SMITHSONIAN YEAR -« 1980 Statement by the Secretary SMITHSONIAN YEAR ° 1980 Exhibits Are for Everyone STATEMENT BY THE SECRETARY S. DILLON RIPLEY The Smithsonian Institution * 1981 FRONTISPIECE: Details from portraits of George and Martha Washington, painted from life by Gilbert Stuart in 1796. These famous paintings are now, by legal agreement, owned jointly by the Smithsonian Institution and the Museum of Fine Arts, Boston, to be shared for exhibition on a three-year rotation. The portraits are presently on exhibition at the National Portrait Gallery. The Smithsonian Institution The Smithsonian Institution was created by act of Congress in 1846 in accordance with the terms of the will of James Smithson of Eng- land, who in 1826 bequeathed his property to the United States of America “to found at Washington, under the name of the Smith- sonian Institution, an establishment for the increase and diffusion of knowledge among men.” After receiving the property and ac- cepting the trust, Congress incorporated the Institution in an “es- tablishment,” whose statutory members are the President, the Vice-President, the Chief Justice, and the heads of the executive departments, and vested responsibility for administering the trust in the Smithsonian Board of Regents. THE ESTABLISHMENT Jimmy Carter, President of the United States Walter F. Mondale, Vice-President of the United States Warren E. Burger, Chief Justice of the United States Cyrus R. Vance, Secretary of State? Edmund S. Muskie, Secretary of State? G. William Miller, Secretary of the Treasury Harold Brown, Secretary of Defense Benjamin R. Civiletti, Attorney General Cecil D. Andrus, Secretary of the Interior Bob S. Bergland, Secretary of Agriculture Juanita M. Kreps, Secretary of Commerce® Philip M. Klutznick, Secretary of Commerce* F. Ray Marshall, Secretary of Labor Patricia Roberts Harris, Secretary of Health, Education, and Welfare Moon Landrieu, Secretary of Housing and Urban Development Neil Goldschmidt, Secretary of Transportation Charles W. Duncan, Secretary of Energy 1 Resigned April 1980. 2 Sworn in May 8, 1980. * Resigned November 1, 1979. * Sworn in January 9, 1980. [v] Board of Regents and Secretary * September 30, 1980 REGENTS OF THE Warren E. Burger, Chief Justice of the United States, ex officio, Chancellor INSTITUTION EXECUTIVE COMMITTEE THE SECRETARY Walter F. Mondale, Vice-President of the United States, ex officio Henry M. Jackson, senator from Washington Barry Goldwater, senator from Arizona Robert B. Morgan, senator from North Carolina Silvio O. Conte, representative from Massachusetts Norman Y. Mineta, representative from California Frank Thompson, Jr., representative from New Jersey Anne L. Armstrong, citizen of Texas J. Paul Austin, citizen of Georgia William G. Bowen, citizen of New Jersey William A. M. Burden, citizen of New York Murray Gell-Mann, citizen of California A. Leon Higginbotham, Jr., citizen of Pennsylvania Carlisle H. Humelsine, citizen of Virginia James E. Webb, citizen of the District of Columbia Warren E. Burger, Chancellor William A. M. Burden Carlisle H. Humelsine James E. Webb (Chairman) S. Dillon Ripley Phillip S. Hughes, Under Secretary Charles Blitzer, Assistant Secretary for History and Art David Challinor, Assistant Secretary for Science Joseph Coudon, Special Assistant to the Secretary Julian T. Euell, Assistant Secretary for Public Service James M. Hobbins, Executive Assistant to the Secretary Christian C. Hohenlohe, Treasurer John F. Jameson, Assistant Secretary for Administration Paul N. Perrot, Assistant Secretary for Museum Programs Peter G. Powers, General Counsel James McK. Symington, Director, Office of Membership and Development Lawrence E. Taylor, Coordinator of Public Information [ vi ] Smithsonian Year * 1980 STATEMENT BY THE SECRETARY e + Exhibits are for everyone an exuberant and immediate means to the increase of knowledge. This costume band from New York City took part in the Caribbean Carnival parade of the annual Festival of American Folklife, presenting a show of imagination and wonder against the Castle background. Exhibits Are for Everyone S. DILLON RIPLEY AT THE RISK OF BEING ACCUSED of reckless hyperbole it seems fair to state that this past year has seen the most distinguished hegira of modern times, the miraculous reappearance of President Washing- ton and his lady in Washington, D.C. The Washingtons have come to grace our midst for three years, he calm and assured, those eyes looking out and past one into the middle distance, as if the stability of the dollar bill could never be gainsaid, she rosy-cheeked and mob-capped, epitome of the mother figure all of us associate with reassurance. From what I have been told Washington disliked Boston, or at least is alleged to have felt uncomfortable there, certainly in 1775. In that initial year of the war he found New Englanders as officers in the Army “generally speaking the most indifferent kind of people I ever saw.” Washington was in Boston on only three oc- casions during his lifetime and yet by the ironies of fate, Mrs. Stuart’s debts, and the necessity to sell her late husband’s life sketches of the Washingtons, the President and his lady had been condemned to be on display in that alleged ““Athens” since 1831, having been purchased for the Boston Athenaeum’s collection of art from Mrs. Stuart. Gilbert Stuart was born in Rhode Island, and the most famous of his subjects, painted from life in Philadel- phia, the father figure and his consort, were Virginians to the core. How strange it was to have their likenesses hung, forlornly, for so many years in the home of the bean and the cod. When IJ first saw the portraits there in my childhood at the Museum of Fine Arts, that temple of the visual and plastic arts, where they had hung already for two generations, in a corridor as I recall off the entrance foyer leading to the restrooms, portraits were infinitely less thought of as works of art and testaments of history than they are today. ee In 1978 the Smithsonian was visited by a delegation of respon- sible trustees and lawyers of the two Boston institutions, the Athenaeum and the Museum of Fine Arts, with the suggestion that we should somehow purchase the portraits for our Johnny-come- lately National Portrait Gallery, born fifty years too late. The price seemed astronomical, but we were assured it represented fair mar- ket value for these unique documents, and this was probably true. How can one set a value on the Bill of Rights, or the manuscript of the Star-Spangled Banner? These paintings, done from life, are as one of the National Portrait Gallery 7 “pieces of the true cross,’ commissioners was wont to declaim. There was no real doubt in anyone’s mind that Washington City had somehow come of age, become sophisticated enough to be able to provide these great paintings with an appropriate setting. But how to afford them? We did not have five million dollars, nor could we arouse interest among our benefactors, the United States Congress; they did not feel that they could afford them for us either. Great philanthropists around the country were unenthusiastic. No one wanted to join in the responsibility of bringing the father of his country home to the town named for him. Besides, the District of Columbia being a political city in spite of its cultural establishment, there were those who aspired to place the Stuart portraits in the White House, feel- ing this setting would reflect better on the dignity of the sitters, as well perhaps as the réclame of the donors. And so the Washingtons were in limbo for the moment. The need for money for endowments of the early library society, the Boston Athenaeum, was great—but no one stepped forward from the wings. At this juncture events occurred which might well have convinced the General that his thoughts about Boston were cor- rect. An election was coming up, and local politicians, perhaps not art connoisseurs by admission, but certainly patriots all, sprang into the lists and declared that the Washingtons, “born and bred” as who could doubt in Massachusetts, must remain there once and for all. A committee to “Save Our Stuarts” was hastily set up, and all contact with the bureaucrats in the Smithsonian was eschewed. “How dare those Feds try to steal our jewels?” was the rallying cry. “Don’t we pay taxes enough already?” chorused the politicians. The Institution sat back decorously and gracefully—and waited. The final result delights us. We now legally share the wonderful [4 ] portraits with Boston’s Museum of Fine Arts; each of us having raised approximately half the money for the Boston Athenaeum’s requirements, we each can exhibit the Washingtons for a three- year period. Strangely enough, this concept of sharing unique works of art or history is still new, little endorsed by the great art or historical museums. Pride of possession is still too strong in the hearts of curators, acquisitors all. But it was a grand acquisitor himself, the sometime Metropolitan Museum of Art director, Thomas Hoving, whom I recall suggesting such a program, one with which I am heartily in accord. Solomon’s choice, one might say. Nonsense! Sometimes works of unique importance should be shared, if not physically divided. There is too much parsimony in the world of unique objects as it is. Finally the Smithsonian is delighted to have the Washingtons back near home, by an agreement reached when all the shouting and exhortations died away from the bunting-draped platforms whence they apparently emanated. The nation can only be the better for this exposure to great works, and benefit from the su- __Perior evidence which President and Mrs. Washington provide. A community of interest should be ours in the sharing as well as the acquiring and exhibiting of works of art. It is to be hoped in the future that more museums will feel this way. Exhibits are for everyone and we have been fortunate to share the Washingtons, as we are fortunate to share exhibitions. Our success here is with the Smithsonian Institution Traveling Exhibition Service, the prime outreach service in the field of art and history exhibitions that the Institution can offer. This is a far more effective service for us to manage than the oft-repeated plea that we should manage entire museums in other states. We feel it is much more effective to mount exhibitions, with all the talent we can muster, and then launch them in company with colleagues across the land. The act creates mutuality of interest, is similarly educational for everyone includ- ing a vast and growing public, and accentuates part of our mandate for “increase and diffusion.” The future is with us in the develop- ment of the traveling exhibitions. The Smithsonian Institution Traveling Exhibition Service (sités), founded in 1952, is now the largest and most diversified agency of its kind in the world. Up to one hundred and twenty different ex- hibitions have been circulated in one year in the United States and [5] several have gone abroad. These exhibitions reach over five million visitors to museums, libraries, universities, and other organizations whose programs would have been far less diversified and meaning- ful had it not been for the contributions made by sires. During 1980, dozens of new exhibitions were introduced for circulation. Among the most important was the first thorough survey of the history of the French porcelain manufactory of Sevres. This was accompanied by the first comprehensive catalogue in English de- scribing the history and the production of that great porcelain cen- ter. Western Views and Eastern Visions, a collection of photo- graphs mostly taken by members of the United States Geological Survey during the second half of the nineteenth century, and for the most part never exhibited before, gives an unvarnished view of the grand spectacle that our early explorers encountered as they were mapping this country. Another highly successful exhibition, drawn from the collection of the Hirshhorn Museum and Sculpture Garden, dealt with Twentieth Century Sculptors and Their Drawings. sites has ambitious plans to expand its foreign offerings and to develop the means to circulate an increasing number of our own exhibitions abroad. To find the means and techniques to do so efficiently will be one of the major tasks of siTEs’s new director, Peggy Loar. She comes to the Smithsonian from the Institute of Museum Services, where she was assistant director for program and policy. Miss Loar has broad museum experience and is well prepared to formulate programs responsible to the needs of siTEs’s constituency. Like sites whose exhibitions reach across the country and the world, the magazine Smithsonian, celebrating its tenth anniversary, reaches an ever-larger number of Associates here and abroad, nearing two million at this date. Our radio programs, notably Galaxy, now are heard by sixty million people per year around the world. The Institution’s Press, operating in the black, has published a variety of excellent books, while Smithsonian Exposition Books, a publishing enterprise largely for Associates, has had a most suc- cessful season with a book on The American Land, and a history of presidential elections, titled Every Four Years, now in its second printing. Exhibitions often associate themselves closely with performances or colloquia. The Einstein Centennial was a fortunate occasion to [6 ] A community of interest is ours in the sharing of works of art. Dur- ing filming of A Sense of Discovery, produced by the Office of Tele- communications, conservators at NCFA restore an early American portrait. Below. Participants at the Edison Centennial Symposium in San Francisco view an installation of the sires exhibition on Edison and the Electrical Age: One Hundred Years. correlate a seminar at Princeton University with an exhibition at the National Museum of History and Technology. Exhibitions also include new acquisitions. The Smithsonian has been fortunate this past year in acquiring gifts in the field of modern art, notably the extremely important collection (part purchase with Regents Col- lections Acquisition funds, part gift from Vincent Melzac) of contemporary or recent painters including the Washington School, as well as seminal works by William de Kooning, Kenneth Noland, and Jules Olitsky. | In discussions of museum operations, a distinction is often made between research and exhibition—a distinction that is also en- shrined in the language of federal budgets. Although in some ways it may be useful to make this distinction, the fact is that any good exhibition is necessarily both the product of research and a contribution to knowledge. In the case of art and science museums, where the evidence can be fully understood and appreciated only when it is physically before the viewer, exhibitions are in a real sense the most appropriate means of publishing the results of re- search. In a university, such museum exhibitions should qualify equally with books insofar as they may represent new discoveries of demonstrable theories of the professor-curator. This was a fact I was at pains to point out to faculty administrators during my work at Yale University, for too often such evidence of scholarly research tended to be overlooked. In art museums there is at least an exhibition catalogue published and distributed as tangible printed evidence of scholarly production. Curators among the scientific disciplines usually have less recourse to publications, however, and have sometimes been penalized through lack of com- prehension by administrators of the original scholarship and char- acter of exhibitions. In recent years the art and history museums of the Smithsonian family have increasingly drawn upon their excellent scholarly staffs to create a growing number of exhibitions that have in this sense constituted important contributions to knowledge. While our mu- seums have continued to show exhibitions organized elsewhere, and have added to the pleasure and education of our millions of visitors by doing so, we are particularly pleased to have been able to share with other museums more and more exhibitions con- ceived and organized within the Smithsonian. A sampling of ex- [3] + A bi ird pup pet fr om the B ambar a people of Mali is ad s admired kt oy a yo young visi sitor to the M use um of Af rica nA rt’s 1 980 SU immer ex! ribiti ion on P upp ppets fr rom West A wt 2 fric ica. Raphael Soyer, the dean of American realists, came to the Hirshhorn Museum and Sculpture Garden for his 80th birthday exhibition that opened at the museum on December 4, 1979. Here Soyer poses in front of his painting Portraits at a Party, a recent gift to the collection from Joseph H. Hirshhorn. The museum owns more of this artist’s works—62 paintings and drawings—than any other institution. hibitions of this’ sort indicates something of the range of our museums’ contributions to this common enterprise of scholars and curators everywhere. The Hirshhorn Museum and Sculpture Garden’s important retrospective Miro: Selected Paintings was later seen at the Al- | bright-Knox Art Gallery in Buffalo; Hirshhorn exhibitions of works by Botero and Edwin Dickinson traveled to Corpus Christi, Texas, and Louisville, Kentucky, respectively. An exhibition of oil sketches by Frederic Church from the collection of the Cooper- Hewitt Museum was organized by an outside curator, traveled to eight cities under the auspices of the Smithsonian Institution Traveling Exhibition Service, and was finally shown at the Cooper- Hewitt this year. The National Portrait Gallery’s exhibition Time of Our Lives, consisting of selections from its collection of Time magazine cover portraits, was shown at the Lyndon B. Johnson Library in Austin. Three important exhibitions organized by the National Collection of Fine Arts were shared widely with museums elsewhere in this country and abroad: Hugo Robus (1885-1964) was seen at the Allentown Art Museum in Pennsylvania and the Columbus Museum of Art in Ohio; Drawings of Morris Louis traveled to the Fogg Art Museum, the Israel Museum, and the Tel Aviv Museum; Across the Nation: Fine Art in Federal Buildings, 1972-79, an exhibition of ninety-seven drawings and maquettes from the artist-in-architecture program of the General Services Administration will travel to the Hunter Museum of Art in Chat- tanooga and to four other cities. The Renwick Gallery’s beautiful exhibition The Harmonious Craft: American Musical Instruments was shared with the American Craft Museum in New York City, the Kohler Arts Center in Sheboygan, Wisconsin, and Northwest Missouri State University. Finally, as the result of a very happy and fruitful international collaboration between Dr. Otto Mayr of our National Museum of History and Technology and the Bavarian National Museum in Munich, the very important exhibition The Clockwork Universe: German Clocks and Automata 1550-1650 will be seen in both institutions. These are examples of the ways in which the museums of the Smithsonian have been able to use their own scholarly resources, and in many cases their own collec- tions, for the benefit of scholars and museum visitors throughout the country and the world. We expect that this sharing will con- tinue and increase in the years ahead. [11 ] In all these exhibitions, the Collections Acquisition funds pro- vided by the Smithsonian Regents continue to play a significant role. As part of our trust funds budget allocated for the purpose, these sums, now only three years old, enable our museums to make important additions to collections. Thus the Hirshhorn Museum, in connection with the Miro retrospective exhibition, was able to ac- quire the painting Woman before an Eclipse with Her Hair Di- sheveled by the Wind, which was included in the show. Additional examples of such acquisitions are the collection of twelve Chinese calligraphy scrolls, exhibited so handsomely at the Freer Gallery of Art; the Gaston Lachaise sculpture Standing Woman (Heroic Woman) installed on the Hirshhorn Plaza; and those incomparable Gilbert Stuart portraits of George and Martha Washington, center- pieces now of the National Portrait Gallery’s holdings. The possession of such funds is a new development for the In- stitution, and makes possible, often with matching grants, the pur- chase of material formerly beyond the Smithsonian’s reach. Simi- larly the importance of some of our collections, in fields like gems and gemstones, increasingly attracts major gifts. This has been a significant year in terms of the outstanding re- search accomplishments with new facilities. For instance, latest reports indicate that the capabilities of the Multiple Mirror Tele- scope are exceeding our expectations. The site at the summit of Mt. Hopkins is turning out to be excellent for observation purposes and may be one of the very best such locations in the continental United States. The building is also exceeding our hopes in effective- ness. Modifications which we plan over the next few years should result in even sharper stellar images than are being obtained now (one-half arc second). Increasing the sharpness of the image is equivalent to increasing the diameter of the telescope by the same factor. Thus, these improvements are making available to American astronomers a telescope considerably more powerful than the 176- inch equivalent that had been anticipated originally. At the Smithsonian Tropical Research Institute an important new facility at the Naos Marine Laboratory was opened by the presi- dent of Panama in July 1980. In this completely new aquatic system providing sea water for studies of captive marine organ- isms, salt water can be provided in raw, filtered, and sediment-free states, and the return flow can be sterilized so that organisms from baad non-Pacific sources can be studied without risks of contamination. This facility will greatly enhance the research potential of our marine laboratory and should provide an important adjunct to any future sea-level canal studies, long a concern of the Smithsonian. Our Marine Sciences Laboratory, located in the National Mu- seum of Natural History / Museum of Man, has acquired its own research vessel and airplane, and this year the laboratory success- fully conducted its first combined “sea and air” mission. The trip to the Caribbean focused on the study of coral reefs off the coasts of Haiti and the Virgin Islands. With the success of this expedi- tion, plans are moving forward for the study of Pacific reefs using the same combination of ship and plane. Meanwhile the simulated living coral reef and lagoon with over two hundred species of animals and plants, materials garnered from these Caribbean studies, is now in place in a working laboratory exhibition in our National Museum of Natural History. This exhibition, designed by Dr. Walter Adey and planned with major support from the National Science Foundation, bids fair to becoming a major public education exhibition to be reproduced—with National Science Foundation help—in other museums across the country. After over ten years of planning, countless meetings and studies, and numerous presentations to the Congress, one of the Institu- tion’s highest priorities is soon to be accomplished. Ground will be broken for the new Museum Support Center which will permit, at long last, the removal of vast portions of the collections of the National Museum of Natural History from inadequate facilities to a milieu where they can be properly conserved, easily retrieved and studied, and contained within laboratories equipped with the most up-to-date technology. Thus, a significant new door is about to open; while in the decades ahead the facility will no doubt have to be expanded, in the near term it can only be described as a quan- tum improvement. It is irresponsible as well as unethical for museums to harvest collections only to let them gradually decay in ill-ventilated, over- heated, and crowded storage areas. The proper housing of the col- lections of the National Museum of Natural History is a priority not only of the Institution but of the nation, for these collections in major part are unduplicated and are totally irreplaceable. In their aggregate, they represent a significant portion of the nation’s, [ 13 J M he indeed the world’s, scholarly inheritance. It is with great satisfac- tion that I have presided over the achievement of this goal: I look forward to the dedication of the building, on schedule, toward the end of 1982. Thereafter, we plan to initiate a program of training in conservation to help alleviate the critical shortage of fully quali- fied conservators in America. The Smithsonian Institution continued to search for ways to meet the high standards of excellence in its exhibitions, programs, and activities while significantly curtailing energy use wherever possible. More aggressive efforts which began in 1979 with the creation of a Smithsonian-wide energy conservation task force culminated this year in the establishment during June 1980 of a formalized Energy Management Program. The new energy policy establishes a plan for renovating inefficient utilities systems and for upgrading utilities operating procedures, expands an employee awareness program, and establishes a monitoring group in each museum and facility to ensure continued Institution-wide support and participation. Since fiscal year 1978, the Institution has avoided more than $1.5 million in utilities costs, of which nearly $600,000 was realized during the past year. This cost avoidance is attributed primarily to a computerized power management system and to improvements in the operation and maintenance of utilities distri- bution equipment. Among numerous additional energy conserva- tion measures implemented this year, the Institution installed solar collectors on the new Great Ape House at the National Zoo, reduced lighting levels and modified exhibit and office lighting systems, altered selected staff work schedules to reduce lighting re- quirements and to avoid using powered tools and equipment during peak energy charge hours, and turned off “down” escalators and selected elevators on peak demand days. Other energy-saving measures begun during the year included the initiation of a study with the goal of creating energy-efficient environmental zones within Smithsonian buildings, testing of a new carburetor device to trim use of fuel in Smithsonian vehicles, and experimentation with gasohol. Earlier in this account I have spoken of the “evidence” which the portraits of President and Mrs. Washington provide. I mean in this sense the manifestation that their appearance discloses. Wil- liam Walton used the word in the title of his book, The Evidence [ 14 ] National Museum of Natural History volcanologist Dr. William Melson took this picture of Mount Saint Helens from the air shortly after it began to show signs of erupting. An apron of gray ash covers the snowy flanks of the mountain. Below. In response to public interest in the Mount Saint Helens eruption, scientists from NMNH organized a symposium on this fascinating national event. Answering public ques- tions here are (left to right) NMNH director Richard Fiske, chief U.S. Geological Survey volcanologist Robert Tilling, and museum volcanologists William Melson, Thomas Simkin, Lindsay McClelland. (Photo by Chip Clark.) of Washington (1966). Evidence is an aggregate of things, signs and symbols, past and present. It is not merely an exhibit, but the mood that it creates. In the artist’s eye vision induces perspicuity, a seeing through. So it is with objects, objects collected by mu- seums, objects from an attic or a bureau drawer. When my father died I opened the drawer, and there spread before me was the materia vitae, like a Harnett still life, the spectacles, a silver pencil for a waistcoat chain, collar buttons, a photo of a boy in the uni- form of the Knickerbocker Grays, an old letter, and a diary. If we did not build the Museum Support facility, where would our conscience be? If we did not collect objects, what evidence of truth would there be? Objects are a surer evidence than legal precedents, whose evidence Henry Clay questioned in one of his speeches in the Senate in 1835: “a solitary precedent . . . which has never been re-examined can not be conclusive.” It is not so with objects, be they the jawbone of Balaam’s ass, or the golden cup of Alexander of Macedon. Now that people read less, perhaps ob- jects will return to their former status as evidence of truth, old testaments to revelation. Sometimes I have described museums, a bit facetiously, as the only legitimate growth industry (in a world of declining natural resources). It is true that in our present mode of life, in spite of the successes of the auction business, more and more people live under increasingly compressed physical condi- tions. Rooms are smaller, ceilings lower, attics like the trunk spaces of automobiles soon to be nonexistent. So, more and more, mu- seums are being called upon as a last resort to winnow the chaff of possessions—and authentically curate the results. Museums live as they grow, presiding over the verities of history. I once quoted a Dr. Scott cited by the famous writer and philosopher, Cardinal Newman, as saying that “growth is the only evidence of life,” a statement with a convincing biological ring. If one assumes this to be true, then museums and their careful curating have a far higher priority in life than public recognition or support gives them credit for. In Washington today there exists a great paradox: life goes on but not much growth. One must eat and sleep and mind one’s daily affairs, but the mood is numb. Too few people look at the dome of the Capitol or notice the soaring thrust of the Washington Monument, to sense the meaning and feel the past through mists, [ 16 ] like swirling clouds in time of war and pestilence, or the scourge of slavery, the past of unequal opportunity out of which, in pain, a Republic has arisen. Washington is not a symbol of inefficiency and pettifogging, but is rather in all our hearts, as in the eyes of the world, the emblem of democracy, a land where wounds are bound and hopes for future peace are established. How can we recapture the past and find strength for the present? The two together promise hope and certainty for the future. I would venture that a walk along the nation’s quadrangle, the National Mall, cathedral close of the Republic if you will, would provide a lesson in such feelings. Start at the Capitol, stand under Thomas Ustick Walter’s great dome,’ and then wander north and south to the adjacent original cubic spaces of Benjamin Latrobe. Stroll outside, down the lawn to the grand promenade, lined with our common history. Enter one or another of the buildings by your choice, and go on as far as you can, and if at the end, the result is not to produce in you a mood of assurance and confidence for the future, I would be surprised. For in this place there dwells a kind of reassurance, a reaffirmation of what we are about, the evidence of our purposes in being here at all. In this connection, thinking of the past, it is worth pondering what we are doing about the present. What, for example, are we doing about that great preoccupation of today, the role of creative equal opportunity and affirmative action? Over the past year sig- nificant progress has been made in the Institution’s equal employ- ment opportunity and affirmative action programs. While roughly one-third of our work force is drawn from minority employees, and one-third are women, specific efforts are being made to improve their representation at the professional level. Similarly, we are seeking to afford more job opportunities to disabled persons. I am pleased to say that a variety of steps are being taken that in cumu- lative effect will result in a strengthened organization. Every job 1Perhaps our readers are not aware that the huge Capitol dome, symbol of stability, is alive? It moves. Joseph Henry, the first Secretary of the Smith- sonian, conducted an experiment to determine the amount of movement of the top of the dome as a result of expansion from the heat of the sun in daytime, and nighttime contraction, and found that there was motion toward the cardi- nal points of the compass in twenty-four hours. The top oscillates each day between three and four inches, giving a nod, as it were, to the fifty states. [17] category in the Smithsonian has been analyzed to determine the composition of its employees. Areas of underrepresentation by women and minorities will receive particular attention. Recruitment efforts will reach out in a more positive way to seek all qualified candidates. A management review takes place on each tentative selection to ensure that all affirmative action requirements and needs have been realized. A concurrent program includes the development of an expanded upward mobility series to provide employees the opportunity to improve their qualifications for career development and advance- ment. Whatever the ideal is in this respect, it continues to be a fact that qualified minority or women applicants may not be available for many of the Institution’s jobs, especially in certain specialized scholarly and scientific disciplines that have little financial appeal in the job market. Consequently, we have inaugurated a coopera- tive education program that will allow approximately twelve grad- uate-level students to intersperse periods of work at the Institution with course work. Over time we hope to be able to recruit candi- dates who have completed this program to take on specialized professional careers. Other college and university intern programs at the undergraduate level are now being studied. We expect to make a greater effort to interest young people in pursuing our own types of academic work—now poorly promoted by university de- partments—that will qualify them for professional consideration by the Institution. The present fashions in science training, particularly in biology, are all in the field of cellular research, biochemical- and biophysi- cal-related, and in the burgeoning field of molecular studies. Con- nected to this is the continual pressure for many of the brightest students to be weaned away from the natural sciences into fields of medicine, as it has continued to be in the years since I was my- self a university professor. And yet the need for studies in the long-neglected and quasi-unfashionable natural history fields be- comes ever greater as the planet continues to suffer from over- exploitation and gradual degradation of living and inanimate re- sources. Ecologists are as much needed for the future of our health as are medical doctors in research. Still there continues to be a curious apathy and lack of understanding among teachers and the [ 18 ] Museums live as they grow, presiding over the verities of history. Youngsters stage a performance with stringed marionettes they constructed in a Young Associate class on marionette making, offered in conjunction with the Belgium Today international symposium. Below. NMHT’s Division of Education served fifteen hundred senior citi- zens in its Senior Series this year. Age itself knows no limit to the joys of making and tasting the real thing: ice cream! public alike, even as there is a lack of comprehension of the crisis in resources for energy. We toy with the issues of oil as we fiddle with the fate of our environment. It seems to be our mode to sing like the cricket the song of today and now, ever unable to think of the morrow. Natural history museums should be in the vanguard of support in ecological research for they contain many of the keys for understanding our future dilemmas. We continue to hope that the tide of fashion in biological and geological training will turn again to natural history studies in order to furnish recruits for these underestimated fields. Training of our employees in the increasingly important and complex area of personnel matters has been intensified and broad- ened. Over the past year some one hundred supervisors and mana- gers have taken a two-week course in personnel management and the development of supervisory skills. Altogether 275 persons with equal employment opportunity and affirmative action responsi- bilities took a two-day course to increase their knowledge and strengthen their ability to undertake such programs. We can only hope the intricacies of meeting the newly legislated requirements attendant on having a government-supported or appropriated bud- get will keep pace with the social achievements and benefits that we desire for all Americans. Many universities are at considerable financial disadvantage these days keeping the management super- vision in order associated with federal or state support. Increasing oversight and administrative burdens are contemporary phenom- ena, often hard to associate with the work of education or the carrying forth of research. Time alone will tell us perhaps of the effectiveness of such proliferation of regulatory procedures, requir- ing expenditure of vast sums for the recovery of overhead costs. This year, as in the past, we have witnessed a number of signifi- cant personnel changes in our senior staff. In January Michael Collins left the Institution’s Under Secretaryship to pursue a career in private industry, but we were fortunate to find Phillip S. Hughes, long a friend of the Smithsonian, available to step in as our new Under Secretary. After more than twenty dedicated years of work at the Institution, Dorothy Rosenberg retired from service as my executive assistant, but only after we were able to present her with the richly deserved Secretary’s Medal for Exceptional Service. Other retirements included Ted Rivinus from the director- [ 20 ] ship of the Smithsonian Institution Press and Ann Campbell from the directorship of the Management Analysis Office. Also off to other fields for their efforts were Laverne Love, Women’s Program Coordinator, and Jake Page, columnist for Smithsonian magazine and founding director of Smithsonian Exposition Books. In each of the foregoing cases, as in so many others, we have lost a Smith- sonian coworker but retained a colleague in the vital cultural pur- suits of this nation. We were particularly pleased to welcome the original and re- sourceful volcanologist Dick Fiske as the new director of the Na- tional Museum of Natural History / Museum of Man. We were also fortunate, as mentioned, in recruiting Peggy Loar as director of the Smithsonian Institution Traveling Exhibition Service. Additionally, we were delighted to appoint Felix Lowe as director of the Smith- sonian Institution Press, Barbara Spraggins as director of the Special Events Office, and John Motheral as director of the Man- agement Analysis Office, all of whom had served in important capacities on the Smithsonian staff. At our Exposition Books office, Glen Ruh succeeds Jake Page. Don Moser and Joe Bonsignore have taken over from Edward K. Thompson as managing editor and act- ing publisher respectively of the magazine, while Ralph Backlund has become executive editor, with Anne Keating and Tom Black as associate publishers. And it should be noted that Jim Hobbins similarly advanced in my office to become executive assistant. Among the honors and awards received by members this year we should mention especially the recognition accorded to Steven Weinberg of the Smithsonian Astrophysical Observatory, member of the Smithsonian/Harvard Center for Astrophysics, named as a corecipient of the 1980 Nobel Prize for Physics. It seems impossible to keep for ourselves all of our staff, and this past year we were especially grieved by the untimely deaths of Jeanette Gladstone and William Grayson. They were both among the most universally appreciated staff—extremely personable, in- terested, interesting, and bedrocks of Smithsonian life. They will both live long and bright in the memories of those of us who are inspired to take up where they have left off. In the performance in vivis associated with the Institution we should give great credit to the presentation of the thirteenth Festival of American Folklife, held on the Mall from October third [ 21 ] On their first United States tour, the Royal Dancers and Musicians from the Kingdom of Bhutan (in the Himalayan Mountains north of India) performed in the Division of Performing Arts World Explorer Series at Baird Auditorium. through eighth, and the Fourth of July festivities celebrated, in the words of John Adams, with “shews, games, sports, guns, bells, bonfires, and illuminations.”” Other celebrations included the twentieth anniversary of the civil rights movement marked by a working conference and an exhibition as well as songs and music of the time. The production of records, music, and dance were on our agenda this past year, as well as a colloquium titled The Muses Flee Hitler, and a special ceremony participated in by other insti- tutions and museums across the country and graced by the pres- ence of the regal and dedicated King and Queen of the Belgians, Their Majesties, King Baudouin and Queen Fabiola. So the Institution flourishes with exhibits, sound, publications, and distinguished collaborators and visitors of every ilk, the most varied, delightful, and—to paraphrase P. T. Barnum—biggest and best show on earth! [ 22 ] Secretary Ripley presented the James Smithson Medal to Pope John Paul II during the pontiff’s historic visit to Washington and the Smithsonian in October 1979. The Smithson Medal is given to honor only the most outstanding achievements in art, science, education, or history. Below. King Baudouin and Queen Fabiola of Belgium view the Renwick Gallery exhibition of Traditional Marionettes in French Belgium Today. The Renwick typically shows special exhibitions on design and crafts. — 7 § pad tee vy om an The Renwick Gallery exhibition Georg Jensen Silversmithy: 77 Artists, 75 Years was viewed appreciatively by Mrs. Otto Borch, wife of the Danish ambassador, and Georg Jensen executives. Below. Twelve masterpieces of Chinese calligraphy were acquired by the Freer Gallery of Art through Smithsonian Collections Acquisition funds. At the opening of the exhibition at the Freer Gallery were Chai Zemin, ambas- sador of the People’s Republic of China (left), shown with Chang Wenying, first secretary of the Culture Department. _ Board of Regents THE BOARD OF REGENTS held three formal meetings during the last year as well as a number of additional meetings of the Executive Committee, the Investment Policy Committee, the Personnel Com- mittee, and the Audit and Review Committee. The board’s first meeting of the year, on January 28, 1980, opened in the Regents’ Room with a tribute to the late Regent John Nicholas Brown, who died October 9, 1979. A memorial was prepared in fine calligraphy for presentation to Mrs. Brown. To fill the vacancies on the board occasioned by Mr. Brown’s untimely death and the resignation of Regent Thomas J. Watson, Jr., to be- come Ambassador to the Soviet Union, the Regents entertained the recommendations of their search committee and voted to nomi- nate William G. Bowen and Carlisle H. Humelsine for statutory terms of six years each. These appointments were confirmed by joint resolutions of the Congress and signed into law by the president on March 13, 1980. The Regents’ Personnel Committee reported that no conflicts of interest were apparent in the confidential financial interests state- ments of the senior staff of the Institution. In addition, the Audit and Review Committee reported on its first meeting of the year which had consisted of an overview of the Smithsonian’s organiza- tion, programs, funding, and staffing; a description of the inde- pendent auditing of trust funds, conducted this year by Coopers and Lybrand; and an outline of the work of the Institution’s in- ternal auditor. The Treasurer provided an analysis of fiscal year 1979 results in the Institution’s trust funds and reported the receipt of fiscal year 1980 federal appropriations. The financial reports included details on the allowance of the Office of Management and Budget and on the new programs highlighted in the fiscal year 1981 consolidated budget being submitted to Congress. In keeping with their bylaws, the Regents delegated certain authorities to the Secretary for the acceptance and transfer of specific kinds of gifts, grants, and be- guests. The Investment Policy Committee reported that the Insti- 25] tution’s investment managers had outperformed market averages over fifteen months prior to September 30, 1979. The Regents ap- proved the Five-Year Prospectus (fiscal years 1981-1985) which had been updated to reflect the Regents’ decisions on the fiscal year 1980 nonappropriated funds budget, allocation of the fiscal year 1980 federal budget, and fiscal year 1981 federal budget allowances from the Office of Management and Budget. New exhibition pro- grams, equipment costs for the Museum Support Center, and plan- ning funds for the Quadrangle project were highlighted. The Secretary reported that the architectural/engineering firm of Shepley Bulfinch Richardson and Abbott had been selected to con- tinue detailed planning to supplement Junzo Yoshimura’s original concepts of the Quadrangle development. Mr. Ripley outlined plan- ning expected to be accomplished with trust funds this year and summarized fund-raising efforts underway. The Regents appointed five additional members to the Museum of African Art Commission: Messrs. Richard Long, Beverly Carter, Roy Sieber, Walter E. Washington, and Mrs. Katherine White. The Regents also approved the actions of the commissions of the Na- tional Collection of Fine Arts and the National Portrait Gallery and appointed the Honorable Robert B. Morgan and Mr. Thomas Mel- lon Evans to the latter commission. The Secretary was authorized to renew negotiations with the Boston Athenaeum for the purchase of the Gilbert Stuart portraits of George and Martha Washington. Subsequent to the meeting the chairman of the Executive Com- mittee approved an agreement by which the Smithsonian would pay $2,750,000, the Museum of Fine Arts, Boston, would pay $2,125,000, and the Boston Athenaeum would lower the purchase price to $4,875,000; the Smithsonian and the Museum of Fine Arts would be equal partners in ownership and would exhibit the por- traits for equal time, alternating every three years; and the Smith- sonian, after consultation, would have final authority and respon- sibility for conservation. The Regents voted to present the Henry Medal to Gordon N. Ray for his distinguished leadership of the Smithsonian Council since 1970. The medal was presented on behalf of the Regents by the Secretary at the Regents’ Dinner May 4, 1980, where Dr. Ray spoke briefly about the history and significance of the council since its founding. [ 26 ] The Secretary presented a report of the work in popular book _ publishing accomplished by Smithsonian Exposition Books and the _ Regents approved the publication of Every Four Years ... The _ American Presidency. The Secretary also discussed the status of the Museum Support Center, the Mall Parking Study, and the Equal Opportunity Program, which subject, together with the future of the Belmont Conference Center property, was referred to the Audit and Review Committee for examination. Additional reports were received on the impact of the Panama Canal Treaty implementing legislation on the Smithsonian Tropical Research Institute; Civil Service reform; major construction projects; the status of the Smithsonian Science Information Exchange; litigation; legislation; the return of museum objects to the Hillwood Museum; the ap- pointment of Dr. Fiske as Director of the National Museum of Natural History / Museum of Man; the Smithsonian delegation’s trip to China. The Regents were also provided an updated report, “Survey of Smithsonian Institution Property.” At the second meeting of the Board of Regents, held in the Regents’ Room on May 5, 1980, the Executive Committee reported on its meeting of April 2 and made recommendations to the Re- gents on the agenda papers. Three Regents’ terms were scheduled to expire on August 30, 1980, and it was learned that Dr. Gell- Mann and Mr. Burden would be reappointed (the joint resolutions of the Congress were subsequently signed into law by the president on July 25, 1980) while Dr. Haskins would not seek reappointment. The Chancellor asked the Executive Committee to serve as the search committee to seek a replacement, and the Regents elected Mr. Humelsine to serve on the Executive Committee succeeding Dr. Haskins effective September 1, 1980. The Audit and Review Committee reported on its meetings of February 28 and May 3, 1980. The Committee’s agenda included a discussion with Coopers and Lybrand on their independent audit of trust funds for fiscal year 1979, and reviews of the Institution’s inventory of collections, the process of budgeting unrestricted trust funds, the status of the Belmont Conference Center, and the Smithsonian’s equal opportunity program. On the recommendation of the committee, it was voted “that the Board of Regents lends its full support to the Institution’s intensified efforts and en- courages and directs the management of the Institution to take all [ 27 ] possible steps to ensure equal opportunity within the Smith- soniaty .".\. The title of Regent Emeritus had been conferred on only one former Regent, the Honorable George H. Mahon, in January 1979. Upon the recommendation of the Executive Committee, the Re- gents voted to confer the title on twelve former Regents whose interests in and value to the Smithsonian and the Regents promise to continue: Dr. Jerome C. Hunsaker, 1949-1968; Dr. Crawford H. Greenewalt, 1956-1974; Honorable J. William Fulbright, 1959- 1974; Honorable Hugh Scott, 1967-1976; Honorable Thomas J. Watson, Jr., 1969-1979; Honorable Robert F. Goheen, 1972-1977; Honorable William E. Minshall, 1973-1975; Honorable Sidney R. Yates, 1975-1976; Honorable Frank E. Moss, 1975-1977; Honor- able Elford A. Cederberg, 1975-1978; Honorable Claiborne Pell, 1977-1978; Honorable Corinne C. Boggs, 1977-1978. The Treasurer reported on the status of appropriated and non- appropriated funds for fiscal year 1980, noting particularly govern- mentwide budget reductions and revised projections for the un- restricted trust funds. It was noted that the Office of Management and Budget reduced the Institution’s appropriation request for fiscal year 1981, then pending before Congress. The Investment Policy Committee reported on the performance of the investment mana- gers and considered favorably the possible funding of the Quad- rangle underground parking facility from funds to be transferred in future years to unrestricted endowment funds, as a self-liquidat- ing investment, albeit of modest return. The Regents discussed two recent legislative actions which de- parted from the tradition of reserving the use of the word “na- tional,” when applied to museums, to elements of the Smithsonian. Strategies were discussed for reaffirming the traditional use of “national” in the Smithsonian context. The Secretary reviewed refinements in the design of the Quad- rangle and noted that it has been generally well received by the National Capital Planning Commission. He added that an environ- mental impact statement and a revised report on program and space requirements are being prepared. Receiving a report on the status of fund-raising efforts, the Regents discussed a tentative financial plan which suggests as many as five sources of support: unrestricted nonappropriated trust funds netted from auxiliary [ 28 ] ~ . pais This unusual portrait, donated recently to the National Portrait Gallery by Paul Mellon, depicts the American financier and minister to the Netherlands (1853-57) August Belmont. Renowned as a sportsman as well as a man of business and diplo- macy, Belmont here has taken the reins and appears to be enjoying himself in a scene rendered by the Dutch artist Wouterus Verschuur in 1854. activities; future parking revenues; proceeds from the sale of Museum of African Art real estate; contributions through fund- raising efforts; and federal appropriations. The Secretary presented reports on the Museum Support Center, including the status of design, hearings, and the conclusion—after considerable study—to seek appropriations for an innovative three- tiered, self-supporting storage system. Progress was noted in the inventories of collections in the National Museum of Natural His- tory / National Museum of Man and the National Museum of His- tory and Technology. The board accepted the annual report for fiscal year 1979, re- appointed Mr. Andrew Oliver to the Commission of the National Portrait Gallery, and endorsed the Executive Committee’s and the Secretary’s recommendation to the president that General Andrew J. Goodpaster and Professor Theodore Ropp be appointed to the National Armed Forces Museum Advisory Board (which appoint- ments were made by President Carter on June 6, 1980). The Re- gents voted to award the Hodgkins Medal and Prize to Dr. Luigi Jacchia, physicist at the Smithsonian Astrophysical Observatory, “in recognition of his pioneering work in atmospheric physics which has led to an understanding of the earth’s upper atmosphere and its bearing on the welfare of man.” The Regents received reports on the special Collections Acquisi- tion Program begun by the Regents with nonappropriated trust funds in January 1978. Attention was drawn to the acquisitions under this program, the funds generated by provisions for match- ing funds, and the condition of the present acquisition funds. Ad- ditional status reports were prepared on popular book publishing, the Mall parking study, construction projects, litigation, legislation, and the Smithsonian Science Information Exchange. At the Regents’ Dinner, held Sunday evening, May 4, in the courtyard of the Fine Arts and Portrait Gallery Building, the Re- gents were treated to a glimpse of the newly arrived Gilbert Stuart portraits of George and Martha Washington. On behalf of the Regents, the Chancellor presented to Mrs. Ripley a necklace with a pendant of polished smithsonite mounted on a Smithsonian sun- burst medallion, and a citation which read in part: “The Regents of the Smithsonian Institution note with admiration the many con- tributions with which Mary Livingston Ripley has advanced the [ 30 ] purposes of the Institution as well as the scientific activities of her husband, the Eighth Secretary. . . .” Her many contributions have covered the fields of voluntary organizations, the stimulation of horticulture at the Institution, and valuable collections of ento- mology and photographs from the field. The fall meeting of the Board of Regents was called to order in the Regents’ Room on September 22, 1980. The Executive Com- mittee reported on its August 19 meeting to which all Regents had been invited because of the importance of reviewing the fiscal year 1982 budget materials before their submission to the Office of Management and Budget. Acting on behalf of the Board of Regents, the Executive Com- mittee asked the congressional members of the board to introduce and support legislation to change the names of the National Col- lection of Fine Arts and the National Museum of History and Technology to the National Museum of American Art and the National Museum of American History respectively. Serving as a search committee to find a replacement for Dr. Haskins, the Execu- tive Committee recommended Mr. David C. Acheson to serve as the next Regent from the District of Columbia. The board voted to ask its congressional members to introduce legislation to that effect. Special note was taken of the extraordinary services which Dr. Haskins had rendered to the Smithsonian over the course of his four terms, or twenty-four years, not only as a Regent but as a most distinguished scientist. The Regents resolved to present to Dr. Haskins the Henry Medal in recognition of his manifold con- tributions to the Smithsonian. Knowing of his continuing interests in the work of the Smithsonian Tropical Research Institute, the Smithsonian Astrophysical Observatory, and the Department of Entomology in the National Museum of Natural History, the Re- gents also voted to confer the title of Regent Emeritus on Dr. Haskins. On the recommendation of the Executive Committee the bylaws of the Board of Regents were amended to include the category of Regent Emeritus for former Regents who accept responsibilities for continuing activities in the interests of the Smithsonian. The title is to be conferred by resolution of the board. The Treasurer’s financial report included status reports on fiscal year 1980 federally appropriated and nonappropriated funds and [ 31 ] on the fiscal year 1981 budget, reflecting actions taken by the Office of Management and Budget and the House of Representatives on the original request for appropriations. The Regents voted to ap- prove the revised budgets of appropriated and nonappropriated funds for fiscal year 1981 and authorized the Secretary to expend the funds accordingly. The board also approved the submission of the fiscal year 1982 budget to the Office of Management and Bud- get together with projections for fiscal year 1982 nonappropriated funds. The Investment Policy Committee presented an account of the total market value of the Smithsonian endowment funds and ob- served that during the last quarter the investment managers per- formed in line with or ahead of market averages. The Audit and Review Committee reported on its September 16 meeting in which the committee discussed progress on the current audit with Coopers and Lybrand, reviewed the Institution’s operations and controls in the auxiliary activities, and discussed the legal liabilities of the Regents with respect to their responsibilities. The Secretary noted that work continues on the design refine- ments and the environmental impact statements for the Quad- rangle, and he presented a schedule of hearings for the project before the several cognizant commissions in the coming year. There followed a synopsis of fund-raising activities to date in the Orient, the Middle East, and among United States corporations. The Re- gents voted to request the congressional members of the board to introduce and support legislation authorizing construction of the Quadrangle. Earlier it had been noted that the current procedures for the ac- quisition and disposition of works of art for the National Collec- tion of Fine Arts and the National Portrait Gallery were un- wieldly, and therefore the Regents voted to delegate such authority to the Secretary, consistent with the policies of the Board. The Regents also requested the commissions of the National Collection of Fine Arts and the National Portrait Gallery to submit revised bylaws to the Regents at the January 1981 meeting. At the sug- gestion of the Secretary, the Regents resolved to name the theater in the National Air and Space Museum in honor of Samuel Pier- pont Langley, the third Secretary of the Smithsonian, astro- physicist, and aeronautical pioneer. The Regents also voted to [ 32 ] authorize the Secretary to negotiate for the purchase of approxi- mately twenty acres adjacent to properties held at the Chesapeake Bay Center for Environmental Studies. The Secretary submitted a report on the status of the Museum Support Center on which construction is expected to begin in early 1981. The Secretary also reported on changes anticipated in the popular book publishing program following a thorough review by a special panel of Smithsonian Council members, outside pub- lishers, and Smithsonian staff. A new policy on the use of Smith- sonian facilities (Office Memorandum 724) was brought to the Regents’ attention, as was a report on Smithsonian arrangements for conducting research in foreign nations. The Secretary high- lighted the planned implementation of noncapital intensive rec- ommendations from the completed study for visitors’ access to the Mall museums. The Regents also received for comment a draft of the revised Five-year Prospectus for fiscal years 1982-86. Other reports furnished in advance concerned major construction proj- ects, the equal employment opportunity program, legislation, liti- gation, the Smithsonian Science Information Exchange, the Smith- sonian Tropical Research Institute, and the National Armed Forces Museum Advisory Board. The Regents’ Dinner was held at the Supreme Court on Sunday evening, September 21, 1980, at the invitation of the Chancellor and Mrs. Burger. The dinner was in honor of Dr. Haskins, who was presented the Henry Medal by the Chancellor. The Secretary presented the Hodgkins Medal and Prize to Dr. Jacchia of the Smithsonian Astrophysical Observatory. [ 33 ] SMITHSONIAN INSTITUTION OPERATING FUNDS Fiscal Years 1970, 1975, and 1978-1980 (In $1,000,000’s) (Gross Revenues) a) ov aS a al Qo. ° ia a. a. o & fe} Zz Trust Funds . 3 & xi wo ae ee = o-2 Oo Re et 5 Sex 0 4 Temtwy FUNDS PROVIDED 200 175 5 Net Trust Funds Unrestricted Restricted Federal Grants and Contracts Appropriations Federal sonegtge erates Setecece ‘eretere: Petetera 25050] Seteen KAAAL KS 5259 evetes 250509 ereter. 250509 550505 : 250509 ~—— 150529 q V9 ‘amu a) wy N 100 75 50 1979 1980 1978 L975 1970 To Plant and Endowment Administration and Facilities Services Auxiliary and Bureau Activities Expenses E Ww —& Ss +e ae i CO reels wo O oO Cine mR i = = ain i ore lee ete im je¥ > =] ep) ja ' ~ 200 \\ = \\ M cz Y) 1 : ' ; i mit i! : ! i . ! i i SS seeccesas Wy FUNDS APPLIED 175 150 125 100 7 fo, 50 Science 25 I 1 1979 1980 1975 1978 1970 Smithsonian Institution - 1980 FINANCIAL REPORT CHRISTIAN C. HOHENLOHE, TREASURER Summary: During fiscal year 1980 the Smithsonian received strong financial support from the Congress, from donors, from granting agencies, and from revenue-generating auxiliary activities. This mix of funding from public and private sources, from gifts and earned income, permitted notable progress and accomplishments in re- search, exhibits, publications, and public education. Growth in the overall budget of the Institution in fiscal year 1980 and prior years may be seen in the bar chart on the facing page which dis- plays the source and application by broad category of operating funds. In the context of unusually high inflation, however, this growth was mainly illusory; the larger part of the increased budget was necessarily devoted to keeping up with the higher costs of salaries and supplies, of utilities and collection purchases, with the balance limited to selected high-priority concerns of the Institution. The full-time staff of the Smithsonian grew less than 3 percent over the year, and the increase was almost exclusively in per- sonnel for administrative and facilities services, for auxiliary activ- ities, and for short-term research projects. In a time of difficulty for most cultural and research organiza- tions, the continued generous support of the Congress was greatly appreciated. The overall federal appropriations, which totaled over $144 million, provided core support for basic research, exhibition, and education programs; for acquisition, care, documentation, and study of the national collections; and for construction, mainte- nance, restoration, and protection of Smithsonian facilities. Be- yond offsetting the major portion of uncontrollable cost increases, appropriations for operating purposes gave significant new fund- ing for the Museum of African Art, for collections inventory [ 35 ] and management, and for administrative offices. The Museum Sup- port Center, for which $20.6 million of construction funding was appropriated, will be of immeasurable benefit to the Smithsonian in carrying out its responsibilities of caring for the national collections for future generations. Also of great importance were construction funds to allow forward progress on the facilities development for the National Zoological Park, as well as moneys for the less visible but necessary repairs and renovations of other Smithsonian buildings. Favorable public support for the Institution also continued, as evidenced by the success of the ongoing Smithsonian Associate programs and other educational auxiliary activities, as well as gifts and grants from individuals and foundations. These revenues allow the Institution to fund a significant portion of its programs from nonappropriated sources, extending the reach of the research and education activities beyond what is supported with federal appro- priations. Net revenues from nonappropriated sources, after de- duction of operating expenses and cost of sales of auxiliary activ- ities, increased slightly over last year. This was sufficient to continue ongoing programs such as the Regents Collections Ac- quisition, Scholarly Studies, and Educational Outreach programs, operating allotments to numerous bureaux, and reserves for con- struction and land acquisition. The major collection purchase of the year was, of course, the acquisition of the Gilbert Stuart portraits of George and Martha Washington. Increasing the endowment funds is a high priority of the Institution, in order to maintain the balance of appropriated and nonappropriated funds which has been a source of strength in meeting goals and seizing new op- portunities. The Regents, therefore, followed the practice of recent years and authorized transfer of some $2 million of unrestricted trust funds into endowment, as well as a further $650,000 of National Air and Space Museum current funds into a fellowship endowment. Measured progress continued this year in obtaining funds for the Quadrangle, the site of a future center for Eastern art as well as the new home for the Museum of African Art, south of the Smithsonian Castle; a gift of $1 million was received for the project from the government of Japan, and indications of further gifts from other sources were favorable. The Quadrangle will be com- [ 36 ] TaBLe 1. Financial Summary (In $1,000’s) FY 1978 FY 1979 FY 1980 4 . INSTITUTIONAL OPERATING FUNDS FUNDS PROVIDED: Federal Appropriations—Salaries & Expenses ...... $ 93,393 $ 98,202 $107,764 Federal Agency Grants & Contracts .............. 11,157 11,412 12,947 Nonappropriated Trust Funds: Seereeerricted Fiurnoses 6.5 se sec ce ew ee 6,538 4,577 5,339 For Unrestricted & Special Purposes: Auxiliary & Bureau Activities Revenues—Gross 55,189 67,360 75,150 Bens erated EXPelNSeS .. 2. ca c.c cin cee dens __ (43,070) (57,557) (65,933) Auxiliary & Bureau Activities Net Revenue .... 12,119 9,803 9,217 Investment, Gift, and Other Income .......... 2,241 3,394 3,825 Total Net Unrest. & Special Purpose Revenue .. 14,360 13,197 13,042 Total Nonappropriated Trust Funds*—Gross .... 63,968 75,331 84,314 —Net ...... 20,898 17,774 18,381 Total Operating Funds Provided—Gross .......... 168,518 184,945 205,025 | Net... - 5... eee. $125,448 = $127,388 = $139,092 FUNDS APPLIED: ey vin gen vee ea wig aon vam ec es $ 50,396 $53,002 $57,907 Less SAO Overhead Recovery .................. (1,841) (1,850) (2,196) TS , aiion cage a da wow’ 19,105 20,245 26,224 2s 32 SERS LGE Og Ae a ec 2,799 2,927 3,129 EE ee ee 7,454 8,003 8,974 EMME as, woe Sin cnn es ce ewe ese 1,981 2,692 3,204 Associates and Business Management ............ 244 304 345 Wwamunistration—Federal** ...........0.00seccaes 6,346 7,071 8,048 —Nonappropriated Trust Funds ............... 3,795 4,134 4,937 Less Smithsonian Overhead Recovery ...... (3,359) (4,038) (4,379) EMERGES oc, oe ee eee ee eee ce wel 25,985 27,790 30,630 Total Operating Funds Applied .................. 112,905 120,280 136,823 Transfers (Nonappropriated Trust Funds) Wnrestricted Funds—To Plant ................. 869 1,857 1,342 —VOUETOOWBICNES 6.0/6 6 ns on 5s 3,271 2,671 2,031 Restricted Funds—To Endowments ............. 1,261 413 757 Total Operating Funds Applied & Transferred Out $118,306 $125,221 $140,953 CHANGES IN NONAPPROPRIATED TRUST FUND BALANCES: Restricted Purpose (Incl. Fed. Agency Gr. & Cont.) $ 980 Sir, 128 $ (225) Unrestricted—General Purpose .................. 850 33 36 ECE ARE MOOSE’ 21 i ..ce ee xis vs sees 5,312 1,963 (1,672) as Ss ele dixie cJo oe kao ep els cea aah $ 7,142 $ 2,167 $ (1,861) YEAR-END BALANCES— ai NONAPPROPRIATED TRUST FUNDS: SE MCRRISE? ots kw cian os i vc ne ena eceeeee $ 4,540 $ 4,900 $ 4,675 Unrestricted—General Purpose .................. 4,932 4,965 5,001 P-spreml Purpose <2 0.2.2 6. eset awe 9,604 11,567 9,895 ess och ives ois dle a hiv osha ne ayxlabonie © «mgs $ 19,076 $ 21,432 $ 19,571 OTHER FEDERAL APPROPRIATIONS Smithsonian Science Information Exchange ....... $ 1,857 $ 2,063 $ — Special Foreign Currency Program ..............-. 4,000 3,700 4,200 ERS CWS ee 5,250 __ 6,575 __ 32,100 Total Federal Appropriations (Incl. S&E above) .. $104,500 $110,540 $144,064 * Figures do not include gifts and other income directly to Plant and Endowment Funds: FY 1978—$185,000; FY 1979-—$96,000; FY 1980—$1,211,000. ** Includes unobligated funds returned to Treasury: FY 1978—$112,000; FY 1979—$47,000; FY 1980—$267,000. pleted only with strong financial support from private contribu- tions, self-generated funds from auxiliary activities, and appro- priated funds; efforts to secure this support will continue in earnest. Operating Funds —Sources and Application The growth in past years of the Institution’s overall operating budget has continued in fiscal year 1980, as may be seen in both Table 1 and the bar chart at the head of this section. Total gross operating funds grew from $184,945,000 in fiscal year 1979, to $205,025,000 in fiscal year 1980, an increase of $20,080,000, or 11 percent. Federal appropriations constitute 53 percent of total gross operating funds provided, federal agency grants and contracts 6 percent, and nonappropriated funds 41 percent, the same ratios as last year. After deducting the expenses of the nonappropriated fund auxil- iary and bureau activities, the growth in net operating funds was 9 percent over fiscal year 1979. This increase in net funds of $11,704,000 was primarily in federal appropriations ($9,562,000) and federal agency grants and contracts ($1,535,000). Net op- erating funds, supporting the wide range of Smithsonian programs and activities, are derived 78 percent from federal appropriations, 9 percent from federal agency grants and contracts, and 13 per- cent from nonappropriated sources. Application of these moneys by all Smithsonian bureaux is set forth in Table 2, with further supporting detail in other tables. FEDERAL APPROPRIATION Federal funds totaling $107,764,000, an increase of approximately $9.6 million over fiscal year 1979, were provided to the Institution for operating purposes. As in the past several years, a major por- tion of this increase was directed to generally uncontrollable items. Inflation in the areas of salaries and utilities accounted for some $6.9 million of the increase, while an additional $500,000 was re- quired to fund the first full year of operating costs for the Museum of African Art. The balance of $2.2 million was applied to a variety of program requirements. Collections management, a high priority [ 38 ] of the Institution, received additional funding of over $1 million to support collections inventory, storage, and conservation in bu- reaux throughout the Institution, furthering efforts to gain more effective inventory control over the collections and to conserve the valuable objects and specimens. A second area of emphasis was the strengthening of administrative capabilities, particularly in the areas of facilities planning and personnel management. In the first instance the growth reflected increased focus by the Institution on maintaining and preserving its physical plant, while in the latter, the growth was needed to meet new requirements created by both the Civil Service Reform Act of 1978 and the Panama Canal Treaty. Implementation of this treaty also necessitated major new funding for the Tropical Research Institute for personnel benefits and secu- rity needs. Finally, increased support was provided for exhibit pro- tection and various other priorities of the Institution. For seven months of fiscal year 1980 the Institution was subject to a hiring limitation imposed by the president of the United States; resultant savings in personnel costs and cuts in other expenses were applied towards a $550,000 deficit in utilities funding created by price increases that were beyond the Institution’s control. FEDERAL AGENCY GRANTS AND CONTRACTS A major source of support, particularly for the Institution’s re- search activities, is federal agency grants and contracts (including subcontracts from organizations receiving federal prime funding). The funding agencies for the awards, which in fiscal year 1980 ac- counted for 9 percent of net operating revenue, or approximately $13 million, are summarized in Table 3. As may be seen from this table, the majority of these funds was from the National Aero- nautics and Space Administration (NAsA), primarily for the Smith- sonian Astrophysical Observatory (sao) which, as in past years, received substantially more grant support than other Smithsonian bureaux. NASA grants supported important space science projects in high-energy astrophysics and radio/geoastronomy, including preparation of instruments for the Space Shuttle program. sao also received significant funding from the National Science Foundation and the Department of Defense, as did the National Museum of Natural History for operations of the Oceanographic Sorting Cen- ter and for continuation of the Medical Entomology Project. Other [ 39 ] Taste 2. Source and Application of Operating Funds Year Ended September 30, 1980 (Excludes Special Foreign Currency Funds, Plant Funds, and Endowments) (In $1,000’s) Nonfederal Funds Unrestricted Restricted Total Aux- Spe- Grants Fed- non- iliary cial and eral federal Gen- activ- pur- Gen- con- Funds funds funds eral ities pose eral tracts FUND BALANCES 10/1/79 .. $ — $ 21,432 $4,965 $ — $11,567 $ 4,864 $ 36 FUNDS PROVIDED Federal Appropriations ..... 107,764 a a a= — — — Investment Income ......... — 5,249 2,470 — 430 2,349 a Grants and Cantracis ....-.- —— | e947 — — — — 12,947 Gifts... 4 eR eS — 3,226 14 898 sf 2,257 — Sales and Reuene «ih y: == 74252 — 72,203 2,049 — — Crier clas Co ae aero — 1,587 140 — 714 733 — Total Provided. .:....- 107,764 97,261 2,624 73,101 3,250 5.439 0e2eee Total Avaslaple .....- $107,764 $118,693 $7,589 $73,101 $14,817 $10,203 $12,983 FUNDS APPLIED OO Science: Assistant Secretary ......... Sev 3Oby Sw | 246e$c) 78S hes 1 $ .\ 94cG0 eae Natl. Mus. of Nat. History .. 14,657 2,351 78 — 624 479 1,170 Astrophysical Observatory 5,025 13,409 2,217 — 433 123 10,636 Less Overhead Recovery .. — (2,196) (2,196) — — — — Tropical Research Inst. ..... PAS y | 255 54 e 158 50 — Radiation Biology Lab. ...... 1837 208 = — 89 22 97 Natl. Air & Space Museum .. 5,597 1,615 19 — 1,274 251 7k Chesapeake Bay Center ..... 744 SEe 5. Bale — 106 112 232 Natl. Zoological Paice. ieee SB 5oZit: 310 38 — £52 24 96 Center for Study of Man ... 575 33 Z a a 11 20 Fort Pierce: Bageatt las ace ann —— 366 — — oa 366 — Potal Serence vss) fos SOL. 17,284 427 oo 2,830 1532: 12 AG8 History and Art: Assistant Secretary ......... 317 96 77 a= 12 fi 6 Natl. Mus. of Hist. & Tech. .. Pe 735 148 — 221 366 — Natl. Coll. of Fine. Arts....-.. 3,371 1,241 53 — 953 230 5 Natl. Portrait Gallery ....... 2,442 2,953 31 — 2,781 139 = Hirshhorn Museum ......... 2,200 209 23 — 49 137 — Freer Gallery of Art ........ 656 1,427 10 — 367 ~+=1,050 — Archives of American Art ... 5a 471 1 — 6 464 —_ Cooper-Hewitt Museum ..... 629 1,502 329 — 636 482 55 Museum of African Art ..... 543 366 7.) eRe 35 Total History and Art.. 17,856 9,000 679 — 5285 3,003 103 Public Service: Assistant Secretary ......... 246 299 262 — 36 1 — Reception Center. 0.20 .o7. 16 315 314 -— 1 —- — Anacostia Museum .......... 567 40 22 ae 17 1 — Intl. Exchange Service ....... 323 a= —- -- — — — Pertoranune Arts 503 os cs kis 331 3,667 2° 6a 96 — 29 Smithsonian Press. <2. 20o.0 6 si 819 1,906 — 1,879 2 25 — Exposition Books ............ — 4,041 = eed — — = Total Public Service . 2,302 10,268 619 9 A41 52 fof 29 TABLE 2. Source and Application of Operating Funds—continued ~ Year Ended September 30, 1980 (Excludes Special Foreign Currency Funds, Plant Funds, and Endowments) (In $1,000’s) __ Nonfederal Funds Unrestricted Restricted Total Aux- Spe- Grants Fed- —_ non- iliary cial and eral federal Gen- activ- pur- Gen- con- Funds funds funds eral ities pose eral tracts Museum Programs: Assistant Secretary .......... 2,351 249 21 —- 95 79 54 0 8 115 — — — — — — Conserv. Analytical Lab. ..... 654 - — — — — — 0 Maik 2,730 266 214 — — 52 — MEET ee ke ees 1,259 5 a — 5 — — Traveling Exhib. Service ..... 161 1,091 — 1,027 30 9 25 0 ee 367 43 42 A 5 — a National Museum Act ....... 794 — — — — — — Total Museum Programs 8431 1,654 AG?) LOT 131 140 79 Special Programs: Am. Studies & Folklife Pgm. .. 447 561 405 — 54 — 102 Intl. Environmental Pgm. ..... 408 — — — — — — Academic & Educational Pgm. 478 758 131 —- 586 38 3 Collections Mgt./Inventory ... 543 _ ao — — — — Total Special Programs . 1,876 1,319 536 -— 640 38 105 Associate Programs .......... — 39,038 282 38,677 23 15 41 Business Management ....... — 14,616 — 14,616 — — — DOROUIGETAIWON .............. 7,781 5,296 4,716 359 90 101 30 Less Overhead Recovery .... — (4,379) (4,379) — — —_ — Facilities Services ............ 29,734 896 803 — 93 _- — Transfers Out/(In): ee eee AGT _ = — — — = Coll. Acg., Schol. St., Outrch. — — 2,000 — (2,000) — — Liability Reserves ........... — = 700 — (700) — _ Net Auxiliary Activities ...... — — (8,600) 8,600 — —— — Other Designated Purposes ... - — 1,226 381 (1,623) 16 —- ee — 1,342 1,281 —_— 61 — — ae _— _ 2,788 — 2,021 az 10 757 -- Geral bransfers .......: 267 4,130 (1,372) 8,981 (4,252) 773 — Total Funds Applied ... $107,764 $99,122 $ 2,588 $73,101 $ 4,922 $ 5,629 $12,882 FUND BALANCES 9/30/80 .. $ —O- $19,571 $ 5,001 $ —0- $ 9,895 $ 4,574 $ 101 * Unobligated funds returned to Treasury. Taste 3. Grants and Contracts—Expenditures (In $1,000’s) Federal Agencies FY 1978 FY 1979 FY 1980 Departmentiet Defense 6.05.5 oe sw es bardaen $ 968 $ 1,079 $ 1,078 DRG PPPOE HIE; ECR se oan 6 nce ta aint cla 266 304 340 Department of Health and Human Services. 311 288 280 Department of Mnterion) 34.0 Oda 0 ode eis 4 65 197 Environmental Protection Agency ......... 422 31 a National Aeronautics and Space Administration* .:4636.. [2e b Ooo 7,858 8,919 9,832 National Endowments for the Arts and PREIS sR ss CS ee Se en te 226 105 118 National Science Foundation** ........... 400 385 651 RSPEI oo ark PAS sie) Scien a cee cuca eee ee ae 632 314 386 etal | eos. ee cee ee anes $11,087 $11,490 $12,882 * Includes $534,000 (FY 1978), $583,000 (FY 1979), and $554,000 (FY 1980) in subcon- tracts from other organizations receiving prime contract funding from NASA. ** Includes $137,000 (FY 1980) in NSF subcontracts from the Chesapeake Research Consortium. Smithsonian units receiving research support included the Chesa- peake Bay Center for Environmental Studies, the Radiation Biology Laboratory, the National Zoological Park, and the Office of Folk- life Programs. NONAPPROPRIATED TRUST FUNDS The Institution received a wide range of funding from nonfederal sources for a variety of purposes. These nonappropriated trust fund revenues totaled $84,314,000 in the aggregate in fiscal year 1980, an increase of almost $9 million, or 12 percent over fiscal year 1979. After excluding the auxiliary and bureau activity costs which are necessary to generate a portion of these revenues, the net income available for program purposes was $18,381,000, a modest increase of 3 percent of net operating funds which, as may be seen in Tables 2, 4, and 5, supported programs throughout the Institution. Restricted funds may be used only for the purposes specified by the donor or funding source. Total restricted fund revenues for the year were $5,339,000, consisting of $2,257,000 from gifts and [ 42 ] Taste 4. Restricted Operating Trust Funds* Fiscal Years 1978-1980 (In $1,000’s) Item _ao7e—lotal ......... a 49079—Tlotal ......... FY 1980: Museum of Natural History ....... Astrophysical Observatory .......... Tropical Research en National Air and Space Museum ....... Chesapeake Bay Center .. Fort Pierce Bureau ...... Sater SCIENCE .......... Museum of History and Technology ...... National Collection me Fine Arts ......... National Portrait Gallery . Hirshhorn Museum ..... Freer Gallery of Art ..... Archives of memericam Art ........ Cooper-Hewitt Museum.. Museum of African Art .. Traveling Exhibition Ee oe Total FY 1980 .... Net Fund Trans- __in- bal- Total fers crease ance Invest- rev- Deduc- in (de- end of ment Gifts Misc. enue tions (out) crease) year $2,022 $3,478 $1,038 $6,538 $4,367 $(1,261) $ 910 $4,428 $154 $ 327 $ 2 $ 483 $ 479 $ — $ 4 $ 467 48 38 (6) 80 123 18 (25) ¥1 17 45 = 62 50 — 12 56 108 5 3 116 251 (667) (802) 147 12 200 pad 112 — 100 105 664 — = 664 366 — 298 441 157 149 1 307 151 (101) 55 353 48 290 (4) 334 366 — (32) 332 42 63 a 105 230 oo (125) 55 34 179 3 216 139 — 77 409 50 75 = 125 137 — (12) 500 818 26 487 1,331 1,050 was 281 633 26 117 249 392 464 as (72) 268 49 361 7 417 482 == (65) 256 11 21 I 33 134 ei (101) 73 4 150 a 154 9 a 145 149 107 211 (10) 308 313 (23) (28) 319 * Does not include Federal Agency Grants and Contracts. [ 43 ] grants, $2,349,000 from investment income, and $733,000 from other sources including fundraising events of the Archives of American Art and the museum shop of the Freer Gallery of Art. Endowment income, as outlined more fully below, provides major operating support for the Freer and for oceanographic research con- ducted at the Fort Pierce Bureau, as well as for a wide range of other research and educational projects throughout the Institution. Major gifts were received during the year for exhibitions of the Cooper-Hewitt Museum, the National Museum of History and Technology, the National Portrait Gallery, and the Smithsonian In- stitution Traveling Exhibition Service; for collections acquisition at the National Museum of Natural History and the Hirshhorn Museum and Sculpture Garden; for documentation of the Cata- logue of American Portraits at the National Portrait Gallery; and for a long-term watershed monitoring project at the Chesapeake Bay Center for Environmental Studies. A transfer of $650,000 of funds available for the general support of the National Air and Space Museum was made to endowment funds, in order to ensure permanent funding of the Lindbergh Chair of Aerospace History. Unrestricted Special Purpose funds consist of revenues generated by bureau activities, such as the National Air and Space Museum film theater and the Cooper-Hewitt Museum membership program; interest earned on investment of bureau fund balances; revenue- sharing with bureaux housing centrally managed shop and con- cession activities; and allocations of funds for the Collections Ac- quisition, Scholarly Studies, and Educational Outreach programs ($2 million per year), fellowship awards ($822,000) and a number of other designated purposes. The Collections Acquisition Program this year permitted a joint purchase by the National Portrait Gallery and the Museum of Fine Arts, Boston, of the pair of Gilbert Stuart portraits of George and Martha Washington; exhibit of these paintings will alternate between the two museums for three-year periods. Unrestricted General Purpose funds are moneys, primarily gen- erated from auxiliary activities, that are available for general pur- poses of the Institution. Net general unrestricted funds, after ex- penses of auxiliary activities, totaled $11,605,000 (see Table 6), approximately the same level as in fiscal year 1979. Financial activity of the auxiliary activities that accounted for most of this [ 44 ] TABLE 5. Unrestricted Special Purpose Funds Fiscal Years 1978-1980 (In $1,000’s) Revenue Deductions Bu- Gifts reau Net Fund yg Bu- and Trans- Pro-_ activ- in- bal- a reau other Total fers gram ity crease ance J Invest- activ- rev- ——- rev- in/ ex- ex- (de- end of Y Item ment _ ities enue enue (out) pense pense crease) year a $175 $1,327 $ 506 $2,008 $5,450 $1,284 $ 862 $5,312 $ 9,604 ’ SSS SSS Ss SS ———— SSS PSS SSS FSS SSS Meeao79....-...- $254 $2,039 $ 661 $2,954 $3,707 $3,262 $1,436 $ 1,963 $11,567 | FY 1980: useum of | Natural History $42 $ 1 $ 41 $ 84 $ 460 $ 623 $ 1 $ (80) $ 266 | Astrophysical | Observatory ... 5 rs 92 104 339 431 fs 10 330 | Tropical Research . Pastitute ..... — 12 4 16 113 127 24 (22) 68 National Air and , Space Museum. 195 pg 16 1,388 147 226 1,048 261 2,443 | Chesapeake Bay eee a 22 4 26 30 91 15 (50) 14 _ National | Zoological Park 74 — 215 289 49 152 — 186 999 MeOther Science ... 19 — 5 24 115 90 — 49 97 i Museum of _ History and _ Technology ... 35 3 32 70 140 219 2 (11) 445 _ National Collection of a Fine Arts ..... 7 5 43 55 906 947 6 8 117 _ National Portrait Gallery 1 4 2 7 1,025 - 2,780 tx)» (1,749) 23 _ Hirshhorn = Museum ...... 10 on 9 19 12 49 as (18) 123 _ Freer Gallery a — —_ 1 1 375 367 — 9 28 _ Cooper-Hewitt _ Museum ...... 2 564 76 642 16 211 425 22 24 _ Museum of miriam Art ... — 199 12 211 28 (8) 198 49 50 Liability Reserves — — — — 700 — — 700 3,100 - Unallocated Coll. Acq., Schol. St., and Outrch. ... — — — (1,134) — — (1,134) 502 Fellowships ..... — = — — 600 533 — 67 407 Meeericr = .......... 40 55 219 314 331 523 91 31 —Ss«i859 FY 1980 Total $430 $2,049 $ 771 $3,250 $4,252 $7,361 $1,813 $@, 672) $ 9B92 [ 45 ] Taste 6. Unrestricted Trust Funds—General and Auxiliary Activities Fiscal Years 1978-1980 (In $1,000’s) Item FY 1978 FY 1979 FY 1980 FUNDS PROVIDED General Income: Pivestments Gi See ee ae $ 1,400 $ 2,276 $ 2,470 RSabts ees eee ose baci. SANE ee ie a ene 163 14 Miscelinmeous is). are eee. ae 48 40 140 total General Income: 263.55 nos. de 1,560 2,479 2,624 Auxiliary Activities Income (Net): PUSS ARCS oh hn auth week cern seein eee aes 7,656 6,429 6,113 Business Management —Maseum Shops 253 0.iic oben x en ace 738 287 1,022 —Concessions and Parking ........ 1,567 1,641 1,938 Jian a a. Se) ae ae eae (169) (245) (191) Pectoromrie: (Arts. '2 3 oa) oe ee ee 253 177 (75) Gorinsoniat@ Press v0. fn as eae eee (199) 292 252 Exposition; Bo@les tio s00s Ofek 2,105 1,036 305 Traveling Exdititions * 25,2... 2.5.06 68 a (112) (142) (268) PROG) SETVIEeS). 65 cieiccs chats ais eta (185) (275) (115) Total Auxiliary Activities ......... 11,654 9,200 8,981 Total Funds Provided (Net) ...... 13,214 11,679 11,605 EXPENDITURES AND TRANSFERS Administrative and Program Expense .... 7,974 9,231 10,535 Less Administrative Recovery ........... 5,200 5,888 6,575 Net EXPense® Jia xete se copes ke ao aoe 2,774 3,343 3,960 Less Transfers: To Special Purpose for Program Purposes .............. 5,700 3,879 4,307 To Plant fangs. scolds dao mee 869 1,853 1,281 To. Endowment Funds® 222. 02. 234s. 224 3,021 2,571 2,021 NET ADDITION TO FUND BALANCE .. 850 33 36 ENDING FUND BALANCE ...... 2.32302 $ 4,932 $ 4,965 $ 5,001 income may be seen in Table 7. Total gross revenues of the activ- ities increased almost $8 million, or 12 percent. Since operating ex- penses rose in the same amount, driven by inflationary cost pres- sures, overall net income after expenses was relatively constant over the two years—roughly $9 million. Some two-thirds of this auxiliary activity net income came from the Associate programs, [ 46 ] Taste 7. Auxiliary Activities Fiscal Years 1978-1980 (In $1,000’s) Sales Less Net and cost reve- other of Gross Ex- nue*** Activity revenue Gifts sales revenue penses_ (loss) Ee $53,420 $442 $23,536 $30,326 $18,672 $11,654 ee $64,846 $475 $31,884 $33,437 $24,237 $ 9,200 FY 1980: + So ale Oath $43,892 $898 $30,686 $14,104 $ 7,991 $ 6,113 Business Management: —Museum Shops* ..... 14,588 —_— 7273 7,315 6,293 1,022 —Concessions/Parking . 2,427 — — 2,427 489 1,938 8 370 a= = 370 561 (191) Performing Arts ........ 3,446 — 1,063 2,383 2,458 (75) Smithsonian Press ....... 2,131 — 1,003 1,128 876 252 Exposition Books ........ 4,346 — 1,492 2,854 2,549 305 Traveling Exhibitions .... 759 a _ 759 1,027 (268) Photo Services (Administration) ...... 244 — 52 192 307 (115) Total FY 1980 ..... $72,203 $898 $41,569 $31,532 $22,551 $ 8,981 * Includes Museum Shops, Mail Order. ** Includes Business Management Office, Belmont. *** Before revenue-sharing transfers to participating Smithsonian bureaux of $390,000 (FY 1978) ; $397,000 (FY 1979); and $381,000 (FY 1980). generated largely by the Smithsonian magazine which has main- tained its large number of enthusiastic readers. Also contributing sizable surpluses for other needs of the Institution were the Mu- seum Shop and Mail Order divisions, owing to unexpectedly strong sales from three mail order catalogues, and the concessions/ parking revenues, which benefitted from the popularity of the In- stitution’s museums. Publications of both the Smithsonian Institu- tion Press and Smithsonian Exposition Books sold well during the year, largely through mail order, and the combined surplus of these programs exceeded $550,000. The unusually high level of interest rates during fiscal year 1980 as well as prior year additions to en- dowment funds resulted in investment income of $2,470,000 last year, some $200,000 higher than the prior year. These funds enabled the Institution to continue programmatic and administrative support to a large number of bureaux, partic- [ 47 ] ularly the Cooper-Hewitt Museum, the Office of Folklife Programs, the Visitor Information and Associates’ Reception Center, and the Office of Telecommunications. Transfers to Special Purpose funds were made to continue the Collections Acquisition, Scholarly Stud- ies, and Educational Outreach programs ($2 million), Fluid Re- search awards which meet small equipment, travel, and research needs of Smithsonian professional staff ($200,000), and the Smith- sonian Fellowship Program, at an increased level of stipend sup- port to pre- and postdoctoral fellows ($822,000). As in past years, an addition of some $2 million to the Institu- tion’s Unrestricted Endowment Funds was made at year-end, in order to ensure continuation in the future of projects supported from current revenues. As described below, transfers were also made to support construction projects, primarily the Quadrangle and the Sensory Garden. The Quadrangle also received $40,000 this year from contributions of the Smithson Society of the Asso- ciates, which is expected to provide further support to the project in the future. Other Operating Programs A separate appropriation of $4.2 million was received for the Smithsonian Special Foreign Currency Program in blocked foreign currencies accumulated from sales of surplus agricultural com- modities under Public Law 83-480. Of this amount, $3.7 million (the same amount as in fiscal year 1979) was to continue a pro- gram of research grants to United States institutions in Egypt, India, Pakistan, and Burma in the disciplines of archaeology, sys- tematic and environmental biology, astrophysics and earth sciences, and museum programs. The remaining $500,000 was to establish a reserve of Indian rupees to ensure continued program support of the American Institute of Indian Studies after the supply of “ex- cess” rupees is depleted. Obligation of these funds is shown in Table 8 by country and research discipline. In fiscal year 1980 funds for support of the Smithsonian Science Information Exchange were appropriated to the Department of Commerce, rather than the Smithsonian as in prior years, and are therefore not reflected in this report. [ 48 ] Taste 8. Special Foreign Currency Program Fiscal Year 1980—Obligations System- Astro- aticand physics Mu- Grant environ- and seum admin- Archae- mental — earth pro- istra- ' Country ology biology sciences grams tion Total marma ..... $ 12,200 $15,663 $ — $ — $ — $ 27,863 meypt ..... 1,062,986 35,987 48,769 22,776 — 1,170,518 Seid ...... 2,497,558 218,146 40,196 234,313 41,339 3,031,552 Pakistan ... 70,562 148,284 — — — 218,846 Total .. $3,643,306 $418,080 $88,965 $257,089 $41,339 $4,448,779* * An additional amount of $243,077 was obligated by the National Science Founda- tion, Science Information Program, for translations and printing of scientific publi- cations requested by the Smithsonian Institution. Construction In fiscal year 1980 an amount of $32.1 million was appropriated to the Institution for construction projects of high priority to the Institution. The major portion of this funding, $20.6 million, was for construction of the Museum Support Center in Suitland, Mary- land. A further $6.3 million was provided for development and re- pair of facilities of the National Zoological Park; major projects included design of the Aquatic Habitats Area and continuation of Central Area construction at Rock Creek Park, as well as design of a small mammal and bird breeding complex and construction of a centralized hoofed stock management complex at Front Royal. Finally, an amount of approximately $5.3 million, more than twice the amount appropriated in fiscal year 1979, was designated for repairs and renovations at all other Smithsonian facilities. Of this amount, $3.7 million was for phased programs such as facade and roof repairs at the National Museum of History and Technology as well as the Renwick Gallery and the Arts and Industries Build- ing; the installation of fire detection and suppression systems; im- provement of access for the disabled; the correction of hazardous conditions; repair of heating, ventilating, and air conditioning sys- tems; and site development at the Mt. Hopkins, Arizona, observa- [ 49 ] TABLE 9. Construction and Plant Funds Fiscal Years 1978-1980 (in $1,000’s) Sources FY 1978 FY1979 FY 1980 FUNDS PROVIDED Federal Appropriations: Wational ZGolocical Park” ....°...¢.05 es $2,500 $3,900 $ 6,250 Museum Support Center’... 75205 AG 325 575 20,600* Restoration & Renovation of Buildings .. 2,425 2,100 5,250 Total Federal Appropriations ...... 5,250 6,575 32,100 Nonappropriated Trust Funds: Income—Gift and Other Cooper-Hewitt Museum .............. 60 —- 104 Opadtancle 2c anceses aks. gee ae — 5 1,051 Total shnRcomey oihs.2 << aucnpasias we ae 60 5 1,155 Transfers from Current Funds: Barney FIOGSe: posi 0d bs oop tise eae 70 — — Chesapeake Bay Center. ¢...i0 32 we etcnes 344 411 39 Coaper-Mewitt Museamr 22) 2.5 ae ee (10) a — Museum of African: Agt «ocsnieebendes == 4 22 National Zoolovieal: Park 2 oni... 3 110 — — Renwick Gates (Victorian Garden) .... 225 — — Sensory and East Gardens ........... 100 10 241 Ovadranele | 2003 i eee cee eat 30 1,385 1,040 Tropical Research Institute ........... _ 47 — Total Eransrers = as eee ee 869 1,857 1,342 ‘Total Funds Provided) Yo .5.:.0cnraecccn eee $6,179 $8,437 $34,597 * Obligation authority of $19 million deferred until FY 1981 on instructions from Office of Management and Budget. tory. The balance of these funds were applied to numerous other facility improvement projects required to preserve and to main- tain the Institution’s buildings in safe and working order. A total of $1,342,000 in nonappropriated funds was transferred to facilities development and land acquisition in fiscal year 1980, and a further $1,155,000 of gifts and other income was received for construction projects. A gift of $1 million for the Quad- rangle was received in March 1980 from the government of Japan in fulfillment of its earlier pledge toward this facility. In addition, the Institution set aside a further $1 million of unrestricted trust funds for the Quadrangle, of which $500,000 was designated for use in fiscal year 1980 to continue planning and engineering [50 | studies for congressional review prior to the appropriation of federal funds for this project. Additional funds were transferred for development of a Sensory Garden to be located in the area to the east of the Arts and Industries Building and for minor pay- ments related to land acquisition at the Chesapeake Bay Center and the Museum of African Art. Endowment and Similar Funds The Smithsonian Endowment Funds, as shown on Table 10, totaled $78,390,000 on September 30, 1980, as compared to $66,619,000 on September 30, 1979. Of these funds, $77,330,000 is invested Tasie 10. Endowment and Similar Funds September 30, 1980 Book value Market value ASSETS Pooled Consolidated Endowment Funds: A) $¢ 476,218 $ 476,218 re occ Redan esc eelees cveancs 12,850,192 13,821,370 OS 621,000 689,000 ee 49,423,674 62,343,318 eM MICE ETNGS | ow. oe ew ee eee 63,371,084 77,329,906 Nonpooled Endowment Funds: SE 38,138 38,138 Loan to U.S. Treasury in Perpetuity ........ 1,000,000 1,000,000 eS a 9,769 8,800 INS. ik kas diaeeaeiewnuenenc 3,321 13,095 etal Nonpooled Funds ...............- 1,051,228 1,060,033 Total Endowment and Similar Fund Balances .. $64,422,312 $78,389,939 FUND BALANCES Unrestricted Purpose: True Endowment ....... $ 2,472,281 $ 3,519,606 Quasi Endowment ..... 22,439,628 25,763,348 Total Unrestricted Purpose ............ 24,911,909 29,282,954 Restricted Purpose: True Endowment ....... 35,918,089 44,992,715 Quasi Endowment ..... 3,592,314 4,114,270 Total Restricted Purpose .............. 39,510,403 49,106,985 Total Endowment and Similar Fund Balances .. $64,422,312 $78,389,939 [ 51 ] in the Pooled Consolidated Endowment Fund, $1 million is on per- manent deposit in the United States Treasury, and the remaining $60,000 is held in miscellaneous securities. The majority of the Institution’s endowment funds ($49,107,000, or 63 percent) is restricted, with income available for use only as specified by the original donor; the remaining $29,283,000, or 37 percent, is unre- stricted and supports general programs of the Institution. A por- tion of these latter funds, however, has been designated by the Institution for specific purposes, such as the Lindbergh Chair of Aerospace History Endowment, which will enable term appoint- ments of leading scholars at the National Air and Space Museum. The unrestricted endowments have grown in recent years owing largely to transfers of moneys from current funds, as approved by the Board of Regents; $2,660,000 was so transferred in fiscal year 1980, and $2,650,000 in fiscal year 1979. During the year, a ‘thorough review of all endowment funds was conducted to ensure proper classification and documentation of their sources and re- strictions, resulting in the reclassification of several funds. A full listing of all endowment funds may be seen in Table 13. The Pooled Consolidated Endowment Fund is invested under the management of outside professional advisory firms under close supervision of the Investment Policy Committee and the Treasurer, subject to policy guidelines approved by the Smithsonian’s Board of Regents. As of the end of this year these firms, with the por- tion of the Fund under their management, were Batterymarch Fi- nancial Management (30 percent), Fiduciary Trust Company of New York (53 percent), and Torray Clark & Company (17 per- cent). During fiscal year 1980, the total rate of return (market appreciation as well as interest and dividend yield) of the Pooled Consolidated Endowment Fund, as calculated by an independent investment measurement service, was +18.8 percent, as compared to +12.9 percent for the Dow Jones Industrial Average, and +-21.2 percent for the Standard & Poor’s 500 Average, both calculated on the same basis. Of the $11,774,000 increase in market value of the Fund during the year, $7,829,000 was due to market appreciation, $2,846,000 to gifts and transfers, and $1,099,000 to dividend and interest yield reinvested in principal (see Table 12). Under the Total Return Income policy followed by the Insti- tution, a prudent portion of investment return (interest, dividends, f52 j Taste 11. Market Values of Pooled Consolidated Endowment Funds . (In $1,000’s) Fund 9/30/76 9/30/77 9/30/78 9/30/79 9/30/80 Muerectricted ............. $ 8,336 $12,525 $18,114 $22,614 $28,384 Es nos ke awed © 16,035 15,410 16,807 18,303 20,771 Endowment No. 3 ........ 12,701 12,343 13,462 15,022 17,047 Ee 6,561 6,601 8,647 9,617 11,128 Se ee $43,633 $46,879 $57,030 $65,556 $77,330 Taste 12. Changes in Pooled Consolidated Endowment Funds for Fiscal Year 1980 (In $1,000’s) Inter- Gifts est Market Market and and Income value Market value trans-_ divi- paid Sub- appre- value Fund 9/30/79 fers dends* out total ciation 9/30/80 Unrestricted ........ $22,614 $2,660 $1,334 $ 951 $25,657 $2,727 $28,384 EN Sly din elcian so 18,303 —_ 1,068 763 18,608 2,163 20,771 Endowment No. 3 ... 15,022 —_— 876 626 15,272 L775 17,047 Meesiticted .......... 9,617 186 567 406 9,964 1,164 11,128 ol A $65,556 $2,846 $3,845 $2,746 $69,501 $7,829 $77,330 * Income earned less managers’ fees. and capital appreciation) is available for expenditure each year as income, and the remainder is retained as principal. This total re- turn income payout is determined each year based on a review of anticipated dividend and interest yields, support needs of the In- stitution’s bureaux, inflationary factors, and the five-year running average of market values, adjusted for additions or withdrawals of capital. The amount of such income paid in fiscal year 1980 to endowments in the Pooled Consolidated Endowment Fund repre- sented an increase of 5.5 percent over the fiscal year 1979 rate of income, and a further increase of 10 percent has been approved for fiscal year 1981. Even after this payout, $1,099,000 of excess inter- est and dividend yield was available for reinvestment into principal. [ 53 ] TasLe 13. Endowment Funds September 30, 1980 Income Principal Fund UNRESTRICTED PURPOSE—TRUE: pivery Fest fice Sit oo ee owt ads Higbee, Harry Memorial* ............ Figgins FaGee 3. oeenomaes fee Morrow, Dwikht Wy, si: + is peeeke nasa ee Wascinan, Free. eo is hcg ca a slates Olested, Fieten’ Ay Jen) s Sesion w a ee Poore, Lucy T. and George W.* ........ Porter, Henry Kirke, Memorial ........ Sanford, Georee F* ots s oe ed Soe SpRItHSOG, Sas: 2 wo ons ware ect aee ee Walcott, Charles D. and Mary Vaux, Research (Designated) ............. Spice | AA a, Oe Ree SOIT OPER’ tg UNRESTRICTED PURPOSE—QUASI: Battech: ROGChEMeR: yo cc oad ae ais bee General Endowment* ................. Goddard. Robert: Hy. 2decs os ..ostkel dé. Habel, Dr. S.* Barstow, Frederic D. (Designated) Lindbergh Chair of Aerospace History (Designated) Lindbergh, Charles A. (Designated) ... Lyon, Marcus Ward, Jr. (Designated) .. SUBEOLAL sits och fo ore ee Total Unrestricted Purpose ......... RESTRICTED PURPOSE—TRUE: Arthur, James © aw, a Gi ful 6) 0 yale, 0:0 ell mae) ee |e a) is Hort: :Gastawis 6. 200d) Se see eee BiGir arene ios ot Ne hee Henry, Joseph and Harriet A. ......... Heys, Mander: 05 2o0k len tee einen Pimiton: aemeSusag 263.5. te aoe Lambert, PasigiGe 05 ee. 2 Medinus: Grace 3. | aa ee eee ee Rhees: William Jones)... ss. ok ose eS > Gahord, (bird: bAGisea 6.5. sea ae ok Smithsonian Bequest Fund ............ Tageatsé, Gamsan' o.00)2 soe os Se Abbott, William L. (Designated) ...... Md) 6 oe we ee. a ee ee wee we ele) eo Baird, Spencer Fullerton ............. Barney, Alice Pike, Memorial ........ Batenvier; Gama Efe. lea veces as Beauregard, Catherine, Memorial ..... Brown: WSiane Ws 35. anh: bs koe orc Canfield. Fredemek vA. 6.25.00 66 5000 05% Casey, Teams PigcOin. x). (i:n 00's avis = Chantberlain: Frances Lea‘. oo. pe 2s see Cooper Fund for Paleobiology ......... Division of Mammals Curators Fund ... Drake Foundation? “o.oo. bos eles Dykes, Charles, Bequest .............- Eickemeyer, Florence Brevoort ......... Endowrnent NO, 3s visa soe ere o nce Beeer. (onan 16.4 wa ages Veen & Guggenheim, Daniel and Florence ...... Fineiilion: tastes” as oct Ae os wee cas Henderson, Edward P., Meteorite Fund.. Hewitt, Eleanor G., Repair Fund ....... Hewett, Sacah Cger cscs aca rise a8 Bitchcock: Alest Si s/55 i sesame weve Book Market value value $ 77,212 $ 115,453 ya Wey a | 33,644 178,777 195,737 123,749 198,873 41,786 58,159 1,332 2,030 287,043 450,614 458,300 734,365 2,525 3,380 541,380 541,380 738,406 1,185,971 2,472,281 3,519,606 2,244,621 2,213,074 18,307,656 21,467,383 17,756 17,526 500 500 1,013 1,311 2,515 3,235 101,647 129,380 213,413 215,344 53,770 62,918 95,604 115,572 2,106 2,142 1,572 1,844 96,042 100,586 10,077 10,883 786 1,225 246,935 313,690 2,070 2,622 1,025,977 1,086,447 6,653 8,318 8,915 9,348 22,439,628 25,763,348 $24,911,909 $29,282,954 $ 64,003 $ 102,746 58,710 91,844 45,900 73,628 68,534 76,161 81,147 102,889 53,914 70,614 60,982 113,203 25,974 32,986 45,067 72,294 21,878 25,651 3,584 4,330 333,084 386,714 89,207 113,236 17,396 27,894 13,716,662 17,046,912 16,422,587 _ 20,771,334 248,702 265,110 3,144 3,612 644 914 14,529 16,668 86,004 98,384 2,524 4,116 Net income $ 6©=—. 4,568 1,263 9,890 7,307 2,137 74 17,176 26,982 150 32,483 43,686 145,716 81,312 724,171 644 30 48 119 4,753 7,912 2,312 4,246 79 81 3,696 264 45 11,526 96 17,522 771 343 859,970 $1,005,686 $ 3,775 3,374 2,705 2,798 3,780 2,594 4,159 1,212 2,656 867 159 14,130 4,160 1,025 630,170 763,235 9,740 191 34 612 3,615 152 Unex- pended balance sees oe vw [Ny ae RS ae PB Bp Spin op oop pip N @ \o is) 9,287 440,529 400,234 -0- 191 213 = He 852 Taste 13. Endowment Funds September 30, 1980—continued Fund balance SS (gl Hrdlicka, Ales and Marie ............. EEE cc cco nec s acne eenvae Kellogg, Remington, Memorial ........ EE ood aa & while Giavale alae w< aS os oS hd a Milliken, H. Oothout, Memorial ....... MeMEEAEEMGOWMENt ................-. | FE Natural History and Conservation ..... Nelson, Edward William .............. Petrocelli, Joseph, Memorial ........... ns A EO eee Rollins, Miriam and William .......... Shryock Endowment for Docents ...... Sprague Fund oS Stern, Harold P., Memorial ............ Stevenson, John A., Mycological Library Walcott, Charles D. and Mary Vaux, INO Nellis xi divs day’ ain ss) a lvie Walcott Research Fund, Botanical oe #erbpee, Frances Brinckle .............. Subtotal RESTRICTED PURPOSE—QUASI: Armstrong, Edwin James ............. 3 en aco Viseimia Purdy ................ 2 EE re os SS Gaver, Gordon Hachenberg, George P. and Caroline .. Hanson, Martin Gustav and Caroline R. Se fonnson, E: R. Fenimore .............. SS OE Bone, Annette E. and Edith C. ......... Myer, Catherine Walden .............. a moves, Pauline Riggs ...............-. Pell, Cornelia Livingston .............. Ramsey, Adm. and Mrs. Dewitt Clinton* Rathbun, Richard, Memorial Roebling Solar Research .............. ES 0 Se as Co Smithsonian Agency Account ......... ES 2 Witherspoon, Thomas A., Memorial .... Subtotal Total Restricted Purpose ............ TOTAL ENDOWMENT FUNDS Win @ bie Mw. 6).6) ss 2 6 toe Be 6.8 em Swish me We O00 hes OUEST Pe ew eB $64,422,312 Principal Book Market value value 100,000 100,000 97,654 127,915 30,631 49,197 51,459 52,845 5,570 oy 2s 11,177 10,496 31,389 50,407 429 490 193,887 226,377 26,344 30,968 27,997 33,244 38,151 57,081 11,862 19,120 47,854 57,779 193,325 308,349 360,965 504,076 1,341 1,461 2,582,750 3,014,222 28,976 46,013 275,560 323,324 9,990 a Aite Alf 232,367 313,186 92,715 143,210 1,520 2,419 35,918,089 44,992,715 yo bes 6,249 42,956 42,576 187,993 213,691 ' 323,051 369,860 18,769 24,361 2,484 3,008 8,369 11,243 18,421 23,382 13,620 17,298 16,615 17,315 181,031 231,901 869 1,432 41,866 53,148 2,015 2,679 20,222 20,063 15,380 19,621 608,239 645,001 22,061 28,113 51,052 60,444 64,797 67,467 16,076 20,337 1,284,402 1,461,248 358,455 408,450 20,737 26,417 267,322 338,968 3,592,314 4,114,270 $39,510,403 $49,106,985 $78,389,939 * Invested all or in part in U.S. Treasury or other nonpooled investments. ** Total Return Income payout; does not include $127,000 of interest income for investment of unex- pended income balances. Income Unex- Net pended income 6,000 7,025 4,700 3,721 1,808 13,427 1,906 5,330 247 1,138 792 3,354 1,852 11,624 18 —0- 8,317 2,463 1,138 2,07 2 1,142 —0- 2,097 —0- 703 13,151 2,379 8,402 11,330 142 18,312 12,231 35 35 109,515 25,496 1,691 22,862 11,320 12,509 462 509 12,166 8,644 5,262 8,380 90 2 524 _ 1,658,425 _ 1,163,816 225 —0- 1,564 —0- 7,851 29,823 13,589 —0- 875 —0- 110 622 413 413 859 3,599 636 4,947 636 10,332 8,520 14,684 53 258 1,953 5,524 98 2,214 737 —0- 721 47 24,259 3,788 1,033 15,290 2,221 2,776 2,479 4,283 747 11,323 53,689 114,126 14,064 —-0- 970 1,344 12,454 12,454 150,756 237,847 $1,809,181 $1,401,663 $2,814,867** $1,466,752 A listing of the securities held in the Pooled Consolidated En- dowment Fund as of September 30, 1980, may be obtained upon request from the Treasurer of the Institution. Related Organizations The Smithsonian Science Information Exchange, Inc. (sste) is de- voted to facilitating the planning, management, and coordination of the nation’s research through the collection, processing, and dissemination of information about ongoing research. Incorporated by the Smithsonian in 1971 as a separate nonprofit entity, ssIE was funded in past years through an annual contract from the Smithsonian, equal to the appropriation provided the Smithsonian for this purpose. As noted in last year’s report, the fiscal 1980 ap- propriation for ssIE was made to the Department of Commerce in anticipation of the integration of the functions of ssre into the National Technical Information Service (NTIS). Pending consolida- tion of these activities and termination of the corporation, the Smithsonian has continued to provide ss1E with administrative and fiscal services on a contract basis. Reading is Fundamental, Inc. (RIF), associated with the Institu- tion since 1968, is an independent, separately incorporated entity dedicated to the improvement of reading abilities in children. Primary support is derived from private contributions and a federal contract with the Department of Education to operate the federal Inexpensive Book Distribution Program. Administrative services are provided by the Institution on a contract basis. The Woodrow Wilson International Center for Scholars, the National Gallery of Art, and the John F. Kennedy Center for the Performing Arts were established by Congress within the Institu- tion but are administered by separate boards of trustees. Inde- pendent financial reports are prepared by each of these organiza- tions. Office space and fiscal and other administrative and support services are provided the Woodrow Wilson International Center for Scholars on a reimbursement basis. The Friends of the National Zoo (Fonz) is an independent, non- profit corporation working closely with the National Zoological [ 56 ] Park. It operates under contract a number of beneficial concessions for the National Zoo. Fonz provided concession and rental fees to the Zoo amounting to more than $147,000 during calendar year 1979 (FoNz’s fiscal year). In addition, Fonz contributed other im- portant financial and volunteer support for Zoo programs. Financial affairs of this organization are disclosed separately elsewhere in Smithsonian Year 1980. Accounting and Auditing The nonappropriated trust funds of the Institution are audited annually by an independent public accounting firm; the report of Coopers & Lybrand is contained in the following pages. Additional reviews are conducted annually on a number of Smithsonian activ- ities by the internal audit staff. Additionally, the Defense Contract Audit Agency conducts an annual audit of grants and contracts re- ceived from federal agencies, as well as general and administrative costs. The Audit and Review Committee of the Regents held several meetings during the year pursuant to their responsibility, under the bylaws of the Institution, for reviewing the Smithsonian’s account- ing systems and internal financial controls; for facilitating com- munication between the Board of Regents and auditors from the internal audit staff, the independent accounting firm, and the Gen- eral Accounting Office; and for reviewing operations of the Insti- tution for compliance with approved programs and policies. Lar | Distinctive museum shop displays have won design awards and keep business at a brisk pace year round. Carrying out the theme of the Centennial in the Arts and Industries Building, the Smith & Sun Photographic Gallery in the 1876 Museum Shop produces authentic tintypes and supplies period costumes. Below. The Craft Shop in the National Museum of History and Technology features handmade crafts from across the United States. Articles on sale are similar to those on display in the museum, this being the marketing rationale. _ COOPERS & LYBRAND CERTIFIED PUBLIC ACCOUNTANTS IN PRINCIPAL AREAS OF THE WORLD To the Board of Regents Smithsonian Institution We have examined the balance sheet of the Trust Funds of Smith- sonian Institution as of September 30, 1980 and the related state- ment of financial activity for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. We previously examined and reported upon the statements of the Trust Funds of Smithsonian Institution for the year ended September 30, 1979, totals of which are included in the accompanying financial statements for comparative purposes only. The statements of the Trust Funds of Smithsonian Institution do not include the accounts of the National Gallery of Art, the John F. Kennedy Center for the Performing Arts, or other de- partments, bureaus and programs administered by the Smithsonian Institution under federal appropriations as detailed in Note 2 to the financial statements. | In our opinion, the financial statements for the year ended September 30, 1980, referred to above, present fairly the financial position of the Trust Funds of Smithsonian Institution as of Sep- tember 30, 1980, and the results of operations and changes in fund balances for the year then ended, in conformity with generally ac- cepted accounting principles applied on a basis consistent with that of the preceding year. COOPERS & LYBRAND 1800 M Street, N.W. Washington, D.C. 20036 November 28, 1980 [ 59 ] SMITHSONIAN INSTITUTION—TRUST FUNDS Balance Sheet September 30, 1980 (with comparative totals for September 30, 1979) ASSETS: Cash. cases ea we Pee Wt ck alsin os cth.g bee eee ee Investments. (Notes 3 and. 5) a)cs/s..06 ceo sda aces eee See Receivables (Note: 4)o.. 5. ao ce keecws bees addin Pa be Interfund xeceivables .. 2360 oases kh < +o tind os eee Merchandise’ inventory (Note! 1)... 20.2.2 44s ccen ae eee Prepaid and deferred expense (Note 1) ................45. Property and equipment (Notes 1 and 6) .................. LIABILITIES: Accounts payable and accrued expenses ...............-4: Deposits held in custody for other organizations (Note 2) .. Interfund payables 2. 21%. 5 sens ks os he ee Defetréd revenue: (Nete 1) 2.4... das kaet eds ane Fotal abilities = sic tb) oe cds en Bae ee ee FUND BALANCES (Note 1): Current: Unrestricted general purpose © s..: 4:4). 262 2s. eee Special ‘purpose’ 2.622 OFS YL eC ee ee Restereted, 2) 02:0 <