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[[underlined]] PRIVATE UNRESTRICTED FUNDS [[/underlined]]

[[underlined]] Results for FY 1974 [[/underlined]]

As shown in the accompanying Exhibit B, the Unrestricted Private Funds show a net gain for FY 1974 of $1,792,000 before transfers, as compared to the $543,000 in FY 1973. The 1974 gain was after making provision for $198,000 of accumulated annual leave as now required by new accounting guidelines, and also after funding the accumulated $182,000 operating deficit of the Cooper-Hewitt Museum. With the approval of the Regents' Executive Committee, $1,017,100 of the FY 1974 gain was transferred to our Plant Funds: $365,000 for redesign and reconstruction of the Museum Shop in NMHT, $150,000 for the unfunded portion of the new Chesapeake Bay Center's Visitor and Conference Building, and $500,000 toward the proposed new restaurant facilities, training and orientation quarters and Associates' Reception Center in the west court of NMNH.

The major contributor to the FY 1974 gain was the [[underlined]] Smithsonian Magazine [[/underlined]], which showed a net income of $1,327,000, as compared to $330,000 in the previous year. Magazine sales and revenues increased to $7,127,000 from $4,731,000 in FY 1973, and added substantially to cash available for short-term investment. As discussed at the last Regents' meeting, and as detailed in Exhibit C, other revenue producing activities, particularity the Associates Program, the Museum Shops and the Division of Performing Arts together, boosted income by another nearly $450,000. 

As shown on the Balance Sheet,(Exhibit D) current cash and investments totaled $9,089,000 on June 30,1974, compared to $6,930,000 a year earlier. At FY 1974 year-end, $6,600,000 was invested in very high-grade short-term securities with an average maturity of about 3-1/2 months and an average yield of about 8.8% (currently about 9-1/2%).