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[[underlined]] Financial Report [[/underlined]]

[[underlined]] FY 1982: [[/underlined]] Net operating funds totaled $164,770,000, some $600,000 less than projected at the September Regents meeting. Increased gains by the [[underlined]] Smithsonian [[/underlined]] Magazine were more than offset by the large deficit generated by the Division of Performing Arts. A detailed analysis of Fiscal Year 1982 financial results is contained in advance copies of the FY 1982 Financial Report made available to the Regents.

[[underlined]] FY 1983: [[/underlined]] Federal appropriations in FY 1983 total $192,866,000 including $36.5 million for Quadrangle construction and $1.9 million in add-ons initiated by the Congress. As required in the appropriation language, the Regents have certified to the availability of Trust Funds for the matching portion of Quadrangle funding. A supplemental request of $2,390,000, 50% of the cost of FY 1983 pay raises, has been approved by OMB for submission to Congress. Trust results for the auxiliary activities for the first three months of FY 1983 have been favorable, particularly with regard to the [[underlined]] Smithsonian [[/underlined]] Magazine and the mail order catalogue.

[[underlined]] FY 1984: [[/underlined]] OMB has approved an allowance of $154,354,000 for the Salaries and Expenses appropriation in FY 1984, an increase of $7.6 million and 108 workyears. These additional resources will provide essential support for inflationary cost increases, Museum Support Center operations, information management, security, and other operations. An amount of $12.5 million was approved for renovation and improvement of the Institution's facilities, while the full request of $9,040,000 was allowed for the Special Foreign Currency Program.

[[underlined]] Report of Gifts to the Smithsonian [[/underlined]]

Mr. Hohenlohe reported that the level of contributions to the Institution over the past four years, exclusive of gifts for the Quadrangle, has more than doubled from $2.5 million to $5.6 million. The most dramatic increase has been in unrestricted gifts which increased from a level of $682,000 in FY 1979 to over $2 million in FY 1982. This large increase is attributable to the National Associates Contributing Membership Program which has grown over the period from 4,400 donors to over 18,000. Steady but more moderate growth has occurred in restricted gifts from corporations, individuals and foundations, which have grown over the period from $1.9 million in FY 1979 to $3.5 million in FY 1982.

[[underlined]] Report of the Investment Policy Committee [[/underlined]]

The Investment Policy Committee met on November 23, 1982, to review investment performance and strategy with the Institution's three investment managers. As of December 31, 1982, the market value of the endowment funds exceeded $100 million, and annualized return for the past four and one-half years has been some 17 percent per years, well ahead of the market averages.