BBSR 2001 Annual Report - Bermuda Institute of Ocean Sciences

NOTES TO FINANCIAL STATEMENTS CONTINUED7. Sponsored ProjectsApproximately 45% and 50% of the Station’s operation revenues in 2001 and 2000, respectively, were awards for sponsored projects. The awards provide forrecovery of both direct and indirect costs. The indirect costs covered by the awards are generally determined as a negotiated or agreed-upon percentage of directcosts with certain exclusions. Indirect costs recovered from all sponsored projects during 2001 and 2000 were $992,274 and $1,133,614, respectively. Theserecoveries reduced management and general expenses as reported in the statement of activities.8. Investment Return and Spending PolicyThe Station’s Board of Trustees has authorized a policy permitting a spending rate of up to 5% of the average market value of its portfolio at the previous threefiscal year ends. This policy is designed to provide a predictable flow of funds to support operations. In 2001 and 2000 investment returns of $215,081 and$205,131, respectively, were spent for operations in accordance with this policy.The following summarizes the Station’s investment return and spending for the year ended December 31, 2001 and 2000:9. Contributions Receivable2001TemporarilyUnrestricted Restricted TotalInterest and dividends $ 53,815 $ 70,094 $ 123,909Net depreciation in fair valueof investments (61,947) (77,317) (139,264)Net loss on investments $ (8,132) $ (7,223) $ (15,355)Investment return spenton operations $ 91,188 $ 123,893 $ 215,0812000TemporarilyUnrestricted Restricted TotalInterest and dividends $ 89,728 $ 195,217 $ 284,945Net depreciation in fair valueof investments (53,933) (130,626) (184,559)Net return on investments $ 35,795 $ 64,591 $ 100,386Investment return spenton operations $ 105,114 $ 100,017 $ 205,131Contributions receivable at December 31, 2001 and 2000 are expected to be collected as follows:December 312001 2000Amount expected to be collected in:One year or less $ ,762,861 $ ,664,920Years two through five ,874,667 ,691,339Thereafter ,010,000 ,015,0001,647,528 1,371,259Less discount (5% in 2001 and8% in 2000) to present value , (63,623) , (76,528)$ 1,583,905 $ 1,294,73130