Independent Auditors' Report 



BOARD OF REGENTS 

 SMITHSONIAN INSTITUTION: 



We have audited the accompanying statement of financial condition 

 of the Smithsonian Institution as of September 30, 1995, and the 

 related statements of financial activity and cash flows for the year 

 then ended. These financial statements are the responsibility of the 

 Institution's management. Our responsibility is to express an opin- 

 ion 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 per- 

 form the audit to obtain reasonable assurance 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 pre- 

 sent fairly, in all material respects, the financial position of the 

 Smithsonian Institution as of September 30, 1995, and the results of 

 its operations and its cash flows for the year then ended, in confor- 

 mity with generally accepted accounting principles. 



Statement of Financial Condition 



September 30, 1995 (with comparative totals for 1994) (In thousands) 





Trust 



Federal 



Total 



Total 





funds 



funds 



1995 



1994 



Assets: 











Cash and balances with U.S. Treasury 



$ 1,075 



173.124 



174.199 



172.880 



Investments (note 3) 



464.048 



- 



464,048 



409.731 



Receivables and advances (note 5) 



82.582 



14,595 



97,177 



72,765 



Inventory 



18.222 



1.425 



19,647 



19.302 



Prepaid, deferred expense and other (note 6) 



28.293 



- 



28,293 



2 1 .007 



Property and equipment, net (note 7) 



89.355 



353,412 



442.767 



434.613 



Collections (note 1 1 ) 



- 



- 



- 



- 



Total assets 



S 683.575 



542.556 



1.226.131 



1.130.298 



Liabilities: 











Accounts payable and accrued expenses 



S 52,422 



24.048 



76.470 



59.663 



Payable for investment securities purchased 



12,923 



- 



12.923 



9.544 



Deposits held for others (note 2) 



5,996 



1,349 



7,345 



12.084 



Accrued annual leave and voluntary 











separation costs (note 14) 



4.213 



12.960 



17.173 



22,244 



Deferred revenue 



69,820 



- 



69.820 



43.625 



Long-term debt (note 9) 



3.350 



- 



3.350 



3.103 



Total liabilities 



148.724 



38.357 



187.(181 



150.263 



Fund balances: 











Trust: 











Current: 











Unrestricted general purpose 



10,159 



- 



10.159 



1 1 .0 19 



Unrestncted special purpose 



27.800 



- 



27,800 



28.377 



Restricted 



25.302 



- 



25.302 



24.576 



Endowment and similar funds (note 4) 



381.574 



- 



381.574 



348,228 



Plant funds 



90.016 



- 



90,016 



83.778 



Federal: 











Operating funds (note 10) 



- 



5 1 .360 



51.360 



47.986 



Construction funds 



- 



98.003 



98.003 



89.357 



Capita] funds 



- 



354.836 



354.836 



346.714 



Total fund balances 



534.851 



504.194 



1 IIWIIMI 



980.035 



Commitments and contingencies (note 8) 

 Total liabilities and fund balances 



S 683.575 



542.556 



1.226.131 



1.130.298 



See accompanying notes to financial statements. 



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