364 



Smithsonian Institution 



Report of the Chief Financial Officer 



SMITHSONIAN INSTITUTION 



Notes to Financial Statements 



September 30, 2000 



($ millions) 



Investment income is classified in the statement of financial activity as follows for fiscal year 2000: 



Short-term investment income $ 4.8 



Endowment payout 25.5 



Endowment income reinvested 76.4 



Net investment income $ 106.7 



(7) Endowment Funds 



Substantially all of the investments of the endowment are pooled on a market value basis, with 

 individual funds subscribing to or disposing of units on the basis of the per unit market value at the 

 beginning of the month in which the transaction takes place. At September 30, 2000, the market value 

 of the pool equated to eight hundred and five dollars per unit. The market value of the pool's net 

 assets at September 30, 2000. was $741.0. This represents pooled investments minus net receivables 

 and payables related to unsettled investment transactions. 



Each fund participating in the investment pool receives an annual payout equal to the number of units 

 owned times the annual payout amount per unit. The payout for fiscal year 2000 was twenty seven 

 dollars and eighty cents per unit, or 5 percent of the average per unit market value of the endowment 

 over the prior five years. 



Net asset balances of the endowment consisted of the following at September 30. 2000: 



Unrestricted $ 287.4 



Unrestricted-designated 229.0 



Total unrestricted 



Temporarily restricted 

 Permanently restricted 



Total endowment net assets 



516.4 



160.6 

 80.0 



757.0 



