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would result. Also, it was noted that the expenses of the Associates' reception center were now charged against this account.

In answer to Judge Higginbotham's question relating to the inventory discrepancy of last year, Mr. Wheeler stated that a recent inventory of the shops was more favorable than the earlier inventory and indicated that there are better controls and improved practices at the warehouse.

A complete review of the financial results for this period is contained in the Secretary's Statement being distributed at this meeting.

Projected unrestricted Trust Fund results for FY 1977, also shown in Exhibit B, have been modified only slightly from the budget approved by the Board of Regents at the last meeting.  As outlined at that time, increases are being projected for the year in concessions income (due to new facilities), Museum Shops, and [[underline]]Smithsonian[[/underline]] Magazine (1.5 million subscribers expected this year).  While a substantial amount of these revenues will be needed to meet increased administrative costs and operating allotments, it should be possible to transfer some $557,000 to the bureaus for interest and revenue-sharing; $114,000 will be required for Plant Fund expenses (Chesapeake Bay scheduled debt retirement and $50,000 for Carnegie Mansion renovation), and the remaining surplus could then be transferred to Endowment Funds.