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Message from the Chief Financial Officer 



I am pleased to present the Smithsonian Institution's first Report of the Chief Financial 

 Officer (CFO). This report provides the financial status of the Smithsonian Institution. It is 

 designed as a companion to Smithsonian \ 'ear 2000, which in previous years would have 

 contained much of this information. 



The CFO organization is committed to the growth and integrity of the Institution's financial 

 assets and to becoming a world-class operation. This vision will be made a reality by 

 improving customer service, implementing a new financial system, and strengthening 

 internal controls. 



During fiscal year 2000, many of the Smithsonian Institution offices previously leasing space 

 at L'Enfant Plaza relocated to the newly purchased Victor Building. Major construction 

 projects under way in fiscal year 2000 included the National Air and Space Museum's Udvar- 

 Hazy Center and the National Museum of the American Indian. 



Two standing committees of the Smithsonian Institution's Board of Regents, the Audit and 

 Review Committee and the Finance and Investment Committee, continued to meet during 

 2000 to provide additional levels of oversight and review of the Smithsonian Institution's 

 financial operations. 



• The Audit and Review Committee discussed the annual audit of the Smithsonian 

 Institution's financial statements presented by KPMG LLP, an independent public 

 accounting firm, and the Inspector General's Semiannual Report to the Congress. The 

 Inspector General regularly audits the Smithsonian Institution's various programs, 

 activities, and internal control systems. 



• The Finance and Investment Committee reviewed the Smithsonian Institution's federal 

 and trust budgets, monitored the investment managers' development of the Smithsonian 

 Institution's endowment, rebalanced the portfolio, and evaluated the investment 

 managers' performance. 



We are enormously grateful for the continued support we have received from the American 

 people. We live in austere times at the Smithsonian Institution, but we are well positioned to 

 address the challenges we face. We anticipate continued progress toward the deployment of 

 a new financial system in the coming year. 



I now present to you our analysis of the Smithsonian Institution's financial status for the 

 year 2000. 



Alice C. Maroni 

 Chief 1-inancial ( )fficcr 

 December 2001 



