these organizations for the aforementioned services, together with rent for In- 

 stitution facilities occupied, totaled $265,000 ($190,000 for rhe trust funds 

 and $75,000 for the federal funds) for the year ended September 30. 1992 

 Deposits held in custody for these organizations were $5,839,000 as of Sep- 

 tember 30. 1992. 



3 Investments 



Investments are recorded at cost on a trade date basis, if purchased, or esti- 

 mated fair market value at date of acquisition, it acquired by gift. At Septem- 

 ber 30. 1992. investments were composed of the following: 



Carrying 

 value 



($000s) 



Market 

 value 

 ($00fe) 



Current funds: 



Short-tens investments 



Endowment and similar funds: 

 Pooled investments: 

 Short-term 



U.S. Government and quasi-governmeni obligations 

 Corporate bonds and other obligations 

 Common and preferred stock 



Subtotal pooled investments 

 Non-pooled investments: 

 Deposit with U.S. Treasury 



Chan table trusts 



Subtotal non-pooled investments 



Plant funds: 

 Common stock 

 US Government securities 



$ 62.502 $ 63.102 



factors as . bur nor limited to: ( 1 ) 4 ' / 1 % of the five-year average of the market 

 value of each fund (adjusted for gifts and transfers during this period). (2) cur- 

 rent dividend and interest yield. ( 3 ) support needs for bureaus and scientists, 

 and (4) inflationary factors as measured by the Consumer Price Index. How- 

 ever, where the marker value of the assets of any endowment fund is less than 

 110% of the historic dollar value (value of gifts at date ot donation i. the 

 amount provided is limited to only interest and dividends received. 



The total return factor for 1992 was $12.50 per unit, equivalent to 4% of 

 the five-year average of the Market Value of each participating fund. The total 

 return amount exceeded actual dividends and interest earned for the year and 

 this excess was transferred from the endowment funds to the current funds (see 

 Note 12). 



The endowment fund balance is comprised of the following at September 

 30. 1992: 



($0005) 







Endowment — unrestricted 







Endowment — restricted 



48.724 



51.292 



Quasi -endowment — unrestricted 



70.587 



73.360 



Quasi-endowraent — restricted 



53.309 



56.882 





124.365 



166.954 





296.985 



348.488 



5. Receivables 



$ 7.793 

 100.408 

 127.526 

 56.347 



1292.074 



1.036 

 595 



1.072 

 834 



1.631 



1.906 



298.616 



125 

 15.990 



16.115 



350.394 



215 



16.110 



16.325 



Tool investments 



$377,233 $429,821 



The deposit with the U.S. Treasury is invested in U.S. Government securi- 

 ties at a variable yield based on market interest rates. 



Substantially all the investments of the endowment and similar funds are 

 pooled on a market value basis (consolidated fund) with each individual fund 

 su bsenbing to or disposing of units on the basis of the per unit market value at 

 the beginning of the month within which the transaction takes place. Of the 

 total units, each having a market value of $410.20. 323.919 units were owned 

 by endowment funds, and 525.629 units were owned by quasi-endowment 

 funds at September 30, 1992. 



The following tabulation summarizes changes in relationships between cost 

 and market values of the pooled investments at September 30. 1992. 







(WUUJI 





Market 





Market 



Con 



Net 

 dunce 



value 

 per unit 



End of year 

 Beginning of rear 



$348,488 

 312.261 



$296,985 

 263.884 



$51,503 



48.377 



$410.20 

 378.07 



Increase m unrealized net 



gain for the rear 

 Realized net gain for 



the veu 







3.126 



17.790 



$20,916 



- 



Total net gains for die 

 year 



$ 32.13 



4. Endowment and Similar Funds 



The Institution utilizes the "total return" approach to investment manage- 

 ment of endowment funds and quasi-endowment funds. Under this approach, 

 an amount equal to the difference between actual interest and dividends 

 earned during the year and the amount computed under the total return for- 

 mula is transferred to or from the current funds. 



In applying this approach, it is the institution's policy to provide, as being 

 available for current expenditures, an amount taking into consideration such 



($0001) 



Receivables at September 30, 1992 included the following: 



Auxiliary activities and other accounts 

 receivable, net of $5,854 allowance for 

 doubtful accounts 



Receivables for investment secunnes sold 



Pledges receivable 



Reimbursements due from giants and 

 t u u u a iu 



Interest and dividends receivable 



lnterfund receivables 



Accrued annual leave 



Other 



6. Advance Payments 



Advance payments represent prepayments made to government agencies, edu- 

 cational institutions, firms and individuals for services ro be rendered, or prop- 

 erty or materials to be furnished. 



As of September 30. 1992, the most significant advances outstanding were: 

 $6,7)3,000 to the General Services Administration . principally for construc- 

 tion services including the Museum Support Center and other projects to be 

 completed in future fiscal yean; and approximately $ 1 ,608,000, principally 

 under the Special Foreign Currency Program. 







Totals. 



Trust 



Federal 



all 



funds 



funds 



funds 



$18,626 



$ - 



$18,626 



7.541 



— 



7.541 



3.693 



— 



3.693 



3.550 







3.550 



3.604 



— 



3.604 



11.617 



— 



11.617 



— 



11.483 



11.483 



19 



460 



479 



$48,650 



$11,943 



$60,593 



7. Property and Equipment 



At September 30. 1992, property and equipment 

 following: 



Trust 



Cmrrtmt funds 

 Capital improvements 

 Equipment 

 Building 

 Leasehold improvements 



comprised of the 



($0005) ($0005) 



Less: accumulated depreciation and 



$ 24.143 



11.148 



3.981 



1.170 



40.442 



(17.547 ) 

 22.895 



131 



