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Jazz" album produced by our Division of Performing Arts has turned previous losses of that Division into a sizeable gain. In total, these revenue-producing activities, therefore, should contribute a surplus of about $1,660,000 compared to only $204,000 in the previous year.

As shown on the first line of Exhibit B, investment income has also jumped nearly $200,000 this year. This comes entirely from an increasing and now substantial amount of investable current funds shown on the Balance Sheet (Balance D). Growth of these funds is illustrated in the chart, Exhibit E. Not including the value of securities in the Special Endowment Fund, current cash and short-term investments total over $8,400,000 as of March 31st, of which approximately $7 million was invested in short-term Government securities, bank certificates of deposit and high-grade commercial paper with maturities of one year or less. As shown in the chart, this increase in investable funds arises from mounting advance Magazine subscription monies, and improved balances of both unrestricted and restricted funds. Currently, the yield on these funds is 8.5% and the average maturity is 116 days.

Administrative expenses have also increased significantly and unavoidably in the current year, but are expected to be fully recovered through overhead and administrative fees assessed against grants and contracts, revenue-producing activities and other types of Institutional expenditure. At the same time there has also been a large increase in special purpose allotments to $780,000 for a great variety of operating