SECRETARY’S REPORT 149 
accordingly included such tests of the accounting records and such other auditing 
procedures as we considered necessary in the circumstances. 
The Institution maintains its accounts on a cash basis and does not accrue 
income and expenses. Land, buildings, furniture, equipment, works of art, 
living and other specimens and certain sundry property are not included in the 
accounts of the Institution. 
In our opinion, the accompanying financial statements present fairly the 
position of the private funds and the cash and investments thereof of the Smith- 
sonian Institution at June 30, 1949 (excluding the National Gallery of Art and 
other departments, bureaus or operations administered by the Institution under 
Federal appropriations) and the cash receipts and disbursements for the year 
then ended, in conformity with generally accepted accounting principles applied 
on a basis consistent with that of the preceding year. 
Prat, Marwick, MircHe.y & Co. 
Respectfully submitted. 
Rozert V. FLEMING, 
VANNEVAR Bus, 
CLARENCE CANNON, 
Executive Commiitee. 
