316 



Annals of the Smithsonian Institution 1 999 



and i percent in cash. The portfolio had 2 3 percent in for- 

 eign stocks and bonds and 77 percent in U.S. securities. 



Construction Funds 



In fiscal vear 1999, federal appropriations for construction 

 were $60.4 million. This amount included $40.0 million for 

 general repair, restorarion, and code compliance projects 

 throughout the Institution. Funds earmarked for new con- 

 struction, alterarions, and modificaricns totaled $20.4 

 million. Included in this amount is $16. c million tor the 

 Mall museum of the National Museum of the American 

 Indian and $4.4 million for renovations, repairs, and master 

 plan projects at the National Zoological Park. 



Nonappropriated trust construction funds totals $5.9 

 million. Approximately $4.4 million supported construction 

 of facilities for the National Museum of the American Indian; 

 $1.0 million contributed to the reinstallation of the Janet 

 Annenberg Hooker Hall of Geologv. Gems, and Minerals at 

 the National Museum of Natural History: $0.3 million sup- 

 ported renovation of the Cooper-Hewitt. National Design 

 Museum: and $0.2 million went to several smaller projects. 



Financial Position 



The Smithsonian Institution's State.'. mancial Position 



presents the total assets, liabilities, and net assets of the Insti- 

 tution Total assets of $1.7 billion f: total liabilities 

 of $406 million and continue to be indi. ( 'he 'mancial 

 strength of the Institution. During fiscal 999. the most 

 significant increases in rhe Institution's finan a! position in- 

 cluded growth in investments of approximate!-- $92 million, 

 an increase in net property and equipment of ^40 million, 

 and the $60 million pledge from Steven F. Udvar-Hazy. 



Financial Management 



During rhe year, the Institution devotee nt re- 



■ ro deal with the Year 2 ; ^rcblem. A final 



review by the Regents' Audit and Review Committee found 

 the steps taken to be satisfactory, and all major systems were 

 functioning effectively at the beginning of 2000. 



Other financial management impro\ement initi 

 undertaken in fiscal year 1999 included: 



• An internal study that recommended implementation of 

 an Enterprise Resource Planning (ERP) System. Funding 

 ha - yet to be identified for the project, but it is ] 



chat implementation of the first module — the financial 

 system — can begin in fiscal year 2001. 



• A study to document accounting and systems architecture 

 as the basis for implementing a new financial system and 

 a draft of the functional requiremenrs for a new general 

 ledger. 



• A project in the Office of the Comptroller to implement 

 software that would facilitate accurate preparation and 

 electronic processing of travel authorizarion and voucher 

 forms. The software will be resred with selected units 

 early in fiscal year 2000 and then rolled our ro all units. 



• Improved collection of amounts due under grants and 

 conrracrs by the Office of Sponsored Projects as a result of 

 automarion and systems enhancement. 



• Electronic Funds Transfer (EFT) for employee travel reim- 

 bursemenrs. 



Additional financial management improvement initiatives 

 planned to start in fiscal year 2000 include rhe following: 



• Updating and streamlining financial policies and proce- 

 dures. The project includes putcing policies online in a 

 searchable format. 



• Implementation of a credir card system for small purchases. 



• Development of a comptroller's manual to document ac- 

 counting procedures. 



Audit Activities 



The Institution's financial statements are audited annually 

 by KPMG LLP, an independent public accounting firm. The 

 audir plan includes an in-depth review of rhe Institution's 

 internal control structure. The KPMG LLP Independent 

 Auditors' Report for fiscal year 1999 and the accompanying 

 financial statements are presented on the following pages. 

 The Smithsonian's internal audit staff, part of the Office of 

 Inspector General, assists the external auditots and regularly 

 audirs the Institution's various programs, activities, and in- 

 ternal control systems. The Audit and Review Committee of 

 the Board of Regents provides an additional level of financial 

 oversight and review. 



In accordance wirh rhe government requirement for the 

 use of coordinared audit teams, the Defense Contract Audit 

 Agency, the Smithsonian Office of Inspecror General, and 

 KPMG LLP coordinate the audit of grants and contracts re- 

 ceived from federal agencies. 



Smithsonian Institution at a Glance 



• 16 museums and galleries 



• 400 buildings in 5 states, Washington, D.C., and Panama 



• 19,000 acres 



• 6.6 million square feet of owned space 



• 31.4 million visits in 1999 (including an estimated 

 3 million at the National Zoo) 



• 141 million objects, works of art, and specimens 



• 40 million hits per month at the Smithsonian Web site 

 (www.si.edu) 



• 2.1 million members of the Smithsonian Associates 



