1987

ANNUAL REPORT

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

The Federation of American Societies for Experimental Biology FASEB was founded in 1912 It is incorporated in the District of Columbia as a non-profit scientific society assigned to enhance the exchange of scientific knowledge in experimental biology to disseminate information through scientific publications and meetings to promote the professional education and training of potential scientists and to represent the common scientific and educational interests of member societies These purposes are designed to aid the development and utilization of science for the benefit and welfare of the nation The Federation incorporates into a single operating agency functions of its member Societies which can best be done jointly It is designed to advance scientific rationale at all levels in the field of experimental biology

Headquarters Administration Executive Director Robert W Krauss

Comptroller John R Rice

Officers 1986-87 Officers 1987-88 President Barry R Bloom President Franklyn G Knox

Vice President Franklyn G Knox Vice President Howard K Schachman Secretary Robert W Krauss Secretary Robert W Krauss

Treasurer Elwood W Speckmann Treasurer Elwood W Speckmann

BOARD OF DIRECTORS

FEDERATION BOARD July 1 1986-June 30 1987

B R BLOOM Chairman

The American Physiological Society H E MORGAN F G KNOX H V SPARKS JR

American Society of Biological Chemists E G KREBS M E JONES H K SCHACHMAN

American Society for Pharmacology and Experimental Therapeutics W K RIKER N WEINER L LEMBERGER

American Association of Pathologists C G BECKER D KORN

American Institute of Nutrition D H CALLOWAY H P BROQUIST

The American Association of Immunologists B R BLOOM W E PAUL D C SHREFFLER

The American Society for Cell Biology I B DAWID non-voting

A E HARPER Past President non-voting R W KRAUSS Secretary non-voting

E W SPECKMANN Treasurer non-voting

FEDERATION BOARD July 1 1987 -June 30 1988

F G KNOX Chairman

The American Physiological Society F G KNOX H V SPARKS JR A E TAYLOR

American Society for Biochemistry and Molecular BIology M E JONES H K SCHACHMAN R T SCHIMKE

American Society for Pharmacology and Experimental Therapeutics N WEINER L LEMBERGER W L DEWEY

American Association of Pathologists Q KORN E R UNANUE

American Institute of Nutrition D H CALLOWAY H P BROQUIST

The American Association of Immunologists W E PAUL D C SHREFFLER M D COOPER

The American Society for Cell Biology T D POLLARD non-voting

B R BLOOM Past President non-voting R W KRAUSS Secretary non-voting

E W SPECKMANN Treasurer non -votirg

APPOINTED OFFICIALS

R W KRAUSS Executive Director-9650 Rockville P ke Bethesda MD 20814 301530-7090

J R RICE Comptroller-9650 Rockville Pike Bethesda M D 20814 301530-7080

Presidents Messages

Dr Bloom

President 1986-87

It has been an extraordinary privilege to serve as Presishydent of FASEB and a particular pleasure during the celebration of the 75th anniversary of the Federation of American Societ ies for Experimental Biology The years since a small band of researchers assembled in Cleveland to found an organization to preserve the unity of the biological sciences in the face of inevitable specialization in many subdisciplines have been fruitful both for the Federation and for its members Initial ly designed to insure that the three societies that encomshypassed all of biomedical research - The American Physshyiological Society the American Society of Biological Chemists and the American Society for Pharmacology and Experimental Therapeutics ~ shared advancing knowledge and techniques of their separate disciplines the Federation has become an increasingly important force for the Societies and affiliates that comprise the Federation The constituent membership of FASEB Soshycieties has increased from 450 in 1912 to 32854 in 1987 The budget for its operations has increased from a few hundred dollars to well over 10 million By successfully serving to foster the development of research and comshymunication in the biomedical scientific disciplines FASEB has thrust upon it an ever greater role and responsibility in representing science in a broader conshytext to the nation

I must confess that my greatest surprise during my year as President of FASEB was learning how important and seriously FASEB is regarded by those who formulate public poi icy in the areas of science health and educashytion FASEB both is its member Societies-and more than the sum of its parts Each of the sotieties has inshytellectually something quite special to contribute and at any given time each of the societies must address specific problems and issues of special concern And it is with each of the Societies that the individual members find it most congenial to identify For me it was wondershyful to be able to celebrate the centennial and accomshyplishments of The American Physiological Society for example whose hundred years of service to biology and medicine preceded the Federation by 25 years Yet at the same time physiology as well as all other biomedical disciplines which depend critically on the ability to pershyform experiments in animal systems are increasingly threatened ltis difficult for any individual society to deshy

fend its needs on grounds of principle without appearshying to argue solely from a position of self-interest It has thus become a major responsibility of FASEB both to support the activities of the APS and other groups in making clear that the use of animals in research is a scientific necessity for the most humane ends and to support the establishment of the most demanding and vigilant standards possible to ensure the humane care and use of animals for experimentation In another soshycietal area the response of the Biological Chemists to accommodate the needs of the new generation of molecular biologists was most gratifying and the newly designated American Society for Biochemistry and Molecular Biology was most warmly welcomed by FASEB

The President of FASEB is called upon to provide tesshytimony before the Congress on needs and opportunities in biomedical research It was both a personal thrill and an enormous responsibility to prepare in the most coshygent way I knew with extraordinarily valuable help from the FASEB Office of Public Affairs the most useful inforshymation on the opportunities needs and problems of the biomedical research community II learned for example that the integrity of FASEB its principled positions its reliance on the highest level of expertise within the scientific community and its independent positions were everywhere highly respected It was most interestshying as we walked around the Senate office building to see one congressional staff person after another greet Gar Kaganowich Director of the FASEB Office of Public Affairs warmly and knowingly in recognition of his exshypertise and service on the Hill in the area of health The fact that FAS EB represents 32000 active scientists as well as the disciplines and their societies has an enorshymous impact No one scientist no one discipline inshyterest group or scientific society is as likely to be as inshyfluential as a large society that can by reasoned positions represent fairly the views of a large segment of the scientific community

No less edifying for me was the fact that many of the premises and assumptions which most of us as scienshytists commonly take for granted are by no means universally shared In testimony before the House Comshymittee on Science and Technology I was stunned to hear powerful invectives against the merit system and peer group review as the basis for award of funds for research There is resentment in many quarters that some institutions States and regions receive more research fund than others The ready interpretation is that there must be a conspiratorial old boy network that is responsible The argument is emotionally appealshying to many (even if it is difficult to discern the logic of peer reviewers from Yale for example preferring for pershyverse reasons to award funds to their competitors at Harvard rather than those in Idaho) At those hearings a strong case was also made that inequities of the past have disadvantaged historical minorities of this country perhaps most of all in science and that there is an urshy

gent need to support and encourage participation of minorities in the scientific enterprise In my view the case is compelling If there are not minority scientists and teachers as colleagues and role models bright stushydents will not have equal access to science and we would be deprived of important scientific contributions A not dissimilar case was made by the small colleges and universities who feel unable to compete with larger institutions at the forefront of scientific research for fedshyeral funds but who provide a large source of teaching in the sciences and motivation of students to enter the sciences We must find ways to support the teaching base of the scientific enterprise and support institutions of emerging excellence in a way that maintains the comshymitment to merit What is unclear is the best means to assure that My personal view is that automatic setshyasides removal of funds from the pool of research grant competitiorl for special purposes is a very dangerous way to address that situation because as special interest groups become more and more powerful small setshyasides become larger and open the way to special legisshylation that ultimately bypasses the merit system leaving too little support for research at the cutting edges of science and which diminishes the creativity and comshypetitiveness of American science I believe it is vitally imshyportant for each of the societies and members to reflect on these issues and to help FAS EB come to a position that is responsive to the national needs yet consistent with our commitment to the highest standards of excelshylence in science

Although science will always be the major preoccupashytion of the Federation FASEB is more and more looked to for a leadership role in the area of public information and public affairs about science There are major challenges to persuading citizens that the support of research and science which often pay benefits to the country and the world over the long period are worthy of support at a time of increasing fiscal constraints It is important to try to protect the research enterprise from harmful and restrictive legislation regulation and imshypediments of the search for new knowledge and progress Just as the President is responsible for fairly reflecting the views of the Societies and their members so is he compelled on occasion to provide a degree of pe~sonal vision and leadership My greatest disappointment durshying my tenure at FASEB was my failure to persuade my colleagues to reconsider what I regard as an increasingly hostile attitude of scientists towards the universities in which most of us work The basic problem of reshysearchers and the universities derives fundamentally from the same source- the underfunding of research The failure of the universities to rationalize or to explain to their faculties the basis for uses and responsibilities of indirect cost reimbursement and the fact that the universities are not receiving close to the full cost of sponsored research has contributed significantly to this negative attitude Many of my colleagues think that the universities are really the adversary rather than the large

number of special interest groups demanding other uses of national resources than research health and educashytion As I tried to indicate above we have real enemies but the universities are not among them It is ironic that as President of FAS EB I was charged with supporting proposals from the House arid Senate to provide much needed funding for research facilities which has been absent from the NIH budget for the past 16 years As one who works in a 35 year old building full of asbestos I know first-hand that ou r research facilities are deterishyorating so rapidly that this nation is losing its competishytive edge in many aspects of science At the same time I was also charged to request that usage allowance and indirect cost reimbursement to the universities that would house such facilities be reduced It should be obvious that building new facilities represents not a sinshygle time cost for the universities and research institushytions but a continuing cost in power maintenance security etc It has been my position that we need apshypropriation of additional budgetary funds specifically designated for facilities rather than the unpleasant choice of removing funds allocated for direct cost of research to provide for the institutional costs of mainshytaining that research Because I believe the viability and excellence of the universities is a pricipal determinant of the quality of research in this country I can only make a plea to each of the members of FASEB and their Socishyeties as well as to the university administrators to try to work together for a reasonable solution to the dilemma The universities must understand the inshydividual scientists needs to be allowed to pursue the research that the Congress believed it was supporting when it provided the research appropriations the scienshytists must support universities efforts to insure that the physical and intellectual environment to foster that research is not eroded This is not an issue to be overshysimplified or trivialized (They use our money to subsishydize the poets) We must realize that we have a great deal more in common at stake on this issue and must try to understand each others needs and work togethe r If we can the opportunities are unprecedented for Eshy

development of new knowledge and scientific i tions all urgently needed for survival not on dividuals but of our complex society and its j S

in the years ahead Finally I must confess that my greatest urshy

ing my tenure was working with the lVO l dedishycated and supportive group of people assc ated with FAS EB The scientists representing ea-- Soc ety on the Board and the executive officers of eac omiddot he societies were challenging stimulating and e ective Dr Krauss Mr Rice Gar Kaganowich the heads and staffs of each of the FASEB departments especially the Office of Pubshylic Affairs gave me a un iq e education No group of people could have been more helpful and I wish to thank them all most sincerely

Barry R Bloom President 1986-87

Dr Knox

President 1987-88

Skills in communication are the stock in trade of any effective teacher The ability to communicate to students the incredibly large number of facts that are required for mastery as well as the philosophical poise that is essenshytial for the pursuit of any discipline requires ingenuity dedication and perseverance As the Federation looks toward the 21st century it also needs to be an effective communicator not only of science to scientists but of science to the publ1ic and the nation No less compelling is the need for the FAS EB officers and Governing Board to couple the obvious needs and aspirations of its memshybership to appreciation of less transparent problems which can insidiously inhibit the advancement of biology and medicine The Federation was founded to continue intershycommunication among developing subdisciplines It is now apparent that communication and action in areas of converging interest will become the preoccupation of FAS EB as it nears the year 2000

Learned scientific societies have paralleled the more ancient craftsmens guilds in their evolution and growth to become imposing forces in national affairs Assemshyblages of persons addressing like problems with similar skills and perceptions must also mesh with the complex society that supports them The Constituent Societies of the Federation are forging techniques and producing knowledge which will be the foundation of biology and medicine in the next century Research demands raw products a cadre and markets that guilds also required Skilled intelligent practitioners depend on mecha nisms for explaining the value of their products as well as a means for distribution The Federation speaks to all of these requirements It avails nothing to have an assemblage of biomedical researchers if society is too poorly informed about the product to appreciate its value There will be little point in attempting to continue research if the necessary ra materia ls disappear whether they be laboratories suppl ies equipment or the animals on which biological experimentation ultimately depends There will be no need or a cadre of dedicated researchers who supply new knowledge if society remains too weakly educated to understand the new knowledge To produce science and not have it used is a waste when it could be employed for the practical curing of illness for the manshyagement of industry or simply to explain mans place in the universe The Federation Board has begun to recognize that its policies must be shaped to the constantly evolvshy

ing pressures of both science and society Scientific comshymunication must clearly involve those major issues which all face Skills of the highest order must be available to communicate a better understanding of science as it enters the 21st century

When the Federation President Officers and Board speak they must carefully consider which constituency is listening The scientists of the Federation should hear about Federation programs they should evaluate Federshyation services they need to learn about Federation finances and they must participate in Federation plans for the future When the public listens they must be made appreciative of the techniques of biomedical research they must understand what problems are being attacked how they are being approached what new and novel methodologies are being exploited and what the new disshycoveries contribute to their ultimate welfare When Conshygress listens it must understand the need for funding why costs in medical research inevitably rise as well as the financial benefits of the increased productivity of a healthy population When regulatory agencies listen the Federshyation must be careful to explain why many new regu ~ ashy

tions which may appear to be well-meaning may do more damage than good ReQulations must be enacted not only for the protection of society but to expedite the advancement of research Finally when the President of the United States listens he must understand that his obshyligation to the total welfare of the nation must employ the most modern information the biological and medical research community can provide Otherwise his national policies are bound to fail

The art of communication therefore is one to be newly cultivated at the Federation The Board in recognizing the importance of an enhanced intercommunication is planning a Retreat in the Fall of 1988 to discuss the future course of the Federation We have a rich heritage and a future filled with duties and obligations which we are only able to perceive with imperfect vision The evolution of scientific societies just as the evolution of society in general can rarely be predicted However as the Federashytion looks to the 21st century there is every assurance that its mission will be larger its role in society more compelling and its science of greater excellence

The past seventy-five years have seen an unparalleled growth for FASEB With that growth have also come greater responsibilities to a world in which we must exist in an increasingly crowded mode The challenges scienshytifically and organizationally must be met with the same ingenuity and foresight that characterized our founders At this crossroads in our history there is every reason to believe that given a careful sympathetic and wise disshycussion of our problems and opportunities the future history of the Federation will continue to merit the apshyplause that it has received for its past seventy-five years of service

Franklyn G Knox President 1987-88

REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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f-

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f- I

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I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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The Federation of American Societies for Experimental Biology FASEB was founded in 1912 It is incorporated in the District of Columbia as a non-profit scientific society assigned to enhance the exchange of scientific knowledge in experimental biology to disseminate information through scientific publications and meetings to promote the professional education and training of potential scientists and to represent the common scientific and educational interests of member societies These purposes are designed to aid the development and utilization of science for the benefit and welfare of the nation The Federation incorporates into a single operating agency functions of its member Societies which can best be done jointly It is designed to advance scientific rationale at all levels in the field of experimental biology

Headquarters Administration Executive Director Robert W Krauss

Comptroller John R Rice

Officers 1986-87 Officers 1987-88 President Barry R Bloom President Franklyn G Knox

Vice President Franklyn G Knox Vice President Howard K Schachman Secretary Robert W Krauss Secretary Robert W Krauss

Treasurer Elwood W Speckmann Treasurer Elwood W Speckmann

BOARD OF DIRECTORS

FEDERATION BOARD July 1 1986-June 30 1987

B R BLOOM Chairman

The American Physiological Society H E MORGAN F G KNOX H V SPARKS JR

American Society of Biological Chemists E G KREBS M E JONES H K SCHACHMAN

American Society for Pharmacology and Experimental Therapeutics W K RIKER N WEINER L LEMBERGER

American Association of Pathologists C G BECKER D KORN

American Institute of Nutrition D H CALLOWAY H P BROQUIST

The American Association of Immunologists B R BLOOM W E PAUL D C SHREFFLER

The American Society for Cell Biology I B DAWID non-voting

A E HARPER Past President non-voting R W KRAUSS Secretary non-voting

E W SPECKMANN Treasurer non-voting

FEDERATION BOARD July 1 1987 -June 30 1988

F G KNOX Chairman

The American Physiological Society F G KNOX H V SPARKS JR A E TAYLOR

American Society for Biochemistry and Molecular BIology M E JONES H K SCHACHMAN R T SCHIMKE

American Society for Pharmacology and Experimental Therapeutics N WEINER L LEMBERGER W L DEWEY

American Association of Pathologists Q KORN E R UNANUE

American Institute of Nutrition D H CALLOWAY H P BROQUIST

The American Association of Immunologists W E PAUL D C SHREFFLER M D COOPER

The American Society for Cell Biology T D POLLARD non-voting

B R BLOOM Past President non-voting R W KRAUSS Secretary non-voting

E W SPECKMANN Treasurer non -votirg

APPOINTED OFFICIALS

R W KRAUSS Executive Director-9650 Rockville P ke Bethesda MD 20814 301530-7090

J R RICE Comptroller-9650 Rockville Pike Bethesda M D 20814 301530-7080

Presidents Messages

Dr Bloom

President 1986-87

It has been an extraordinary privilege to serve as Presishydent of FASEB and a particular pleasure during the celebration of the 75th anniversary of the Federation of American Societ ies for Experimental Biology The years since a small band of researchers assembled in Cleveland to found an organization to preserve the unity of the biological sciences in the face of inevitable specialization in many subdisciplines have been fruitful both for the Federation and for its members Initial ly designed to insure that the three societies that encomshypassed all of biomedical research - The American Physshyiological Society the American Society of Biological Chemists and the American Society for Pharmacology and Experimental Therapeutics ~ shared advancing knowledge and techniques of their separate disciplines the Federation has become an increasingly important force for the Societies and affiliates that comprise the Federation The constituent membership of FASEB Soshycieties has increased from 450 in 1912 to 32854 in 1987 The budget for its operations has increased from a few hundred dollars to well over 10 million By successfully serving to foster the development of research and comshymunication in the biomedical scientific disciplines FASEB has thrust upon it an ever greater role and responsibility in representing science in a broader conshytext to the nation

I must confess that my greatest surprise during my year as President of FASEB was learning how important and seriously FASEB is regarded by those who formulate public poi icy in the areas of science health and educashytion FASEB both is its member Societies-and more than the sum of its parts Each of the sotieties has inshytellectually something quite special to contribute and at any given time each of the societies must address specific problems and issues of special concern And it is with each of the Societies that the individual members find it most congenial to identify For me it was wondershyful to be able to celebrate the centennial and accomshyplishments of The American Physiological Society for example whose hundred years of service to biology and medicine preceded the Federation by 25 years Yet at the same time physiology as well as all other biomedical disciplines which depend critically on the ability to pershyform experiments in animal systems are increasingly threatened ltis difficult for any individual society to deshy

fend its needs on grounds of principle without appearshying to argue solely from a position of self-interest It has thus become a major responsibility of FASEB both to support the activities of the APS and other groups in making clear that the use of animals in research is a scientific necessity for the most humane ends and to support the establishment of the most demanding and vigilant standards possible to ensure the humane care and use of animals for experimentation In another soshycietal area the response of the Biological Chemists to accommodate the needs of the new generation of molecular biologists was most gratifying and the newly designated American Society for Biochemistry and Molecular Biology was most warmly welcomed by FASEB

The President of FASEB is called upon to provide tesshytimony before the Congress on needs and opportunities in biomedical research It was both a personal thrill and an enormous responsibility to prepare in the most coshygent way I knew with extraordinarily valuable help from the FASEB Office of Public Affairs the most useful inforshymation on the opportunities needs and problems of the biomedical research community II learned for example that the integrity of FASEB its principled positions its reliance on the highest level of expertise within the scientific community and its independent positions were everywhere highly respected It was most interestshying as we walked around the Senate office building to see one congressional staff person after another greet Gar Kaganowich Director of the FASEB Office of Public Affairs warmly and knowingly in recognition of his exshypertise and service on the Hill in the area of health The fact that FAS EB represents 32000 active scientists as well as the disciplines and their societies has an enorshymous impact No one scientist no one discipline inshyterest group or scientific society is as likely to be as inshyfluential as a large society that can by reasoned positions represent fairly the views of a large segment of the scientific community

No less edifying for me was the fact that many of the premises and assumptions which most of us as scienshytists commonly take for granted are by no means universally shared In testimony before the House Comshymittee on Science and Technology I was stunned to hear powerful invectives against the merit system and peer group review as the basis for award of funds for research There is resentment in many quarters that some institutions States and regions receive more research fund than others The ready interpretation is that there must be a conspiratorial old boy network that is responsible The argument is emotionally appealshying to many (even if it is difficult to discern the logic of peer reviewers from Yale for example preferring for pershyverse reasons to award funds to their competitors at Harvard rather than those in Idaho) At those hearings a strong case was also made that inequities of the past have disadvantaged historical minorities of this country perhaps most of all in science and that there is an urshy

gent need to support and encourage participation of minorities in the scientific enterprise In my view the case is compelling If there are not minority scientists and teachers as colleagues and role models bright stushydents will not have equal access to science and we would be deprived of important scientific contributions A not dissimilar case was made by the small colleges and universities who feel unable to compete with larger institutions at the forefront of scientific research for fedshyeral funds but who provide a large source of teaching in the sciences and motivation of students to enter the sciences We must find ways to support the teaching base of the scientific enterprise and support institutions of emerging excellence in a way that maintains the comshymitment to merit What is unclear is the best means to assure that My personal view is that automatic setshyasides removal of funds from the pool of research grant competitiorl for special purposes is a very dangerous way to address that situation because as special interest groups become more and more powerful small setshyasides become larger and open the way to special legisshylation that ultimately bypasses the merit system leaving too little support for research at the cutting edges of science and which diminishes the creativity and comshypetitiveness of American science I believe it is vitally imshyportant for each of the societies and members to reflect on these issues and to help FAS EB come to a position that is responsive to the national needs yet consistent with our commitment to the highest standards of excelshylence in science

Although science will always be the major preoccupashytion of the Federation FASEB is more and more looked to for a leadership role in the area of public information and public affairs about science There are major challenges to persuading citizens that the support of research and science which often pay benefits to the country and the world over the long period are worthy of support at a time of increasing fiscal constraints It is important to try to protect the research enterprise from harmful and restrictive legislation regulation and imshypediments of the search for new knowledge and progress Just as the President is responsible for fairly reflecting the views of the Societies and their members so is he compelled on occasion to provide a degree of pe~sonal vision and leadership My greatest disappointment durshying my tenure at FASEB was my failure to persuade my colleagues to reconsider what I regard as an increasingly hostile attitude of scientists towards the universities in which most of us work The basic problem of reshysearchers and the universities derives fundamentally from the same source- the underfunding of research The failure of the universities to rationalize or to explain to their faculties the basis for uses and responsibilities of indirect cost reimbursement and the fact that the universities are not receiving close to the full cost of sponsored research has contributed significantly to this negative attitude Many of my colleagues think that the universities are really the adversary rather than the large

number of special interest groups demanding other uses of national resources than research health and educashytion As I tried to indicate above we have real enemies but the universities are not among them It is ironic that as President of FAS EB I was charged with supporting proposals from the House arid Senate to provide much needed funding for research facilities which has been absent from the NIH budget for the past 16 years As one who works in a 35 year old building full of asbestos I know first-hand that ou r research facilities are deterishyorating so rapidly that this nation is losing its competishytive edge in many aspects of science At the same time I was also charged to request that usage allowance and indirect cost reimbursement to the universities that would house such facilities be reduced It should be obvious that building new facilities represents not a sinshygle time cost for the universities and research institushytions but a continuing cost in power maintenance security etc It has been my position that we need apshypropriation of additional budgetary funds specifically designated for facilities rather than the unpleasant choice of removing funds allocated for direct cost of research to provide for the institutional costs of mainshytaining that research Because I believe the viability and excellence of the universities is a pricipal determinant of the quality of research in this country I can only make a plea to each of the members of FASEB and their Socishyeties as well as to the university administrators to try to work together for a reasonable solution to the dilemma The universities must understand the inshydividual scientists needs to be allowed to pursue the research that the Congress believed it was supporting when it provided the research appropriations the scienshytists must support universities efforts to insure that the physical and intellectual environment to foster that research is not eroded This is not an issue to be overshysimplified or trivialized (They use our money to subsishydize the poets) We must realize that we have a great deal more in common at stake on this issue and must try to understand each others needs and work togethe r If we can the opportunities are unprecedented for Eshy

development of new knowledge and scientific i tions all urgently needed for survival not on dividuals but of our complex society and its j S

in the years ahead Finally I must confess that my greatest urshy

ing my tenure was working with the lVO l dedishycated and supportive group of people assc ated with FAS EB The scientists representing ea-- Soc ety on the Board and the executive officers of eac omiddot he societies were challenging stimulating and e ective Dr Krauss Mr Rice Gar Kaganowich the heads and staffs of each of the FASEB departments especially the Office of Pubshylic Affairs gave me a un iq e education No group of people could have been more helpful and I wish to thank them all most sincerely

Barry R Bloom President 1986-87

Dr Knox

President 1987-88

Skills in communication are the stock in trade of any effective teacher The ability to communicate to students the incredibly large number of facts that are required for mastery as well as the philosophical poise that is essenshytial for the pursuit of any discipline requires ingenuity dedication and perseverance As the Federation looks toward the 21st century it also needs to be an effective communicator not only of science to scientists but of science to the publ1ic and the nation No less compelling is the need for the FAS EB officers and Governing Board to couple the obvious needs and aspirations of its memshybership to appreciation of less transparent problems which can insidiously inhibit the advancement of biology and medicine The Federation was founded to continue intershycommunication among developing subdisciplines It is now apparent that communication and action in areas of converging interest will become the preoccupation of FAS EB as it nears the year 2000

Learned scientific societies have paralleled the more ancient craftsmens guilds in their evolution and growth to become imposing forces in national affairs Assemshyblages of persons addressing like problems with similar skills and perceptions must also mesh with the complex society that supports them The Constituent Societies of the Federation are forging techniques and producing knowledge which will be the foundation of biology and medicine in the next century Research demands raw products a cadre and markets that guilds also required Skilled intelligent practitioners depend on mecha nisms for explaining the value of their products as well as a means for distribution The Federation speaks to all of these requirements It avails nothing to have an assemblage of biomedical researchers if society is too poorly informed about the product to appreciate its value There will be little point in attempting to continue research if the necessary ra materia ls disappear whether they be laboratories suppl ies equipment or the animals on which biological experimentation ultimately depends There will be no need or a cadre of dedicated researchers who supply new knowledge if society remains too weakly educated to understand the new knowledge To produce science and not have it used is a waste when it could be employed for the practical curing of illness for the manshyagement of industry or simply to explain mans place in the universe The Federation Board has begun to recognize that its policies must be shaped to the constantly evolvshy

ing pressures of both science and society Scientific comshymunication must clearly involve those major issues which all face Skills of the highest order must be available to communicate a better understanding of science as it enters the 21st century

When the Federation President Officers and Board speak they must carefully consider which constituency is listening The scientists of the Federation should hear about Federation programs they should evaluate Federshyation services they need to learn about Federation finances and they must participate in Federation plans for the future When the public listens they must be made appreciative of the techniques of biomedical research they must understand what problems are being attacked how they are being approached what new and novel methodologies are being exploited and what the new disshycoveries contribute to their ultimate welfare When Conshygress listens it must understand the need for funding why costs in medical research inevitably rise as well as the financial benefits of the increased productivity of a healthy population When regulatory agencies listen the Federshyation must be careful to explain why many new regu ~ ashy

tions which may appear to be well-meaning may do more damage than good ReQulations must be enacted not only for the protection of society but to expedite the advancement of research Finally when the President of the United States listens he must understand that his obshyligation to the total welfare of the nation must employ the most modern information the biological and medical research community can provide Otherwise his national policies are bound to fail

The art of communication therefore is one to be newly cultivated at the Federation The Board in recognizing the importance of an enhanced intercommunication is planning a Retreat in the Fall of 1988 to discuss the future course of the Federation We have a rich heritage and a future filled with duties and obligations which we are only able to perceive with imperfect vision The evolution of scientific societies just as the evolution of society in general can rarely be predicted However as the Federashytion looks to the 21st century there is every assurance that its mission will be larger its role in society more compelling and its science of greater excellence

The past seventy-five years have seen an unparalleled growth for FASEB With that growth have also come greater responsibilities to a world in which we must exist in an increasingly crowded mode The challenges scienshytifically and organizationally must be met with the same ingenuity and foresight that characterized our founders At this crossroads in our history there is every reason to believe that given a careful sympathetic and wise disshycussion of our problems and opportunities the future history of the Federation will continue to merit the apshyplause that it has received for its past seventy-five years of service

Franklyn G Knox President 1987-88

REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

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Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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32 31 fshy

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27 fshy

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24 fshy

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gj 22 fshy

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

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z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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Presidents Messages

Dr Bloom

President 1986-87

It has been an extraordinary privilege to serve as Presishydent of FASEB and a particular pleasure during the celebration of the 75th anniversary of the Federation of American Societ ies for Experimental Biology The years since a small band of researchers assembled in Cleveland to found an organization to preserve the unity of the biological sciences in the face of inevitable specialization in many subdisciplines have been fruitful both for the Federation and for its members Initial ly designed to insure that the three societies that encomshypassed all of biomedical research - The American Physshyiological Society the American Society of Biological Chemists and the American Society for Pharmacology and Experimental Therapeutics ~ shared advancing knowledge and techniques of their separate disciplines the Federation has become an increasingly important force for the Societies and affiliates that comprise the Federation The constituent membership of FASEB Soshycieties has increased from 450 in 1912 to 32854 in 1987 The budget for its operations has increased from a few hundred dollars to well over 10 million By successfully serving to foster the development of research and comshymunication in the biomedical scientific disciplines FASEB has thrust upon it an ever greater role and responsibility in representing science in a broader conshytext to the nation

I must confess that my greatest surprise during my year as President of FASEB was learning how important and seriously FASEB is regarded by those who formulate public poi icy in the areas of science health and educashytion FASEB both is its member Societies-and more than the sum of its parts Each of the sotieties has inshytellectually something quite special to contribute and at any given time each of the societies must address specific problems and issues of special concern And it is with each of the Societies that the individual members find it most congenial to identify For me it was wondershyful to be able to celebrate the centennial and accomshyplishments of The American Physiological Society for example whose hundred years of service to biology and medicine preceded the Federation by 25 years Yet at the same time physiology as well as all other biomedical disciplines which depend critically on the ability to pershyform experiments in animal systems are increasingly threatened ltis difficult for any individual society to deshy

fend its needs on grounds of principle without appearshying to argue solely from a position of self-interest It has thus become a major responsibility of FASEB both to support the activities of the APS and other groups in making clear that the use of animals in research is a scientific necessity for the most humane ends and to support the establishment of the most demanding and vigilant standards possible to ensure the humane care and use of animals for experimentation In another soshycietal area the response of the Biological Chemists to accommodate the needs of the new generation of molecular biologists was most gratifying and the newly designated American Society for Biochemistry and Molecular Biology was most warmly welcomed by FASEB

The President of FASEB is called upon to provide tesshytimony before the Congress on needs and opportunities in biomedical research It was both a personal thrill and an enormous responsibility to prepare in the most coshygent way I knew with extraordinarily valuable help from the FASEB Office of Public Affairs the most useful inforshymation on the opportunities needs and problems of the biomedical research community II learned for example that the integrity of FASEB its principled positions its reliance on the highest level of expertise within the scientific community and its independent positions were everywhere highly respected It was most interestshying as we walked around the Senate office building to see one congressional staff person after another greet Gar Kaganowich Director of the FASEB Office of Public Affairs warmly and knowingly in recognition of his exshypertise and service on the Hill in the area of health The fact that FAS EB represents 32000 active scientists as well as the disciplines and their societies has an enorshymous impact No one scientist no one discipline inshyterest group or scientific society is as likely to be as inshyfluential as a large society that can by reasoned positions represent fairly the views of a large segment of the scientific community

No less edifying for me was the fact that many of the premises and assumptions which most of us as scienshytists commonly take for granted are by no means universally shared In testimony before the House Comshymittee on Science and Technology I was stunned to hear powerful invectives against the merit system and peer group review as the basis for award of funds for research There is resentment in many quarters that some institutions States and regions receive more research fund than others The ready interpretation is that there must be a conspiratorial old boy network that is responsible The argument is emotionally appealshying to many (even if it is difficult to discern the logic of peer reviewers from Yale for example preferring for pershyverse reasons to award funds to their competitors at Harvard rather than those in Idaho) At those hearings a strong case was also made that inequities of the past have disadvantaged historical minorities of this country perhaps most of all in science and that there is an urshy

gent need to support and encourage participation of minorities in the scientific enterprise In my view the case is compelling If there are not minority scientists and teachers as colleagues and role models bright stushydents will not have equal access to science and we would be deprived of important scientific contributions A not dissimilar case was made by the small colleges and universities who feel unable to compete with larger institutions at the forefront of scientific research for fedshyeral funds but who provide a large source of teaching in the sciences and motivation of students to enter the sciences We must find ways to support the teaching base of the scientific enterprise and support institutions of emerging excellence in a way that maintains the comshymitment to merit What is unclear is the best means to assure that My personal view is that automatic setshyasides removal of funds from the pool of research grant competitiorl for special purposes is a very dangerous way to address that situation because as special interest groups become more and more powerful small setshyasides become larger and open the way to special legisshylation that ultimately bypasses the merit system leaving too little support for research at the cutting edges of science and which diminishes the creativity and comshypetitiveness of American science I believe it is vitally imshyportant for each of the societies and members to reflect on these issues and to help FAS EB come to a position that is responsive to the national needs yet consistent with our commitment to the highest standards of excelshylence in science

Although science will always be the major preoccupashytion of the Federation FASEB is more and more looked to for a leadership role in the area of public information and public affairs about science There are major challenges to persuading citizens that the support of research and science which often pay benefits to the country and the world over the long period are worthy of support at a time of increasing fiscal constraints It is important to try to protect the research enterprise from harmful and restrictive legislation regulation and imshypediments of the search for new knowledge and progress Just as the President is responsible for fairly reflecting the views of the Societies and their members so is he compelled on occasion to provide a degree of pe~sonal vision and leadership My greatest disappointment durshying my tenure at FASEB was my failure to persuade my colleagues to reconsider what I regard as an increasingly hostile attitude of scientists towards the universities in which most of us work The basic problem of reshysearchers and the universities derives fundamentally from the same source- the underfunding of research The failure of the universities to rationalize or to explain to their faculties the basis for uses and responsibilities of indirect cost reimbursement and the fact that the universities are not receiving close to the full cost of sponsored research has contributed significantly to this negative attitude Many of my colleagues think that the universities are really the adversary rather than the large

number of special interest groups demanding other uses of national resources than research health and educashytion As I tried to indicate above we have real enemies but the universities are not among them It is ironic that as President of FAS EB I was charged with supporting proposals from the House arid Senate to provide much needed funding for research facilities which has been absent from the NIH budget for the past 16 years As one who works in a 35 year old building full of asbestos I know first-hand that ou r research facilities are deterishyorating so rapidly that this nation is losing its competishytive edge in many aspects of science At the same time I was also charged to request that usage allowance and indirect cost reimbursement to the universities that would house such facilities be reduced It should be obvious that building new facilities represents not a sinshygle time cost for the universities and research institushytions but a continuing cost in power maintenance security etc It has been my position that we need apshypropriation of additional budgetary funds specifically designated for facilities rather than the unpleasant choice of removing funds allocated for direct cost of research to provide for the institutional costs of mainshytaining that research Because I believe the viability and excellence of the universities is a pricipal determinant of the quality of research in this country I can only make a plea to each of the members of FASEB and their Socishyeties as well as to the university administrators to try to work together for a reasonable solution to the dilemma The universities must understand the inshydividual scientists needs to be allowed to pursue the research that the Congress believed it was supporting when it provided the research appropriations the scienshytists must support universities efforts to insure that the physical and intellectual environment to foster that research is not eroded This is not an issue to be overshysimplified or trivialized (They use our money to subsishydize the poets) We must realize that we have a great deal more in common at stake on this issue and must try to understand each others needs and work togethe r If we can the opportunities are unprecedented for Eshy

development of new knowledge and scientific i tions all urgently needed for survival not on dividuals but of our complex society and its j S

in the years ahead Finally I must confess that my greatest urshy

ing my tenure was working with the lVO l dedishycated and supportive group of people assc ated with FAS EB The scientists representing ea-- Soc ety on the Board and the executive officers of eac omiddot he societies were challenging stimulating and e ective Dr Krauss Mr Rice Gar Kaganowich the heads and staffs of each of the FASEB departments especially the Office of Pubshylic Affairs gave me a un iq e education No group of people could have been more helpful and I wish to thank them all most sincerely

Barry R Bloom President 1986-87

Dr Knox

President 1987-88

Skills in communication are the stock in trade of any effective teacher The ability to communicate to students the incredibly large number of facts that are required for mastery as well as the philosophical poise that is essenshytial for the pursuit of any discipline requires ingenuity dedication and perseverance As the Federation looks toward the 21st century it also needs to be an effective communicator not only of science to scientists but of science to the publ1ic and the nation No less compelling is the need for the FAS EB officers and Governing Board to couple the obvious needs and aspirations of its memshybership to appreciation of less transparent problems which can insidiously inhibit the advancement of biology and medicine The Federation was founded to continue intershycommunication among developing subdisciplines It is now apparent that communication and action in areas of converging interest will become the preoccupation of FAS EB as it nears the year 2000

Learned scientific societies have paralleled the more ancient craftsmens guilds in their evolution and growth to become imposing forces in national affairs Assemshyblages of persons addressing like problems with similar skills and perceptions must also mesh with the complex society that supports them The Constituent Societies of the Federation are forging techniques and producing knowledge which will be the foundation of biology and medicine in the next century Research demands raw products a cadre and markets that guilds also required Skilled intelligent practitioners depend on mecha nisms for explaining the value of their products as well as a means for distribution The Federation speaks to all of these requirements It avails nothing to have an assemblage of biomedical researchers if society is too poorly informed about the product to appreciate its value There will be little point in attempting to continue research if the necessary ra materia ls disappear whether they be laboratories suppl ies equipment or the animals on which biological experimentation ultimately depends There will be no need or a cadre of dedicated researchers who supply new knowledge if society remains too weakly educated to understand the new knowledge To produce science and not have it used is a waste when it could be employed for the practical curing of illness for the manshyagement of industry or simply to explain mans place in the universe The Federation Board has begun to recognize that its policies must be shaped to the constantly evolvshy

ing pressures of both science and society Scientific comshymunication must clearly involve those major issues which all face Skills of the highest order must be available to communicate a better understanding of science as it enters the 21st century

When the Federation President Officers and Board speak they must carefully consider which constituency is listening The scientists of the Federation should hear about Federation programs they should evaluate Federshyation services they need to learn about Federation finances and they must participate in Federation plans for the future When the public listens they must be made appreciative of the techniques of biomedical research they must understand what problems are being attacked how they are being approached what new and novel methodologies are being exploited and what the new disshycoveries contribute to their ultimate welfare When Conshygress listens it must understand the need for funding why costs in medical research inevitably rise as well as the financial benefits of the increased productivity of a healthy population When regulatory agencies listen the Federshyation must be careful to explain why many new regu ~ ashy

tions which may appear to be well-meaning may do more damage than good ReQulations must be enacted not only for the protection of society but to expedite the advancement of research Finally when the President of the United States listens he must understand that his obshyligation to the total welfare of the nation must employ the most modern information the biological and medical research community can provide Otherwise his national policies are bound to fail

The art of communication therefore is one to be newly cultivated at the Federation The Board in recognizing the importance of an enhanced intercommunication is planning a Retreat in the Fall of 1988 to discuss the future course of the Federation We have a rich heritage and a future filled with duties and obligations which we are only able to perceive with imperfect vision The evolution of scientific societies just as the evolution of society in general can rarely be predicted However as the Federashytion looks to the 21st century there is every assurance that its mission will be larger its role in society more compelling and its science of greater excellence

The past seventy-five years have seen an unparalleled growth for FASEB With that growth have also come greater responsibilities to a world in which we must exist in an increasingly crowded mode The challenges scienshytifically and organizationally must be met with the same ingenuity and foresight that characterized our founders At this crossroads in our history there is every reason to believe that given a careful sympathetic and wise disshycussion of our problems and opportunities the future history of the Federation will continue to merit the apshyplause that it has received for its past seventy-five years of service

Franklyn G Knox President 1987-88

REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

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gj 22 fshy

~ 21 f shy

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20 fshy

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17 fshy

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II ~

10 I shy

9 I shy

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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gent need to support and encourage participation of minorities in the scientific enterprise In my view the case is compelling If there are not minority scientists and teachers as colleagues and role models bright stushydents will not have equal access to science and we would be deprived of important scientific contributions A not dissimilar case was made by the small colleges and universities who feel unable to compete with larger institutions at the forefront of scientific research for fedshyeral funds but who provide a large source of teaching in the sciences and motivation of students to enter the sciences We must find ways to support the teaching base of the scientific enterprise and support institutions of emerging excellence in a way that maintains the comshymitment to merit What is unclear is the best means to assure that My personal view is that automatic setshyasides removal of funds from the pool of research grant competitiorl for special purposes is a very dangerous way to address that situation because as special interest groups become more and more powerful small setshyasides become larger and open the way to special legisshylation that ultimately bypasses the merit system leaving too little support for research at the cutting edges of science and which diminishes the creativity and comshypetitiveness of American science I believe it is vitally imshyportant for each of the societies and members to reflect on these issues and to help FAS EB come to a position that is responsive to the national needs yet consistent with our commitment to the highest standards of excelshylence in science

Although science will always be the major preoccupashytion of the Federation FASEB is more and more looked to for a leadership role in the area of public information and public affairs about science There are major challenges to persuading citizens that the support of research and science which often pay benefits to the country and the world over the long period are worthy of support at a time of increasing fiscal constraints It is important to try to protect the research enterprise from harmful and restrictive legislation regulation and imshypediments of the search for new knowledge and progress Just as the President is responsible for fairly reflecting the views of the Societies and their members so is he compelled on occasion to provide a degree of pe~sonal vision and leadership My greatest disappointment durshying my tenure at FASEB was my failure to persuade my colleagues to reconsider what I regard as an increasingly hostile attitude of scientists towards the universities in which most of us work The basic problem of reshysearchers and the universities derives fundamentally from the same source- the underfunding of research The failure of the universities to rationalize or to explain to their faculties the basis for uses and responsibilities of indirect cost reimbursement and the fact that the universities are not receiving close to the full cost of sponsored research has contributed significantly to this negative attitude Many of my colleagues think that the universities are really the adversary rather than the large

number of special interest groups demanding other uses of national resources than research health and educashytion As I tried to indicate above we have real enemies but the universities are not among them It is ironic that as President of FAS EB I was charged with supporting proposals from the House arid Senate to provide much needed funding for research facilities which has been absent from the NIH budget for the past 16 years As one who works in a 35 year old building full of asbestos I know first-hand that ou r research facilities are deterishyorating so rapidly that this nation is losing its competishytive edge in many aspects of science At the same time I was also charged to request that usage allowance and indirect cost reimbursement to the universities that would house such facilities be reduced It should be obvious that building new facilities represents not a sinshygle time cost for the universities and research institushytions but a continuing cost in power maintenance security etc It has been my position that we need apshypropriation of additional budgetary funds specifically designated for facilities rather than the unpleasant choice of removing funds allocated for direct cost of research to provide for the institutional costs of mainshytaining that research Because I believe the viability and excellence of the universities is a pricipal determinant of the quality of research in this country I can only make a plea to each of the members of FASEB and their Socishyeties as well as to the university administrators to try to work together for a reasonable solution to the dilemma The universities must understand the inshydividual scientists needs to be allowed to pursue the research that the Congress believed it was supporting when it provided the research appropriations the scienshytists must support universities efforts to insure that the physical and intellectual environment to foster that research is not eroded This is not an issue to be overshysimplified or trivialized (They use our money to subsishydize the poets) We must realize that we have a great deal more in common at stake on this issue and must try to understand each others needs and work togethe r If we can the opportunities are unprecedented for Eshy

development of new knowledge and scientific i tions all urgently needed for survival not on dividuals but of our complex society and its j S

in the years ahead Finally I must confess that my greatest urshy

ing my tenure was working with the lVO l dedishycated and supportive group of people assc ated with FAS EB The scientists representing ea-- Soc ety on the Board and the executive officers of eac omiddot he societies were challenging stimulating and e ective Dr Krauss Mr Rice Gar Kaganowich the heads and staffs of each of the FASEB departments especially the Office of Pubshylic Affairs gave me a un iq e education No group of people could have been more helpful and I wish to thank them all most sincerely

Barry R Bloom President 1986-87

Dr Knox

President 1987-88

Skills in communication are the stock in trade of any effective teacher The ability to communicate to students the incredibly large number of facts that are required for mastery as well as the philosophical poise that is essenshytial for the pursuit of any discipline requires ingenuity dedication and perseverance As the Federation looks toward the 21st century it also needs to be an effective communicator not only of science to scientists but of science to the publ1ic and the nation No less compelling is the need for the FAS EB officers and Governing Board to couple the obvious needs and aspirations of its memshybership to appreciation of less transparent problems which can insidiously inhibit the advancement of biology and medicine The Federation was founded to continue intershycommunication among developing subdisciplines It is now apparent that communication and action in areas of converging interest will become the preoccupation of FAS EB as it nears the year 2000

Learned scientific societies have paralleled the more ancient craftsmens guilds in their evolution and growth to become imposing forces in national affairs Assemshyblages of persons addressing like problems with similar skills and perceptions must also mesh with the complex society that supports them The Constituent Societies of the Federation are forging techniques and producing knowledge which will be the foundation of biology and medicine in the next century Research demands raw products a cadre and markets that guilds also required Skilled intelligent practitioners depend on mecha nisms for explaining the value of their products as well as a means for distribution The Federation speaks to all of these requirements It avails nothing to have an assemblage of biomedical researchers if society is too poorly informed about the product to appreciate its value There will be little point in attempting to continue research if the necessary ra materia ls disappear whether they be laboratories suppl ies equipment or the animals on which biological experimentation ultimately depends There will be no need or a cadre of dedicated researchers who supply new knowledge if society remains too weakly educated to understand the new knowledge To produce science and not have it used is a waste when it could be employed for the practical curing of illness for the manshyagement of industry or simply to explain mans place in the universe The Federation Board has begun to recognize that its policies must be shaped to the constantly evolvshy

ing pressures of both science and society Scientific comshymunication must clearly involve those major issues which all face Skills of the highest order must be available to communicate a better understanding of science as it enters the 21st century

When the Federation President Officers and Board speak they must carefully consider which constituency is listening The scientists of the Federation should hear about Federation programs they should evaluate Federshyation services they need to learn about Federation finances and they must participate in Federation plans for the future When the public listens they must be made appreciative of the techniques of biomedical research they must understand what problems are being attacked how they are being approached what new and novel methodologies are being exploited and what the new disshycoveries contribute to their ultimate welfare When Conshygress listens it must understand the need for funding why costs in medical research inevitably rise as well as the financial benefits of the increased productivity of a healthy population When regulatory agencies listen the Federshyation must be careful to explain why many new regu ~ ashy

tions which may appear to be well-meaning may do more damage than good ReQulations must be enacted not only for the protection of society but to expedite the advancement of research Finally when the President of the United States listens he must understand that his obshyligation to the total welfare of the nation must employ the most modern information the biological and medical research community can provide Otherwise his national policies are bound to fail

The art of communication therefore is one to be newly cultivated at the Federation The Board in recognizing the importance of an enhanced intercommunication is planning a Retreat in the Fall of 1988 to discuss the future course of the Federation We have a rich heritage and a future filled with duties and obligations which we are only able to perceive with imperfect vision The evolution of scientific societies just as the evolution of society in general can rarely be predicted However as the Federashytion looks to the 21st century there is every assurance that its mission will be larger its role in society more compelling and its science of greater excellence

The past seventy-five years have seen an unparalleled growth for FASEB With that growth have also come greater responsibilities to a world in which we must exist in an increasingly crowded mode The challenges scienshytifically and organizationally must be met with the same ingenuity and foresight that characterized our founders At this crossroads in our history there is every reason to believe that given a careful sympathetic and wise disshycussion of our problems and opportunities the future history of the Federation will continue to merit the apshyplause that it has received for its past seventy-five years of service

Franklyn G Knox President 1987-88

REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

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- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

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z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

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I- 110

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903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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Dr Knox

President 1987-88

Skills in communication are the stock in trade of any effective teacher The ability to communicate to students the incredibly large number of facts that are required for mastery as well as the philosophical poise that is essenshytial for the pursuit of any discipline requires ingenuity dedication and perseverance As the Federation looks toward the 21st century it also needs to be an effective communicator not only of science to scientists but of science to the publ1ic and the nation No less compelling is the need for the FAS EB officers and Governing Board to couple the obvious needs and aspirations of its memshybership to appreciation of less transparent problems which can insidiously inhibit the advancement of biology and medicine The Federation was founded to continue intershycommunication among developing subdisciplines It is now apparent that communication and action in areas of converging interest will become the preoccupation of FAS EB as it nears the year 2000

Learned scientific societies have paralleled the more ancient craftsmens guilds in their evolution and growth to become imposing forces in national affairs Assemshyblages of persons addressing like problems with similar skills and perceptions must also mesh with the complex society that supports them The Constituent Societies of the Federation are forging techniques and producing knowledge which will be the foundation of biology and medicine in the next century Research demands raw products a cadre and markets that guilds also required Skilled intelligent practitioners depend on mecha nisms for explaining the value of their products as well as a means for distribution The Federation speaks to all of these requirements It avails nothing to have an assemblage of biomedical researchers if society is too poorly informed about the product to appreciate its value There will be little point in attempting to continue research if the necessary ra materia ls disappear whether they be laboratories suppl ies equipment or the animals on which biological experimentation ultimately depends There will be no need or a cadre of dedicated researchers who supply new knowledge if society remains too weakly educated to understand the new knowledge To produce science and not have it used is a waste when it could be employed for the practical curing of illness for the manshyagement of industry or simply to explain mans place in the universe The Federation Board has begun to recognize that its policies must be shaped to the constantly evolvshy

ing pressures of both science and society Scientific comshymunication must clearly involve those major issues which all face Skills of the highest order must be available to communicate a better understanding of science as it enters the 21st century

When the Federation President Officers and Board speak they must carefully consider which constituency is listening The scientists of the Federation should hear about Federation programs they should evaluate Federshyation services they need to learn about Federation finances and they must participate in Federation plans for the future When the public listens they must be made appreciative of the techniques of biomedical research they must understand what problems are being attacked how they are being approached what new and novel methodologies are being exploited and what the new disshycoveries contribute to their ultimate welfare When Conshygress listens it must understand the need for funding why costs in medical research inevitably rise as well as the financial benefits of the increased productivity of a healthy population When regulatory agencies listen the Federshyation must be careful to explain why many new regu ~ ashy

tions which may appear to be well-meaning may do more damage than good ReQulations must be enacted not only for the protection of society but to expedite the advancement of research Finally when the President of the United States listens he must understand that his obshyligation to the total welfare of the nation must employ the most modern information the biological and medical research community can provide Otherwise his national policies are bound to fail

The art of communication therefore is one to be newly cultivated at the Federation The Board in recognizing the importance of an enhanced intercommunication is planning a Retreat in the Fall of 1988 to discuss the future course of the Federation We have a rich heritage and a future filled with duties and obligations which we are only able to perceive with imperfect vision The evolution of scientific societies just as the evolution of society in general can rarely be predicted However as the Federashytion looks to the 21st century there is every assurance that its mission will be larger its role in society more compelling and its science of greater excellence

The past seventy-five years have seen an unparalleled growth for FASEB With that growth have also come greater responsibilities to a world in which we must exist in an increasingly crowded mode The challenges scienshytifically and organizationally must be met with the same ingenuity and foresight that characterized our founders At this crossroads in our history there is every reason to believe that given a careful sympathetic and wise disshycussion of our problems and opportunities the future history of the Federation will continue to merit the apshyplause that it has received for its past seventy-five years of service

Franklyn G Knox President 1987-88

REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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---

--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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32 31 fshy

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29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

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gj 22 fshy

~ 21 f shy

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19 f shy

18 fshy

17 fshy

16 fshy

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II ~

10 I shy

9 I shy

8 f-

7 6 f-

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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REVIEW OF FEDERATION ACTIVITIES 1987

INTRODUCTION

The completion of the Federations construction proshygram has opened a new era to the Federation for two prinshyciple reasons First not only is each of the Member Societies housed effective~y for the pursuit of their many programs in support of their individual Societies but the Federation has gained an adequate facility for stagingshymany conferences and meetings in its Conference Center which now comprises an auditorium plus six large conshyference rooms that can house a wide variety of meetings for assemblies ranging up to 300 persons Second the Federation is attracting a number of other biological and medical research societies that have come to live on the Beaumont Campus and to share its facilities The presshyence of these Societies not only creates opportunities and strength for joint actions in the interest of biomedical research nationaHy but it provides economies of size and quality in the use of the various services of the Federashytion on a cost-share basis with the Member Societies Efficient modern and forward-looking conduct of Socishyety affairs can now be handled in a hospitable environshyment that is both pleasant for work and conducive to the inspiration of committees and governing boards of the various organizations who are beginning to look to the 21st century for an expanding role for biological and medshyical research The 29 Societies which are resident on the Federation campus share a common goal- the advanceshyment of biology and medicine to increase new knowledge and better the health of mankind

The learned scientific societies in biology and medicine have for a long time been characterized by their disunity The discord of many voices speaking for the many subshydiscip ~ines of biology has resulted in confusion not only academically but in the halls of Congress and at the White House Powerful scientific societies in the physical sciences and in engineering have for a long time outshystripped the effectiveness of the biol09ists in mounting programs and compelling respect for their activities However in recent years there has been a gradual awakenshying of both the Federation Governing Board and the Boards and Councils of many learned societies that unitshying for the future is the only logical way to ensure a reasonable understanding of biological science All must be able to take advantage of the many opportunities that will be presented by a strong and powerfu l central organishyzation that serves them effectively

The Federation headquarters operation is described thoroughly in this Annual Report However it should be said in summary that the Federation provides many roushytine services to the Societies resident on the Beaumont

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campus but also manages a number of programs that serve not only those Societies but all of biology The income derived from these activities is sufficient to allow for the Federation to more nearly approach self-sufficiency and to provide revenues to match its expenses It has also begun to look at the development of modest reserves to allow for growth of new programs and to ensure the Federation -which has now reached an annual budget of $10 million - the kind of corporate strategy which will ultimately strengthen all of its constituent members

The Federation has now an able and vigorous Office of Public Affairs the largest and most effective in any bioshylOgical organization in Washington Its Director Gar Kaganowich brings 20 years of experience on Capitol Hill to his understanding of the appropriate role of the Federshyation in reviewing understanding and interacting during the development of public policy Its responsibility extends not only to informing the entire membership of the Federashytion of the progress of legislation that affects its welfare but also allows for an effective dialogue with Congress the White House and those regulatory agencies that are so crucial to the healthy maturity of biology in the United States The Newsletter the Feature Service The FASEB Journal all carry reports about public affairs and an excellent science writer Roger Johnson who has a docshytorate in biochemistry are all helping to enhance the visibility of biologica~ research both to the membership and to the nation at large

The Life Sciences Research Office which undertakes numerous senior evaluations of Federal and private activshyities in science provides many channels for the advice and counsel of working scientists to deciSion-making at the Federal IIeveI and in the private sector It has produced an enviable series of reports studies and analyses that are widely accepted and frequently quoted as public policy develops and as evaluation of scientific research improves It has been instrumental in bringing peer review mechashynisms to agencies of government that have been criticized for having inactive or ineffective pew review systems in the past The Governing Board is now considering a better mechanism for funding of the Life Sciences Research Office which needs a strategy for maintaining its staff in the face of fluctuating contracts for its services in the years ahead There has been a steady increase in the role the activities and the financing of the Life Sciences Reshysearch Office Annually its budget approximates $1 million and is self-supporting LSRO provides a magnificent opshyportunity for the Federation to serve the advancement of science in this country

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

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--

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

-12shy

FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

-fshy

f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

The Annual Meeting with all of its galaxy of exciting events accompanying the meetings of the individual Socishyeties and guest Societies who join it is continuing its popularity The Annual Meeting is growing in the number of attendees the respect of exhibitors and the quality of science presented there The Annual Meeting annually leads the Federation in revenue-generation a revenue which helps support other divisions of the Federation which need assistance

The Summer Research Conference series which proshyvides a summer theater for presentation of scientific achievements to small initmate groups has also steadily increased in popularity It has tripled in size since its initishyation in 1982 and has received enthusiastic support from the private sector of the nation with contributions from some 87 separate corporations to assist in the registrashytion fees and travel of those scientists attending that meetshying Both the Vermont site in Saxtons River and the Colorado site at Copper Mountain have now reached capacity with eight weekly sessions in Colorado and ten in Vermont The Advisory Committee for the Conferences is delighted to have a steady series of proposals for conshyferences and carefully selects those which are likely to appeal to the largest number of the membership and promise the most excit ing science It should be noted that both the Summer Research Conferences and the Annual Meeting appeal not only to members of constituent Societies of the Federation but in both cases are attended by more non-members than members with the influence of the Federation extending well beyond the boundaries of the membership of the constituent Societies

The Federation and its new Conference Center is beginshyning to attract other organizations including NIH and research societies in the Washington area as a place for meetings It is serving to help defray costs of the Member Societies and provides a focal point for the interest of biologists both nationally and internationally It is becoming a location which is visited by foreign guests and delegations in increasing numbers and in the years ahead its influence and effectiveness should extend well beyond the United States

The FASEB Journal edited brilliantly by Will iam Whelan is forging new vistas in scientific communication With a Governing Board of outstanding experts intershynationally it is providing to the readership of the Federashytion an unparalleled mix of papers and publ ications of unquestionable importance and ster ling quality In FJ science can be followed rapidly both in the form of origi shynal review papers and in summaries of the cutting edge of sc ience Congratulations are coming from all sides for The FASEB Journal and its contribu tions are being picked up repeatedly by he major newspapers in the United States and can often be found quoted on the front

pages of such outstanding publications as The Wall Street Journal and The New York Times Scientists looking for a rapid and effective communication to a large number of readers can do no better than publish in The FASEB Journal where their work receives immediate and widespread attention and a circulation of 30000

The Federations Education Committee is also beginshyning to effectively focus on its role in the future years With programs in minority access to biology and medishycine continuing education for physicians tutorials and short courses it is forging a promising new role for the Federation with very modest financial backing

The Federations various service departments have finished another year of effective leadership with the level of work steadily increasing in every department The Fedshyeration enjoys its own Print Shop Composition and Redactory Service an effective Publications Department with Lewis Gidez one of the outstanding biological editors of the country as its director The Data Processing Department has been reorganized and is providing effecshytive service in the rapidly growing field of computer techshynology Continual systems of education and updating are being provided to all of the 274 employees on the Federshyation campus who are in need of assistance guidance and counsel as the computer race proceeds The Federshyation has invested considerable sums of money in an exshycellent central computer operation and is in a position to provide the very latest in technical advice and guidance to those departments and societies who need it The Fedshyeration also continues to provide accounting service bill shying and dues collection ma iling addressing and purchasshying services and the services of the Buildings and Grounds Department to all residents of the Campus and even to some biological societies who are not resident on campus A Personnel Department assures the best emshyployment with the fairest and most modern standards of personnel management available to the organizat ion Conshysiderable time and attention is devoted to keeping the services to be as effective as possible commensurate with the resources of the Federation

Few scientific societies in the Washington area enjoy a more congenial habitat and more mutual support of professionals with a common objective than does the Federation The mission of the Federation has always been the furtherance of biological and medical research in this country As it looks to the 21st century that task is no less great than the challenge and opportunity within it The Federation enjoys a dedicated group of employees excellent fac ilities and an opportunity to do many great things for science It will respond to the wisdom vision and dedication of the Governing Board and its officers They must look to th e future as a touch stone for their policies in the present

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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- --- ---- --

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-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

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- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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o Affiliate Society Members

0 Gross Revenue

D Employees

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903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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GOVERNING BOARD

The policies for the Federation are established by a Governing Board which meets two or three times each year The first meeting in 1987 was March 29 in conjuncshytion with the Annual Meeting in Washington DC The Board met on the Federation Campus in Bethesda Its second meeting was also in Beaumont House in Bethesda on November 24 During the Board meetings the memshybers have an opportunity to review all the aspects of the Federation and to establish policies which the Executive Director executes on their behalf during the succeeding year The meetings constitute important milestones in the development of the Federation Its future depends on the senior scientists who comprise the Board for maximum wisdom and guidance in the interest of biology and medicine

The meeting of the Board was a specially happy occashysion in the Spring of 1987 because it coincided with the celebration of the 75th anniversary or Diamond Jubilee of the Federation - a notable event which was further highlighted by the dedication of the two new wings of the Milton O Lee Building which almost doubled the available office space for the Federation headquarters The Board also enjoyed the opportunity to extend its congratushylations to its oldest constituent Society The American Physiological Society which was jointly celebrating its 100th anniversary

At the Board meeting a series of topics were discussed The Board approved a carefully crafted plan of the Public Affairs Committee which would urge upon the nation sigshynificant increases in medical research funding as part of a five-year plan to meet more effectively the health reshysearch needs of the nation The Federation Board also took pleasure in approving the 1986 Awards for Public Service to be made to two distinguished contributors to the success of biomedical research in the United States The Board named Mary Lasker of New York City and Ann Landers the well-known columnist as recipients of Public Service Awards These awards were presented to Mary Lasker for her philanthropic contributions to biology and medicine and for her decades of support and active chamshypioning of medicine and medical research Ann Landers was recognized for explaining the necessity for the use of animals in biological and medical research in her synshydicated columns in the newspapers of the nation Each of the women was presented with a Steuben glass eagle with inscriptions of the respect of the Federation on each Mary Lasker received her award in her New York City apartment from the hands of the President Barry Bloom with a number of the Board members in attendance on August 4 Ann Landers was the guest of the Federation in October of 1987 and addressed a distinguished audience in the new FASEB Conference Center in the Milton O Lee Building The luncheon for Ann Landers presided over

by President Franklyn Knox was attended by dignitaries of the US Public Health Service the National Institutes of Health and adjoining biomedical organizations as well as by a large number of members of the Governing Board

The Board also asked the President and the Executive Director to explore means of enhanced interaction with the non-member biomedical research societies in resishydence on the Beaumont campus of which there are now twenty-two and also to discuss at length with the Council of The American Society for Cell Biology to determine how better interactions can take place in behalf of biolshyogy as a whole The hope is that an exchange of views with the Affiliate Society and with the other Societies that are close to the Federation in concept and function will lead to a better understanding of the route of growth for the Federation in the years ahead

An important part of the Board meeting in the Spring was the dedication ceremony presided over by Dr Bloom It featured greetings from the National Institutes of Health brought by its Director Dr James Wyngaarden It also featured an appreciation enunciated by Dr Carl Vestling Chairman of the FASEB Development Fund Committee which raised $1746000 to help in the construction of the building It was especially poignant to have an address entit led Retrospect and Vision by Dr K K Chen who had been President of the Federation in 1954 and who had been instrumental in securing the Beaumont Campus for the Federation during the early 1950s Dr Chen and his family also had been major contributors to the Deshyvelopment Fund and were honored by the association for their vis ion and understanding in the growth and the deshyve lopment of the Federation In his address to the Board and attendant guests Dr Chen commented in part as follows

The Board of the Federation and Dr Lee Dr Devineau and the Board of Trustees of The American Physiologshyica l Society became interested in a private estate in Bethesda called the Hawley Estate which consisted of a three-story mansion and 38 acres of land The descendants of Hawley who was a contractor were asking only $225000 for the property The Federation Board arranged to purchase the property and started to move in on August 12 1954 Fourteen years later the Milton Lee Building was dedicated and 19 years later the present new wings were completed and are being dedicated today All the hard work has been done by Professor Vestling Dr Krauss and their staff members and the mention of my name is an overshygenerosity of the Federation My contribution is very small I am happy to see so many young members joinshying the Federation on the Beaumont Campus With this additional 50000 square feet of office space the

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building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

-12shy

FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

-13shy

------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

-fshy

f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

building facilities will serve you well now and in the future I take this opportunity to thank the Federation as a whole

Dr Chen was honored by a standing ovation by all members in attendance and the President Dr Bloom announced that the flew auditorium would from thenceshyforth be known as the K K Chen Auditorium in honor of the speaker Dr Chen Dr Bloom Dr Vestling Dr Wyngaarden and Dr Krauss then participated in the cutshyting of the ribbon officially open ing the Conference Center which was dedicated to the furtherance of bioshylogical and medical research

The Fall meeting of the Board had an opportunity to view the new w ings of the Milton O Lee Building in full use The new Conference Center was reported to be inshycreasingly used and a new Conference Center manager was hired to help fac ilitate scheduling Financial matters were attended to expeditiously The Federation was able to report a year completed within the budget projections of the previous year and which provided a distribution to the five Societies who participated in the Annual Meetshying in April adequate to pay for their entire assessment The sixth Society the American Society for Biochemistry and Molecular Biology was able to pay their assessment from receipts of their separate annual meeting

A careful review was given to the progress of the new journal under the editorship of Dr William Whelan Chairshyman of Biochemistry at the University of Miami The Long Range Planning Committee also reported to the Board urging it to consider what the Federation should do for its membership after the year 2000 They asked the Board members to contemplate what programs were of interest to the membership and what were not and to determine

Dedication of the new wings to the M O Lee Bui ldshying March 29 1987 From left Dr Robert Krauss Executive Director Dr K K Chen Honorary Chairshy

man Devel opment F~lnd Committee Dr Barry Bloom President Dr Carl Vestling Chairman Deshyvelopment Fund Committee and Dr James Wynshy

gaarden Director National Instit utes of Hea lth

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ways in which FASEB should playa role in the area of science education With 13 years remaining in this censhytury the Committee felt that this was an appropriate time to plan how the Federation can best serve the broadest base in biomedical science including the Member Socishyeties and reaching out beyond them

The Executive Director suggested that the Board should consider having a retreat where it could discuss quietlyshyand away from the pressure of Govern ing Board decisions on finances and other matters-what the future of the Federation should be and how it can best serve the progress of biology and medicine in the coming years It was agreed that sometime in the late spring or in the fall of 1988 a retreat should be held that would serve as a forum for proposals for future activit ies of the organ ishyzation

The Board paused to recognize the contributions of Mrs Grace Gurtowski who has served as Librarian to the Federation for 25 years and four other employeesshyMrs Margaret Averi Mrs Betty Grundler Mr Derek Knox and Mr John Smisek-whose 20 years service has been such an important contribution The Board by resoshylution commended them for their service and thanked them for their dedication and perseverance

The Federation Board included in its deliberations a disshycussion on the potential interactions with the American Association of Medical Colleges Dr Robert G Petersdorf the President reviewed the structure and the activities of the AAMC in detail and responded to many questions of the Governing Board concerning the promising future of cooperation between the AAMC and FASEB We jointly address so many problems of common interest when medical research enters a new century of contribut ions to the health of mankind

The completed new wings and the Conference Center in th e M O Lee Building

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

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5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

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I shy

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r- r- r-fshy

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33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

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20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

Federation Board Executive Committee and senior staff March 29 1987

Bethesda Maryland

Dr Barry Bloom Pres presenting the 1987 Public Service Award to Mary Lasker in New York in

August Looking on from left Dr Carl Becker (AAP) Dr Robert Krauss Executive Director and Dr Louis Lemberger (AS PET) (r)

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Ann Landers admiring the 1987 Public Service Award presented to her in October in the K K Chen

Auditorium in the new Conference Center

FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

-9shy

careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

---

--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

-12shy

FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

-14shy

---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

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f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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FINANCES

For the first time in its history the revenues of the Fedshyeration for a calendar year totalled more than $10 million reaching a total of $10263163 in 1987 This figure is not merely an indicat ion of growing size Evidence further in the report shows the Federation is operating more and more frugally each year Rather it is an indication of the larger number of successful programs that the Federation has mounted There is increased reception to those proshygrams by the scientific community including not only members of FASEB constituent Societies but even with a greater appreciation beyond the membership The very large majority of attendees to both the FAS EB Annual Meeting and the FAS EB Summer Research Conferences for instance are coming from non-members of the Federation - individuals who are members of other socishyeties who are an xious for the interaction of well-staged meetings to advance biology in whatever subdisciplines they may be Both the budgets and the programs of the Federation are growing Each year the Federations revenues more than match its expenses For the sixth conshysecutive year the Federations real expenses have been more than compensated by its revenues

It is difficult in the Annual Report to explain the rather intricate finances of the Federation However all of the details of the operation are given in the accompanying Financial Report provided by the independent auditors Arthur Andersen amp Co who review in detail the Federashytions financial management every year The Federation annually prepares a budget well in advance of the calendar year in which it is to operate That budget is reviewed and approved by the Finance Committee and by the Federashytion Board and although it is a budget which we have come very close to matching each year Iike all budgets it is still an approximation During the course of the year revenues and expenses from the various departments of the Federation may increase or decrease somewhat but it is useful to note that every year- including in 1987shythe Federation has operated well within its total budget That budget is built so that the returns from the revenueshygenerating components of the Federation will be adequate to pa at least the entire assessment imposed upon the individual Societies which meet together However in those years when the American Society for Biochemistry and oleeular Biology chooses to meet independent ly that Society ieh as not contributed by its presence to the genera ian of rev-enue at the Annual Meeting conshytributes its fair share from he revenues generated at its independent ee ing Excep for the case of a society which chooses 0 meet separately the assessments for all Societies are paid for each ear by the earn ings of the Federation from the Annual Mee ing as ell as o ther operations Furthermore the Societies are returned each year any monies earned beyond those wh ich pay for the

assessment In fact during the last seven years the Societies of the Federation have received distributions of $473393 in excess of the assessment and consequently have benefitted financially as well as programmatically from the Federation operations in which they are invo lved

There are various ways in which the revenues and exshypenses can be calculated As in the past reports the revenues and expenditures are illustrated by tables and by charts calculated both by activity and by category Reference to Table 1 will show the exact figures for each of the Federation activities depending upon the classifi shycation of function This breakdown as calculated by category giving the percentage of tota l revenues and total expenses is illustrated in Figures 1 and 2 Reference to the figures and the charts will show that the Annual Meetshying and the Summer Research Conferences together have generated revenues in excess of $3300000 for the Fed shyeration The expenses for managing those activities are also shown as are the revenues and expenses for each of the major operations in which the Federation is enshygaged A most dramatic increase in revenue is associated with the FASE8 Summer Research Conference series which raised more than $1000000 for the Federation in 1987 some of which income defrayed the expenses of Federation administration thereby reducing the assessshyment and provided a modest reserve to stabilize future conference activity

In order to provide a somewhat better understanding of FASEB revenues and expenses calculated in a differshyent way Figure 3 shows the earned revenue and expenses for each of the major departments or groups of departshyments within the Federation The data in Figure 3 do not include the distributions to the FASEB Member Societies or assessments credited to those departments whose revenues are less than expenses However in total they cover the entire revenue and expense budget of the Fedshyeration It can be seen that the first five listed activities of the Federation-the Annual Meeting the Print Shop and Data Processing Private Contracts LSRO and Government Contracts and the Summer Research Conshyferences - all have posted major balances of revenue over expenses However in order to operate the Federation and to provide other services the membership have asked it has been necessary to draw on those revenues to operate the Departments of Publications Business Services Buildings and Grounds Public Affairs Executive Office Federation Board and Committees and the Library Two other functions - Personnel and Placement and those thin gs attributed to General and Administrative Funcshytions ~ have posted balances during the cou rse of the year It is the sum of these revenues and expenses earned by the various activities of the Federat ion that result in the final audited statement ~ one which closely matches the estimated budget Each of these functions has been approved by the various committees that review them and the tota l budget and its final approval have come after

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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--

---

--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

-12shy

FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

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f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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careful consideration by the Governing Board It is a source of pride to the Federation that for the past six years its revenues have exceeded its expenditures making possible the accumulation of a modest reserve

During the year the FASEB Development Fund Comshymittee submitted its final report and was able to point to the accumulation of $1746832 to help in the construcshytion of the new wings to the Federation At present the Federation enjoys a total floor space of 125000 square feet including space for all of the member constituent

Societies as well as for 22 additional biomedical research societies who pay for their housing through rents

The year 1987 has seen the Federation increase its strength its net worth and the numbers of programs which have been carefully selected by its Governing Board to provide to the membership the services that help them in the execution of their scientific duties It also provides for them a voice that is concerned with their advanceshyment concomitant with the advancement of the sciences of biology and medicine

The FASEB Development Fund SUMMARY TABLE (12 31 87)

Funds Allocated by FASEB Board $ 205556 Corporate l Foundation Contributions 302606 Personal Contributions 648456 Member Societies 221334 Member Societies (Pledged) 111 666 Individual Membership Drive 84002

Total $1 573 620 Interest Income 173212

Total $1 746832

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---

--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

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f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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--

--------

Table 1 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense For Calendar Year 1987

REVENUE - 1987

By Activity Amount

Annual Meeting $2337802 Summer Research Conferences 1046962 Private Contracts 1025461 Office of Publications 900174 Print Shop amp Composition 843761 General amp Administrative 812165 Business Service Activities 778831 Government Contracts 729640 Data Processing 529884 Buildings amp Grounds 524234 Public Affairs 462553 Membership Directory 142610 Placement Service 129086

Total $10263163

By Category

Exhibits Registrations Abstract Handling Fees - Scmiddotientific Meetings $3053067

Business Service Billings 1761999 Society Assessments 1457408 Private Contracts 1025461 Publication Sales 795153 Government Contracts 729640 Rental Income 508982 Conference Support 390060 Investment Income 296991 Other Income 244402

Total $10263163

228 102 100 88 82 79 76 71 51 51 45 14 13

1000

297 172 142 100 77 71 50 38 29 24

1000

EXPENSE - 1987

By Activity Amount

Annual Meeting $2304190 Buildings amp Grounds 1019313 Summer Research Conferences 990926 Private Contracts 972361 Office of Publications 868255 Business Service Activities 777928 Print Shop amp Composition 777583 General amp Administrative 581097 Government Contracts 536968 Data Processing 461170 Public Affairs 443408 Reserves and Allocations 276028 Membership Directory 137595 Placement Service 116341

Total $10263163

By Category

Personnel Costs $3231787 Meeting amp Publication Services 1460540 Distributions to Societies 1322169 Supplies Mailing amp Operating

Expenses 1187934 Travel 990696 Maintenance amp Buildings Expense 936237 Printing 755588 Reserves amp Allocations 276028 Consultant Fees amp Stipends 102184

Total $10263163

-shy224 99 97 95 85 76 76 57 52 45 43 27 13 11 -shy

1000 -shy

I

315 142 129

116 97 91 73 27 10

-shy1000 -shy-shy

I

-11 shy

Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

-12shy

FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

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2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

-fshy

f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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Maintenance amp Building Expense (911

(2 7)

Calculated by Category

Private Contracts (100)

Publication Conference Sales (77) Support (38)

Other Income (241

Exhibits Registrations Abstract Handling Fees - Scientific Meetings (297)

Fig 1 Sources of Revenue of the FAS EB for the Calendar Year 1987 (Total $10263163)

Reserves amp Allocations

Consultant Fees amp Stipends (10 I

Fig 2 Expenses for the FASEB for the Calendar Year 1987 (Total $102631631

Travel (97)

Supplies Mailing amp Operating Expenses (11 6)

Personnel Costs (315 I

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

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MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

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--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

-fshy

f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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FASEB Revenue and Expense Calendar Year-1987

Annual

Meeting

Print Shop amp

Data Process

Private

Contracts

LSRO amp

Govt Cont

Summer Res

Conferences

Publications

amp Directory

Business

Services

Buildings amp

Grounds

Other Gen

and Admin

Public

Affairs

Personnell amp

Placement

Executive

Office

Fed Board amp

Committees

Library

I I

I I

I

I I

I I

I I

I I

I I

I I

I

W

I

B b

Revenue

D Expense

b D

~ I I I I I I I I I I I I

000 0 o tv j en 00

IMiliionsl

Auditors Report

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY (a not-for-profilt District of Columbia corporashy[ion) as 0 December 31 1987 and the related statements of revenue and expense and changes in financial posi tio 1 fOf [he year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accou nt ing records a d such other auditing procedures as we considered necessary in the circumstances

In our opinion the financial statements referred to

Fig 3 The earned revenues and expenses of FAS EB for each of the major activities or departments in 1987 The revenues and expenses do not include distribution to the FASEB member societies or asshysessments credited to those departments whose revenues are less than expenses

above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 311987 and the results of its operations and the changes in its financial position for the year then ended in cOlilformity with generally accepted accountshying principles appllied on a basis consistent with that of the preceding year

Washington DC March 4 1988 ARTHUR ANDERSEN amp CO

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------ - -- -

--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

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---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

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f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

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--- --- - -- -

- --- ---- --

--- -

-- ---- - - - -

-- - ---- - --

- --- - - - ---

-- - - - - - - --

-- - ----- - -

--- - ------

----------

- -- --- - ---

--------- -

Federation of American Societies for Experimental Biology Balance Sheet

December 31 1987 (with comparative totals for 1986)

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTM ENTS at Cost (Note 2)

PROPERTY AND EQUIPMENT at Cost (Note 3) Land Buildings and Improvements (Net of Accumulated

Depreciation of $13837471 Furniture and Equipment (Net of Accumulated

Depreciation of $13723531

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Construction Contract Retainages Payable (Note 5) Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected in Advance Amounts Held fo r Member Societies and Custodial Accounts Amounts Owed to Government and Others Amounts Owed to Employees Under Deferred Compensation

Plans (Note 2) Accrued Annual Leave Notes Payable Maryland National Bank shy

Economic Development Revenue Bonds INote 5) Prin ting Equipment

LONG -TERM DEBT Notes Payable Mary land National Bank shy

Economic Development Revenue Bonds (Note 5) Printing Equipment

FUND BALANCE Fund Balance December 31 1986 Excess of Revenue over Expense

Fund Balance December 31 1987

Current Fund

$ 262965

82562 85907

589593 280269

1301 296

4025748

5421552

416212

5837764

$11164 808

$ 170500 166980

1032 668 95100

219354 182619

116000 22724

2 005945

2600327

4606272

6200508 358028

6558536

$11164808

Restricted Fund

$ shy

200661 1825621

89464 3283

210846

5409

$216255

$ 9046

385

206824

216255

216255

$216255

Total All Funds

December 311987 December 31 1986

$ 262965 $ 152882

200661 203674

85907 679057 674281 283552 263539

1512142 1294376

4031157 4280721

5421552 5079847

416212 362505

5837764 5442352

$11381063 $11017449

$ 179546 $ 211788 166980 193754

1033053 868739 95100 78221

206824 417812

219354 182619 167899

116000 116000 22724 23199

2222200 2077412

2600327 2716331 23198

4822527 4816941

6200508 5206551 358028 993957

6558536 6200508

$11381063 $11017449

The accompanying notes are an integral part of this balance sheet

-14shy

---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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f-

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f- I

I

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I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

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D E Q)

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20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

---------

------ -- -

---------

---- - ----

Federation of American Societies for Experimental Biology Statement of Revenue and Expense

For the Year Ended December 31 1987 (with comparative totals for 1986)

REVENUE Assessment to Corporate Societies (Note 4) Assessment to Affiliate Society Government and Private Contracts Subscriptions Abstract Handling Fees Single Issue Sales Reprint Sales Advertising Redactory Services Author Charges Educational Exhibits Registrations Conference Support Interview Fees and Searches Rent Business Service Charges to Custodian Funds Printing Computer and Other Services (Note 1)

Dividends and Interest Dividends ard Allowances-Group Insurance Plans Management Fees Other Income

EXPENSE Personnel Costs Editor-in-Chiefs Office Contracted Services Centennial and Anniversary Expense Accrued Annual Leave Composition and Printing Cost of Reprints Advertising Commissions Exhibit Commissions Theme Sessions Poster Sessions Promotion Projection and Public Address Services Consultant Fees and Stipends Public Information Service Supplies and Duplicating Communications and Shipping Hotel and Travel Computer Services Rentals of Space and Equipment Repairs and Maintenance Expense Depreciation (Note 3) Insurance and Taxes Utilities I nterest Expense Auditing Legal and Investment Fees Contributions Contract Expenses Classified Advertising o her Expenses and Supplies

Excess 0 Re Ie e Over Expense Before Distribuions and Capital Contributions

Distribution o f 1985 Unallocated Income (Note 4) Distribution of 985 Meeting Income (Note 4) Contributions for Development Fund (Note 5)

Excess of Revenue Over Expense

Current Fund

$1445652 11756

425253 175675 75415 45192

174176 72457

2120 956025

1921367 390060

16242 508982 60688

1701311 296991 86811

126174 15175

8508062

2653750 73715

601468 108719 14720

658756 17415 25348

19288 20629 24820 86671

31480 308771 352176 881441

90846 87253

150841 352116 111546 153153 167207 40450 4910

60071 9231

48846

7155637

(211094) (34678)

1322169

8232034

276028

82000

$ 358028

Restricted Fund

$

226770

3647 1644

108625 1361855

4788

1444

46328

1755101

563317

78280

78396 1021

14850

62667

87087 102184

3041 57081 61639

109255 5944

135224 624

750

147969

1509329

211094 34678

1755101

$

Total All Funds

December 31 1987 December 31 1986

$1445652 11756

226770 425253 175675 79062 46836

174716 72457 2120

1064650 3283222

390060 21030

508982 60688

1701311 298435 86811

126174 61503

10263163

3217067 73715

679748 108719 14720

737152 18436 25348 14850 19288 83296 24820

173758 102184 34521

365852 413815 990696 96790

222477 151465 352116 112296 153153 167207 40450

4910 60071 9231

196815

8664966

1322169

9987135

$1315617 11508

1071771 294095 144250 127245 54207

235344 63670

2402 872957

2296595 269870

18881 323731

58219 1690247

296084 51617 89931 28357

9316598

3220771 51314

485023

16980 754350

16858 35571 3851

21 562 23423 18804

161349 284736

52067 612956 419561 783244 93190

133609 119983 219605 92820

106070

29426 3980

96945 6148

58759

7922955

991807

8914762

276028

82000

401836 420508

54 613 117000

$ 358028 $ 993957

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

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f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

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20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

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o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

Federation of American Societies for Experimental Biology Statement of Changes in Financial Position

For the Year Ended December 31 1987

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense $ 358028 $ $ 358028

Items Not Requiring Use of Cash Depreciation Expense 352116 352116

Depreciation Expense Charged to Other Expense Accounts 53167 53167

Total Cash Provided from Operalions $ 763311 $ $ 763311

Increase in Accrued Annual Leave 14720 14720

Decrease in Receivables 86447 86447

Decrease in Investments 249493 71 249564

Increase in Accounts Payable and Accrued Expenses 3889 3889

Increase in Deferred Revenue from Future Publication Sales Placement Service and Annual Meeting Income Collected in Advance 163929 385 164314

Increase in Amounts Held for Member Societies and Custodial Accounts 16879 16879

Increase in Amounts Owed to Employees Under Deferred Compensation Plans 219354

----shy219354

$1427686 --shy - - --shy - -

$ 90792 -shy ---shy --shy

$1518478 - ---shy -shy -shy

Cash Used

Increase in Receivables $ 174117 $ $ 174117 Equipment Purchases and Capital Improvements 800 695 800695 Decrease in Amounts Owed to Government

and Others 210 988 210988 Decrease in Construction Contract Retainages

Payable 26774 26774 Decrease in Current Notes Payable 475 475 Decrease in Long -Term Debt 139202 139202 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 18471 1542 20013 Decrease in Accounts Payable and Accrued

Expenses 36 131 36131

$1 195865 - --shy -shy ---shy

$ 212530 - - - - --- -shy

$1408395 - ----shy -shy -

Increase IDecrease) in Cash and Cash Equivalents $ 231 821 $(121738) $ 110083 Cash and Cash Equivalents Beginning of Year 31144 121738 152882

Cash and Cash Equivalents End of Year $ 262 965 $ $ 262965

The accompanying notes are an integral part of this statement

Federation of American Societies for Experimental Biology Notes to Financial Statements

December 31 1987

1 FUND ACCOUNTING AND STATEMENT PRESENTATION

The Federation accounts for financial activities in two funds The Current Fund includes the general activities of the Federation The Restricted Fund covers projects supported by government and private sponsors for which revenue is recogshynized on a percentage-of-completion basis

Interfund accounts have been generally eliminated except ~or the following items Included in Printing Computer and Other Services revenue in the Statement of Revenue and Expense are billings for Print Shop and Data Processing Services of $432480 which are aso included as expenses in the Current and Restricted Funds

-16shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

-20shy

r shy

f-

-fshy

f- I

I

I I f shy

I shy

I l-I-

r- r- r-fshy

1

33 f shy

32 31 fshy

30 f shy

29 f shy

28 I shy

27 fshy

26 fshy

25 fshy

24 fshy

23 f shy

gj 22 fshy

~ 21 f shy

o -E ~

~ Q)

D E Q)

~

20 fshy

19 f shy

18 fshy

17 fshy

16 fshy

15 fshy

14 I shy

13 fshy

12 l shy

II ~

10 I shy

9 I shy

8 f-

7 6 f-

5 f-

4 f-

3 f-

2 f-

fshy

o Corporate Society Members

o Affiliate Society Members

0 Gross Revenue

D Employees

10

9

z cI- 150 3 CT ~

2 m 3f- 140 0 0 -ltco co (J)

f- 130

l- 120

5

I- 110

4 - 100

903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

-21shy

BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

-22shy

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1987

Market

Current Fund Cost Value

General Fund - Investment of excess funds available from the cash flow of the Federation $ 257452 $ 257452

Capital Fund - Investment of accumulated reserves set aside for future uses as designated by the Federation Board 977763 969995

Depreciation Funded Reserve - Investment of accumulated net revenues from operation of the Buildings and Grounds set aside for major repairs renovations improvements and capital expenditures as authorized by the Executive Committee 1604789 1597652

Development Fund - Investment of contributions and Federation Board designated amounts to provide for new facilities on the Federation campus 369584 369584

Summer Research Conferences - Investment of accumula~ed net revenues from operation of the summer research conferences set aside for future development and expansion of these conferences 139324 139324

Construction Escrow Account - Investment of proceeds from Economic Development Revenue Bonds until they are needed to pay new construction cost (see offsetting note payable of $2716327) 271672 271672

Production Services Fund - Investment of net revenues from print shop composition department and data processing to provide for the purchase of new equipment as needed to maintain an efficient operation and to cover future deficits 185810 185810

Deferred Compensation Plans - Investment of funds in connection with deferred compensation agreements with employees 219354 219354

Total Current Fund 4025748 4010843 Restricted Fund

Memorial Fund - Investment of donations by persons wishing to establish a memorial for a relative or friend to be used to stJpport educational activities 5409 5409

Total Investments $4031157 $4016252

According to the current policy adopted by the Federation Board the investments are mostly in liquid money market instrushyments However a portion of the Capital Fund and Depreciation Funded Reserve is invested in long-term bonds with an average maturity of three years

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed on a straight-line basis over the estimated useful lives of the assets The estimated useful lives are 5 to 50 years for Buildings and Improvements and 4 to 10 years for Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amount to cover the net annual cost of Federation programs The assessment is applied on a rate-per-member basis which is computed by dividing the net annual cost of these programs by the total number of active members in the Constituent Societies In 1987 the Corporate Societies paid an assessment of $1445562 Included in tt~is figure is $92868 which represents 50 of the amount exceeding the 1987 budgeted assessment Based on the action of the Federation Board at its meeting on November 24 1987 the remain shying 50 is covered by Federation reserves The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board Under the terms of the financial plan the allocation to the five-member Societies participating in the 1987 Annual Meeting amounted to $1322169

The Federation Board excluded the gain or loss of the Print Shop Data Processing Office and Buildings and Grounds from the annual assessment to the Member Societies The gain or loss of these operations is solely the responsibility of the Federation

In April 1986 the Federation Board authorized the distribution of $420508 in 1985 revenues $292329 to be reinvested in the applicable reserve funds and $128179 to be invested in the Capital Fund to protect against future increases in interest rates during amortization of the mortgage on the new building

In November 1984 the Federation Board authorized the net revenue from the 1985 Annual Meeting in excess of the amount needed to cover the 1985 Federation assessment to be invested in the Development Fund The investment of these funds in the amount of $54613 was made in 1986

-17 shy

5 NEW BUILDING

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building The Federation took possession of the buildings on January 15 1987 An amount of $166980 is being held as reshytainage under a construction contract to cover uncompleted work and unfilled contractual obligations by the builder

The construction was financed by economic development revenue bonds in the amount of $2900000 issued by Montgomery County Maryland and financed by Maryland National Bank Baltimore Maryland The interest rate on tile loan is based on 70 of Maryland National Banks prime rate times 1222 to adjust for a rate increase resulting from a provision in the Tax Reshyform Act of 1986 permitting banks to protect their yield in the event corporate tax rates were reduced In June 1986 monthly payments began which include equal principal payments of $9667 over a 25-year period plus interest on the outstanding balance In addition and at the sole discretion of the holder the bonds may be redeemed in whole or part on December 1 1991 and at the end of each five-year period thereafter through 2006 Proceeds of the loan are invested as is required by the terms of the loan agreement in an escrow account at Maryland National Bank until they are needed to cover construction costs As of December 31 1987 the balance in the escrow account was $271672 and the outstanding principall balance on the loan was $2716327

Pursuant to the Loan and Financing Agreement and the Deed of Trust dated November 29 1984 issued in connection with these economic development revenue bonds the Federation has conveyed into trust the land buildings fixtures and improveshyments as well as its rights under leases and subleases in existence and those to be executed in the future as security for reshypayment of the proceeds of these bonds Until the proceeds of the bond issuance are expended for construction the unexpended amounts on deposit will remain as security for the bonds

The Federation Board established a Development Fund in 1984 to provide for new facilities on the Federation campus The Federation received $117000 in 1986 and $82000 in 1987 from contributions to the Development Fund net of fund raising expenses as reflected in the accompanying Statement of Revenue and Expense

6 RETIREMENT PLAN

The Federation has a defined contribution fully vested retirement plan through Teachers Insurance and Annuity Association of America and the College Retirement Equities Fund New York New York This plan covers all employees who meet the minimum age and length of service requirements The Federations pol icy is to fund the retirement plan on a current basis This expense amounted to $250382 in 1987

7 FEDERAL INCOME TAX STATUS

The Federation is a not-for-profit corporation exempt from Federal Income tax under Section 501(c) (3) of the Internal Revenue Code The Internal Revenue Service has also determined that the Federation is not a private foundation

-18shy

MEMBERSHIP AND PERSONNEL

Membership in the constituent Societies of the Federashytion continued to increase in 1987 The total membership of the six Corporate Members and the Affiliate is now 32854 an increase of 26 over the previous year (Figshyure 4) This modest annual growth has been a hallmark of the Societies of the Federation for many years It reflects well on the services provided by the Societies and to the swelHng ranks of senior biological and medical research scientists in the United States Also during the year the Resident Societies who are tenants on the campus inshycreased their total staff numbers Currently resident with seven member Societies on the Beaumont Campus are twenty-two other Societies listed in Table 2

TABLE 2

Tenant Societies on the Beaumont Campus in 1987

Agricultural Research Institute American Association for Accreditation of Laboratory

Animal Care The American Board of Human Genetics American College of Toxicology American Medical Writers Association American Society for Clinical Nutrition American Society for Neurochemistry American Society of Animal Science Association for Research in Vision and Ophthalmology American Society for Human Genetics The Biophysical Society Council of Biology Editors The Endocrine Society Genetic Society of America The Gorgas Memorial Institute of Tropical and Preventive

Medicine Inc International Institute for Vital Registration and

Statistics International Interest Group in Biorecognition Technology Iinternational Society for the Study of Xenobiotics International Society for Thrombosis and Haemostasis Society for Cryobiology Undersea and Hyperbaric Medical Society Universities Associated for Research and Education in

Pathology

Reference to Table 3 shows the increases in the staff pershysonnel serving all of the Societies in residence on the Beaumont Campus during the past five years The total numbers which reflect the increase in space available at

the Federation and new tenants have risen from 239 in 1983 to 274 in 1987 However it is interesting to note that during that period of increasing budgets the number of FAS E B employees has held essentially steady with a modest decline in 1987 to 104 from 110 in the previous year (Figure 5) This decrease in the number of FASEB employees is primarily due to the fact that the Life Sciences Research Office in 1986 reduced somewhat its grant and contract activity and according to Federation policy was required to reduce the number of staff comshymensurate with contract income The Federation employs a maintenance and a supervisory force for its buildings and grou nds but much of the additional labor that is reshyquired for cleaning the larger new physical plant is now procured under contract

In 1987 the Federation and Societies hired 39 emshyployees resulting from approximately 240 interviews through the staffing (recruitment and placement) services of the Personnel Office The turnover rate for all groups averaged 17 per month as compared to a northeast US average of 14

The Personnel Office has the responsibility for the adshyministration of salary benefits Equal Employment Opporshytunity Affirmative Action plans staff recruitment emshyployee records maintenance and annual performance appraisals Each year analyses are conducted of the comshypensation of commensurate positions in the Metropolitan Washington DC area and nationally in order that we shall be in a position to attract highly qualified employees while at the same time maintaining our payroll costs within reasonable levels Such analyses are done prior to the development of the budget each year and are designed to keep the Federation competitive in Washingshyton Increases for merit only are awarded each year to those deserving employees on January 1 a salary level that is then stable for the duration of each calendar year

During 1987 groundwork was laid for the initiation of an employee leasing service whereby the Federation may loan to non-member societies employees whose qualiflicashytions meet the specifications of the job as determined by the requesting society In return for a modest adminisshytrative fee the society can offer a full benefit package and payroll service and thereby better attract applicants This point is essential in the current economic climate where the unemployment rate in the county is among the lowest in the US and competition for qualified candidates in the Washington area is extremely keen Because these agreements went into effect January 1 1988 such emshyployment figures are not reflected in Table 3

-19shy

--

Table 3 Federation of American Societies for Experimental Biology

Number of Regular Employees on the Payroll

FASEB APS ASBMB ASPET AAPUAREP AINASCN AAIJI ASCB

TOT AL (FASEB amp Societies)

Tenants (Non-payroll)

TOT AL (Payroll and Tenants)

Placement Service

The Placement Service has a unique function and a long record of service to the biological and medical reshysearch community It operates as a central clearing house at the Beaumont Campus to match candidates seeking employment with recruiting employers The service also schedules and manages interviewing opportunities at Annual Meetings for the Federation The Endocrine Society The Society for Neuroscience and from time to time supports other societies in the administration and conduct of their placement efforts This service in 1987 included publication of positions available (PA) and posishytions desired (PO) in these journals

The Journal of Tvpe of The FASEB Clinical Endocrinologv

Advertisement Journal Endocrinologv amp Metabolism

PA 178 24 73 PO 654 57 57

As a result of the PO advertisements 389 employers requested and received 2656 candidate applications Additionally 178 searches of candidate applications

1983

103 50 14 5

12 10 13 4

211

28

239

1984

103 53 13 5

12 9

13 5

213

26

239

1985

109 57 16 5

10 8

13 5

223

32

255

Meeting

71st FASEB A SBC (ASBMB) The Endocrine Society Society for Neuroscience American Society of

Anesthesiologists

1986 1987

110 104 52 47 15 18 5 5

10 9 12 13 20 8 6 8

230 212

44 62

274 274

Table 4

Candidates Interviewers Interviews Partic ipating Participating Scheduled

572 379 3659 257 215 2489 85 76 496

488 427 2930

345 164 3350

1747 1261 12924

requested by employers resulted in 1771 applications The Placement Service operates on a break-even being referred Table 4 shows the participation of candishy budget but in recent years has earned a modest positive dates and employers in interviews managed by Placement balance which supports the performance of the Personnel Service at annual meetings Offices many duties

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903o 1983 1984 1985 1986 19871983 1984 1985 1986 1987

Fig 4 Total Membership of FASEB Societies 1983-1987 Fig 5 Revenue and Number of FASEB Employees 1983-1987

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BUSINESS SERVICES

The Office of Business Services provides a wide range of administrative and technical support to all Beaumont Campus offices It includes staff concerned with the opershyation and maintenance of buildings and grounds with technical and logistical support for office moves for conshystruction and renovation and for administrative and opershyational support for meetings conferences and luncheons in Bethesda and in remote cities Staff operate computershyized photocomposition equipment cameras printing presses and bindery equipment to enable preparation of multicolor brochures newsletters and journals In addishytion to routine campus mail Business Services staff opershyate automatic inserting and labeling equipment for bulk mailing of Society mategtials The Computer Services Department provides assistance to all campus offices in the selection use and maintenance of data processing and word processing systems Principal computer applishycations include maintenance of membership and subscripshytion lists abstracts processing meeting registration and exhibits management preparation of membership direcshytories and many special-purpose tasks associated with specific departmental or societal programs Additional Business Services functions inciude a small Purchasing Office coordination and contracting of corporate and member group insurance programs contract support of Society dues and subscriptions processing and general administration of all campus facilities

Buildings and Grounds

On January 15 1987 the move began into the new Wings 4 and 5 of the M O Lee Building Now headshyquartered in our M O Lee Building Beaumont House and the Beaumont Annex are a total of 33 biological and medical societies Montgomery County awarded FASEB a Use and Occupancy Permit for the new facilities on March 15 1987 The Buildings and Grounds Department spent approximately 1000 man-hours this year moving societies to their permanent locations and helping them adjust to their new environment The staff completed 1089 work orders with revenue for special requests amounting to $1558933 Thirty-five separate contracts including carpeting painting asphalt paving and heating and air conditioning were let and supervised (Table 5) In addition 9470 square feet in the existing M O Lee Building and 3817 square feet of new tenant space were remodeled or altered As the year drew to a close the problems in the M O Lee Building were reduced to final balancing of the heating ventilating and air conditionshying control operations Furthermore 3475 square feet in Beaumont House were painted andor carpeted to allow for society expansion The Beaumont House and the M O Lee Buildings now are providing more comfortable

safe and efficient office space than had been possible for many years

Buildings and Grounds was instrumental in designing and developing energy efficient systems for the New Wings and the old wings as well Although experience is limited to only one year clear evidence of energy effishyciency is accumulating The use of electricity and gas the major utilities has increased by only 515 but the building size has grown by 92

New parking lots were installed and existing lots repaved to provide a total of 302 parking spaces for the building The grounds surrounding parking lots and buildshyings were stabilized with excavation grading seeding and landscaping Landscaping with 31 Leland Cypress trees will provide a screen between the campus and an adjoining development The foundation plantings have been installed in cooperation with neighboring owners using evergreens and woody ornamentals many of which were grown on-site

An early snowfall supplied an opportunity to utilize new equipment to plan future snow removal strategies and to demonstrate that the snow storage areas built into the landscape plan were sufficient and compatible with the parking needs of employees and guests

Continuing campus security is a major concern for Buildings and Grounds Most entrances to all of the buildshyings generall y remain locked with designated open enshytrances under observation during the workday A new keyshying system has been installed which has assisted in cutting thefts during the year A new security lighting system proshyvides well controlled efficient lighting for the campus during evening and night hours

Mailing and Purchasing Services

Routine mailing services include twice-a-day pickup of incoming mail at the Post Office sorting and delivering to all campus offices Outgoing mail is picked up from offices and is delivered to the Post Office or special courier services Specia l delivery registered mail and other mail services are performed by FASEB mail room employees

Bulk mailing has increased because of increases in other postal rates Most involve the machine inserting and labeling of mailing pieces prepared completely on campus by the Department of Printing and Graphic Services and by the Data Processing Department The total volume of outgoing mail processed through the Mail Room during 1987 was 1585095 pieces Because of the increased number of employees on campus this total is expected to increase further in future years Mail Room staff manage postal accounts for campus societies and professhysionally monitor postal rates and regulations Because of US Postal Service changes FASEB now must deal each

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