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R66
financials
REPORT OF THE TREASURER
The financial results for 2002 reflected the difficult operating environment
in a year where all non-profits were adversely affected by two
major trends: the continued decline in the investment markets and a
softening of philanthropic support.
The Unrestricted Operating results showed a loss of $1.76 million,
which was a vast improvement over the $2.9 million loss reported in
2001. This was due to a more rapid increase (14.4%) in Unrestricted
Operating Support when compared to Operating Expense growth
(9.6%). On the revenue side, Government Grants increased by 8.2%,
Lab Rental & Net Tuition increased by 12%, Fees for Conferences and
Services rebounded 21 .7% from depressed levels in 2001 as a result of
cancelled events due to September 1 1"\ and Investment and Other
Revenues increased by 30%.
On the expense side. Research activities represented two-thirds of the
increase, growing by approximately $2 million (9.7%) as the Laboratory
added more than two dozen scientists mainly to gear up for expanded
research programs in Scientific Aquaculture and Global Infectious
Disease. As a result, grant applications
hit an all-time high and grant
dollars awarded increased almost 30% over 2001 .
Looking at the
underlying components, double-digit increases were experienced in
Salaries (13.6%), Fringe Benefits (16.2%), Supplies (19.4%), Utilities
(12.1%), and Depreciation (16.8%).
Philanthropic support fell dramatically from the unusually strong levels
the Laboratory had experienced in the three previous years when the
MBL received gifts exceeding $10 million each year. Total Contributions
including those to Plant were $4.6 million, the lowest level since
1995. The long-term investment portfolio, however, performed quite
competitively in a year when the average common stock mutual fund
declined by 28%. The 3.9% decline in market values was in the top
quartile when compared
to how a universe of 1 22 foundations and
endowments performed
in 2002. The MBL had realized and unrealized
investment losses, which totaled $2 million in 2002.
Taking into account the challenging near-term market environment, in
2002 the its first
Laboratory experienced decline in Total Net Assets
since 1994.
MBL's Net Assets declined $6.2 million.