance and Nominating Committee.   

REPORT OF THE AUDIT AND REVIEW COMMITTEE

The Report of the Audit and Review Committee was presented by Committee Chair 

John McCarter.  Mr. McCarter said that the Committee had met three times since 

the January 26, 2009, Regents’ meeting and that his update would include several 

topics that had been recurring items on the Committee’s agenda.

Report on the

Institution’s Audited

Financial Statements

for Fiscal Year 2009

Mr. McCarter first reported that the Smithsonian received an unqualified opinion 

on its audited financial statements for fiscal year 2008; the Institution’s auditors, 

KPMG, also found no material deficiencies.  He said that the significant decline in 

the endowment’s value was the most significant activity in the fiscal year 2008 

report.  Reflecting the impact of the economic turmoil in the global investment 

markets, the Institution recorded a nonoperating loss of approximately  

$199 million in fiscal year 2008, whereas it recorded an approximately  
16 

$120 million gain in fiscal year 2007.

KPMG’s management letter also was discussed.  KPMG acknowledged the 

Institution’s improvements in its financial reporting, noting that there had been a 

significant improvement in the number of uncorrected audit differences (a decline 

of 67%) and an improvement in corrected audit differences (a decline of 80%).  In 

addition, approximately 75% of the open audit comments from previous years 

were closed by the Institution during fiscal year 2008. 

KPMG identified three “significant deficiencies” as a result of the fiscal year 2008 

audit, which largely pertained to technical reporting issues in connection with 

three areas: contributions accounting, accounting for construction activities, and 

the process of identifying assets to be recorded as “released from restriction.”  Mr. 

McCarter said that the Committee was confident that management understood 

what must be done to resolve these issues, and was committed to addressing them 

during fiscal year 2009. 

At the request of the Inspector General, KPMG also performed its first audit of 

Smithsonian Enterprises’ (SE) “net gains.”  This action was taken to verify the 

basis upon which certain SE compensation calculations are based.  KPMG reported 

that the SE net gain reported for fiscal year 2008 was properly stated and could 

reliably be used for compensation computations.  KPMG identified three 

“significant deficiencies” at SE: system access; inventory and sales returns 

reserves; and the accounting for deferred promotion costs.  Mr. McCarter again 

reported that management expects to resolve all of these issues in fiscal year 2009.  

He also noted that KPMG reported to the Committee on their required 

communications in connection with both the Institution’s audit and the audit of 

SE’s net gain. 

Mr. McCarter reminded the Regents that the Office of the Inspector General is 

responsible for the Institution’s engagement with KPMG and in that capacity 

oversees the conduct of the audit.  He thanked the Inspector General and the Chief 

Financial Officer for their different contributions to the audit process and reported 

progress on the effort to appropriately distribute responsibilities between their 

offices, the Committee, and the full Board.  Mr. McCarter said that the Inspector 

General noted that the fiscal year 2008 audit was completed earlier than the fiscal 

year 2007 audit and provided suggestions to further improve the audit process.  

He also said that, over the course of the Committee’s regular executive session 

meetings with the Inspector General, it had received numerous updates on her 

office’s most recent audits.  

Update on

Governance Reform

Recommendation 23

Mr. McCarter next addressed the Institution’s progress on the reform of its 

internal financial controls.  He reminded the Board that Governance Reform 

Recommendation 23 had directed the Committee to work with the Secretary and 

the Chief Financial Officer to review the Institution’s financial reporting systems 

and internal controls.  He said that management had undertaken a comprehensive 

assessment of the control environments for 23 separate financial processes and 

developed a detailed plan for addressing the control deficiencies that were 

identified.  The control environment for each process was rated and ranked to 

establish the level of risk to the Institution should control deficiencies or 

suggested improvements not be addressed.  
17 

Mr. McCarter reported that 18 of the processes evaluated were noted as having 

adequate internal controls and were rated either moderate risk or low risk.  Five 

processes, however, were rated high risk.  In response, the Committee reviewed 

the original plan to address these control deficiencies and directed the Chief 

Financial Officer to accelerate the proposed actions to strengthen controls 

associated with these high risk areas, and review the costs associated with the 

proposed remediation plan.   

The Chief Financial Officer later presented, and the Committee subsequently 

endorsed, a revised plan that accelerates the remediation of the control 

deficiencies identified for the high risk areas and requires fewer new resources.  

Mr. McCarter said that management is committed to addressing the control 

deficiencies of the high risk areas as quickly as possible, given the sequential 

nature of the actions that are required.  He added that management has committed 

to substantially eliminating the current control deficiencies and achieving an 

essentially moderate risk control environment by the end of 2010, but that 

achieving these goals will be largely dependent on the speed with which the 

Institution can hire new staff and improve personal property management. 

An inventory of personal property remains the only action to be conducted in 

fiscal year 2011.  By the end of summer 2011, the results of the inventory should 

confirm that management has achieved a moderate risk environment for the 

management of personal property.  Mr. McCarter then noted that another high risk 

area, contribution accounting and financial reporting for donations, is part of a 

larger review by an outside consultant contracted by the Office of External Affairs 

to advise on the Institution’s national campaign.  He said that the results of this 

review will be instrumental in establishing the timeline for strengthening the 

charitable contributions internal controls environment.  The costs associated with 

these process improvements also have yet to be established.   

Mr. McCarter again stated that management’s ability to address these deficiencies 

will be dependent upon the Federal budget request for fiscal year 2010, which 

includes a number of new Federal positions to support the strengthening of 

internal controls.  He noted, however, that this is the first time that the Institution 

has a comprehensive view of its internal controls deficiencies, the actions required 

to address the problem areas, and a preliminary estimate of the remediation costs.  

He added that the work being done to transition the Institution’s high risk areas to 

areas of moderate risk is consistent with the work being done to resolve the open 

audit findings identified by KPMG; he also stated that both the Committee and 

management remain committed to addressing the Institution’s internal control 

deficiencies. 

IRS Form 990 Revisions to IRS form 990, which will dramatically and substantively change the 

reporting requirements of the Institution’s non‐profit tax return, were then 

discussed.  Mr. McCarter reminded the Board that the new reporting requirements 

will go into effect with the Institution’s preparation of its fiscal year 2009 return, 

which will be filed during the summer of 2010.  He said that the Committee will 

hold an extensive session with staff during that summer, prior to filing the revised 

990. 
18 

Expiration and

Cancelling of Federal

Funding Obligations

Mr. McCarter then reported on an issue that Representative Sam Johnson had 

brought to the attention of the Committee.  In a process designed to prevent 

overspending, Federal obligations for unspent appropriations for Salaries and 

Expenses expire after one year and unspent funds are subsequently returned to 

the U.S. Treasury after five years.  Mr. McCarter further explained that every well‐

run Federal agency has some funds that properly revert to the Treasury when they 

cancel and that the Smithsonian’s cancelled amounts are in line with government‐

wide experience. 

As noted by Mr. Johnson, the Smithsonian’s fiscal year 2008 financial statements 

state that $4.2 million or 0.9% of the Smithsonian’s total fiscal year 2003 Salaries 

and Expenses appropriation reverted to the Treasury because the funds had 

expired for new obligation and remained unexpended at the end of the five‐year 

period in an expired status.  Mr. McCarter said that the Committee discussed at 

length the amount of the cancelled funds, the tools available to management to 

limit cancelling balances, and the steps management will take to reduce these 

balances in the future without overspending the Smithsonian’s Federal 

appropriations.  He assured the Board that the Committee believes that 

management has taken important steps to address this issue and that, going 

forward, the Committee will be monitoring management’s actions with regard to 

this issue.  

REPORT OF THE GOVERNANCE AND NOMINATING COMMITTEE

Statement of

Appreciation to the

Office of the Regents

and Acting General

Counsel Marsha

Shaines

Before giving the Governance and Nominating Committee report, Committee Chair 

Shirley Ann Jackson expressed her appreciation to John Lapiana and the Office of 

the Regents for their efforts on behalf of the Committee.  She also praised Marsha 

Shaines, who was attending her final meeting as Acting General Counsel, for her 

leadership and support for the Committee’s initiatives, especially with regard to 

FOIA and governance issues.   

Appointment Status of

Two New Regents

Dr. Jackson then updated the Board on the appointment status of the newly 

elected citizen Regents, David Rubenstein and France Córdova.  She reported that 

the Senate had approved both nominations with the support of Senators Leahy 

and Dodd.  Dr. Jackson said that Mr. Rubenstein met with members of the House 

Administration Committee in February 2009; she also reported that Committee 

staff anticipated that his nomination would soon go to the House floor.  Regarding 

Dr. Córdova, Dr. Jackson said that Representatives Becerra, Johnson, and Matsui 

had introduced legislation to provide for her appointment and that Dr. Córdova 

would next meet with the House Administration Committee.  The appointments of 

both nominees, said Dr. Jackson, are expected to be finalized before the Board’s 

June 2009 meeting. 

Revised Financial

Disclosure Statement

The Regents’ annual financial disclosure forms were discussed next.  Dr. Jackson 

said that the revised forms would soon be mailed and highlighted two refinements 

approved by the Committee at its last meeting.   

Dr. Jackson explained that nominated Regents who are awaiting formal approval 

of their appointments by the Congress and the President will be asked to complete 
19 

the Regents’ financial disclosure statement in advance of formal approval.  The 

purpose of this action will be to identify any potential conflicts of interest so that 

nominees can participate in deliberations as guests of the Board.  She also 

reported that Regents now will be asked not only to identify relationships with 

business or financial concerns that may be doing business with the Smithsonian, 

but also entities that may be seeking business with the Smithsonian.  This change 

is intended to strengthen the Board’s ethics reporting and bring its disclosure 

responsibilities more in line with those of Smithsonian staff, as well as other public 

officials.  

Statement of

Appreciation  

to Diana Aviv

Next Dr. Jackson requested that the Board consider a new motion that was not on 

the formal meeting agenda.  She reminded the Board that Diana Aviv, a non‐Regent 

and founding member of the Governance and Nominating Committee, had 

resigned from the Committee in March 2009.  Because Ms. Aviv had provided 

critical assistance to both the Committee and the Board in its governance reform 

initiatives, the Board agreed that her departure would leave a significant void in 

the Committee’s membership.  A statement of appreciation for the contributions of 

Ms. Aviv was then approved.   

See attached Resolution 2009.04.02 (Minutes of the Board of Regents, Appendix

A).

Revisions to the

Smithsonian’s

Indemnification

Policies

Proposed revisions to the Smithsonian’s indemnification policies were then 

considered.  Dr. Jackson said that two policies, one for employees and volunteers 

and the other for advisory board members and Regents, had been reviewed with 

regard to the unique and substantial protections already afforded by Federal law, 

in particular the Westfall Act.  In addition, the Justice Department is generally 

authorized to represent Federal officials and employees sued for acts conducted 

within the scope of their employment. Dr. Jackson presented the Committee’s 

recommendation that the Board adopt an indemnification policy for employees 

and volunteers that gives the Regents discretion to reimburse liabilities or a legal 

defense expenses not provided by the Smithsonian or the Department of Justice.   

With regard to advisory board members and Regents, she said that the Committee 

recommended a similar policy, except that Regents and advisory board members 

would be entitled to payment for legal expenses in civil actions where they 

succeed on the merits, and entitled to advancement of legal expenses (if the 

Department of Justice has declined to provide representation).  In both instances, 

certain conditions must be met.  These conditions include showing that the 

member did not receive any personal benefit that he or she otherwise was not 

entitled to from the action and that the member reasonably believed that the 

action under complaint was lawful.  These provisions, Dr. Jackson explained, were 

to address the Committee’s conclusion that such mandatory indemnification is 

necessary to attract quality candidates to the Smithsonian’s advisory boards, 

including the Board of Regents.   

She noted that the Committee had considered the benefits of a completely 

discretionary policy that would allow the Board to decline indemnification if it 

determined such an action was warranted.  The Committee concluded, however, 

that the benefits of attracting strong board members outweighed the potential 

dangers of mandatory indemnification.  Dr. Jackson added that the Smithsonian’s 
20 

current indemnification policy, which was adopted in 2001, was mandatory in 

these aspects for both employees and board members.  She noted that members of 

the Board’s Executive Committee had expressed concern about the mandatory 

provisions in the board member policy.  To address that issue, members of the 

Committee subsequently agreed to new language in the policy that provides for 

the Board of Regents’ determination that the standards for indemnification have 

been met. 

See attached Resolution 2009.04.03 (Minutes of the Board of Regents, Appendix

A).

Appointments to the

Smithsonian National

Board and Smithsonian

Advisory Boards

The Board was asked to consider proposed appointments to the Smithsonian 

National Board and several Smithsonian advisory boards.  Dr. Jackson said that the 

proposed appointment of each candidate was supported by the respective 

advisory board, museum or unit director, the Under Secretary with oversight 

responsibility of that unit, the Office of External Affairs, the Secretary, and the 

Committee.  The appointments were approved. 

See attached Resolutions 2009.04.04–2009.04.08 (Minutes of the Board of

Regents, Appendix A).

Non­Regent

Appointments to the

Strategic Planning and

Programs Committee

The proposed appointments of three individuals to serve as non‐Regent members 

of the Strategic Planning and Programs Committee were next discussed.  Dr. 

Jackson reminded the Board that in May 2008 the Regents had adopted a 

Governance and Nominating Committee recommendation to appoint non‐Regent 

members to Regents’ committees and that members of Smithsonian advisory 

boards or other individuals with strong ties to the Institution would be considered 

first.  She also noted that in January 2009 the Board had approved the 

appointment of four non‐Regents to the Advancement Committee, which has 

already benefited from their engagement.  

Dr. Jackson said that the nomination of the proposed candidates had been 

reviewed with both the Secretary and Strategic Planning and Programs Committee 

Chair Doris Matsui, after which the Committee agreed to recommend their 

appointments by the Board of Regents.  She also noted that each candidate is a 

current member of a Smithsonian advisory board.  The appointments of Clark 

Bunting, Judy Huret, and Paul Neely to the Strategic Planning and Programs 

Committee were then approved.   

See attached Resolution 2009.04.09 (Minutes of the Board of Regents, Appendix

A).

Revisions to the Bylaws

of the National Museum

of African American

History and Culture

Advisory Council

The report of the Governance and Nominating Committee concluded with a 

discussion of proposed revisions to the bylaws for the Advisory Council of the 

National Museum of African American History and Culture.  Dr. Jackson explained 

that the proposed revisions address the size of the Council, term limits, and the 

structure of the Council’s committees and are largely intended to support the 

Advisory Council’s efforts during this critical period of fund raising and 

development for the new Museum.  She reminded the Board that although the 

term limits and size of the Council were established by statute, the Board of 

Regents possessed the authority to waive them.  Noting the Committee’s 
21 

recommendation to approve the proposed revisions, the Regents approved the 

motion. 

See attached Resolution 2009.04.10 (Minutes of the Board of Regents, Appendix

A).

In closing, Dr. Jackson noted that the Board, at its discretion, might consider a 

revision to its Bylaws regarding the Board Regents’ oversight responsibilities for 

advisory councils created in anticipation of new museums versus those for 

advisory boards to fully established museums. 

RECENT ACQUISITIONS AND DISCOVERIES

Ms. Stonesifer directed the Board’s attention to a report on recent activities of 

significance to numerous units.  She said that, although this topic would not be 

reviewed during this meeting, future Board meetings will include more 

information and discussion about the new acquisitions and discoveries that affirm 

the Smithsonian mission. 

LEGISLATIVE ACTIVITIES AND ISSUES

Director of Government Relations Nell Payne stated that the report found in the 

Regents’ agenda books was current.  Ms. Stonesifer noted that the stability of the 

Smithsonian’s current Federal budget discussions reflected the dedicated efforts of 

Ms. Payne and her staff. 

REPORT OF THE FINANCE COMMITTEE

Attending his last meeting as a member of the Board of Regents and Chair of its 

Finance Committee, Eli Broad presented his final report for that Committee.  Mr. 

Broad said that the Finance Committee had met once since the last Regents’ 

meeting and that he would update the Board on three topics reviewed by the 

Committee.  

Mid­Year Financial

Report

Mr. Broad reported that Chief Financial Officer Alice Maroni had provided a mid‐

fiscal year 2009 financial report to the Committee.  It was acknowledged that fiscal 

year 2009 continues to be a financially difficult year for the Smithsonian because 

of the global economic crisis.  The value of the endowment has been reduced, 

business revenues have decreased in response to changes in American consumers’ 

behavior, and cuts in the Federal Reserve’s interest rates have driven down 

returns on the Institution’s short‐term investment income.  Overall, the Institution 

forecasts a decrease in net assets of $172 million, primarily due to the impact of 

the U.S. economic recession on the endowment.  In addition, most major sources of 

Central Trust budget income have fallen short of budget. 

Mr. Broad said that the Secretary had taken immediate steps to reduce the 
22 

Smithsonian’s near‐term spending.  Two pan‐institutional teams were chartered: 

one to consider options for stimulating new unrestricted Trust revenues, and one 

to evaluate the rationale for expenditures from the Institution’s Central Trust 

budget.  The recommendations of the two teams and the results of the strategic 

plan will inform the fiscal year 2010 and future Trust budgets.  

With respect to the Federal budget, Mr. Broad reminded the Regents that Congress 

had enacted and the President then signed into law an omnibus appropriations bill 

in March 2009.  The Smithsonian will receive a 7% increase in Federal funding 

over the prior year, which will be sufficient to cover most of the Institution’s 

mandatory expense requirements.  He also noted that the Institution had received 

$25 million from the American Recovery and Reinvestment Act of 2009 for 

facilities repair and revitalization. 

Fiscal Year 2010

Federal Budget

Mr. Broad said that the Committee also was briefed about the Institution’s fiscal 

year 2010 Federal budget request to Congress.  He noted that, in light of the new 

Administration’s commitment to reduce the Federal budget deficit by half during 

President Obama’s first term, obtaining Federal increases will be challenging.  

Nevertheless, Mr. Broad reported that the Institution’s negotiations with the Office 

of Management and Budget resulted in a better outcome than the majority of 

comparable organizations.  At $759 million, the Smithsonian’s fiscal year 2010 

budget request to Congress is 6% over the fiscal year 2009 appropriation 

(excluding the Legacy Fund). 

The Board then approved a proposed motion to authorize the Secretary to submit 

to Congress the Smithsonian’s Federal budget request for appropriated funds for 

fiscal year 2010. 

See attached Resolution 2009.04.11 (Minutes of the Board of Regents, Appendix

A).

The Committee also received an update from Smithsonian Enterprises (SE) 

President Tom Ott.  Because the content of the report to the Committee was 

included in the SE presentation to the Board earlier that day, Mr. Broad declined to 

add further comment. 

Mr. Broad concluded his report by thanking Chief Financial Officer Alice Maroni 

and her staff for their support.  Mr. Sant then expressed, on behalf of the Board, his 

appreciation to Mr. Broad for his contributions as a member of the Board of 

Regents, as well as his ongoing commitment to serve on the Regents’ Investment 

Committee.  In response, an enthusiastic and standing ovation was held for Mr. 

Broad in recognition of his contributions to the Smithsonian.  

REPORT OF THE FACILITIES COMMITTEE

Update on the

Smithsonian’s Facilities

Capital and

Maintenance

Requirements

Facilities Committee Chair Robert Kogod said that the Committee met on February 

23, 2009, at which time it reviewed the Smithsonian’s facilities capital and 

maintenance investment requirements for fiscal years 2008 through 2017.  He 

noted that that report, copies of which were included in the Regents’ agenda 
23 

books, was made in response to the 2007 GAO report that documented, at that 

time, a $2.5 billion shortfall over a 10‐year period.  Mr. Kogod said that the 

Committee had requested that the Office of Facilities Engineering and Operations 

(OFEO) provide updated reports twice a year so that both the Committee and the 

Board of Regents are kept current on of the Smithsonian’s facilities capital needs; 

he also noted that the October 30, 2008, report reflected an updated shortfall 

estimate of $2.338 billion. 

Search for New OFEO

Director

Mr. Kogod next reported on the search for a Director of OFEO.  The position, which 

was announced as either a Federal or Trust‐funded position, attracted 

approximately 200 applications from within and outside of the Smithsonian.  

Under Secretary for Finance and Administration Alison McNally, the selecting 

official, reported that the applicant pool had been screened and subsequently 

reduced and that an appointment would likely be made at the end of April or in 

early May 2009. 

Comments on

Committee Size,

Federal Funding

Noting that the Facilities Committee had relatively few members (Mr. Kogod, 

Senator Leahy, and Representatives Becerra and Johnson), Mr. Kogod said that he 

anticipated that a request to augment the Committee’s membership will likely be 

brought to the Board at a later time.  He also said that he had no further comments 

to add to earlier reports on the Federal appropriations for the Smithsonian’s 

facilities capital requirements that were included in the stimulus bill and the 

Legacy Fund. 

Updates on Major

Facilities Capital

Projects

Mr. Kogod then provided updates on five major Smithsonian facilities capital 

projects, noting that a sixth key project — the design and construction of the 

National Museum of African American History and Culture — had been previously 

reviewed by the Board that day.  He reported that construction of a greenhouse 

complex at the Institution’s Suitland Collections Center (SCC) in Suitland, 

Maryland, was approximately 10 percent complete with an anticipated completion 

date of December 2009.  The total cost of the project will be about $15 million, of 

which $12.5 million has been appropriated and $2.5 million is included in the 

fiscal year 2010 budget.  The status of renovations to Pod 3, a storage facility that 

is located at the SCC, was reviewed.  Mr. Kogod said that construction was 

approximately 30 percent complete and is anticipated to be finished in March 

2010.  The total estimated cost of the project is $42.65 million, of which  

$25 million already has been Federally funded and $15 million is included in the 

fiscal year 2010 Federal budget. 

He then discussed the replacement of laboratory and office facilities at the 

Gamboa, Panama, site of the Smithsonian Tropical Research Institute.  The total 

estimated project cost is $19.13 million in Federal and Trust funds ($3.46 million 

will be Trust); $8 million is in hand and $11 million is in the fiscal year 2010 

budget.  Mr. Kogod said that the anticipated date of completion for the project has 

not yet been determined because of a recent change in the project’s architectural 

firm. 

Mr. Kogod said that construction of Phase 2 of the National Air and Space 

Museum’s Steven F. Udvar Hazy Center in Dulles, Virginia, is approximately  

11 percent complete and anticipated to be finished in the spring of 2011.  The total 

project cost will be $81 million, of which $68 million in Trust funding is in hand 
24 

and $13 million is included in the fiscal year 2010 Federal budget.  The total 

estimated project cost of replacement laboratory and support facilities at the 

Smithsonian Environmental Research Center in Edgewater, Maryland, is  

$41 million.  The majority of the project’s funding will be Federal, and therefore 

subject to appropriations; $3.5 million is in hand, $12.5 million will in the fiscal 

year 2010 budget, and $25 million will be in the fiscal year 2011 budget.  

Construction is scheduled to commence in 2010 and be completed in 2012. 

Vehicle Maintenance

Branch Authorization   Mr. Kogod then presented the Committee’s recommendation that the Board 

authorize the Secretary to submit a request for Congressional authorization to 

plan, design, and construct a new vehicle maintenance facility at the Suitland 

Collections Center.  As Mr. Kogod explained, the facility is presently housed in a 

National Zoo building (the General Services Building, or GSB) that will soon be 

renovated.  He added that the current location is also incompatible with other 

offices, such as the Zoo’s Animal Nutrition Commissary, that are located in the GSB.  

He reported that OFEO had conducted extensive investigations of relocation 

options for the vehicle maintenance facility both during and after the renovation of 

the GSB, including reviews of both build‐to‐suit and for‐lease facilities.  The 

Facilities Committee concluded that the construction of a new vehicle maintenance 

facility would best address the needs of both the Vehicle Maintenance Branch and 

the offices of the National Zoo that will inhabit the GSB after its renovation.  The 

Regents approved the proposed motion. 

See attached Resolution 2009.04.12 (Minutes of the Board of Regents, Appendix

A).

In response to a question about OFEO’s overview of the Smithsonian’s estimated 

facilities capital and maintenance investment requirements for fiscal years 2008 

through 2017, Mr. Kogod explained that the information presented to the Regents 

was derived from very extensive reports with line‐by‐line items of consideration.  

Based upon his prior positive experiences with OFEO and familiarity with the 

supporting documentation, Mr. Kogod characterized the figures in the overview as 

“educated estimates.” 

REPORT OF THE GENERAL COUNSEL

The report of the General Counsel, copies of which were included in the Regents’ 

agenda books, did not elicit questions from the Board. 

REPORT OF THE ADVANCEMENT COMMITTEE

The Report of the Advancement Committee was given by Committee Chair Alan 

Spoon.  Mr. Spoon reported that the Committee had met twice since the last 

Regents’ meeting and that the four new, non‐Regent members of the Committee — 

Travis Engen, Sako Fisher, David H. Koch, and Adrienne Bevis Mars — had 

participated in the second meeting.  He noted that new members demonstrated a 

deep level of commitment and interest in the Committee’s work and that the 

Committee welcomed their contributions. 
25 

Mr. Spoon said that the Advancement Committee reviewed several issues over the 

course of its recent meetings, including an internal gift‐counting policy for the 

Institution’s national campaign.  It also conducted informal discussions about 

several potential donors for the National Museum of African American History and 

Culture (NMAAHC), reviewed a proposed naming for recommendation to the 

Board, and considered an orientation plan and schedule for new Committee 

members. 

Fund­Raising Update Mr. Spoon then asked Director of External Affairs Virginia Clark to provide an 

update on the progress of the Smithsonian’s fund‐raising efforts.  By the end of the 

first third of fiscal year 2009, the Smithsonian raised $48.2 million, or 40 percent, 

of its $120 million fiscal year 2009 fund‐raising goal.  In addition to the naming 

being presented for the Board’s consideration, Mr. Spoon said that the 

Smithsonian received and recorded a $3 million from the Rockefeller Foundation 

for the NMAAHC; received a letter of commitment regarding a $200,000 gift from 

the Getty Foundation for the Freer and Sackler Galleries to support the digitization 

of their collections; received $100,000 from the Bank of America for the Anacostia 

Community Museum and the NMAAHC; and received a $2.8 million bequest for 

National Museum of American Indian from the estate of Barbara Bingham Moore.  

Ms. Clark reported that the Office of External Affairs has been carefully monitoring 

the payment schedules for the Smithsonian’s large gifts, especially with regard to 

the economy.  Mr. Spoon said that she assured the Committee that only a few 

Smithsonian donors have asked to reschedule their payments and that none of 

those gifts would seriously impact work currently under way. 

Progress on the

Development of a

National Campaign

Mr. Spoon also reported that the Smithsonian’s external campaign consultant, 

Marts & Lundy, had conducted three Smithsonian visits to interview staff.  He 

added that the content of the discussions would inform Marts & Lundy’s internal 

assessment, which in turn will be considered as the Institution develops a 

comprehensive campaign. 

Naming Action Mr. Spoon concluded his report by asking the Board to consider a proposed 

motion that had been approved and forwarded by the Advancement Committee.  

The proposed motion to approve a naming for the Smithsonian Institution 

Libraries was seconded and approved. 

See attached Resolution 2009.04.13 (Minutes of the Board of Regents, Appendix

A).

REPORT OF THE INVESTMENT COMMITTEE

The Report of the Investment Committee was given by Roger Sant on behalf of 

Committee Chair David Silfen.  Mr. Sant reported that the Smithsonian’s 

endowment was $783.7 million at the end of calendar year 2008.  He explained 

that this figure represented a 25.7 percent decline against the endowment’s policy 

benchmark of 29.6 percent, or 400‐some basis points better than benchmark.  

Mr. Sant reminded the Board that the Smithsonian changed its 70/30 

(equity/bond) investment policy about four years ago and established a Regents’ 
26 

committee to provide oversight of the endowment’s management.  The 

Smithsonian’s portfolio now is considerably diversified and, over a five‐year 

trailing average, the endowment has outperformed traditional benchmarks, giving 

a 2.9 percent average return per year, which Mr. Sant attributed in part to the 

efforts of the Investment Committee.  Although first quarter numbers were not yet 

in, Mr. Sant expressed guarded optimism that the market’s performance in first 

quarter 2009 may not turn out to be as bad as the last several quarters. 

With regard to the endowment’s performance attribution, Mr. Sant reported that 

the Committee’s decision to shift to overweight cash from U.S. equities resulted in 

an increase in value of approximately $23.2 million in 2008.  Some of the 

Committee’s other decisions, however, offset those gains, resulting in an overall 

net increase of $12.1 million in 2008. 

In response to the economic downturn, Mr. Sant said that the Finance Committee 

would review the Smithsonian’s payout formula during its May 2009 meeting and 

consider whether the current payout rate of 5 percent is both appropriate and 

prudent given the enormous declines in and overall volatility of the market.  Mr. 

Sant was asked if senior management had determined which initiatives or issues 

would provide the highest and best use of payout funds over the next few years.  

Mr. Sant said that that information had been requested for the next Finance 

Committee meeting.  The Board also discussed the application of the Uniform 

Prudent Management of Institutional Funds Act (UPMIFA) to the management of 

the Smithsonian’s endowment.   

ADJOURNMENT

This meeting of the Board of Regents was adjourned at 3:05 p.m., after which the 

Regents met in executive session.  The executive session was adjourned at 3:15 

p.m. 

Respectfully Submitted, 

G. Wayne Clough 

Secretary 
MINUTES OF THE BOARD OF REGENTS

April 6, 2009

APPENDIX A 

APPROVED RESOLUTIONS

VOTED that the Board of Regents approves the Minutes of the Meeting of January 26, 2009. 

[2009.04.01] 

VOTED that the Smithsonian Board of Regents and, in particular, the Governance and 

Nominating Committee, express their deep appreciation and gratitude to Diana Aviv for her 

service as a founding member of the Committee. [2009.04.02] 

VOTED that the Board of Regents adopts the revised indemnification policies. [2009.04.03] 

VOTED that the Board of Regents appoints Rodney C Adkins, Gordon M. Ambach, Barbara 

McConnell Barrett, William H. Bohnett, Edward K. Gaylord II, Myra M. Hart, Jonathan M. 

Kemper, John W. Rowe, and Phyllis M. Taylor to the Smithsonian National Board for three–

year terms effective October 1, 2009. [2009.04.04] 

VOTED that the Board of Regents appoints Susan Tompkins Pillsbury and reappoints 

Martin J.G. Glynn and Michael E. Feng to the Board of the Freer Gallery of Art and the 

Arthur M. Sackler Gallery for four‐year terms effective September 11, 2009. [2009.04.05] 

VOTED that the Board of Regents appoints Abbe Raven to the Board of Directors of the 

National Museum of American History, Kenneth E. Behring Center, for a three‐year term 

effective May 1, 2009. [2009.04.06] 

VOTED that the Board of Regents appoints Ian C. Gibson‐Smith and Omar Rodriguez to the 

Council of Philatelists of the National Postal Museum for three‐year terms effective 

immediately. [2009.04.07] 

VOTED that the Board of Regents appoints Jerrell W. Shelton and Winfred O’Neil Ward to 

the Smithsonian Institution Libraries Board for three‐year terms effective immediately. 

[2009.04.08] 

VOTED that the Board of Regents appoints W. Clark Bunting, Judy Huret, and Paul Neely to 

the Strategic Planning and Programs Committee as non‐Regent members effective 

immediately. [2009.04.09] 

VOTED that the Board of Regents approves the proposed amendments to the bylaws for 

the Advisory Council of the National Museum of African American History and Culture. 

[2009.04.10] 
2 

VOTED that the Board of Regents authorizes the Secretary to submit to Congress a Federal 

budget request for appropriated funds for fiscal year 2010 as part of the President’s budget 

in the amount negotiated with OMB and authorizes the Secretary to inform OMB and 

Congress fully about the implications of the President’s budget for the mission and 

priorities of the Institution. [2009.04.11] 

VOTED that the Board of Regents authorizes the Secretary to submit a request for 

Congressional authorization to plan, design, and construct a new vehicle maintenance 

facility at the Smithsonian’s Suitland Collections Center in Suitland, Maryland. [2009.04.12] 

VOTED that the Board of Regents recognizes the generosity of Margaret H.P. Nuttle to the 

Smithsonian Institution Libraries and approves naming The Margaret Henry Dabney 

Penick Fund and each residency made possible by her gift a Margaret Henry Dabney Penick 

Resident Scholar. [2009.04.13]