Smithsonian Institution Combined Statement of Cash Flows for the year ended September 30, 1992 

 (with comparative totals for the year ended September 30, 1991) (thousands of dollars) 



1992 



Trust 



Federal 



Total 



1991 

 Total 



(Increase) decrease in receivables (1.829) 



(Increase) decrease in merchandise inventory (826) 



(Increase) decrease in prepaid, deferred expense and other (3.648) 



Decrease in advance payments — 



Increase in accounts payable and accrued expenses 3.371 



Increase in deposits held in custody 1.363 



Increase (decrease) in deferred revenue 11,146 



Increase (decrease) in undelivered orders — 



Net cash provided by operating activities 29.912 



CASH FLOWS FROM INVESTING ACTTVTnES: 



Proceeds from sale of property and equipment 15 



Payments for purchase of property and equipment (5.265) 



Purchases of investment securities (509.374) 



P r o c eeds from sale of investment securities 483.312 



Net cash used for investing activities 



CASH FLOWS FROM FINANCING ACTIVITIES: 



Pro ceed s from issuance of long-term debt 



Payments on long-term debt 



Net cash provided by (used in) financing activities 



Net increase in cash and fund balances with U.S. Treasury 



Cash and fund balances with U.S. Treasury at beginning of year 



CASH AND FUND BALANCES WITH U.S. TREASURY AT END OF YEAR $ 2,560 



107 

 85 



345 



1.188 



(13.073) 



(1.722) 



(741) 



(3.648) 



345 



4.559 



1.363 



11.146 



(13.073) 



64.717 



94,629 



(54.572) 



$158,587 



8 161.147 



(287) 



(825) 



316 



5.626 



3.910 



944 



(4.312) 



10,099 



84.041 



15 



— 



(59.837) 



(48.766) 



(509.374) 



(574.418) 



483.312 



576.474 



(31.312) 



(54.572) 



(85.884) 



(46.710) 



3.800 

 (1.401) 



— 



3,800 

 (1.401) 



(387) 



2.399 



— 



2,399 



(387) 



999 

 1.561 



10.145 

 148.442 



11.144 

 150.003 



36.944 

 113,059 



$ 150.003 



The accompanying notes are an integral pan of the financial statements. 



Smithsonian Institution 

 Notes to Financial Statements 



1 . Summary of Significant Accounting Policies 



Basis of Presentation 



These financial statements do not include the accounts of the National Gallery 

 of An, 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 Institution (the Institution) but are administered un- 

 der separate boards of trustees. 



The fit«fM-i?l statements of the Institution with respect to Federal Appro- 

 priations have been prepared on the obligation basis of accounting, which is in 

 accordance with accounting principles prescribed by the Comptroller General 

 of the United States as set forth in the Policy and Procedures Manual for Guid- 

 ance of Federal Agencies. The obligation basis of accounting differs in some 

 resp ec ts from generally accepted accounting principles. Under this method of 

 accounting, approximately $43,903,000 of commitments of the operating 

 fund, such as purchase orders and contracts, have been recognized as expendi- 

 tures, and the related obligations have been reported on the Statement of Fi- 

 nancial Condition at September 30, 1992 even though the goods and services 

 have not been received. Approximately % 11, 964, 000 of these commitments 

 are for grants under the foreign currency program. Approximately 

 $1 1. 088. 000 of these commitmenc are for internal storage facilities and 

 equipment at the Museum Support Center. In addition, construction fund 

 commitments for other projects amounted to approximately $24,810,000 at 

 September 30, 1992. 



The trust funds reflect the receipt and expenditure of funds obtained from 

 private sources, government grants and contracts, investment income and cer- 

 tain business activities related to the operations of the Institution. 



Fund Accounting 



To ensure observance of the limitations and restrictions placed on the use of re- 

 sources available to the Institution, accounts are maintained in accordance 

 with the principles of fund accounting. This procedure classifies resources for 

 control, accounting and reporting purposes into distinct funds established 

 according to their approp iation, nature and purposes. Separate accounts are 

 maintained for each fund; however, in the accompanying financial statements, 

 funds that have similar characteristics have been combined into fund groups. 

 Accordingly, all financial transactions have been recorded and reported by 

 fund group. 



The assets, liabilities and fund balances of the Institution are self-balancing 

 as follows: 



Federal operating funds represent the portion of appropriated funds avail- 

 able for support of Institution operations. Separate subfund groups are main- 

 tained for each appropriation as follows: Salaries and Expense, Special Foreign 

 Currency. Barro Colorado Island Trust Fund. 



Federal construction funds re p rese nt the portion of appropriated funds 

 available for building and faculty construction, restoration, renovation and re- 

 pair. Separate subfund groups arc maintained for each appropriation — Con- 

 struction and Improvements, National Zoological Park, Repairs and 

 Restoration of Buildings. Museum Support Center and the Center for African. 

 Near Eastern and Asian Cultures (Quadrangle) 



119 



