324 



Annals of the Smithsonian Institution 1 999 



Independent Auditors' Report 



BOARD OF REGENTS 

 SMITHSONIAN INSTITUTION: 



We have audited the accompanying statement of financial 

 position of the Smithsonian Institution (Smithsonian) as of 

 September 30, 1999, and the related statements of financial 

 activity and cash flows for the year then ended. These 

 financial statements are the responsibility of the Smith- 

 sonian's management. Our responsibility is to express an 

 opinion on these financial statements based on our audit. 



We conducted our audit in accordance with generally 

 accepted auditing standards. Those standards require that 

 we plan and perform the audit to obtain reasonable assur- 

 ance about whether the financial statements are free of 



material misstatement. An audit includes examining, on a 

 test basis, evidence supporting the amounts and disclosures 

 in the financial statements. An audit also includes assessing 

 the accounting principles used and significant estimates 

 made by management, as well as evaluating the overall 

 financial statement presentation. We believe that our audit 

 provides a reasonable basis for our opinion. 



In our opinion, the financial statements referred to above 

 present fairly, in all material respects, the financial position 

 of the Smithsonian Institution as of September 30, 1999, 

 and its changes in net assets and its cash flows for the year 

 then ended, in conformity with generally accepted account- 

 ing principles. 



Washington, D.C. 

 January 14, 2000 



KPMG LLP 



SMITHSONIAN INSTITUTION 

 Statement of Financial Position 



September 30, 1999 

 ($000) 



Trust 



Federal 





Total Funds 







Funds 



Funds 



1999 



1998 



3,539 



206,813 



210,352 



205,829 



134,542 



20,139 



154,681 



84,281 



21,984 



— 



21,984 



19,963 



14,548 



847 



15,395 



21,175 



738,521 



— 



738,521 



646,455 



131,266 



468,978 



600,244 



559,842 



Assets: 

 Cash and balances with the U.S. Treasury 

 Receivables and advances (note 3) 

 Prepaid and deferred expenses, and other (notes 2 and 5) 

 Inventory 



Investments (note 6) 

 Property and equipment, net (note 9) 



Total assets 



1,044,400 



696,777 



1,741,177 



1,537,545 



Liabilities: 

 Accounts payable and accrued expenses (note 10) 

 Net payable for investment securities purchased 

 Deferred revenue 

 Long-term debt (note 11) 

 Deposits held for affiliates (note 12) 

 Unexpended federal appropriations (note 4) 



43,777 

 26,121 

 49,691 

 41,535 

 3,133 



50,778 



191,675 



94,555 



89,606 



26,121 



24,963 



49,691 



49,260 



41,535 



41,526 



3,133 



4,864 



191,675 



182,623 



Total liabilities 



164,257 



242,453 



406,710 



392,842 



Net assets: 

 Unrestricted: 

 Funds functioning as endowments (note 7) 

 Operational balances (notes 4 and 5) 



See accompanying notes to the financial statements. 



459,521 

 61,473 



454,324 



459,521 

 515,797 



387,608 

 489,944 



Total unrestricted net assets 



520,994 



454,324 



975,318 



877,552 



Temporarily restricted: 



Funds functioning as endowments (note 7) 

 Donor contributions for ongoing programs 



140,360 

 153,323 



— 



140,360 

 153,323 



138,686 

 63,538 



Total temporarily restricted net assets 



293,683 



— 



293,683 



202,224 



Permanently restricted: 

 True endowment (note 7) 

 Interest in perpetual and other trusts 



63,248 

 2,218 



— 



63,248 

 2,218 



62,972 

 1,955 



Total permanently restricted net assets 



65,466 



— 



65,466 



64,927 



Total net assets 



880,143 



454,324 



1,334,467 



1,144,703 



Total liabilities and net assets 



1,044,400 



696,777 



1,741,177 



1,537,545 



