Viewing page 16 of 80

This transcription has been completed. Contact us with corrections.

SMITHSONIAN INSTITUTION
[[underline]] PRIVATE FUNDS [[/underline]]

Notes to Financial Statements

June [[underline]] 30, [[/underline]] 1968

[[underline]] (1) Basis of Accounting [[/underline]]

Prior to July 1, 1967, the accounts of the Institution were maintained on the basis of cash receipts and disbursements except that the amounts due as reimbursements from grants and contracts were accrued and certain real estate was carried at no cost or appraised value as explained below.  During the year ended June 30, 1968, the accounts for that portion of unrestricted funds relating to activities were converted to accrual basis of accounting resulting in an increase in the balance of this fund of $219,768.  Since no physical inventories were taken at June 30, 1967, the amount thereof was estimated.

Except for certain real estate acquired by gift or purchased from proceeds of gifts which are valued at cost or appraised value at date of gift, land, buildings, furniture, equipment, works of art, living and other specimens, and certain other similar property are not included in the accounts of the Institution; the amounts of investments in such properties are not readily determinable.  Current expenditures for such properties are included among expenses.  The accompanying statements do not include the National Gallery of Art, the John F. Kennedy Center for the Performing Arts, nor other departments, bureaus and operations administered by the Institution under Federal appropriations.

[[underline]] (2) Commitment and Subsequent Event [[/underline]]

Pursuant to an agreement, date October 9, 1967, between the Institution and the Cooper Union for the Advancement of Science and Art, the Institution acquired, on July 1, 1968, all funds belonging to the Cooper Union for use exclusively for museum purposes and certain articles of tangible personal property as defined in the agreement.

The agreement provides, among other covenants, that the Institution will maintain a museum in New York City, and has pledges in excess of $800,000 for the support of such a museum.

15