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9

Estimated Results FY 1972 and Tentative Budget FY 1973

  Mr. Webb reported that the Executive Committee (Permanent Committee) had reviewed the private funds budget showing projected figures for fiscal year 1972 and the tentative budget for fiscal year 1973. These figures are compared with actual income and expenditures for fiscal years 1969, 1970, and 1971. (See attached statement on page 12.)
  Mr. Wheeler explained that of major importance in the fiscal year 1972 private funds is the projected net gain of approximately $140,000 compared with losses in these unrestricted funds in previous years. Improved recovery of $2,540,000 of administrative costs (overhead) from grants and contracts and from revenue-producing activities, gifts, and restricted funds, as compared with the level of actual administrative costs is a significant factor in this improved picture. The Smithsonian receives a great many grants and contracts against which we must charge an administrative fee in order to recover as much as possible of the costs of administering such grants. The fee is based on prorating actual costs of administration against the costs of these contracts and grants as well as against all other direct cost outlays of private funds including those of the revenue-producing activities within the Smithsonian such as the Museum Shops, Magazine, etc.  Mr. Wheeler stated that unfortunately it is not possible to make full recovery of these overhead costs in this way.