332 



Annals of the Smithsonian Institution 1 999 



(8) Composition of Total Return from Investments 



Total return from investments consisted of the following 

 for the year ended September 30, 1999: 



Composition of Endowment Return: 



Endowment payout 21,022 



Investment income in excess of payout 107 



Total investment income 21,129 



Less — investment fees (1,479) 



Net investment income 19,650 



Net realized and unrealized gain on investments 101,800 



Endowment total return 121,450 



Endowment total return is reported as 521,022 in operat- 

 ing revenue representing the annual payout, and the 

 excess of $100,428 as non-operating endowment income 

 in the statement of financial activity. 



Composition of Short-Term Investment Total Return: 



Interest and dividends 2,419 



Net gain on investments 532 



Short-term investment total return . 2,951 



(9) Property and Equipment 



Property and equipment consisted of the following at Sep- 

 tember 30, 1999: 



Trust 



Federal 



Total 



Land 



Buildings and capital 



improvements 

 Equipment 

 Leasehold improvements 



Accumulated depreciation 

 Total property and equipment 



2,500 



2,500 



173,416 880,153 1,053,569 



30,398 54,263 84,661 



2,623 2,623 



208,937 934,416 1,143,353 

 (77,671) (465,438) 1543,10") 



131,266 468,978 600,244 



At September 30, 1999, buildings and capital improve- 

 ments included $15,197 and $155,016 of construction in 

 progress within Trust and Federal funds, respectively. 

 Depreciation expense for fiscal year 1999 totaled $8,190 in 

 the trust funds and $39,829 in the federal funds. 



(10) Accounts Payable and Accrued Expenses 



Accounts payable and accrued expenses consisted of the 

 following at September 30, 1999: 



Trust Federal Total 



Accounts payable 



Accrued salaries and benefits 



Other accrued liabilities 



Total accounts payable and 

 accrued expenses 



16,941 16,408 33,349 



23,836 28,913 52,749 



3,000 5,457 S.457 



43,""" 



50,778 



94,555 



(11) Long-term Debt 



In January 1998, the District of Columbia issued $41,300 of 

 tax-exempt revenue bonds on behalf of the Smithsonian. 

 The Smithsonian is obligated under these bonds as follows: 



Series 1997 Revenue Bonds, Serial, with interest 



rates ranging from 4.10% to 4.75%, maturing at 



various dates from February 1, 2002 through 2012: 10,950 



Series 1997 Revenue Bonds Term: 



Interest rate 5.00% due February 1, 2017 7,105 



Interest rate 4.75% due February 1, 2018 1,640 



Interest rate 5.00% due February 1, 2028 21,625 



Total bonds at face value 41,320 



Less — unamortized bond discount (785) 



Total bonds payable 40,535 



Interest free note, Virginia Department of Aviation 1,000 



Total long-term debt 41,535 



The serial and term bonds represent an unsecured general 

 obligation of the Smithsonian. Proceeds from the sale of 

 the bonds will finance certain renovations of and improve- 

 ments to the National Museum of Natural History, fund 

 capitalized interest, and pay certain costs of issuing the 

 bonds. Interest on the bonds is payable semi-annually on 

 August 1 and February 1, beginning on August 1, 1998. 

 Principal and interest payments will be funded solely 

 through unrestricted Trust funds. 



The term bonds maturing on February 1, 2017 and 2028 

 are subject to mandatory redemption by operations of 

 sinking fund installments. Installment payments for the 

 term bond maturing February 1, 2017, begin on Febru- 

 ary 1, 2013 and range from 51,285 to 51,565 per year 

 through the maturity date. Installment payments for the 

 term bond maturing February 1, 2028 begin on February 1, 

 2019 and range from $1,720 to $2,665 per year through 

 the maturity date. 



Interest expense on bonds payable for fiscal year 1999 

 totaled $1,334 net of capitalized interest of approximately 

 $666. 



At September 30, 1999, the Smithsonian also had an 

 interest-free loan from the Virginia Department of Aviation 

 totaling $1,000. The Virginia Department of Aviation 

 agreed, in fiscal year 1995, to make available to the Smith- 

 sonian an interest-free loan facility totaling $3,000, of 

 which $500 was drawn in fiscal years 1996 and 1997. This 

 loan facility is intended to assist in the financing of the 

 planning, marketing, fund-raising, and design of the pro- 

 posed National Air and Space Museum extension at Wash- 

 ington Dulles International Airport. The Smithsonian is 

 scheduled to repay the outstanding loan not later than 

 June 30, 2001. 



