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an Institution 

 Report of the Chief Financial Officer 



that are used to support operating salaries and expenses, repair and restoration of facilities, 

 and construction. Federal appropriations for construction or repair and restoration of 

 facilities are generally available for obligation until expended, which explains why prior year 

 funds are recognized as revenue in a year other than the year they are appropriated. 



Total unrestricted (general) trust revenue for each fiscal year is revenue that has no 

 limitations imposed by the donor. Total unrestricted (general) trust revenue consists of 

 government grants and contracts, program support, business activities, and other (short-term 

 investment income, endowment payout, private grants, and rentals, fees, and commissions). 



Expenses include research, collections management, education, public programs and 

 exhibitions, business activities, administration, and advancements (fund raising expenses). 



Systems and Controls 



FACTS II Reporting 



In an effort to streamline financial reporting to the U.S. Department of the Treasury, the 

 Smithsonian Institution began Federal Agencies' Centralized Trial-Balance System II 

 (FACTS II) reporting for federal appropriated funds in early fiscal year 2000. FACTS II is a 

 federal financial management system used to collect budget execution data to assist in 

 completion of mandator} 7 federal government-wide financial reports. 



Although the Smithsonian Institution is not fully compliant with the U.S. Government 

 Standard General Ledger (SGL), the Smithsonian Institution's financial personnel have 

 established a system of reporting consistent with federal financial requirements. During 

 fiscal year 2000, the Smithsonian Institution used the FACTS II reporting program. The 

 FACTS II reporting program permits the Smithsonian Institution's adherence to federal 

 requirements for the SF 133 "Report on Budget Execution" and the FMS 2108 "Year-End 

 Closing Statement." Much of the data that appears in the prior year column of the Program 

 and Financing (P&F) Schedule of the President's Annual Budget is included in the SF 133 

 and the FMS 2108 reports. 



Government Performance and Results Act of 1993 



In an effort to improve program effectiveness and public accountability, the Smithsonian 

 Institution, although not mandated to do so, follows requirements specified in the 

 Government Performance and Results Act of 1993 (GPRA). Under GPRA, the head of 

 each agency is required to submit to the Director of the Office of Management and Budget 

 (OMB) and to the Congress a strategic plan for program activities. 



The Smithsonian Institution's agenda focuses two key mission statements into operational 

 imperatives. One mission is the commitment to enlarge the understanding of the mosaic 

 that is the American national identity by serving as the most extensive provider nationwide 

 of authoritative experiences that connect the American people to their history and to their 

 cultural and scientific heritage. The other mission is to extend the uniquely powerful 



