355 



Financial Statements Notes 



SMITHSONIAN INSTITUTION 



Notes to Financial Statements 



September 30, 2000 



($ millions) 



(1) Organization 



The Smithsonian Institution (Smithsonian) was created by act of Congress in 1846 in accordance with 

 the terms of the will of James Smithson of England, who, in 1826, bequeathed property to the United 

 States of America "to found at Washington, under the name of the Smithsonian Institution, an 

 establishment for the increase and diffusion of knowledge among men." Congress established the 

 Smithsonian as a trust of the United States and vested responsibility for its administration in the 

 Smithsonian Board of Regents (Board). 



The Smithsonian is a museum, education and research complex consisting of 16 museums and 

 galleries, the National Zoological Park, and other research facilities. It is based in Washington, D.C. 

 but also maintains facilities and operates programs in five states and Panama. Research is carried out 

 in the Smithsonian's museums and in other facilities throughout the world. The Smithsonian's 

 extensive collections number over 140 million objects. During fiscal year 2000, over 28 million 

 individuals visited the Smithsonian museums and other facilities. 



A substantial portion of the Smithsonian's operations is funded from annual federal appropriations. 

 The Smithsonian also receives federal appropriations for the construction or repair and restoration of 

 its facilities. Construction of certain facilities has been funded entirely by federal appropriations, 

 while others have been funded by a combination of federal and private funds. 



In addition to federal appropriations, the Smithsonian receives private gifts and grants, and government 

 grants and contracts and earns income from investments and various business activities. Business 

 activities include Smithsonian magazines and other publications, a mail-order catalogue and museum 

 shops and food services. 



(2) Summary of Significant Accounting Policies 



(a) General 



These financial statements present the financial position, financial activity, and cash flows of the 

 Smithsonian on the accrual basis of accounting. Funds received from direct federal 

 appropriations are reported as Federal Funds. All other funds are reported as Trust Funds. 

 Certain amounts for the prior year have been reclassified to conform with the current year 

 presentation. 



The statement of financial activity includes certain prior-year summarized comparative 

 information in total but not by net asset class. Such information does not include sufficient 

 detail to constitute a presentation in conformity accounting principles generally accepted in the 

 United States of America. Accordingly, such information should be read in conjunction with the 

 Smithsonian's financial statements for the year ended September 30, 1999, from which the 

 summarized information was derived. 



These financial statements do not include the accounts of the National Gallery of Art, the John F. 

 Kennedy Center for the Performing Arts, or the Woodrow Wilson International Center for 

 Scholars which were established by Congress within the Smithsonian, but which are governed by 

 independent boards of trustees. These financial statements do not include the accounts of 

 Reading is Fundamental, another organization governed by an independent board of trustees. 



