REPORT OF THE SECRETARY 33 



24, 1937, recording its acquisition of the collection of works of art, 

 there being no other transactions to June 30, 1938, which should be 

 recorded in the books of account. The gift of June 24, 1937, was 

 recorded on the books of account at $31,303,162.31, representing, ac- 

 cording to available information, the cost to the last person to ac- 

 quire the works of art by purchase. Of this amount $19,893,162.31 

 represented purchases of works of art by the late Hon. Andrew W. 

 Mellon, and $11,410,000 represented purchases by The A. W. Mellon 

 Educational and Charitable Trust. A list of the works of art which 

 were the subject of the gift of June 24, 1937, is attached to this report. 

 The certificate of Price, Waterhouse & Co. states that the receipt of 

 title to this gift was recorded properly in the Gallery's books by the 

 opening journal entry. 



The certificate of Price, Waterhouse & Co. follows : 



August 26, 1938. 

 Mr. Donald D. Shepard, 



Treasurer, National Gallery of Art, 



116 Jackson Place NW., Washington, D. G. 



Dear Sir: Pursuant to your instructions, we have made an examination of 

 the accounting records of the National Gallery of Art and other documentary 

 evidence, and have obtained information and explanations from its officers. 

 The only entry in its books of account as at June 30, 1938, was the opening 

 journal entry dated June 24, 1937, recording its acquisition of works of art; 

 our examination disclosed no other transactions to June 30, 1938, which should 

 be recorded in the books of account. 



Pursuant to joint resolution of Congress, approved March 24, 1937, and trust 

 indenture dated June 24, 1937, The A. W. Mellon Educational and Charitable 

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

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

 National Gallery of Art is deferred until completion of construction. 



By the aforementioned trust indenture title was acquired to the works of art 

 given by The A. W. Mellon Educational and Charitable Trust. Pending con- 

 struction of the Gallery, these works of art remain in the custody of the donor 

 to be cared for at its expense. This gift was recorded in the books of account 

 at $31,303,162.31, representing, according to available information, the cost to 

 the last person to acquire the works of art by purchase. Of this amount, 

 $19,893,162.31 represented purchases by Mr. A. W. Mellon and $11,410,000.00 

 represented purchases by The A. W. Mellon Educational and Charitable Trust. 

 The receipt of title to this gift was recorded properly in the Gallery's books 

 by the opening journal entry previously referred to. 



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. 



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

 present, in accordance with accepted principles of accounting, the position of 

 the National Gallery of Art at June 30, 1938. 

 Yours very truly, 



(Signed) Price, Waterhouse & Co. 



