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[[underlined]] Special Purpose [[/underlined]] trust fund expenditures will be higher for FY 1980 than both budget and prior projections, due primarily to expenditure of fund balances designated for the Collections Acquisition program and, of course, purchase of the Stuart portraits.  This increased level of expenditure was offset in part by increased interest payments to Special Purpose fund balances and increased net revenues from bureau activities.  The net result for the year will be a decrease in fund balances by almost $2.4 million to a level of $9,205,000; this includes the tax liability reserve ($3.1 million), Zoo parking reserve ($900,000), NASM film replacement and discretionary funds ($2.3 million), unexpended Collections Acquisition, Scholarly Studies and Educational Outreach funds ($650,000), and discretionary funds of all other bureaus.

[[underlined]] Restricted Trust [[/underlined]] funds for FY 1980 are projected at about the same level of activity as reported in May, with four exceptions:

-Interest payments to restricted fund balances are higher than earlier projections ($550,00 compared to $400,000). 

-Expenses of the Freer sales desk will be almost $200,000 lower than budget, to reflect the recording of their physical inventory of merchandise in accordance with proper accrual accounting.

-As set forth in the litigation report last May, an accounting took place in May and June to determine the relative values of the Seward Johnson gift and the Hunterdon Medical Center gift, which had been commingled by the Institution into [[underlined]] Endowment Fund #3 [[/underlined]].  The accounting was also for the purpose of determining the income attributable to the Johnson gift from January 1, 1977, through February 29, 1980, to enable Smithsonian to reimburse the Harbor Branch Foundation for operation of the submersible program during