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-8- Projections for years FY 1982-FY 1986 were derived from basic materials prepared by the organizations and bureaus of the Institution and then reviewed by the appropriate members of the Secretary's Executive Committee. These projections also were sent to the Office of Management and Budget. Beyond FY 1982, the trends represent management's best estimates of federal and trust resources that will be needed to meet program and operating aspirations of the Institution. For FY 1983, the federal projections can be considered to be target levels of appropriations which the Smithsonian will be seeking in the next budget cycle, and which will be discussed in the fall of 1980 with institutional budget examiners at the Office of Management and Budget. Trust fund projections, as mentioned earlier, are particularly vulnerable to fluxuations in the nation's economic climate. They are presented to help explain the expected institutional use of these funds if visitations grow moderately in spite of potential alteration of travel patterns due to the supply and price of energy products, and if consumer interest in institutional products remains relatively stable over the planning period. Trust funds are composed of restricted and unrestricted funds. Unrestricted trust funds (general and special purpose) originate from a variety of sources including income from endowments and current fund investments, parking and food service concessions, sales of Smithsonian products based on designs and objects in the collections, the Resident and National Associate Programs (including [[underline]]Smithsonian[[/underline]] Magazine), and the museum shops. In addition, certain bureaus have their own income-producing activities, such as the Theater and Spacearium operations of the Air and Space Museum. Restricted trust funds include gifts, grants, endowment and other income designated for specific projects and purposes by the donor. The Freer fund is the largest example in this category, being strictly controlled under the terms of the original bequest for the sole use of the Gallery. There are three major purposes to which unrestricted trust funds are applied. First, the expenses of the Associate Programs and revenue-producing activities, such as the [[underline]]Smithsonian[[/underline]] Magazine and the museum shops, are funded from the earned income of these activities. Secondly, central management and administrative service units of the Institution, such as legal counsel, accounting, personnel, supply and others,receive trust fund allotments funded almost entirely from the overhead recovery on grants and contracts administered by the Smithsonian and from administrative fees charged to trust-funded activities. General operating funds are also provided to various units for research and other specific purposes. Third, a variety of allocations for important institutional and bureau needs have been made with the approval of the Board of Regents, such as the Collection Acquisition, Scholarly Studies, and Education Program; the Institution's Fellowship programs; the trust fund share of the rental costs incurred by administrative units and revenue-producing activities; and the reserves for the Quadrangle development. After the three major categories of operating expense financed with unrestricted trust funds are met, the remaining unrestricted income is designated for three purposes. Funds are transferred to the museums and galleries in recognition of their assistance in the planning and carrying out of museum shop, product development and concession programs. These funds, amounting to
