BEPORT OF THE SECRETABY 37 



Trust and three of the officers of the National Gallery of Art designated as 

 "Custodians." The Fund was established for the purpose of making avail- 

 able to the public, at reasonable cost, catalogues and other publications con- 

 cerning the works of art. The Trust advanced to the Custodians the sum of 

 $40,000, and the indenture provides for repayment after July 1, 1941, out of 

 profits, if any, from sale of publications and for transfer of any remaining 

 assets of the Fund to the National Gallery of Art after the advance has been 

 entirely paid. We obtained a confirmation from the National Metropolitan 

 Bank of the amount of $40,000 on deposit at June 30, 1940. 



Our examination disclosed no other transactions to June 30, 1940, which 

 should be recorded in the books of account. We did not inspect the works 

 of art but we examined the deeds of trust which provide that the donors 

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

 insurance until the delivery of the works of art after completion of the Gallery 

 building. 



In our opinion, subject to the fact that the value of the works of art ac- 

 quired June 29, 1939, has not been determined and recorded, the books of 

 account fairly reflect the transactions pertaining to the private funds of the 

 Naticmal Gallery of Art and of the Publications Fimd, National Gallery of 

 Art, at June 30, 1940, in conformity with generally accepted accounting prin- 

 ciples applied on a basis consistent with that of the preceding year. 



Respectfully submitted. 



F. L. Belin, Vice President. 

 Db. C. G. Abbot, 



Secretary, Smithsonian Institution. 



