UA-R-GC-1914-01-01-1978-03-02_Page-015

I THE AMERICAN UNIVERSITY IN CAIRO Minutes of the Meeting of the LE Investment Committee March 2, 1978 in Cairo Committee members present: Messrs. Battle, Hedlund, McCloy (Chairman), Simpson (Acting Chairman, Board), Wadsworth. Also attending: Trustees Aldrich, Bacon, Bell, Crary, Winder; President Pedersen, Mr. Dater, Mr. Snaith, Mr. O'Connor, Mr. Tait; Messrs. Evans and Lorentziadis of Arthur Andersen. 1. Auditors' Report - The Arthur Andersen representatives said they felt they had to include in their report a statement that the Fund has been unable to obtain from the companies in which it has investments audited reports prepared according to "generally accepted accounting principles". There were objections to this on the grounds that it appears pejorative. The companies were audited according to local standards and the Fund has copies. "Generally accepted accounting principles", in fact, apply in only two or three countries in the world. Arthur Andersen agreed to reword this comment to the effect that the Fund had obtained reports prepared according to local standards . Mr. Hedlund stated his impression that the accounts of the Fund are in good shape, especially in comparison to former periods. Arthur Andersen agreed with this and Andrew Snaith was praised for his efforts in this regard. it was agreed that the auditors' report on the Fund need not be distri­buted to the Faculty. It was pOinted out that the Faculty is only interested ... /