FINANCIAL REPORT 



NANCY D. SUTTENFIELD, 

 CHIEF FINANCIAL OFFICER 



Introduction 



The Smithsonian Institution receives funding from both federal 

 appropriations and nonappropriated trust sources. Nonappro- 

 priated trust funds include all funds received from sources other 

 than direct federal appropriations. These other sources include 

 gifts and grants from individuals, corporations, and foundations; 

 grants and contracts from federal, state, or local government 

 agencies; earnings from short- and long-term investments; re- 

 ceipts from membership programs; and receipts from sales activi- 

 ties, such as Smithsonian magazine, museum shops, mail order 

 catalogues, and food service concessions. 



Federal appropriations provide funding for the Institution's 

 core functions: caring for and conserving the national collec- 

 tions, sustaining basic research on the collections and in selected 

 areas of traditional and unique strength, and educating the pub- 

 lic about the collections and research findings through exhibi- 

 tions and other public programs. Federal appropriations also 

 fund a majority of the activities associated with maintaining 

 and securing the facilities and with various administrative and 

 support services. 



Smithsonian trust funds allow the Institution to undertake 

 new ventures and enrich existing programs in ways that would 

 not otherwise be possible. These funds provide the critical mar- 

 gin of excellence for innovative research, building and strength- 

 ening the national collections, constructing and presenting effec- 

 tive and up-to-date exhibitions, and reaching out to new and 

 under-represented audiences. In recent years, the Smithsonian 

 has also begun to rely on trust funds for a portion of the funding 

 for major new construction projects. 



The following sections describe the external environmental 

 factors affecting the Institution's general financial condition, the 

 Institution's financial status, and its planned response to chang- 

 ing conditions; financial results for fiscal year 1995; and mea- 

 sures, both organizational and financial, being taken to ensure 

 the continued fiscal health of the Institution. 



Scientist Roberto 

 lbanez studies a frog 

 at the Smithsonian 

 Tropical Research In- 

 stitute in Panama in a 

 protect to determine 

 the causes for a de- 

 cline in the amphibian 

 population. (Photo- 

 graph by Marcos 

 Guerra). 



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