REPORT OF THE SECRETARY 37 



that the construction of the building will be far enough advanced by 

 August 1, 1940, so as to permit the installation of the collections 

 preparatory to the public opening. 



As of June 30, 1939, $5,350,920.07 had been expended by The A. W. 

 Mellon Educational and Charitable Trust upon the construction of 

 the building, which, it is estimated, will cost in excess of $15,000,000. 

 The recording of such expenditures in the books of account of the 

 National Gallery of Art will be deferred until the completion of the 

 construction of the Gallery. 



No appropriations made by Congress for the National Gallery of 

 Art were expended during the fiscal year ended June 30, 1939, and 

 no public or private funds were received or disposed of during the 

 year. Pursuant to instructions, Price, Waterhouse & Co., a nationally 

 known firm of public accountants, has made an examination of the 

 accounting records of the National Gallery of Art, and a copy of the 

 certificate of that firm dated September 8, 1939, follows : 



Pursuant to your instructions, we have made an examination of the account- 

 ing records of the National Gallery of Art and other documentary evidence, 

 and have obtained information and explanations from its officers. 



The books of account reflect the acquisition as of June 24, 1937, of the works 

 of art donated by The A. W. Mellon Educational and Charitable Trust, valued 

 for accounting purposes at $31,303,162.31. Pursuant to joint resolution of Con- 

 gress and the trust indenture, The A. W. Mellon Educational and Charitable 

 Trust, at its expense, is proceeding with construction of the National Gallery 

 of Art. The recording of the construction expenditures in the books of account 

 of the National Gallery of Art is being deferred until completion of construc- 

 tion. An endowment fund of $5,000,000 is expected to be received from The A. 

 W. Mellon Educational and Charitable Trust at about the time of completion 

 of the Gallery. 



By an indenture effective June 29, 1939, Mr. Samuel H. Kress and the Samuel 

 H. Kress Foundation donated certain works of art to the National Gallery of 

 Art subject to completion of construction of the Gallery building on or before 

 June 29, 1941. The value for accounting purposes of the works of art so 

 acquired has not yet been determined and no entries in respect of this gift have 

 yet been recorded in the books of account. 



Our examination disclosed no other transactions to June 30, 1939, which 

 should be recorded in the books of account. 



Our examination did not include inspection of the works of art to which the 

 National Gallery of Art had title at June 30, 1939. We have, however, ex- 

 amined tlie deeds of trust by the donors which provide that the donors shall be 

 responsible for the custody and shall bear the cost of storage and insurance 

 until delivery of the works of art is made after completion of the Gallery 

 building. 



In our opinion, based upon our examination, the books of account, subject 

 to the fact that no entry has been made in respect of the works of art acquired 

 June 29, 1939, fairly present, in accordance with accepted principles of account- 

 ing consistently maintained by the Gallery during the year under review, the 

 position of the National Gallery of Art at June 30, 1939. 



