334 OCEANOGRAPHY V9 61 — PHASE 3 



Dr. Robertson. Yes. 



Mr. Bauer. Now, in 1961 in the hearings before the subcommittee 

 on appropriations of the House you implied that "If you give us a 

 ship, you must also give shore facilities to take care of the operation 

 of the operation of the ship." Is that putting it succinctly ? 



Dr. Robertson. Yes. 



Mr. Bauer. Then, Mr. Thomas, the chairman of the other com- 

 mittee of the House raised the question : "Now that you have given 

 them the ship, you must give them the shore facilities. Therefore, 

 you must, of course, give them a substantial sum of money to keep 

 the ship in operation." It that correct? 



In other words, in your future plans, now that you have the ship 

 and the shore facilities, are you going to fund the operation of the 

 ship ? 



Dr. Robertson. Our understanding at Woods Hole is that they will 

 fund the operation of the ship in their normal way, that is, through 

 the inclusion in research grants and contracts which they have with 

 Government agencies of ship operating costs. 



Mr. Bauer. In other words, the Office of Naval Research? 



Dr. Robertson. We feel that in the long run it is likely that sup- 

 port for Woods Hole will be equally shared between the Office of Naval 

 Research and the National Science Foundation, and that, looking into 

 the future and projecting our budget which we hope will continue to 

 increase, probably about half of the operating cost of this ship will 

 come from the National Science Foundation. This is an estimate. 



Mr. Bauer. That presents somewhat of an accounting problem for 

 Woods Hole, does it not, because the Office of Naval Research spells 

 out in their contract with Woods Hole what they shall do and main- 

 tains financial management of their operations, whereas you give 

 them the money and maintain no financial management of the 

 operation. 



Dr. Robertson. We require them to keep a record of their expendi- 

 tures and file financial statements, and they are subject to inspection. 



Mr. Bauer. Is that statement audited by GAO ? 



Dr. Robertson. I believe it is. 



Mr. Bauer. I do not mean to belabor the point, but GAO advises 

 us that they have no audit authority for grants. 



Dr. Robertson. We have an internal audit group which audits the 

 expenditures under our grants, and we require that adequate records 

 be kept so that we will know at all times where the money has gone. 



Mr. Bauer. There will be no hardship then if the General Account- 

 ing Office had their authority enlarged as far as the National Science 

 Foundation is concerned, to explore all grants given by you ? It would 

 be no hardship to you because you have the internal audit facilities, 

 you say ? 



Dr. Robertson. That is right. 



Mr. Bauer. Do you care to comment, Dr. Bolt ? 



Mr. Ruttenberg. I think our position would be on this, that we 

 would not object. We have our own audit program, too, which is 

 just getting underway. It is in the early stages so that not too many 

 institutions have been audited. I am sure, however, that at least 6 or 8 

 have been audited by our own auditors to date where they go in and 

 check the financial records of the institutions as far as Foundation 



