ANNUAL REPORT

1984

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

9650 ROC VILLE PIKE BETHESDA MARYLAND 2081

The Federation ot American Societies for Expenmental Biology FASEB was founded in 1912 It is incorporated in thp District or Columbia as a non-profit scientific society assigned to enhance the exchange of scientlric knowledge in experimental biology to disseminate information through sCientific publications and meetings to promote the profeSSional education and training of potential scienmiddot tiStS and to represent the common sCientific and educashytionalmterests of member societies These purposes afe designed to aid the development and uti lization of sCience for the benefit and welfare of the nation The Federation incorporates Into a single operating agency functions of I(s member Societies which can best be done JOintly It Is designed to advance scientific rationale at all levels in the fie ld of experimental biology

Officers 1983-84 President Harold F Hardman Vice Presidentmiddot Joe W Grisham Secretary Robert W Krauss Treasurer Frank G Standaert

Officers 1984-85 President Joe W Grisham Vice President Alfred E Harper Secretary Robert W Krauss Treasurer Dante G Scarpelli

Headquarters Administration Executive Director Robert W KraUSfi Comptroller John R Rice

Cover Architects drdWlny of Ihe

M O Lne BUlI(j1rIIJ nit- PoW

I shan~d wing now unOCf

consfructJn IS on frle gnt

BOARD OF DIRECTORS

FEDERATION BOARD July 1 1983-June 30 1984

H F Hardman Chairman

The American Physiological Society we RANDALL AP FISHMAN JB WEST

American Society of Biological Chemlws IRWIN FRIDOVICH ER STADTMAN CHARLES YANOFSKY

American Sociery for Pharmacology and Expertmenta Therapeulics H F HARDMAN AH CaNNEY MG HORNING

American Association of Palf70loglsts RS COTRAN Jw GRISHAM American InstilUte of Nutrition WG HOEKSTRA RE OLSON

The American Assodarion of Immunologists ME KOSHLAND JW UHR KIM IS IGE ISHIZAK

The American Society for Cell Biology JD JAMIESO t

M J OSBOR bull Past PresdEIll RW KRAUSS SecfFlary

FG STANDAERT Treasurer

FEDERATION BOARD July 1 1984-June 30 1985

Jw GRISHAM Chairman

The American Physiological Society A P FIS MAN J B WEST HE MORGAN

American Sociery of Biological Chemists ER STADTMAN CHARLES YANOFSKY EG KREBS

American Sociery for Pharmacology and Expedmencal Thempeuflcs AH CaNNEY M G HORNING W K RIKER

American Associaflon of Pathologists Jw GRISHAM CG BECKER American Institute of Nutrition

RE OLSON AE HARPER The American Association of ImmunologIsts

Jw UHR KIMISHIGE ISHIZAKA BR BLOOM The American Society for Cell Biology

M J KARNOVSKY

HF HARDMAN Past PreSident RW KRAUSS Secretary

DG SCARPELLI Treasurer

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Presidents Messages

Dr Hardman Dr Grisham

During the late winter and spring 1984 the Federation continued on the path toward growth set for it by the Board The membership of the constituent Societies also continued to grow The Annual Meeting in St louis was scientifically rewarding with above the expected attendance and an excellent program in spite of the fact that only four of the six member societies met together this year It proved to be financially successful as well and has provided the Federation with reason for optimism that meetings conducted by the constituent members even with one or two occasionally missing will still have a major impact on the scientific community and will attract a w ide range of exhibitors and scientific participants However careful attention to the scientific breadth of meetings when some societies are missing wil li be required to ensure continuation of the valuable interdisciplinary exchange that has been the hallmark of Federation meetings in the past

The Board meeting in St Louis reviewed the financial structure of the Federation and found it sound The Auditors Report for 1983 showed that the Federation had generated income sufficient to cover the total assessment charges to societies and that a significant sum could be returned to the Societies as a result of the satisfactory operating revenue This is the third year in a row that the Federations revenues have been sufficient or more than sufficient to balance the assessment - an achievement in which a1 can take pride

Utilizing its increasing financial strength the Federashytion has been able to expand its role in the national forum The Board was pleased to learn of the appointshyment of a new Director to FASEBs Office of Public Affairs Mr Gar Kaganowich after 20 years of service on Capitol Hill with various Senate Committees and most recently the Appropriations Committee has agreed to guide the activities of the office in developing public policies in the in terest of sc ience The new Director was instructed to prepare a real istic budget for managing that office in a highly professional manner - one which would ensure that the scientists of the Federation are informed of developments of importance to them and in turn that they will have an opportunity to express to the Federal state and local governments their concerns

over the issues which fundamentally affect biological and medical research in the United States In June the Federation Board approved the new budget for the Office of Public Affairs which more than doubled its size When recruitment is complete the Office of Public Affairs will consist of a Director plus four professionals and secretarial support Although larger the office is still modest in size compared to those maintained by the major associations of societies in the physical and engineering sciences

In support of the actions of the Public Affairs Comshymittee the Federation has recently made strong stateshyments about a number of issues which are of concern to scientists It has reemphasized the importance of a peer review system which has served in an exemplary fashion to promote the progress of biological science It has urged that public officials recognize the need for open peer reviewed competition for federal funds It has condemned the circumvention of the peer review process to achieve politiCAl goals The Federation has reiterated its concern with escalating indirect costs which are imposed upon research grants and contracts It has organized an ad hoc committee to look into organization of a joint task force with university adminshyistrators to find a solution to the problem of indirect costs wh ich both research scientists and university administrators will endorse It has also spoken to the concern of the nation in regard to animal welfare Whi~ e

reiterating the need for humane care of animals that are necessarily utilized for research it has emphasized that continued progress in biology and medicine is deshypendent on the appropriate use of animals in research in education and in the testing of substances techshyniques and equipment It has been outspoken in supshyport of appropriate use of animals by qualified scientists operating under guidelines of scientific societies and the National Institutes of Health A special appeal has been made for the National Academy of Sciences to review the complex and emotional issues which surround the use of laboratory animals It has requested the study to be made available promptly to Congress and the public to prevent the adoption of ill-advised measures which unnecessarily restrict the advancement of sc ience

A Long Range Planning Committee was convened during the Spring of 1984 and dealt with a number of internal issues of concern to the Federation Of special importance was the endorsement by the Long Range Planning Commitee followed by that of the Finance Committee of the construction of new wings to the Milton O Lee Building A carefully p lanned amortization schedule which should be manageable by the Federashytion in years to come was recommended During the Spring of 1984 the Federation moved toward the final decision to expand the Milton 0 Lee Building by the addition of two new wings Cost estimates have proven difficult in our volatile financial environment Although pinning down real cost estimates was difficult the reshy

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quirement for additional space was unquestioned and is symbolic of the growing strength and resources of the Federation A benevolent umbrella provided by FASEB to the respected learned societies in the biological subshydisciplines will not only assist them but will allow the Federation to gain wider recognition as the spokesman for all of the biological and medical research community

To anyone looking at the affairs of the Federation it is clear that its sights are set on a promising future dedicated to the service of biology and medicine Dynamic growing and resolved to do those things which are needed collectively by the members of the constituent societies the Federation is responding to the challenge of its charter

Harold F Hardman President 1983-84

On November 26 final agreements were signed between the Federation the Maryland National Bank Montgomery County and the Merit Corporation for the erection of two new wing s to the Milton O Lee Building This marked a cr itical step in the continued expansion of the Federations headquarters on the Beaumont Campus A number of years ago at the Williamsburg Retreat the Federation Board and the Officers of the assembled societies agreed that an effort should be made to further enhance the utilization of the 113 acres of property owned by the Federation in Bethesda This ideally located piece of real estate had been the home of the Federation since 1954 but a comparatively small part of the handsome grounds have been uti lized for office buildings Those assembled at Wi ll iamsburg strongly urged that some means be fou nd to more intensively utilize this valuable property in the in terest of the scientific community During subsequent years a number of steps were taken to follow the philosophy of Williamsburg and to employ more of the acreage in Bethesda for Federation activities This effort has now culminated with the beginning of construction of the new addition The completed structure of the Milton O Lee Building is depicted on the cover of the Annual Report this year

The new wing will not only provide offices for the expanding societies and FASEB programs but will proshyvide a much needed conference center to house the multitude of meetings now being held at the Federation yearly on science and on scientific business Last year over 500 meetings were scheduled at the Federation Our present conference rooms have become increasingshyly in demand and are crowded The new conference center which has been generously supported by severa foundations as well as certain individual members will provide an auditorium and two satellite conference rooms which can be linked together to accomodate up to 350 attendees The conference center is by no means a substitute site for any of the major scientific meetings of the Federation but it will serve special sessions of

many committees subcommittees and programs in mo re comfortable and auspicious surroundings The conference center will make the Federation home at Beaumont even more of a focus for the scientific affairs of biologists undergirding progress both in Washington and other parts of the country

The new addition will house equipment and facilities for FASEBs expanding local-area-network computer and data-base-system to allow active interchange of information between the societies and allow effective communication throughout the nation on those things which are important to the advancing frontier of bioshylogical science It will expand capability for in-house editorial service by several of the societies and will enshylarge the Federations own capability for providing service to societies who are associated with us in pubshylishing endeavors Federation programs and resident societies will occupy aJl but 13 of the space which will be avai lable upon completion of the new wings At this writing a number of biological research societies who are interested in closer affiliation with us are requesting permission to house their offices in the uncommitted space

The financing plan which has been set in place for the new construction has several components First funds are being raised by a Development Fund Committee headed by Drs KK Chen and Carl S Vestling The Development Fund Committee has already been able to raise approximately $500000 and an additional $500000 has been pledged by the Federation Societies or set aside from Federation reserves Second an Economic Development Bond has been issued by Montgomery County for the benefit of the Federation The Economic Development Bond allows the Federation to borrow money at 70 of prime which makes it possible for us to pay less interest and provides for a more comfortable amort ization duri ng the years ahead Third members of the Federated Societies are being asked for voluntary contributions to reduce the yearly amount needed to amorti ze the building If that campaign is successful the Federation will be in a position to rent space at well below normal rental level s for the Washington Bethesda area and will provide a continuing home fOf the biological and med ical research societies at minimal cost to them The previous Long Range Planning Comshymittees Officers and Federation Boards deserve great credit for the foresight that they have shown in taking these steps The building will be completed in 1986 We are looking forward to its dedication during the 75th anniversary of the Federation in 1987

Of additional interest to the members of the Federashytion is the new activity in the Office of Public Affairs which is inaugurating an era of improved communicashytion between the Federation and agencies in the Federal government The additions to the staff of new public affairs specialists has created a spirit of optimism in the office From their vantage point the Federation is now more than ever before in a position to serve its members effectively in this critical area

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Other departments of the Federation are also moving forward A second report has been prepared during the winter for the US Department of Education It exposes the concerns of the secondary teachers of the nation for the future of primary and secondary science teaching It outlines a program for improving interaction between the research scientists of the nation and school boards admin istrators and teachers in the secondary schools It urges the use of research manpower to improve the scientific training of our children The Federation is looking forward to the cooperation of governmental agencies in implementing this program

The Summer Research Conferences of the Federation continue to be strong In 1983 there were ten confershyences with a total registration of 1300 scientists In 1986 the Federation will move to a second site continushying its conferences in Vermont but establishing a new conference center at Copper Mountain Colorado Our western members will be especially well served by providing facilities closer to their homes The Federation

will support 20 conferences each summer in the Vershymont and Colorada sites by the end of the decade Costs to the members will be kept to a minimum and an excelshylent atmosphere for scientific communication will be ensured

No summary would be complete without a special indication of respect for the increasing role of the Office of Scientific Meetings in managing more and larger meetings each year and for the Life Sciences Research Office whose activities are now providing highly qualishyfied scientific peer reviews for the granting offices of several Federal Departments

Scientists who share in the enterprise should recogshynize that the Federation is expanding horizons and opportunities for professional enhancement to all of its members It is an exciting time and we welcome the superb cooperation and support we have received from so many in achieving our goals

Joe W Grisham President 1984-85

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

The Federation ot American Societies for Expenmental Biology FASEB was founded in 1912 It is incorporated in thp District or Columbia as a non-profit scientific society assigned to enhance the exchange of scientlric knowledge in experimental biology to disseminate information through sCientific publications and meetings to promote the profeSSional education and training of potential scienmiddot tiStS and to represent the common sCientific and educashytionalmterests of member societies These purposes afe designed to aid the development and uti lization of sCience for the benefit and welfare of the nation The Federation incorporates Into a single operating agency functions of I(s member Societies which can best be done JOintly It Is designed to advance scientific rationale at all levels in the fie ld of experimental biology

Officers 1983-84 President Harold F Hardman Vice Presidentmiddot Joe W Grisham Secretary Robert W Krauss Treasurer Frank G Standaert

Officers 1984-85 President Joe W Grisham Vice President Alfred E Harper Secretary Robert W Krauss Treasurer Dante G Scarpelli

Headquarters Administration Executive Director Robert W KraUSfi Comptroller John R Rice

Cover Architects drdWlny of Ihe

M O Lne BUlI(j1rIIJ nit- PoW

I shan~d wing now unOCf

consfructJn IS on frle gnt

BOARD OF DIRECTORS

FEDERATION BOARD July 1 1983-June 30 1984

H F Hardman Chairman

The American Physiological Society we RANDALL AP FISHMAN JB WEST

American Society of Biological Chemlws IRWIN FRIDOVICH ER STADTMAN CHARLES YANOFSKY

American Sociery for Pharmacology and Expertmenta Therapeulics H F HARDMAN AH CaNNEY MG HORNING

American Association of Palf70loglsts RS COTRAN Jw GRISHAM American InstilUte of Nutrition WG HOEKSTRA RE OLSON

The American Assodarion of Immunologists ME KOSHLAND JW UHR KIM IS IGE ISHIZAK

The American Society for Cell Biology JD JAMIESO t

M J OSBOR bull Past PresdEIll RW KRAUSS SecfFlary

FG STANDAERT Treasurer

FEDERATION BOARD July 1 1984-June 30 1985

Jw GRISHAM Chairman

The American Physiological Society A P FIS MAN J B WEST HE MORGAN

American Sociery of Biological Chemists ER STADTMAN CHARLES YANOFSKY EG KREBS

American Sociery for Pharmacology and Expedmencal Thempeuflcs AH CaNNEY M G HORNING W K RIKER

American Associaflon of Pathologists Jw GRISHAM CG BECKER American Institute of Nutrition

RE OLSON AE HARPER The American Association of ImmunologIsts

Jw UHR KIMISHIGE ISHIZAKA BR BLOOM The American Society for Cell Biology

M J KARNOVSKY

HF HARDMAN Past PreSident RW KRAUSS Secretary

DG SCARPELLI Treasurer

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Presidents Messages

Dr Hardman Dr Grisham

During the late winter and spring 1984 the Federation continued on the path toward growth set for it by the Board The membership of the constituent Societies also continued to grow The Annual Meeting in St louis was scientifically rewarding with above the expected attendance and an excellent program in spite of the fact that only four of the six member societies met together this year It proved to be financially successful as well and has provided the Federation with reason for optimism that meetings conducted by the constituent members even with one or two occasionally missing will still have a major impact on the scientific community and will attract a w ide range of exhibitors and scientific participants However careful attention to the scientific breadth of meetings when some societies are missing wil li be required to ensure continuation of the valuable interdisciplinary exchange that has been the hallmark of Federation meetings in the past

The Board meeting in St Louis reviewed the financial structure of the Federation and found it sound The Auditors Report for 1983 showed that the Federation had generated income sufficient to cover the total assessment charges to societies and that a significant sum could be returned to the Societies as a result of the satisfactory operating revenue This is the third year in a row that the Federations revenues have been sufficient or more than sufficient to balance the assessment - an achievement in which a1 can take pride

Utilizing its increasing financial strength the Federashytion has been able to expand its role in the national forum The Board was pleased to learn of the appointshyment of a new Director to FASEBs Office of Public Affairs Mr Gar Kaganowich after 20 years of service on Capitol Hill with various Senate Committees and most recently the Appropriations Committee has agreed to guide the activities of the office in developing public policies in the in terest of sc ience The new Director was instructed to prepare a real istic budget for managing that office in a highly professional manner - one which would ensure that the scientists of the Federation are informed of developments of importance to them and in turn that they will have an opportunity to express to the Federal state and local governments their concerns

over the issues which fundamentally affect biological and medical research in the United States In June the Federation Board approved the new budget for the Office of Public Affairs which more than doubled its size When recruitment is complete the Office of Public Affairs will consist of a Director plus four professionals and secretarial support Although larger the office is still modest in size compared to those maintained by the major associations of societies in the physical and engineering sciences

In support of the actions of the Public Affairs Comshymittee the Federation has recently made strong stateshyments about a number of issues which are of concern to scientists It has reemphasized the importance of a peer review system which has served in an exemplary fashion to promote the progress of biological science It has urged that public officials recognize the need for open peer reviewed competition for federal funds It has condemned the circumvention of the peer review process to achieve politiCAl goals The Federation has reiterated its concern with escalating indirect costs which are imposed upon research grants and contracts It has organized an ad hoc committee to look into organization of a joint task force with university adminshyistrators to find a solution to the problem of indirect costs wh ich both research scientists and university administrators will endorse It has also spoken to the concern of the nation in regard to animal welfare Whi~ e

reiterating the need for humane care of animals that are necessarily utilized for research it has emphasized that continued progress in biology and medicine is deshypendent on the appropriate use of animals in research in education and in the testing of substances techshyniques and equipment It has been outspoken in supshyport of appropriate use of animals by qualified scientists operating under guidelines of scientific societies and the National Institutes of Health A special appeal has been made for the National Academy of Sciences to review the complex and emotional issues which surround the use of laboratory animals It has requested the study to be made available promptly to Congress and the public to prevent the adoption of ill-advised measures which unnecessarily restrict the advancement of sc ience

A Long Range Planning Committee was convened during the Spring of 1984 and dealt with a number of internal issues of concern to the Federation Of special importance was the endorsement by the Long Range Planning Commitee followed by that of the Finance Committee of the construction of new wings to the Milton O Lee Building A carefully p lanned amortization schedule which should be manageable by the Federashytion in years to come was recommended During the Spring of 1984 the Federation moved toward the final decision to expand the Milton 0 Lee Building by the addition of two new wings Cost estimates have proven difficult in our volatile financial environment Although pinning down real cost estimates was difficult the reshy

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quirement for additional space was unquestioned and is symbolic of the growing strength and resources of the Federation A benevolent umbrella provided by FASEB to the respected learned societies in the biological subshydisciplines will not only assist them but will allow the Federation to gain wider recognition as the spokesman for all of the biological and medical research community

To anyone looking at the affairs of the Federation it is clear that its sights are set on a promising future dedicated to the service of biology and medicine Dynamic growing and resolved to do those things which are needed collectively by the members of the constituent societies the Federation is responding to the challenge of its charter

Harold F Hardman President 1983-84

On November 26 final agreements were signed between the Federation the Maryland National Bank Montgomery County and the Merit Corporation for the erection of two new wing s to the Milton O Lee Building This marked a cr itical step in the continued expansion of the Federations headquarters on the Beaumont Campus A number of years ago at the Williamsburg Retreat the Federation Board and the Officers of the assembled societies agreed that an effort should be made to further enhance the utilization of the 113 acres of property owned by the Federation in Bethesda This ideally located piece of real estate had been the home of the Federation since 1954 but a comparatively small part of the handsome grounds have been uti lized for office buildings Those assembled at Wi ll iamsburg strongly urged that some means be fou nd to more intensively utilize this valuable property in the in terest of the scientific community During subsequent years a number of steps were taken to follow the philosophy of Williamsburg and to employ more of the acreage in Bethesda for Federation activities This effort has now culminated with the beginning of construction of the new addition The completed structure of the Milton O Lee Building is depicted on the cover of the Annual Report this year

The new wing will not only provide offices for the expanding societies and FASEB programs but will proshyvide a much needed conference center to house the multitude of meetings now being held at the Federation yearly on science and on scientific business Last year over 500 meetings were scheduled at the Federation Our present conference rooms have become increasingshyly in demand and are crowded The new conference center which has been generously supported by severa foundations as well as certain individual members will provide an auditorium and two satellite conference rooms which can be linked together to accomodate up to 350 attendees The conference center is by no means a substitute site for any of the major scientific meetings of the Federation but it will serve special sessions of

many committees subcommittees and programs in mo re comfortable and auspicious surroundings The conference center will make the Federation home at Beaumont even more of a focus for the scientific affairs of biologists undergirding progress both in Washington and other parts of the country

The new addition will house equipment and facilities for FASEBs expanding local-area-network computer and data-base-system to allow active interchange of information between the societies and allow effective communication throughout the nation on those things which are important to the advancing frontier of bioshylogical science It will expand capability for in-house editorial service by several of the societies and will enshylarge the Federations own capability for providing service to societies who are associated with us in pubshylishing endeavors Federation programs and resident societies will occupy aJl but 13 of the space which will be avai lable upon completion of the new wings At this writing a number of biological research societies who are interested in closer affiliation with us are requesting permission to house their offices in the uncommitted space

The financing plan which has been set in place for the new construction has several components First funds are being raised by a Development Fund Committee headed by Drs KK Chen and Carl S Vestling The Development Fund Committee has already been able to raise approximately $500000 and an additional $500000 has been pledged by the Federation Societies or set aside from Federation reserves Second an Economic Development Bond has been issued by Montgomery County for the benefit of the Federation The Economic Development Bond allows the Federation to borrow money at 70 of prime which makes it possible for us to pay less interest and provides for a more comfortable amort ization duri ng the years ahead Third members of the Federated Societies are being asked for voluntary contributions to reduce the yearly amount needed to amorti ze the building If that campaign is successful the Federation will be in a position to rent space at well below normal rental level s for the Washington Bethesda area and will provide a continuing home fOf the biological and med ical research societies at minimal cost to them The previous Long Range Planning Comshymittees Officers and Federation Boards deserve great credit for the foresight that they have shown in taking these steps The building will be completed in 1986 We are looking forward to its dedication during the 75th anniversary of the Federation in 1987

Of additional interest to the members of the Federashytion is the new activity in the Office of Public Affairs which is inaugurating an era of improved communicashytion between the Federation and agencies in the Federal government The additions to the staff of new public affairs specialists has created a spirit of optimism in the office From their vantage point the Federation is now more than ever before in a position to serve its members effectively in this critical area

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Other departments of the Federation are also moving forward A second report has been prepared during the winter for the US Department of Education It exposes the concerns of the secondary teachers of the nation for the future of primary and secondary science teaching It outlines a program for improving interaction between the research scientists of the nation and school boards admin istrators and teachers in the secondary schools It urges the use of research manpower to improve the scientific training of our children The Federation is looking forward to the cooperation of governmental agencies in implementing this program

The Summer Research Conferences of the Federation continue to be strong In 1983 there were ten confershyences with a total registration of 1300 scientists In 1986 the Federation will move to a second site continushying its conferences in Vermont but establishing a new conference center at Copper Mountain Colorado Our western members will be especially well served by providing facilities closer to their homes The Federation

will support 20 conferences each summer in the Vershymont and Colorada sites by the end of the decade Costs to the members will be kept to a minimum and an excelshylent atmosphere for scientific communication will be ensured

No summary would be complete without a special indication of respect for the increasing role of the Office of Scientific Meetings in managing more and larger meetings each year and for the Life Sciences Research Office whose activities are now providing highly qualishyfied scientific peer reviews for the granting offices of several Federal Departments

Scientists who share in the enterprise should recogshynize that the Federation is expanding horizons and opportunities for professional enhancement to all of its members It is an exciting time and we welcome the superb cooperation and support we have received from so many in achieving our goals

Joe W Grisham President 1984-85

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

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Presidents Messages

Dr Hardman Dr Grisham

During the late winter and spring 1984 the Federation continued on the path toward growth set for it by the Board The membership of the constituent Societies also continued to grow The Annual Meeting in St louis was scientifically rewarding with above the expected attendance and an excellent program in spite of the fact that only four of the six member societies met together this year It proved to be financially successful as well and has provided the Federation with reason for optimism that meetings conducted by the constituent members even with one or two occasionally missing will still have a major impact on the scientific community and will attract a w ide range of exhibitors and scientific participants However careful attention to the scientific breadth of meetings when some societies are missing wil li be required to ensure continuation of the valuable interdisciplinary exchange that has been the hallmark of Federation meetings in the past

The Board meeting in St Louis reviewed the financial structure of the Federation and found it sound The Auditors Report for 1983 showed that the Federation had generated income sufficient to cover the total assessment charges to societies and that a significant sum could be returned to the Societies as a result of the satisfactory operating revenue This is the third year in a row that the Federations revenues have been sufficient or more than sufficient to balance the assessment - an achievement in which a1 can take pride

Utilizing its increasing financial strength the Federashytion has been able to expand its role in the national forum The Board was pleased to learn of the appointshyment of a new Director to FASEBs Office of Public Affairs Mr Gar Kaganowich after 20 years of service on Capitol Hill with various Senate Committees and most recently the Appropriations Committee has agreed to guide the activities of the office in developing public policies in the in terest of sc ience The new Director was instructed to prepare a real istic budget for managing that office in a highly professional manner - one which would ensure that the scientists of the Federation are informed of developments of importance to them and in turn that they will have an opportunity to express to the Federal state and local governments their concerns

over the issues which fundamentally affect biological and medical research in the United States In June the Federation Board approved the new budget for the Office of Public Affairs which more than doubled its size When recruitment is complete the Office of Public Affairs will consist of a Director plus four professionals and secretarial support Although larger the office is still modest in size compared to those maintained by the major associations of societies in the physical and engineering sciences

In support of the actions of the Public Affairs Comshymittee the Federation has recently made strong stateshyments about a number of issues which are of concern to scientists It has reemphasized the importance of a peer review system which has served in an exemplary fashion to promote the progress of biological science It has urged that public officials recognize the need for open peer reviewed competition for federal funds It has condemned the circumvention of the peer review process to achieve politiCAl goals The Federation has reiterated its concern with escalating indirect costs which are imposed upon research grants and contracts It has organized an ad hoc committee to look into organization of a joint task force with university adminshyistrators to find a solution to the problem of indirect costs wh ich both research scientists and university administrators will endorse It has also spoken to the concern of the nation in regard to animal welfare Whi~ e

reiterating the need for humane care of animals that are necessarily utilized for research it has emphasized that continued progress in biology and medicine is deshypendent on the appropriate use of animals in research in education and in the testing of substances techshyniques and equipment It has been outspoken in supshyport of appropriate use of animals by qualified scientists operating under guidelines of scientific societies and the National Institutes of Health A special appeal has been made for the National Academy of Sciences to review the complex and emotional issues which surround the use of laboratory animals It has requested the study to be made available promptly to Congress and the public to prevent the adoption of ill-advised measures which unnecessarily restrict the advancement of sc ience

A Long Range Planning Committee was convened during the Spring of 1984 and dealt with a number of internal issues of concern to the Federation Of special importance was the endorsement by the Long Range Planning Commitee followed by that of the Finance Committee of the construction of new wings to the Milton O Lee Building A carefully p lanned amortization schedule which should be manageable by the Federashytion in years to come was recommended During the Spring of 1984 the Federation moved toward the final decision to expand the Milton 0 Lee Building by the addition of two new wings Cost estimates have proven difficult in our volatile financial environment Although pinning down real cost estimates was difficult the reshy

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quirement for additional space was unquestioned and is symbolic of the growing strength and resources of the Federation A benevolent umbrella provided by FASEB to the respected learned societies in the biological subshydisciplines will not only assist them but will allow the Federation to gain wider recognition as the spokesman for all of the biological and medical research community

To anyone looking at the affairs of the Federation it is clear that its sights are set on a promising future dedicated to the service of biology and medicine Dynamic growing and resolved to do those things which are needed collectively by the members of the constituent societies the Federation is responding to the challenge of its charter

Harold F Hardman President 1983-84

On November 26 final agreements were signed between the Federation the Maryland National Bank Montgomery County and the Merit Corporation for the erection of two new wing s to the Milton O Lee Building This marked a cr itical step in the continued expansion of the Federations headquarters on the Beaumont Campus A number of years ago at the Williamsburg Retreat the Federation Board and the Officers of the assembled societies agreed that an effort should be made to further enhance the utilization of the 113 acres of property owned by the Federation in Bethesda This ideally located piece of real estate had been the home of the Federation since 1954 but a comparatively small part of the handsome grounds have been uti lized for office buildings Those assembled at Wi ll iamsburg strongly urged that some means be fou nd to more intensively utilize this valuable property in the in terest of the scientific community During subsequent years a number of steps were taken to follow the philosophy of Williamsburg and to employ more of the acreage in Bethesda for Federation activities This effort has now culminated with the beginning of construction of the new addition The completed structure of the Milton O Lee Building is depicted on the cover of the Annual Report this year

The new wing will not only provide offices for the expanding societies and FASEB programs but will proshyvide a much needed conference center to house the multitude of meetings now being held at the Federation yearly on science and on scientific business Last year over 500 meetings were scheduled at the Federation Our present conference rooms have become increasingshyly in demand and are crowded The new conference center which has been generously supported by severa foundations as well as certain individual members will provide an auditorium and two satellite conference rooms which can be linked together to accomodate up to 350 attendees The conference center is by no means a substitute site for any of the major scientific meetings of the Federation but it will serve special sessions of

many committees subcommittees and programs in mo re comfortable and auspicious surroundings The conference center will make the Federation home at Beaumont even more of a focus for the scientific affairs of biologists undergirding progress both in Washington and other parts of the country

The new addition will house equipment and facilities for FASEBs expanding local-area-network computer and data-base-system to allow active interchange of information between the societies and allow effective communication throughout the nation on those things which are important to the advancing frontier of bioshylogical science It will expand capability for in-house editorial service by several of the societies and will enshylarge the Federations own capability for providing service to societies who are associated with us in pubshylishing endeavors Federation programs and resident societies will occupy aJl but 13 of the space which will be avai lable upon completion of the new wings At this writing a number of biological research societies who are interested in closer affiliation with us are requesting permission to house their offices in the uncommitted space

The financing plan which has been set in place for the new construction has several components First funds are being raised by a Development Fund Committee headed by Drs KK Chen and Carl S Vestling The Development Fund Committee has already been able to raise approximately $500000 and an additional $500000 has been pledged by the Federation Societies or set aside from Federation reserves Second an Economic Development Bond has been issued by Montgomery County for the benefit of the Federation The Economic Development Bond allows the Federation to borrow money at 70 of prime which makes it possible for us to pay less interest and provides for a more comfortable amort ization duri ng the years ahead Third members of the Federated Societies are being asked for voluntary contributions to reduce the yearly amount needed to amorti ze the building If that campaign is successful the Federation will be in a position to rent space at well below normal rental level s for the Washington Bethesda area and will provide a continuing home fOf the biological and med ical research societies at minimal cost to them The previous Long Range Planning Comshymittees Officers and Federation Boards deserve great credit for the foresight that they have shown in taking these steps The building will be completed in 1986 We are looking forward to its dedication during the 75th anniversary of the Federation in 1987

Of additional interest to the members of the Federashytion is the new activity in the Office of Public Affairs which is inaugurating an era of improved communicashytion between the Federation and agencies in the Federal government The additions to the staff of new public affairs specialists has created a spirit of optimism in the office From their vantage point the Federation is now more than ever before in a position to serve its members effectively in this critical area

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Other departments of the Federation are also moving forward A second report has been prepared during the winter for the US Department of Education It exposes the concerns of the secondary teachers of the nation for the future of primary and secondary science teaching It outlines a program for improving interaction between the research scientists of the nation and school boards admin istrators and teachers in the secondary schools It urges the use of research manpower to improve the scientific training of our children The Federation is looking forward to the cooperation of governmental agencies in implementing this program

The Summer Research Conferences of the Federation continue to be strong In 1983 there were ten confershyences with a total registration of 1300 scientists In 1986 the Federation will move to a second site continushying its conferences in Vermont but establishing a new conference center at Copper Mountain Colorado Our western members will be especially well served by providing facilities closer to their homes The Federation

will support 20 conferences each summer in the Vershymont and Colorada sites by the end of the decade Costs to the members will be kept to a minimum and an excelshylent atmosphere for scientific communication will be ensured

No summary would be complete without a special indication of respect for the increasing role of the Office of Scientific Meetings in managing more and larger meetings each year and for the Life Sciences Research Office whose activities are now providing highly qualishyfied scientific peer reviews for the granting offices of several Federal Departments

Scientists who share in the enterprise should recogshynize that the Federation is expanding horizons and opportunities for professional enhancement to all of its members It is an exciting time and we welcome the superb cooperation and support we have received from so many in achieving our goals

Joe W Grisham President 1984-85

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

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quirement for additional space was unquestioned and is symbolic of the growing strength and resources of the Federation A benevolent umbrella provided by FASEB to the respected learned societies in the biological subshydisciplines will not only assist them but will allow the Federation to gain wider recognition as the spokesman for all of the biological and medical research community

To anyone looking at the affairs of the Federation it is clear that its sights are set on a promising future dedicated to the service of biology and medicine Dynamic growing and resolved to do those things which are needed collectively by the members of the constituent societies the Federation is responding to the challenge of its charter

Harold F Hardman President 1983-84

On November 26 final agreements were signed between the Federation the Maryland National Bank Montgomery County and the Merit Corporation for the erection of two new wing s to the Milton O Lee Building This marked a cr itical step in the continued expansion of the Federations headquarters on the Beaumont Campus A number of years ago at the Williamsburg Retreat the Federation Board and the Officers of the assembled societies agreed that an effort should be made to further enhance the utilization of the 113 acres of property owned by the Federation in Bethesda This ideally located piece of real estate had been the home of the Federation since 1954 but a comparatively small part of the handsome grounds have been uti lized for office buildings Those assembled at Wi ll iamsburg strongly urged that some means be fou nd to more intensively utilize this valuable property in the in terest of the scientific community During subsequent years a number of steps were taken to follow the philosophy of Williamsburg and to employ more of the acreage in Bethesda for Federation activities This effort has now culminated with the beginning of construction of the new addition The completed structure of the Milton O Lee Building is depicted on the cover of the Annual Report this year

The new wing will not only provide offices for the expanding societies and FASEB programs but will proshyvide a much needed conference center to house the multitude of meetings now being held at the Federation yearly on science and on scientific business Last year over 500 meetings were scheduled at the Federation Our present conference rooms have become increasingshyly in demand and are crowded The new conference center which has been generously supported by severa foundations as well as certain individual members will provide an auditorium and two satellite conference rooms which can be linked together to accomodate up to 350 attendees The conference center is by no means a substitute site for any of the major scientific meetings of the Federation but it will serve special sessions of

many committees subcommittees and programs in mo re comfortable and auspicious surroundings The conference center will make the Federation home at Beaumont even more of a focus for the scientific affairs of biologists undergirding progress both in Washington and other parts of the country

The new addition will house equipment and facilities for FASEBs expanding local-area-network computer and data-base-system to allow active interchange of information between the societies and allow effective communication throughout the nation on those things which are important to the advancing frontier of bioshylogical science It will expand capability for in-house editorial service by several of the societies and will enshylarge the Federations own capability for providing service to societies who are associated with us in pubshylishing endeavors Federation programs and resident societies will occupy aJl but 13 of the space which will be avai lable upon completion of the new wings At this writing a number of biological research societies who are interested in closer affiliation with us are requesting permission to house their offices in the uncommitted space

The financing plan which has been set in place for the new construction has several components First funds are being raised by a Development Fund Committee headed by Drs KK Chen and Carl S Vestling The Development Fund Committee has already been able to raise approximately $500000 and an additional $500000 has been pledged by the Federation Societies or set aside from Federation reserves Second an Economic Development Bond has been issued by Montgomery County for the benefit of the Federation The Economic Development Bond allows the Federation to borrow money at 70 of prime which makes it possible for us to pay less interest and provides for a more comfortable amort ization duri ng the years ahead Third members of the Federated Societies are being asked for voluntary contributions to reduce the yearly amount needed to amorti ze the building If that campaign is successful the Federation will be in a position to rent space at well below normal rental level s for the Washington Bethesda area and will provide a continuing home fOf the biological and med ical research societies at minimal cost to them The previous Long Range Planning Comshymittees Officers and Federation Boards deserve great credit for the foresight that they have shown in taking these steps The building will be completed in 1986 We are looking forward to its dedication during the 75th anniversary of the Federation in 1987

Of additional interest to the members of the Federashytion is the new activity in the Office of Public Affairs which is inaugurating an era of improved communicashytion between the Federation and agencies in the Federal government The additions to the staff of new public affairs specialists has created a spirit of optimism in the office From their vantage point the Federation is now more than ever before in a position to serve its members effectively in this critical area

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Other departments of the Federation are also moving forward A second report has been prepared during the winter for the US Department of Education It exposes the concerns of the secondary teachers of the nation for the future of primary and secondary science teaching It outlines a program for improving interaction between the research scientists of the nation and school boards admin istrators and teachers in the secondary schools It urges the use of research manpower to improve the scientific training of our children The Federation is looking forward to the cooperation of governmental agencies in implementing this program

The Summer Research Conferences of the Federation continue to be strong In 1983 there were ten confershyences with a total registration of 1300 scientists In 1986 the Federation will move to a second site continushying its conferences in Vermont but establishing a new conference center at Copper Mountain Colorado Our western members will be especially well served by providing facilities closer to their homes The Federation

will support 20 conferences each summer in the Vershymont and Colorada sites by the end of the decade Costs to the members will be kept to a minimum and an excelshylent atmosphere for scientific communication will be ensured

No summary would be complete without a special indication of respect for the increasing role of the Office of Scientific Meetings in managing more and larger meetings each year and for the Life Sciences Research Office whose activities are now providing highly qualishyfied scientific peer reviews for the granting offices of several Federal Departments

Scientists who share in the enterprise should recogshynize that the Federation is expanding horizons and opportunities for professional enhancement to all of its members It is an exciting time and we welcome the superb cooperation and support we have received from so many in achieving our goals

Joe W Grisham President 1984-85

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

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Other departments of the Federation are also moving forward A second report has been prepared during the winter for the US Department of Education It exposes the concerns of the secondary teachers of the nation for the future of primary and secondary science teaching It outlines a program for improving interaction between the research scientists of the nation and school boards admin istrators and teachers in the secondary schools It urges the use of research manpower to improve the scientific training of our children The Federation is looking forward to the cooperation of governmental agencies in implementing this program

The Summer Research Conferences of the Federation continue to be strong In 1983 there were ten confershyences with a total registration of 1300 scientists In 1986 the Federation will move to a second site continushying its conferences in Vermont but establishing a new conference center at Copper Mountain Colorado Our western members will be especially well served by providing facilities closer to their homes The Federation

will support 20 conferences each summer in the Vershymont and Colorada sites by the end of the decade Costs to the members will be kept to a minimum and an excelshylent atmosphere for scientific communication will be ensured

No summary would be complete without a special indication of respect for the increasing role of the Office of Scientific Meetings in managing more and larger meetings each year and for the Life Sciences Research Office whose activities are now providing highly qualishyfied scientific peer reviews for the granting offices of several Federal Departments

Scientists who share in the enterprise should recogshynize that the Federation is expanding horizons and opportunities for professional enhancement to all of its members It is an exciting time and we welcome the superb cooperation and support we have received from so many in achieving our goals

Joe W Grisham President 1984-85

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

I

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REVIEW OF FEDERATION ACTIVITIES 1984

TRODUCTION During 1984 the Federation has maintained steady

progress toward the goal of increased service to bioshylogical and medical sciences Happily the Federations fiscal stature has continued to improve during the year It is steadily reducing its dependence on the Annual Meeting for revenue and has broadened its service base to all of its Societies and the larger scientific community as well The Federation has experienced increased work loads in every department but at the same time has stabilized the size of its staff It has not only provided services for member Societies but has continued to develop unique programs of its own

The Federation now consists of six corporate member Societies one Affiliate member society and a group of twelve societies who although not members are guests and tenants on the Beaumont campus They contribute significantly to the Federations financial resources and to its programs and activities as well During 1984 an additional society the Association for Research in Vision and Ophthalmology has decided to house their execushytive office on the Beaumont campus in Bethesda Disshycussions are now under way which will bring other distinguished research societies to be in residence at Beaumont The Federation can take satisfaction in being able to extend its services to societies of like interest All benefit from reduced costs resulting from joint use of common facilities The Tenant societies have in past years contributed much to the intellectual resources of the Federation and have helped make the Federations Beaumont headquarters a focal point for the business affairs of biomedical sciences in the United States

The two most visible advances made during 1984 are first the expansion of the Federations Office of Public Affairs and second the beginning of construction of two new wings to be added to the Milton O Lee office building By adding both quality and quantity to the Office of Public Affairs the Federation hopes to achieve a stronger voice to its members and to government - a voice which is designed to improve the climate in which biological research is done It is clear to the members of the Federation that at this time in its history the need to educate the public at large and to preserve the momentum of advancing scientific knowledge cannot be ignored Forces in society are striking at continued intellectual development especially in the area of biology and medicine It is a public service to communicate science effectively to the voters who are establishing the rules for the conduct of society At the same time the requirements of biomedical research for funding and facilities necessary to keep advances in medicine and biology from faltering must be explained The Federashytion has resolved not to neglect its responsibilities in this area The second step forward has been the addition to

the main headquarters building The additional facilities for offices and equipment make the future better for the Federation The provision of a badly needed center for communication evidenced by the construction of a small auditorium and adjoining conference rooms will make it possible for the societies to do more than ever in the area of inter-and extra-communication Certainly a sigshynificant milestone in the history of the Federation has been the decision of the Board to proceed with the construction of the new building There is every antishycipation that the financial contributions that are being received from industry foundations and individuals will greatly reduce the cost burden to the Federation I n the years ahead the Federation should be able to provide a facility to its member Societies at lower rents than those presently necessary

The report that follows which covers each of the major departments of the Federation presents the highshylights of the Federations activities during 1984 It cannot cover the details of the multitude of meetings and other activities through which scientists manage the affairs of the organization The Federation is structured to serve science and scientists and to give them the maximum possible input to the fate of the intellectual endeavor that has meant so much to mankind The measure of the Federation can be taken in the statesmanship the foresight and the unselfish dedication to sound scishyenti fic principles that characterize the Board and the many members of the committees that support it

The headquarters is available for visits by the memshybers of constituent societies at any time during the course of the year The Executive Office would welcome inquiries or suggestions as to how it may be of greater help in fu rthering biological and medical sciences The Federations contributions are increasingly respected in Washing ton and if there is some way in which scientific research can be made better the Federation stands ready to respo nd

GOVERNING BOARD During the April meeting of the Governing Board the

question of providing additional space to meet the needs of societies and the Federation itself was discussed at great length The requirements of the various societies were analyzed careful ~ y The expanding programs of the Federation and those projected for the years ahead were reviewed and the nature of the building was examined as presented in the preliminary plans of the architect Mr George Brunatti who had been hired to prepare the plans and assist in obtaining the necessary zoning

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

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vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

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Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

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Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

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Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

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Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

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Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

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Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

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$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

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rulings from Montgomery County There were obvious advantages to having an expanded facility However the Board was very conservative in its approach to cost The Federations reserves are considered to be only modest and there was no desire to saddle it with unmanageable financial obligations in the years ahead Careful examshyination of amortization schedules which allowed the necessary annual expenditures to be met by rental costs put the building well within the reach of the Federations resources However few solid estimates were available concerning the possible building costs Therefore the final decision on the construction of the building was postponed until bids had actually been received The Board recognized that in order to initiate the bidding process detailed working drawings had to be prepared so that constructiorl firms in the Washington area would know the precise specifications for the building

During the spring Mr Brunatti proceeded to develop working drawings Plans for either one or two wings kept open the options for the Board decision In May bids were received from six major contractors in the Washington area for one wing and for both wings After a series of negotiations during which the Federation made concessions on the specifications in order to reduce costs the low bidder the Merit Corporation further reduced its bid The bids were reported to the Board at its meeting in June and an adjusted financial plan was reviewed The Board then voted to authorize the Executive Director to proceed with the construction of both proposed wings to the Lee Building within an expected cost of $3600000

The Federation had applied in the spring to Montshygomery County for an Economic Development Bond which would enable it to borrow money for the new construction below the prime interest rateIn October an Economic Development Bond was awarded by Montshy

gomery County which enabled the Federation to negotishyate with lending institutions from a position of strength After negotiations with several banks the Federation arranged to borrow $2900000 from the Maryland National Bank at 70 of the prime rate The interest rate could rise or fall with changes in the prevailing prime The Board therefore set in place a financial plan using its reserves to protect the amortization schedule against fluctuations in the prime interest rate

During the summer and early fall of 1984 final negoshytiations between all parties concerned with construction were completed and the contracts signed At the meetshying of the Governing Board in November the final details of the loans and contracts were explained again to the Board The President the Executive Director and the Comptroller reported on several days spent with archishytects attorneys and representatives from the Merit Corporation the Maryland National Bank and Montshygomery County in drawing up the very extensive legal documents committing the Federation to its course After the final building review the Board went to the site of the new addition for groundbreaking ceremonies which were held in an atmosphere of optimism The completion date for the building is scheduled for May of 1986

Although the Board during its three 1984 meetings was heavily involved with new building construction a number of other actions were taken to strengthen the Federations programs Among them was the decision of the Board to establish a Long Range Planning Comshymittee to consider annually the course of the Federation and to review with the President and Executive Director the opportunities which were available for service to the biological and medical research communities The Long Range Planning Committee met with both President Hardman and President Grisham during 1984 and pro-

Federation Board November 30 1984

-6shy

vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

-7shy

Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

-8shy

Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

---- --------------

------ ---

-------- --- - - - -- - -- -

---- -- - ---

--------- --- -- -- --

- ---- ---- -- - ------

-- -- ----- -- -- - -- --

- -- - ----- ---------

--- ------ -- - -- - - --

-9shy

Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-6shy

vid9d a report of considerable value to the Federation Included among them was the endorsement of the new addition to the Milton O Lee Building and the financial plan to protect the amortization schedule The Long Range Planning Committee also considered the nature of Federation scientific meetings endorsing the Sumshymer Research Conferences and suggesting the possibilshyity of regional meetings in the years ahead The Long Range Planning Committee further reviewed new initiashytives by the Office of Public Affairs It examined the concerns of certain Societies for the improvement of the journal Federation Proceedings and it made a number of suggestions especially in the area of biochemistry The Board reviewed and favorally supported the Comshymittees report It urged the Long Range Planning Committee to continue its activities and to bring more suggestions for improvement in the Federations posture in the futu reo

The Federation Board which sets the policy for the Federation was also determined that the public and Federal agencies learn of its concern for protecting the right of the Biological Research Community to use anishymals in research I t urged furthermore that the peer review system be extended as broadly as possible in the allocations of funding for research in all areas of science It also voiced concern about escalating indirect costs of Federally supported research and the need for developshying a dialogue with other organizations in order to keep indirect costs at a reasonable level It directed that careshyful future attention be paid to the debate on possible regulation of the merging new fields of biotechnology and genetic engineering finally the Board reiterated its commitment to continue the strong program that had been scheduled for the Office of Public Affairs

FINANCES

The budget for the Federation for 1984 reached $8012056 Each fall after a careful internal review a proposed budget for the subsequent year is submitted to the Finance Committee and Board for approval It is prepared to ensure that the fiscal integrity of the Federashytion is preserved and that its management meets the highest legal and professional standards It is designed to assure that the expenses of the Board approved pro shygrams are balanced against adequate revenues This year the proposed budget matched very closely the audited experience of the Federation for the year The audited statements serve as a basis for reports and returns submitted to various governmental jurisdictions in compliance with the law

This report presents the complete statement and balance sheet as of December 311984 submitted by the Federations external auditors Arthur Andersen amp Co Examination of the Report will show that the federashytions expenditures and revenues are balanced A more

graphic breakdown of the FASEB revenue and expenses by activitv is presented in Table 1 The same budget but calculated by categorv is given in Figures 1 and 2 Several points are of interest First the Federation is continuing to move from overly heavy dependence on the Annual Meeting for its revenues In 1982 the pershycentage of revenue by activity received from the Annual Meetings was 237 In 1983 that revenue declined to 226 and in 1984 it was reduced to 17 This does not in any way indicate that the Annual Meetings are not of great importance to the Federation financially as well as scientifically It does however show that the Federashytion is broadening its base and is acquiring revenues from activities other than the Annual Meeting to meet its expenses The amount of revenue generated and consequently the expense incurred from Federation Proceedings has also decreased At the same time the revenues from the Summer Research Conferences and private and governmental contracts increased compared to 1983 Attendance has increased by 30 and revenues from the Summer Research Conferences which are becoming an increasingly larger part of FederationS activities have risen to 66 compared to 46 in 1983 The Life Sciences Research Office has had an unusually productive year in meeting governmental contractual needs The Print Shop and Data Processing Center both earned more than their expenses indicating progress in achieving a balanced budget for those operations as well

Distributions to Societies amounted to slightly less than the Federation assessment in 1984 This is primarily due to the fact that in 1984 two Societies met separately from the Federation for their annual meetings However those Societies were able to recover the expense of their assessment by revenues derived at their separate annual meeting For the four Societies who participated in tire Annual Meeting in 1984 the Federation returned more than the total assessment due from them for the operashytion of the Federation

The Federation owns its physical plant at 9650 Rockshyville Pike Bethesda Maryland which consists of 113 acres As of November 29 1984 the Federation borshyrowed $29 million from the Maryland National Bank to assist in the construction of the new building This mortgage will be amortized over a period of 30 years and will be funded by rental rates based on operating costs of the building in the years ahead The Federation location adjoining the National Institutes of Health the US Naval Medical Center the Uniformed Services University of the Health Sciences as well as the National Library of Medicine is ideally situated on the periphery of Washington DC to place the organization in a strategic pOSition to engage in the business of scishyence in the Nations Capitol

The auditing firm of Arthur Andersen amp Co has audited the financial status for the Federation The firms statement and balance sheet are covered in detail in Tables 2 3 and 4 and in the notes to the financial stateshyment

-7shy

Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

-8shy

Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

---- --------------

------ ---

-------- --- - - - -- - -- -

---- -- - ---

--------- --- -- -- --

- ---- ---- -- - ------

-- -- ----- -- -- - -- --

- -- - ----- ---------

--- ------ -- - -- - - --

-9shy

Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-7shy

Table 1 The FASEB Statement of Revenue

and Expense 1984

REVENUE - 1984 EXPENSE - 1984

By Activity Amount -shy

I

By Activity Amount -shy

Federation Proceedings $ 703464 87 Federation Proceedings $ 687556 86 Annual Meeting 1362982 17 0 Annual Meeting 1342379 168 Placement Service 101236 13 Placement Service 96638 12 Membership Directory 109124 14 Membership Directory 105733 13 Public Affairs 211 053 26 Public Affairs 204251 25 Summer Research Conferences 524984 66 Summer Research Conferences 473872 59 Buildings amp Grounds 347159 43 Buildings amp Grounds 465334 58 Print Shop amp Composition 662734 83 Print Shop amp Composition 600726 75 Data Processing 444068 55 Data Processing 416209 52 Business Service Activities 637047 79 Business Service Activities 742926 93 Government Contracts 1256027 157 Government Contracts 940859 118 Private Contracts 781734 98 Private Contracts 692327 86 General amp Administrative 870444 109

--shyGeneral amp Administrative 402508 50

Total $8012056 1000 Reserves and Allocations 840738 105 -shy Total $8012056 100 0

-shy-shyBy Category By Category

Society Assessments $1075663 134 Personnel Costs $2679860 335 Publication Sales 709892 89 Printing 667684 83 Exhibits Registrations Abstract Meeting amp Publication Services 647813 81

Handling Fees shy Scientific Consultant Fees amp Stipends 238840 30 Meetings 1593140 199 Supplies Mailing amp Operating

Rental Income 335228 42 Expenses 1097303 137 Business Service Billings 1388411 173 Travel 660072 82 Conference Support 238496 30 Maintenance amp Buildings Expense 487718 61 Government Contracts 1256027 157 Society Distributions 692028 86 Private Contracts Iinvestment Income Other Income

781734 98 455466 56 177999 22 -shy

Reserves amp Allocations

Total

840738

$8012056

105 --shy

1000 -shy

Total $8012056 1000 -shy-shy

-8shy

Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

---- --------------

------ ---

-------- --- - - - -- - -- -

---- -- - ---

--------- --- -- -- --

- ---- ---- -- - ------

-- -- ----- -- -- - -- --

- -- - ----- ---------

--- ------ -- - -- - - --

-9shy

Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-8shy

Calculated by Category

Distributions 186)

Co nsultant Fees amp Stipends 13 0

Society Publication Private Sales (89) Con tracts (9 8)

Conference Support (30 1

Rental Income (421 Meeting

amp Publication Investment Services 181 ) Income (56)

I~=~~====~-~~i~sectsectsectsectsectsect~t-- Income (22) Other

Fig 1 Sources of Revenue of the FASEB for the Fig 2 Expenses for the FAS EB for the Calendar Ca lendar Year 1984 (Total $80120561 Year 1984 ITotal $8012056)

J (

f

The Federation Board in Groundbreaking ceremonies for the new wings to the M 0 Lee Building November 30 1984

---- --------------

------ ---

-------- --- - - - -- - -- -

---- -- - ---

--------- --- -- -- --

- ---- ---- -- - ------

-- -- ----- -- -- - -- --

- -- - ----- ---------

--- ------ -- - -- - - --

-9shy

Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

---- --------------

------ ---

-------- --- - - - -- - -- -

---- -- - ---

--------- --- -- -- --

- ---- ---- -- - ------

-- -- ----- -- -- - -- --

- -- - ----- ---------

--- ------ -- - -- - - --

-9shy

Table 2 Auditors Statement and Balance Sheet

December 31 1984 (with comparative totals for 1983)

To the Federation Board of Federation of American Societies

for Experimental Biology

We have examined the balance sheet of FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMEIHAL BIOLOGY (a not-for-profit District of Columbia corporashytion) as of December 31 1984 and the related stateshyments of revenue and expense and changes in financial position for the year then ended Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances

ASS ETS CURRENT ASSETS

Cash and Cash Equivalents Receivables

Government Contracts and Grants (Note 1) Interfund Receivables (Payables) Member Societies and Custodial Accounts Membership Publication and Contract Services

Supplies Prepaid Annual Meeting amp Other Prepaid Expenses

INVESTMENTS at Cost (Note 2)

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

Depreciation of $1057148) Furniture and Equipment (Net of Accumulated

Depreciation of $842569) New Building Construction in Process (Note 5)

LIABILITIES AND FUND BALANCE CURRENT LIABILITIES

Accounts Payable and Accrued Expenses Deferred Revenue from Future Publication Sales Placement

Service and Annual Meeting Income Collected In 1984 Amount Held for Member Societies (Note 4) Amounts Owed to Government and Others Accrued Annual Leave

LONG-TERM DEBT (Note 5)

FUND BALANCE Fund Balance December 31 1983 Excess of Revenue over Expense

Fund Balance December 31 1984

the preceding year

March 4 1985

Current Fund

$ 184112

60533 60533

453539 238131

1191 187

5755039

760636

295110 272033

1327779

$8274 005

$ 275781

657003 637668

136314

1706766

2900 1XIO

4606 766

2826859 840380

3667239

$8274 005

In our OpiniOn the financial statements referred to above present fairly the financial position of Federation of American Societies for Experimental Biology as of December 31 1984 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accountshying principles applied on a basis consistent with that of

ARTHUR ANDERSEN amp CO

Total All Funds (Note 9)

December 31 1984 December 31 1983

$ 184112 $ 264063

241878 193966

60533 49775 493018 690168 240974 196630

1220515 1394602

5870 333 1861 663

760636 786749

295110 370622 272033 107513

1327779 1264884

$8418627 $4 521149

$ 277626 $ 362513

657003 614712 637668 268610 142777 323032 136314 125423

1851388 1694290

2900000

4751388 1694290

2826859 2555428 840380 271431

3667239 2826859

8418627 $4521149

Restricted Fund

$

241878 (254872)

39479

2843

29328

115294

$ 144622

$ 1845

14277

144622

144622

$ 144622

The accompanying notes are an ilntegral part of this Balance Sheet

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-10shy

Table 3 Federation of American Societies for Experimental Biology

Statement of Revenue and Expense for the Year Ended December 31 1984 (with comparative totals for 1983)

Current Restricted Total All Funds (Note 9)

Fund Fund December 31 1984 December 31 1983

REVENUE Assessment to Member Societies (Note 41 $1 075663 $ $1075663 $ 959294 Government and Private Contracts (Note 11 1447091 1447091 727827 Subscriptions 274188 274188 270922 Abstract Handling Fees 96160 96160 128380 Single Issue Sales 107113 8509 115622 124393 Reprint Sales 51959 1907 53866 71569 Advertising 217509 7975 225484 198142 Educational Exhibits 658835 6450 665285 677574 Registrations (Note 6) 838145 476669 1314814 1972 154 Conference Support 238496 238496 123810 Interview Fees and Searches 17933 17933 12060 Rent 335228 335228 327879 Author Charges 2018 2018 3177 Business Service Charges to Custodian Funds 49013 49013 48305 Printing Computer and Other Services (Note 1) 1339398 1339398 121U65 Dividends Interest and Net Capital Gains (Note 5) 455466 20316 475782 197659 Dividends and Allowances-Group Insurance Plan s 104265 104265 85913 Redactory Services 57105 57105 54648 Management Fees 30886 30886 25029 Other Income 24915 68844 93759 93089

5974295 2037761-shy _shy - - -shy 8012056

-shy - - - - -_ 7313059 -shy - -shy -- shy -

EXPENSE Personnel Costs 2047098 632762 2679860 2476513 Contracted Services 182222 87623 269845 316893 Composition and Printing 523229 128282 651511 572771 Cost of Reprints 14810 1363 16173 18604 Advertising Commissions 40328 40328 37704 Exhibit Commissions 5901 5901 30390 Theme Sessions 13980 13980 13708 Poster Session 17580 25424 43004 44456 Promotion 12397 12397 8422 Projection and Public Address Services 73106 48941 122047 166497 Consultant Fees and Stipends 238840 238840 102701 Public Information Service 23939 2359 26298 21798 Rentals of Space and Equipment 55530 33483 89013 127867 Supplies and Duplicating 426629 98026 524655 528452 Communications and Shipping 250167 69 823 319990 293260 Hotel and Travel 496084 163988 660072 473721 Computer Services 59413 24 149 83562 85181 Repairs and Maintenance Expense 119999 4841 124840 134960 Depreciation (Note 3) 195844 195844 193705 Insurance and Taxes 58882 17658 76540 72444 Utilities 90494 90494 91272 Classified Advertising 6611 6611 3922 Auditing Legal and Investment Fees 18933 1062 19995 20036 Contributions 3150 3150 3250 Loss Due to Restructuring of Biological

Handbooks Contract 25000 25000 Other Expenses and Supplies 90679 48661 139340 268938

4846104 1633186 6479290 6107465 Allocations

Fixed Fees Charged to Restricted Fund (79976) 79976 Indirect Expenses Charged to Restricted Fund (324599) 324599 Member Societies (Note 4) 1329696 1329696 1144387

5771225 2037761 7808986 - --shy -shy --shy

7251852 --shy -shy -shy - -

Excess of Revenue Over Expense Before Capital Additions and Distributions 203070 203070 61207

Distribution of 1983 Unallocated Income (Note 4) 268610 268610 210224 Contributions for New Building Construction (Note 5) 368700 368700

Excess of Revenue Over Expense $ 840380 $ $ 840380 $ 271431

The accompanying notes are an integral part of this Statement

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-11shy

Table 4 Federation of American Societies for Experimental Biology

Statement of Changes in Financial Position for the Year Ended December 31 1984

Current Restricted Fund Fund Total

Cash Provided

Excess of Revenue Over Expense for the Year $ 840380 $ 840380

Items Not Requiring Use of Cash Depreciation Expense 195844 195844

Depreciation Expense Charged to Other Expense Accounts 5569 5569

Total Cash Provided from Operations 1041793 1041793

Decrease in Receivables 202404 202404 Increase in Deferred Revenue from Future

Publication Sales Placement Service and Annual Meeting Income 42291 42291

Increase in Amount Held for Member Societies 369058 369058 Increase in Accrued An rl ual Leave 10891 10891 Increase in Long-Term Debt 2900000 2000000

4364033 - --shy - - - -shy

202404 4566437 -------shy - -

Cash Used

Increase in Investments 3986711 21 959 4008670 Increase in Receivables 63924 63924 Increase in Supplies Prepaid Annual Meeting

and Other Prepaid Expenses 44198 146 44344 Equipment Purchases and Capital Improvements 99788 99788 Decrease in Accounts Payable and Accrued

Expenses 84843 44 84887 Decrease in Amounts Owed to Government

and Others 180255 180255 Increase in Construction in Process 164520 164520

4443984 -------shy -

202404 4646388 --shy -shy - - - -shy

Decrease in Cash for the Year $ (79951) $ $ (79951)

The accompanying notes are an integral part of this Statement

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

---- - - ---

-12shy

Federation of American Societies for Experimental Biology Notes to Financial Statements (continued)

December 31 1984

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 eliminated generally except for 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 $349262 which are also induded as expenses in the Current and Restricted Funds

2 INVESTMENTS

The Federation Board has designated the following reserves

At December 31 1984

Market Cost Value

Current Fund General Fund - I nvestment of excess funds available from

the cash flow of the Federation $ 447069 $ 447069

Capital Fund - Investments of accumulated reserves set aside for future uses as designated by the Federation Board 3960 19 400865

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 264251 1276000

New Building Construction Fund - Investment of contributions and Federation Board designated amounts toward new building construction fund 63531 4 635314

Summer Research Conferences - Investment of accumulated net revenues from operation of the Summer Research Conferences set aside for future development and expansion of these conferences 88265 88265

Construction Escrow Account - Investment of proceeds from Economic Development Bond until they are needed to pay new construction cost (see offsetting note payable of $2900000) 2924121

Total Current Fund _~J]~~~ Restricted Fund

Restricted Fund - Investment of excess funds available from the operation of Restricted Fund activities 109822 109822

Memorial Fund - Investment of donations by persons wishing to establish a memorial to a relative or friend to be used to support educational activities 5472 5472

Total Restricted Fund __ ]]E~~ 115294

Total Investments $5870333 $5886928

According to the policy adopted by the Federation Board the above investments are curren Iv in liq uid money market instruments A portion of the Capital Fund and Depreciation Funded Reserve is invested in long- erm bonds with an average maturity of two and one-half years and will be converted to money market investments upon maturity

3 PROPERTY AND EQUIPMENT

Depreciation of Property and Equipment has been computed by the straight-line method over he est imated useful lives of the assets The estimated useful lives are 10 to 50 years for Buildings and Improvements and 5 to 10 yea rs fo r Furniture and Equipment

4 FINANCIAL PLAN

Under the financial plan adopted by the Federation Board the Member Societies are assessed an amoun t 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 The net revenue from the Annual Meeting is distributed to the participating Member Societies in accordance with a formula adopted by the Federation Board

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 gaih or loss of these operations is solely the responsibility of the Federation

Under the terms of the financial plan the distribution to the member Societies in 1984 amounted to $1329696 This includes

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-13shy

$692028 from the 1984 Annual Meeting In addition revenue from dividends and interest from investments net fees on Federal contracts and dividends and administrative allowances on group insurance plans are set aside annually pending a subsequent decision by the Federation Board as to the disposition of these funds The combined revenue from these sources amounted to $637668 in 1984

Revenues from these sources in 1983 amounted to $268610 In April 1984 the Federation Board authorized the distribution of $188206 for investment in Federation reserves and $80404 to eliminate the deficit with respect to Biological Handbooks operations This distribution eliminated the need in 1984 for a separate account for Biological Handbooks

5 NEW BUILDING CONSTRUCTION IN PROCESS

The Federation Board at its meeting on June 21 1984 authorized the construction of two new wings to the Milton O Lee Building at a cost of approximately $3600000 The construction is being 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 balance of the cost is to be covered by Federation reserves and capital contributions from a fund-raising campaign The Federation received $368700 in 1984 from contributions to the bui ld ing fund as reflected in the accompanying Statement of Revenue and Expense

The interest rate on the loan is based on 70 of Maryland National Banks prime rate The terms of the loan require monthly interest payments on the outstanding balance during the construction period Upon completion of the buildings monthly payments will begin and will include equal principal payments of $966667 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 required by the terms of the loan agreement in an escrow account at Maryland National Bank until needed to cover construction costs As of December 31 1984 interest income exceeded interest expense by $3533 which is included in New Build ing Construction in Process on the Balance Sheet

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 FASEB has conveyed into trust the land buildings fixtures and improvements as well as its rights under leases and subleases in existence and those to be executed in the future as security for repayment 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

6 REGISTRATIONS

Meeting registration fees declined approximately $657000 during 1984 due primarily to the 1984 Federation Annual Meeting being a four-Society meeting versus a five-Soci ety meeting in 1983 In addition the I World Conference on Clinical Pharmacology and Th erapeutics meeting was held in 1983 but not in 1984

7 RETIREMENT PLAN

The Federa tion has a contributory 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 min imum age and length of service requirements Th e Federations policy is to fund retirement plan expenses on a current basis This expense amounted to $190612 in 1984

8 FEDERAL INCOME TAX STATUS

The Federa tion 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 founda tio n

9 PRIOR YEARS FINANCIAL STATEMENT

Certain reclassifications of the 1983 comparative information has been made to conform with the 1984 presentation

-14shy

MEMBERSHIP AND PERSONNEL

The membership of the Societies of the Federation number of pe rmanent employees in the Federation continued to increase during 1984 The total membershy family as of December 31 1984 is compared to the four ship of the six corporate Members now amounts to previous years in Table 6 which gives the distribution 24205-a 3 increase over that in 1983 Adding the assigned to each of the seven Federation member Socishystrength of the Affiliate The American Society for Cell eties The total number is higher than the Beaumont Biology the membership amounts to 29617 or an residents because some editorial offices are situated in increase of 45 over the combined membership in 1983 cities other than Washington DC at this time For the (Figure 3) The revenues of the Federation are plotted in second year in its history the constituent Societies of the Figure 4 against the number of employees for the past Federation employ more people than does FAS EB itself 5 years The number of employees in the Federation The major respons ibilities of the Personnel Office are remained constant Societies of the Federation for the administration of the Federations Equal Employshyincreased their permanent employees housed on the ment OpportunityAffirmative Action Program and Beaumont campus by two during the year as shown in Salary Administration Plan as well as staff recruitment Table 5 The total campus population has increased 1 employee benefit plan administrtion and employee

A number of employees being processed through the record maintenance for Society and Federation staffs payroll services are not resident on campus The total The Personnei Office provides major assistance in

30 29 28 27 26 I 25 24 23 22 21 20Vi

D co 19co ltf)

OJ 0

18 fshy

-5 I shy17 co

16 fshyltf)

Qj 15 Ishyn E Q) 14 ~ 13

12 11 eshy

10 9 8 7 fshy

6 fshy

5 4 3 2

o

D Corpor3te Society Members

D New Affiliate Society Members

8 I-

I-

I-

I-

e-

e-

D Gross Revenue

D Employees

-

-

-

f- f-

-

-

-

-

-

I

150

7 140

~ ~ 0

D z 0 130 c

36 ITV)

co ~ ~ SE m Q) 120

D 3

OJ co 0 OJ lt

ctlgt OJ 5 ctl

(J)0

ltf) ltf) 110e

ltJ

4 100

903

80

1980 1981 1982 1983 1984 1980 1981 1982 1983 1984

Fig 3 Total Membership of FASEB Societies 1980-1 984 Fig 4 Revenue and Number o f FAS EB Em ployees 1980-1984

-15shy

developing the budget after a careful annual analysis geous to the Federation Each year all members of the of the relative compensation for each of the positions Federation staff are given annual performance surveys in the Federation Attention is given to compensating and are rewarded by a merit increase system middot Federation employees fairly and at the same time to The Federation staff is a highly qualified one with over structuring a salary schedule which is not disadvanta- 10 carrying either the MD or the PhD degree

Table 5

Federation of American Societies for Experimental Biology

Number of Permanent Employees on the Beaumont Campus as of December 31 1984

1980 1981 1982 1983 1984 -shy -shy - -

FASEB 89 89 93 103 103 APS 39 41 47 50 53 ASBC 11 11 12 12 11 ASPET 4 6 6 5 5 AAPUAREP 6 6 5 8 8 AIN 4 5 5 5 5 ASCN 2 4 4 5 4 AAI 2 2 2 2 2 ASCB 4 5

TOTAL 157 164 174 194 196 (FASEB amp SOCIETIES)

TENANTS 22 25 28 28 26

TOTAL 179 189 202 222 222 CAMPUS -shy -shy -shy -shyPOPULATION

Table 6

Federation of American Societies for Experimental Biology

Number of Permanent Employees on the Payroll as of December 31 1984

1980 1981 1982 1983 1984

FASEB 89 521 89 517 93 514 103 488 103 485 APS 39 228 41 238 47 26 0 50 237 53 249 ASBC 12 70 12 70 14 77 14 66 13 61 ASPET 6 35 7 41 7 39 5 24 5 23 AAP UAREP 17 99 12 70 9 50 12 56 12 56 AIN ASCN 6 35 9 52 9 49 10 48 9 42 AAIJI 2 12 2 12 2 11 13 62 13 61 ASCB 4 19 5 23

TOTALS 171 1000 172 1000 181 1000 211 1000 213 1000 -

-16shy

BUSI ESS SERVICES Most of the internal services provided by the Federashy

tion which support the activities of the Federation and its Societies are under the control of the Office of Busishyness Services The Office is supported by 42 staff memshybers who are assigned to Buildings and Grounds Mainshytenance Housekeeping Data Processing Mailing and Addressing Purchasing Print Shop and Composition and Advertising and Promotion

Buildings and Grounds

The Beaumont Campus of the Federation in Bethesda is comprised of 11 3 acres of grounds with a gross of 78000 sqft of building space including the Beaumont House and Annex the Milton O Lee Building and the Barn Plans for a 50000 sqft addition to the Lee Buildshying were completed this year Buildings and Grounds provides complete housekeeping services for the camshypus as well as general maintenance and groundskeepshying Several small landscaping projects were completed during the year and there is an Integrated Pest Manageshyment Program under supervision of a contract entomolshyogist As a result of this program less insecticide is being applied but the strategy of application has resulted in significant improvement in effectiveness against pests

Total energy consumption has increased slightly due to the renovation of 2400 sqft of the Barn to enlarge the Mail Room However gas consumption was still down 32 since 1981 and down 8 further since 1983

Staff completed 916 work orders and provided service for 572 meetings and luncheons Nearly 200 of these meetings have been sponsored by NIH NASA NOAA and other agencies Opportunities for scientific exshychange are enhanced while improving the efficiency of building utilization

Mailing Addressing and Purchasing Services

The move of the mailing services a year ago from the lLee Building to newly-remodeled space in the Barn has proven to be very satisfactory The volume of outgoing mail has broken the one million piece mark Only one addressing job l1ad to be sent to subcontractors for the year 1984

A Data Pack system was purchased in December 1984 The system has the capability of giving daily monthly and annual reports of postage and counts broken down by account number There was no addishytional equipment purchased and there were no addishytional employees hired in 1984

The Purchasing Office continues to maintain contact with many suppliers as well as maintaining a library of catalogues to assist campus personnel in the selection of office supplies equipment and furniture at the best possible prices The Purchasing Office has also joined the National Association of Education Buyers an association offering a large variety of supplies at disshy

count prices We plan to convert all stock items from a manual inventory system to a computerized system in early 1985 Also to be computerized will be the journal inventory

Computer Services

A new Data Processing supervisor was appoined in the spring and a comprehensive review of our compute services and future directions was undertaken both internally and with assistance from Arthur Andersen and Company The focus of these studies just completed is to analyze the current and projected reshyquirements for computer services by FASEB Departshyments and Society offices and the current and proshyJected ability of the Data Processing installation and staff to provide the needed services

The Galaxy G 5 computer with 45 terminals conshytinues to support our major application areas Membershyship Subscriptions Accounting and Abstract Processshying The Molecular Super 8 terminals are dedicated to word processing and bibliographic applications in supshyport of an LS RO UAR EP contract with the Environshymental Protection Agency The Molecular 32 terminals are fully utilized for word processing spreadsheets and special DBII applications in many campus offices All the computers are tied to the MCS digitized phototypeshysetting system Meeting registrations exhibits manageshyments and manuscripts tracking are also supported

The staff was reduced from seven to six during the year because a mid-year review indicated that revenues would not cover expenses Other economies were also made and rates were adjusted vith the result that net revenues for the year were abo t 25 over budget

During the coming year a plan and migration strategy based on findings of a comprehensive review for shifting service capability to a more modern network will be developed

Subscriptions and Pu blications Processing

The Subscription section is responsible for processing order fulfillment and single issue sales for non-member subscribers for The Journal ofN urition The American Journal of Clinical Nutntion Federation Proceedings and the Journal of Lipid Research totalling about 18000 subscribers The Dues Col lec tion section pro shycesses dues and optional subscriptions in response to membership correspondence for nine societies with a total membership of 20000 They include two FASEB Societies AIN and AAI as well as The Endocrine Socishyety the Biophysical Society the American Society of Neurochemistry and four smaller societies The Special Publications section handles reprint orders for Federashytion Proceedings The Journal of Nutrition The Journal of Lipid Research and Society for Neuroscience Abshy

-17shy

stracts as well as sales of the FASEB Directory of Members LSRO reports and reports for the National Library of Medicine In all cases dues subscriptions and publication sales procedures are computer-based to provide needed accounting records and on-line records for analysis

Print Shop and Composition

The number of jobs remains constant However as new Society members are added the number of impresshysions con tinues to increase In 1984 in excess of four million impressiors vve re printed This exceeds 17 million individual pages or pieces The Xerox 9500 Copier Duplicator also produced 23 million copies - an inshycrease of 300000 pieces The Print Shop also provides consulting services and acts as a broker for jobs requirshying outside services The Composition section produces camera -ready copy for newsletters directories journals and various other types of work Many users are now keyboarding copy in their offices and transmiting via the MCS-computer interface In 1985 composition for the Guide to Exhibits will also be typeset via this interface

The contract for typesetting the Journal of Nutrition has been continued on the Modular Composition Sysshytem A contract with the Journal of Lipid Research beginning with the January 1985 issue has been signed

Advertising Promotion and Other Functions

Among the various business services not delegated to other units of the Department are coordination of advertising for Federation Proceedings subscription fulshyfillment for all member subscriptions direct mail proshymotions of publications coordination of member insurshyance programs insu rance coverage required for FASEB and Society Offices promotion and distribution of mailshying lists rentals provision of Secretariat society management services for smaller biological societies and the administration of campus-wide services such as telephones parking and office space rental During the year the Federation Proceedings advertising was transferred to a Bal timore advertising agency The conshytract was modified so as to accomplish a much larger portion of the wor by Federation staff The transition has gone smomhly

Time has een devoted to analysis of long-term teleshyphone needs especially as they relate to expansion into the new addition and to the potentia l for integrated vOlcedata networks in the futu re

SCIENTIFIC MEETINGS The primary function of the Office of Scientific

Meetings (OSM) is to provide logistical management and support for the FASEB Annual Meeting and Exposishytion and the meetings of individual constituent societies In addition the Office supplies meeting management services on a contractual basis for organizations whose interests are consonant with those of the Federation

The 68th Annual Meeting organized by four societies convened in St Louis in April of this year The Annual Meeting of the American Society of Biological Chemists and The American Association of Immunologists met in St Louis in June Statistics for the two meetings are illustrated in Table 7

Other meetings administered by the Office of Scishyentific Meetings in 1984 included the Undersea Medical Society Meeting (276 in attendance) The American Physiological Society Fall Meeting (761) and the Socishyety for Neuroscience Annual Meeting (7922)

Two years ago in an effort to reduce expenditures and streamline operational procedures OSM elected to bring the management of the FASEB Annual Exposition in-house Results indicate a second year of favorable response by exhibitors and a significant savings to the Federation The continued growth of exhibit sales dictates the procurement of additional space for the exposition at future meeting sites

In 1985 in addition to coordinating the meetings of FASEB The American Physiological Society and the Society for Neuroscience the staff will continue work on the X World Congress of Cardiology scheduled for September 1986

Future plans for the office are to undertake the management of additional meetings of other biological and medical research societies Services offered are staffing of planning and programming committees negotiating contracts with hotels conventions centers and suppliers preparing the Call for Abstracts and pubshylicity announcements processing registration and housshying requests coordinating all physical arrangements such as facility and supp lier instructions food and beverage orders audiovisual equipment bussing meetshying room set ups and on-site administration

--

-18shy

Table 7 Statistics for the

1984 Annual Meetings of the Federation of American Societies for Experimental Biology

and American Society of Biological Chemists

The American Association of Immunologists

Scientific Registration

Programed Abstracts

Oral Paper Sessions

Poster Session Titles

Symposia Minisymposia and Specia l Sessions

Ancillary Functions

Exhibit Booths

Placement Service

Interviewers

Candidates

FASEB

7613

4724

134

160

112

229

509

235

452

ASBClAAI

6770

3779

0

164

83

51

358

256

452

TOTALS

14383

8503

134

324

195

280

867

491

904

PLACEMENT SERVICE The FASEB Placement Service is a valued component

of the Federation Candidates seeking employment and recruiting employers in the field of biological research administration and medicine are served through a central clearinghouse located in Bethesda and a careshyfully orchestrated interviewing facility operated in conshyjunction with scientific meetings

The FAS EB Placement Service conducted six on-site Placement Services in 1984 The statistics for these meetings are listed below

Employersl Interviews Candidates Interviewers Scheduled

68th FASEB Meeting (4 societies) 452 235 2045

ASBCAAI 452 256 2638 The Endocrine Society 66 28 124 Society for Neuroscience 409 194 1210 ASCB 148 107 634 ASA 516 93 1685

TOTAL 2043 913 8336

The Placement Service prepares the monthly Employ shyment Opportunities section for Federation Proceedings In 1984 advertisements for 185 Positions Available and 791 Positions Desired were published In 1984 313 requests were recei ved from employers for 2162 canshydidate applications In the 223 searches of Placement Service files 2106 applications were sent to employers A year-round Placement Service is conducted for The Endocrine Society The Employment Opportunities secshytions of Endocrinologv and The Journal of Clinical Endocrinologv and Metabolism are prepared by the Placement Service The Society for Neuroscience is provided an on-site Placement Service

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-15shy

developing the budget after a careful annual analysis geous to the Federation Each year all members of the of the relative compensation for each of the positions Federation staff are given annual performance surveys in the Federation Attention is given to compensating and are rewarded by a merit increase system middot Federation employees fairly and at the same time to The Federation staff is a highly qualified one with over structuring a salary schedule which is not disadvanta- 10 carrying either the MD or the PhD degree

Table 5

Federation of American Societies for Experimental Biology

Number of Permanent Employees on the Beaumont Campus as of December 31 1984

1980 1981 1982 1983 1984 -shy -shy - -

FASEB 89 89 93 103 103 APS 39 41 47 50 53 ASBC 11 11 12 12 11 ASPET 4 6 6 5 5 AAPUAREP 6 6 5 8 8 AIN 4 5 5 5 5 ASCN 2 4 4 5 4 AAI 2 2 2 2 2 ASCB 4 5

TOTAL 157 164 174 194 196 (FASEB amp SOCIETIES)

TENANTS 22 25 28 28 26

TOTAL 179 189 202 222 222 CAMPUS -shy -shy -shy -shyPOPULATION

Table 6

Federation of American Societies for Experimental Biology

Number of Permanent Employees on the Payroll as of December 31 1984

1980 1981 1982 1983 1984

FASEB 89 521 89 517 93 514 103 488 103 485 APS 39 228 41 238 47 26 0 50 237 53 249 ASBC 12 70 12 70 14 77 14 66 13 61 ASPET 6 35 7 41 7 39 5 24 5 23 AAP UAREP 17 99 12 70 9 50 12 56 12 56 AIN ASCN 6 35 9 52 9 49 10 48 9 42 AAIJI 2 12 2 12 2 11 13 62 13 61 ASCB 4 19 5 23

TOTALS 171 1000 172 1000 181 1000 211 1000 213 1000 -

-16shy

BUSI ESS SERVICES Most of the internal services provided by the Federashy

tion which support the activities of the Federation and its Societies are under the control of the Office of Busishyness Services The Office is supported by 42 staff memshybers who are assigned to Buildings and Grounds Mainshytenance Housekeeping Data Processing Mailing and Addressing Purchasing Print Shop and Composition and Advertising and Promotion

Buildings and Grounds

The Beaumont Campus of the Federation in Bethesda is comprised of 11 3 acres of grounds with a gross of 78000 sqft of building space including the Beaumont House and Annex the Milton O Lee Building and the Barn Plans for a 50000 sqft addition to the Lee Buildshying were completed this year Buildings and Grounds provides complete housekeeping services for the camshypus as well as general maintenance and groundskeepshying Several small landscaping projects were completed during the year and there is an Integrated Pest Manageshyment Program under supervision of a contract entomolshyogist As a result of this program less insecticide is being applied but the strategy of application has resulted in significant improvement in effectiveness against pests

Total energy consumption has increased slightly due to the renovation of 2400 sqft of the Barn to enlarge the Mail Room However gas consumption was still down 32 since 1981 and down 8 further since 1983

Staff completed 916 work orders and provided service for 572 meetings and luncheons Nearly 200 of these meetings have been sponsored by NIH NASA NOAA and other agencies Opportunities for scientific exshychange are enhanced while improving the efficiency of building utilization

Mailing Addressing and Purchasing Services

The move of the mailing services a year ago from the lLee Building to newly-remodeled space in the Barn has proven to be very satisfactory The volume of outgoing mail has broken the one million piece mark Only one addressing job l1ad to be sent to subcontractors for the year 1984

A Data Pack system was purchased in December 1984 The system has the capability of giving daily monthly and annual reports of postage and counts broken down by account number There was no addishytional equipment purchased and there were no addishytional employees hired in 1984

The Purchasing Office continues to maintain contact with many suppliers as well as maintaining a library of catalogues to assist campus personnel in the selection of office supplies equipment and furniture at the best possible prices The Purchasing Office has also joined the National Association of Education Buyers an association offering a large variety of supplies at disshy

count prices We plan to convert all stock items from a manual inventory system to a computerized system in early 1985 Also to be computerized will be the journal inventory

Computer Services

A new Data Processing supervisor was appoined in the spring and a comprehensive review of our compute services and future directions was undertaken both internally and with assistance from Arthur Andersen and Company The focus of these studies just completed is to analyze the current and projected reshyquirements for computer services by FASEB Departshyments and Society offices and the current and proshyJected ability of the Data Processing installation and staff to provide the needed services

The Galaxy G 5 computer with 45 terminals conshytinues to support our major application areas Membershyship Subscriptions Accounting and Abstract Processshying The Molecular Super 8 terminals are dedicated to word processing and bibliographic applications in supshyport of an LS RO UAR EP contract with the Environshymental Protection Agency The Molecular 32 terminals are fully utilized for word processing spreadsheets and special DBII applications in many campus offices All the computers are tied to the MCS digitized phototypeshysetting system Meeting registrations exhibits manageshyments and manuscripts tracking are also supported

The staff was reduced from seven to six during the year because a mid-year review indicated that revenues would not cover expenses Other economies were also made and rates were adjusted vith the result that net revenues for the year were abo t 25 over budget

During the coming year a plan and migration strategy based on findings of a comprehensive review for shifting service capability to a more modern network will be developed

Subscriptions and Pu blications Processing

The Subscription section is responsible for processing order fulfillment and single issue sales for non-member subscribers for The Journal ofN urition The American Journal of Clinical Nutntion Federation Proceedings and the Journal of Lipid Research totalling about 18000 subscribers The Dues Col lec tion section pro shycesses dues and optional subscriptions in response to membership correspondence for nine societies with a total membership of 20000 They include two FASEB Societies AIN and AAI as well as The Endocrine Socishyety the Biophysical Society the American Society of Neurochemistry and four smaller societies The Special Publications section handles reprint orders for Federashytion Proceedings The Journal of Nutrition The Journal of Lipid Research and Society for Neuroscience Abshy

-17shy

stracts as well as sales of the FASEB Directory of Members LSRO reports and reports for the National Library of Medicine In all cases dues subscriptions and publication sales procedures are computer-based to provide needed accounting records and on-line records for analysis

Print Shop and Composition

The number of jobs remains constant However as new Society members are added the number of impresshysions con tinues to increase In 1984 in excess of four million impressiors vve re printed This exceeds 17 million individual pages or pieces The Xerox 9500 Copier Duplicator also produced 23 million copies - an inshycrease of 300000 pieces The Print Shop also provides consulting services and acts as a broker for jobs requirshying outside services The Composition section produces camera -ready copy for newsletters directories journals and various other types of work Many users are now keyboarding copy in their offices and transmiting via the MCS-computer interface In 1985 composition for the Guide to Exhibits will also be typeset via this interface

The contract for typesetting the Journal of Nutrition has been continued on the Modular Composition Sysshytem A contract with the Journal of Lipid Research beginning with the January 1985 issue has been signed

Advertising Promotion and Other Functions

Among the various business services not delegated to other units of the Department are coordination of advertising for Federation Proceedings subscription fulshyfillment for all member subscriptions direct mail proshymotions of publications coordination of member insurshyance programs insu rance coverage required for FASEB and Society Offices promotion and distribution of mailshying lists rentals provision of Secretariat society management services for smaller biological societies and the administration of campus-wide services such as telephones parking and office space rental During the year the Federation Proceedings advertising was transferred to a Bal timore advertising agency The conshytract was modified so as to accomplish a much larger portion of the wor by Federation staff The transition has gone smomhly

Time has een devoted to analysis of long-term teleshyphone needs especially as they relate to expansion into the new addition and to the potentia l for integrated vOlcedata networks in the futu re

SCIENTIFIC MEETINGS The primary function of the Office of Scientific

Meetings (OSM) is to provide logistical management and support for the FASEB Annual Meeting and Exposishytion and the meetings of individual constituent societies In addition the Office supplies meeting management services on a contractual basis for organizations whose interests are consonant with those of the Federation

The 68th Annual Meeting organized by four societies convened in St Louis in April of this year The Annual Meeting of the American Society of Biological Chemists and The American Association of Immunologists met in St Louis in June Statistics for the two meetings are illustrated in Table 7

Other meetings administered by the Office of Scishyentific Meetings in 1984 included the Undersea Medical Society Meeting (276 in attendance) The American Physiological Society Fall Meeting (761) and the Socishyety for Neuroscience Annual Meeting (7922)

Two years ago in an effort to reduce expenditures and streamline operational procedures OSM elected to bring the management of the FASEB Annual Exposition in-house Results indicate a second year of favorable response by exhibitors and a significant savings to the Federation The continued growth of exhibit sales dictates the procurement of additional space for the exposition at future meeting sites

In 1985 in addition to coordinating the meetings of FASEB The American Physiological Society and the Society for Neuroscience the staff will continue work on the X World Congress of Cardiology scheduled for September 1986

Future plans for the office are to undertake the management of additional meetings of other biological and medical research societies Services offered are staffing of planning and programming committees negotiating contracts with hotels conventions centers and suppliers preparing the Call for Abstracts and pubshylicity announcements processing registration and housshying requests coordinating all physical arrangements such as facility and supp lier instructions food and beverage orders audiovisual equipment bussing meetshying room set ups and on-site administration

--

-18shy

Table 7 Statistics for the

1984 Annual Meetings of the Federation of American Societies for Experimental Biology

and American Society of Biological Chemists

The American Association of Immunologists

Scientific Registration

Programed Abstracts

Oral Paper Sessions

Poster Session Titles

Symposia Minisymposia and Specia l Sessions

Ancillary Functions

Exhibit Booths

Placement Service

Interviewers

Candidates

FASEB

7613

4724

134

160

112

229

509

235

452

ASBClAAI

6770

3779

0

164

83

51

358

256

452

TOTALS

14383

8503

134

324

195

280

867

491

904

PLACEMENT SERVICE The FASEB Placement Service is a valued component

of the Federation Candidates seeking employment and recruiting employers in the field of biological research administration and medicine are served through a central clearinghouse located in Bethesda and a careshyfully orchestrated interviewing facility operated in conshyjunction with scientific meetings

The FAS EB Placement Service conducted six on-site Placement Services in 1984 The statistics for these meetings are listed below

Employersl Interviews Candidates Interviewers Scheduled

68th FASEB Meeting (4 societies) 452 235 2045

ASBCAAI 452 256 2638 The Endocrine Society 66 28 124 Society for Neuroscience 409 194 1210 ASCB 148 107 634 ASA 516 93 1685

TOTAL 2043 913 8336

The Placement Service prepares the monthly Employ shyment Opportunities section for Federation Proceedings In 1984 advertisements for 185 Positions Available and 791 Positions Desired were published In 1984 313 requests were recei ved from employers for 2162 canshydidate applications In the 223 searches of Placement Service files 2106 applications were sent to employers A year-round Placement Service is conducted for The Endocrine Society The Employment Opportunities secshytions of Endocrinologv and The Journal of Clinical Endocrinologv and Metabolism are prepared by the Placement Service The Society for Neuroscience is provided an on-site Placement Service

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-16shy

BUSI ESS SERVICES Most of the internal services provided by the Federashy

tion which support the activities of the Federation and its Societies are under the control of the Office of Busishyness Services The Office is supported by 42 staff memshybers who are assigned to Buildings and Grounds Mainshytenance Housekeeping Data Processing Mailing and Addressing Purchasing Print Shop and Composition and Advertising and Promotion

Buildings and Grounds

The Beaumont Campus of the Federation in Bethesda is comprised of 11 3 acres of grounds with a gross of 78000 sqft of building space including the Beaumont House and Annex the Milton O Lee Building and the Barn Plans for a 50000 sqft addition to the Lee Buildshying were completed this year Buildings and Grounds provides complete housekeeping services for the camshypus as well as general maintenance and groundskeepshying Several small landscaping projects were completed during the year and there is an Integrated Pest Manageshyment Program under supervision of a contract entomolshyogist As a result of this program less insecticide is being applied but the strategy of application has resulted in significant improvement in effectiveness against pests

Total energy consumption has increased slightly due to the renovation of 2400 sqft of the Barn to enlarge the Mail Room However gas consumption was still down 32 since 1981 and down 8 further since 1983

Staff completed 916 work orders and provided service for 572 meetings and luncheons Nearly 200 of these meetings have been sponsored by NIH NASA NOAA and other agencies Opportunities for scientific exshychange are enhanced while improving the efficiency of building utilization

Mailing Addressing and Purchasing Services

The move of the mailing services a year ago from the lLee Building to newly-remodeled space in the Barn has proven to be very satisfactory The volume of outgoing mail has broken the one million piece mark Only one addressing job l1ad to be sent to subcontractors for the year 1984

A Data Pack system was purchased in December 1984 The system has the capability of giving daily monthly and annual reports of postage and counts broken down by account number There was no addishytional equipment purchased and there were no addishytional employees hired in 1984

The Purchasing Office continues to maintain contact with many suppliers as well as maintaining a library of catalogues to assist campus personnel in the selection of office supplies equipment and furniture at the best possible prices The Purchasing Office has also joined the National Association of Education Buyers an association offering a large variety of supplies at disshy

count prices We plan to convert all stock items from a manual inventory system to a computerized system in early 1985 Also to be computerized will be the journal inventory

Computer Services

A new Data Processing supervisor was appoined in the spring and a comprehensive review of our compute services and future directions was undertaken both internally and with assistance from Arthur Andersen and Company The focus of these studies just completed is to analyze the current and projected reshyquirements for computer services by FASEB Departshyments and Society offices and the current and proshyJected ability of the Data Processing installation and staff to provide the needed services

The Galaxy G 5 computer with 45 terminals conshytinues to support our major application areas Membershyship Subscriptions Accounting and Abstract Processshying The Molecular Super 8 terminals are dedicated to word processing and bibliographic applications in supshyport of an LS RO UAR EP contract with the Environshymental Protection Agency The Molecular 32 terminals are fully utilized for word processing spreadsheets and special DBII applications in many campus offices All the computers are tied to the MCS digitized phototypeshysetting system Meeting registrations exhibits manageshyments and manuscripts tracking are also supported

The staff was reduced from seven to six during the year because a mid-year review indicated that revenues would not cover expenses Other economies were also made and rates were adjusted vith the result that net revenues for the year were abo t 25 over budget

During the coming year a plan and migration strategy based on findings of a comprehensive review for shifting service capability to a more modern network will be developed

Subscriptions and Pu blications Processing

The Subscription section is responsible for processing order fulfillment and single issue sales for non-member subscribers for The Journal ofN urition The American Journal of Clinical Nutntion Federation Proceedings and the Journal of Lipid Research totalling about 18000 subscribers The Dues Col lec tion section pro shycesses dues and optional subscriptions in response to membership correspondence for nine societies with a total membership of 20000 They include two FASEB Societies AIN and AAI as well as The Endocrine Socishyety the Biophysical Society the American Society of Neurochemistry and four smaller societies The Special Publications section handles reprint orders for Federashytion Proceedings The Journal of Nutrition The Journal of Lipid Research and Society for Neuroscience Abshy

-17shy

stracts as well as sales of the FASEB Directory of Members LSRO reports and reports for the National Library of Medicine In all cases dues subscriptions and publication sales procedures are computer-based to provide needed accounting records and on-line records for analysis

Print Shop and Composition

The number of jobs remains constant However as new Society members are added the number of impresshysions con tinues to increase In 1984 in excess of four million impressiors vve re printed This exceeds 17 million individual pages or pieces The Xerox 9500 Copier Duplicator also produced 23 million copies - an inshycrease of 300000 pieces The Print Shop also provides consulting services and acts as a broker for jobs requirshying outside services The Composition section produces camera -ready copy for newsletters directories journals and various other types of work Many users are now keyboarding copy in their offices and transmiting via the MCS-computer interface In 1985 composition for the Guide to Exhibits will also be typeset via this interface

The contract for typesetting the Journal of Nutrition has been continued on the Modular Composition Sysshytem A contract with the Journal of Lipid Research beginning with the January 1985 issue has been signed

Advertising Promotion and Other Functions

Among the various business services not delegated to other units of the Department are coordination of advertising for Federation Proceedings subscription fulshyfillment for all member subscriptions direct mail proshymotions of publications coordination of member insurshyance programs insu rance coverage required for FASEB and Society Offices promotion and distribution of mailshying lists rentals provision of Secretariat society management services for smaller biological societies and the administration of campus-wide services such as telephones parking and office space rental During the year the Federation Proceedings advertising was transferred to a Bal timore advertising agency The conshytract was modified so as to accomplish a much larger portion of the wor by Federation staff The transition has gone smomhly

Time has een devoted to analysis of long-term teleshyphone needs especially as they relate to expansion into the new addition and to the potentia l for integrated vOlcedata networks in the futu re

SCIENTIFIC MEETINGS The primary function of the Office of Scientific

Meetings (OSM) is to provide logistical management and support for the FASEB Annual Meeting and Exposishytion and the meetings of individual constituent societies In addition the Office supplies meeting management services on a contractual basis for organizations whose interests are consonant with those of the Federation

The 68th Annual Meeting organized by four societies convened in St Louis in April of this year The Annual Meeting of the American Society of Biological Chemists and The American Association of Immunologists met in St Louis in June Statistics for the two meetings are illustrated in Table 7

Other meetings administered by the Office of Scishyentific Meetings in 1984 included the Undersea Medical Society Meeting (276 in attendance) The American Physiological Society Fall Meeting (761) and the Socishyety for Neuroscience Annual Meeting (7922)

Two years ago in an effort to reduce expenditures and streamline operational procedures OSM elected to bring the management of the FASEB Annual Exposition in-house Results indicate a second year of favorable response by exhibitors and a significant savings to the Federation The continued growth of exhibit sales dictates the procurement of additional space for the exposition at future meeting sites

In 1985 in addition to coordinating the meetings of FASEB The American Physiological Society and the Society for Neuroscience the staff will continue work on the X World Congress of Cardiology scheduled for September 1986

Future plans for the office are to undertake the management of additional meetings of other biological and medical research societies Services offered are staffing of planning and programming committees negotiating contracts with hotels conventions centers and suppliers preparing the Call for Abstracts and pubshylicity announcements processing registration and housshying requests coordinating all physical arrangements such as facility and supp lier instructions food and beverage orders audiovisual equipment bussing meetshying room set ups and on-site administration

--

-18shy

Table 7 Statistics for the

1984 Annual Meetings of the Federation of American Societies for Experimental Biology

and American Society of Biological Chemists

The American Association of Immunologists

Scientific Registration

Programed Abstracts

Oral Paper Sessions

Poster Session Titles

Symposia Minisymposia and Specia l Sessions

Ancillary Functions

Exhibit Booths

Placement Service

Interviewers

Candidates

FASEB

7613

4724

134

160

112

229

509

235

452

ASBClAAI

6770

3779

0

164

83

51

358

256

452

TOTALS

14383

8503

134

324

195

280

867

491

904

PLACEMENT SERVICE The FASEB Placement Service is a valued component

of the Federation Candidates seeking employment and recruiting employers in the field of biological research administration and medicine are served through a central clearinghouse located in Bethesda and a careshyfully orchestrated interviewing facility operated in conshyjunction with scientific meetings

The FAS EB Placement Service conducted six on-site Placement Services in 1984 The statistics for these meetings are listed below

Employersl Interviews Candidates Interviewers Scheduled

68th FASEB Meeting (4 societies) 452 235 2045

ASBCAAI 452 256 2638 The Endocrine Society 66 28 124 Society for Neuroscience 409 194 1210 ASCB 148 107 634 ASA 516 93 1685

TOTAL 2043 913 8336

The Placement Service prepares the monthly Employ shyment Opportunities section for Federation Proceedings In 1984 advertisements for 185 Positions Available and 791 Positions Desired were published In 1984 313 requests were recei ved from employers for 2162 canshydidate applications In the 223 searches of Placement Service files 2106 applications were sent to employers A year-round Placement Service is conducted for The Endocrine Society The Employment Opportunities secshytions of Endocrinologv and The Journal of Clinical Endocrinologv and Metabolism are prepared by the Placement Service The Society for Neuroscience is provided an on-site Placement Service

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-17shy

stracts as well as sales of the FASEB Directory of Members LSRO reports and reports for the National Library of Medicine In all cases dues subscriptions and publication sales procedures are computer-based to provide needed accounting records and on-line records for analysis

Print Shop and Composition

The number of jobs remains constant However as new Society members are added the number of impresshysions con tinues to increase In 1984 in excess of four million impressiors vve re printed This exceeds 17 million individual pages or pieces The Xerox 9500 Copier Duplicator also produced 23 million copies - an inshycrease of 300000 pieces The Print Shop also provides consulting services and acts as a broker for jobs requirshying outside services The Composition section produces camera -ready copy for newsletters directories journals and various other types of work Many users are now keyboarding copy in their offices and transmiting via the MCS-computer interface In 1985 composition for the Guide to Exhibits will also be typeset via this interface

The contract for typesetting the Journal of Nutrition has been continued on the Modular Composition Sysshytem A contract with the Journal of Lipid Research beginning with the January 1985 issue has been signed

Advertising Promotion and Other Functions

Among the various business services not delegated to other units of the Department are coordination of advertising for Federation Proceedings subscription fulshyfillment for all member subscriptions direct mail proshymotions of publications coordination of member insurshyance programs insu rance coverage required for FASEB and Society Offices promotion and distribution of mailshying lists rentals provision of Secretariat society management services for smaller biological societies and the administration of campus-wide services such as telephones parking and office space rental During the year the Federation Proceedings advertising was transferred to a Bal timore advertising agency The conshytract was modified so as to accomplish a much larger portion of the wor by Federation staff The transition has gone smomhly

Time has een devoted to analysis of long-term teleshyphone needs especially as they relate to expansion into the new addition and to the potentia l for integrated vOlcedata networks in the futu re

SCIENTIFIC MEETINGS The primary function of the Office of Scientific

Meetings (OSM) is to provide logistical management and support for the FASEB Annual Meeting and Exposishytion and the meetings of individual constituent societies In addition the Office supplies meeting management services on a contractual basis for organizations whose interests are consonant with those of the Federation

The 68th Annual Meeting organized by four societies convened in St Louis in April of this year The Annual Meeting of the American Society of Biological Chemists and The American Association of Immunologists met in St Louis in June Statistics for the two meetings are illustrated in Table 7

Other meetings administered by the Office of Scishyentific Meetings in 1984 included the Undersea Medical Society Meeting (276 in attendance) The American Physiological Society Fall Meeting (761) and the Socishyety for Neuroscience Annual Meeting (7922)

Two years ago in an effort to reduce expenditures and streamline operational procedures OSM elected to bring the management of the FASEB Annual Exposition in-house Results indicate a second year of favorable response by exhibitors and a significant savings to the Federation The continued growth of exhibit sales dictates the procurement of additional space for the exposition at future meeting sites

In 1985 in addition to coordinating the meetings of FASEB The American Physiological Society and the Society for Neuroscience the staff will continue work on the X World Congress of Cardiology scheduled for September 1986

Future plans for the office are to undertake the management of additional meetings of other biological and medical research societies Services offered are staffing of planning and programming committees negotiating contracts with hotels conventions centers and suppliers preparing the Call for Abstracts and pubshylicity announcements processing registration and housshying requests coordinating all physical arrangements such as facility and supp lier instructions food and beverage orders audiovisual equipment bussing meetshying room set ups and on-site administration

--

-18shy

Table 7 Statistics for the

1984 Annual Meetings of the Federation of American Societies for Experimental Biology

and American Society of Biological Chemists

The American Association of Immunologists

Scientific Registration

Programed Abstracts

Oral Paper Sessions

Poster Session Titles

Symposia Minisymposia and Specia l Sessions

Ancillary Functions

Exhibit Booths

Placement Service

Interviewers

Candidates

FASEB

7613

4724

134

160

112

229

509

235

452

ASBClAAI

6770

3779

0

164

83

51

358

256

452

TOTALS

14383

8503

134

324

195

280

867

491

904

PLACEMENT SERVICE The FASEB Placement Service is a valued component

of the Federation Candidates seeking employment and recruiting employers in the field of biological research administration and medicine are served through a central clearinghouse located in Bethesda and a careshyfully orchestrated interviewing facility operated in conshyjunction with scientific meetings

The FAS EB Placement Service conducted six on-site Placement Services in 1984 The statistics for these meetings are listed below

Employersl Interviews Candidates Interviewers Scheduled

68th FASEB Meeting (4 societies) 452 235 2045

ASBCAAI 452 256 2638 The Endocrine Society 66 28 124 Society for Neuroscience 409 194 1210 ASCB 148 107 634 ASA 516 93 1685

TOTAL 2043 913 8336

The Placement Service prepares the monthly Employ shyment Opportunities section for Federation Proceedings In 1984 advertisements for 185 Positions Available and 791 Positions Desired were published In 1984 313 requests were recei ved from employers for 2162 canshydidate applications In the 223 searches of Placement Service files 2106 applications were sent to employers A year-round Placement Service is conducted for The Endocrine Society The Employment Opportunities secshytions of Endocrinologv and The Journal of Clinical Endocrinologv and Metabolism are prepared by the Placement Service The Society for Neuroscience is provided an on-site Placement Service

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

--

-18shy

Table 7 Statistics for the

1984 Annual Meetings of the Federation of American Societies for Experimental Biology

and American Society of Biological Chemists

The American Association of Immunologists

Scientific Registration

Programed Abstracts

Oral Paper Sessions

Poster Session Titles

Symposia Minisymposia and Specia l Sessions

Ancillary Functions

Exhibit Booths

Placement Service

Interviewers

Candidates

FASEB

7613

4724

134

160

112

229

509

235

452

ASBClAAI

6770

3779

0

164

83

51

358

256

452

TOTALS

14383

8503

134

324

195

280

867

491

904

PLACEMENT SERVICE The FASEB Placement Service is a valued component

of the Federation Candidates seeking employment and recruiting employers in the field of biological research administration and medicine are served through a central clearinghouse located in Bethesda and a careshyfully orchestrated interviewing facility operated in conshyjunction with scientific meetings

The FAS EB Placement Service conducted six on-site Placement Services in 1984 The statistics for these meetings are listed below

Employersl Interviews Candidates Interviewers Scheduled

68th FASEB Meeting (4 societies) 452 235 2045

ASBCAAI 452 256 2638 The Endocrine Society 66 28 124 Society for Neuroscience 409 194 1210 ASCB 148 107 634 ASA 516 93 1685

TOTAL 2043 913 8336

The Placement Service prepares the monthly Employ shyment Opportunities section for Federation Proceedings In 1984 advertisements for 185 Positions Available and 791 Positions Desired were published In 1984 313 requests were recei ved from employers for 2162 canshydidate applications In the 223 searches of Placement Service files 2106 applications were sent to employers A year-round Placement Service is conducted for The Endocrine Society The Employment Opportunities secshytions of Endocrinologv and The Journal of Clinical Endocrinologv and Metabolism are prepared by the Placement Service The Society for Neuroscience is provided an on-site Placement Service

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-19shy

PUBLICATIONS The Office of Publications is responsible for Federashy

tion Proceedings the Directory of Members the Proshygram and Guide to Exhibits for the Annual Meeting and a number of redactory services In 1984 these latter included the Journal of Lipid Research the Journal of Nutrition and some miscellaneous services inside and outside FASEB Abstract issues for the 1984 meeting totaled about 1000 pages

The American Society of Biological Chemists and The American Association of Immunologists met separately in June of 1984 For that meeting the Office published two May issues of Federation Proceedings totaling almost 800 pages of abstracts and indexes

The Directory of Members appeared in September 1984 for 1984-85 In it the members of The American Society for Cell Biology were entered in the main alphabet and appeared in the several indexes The total of over 27000 name entries made this the largest comshyplete Directory yet published

lin order to take every step possible to enhance Federation Proceedings a Subcommittee has been formed from members of the Publications Committee and the FP Editmial Board Their charge is to consider past surveys of Federation Proceedings and to examine again the means by which a joumal can be produced that is more widely satisfying to the 27000 members of the Federation and to outside subscribers

Table 8 FEDERATION PROCEEDINGS Vo~ 43 1984

Source of Material by Society

Number of Symposia Number Number Percentage or Minisymposia of Articles of Pages of Pages

American Physiological Society

New Orleans 82 3 13 70 San Diego 82 4 16 79 Chicago 83 10 37 194 Honolulu 83 1 7 29 372 31

American Society of Biological Chemists

ew Orleans 82 3 15 68 San Fra ncisco 83 3 13 64 Smiddot ouis 84 1 1 12 144 12

- Socse y lor Pharmacology and T erapeu tics

shy 82 4 26 122 1 9 38

12 56 261 C3 3 10 56 477 39

American Inst ue New Orleans 82 3 16 86 Chicago 83 1 4 19 105 9

American Associat ion a Imm ogss

Chicago 83 9 25 115 115 9

TOT L 1213 100

~During 1984 no papers or symposia ongina ing w ith the American Association of Pathologists were submitted

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-20shy

LIFE SCIENCES RESEARCH The Life Sciences Research Office (LSRO) continues

in its third decade as the FASEB office with primary responsibility for analysis and evaluation of scientific medical and public health issues Using Federation Society members as its major resource of expertise the LSRO resporlds to requests for evaluation studies and topical assessments from federal agencies and other organizations

Under authority delegated by the Federation Board representatives of the seven constituent Societies and the Federation Officers oversee LSRO activities and serve in an advisory capacity to the LSRO Director The Committee provides guidance in scientific and adminisshytrative matters recommends contractual endeavors and reviews scientific reports prepared in each study The Committee held meetings through the year and provided advice and approval for the activities of the office

Expert analyses and evaluations have been conducted by mechanisms which involve the unique position of LSRO within the Federation The LSRO staff has been

able to utilize expert consultants recruited from the membership of the constituent Societies as well as highly qualified experts drawn from other scientific and medical organizations Activities of 1984 are summarized and enumerated in Table 9

A number of projects approved by the LSRO Advisory Committee in previous years have been continued in 1984 These include efforts in progress with the Food and Drug Administration (FDA) and are concerned with

State-of-the-Art Analyses of Key Human Nutrition Problem Areas Studies completed this year include Analyses of Data on Iron Zinc and Folate Nutritional Status of the US Population and a collaborative project with FDA the National Cancer Institute Cornell University and The Chinese Academy of Medicine of the Peoples Republic of China The project effort inshyvolves a major survey of relationships among diet nutrishytion and cancer in the Peoples Republic of China Another ongoing project with FDA involves Use of Outside Expertise in Food and Cosmetic Safety Evalushyation and includes several topical assessment studies a) Establishment of a Scientific Steering Group on Food and Cosmetic Safety b) (Trans) Fatty Acids c) Neurotoxicity and Behavior Dysfunction d) Exshytrapolation of Carcinogenicity Data from Animals to Humans and e) Reexamination of the GRAS Status of Sulfiting Agents Other continuing projects include contracts with the National Aeronautics and Space Administration (NASA) National Cancer Institute (NCI)

Office of Naval Research (ONRl and Universities Associated for Research and Education in Pathology (UAREPl Two new contracts were approved by the LSRO Advisory Committee and include a project with NASA entitled Research Opportunities in the Bioshymedical Problem Areas of Space Flight The new conshytracts inclu de studies on human behavior and pershyformance as well as on red blood cell alterations for NASA A Review of HANES Data to Estimate the

Table 9

Summary of LSRO Activities in 1984

Activity Number of Items

A) Meetings of Review Groups and Oversight Pallels 9

B) Participants 69

C) Projects continued 11

D) Contracts initiated 2

E) Reports completed and approved 11

F) Reports distributed

i) To sponsors 400 ii) Single copy requests 650

G) Staff publications 3

H) Research proposals received for peer-review 98

I) Scientists utilized in proposal reviews 294

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-21shy

Prevalence of Vitamin A Deficiency and Toxicity in US Hardman supported funding a minimum of 6200 new Population Groups and Recommendations for HANES and competing NIH grants in fiscal 1985 This was in line III are being prepared for the Food and Drug Adminshy with the position taken by the ad hoc Group on Medical istration Research Funding of which the Federation and approxishy

mately 150 other organizations were members When Public Relations and Interagency Liaison Congress completed its work on fiscal 1985 approprishy

ations NIH had its first ever $5 billion budget Announcements of completed repor s and new studies The Federation also can look forward to increased FY were made in Federation Proceedings and Society pubshy 85 appropriations for the Alcohol Drug Abuse and lications Single copies of he LSRO reports were disshy Mental Health Administration for the National Science tributed widely and made available to members of the Foundatiorls Biological Behavioral and Social Sci shyscientific community LSRO s aff attended professional ences program and for the competitive research grants society meetings which relate 0 ongoing projects The program under the US Department of Agriculture In LSRO Director continued aCiivities of a liaison nature other areas the Public Affairs staff continued to with officials at the various Federal agencies and monitor legislative efforts to shape an acceptable NIH presented lectures under he sponsorship of the Chinese Reauthorization Bill developed alternatives to proposed Academy of Medic eo he Peoples Republic of China restrictions on use of animals in scientific research and The LS RO rov des an Important opportunity for the focused heavily on the emerging field of biotechnology scientific and ca community to contribute scienshy At the request of the Public Affairs Committee the tific kno edge and expertise to major issues in bio- Office established an ad hoc committee to both review logical and ed research and public health the FederaHons position on the care and use of animals

in research and to make recommendations to the Board for revisions The ad hoc group held a full days meeting at FASEB on June 8 1984 and produced a comprehenshy

B C AFFAIRS sive policy statement which the Board later approved The Board also approved suggested revisions in the

TeO flet) of Public Affairs assists the Public Affairs proposed policy statement on use of animals in laborashyComml tee in carrying OLlt its constitutional charge to tory research that had been issued for public comment ensure that members of the constituent Societies are by the United States Public Health Service mformed concerning national issues affecting biological At the further direction of the Board the Public and biomedical research and to ascertain and transmit Affairs Office arranged for FAS EB scientists to testify at the concerns of the members to those government and NIH-sponsored field hearings on the Public Health other public agencies requiring or requesting inforshy Service policy statement on laboratory research animals mation The Federation witnesses appeared at hearings in

For the FAS EB Office of Public Affairs 1984 was a Boston Kansas City and Seattle By years end the year of growth and increased activity and responsibility Administration still was at work developing the final Gar Kaganowich professional staff member of the US version of the policy which probably will be issued Senate Appropriations Committee was appointed as during 1985 The Office of Public Affairs also produced the new Director of the office in April 1984 A plan for FAS EB comment on an Administration statement of expansion of the office was approved by the Federation principles relating to the utilization and care of verteshyBoard in June 1984 As of December the office had five brate animals used in testing research and training In staff members and expected to add two others in the addition the Public Affairs staff was working with the new year The growth permitted the Federation to step US Office of Technology Assessment to bring the up its efforts to address the many and difficult issues Federations expertise to bear on an OTA study on

J facing the life sciences alternatives to the use of animals in research One of these issues was the funding of the National The Office of Public Affairs alerted Federation memshy

Institutes of Health and the availability of new and bers to Army and Air Force efforts to ban the use of competing research grants With the grants level lodged dogs and cats in Department of Defense-sponsored bioshyat 5000 for several years the Public Affairs Committee medical research programs At one point it became clear reaffirmed its previous position that the highest priority that the Army ban in particular was holding up millions on NIH appropriations should be given to funding the of dollars in research work involving animals The maximum number of new and competing research Federation wrote to Defense Secretary Caspar Weinshygrants In furtherance of this policy the Office of Public berger to protest the bans and the FASEB Board Affairs worked to bring the Federations views to the adopted a resolution urging that the prohibitions be attention of key members of Congress and their staffs rescinded After lengthy delays both military services One highlight of the effort was the appearance of dropped the bans At the same time the Board also Federation President Harold F Hardman before the agreed to a resolution calling for adoption and enforceshySenate Labor-HHS-Education Appropriations Subcomshy ment of federal criminal and civil penalties for acts of mittee In his testimony to the Subcommittee Dr interference with the use of animals in scientific

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-22shy

investigation The Board action was in response to the growing number of laboratory break ins and animal thefts

The Public Affairs Committee and the Office of Public Affairs became increasingly involved in the emerging public debate on biotechnology Recognizing the imshyportance of the new technology to the industrial comshypetitiveness of the United States the Board in November adopted a resolution strongly opposing a blanket proshyhibition of gene experiments- a prohibition which had been proposed by opponents of gene-transfer techshynology The Board-approved resoution endorsed a statement passed by the NIH recombinant DNA Adshyvisory Committee

As the year closed the Public Affairs staff was workshying to implement the Boards directive to establish a joint committee to explore with university administrators possible means to reduce indirect costs of research The staff also acted to implement Board policy to encourage support for open peer-reviewed competition for federal funds for research and research facilities The directive in the form of a Board resolution urged that research scientists reseurch institutions and public officials refrain from circumventing the peer review process to achieve their goals in this area

Communication with members of the constituent Societies is facilitated by the publication of the FASEB

Public Affairs Newsletter and the monthly Public Affairs Insert of Federation Proceedings In the ensuing reshyorganization of the Office the Newsletter has been redesigned its coverage has been expanded and new features such as a monthly column on research have been added The expansion of coverage was designed to provide the members with news of the various federal biological and biomedical research programs of interest to them

FASEBs public information function has its principle focus each year in the operation of the press room at the Annual Meeting The 1984 meeting in St Louis was attended by thirty-five journalists who provided nationshywide print and broadcast coverage of the scientific program presented at the Annual Meeting More than 100 lay language abstracts of presented research papers were made available to the press during the Annual Meeting

In addition to the Annual Meeting function the Office of Public Affairs provides lay language summaries of published research to the scientific media via the FASEB Feature Service which is issued 12 times annually The office also has been active in placing guests on pertinent television news and public affairs programs to provide a scientific viewpoint on public issues facing the biological and biomedical research community

Public Affairs Staff April 5 1985

-23shy

EDUCATION During the Fall 1983 meeting of the Board the Educashy

tion Committee was made a standing committee of the Federation The Committee working with a grant from the US Department of Education has continued the initiative to develop a strategy to increase the involveshyment of research scientists in implementation of inshynovative science education programs Members of the Education Committee Task Force on pre-college science education and secondary school science teachers from schools throughout the United States were invited to participate in a workshop the emerging discussions have served as the basis for a second report from the Education Committee The purpose of the report is to direct the Federation to a va luable and useful role in secondary school science education

Continuing Medical Education Credits

The Accreditation Council for Continuing Medical Education granted certification to the Federation to issue Category 1 Continuing Medical Education Credits for all of its meetings symposia and seminars The award of Continuing Medical Education Credits makes it possible for those physicians engaged in research or practicing clin ically to obtain the necessary continuing educational credit now increasingly being required by the states for recertification and licensing of physicians Throughout 1984 there were 111 awards of credits for five meetings that the Federation or one of the member Societies had sponsored The delegation of this reshysponsibility to the Federation carries with it the requireshyment for monitoring carefully the nature and type of programs provided for physicians seeking certification

Visiting Scientists for Minority Institutions

In 1981 the Visitin9 Scientists for Minority Institutions program was initiated The program funded by the National I nstitutes of General Medical Sciences Nationshyal Institutes of Health is part of the Minority Access to Research Careers program The objective of the program is to enhance the educational and research programs at minority institutions by increasing their communication and interaction with distinguished faculty in the bioshymedical sciences and thereby to increase the number of well -trained minorities in these fields To that end the program provides funds to allow visiting scientists of the Fede ation to spend up to five days on the campuses of minor ty ins itujons in the role of consultants lectu rers fe ree persons and laboratory inst uctors in areas of biolog - e agenda lor each Visit is dictated b the need 0 he rsques i 9 minority ins itution

Over 500 sce ists of the Federation are listed on the roster of ava ilable scientls s that is dlslribu ed yea rly to

193 minority institutions in the United States In the three years that the Federation has administered the program it has sponsored over 165 visits The program has been well received by the participating scientists and has been especially praised by the minority schools receiving visits from the Federations scientists

FASEB SUMMER RESEARCH CONFERENCES

The third series of FASEB Summer Research Conshyferences was held at the Vermont Academy Saxtons River Vermont from June 10 to August 18 1984 This year the series was expanded to include ten confershyences an increase of two over the number held in each of the first and second yea rs of the series This sumshymers series was the most successful There were proportionately more applicants more attendees more countries represented more foreign participation and more outside financial support

The average number of attendees per conference was 129 this year as compared to 112 and 107 in 1982 and 1983 The majority of these participants had advanced degrees 65 had the Ph D 12 were MDs and another 5 indicated attaining both a Ph D and M D This year the foreign scientists (161 or 12 of the total) in attendance were from 18 countries

The conferences received greater support from the government both financially and in the number of participants than in the other years The governmental financial support for the conferences was more than double the amount provided in 1983 (There also was an increase in the amount provided and in the number of contributing private organizations) There was a slight increase in attendance by government-affiliated scishyentists (17 of total attendees) However as in previous years academicians comprised the largest group of the participants (67 of total attendees)

The evaluations from the conference participants were as favorable as in the last two years and the enthusiasm for more conferences is high

The FASEB Summer Research Conferences Advisory Committee which was made a standing committee by the Board in the Fa ll of 1983 approved the expansion of the Conference series to a western site to include four more conferences A site in Copper Mountain Colorado has been found wh ich has a great potential It is approxishymately nine mi les from Vail a weill-known recreational area and is within an hour-and-a-half drive from the Denver Airport The Committee approved the schedule for the 1985 and 1986 conferences and listed a series of tentative topics for 1987

-24shy

Table 10 Schedule of FASEB Summer Research Conferences

1985 - vERMONT 1985 - VERMONT 1985 - COLORADO

NEUROTRANSMITTERS FOLIC ACID VITAMIN B-12 AND TRICHOTHECENE MYCOTOXICOSIS

Bruce Howard Chairperson ONE-CARBON METABOLISM Paul Newberne Chairperson MICRONUTRIENTS TRACE METALS Conrad Wagner Chairperson CELLULAR AND MOLECULAR BIOLOGY

Edward Harris Chairperson AUTOIMMUNITY Darwin Berg Chairperson SMOOTH MUSCLE Noel Rose Chairperson (OPEN)

Julius Allen Chairperson MICRONUTRIENTS THE RETINOIDS RESPONSE TO REDUCED GRAVITY

LYMPHOCYTES amp ANTIBODIES James A Olson Chairperson Thora Halstead Chairperson Henry Wortis Chairperson DRUG TRANSPORT MECHANISMS

SOMATIC CELL GENETICS I David Goldman Chairperson Thomas Caskey Chairperson SOMATIC CELL GENETICS

DEVELOPM ENTAL NEU ROBIOLOGY Phillip Collino Chairperson Nicholas Spitzer Chairperson (OPEN)

GASTROINTESTINAL DIFFER ENTIATION LYMPHOCYTES AND ANTIBODIES Lenard M Lichtenberger Chairperson Cox Terhorst Chairperson

MECHANISMS OF CARCINOGENESIS LUNG FUNCTION M ECHANISMS Charles Sherr Chairperson Norman Gillis Chairperson

PROTEIN KINASES IMMUNOPHARMACOLOGY James Niedel Chairperson Anthony Allison Chairperson

BIOLOGY amp CHEMISTRY OF VISION RECEPTORS Paul A Hargrave Chairperson Henry Metzger Chalrperso rJ

AWARD PROGRAMS Wellcome Visiting Professorships in Hillard Department of Pharmacology Medical College the Basic Medical Sciences of Wisconsin

In cooperation with The Burroughs Wellcome Fund 3M Life Sciences Award FASEB administers annually the Wellcome Visiting

Professorships in the Basic Medical Sciences sponshyEach year the Federation administers the 3M Lifesored and supported by The Fund The Professorships

Sciences Award established by 3M of St Paul Minshyare awarded to accredited degree-granting medical nesota to honor researchers whose work has made a schools universities and other scientific institutions in significant contribution to the health and welfare ofthe United States The purpose is to stimulate interest man indo In 1984 Dr Leroy E Hood Professor Biology in the basic sciences and to enhance communication Division California Institute of Technology received the with scientists in the disciplines represented by the award of $10000 for his work on the genetic control of FASEB constituency In 1984 twenty-one awards were antibody production made for the 1984-85 academic year - in Physioiogy

The award was presented at the FASEB AnnualBiochemistry Pharmacology Pathology Nutrition Meeting in St Louis Immunology and Cell Biology

Each Visiting Professor spends two to five days at the host institution engaged in teaching and discussion with students and faculty and delivers a Wellcome Lecture on a subject related to hisher discipline

The Burroughs Wellcome Fund provides an award of $1500 to the host institution for presentation to the Visitshying Professor and $350 to reimburse the institution for attendant expenses The Professor is also reimbursed for hisher travel and for an accompanying spouse Meals lodging etc are provided by the institution

Gregory Pincus Memorial Award

In 1974 Mrs Gregory Pincus established a Memorial Fund in the Federation in honor of her late husband who was a distinguished reproductive physiologist and coshydisooverer with Dr M C Chang of the oral contracepshytive Each yea r the P resident of FAS E B desig nates a student to receive the income from the Fund to provide partial expenses for travel to the FASEB Annual Meetshy Dr Harold F Hardman presenting the 3M Award ing In 1984 the award was received by Miss Cecilia J to the 1984 receipient Dr Leroy E Hood

S fANDING COMM ITTEES

EDUCATION COMMITTEE

JA Spitzer Chairman EC Theil DW Scott Wj Wadde ll J W Grisham B F Trump RS Young JG Coniglio RW Krauss

EXECUTIVE COMMITTEE

J W Grisham Chairman A P Fishman Charles Yanofsky WK Riker A E Harper B R Bloom HF Hardman RW Krauss DG Scarpelli

J Osborn

O E Reynolds CC Hancock KA Croker KM Endicott Max Milner RG A llison Henry Mdtzger EG Sta1daert

EXECUTIVE OFFICERS A DVISORY COMMITTEE RW Krauss Chairman

OE Reynod~ RG All ison CC HncoG Henry Metzger KA Croker RS Young K M Endicott JW Grisham Max Milner H F Hardman

FEDERAL APPOINTMENTS NOMINATING COMMITTEE

J W Grisham Chairman H F Harciman RW Krauss A E Harper M J Osborn

FINANCE COMMITTEE

DG Scarpelli Chairman A P Fishman JW Gristlam Charles Yanofsky J R Rice O N Miller H F Hrdman

LIFE SCIENCES RESEARCH OFFICE ADVISORY COMMITTEE

M J Fregly Chairman Ws Jakoby JD Jamieson W T Beaver MJ Knrnovsky Herschol Sidransky JW Grisham SB Tove A E Harper Robert Edelman RW Krauss

H F Hardman

MEETINGS COMMITTEE

W L Dewey Chairman M J Jackson FL Owens D M Carlson Jw Grisham CG Becker R W Krauss L M D(Luca H r Hardman

DEPARTMENT HEADS

Margaret C Averi Admmistrative Assistant

PROGRAM COMMITTEE

W L Dewey Chairman OE Reynolds Henry Metzger CC Hancock RS Young KA Croker J W Grisham KM Endicott RW Krauss Max Mi lner H F Hardman RG A llison

PUBLIC AFFAIRS COMMITTEE

R B Hili Chairman J T Shepherd E L PaLlier PO Boyer HR Hirsch HG Mandel Jw Grisham Victor Herbert H F Hardman FW Fitch M J Osborn RS Young EH Wood WL West RW Krauss Sidney Karz

PUBLIC INFORMATION COMMITTEE

Victor Herbert Chairman BM Altura J L Stickney JM McCord HF Hardman Mary Vore Jw Grisham RS Cotrall RW Krauss LM Uchtenslein

PUBLICATIONS COMMITTEE

FS Vogel Chairman J S Cook Henry Iltamin Finn Wold HF Hardman J J McPhillips JW Grisham RM Forbes RW Krauss FP Inman JR Mcintosh

EDITORIAL BOARD FEDERATION PROCEEDINGS

LR Haciltler Chairman ML Entmiln Emanuel Ru bin AN Schechter DM Marcus RE Stitzel

K F Heumann Executive Editor

RESEA RCH CONFERENCES ADVISORY COMMITTEE

I H Pastan Chairman MJ Jackson MS Smith MA Mehlman J M FUjimoto AS Rabson

Kenneth D FiSher Diffie or Uie SCiences Research Office Ger Goodenough Director Office of SCientific Meetings Austin H Henry BUSiness Manager Karl F Heumann Director Office of Publica tions Gar Kaganowich Director Office of Public Affairs Derek A Knox Personnel Officer

MRS Fox KA Smllh LA Chasin JW Grisham RW Krauss

middotTerm ended June ~ 1984

Member Societies

TImiddot1E Arv1ERICAN PHYSI OI_OG ICAL SOCIETY AMERICAN SOC1El Y OF BIOLOGICAL CHEMIS TS AMERICAI SOCIETY FOR PH f- RMACOLOGY AND

EXPEAIMffllAL THfRAPWTICS IMERICAN ASSOCIATION OF PATHOLOGISTS AMERICAN INST ITUTI OF NUTRITIO THE AMERICAN ASSOCIATI ON OF I IJIIJ OLOGISTS THE AMERICAN SOCIETY FOR CELL BIOLOGY

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

9650 ROCKVILLE PIKE BETHESDA MARYLAND 20814

TE~EPHONE 301 middot 530 middot 7000middot CABLE ADDRESS FASEB WASHINGTON 0 C

ROBERT W KRAUSS

EHClftire Director

LI THO ~y rASEB

• Presidents Messages

-24shy

Table 10 Schedule of FASEB Summer Research Conferences

1985 - vERMONT 1985 - VERMONT 1985 - COLORADO

NEUROTRANSMITTERS FOLIC ACID VITAMIN B-12 AND TRICHOTHECENE MYCOTOXICOSIS

Bruce Howard Chairperson ONE-CARBON METABOLISM Paul Newberne Chairperson MICRONUTRIENTS TRACE METALS Conrad Wagner Chairperson CELLULAR AND MOLECULAR BIOLOGY

Edward Harris Chairperson AUTOIMMUNITY Darwin Berg Chairperson SMOOTH MUSCLE Noel Rose Chairperson (OPEN)

Julius Allen Chairperson MICRONUTRIENTS THE RETINOIDS RESPONSE TO REDUCED GRAVITY

LYMPHOCYTES amp ANTIBODIES James A Olson Chairperson Thora Halstead Chairperson Henry Wortis Chairperson DRUG TRANSPORT MECHANISMS

SOMATIC CELL GENETICS I David Goldman Chairperson Thomas Caskey Chairperson SOMATIC CELL GENETICS

DEVELOPM ENTAL NEU ROBIOLOGY Phillip Collino Chairperson Nicholas Spitzer Chairperson (OPEN)

GASTROINTESTINAL DIFFER ENTIATION LYMPHOCYTES AND ANTIBODIES Lenard M Lichtenberger Chairperson Cox Terhorst Chairperson

MECHANISMS OF CARCINOGENESIS LUNG FUNCTION M ECHANISMS Charles Sherr Chairperson Norman Gillis Chairperson

PROTEIN KINASES IMMUNOPHARMACOLOGY James Niedel Chairperson Anthony Allison Chairperson

BIOLOGY amp CHEMISTRY OF VISION RECEPTORS Paul A Hargrave Chairperson Henry Metzger Chalrperso rJ

AWARD PROGRAMS Wellcome Visiting Professorships in Hillard Department of Pharmacology Medical College the Basic Medical Sciences of Wisconsin

In cooperation with The Burroughs Wellcome Fund 3M Life Sciences Award FASEB administers annually the Wellcome Visiting

Professorships in the Basic Medical Sciences sponshyEach year the Federation administers the 3M Lifesored and supported by The Fund The Professorships

Sciences Award established by 3M of St Paul Minshyare awarded to accredited degree-granting medical nesota to honor researchers whose work has made a schools universities and other scientific institutions in significant contribution to the health and welfare ofthe United States The purpose is to stimulate interest man indo In 1984 Dr Leroy E Hood Professor Biology in the basic sciences and to enhance communication Division California Institute of Technology received the with scientists in the disciplines represented by the award of $10000 for his work on the genetic control of FASEB constituency In 1984 twenty-one awards were antibody production made for the 1984-85 academic year - in Physioiogy

The award was presented at the FASEB AnnualBiochemistry Pharmacology Pathology Nutrition Meeting in St Louis Immunology and Cell Biology

Each Visiting Professor spends two to five days at the host institution engaged in teaching and discussion with students and faculty and delivers a Wellcome Lecture on a subject related to hisher discipline

The Burroughs Wellcome Fund provides an award of $1500 to the host institution for presentation to the Visitshying Professor and $350 to reimburse the institution for attendant expenses The Professor is also reimbursed for hisher travel and for an accompanying spouse Meals lodging etc are provided by the institution

Gregory Pincus Memorial Award

In 1974 Mrs Gregory Pincus established a Memorial Fund in the Federation in honor of her late husband who was a distinguished reproductive physiologist and coshydisooverer with Dr M C Chang of the oral contracepshytive Each yea r the P resident of FAS E B desig nates a student to receive the income from the Fund to provide partial expenses for travel to the FASEB Annual Meetshy Dr Harold F Hardman presenting the 3M Award ing In 1984 the award was received by Miss Cecilia J to the 1984 receipient Dr Leroy E Hood

S fANDING COMM ITTEES

EDUCATION COMMITTEE

JA Spitzer Chairman EC Theil DW Scott Wj Wadde ll J W Grisham B F Trump RS Young JG Coniglio RW Krauss

EXECUTIVE COMMITTEE

J W Grisham Chairman A P Fishman Charles Yanofsky WK Riker A E Harper B R Bloom HF Hardman RW Krauss DG Scarpelli

J Osborn

O E Reynolds CC Hancock KA Croker KM Endicott Max Milner RG A llison Henry Mdtzger EG Sta1daert

EXECUTIVE OFFICERS A DVISORY COMMITTEE RW Krauss Chairman

OE Reynod~ RG All ison CC HncoG Henry Metzger KA Croker RS Young K M Endicott JW Grisham Max Milner H F Hardman

FEDERAL APPOINTMENTS NOMINATING COMMITTEE

J W Grisham Chairman H F Harciman RW Krauss A E Harper M J Osborn

FINANCE COMMITTEE

DG Scarpelli Chairman A P Fishman JW Gristlam Charles Yanofsky J R Rice O N Miller H F Hrdman

LIFE SCIENCES RESEARCH OFFICE ADVISORY COMMITTEE

M J Fregly Chairman Ws Jakoby JD Jamieson W T Beaver MJ Knrnovsky Herschol Sidransky JW Grisham SB Tove A E Harper Robert Edelman RW Krauss

H F Hardman

MEETINGS COMMITTEE

W L Dewey Chairman M J Jackson FL Owens D M Carlson Jw Grisham CG Becker R W Krauss L M D(Luca H r Hardman

DEPARTMENT HEADS

Margaret C Averi Admmistrative Assistant

PROGRAM COMMITTEE

W L Dewey Chairman OE Reynolds Henry Metzger CC Hancock RS Young KA Croker J W Grisham KM Endicott RW Krauss Max Mi lner H F Hardman RG A llison

PUBLIC AFFAIRS COMMITTEE

R B Hili Chairman J T Shepherd E L PaLlier PO Boyer HR Hirsch HG Mandel Jw Grisham Victor Herbert H F Hardman FW Fitch M J Osborn RS Young EH Wood WL West RW Krauss Sidney Karz

PUBLIC INFORMATION COMMITTEE

Victor Herbert Chairman BM Altura J L Stickney JM McCord HF Hardman Mary Vore Jw Grisham RS Cotrall RW Krauss LM Uchtenslein

PUBLICATIONS COMMITTEE

FS Vogel Chairman J S Cook Henry Iltamin Finn Wold HF Hardman J J McPhillips JW Grisham RM Forbes RW Krauss FP Inman JR Mcintosh

EDITORIAL BOARD FEDERATION PROCEEDINGS

LR Haciltler Chairman ML Entmiln Emanuel Ru bin AN Schechter DM Marcus RE Stitzel

K F Heumann Executive Editor

RESEA RCH CONFERENCES ADVISORY COMMITTEE

I H Pastan Chairman MJ Jackson MS Smith MA Mehlman J M FUjimoto AS Rabson

Kenneth D FiSher Diffie or Uie SCiences Research Office Ger Goodenough Director Office of SCientific Meetings Austin H Henry BUSiness Manager Karl F Heumann Director Office of Publica tions Gar Kaganowich Director Office of Public Affairs Derek A Knox Personnel Officer

MRS Fox KA Smllh LA Chasin JW Grisham RW Krauss

middotTerm ended June ~ 1984

Member Societies

TImiddot1E Arv1ERICAN PHYSI OI_OG ICAL SOCIETY AMERICAN SOC1El Y OF BIOLOGICAL CHEMIS TS AMERICAI SOCIETY FOR PH f- RMACOLOGY AND

EXPEAIMffllAL THfRAPWTICS IMERICAN ASSOCIATION OF PATHOLOGISTS AMERICAN INST ITUTI OF NUTRITIO THE AMERICAN ASSOCIATI ON OF I IJIIJ OLOGISTS THE AMERICAN SOCIETY FOR CELL BIOLOGY

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

9650 ROCKVILLE PIKE BETHESDA MARYLAND 20814

TE~EPHONE 301 middot 530 middot 7000middot CABLE ADDRESS FASEB WASHINGTON 0 C

ROBERT W KRAUSS

EHClftire Director

LI THO ~y rASEB

• Presidents Messages

S fANDING COMM ITTEES

EDUCATION COMMITTEE

JA Spitzer Chairman EC Theil DW Scott Wj Wadde ll J W Grisham B F Trump RS Young JG Coniglio RW Krauss

EXECUTIVE COMMITTEE

J W Grisham Chairman A P Fishman Charles Yanofsky WK Riker A E Harper B R Bloom HF Hardman RW Krauss DG Scarpelli

J Osborn

O E Reynolds CC Hancock KA Croker KM Endicott Max Milner RG A llison Henry Mdtzger EG Sta1daert

EXECUTIVE OFFICERS A DVISORY COMMITTEE RW Krauss Chairman

OE Reynod~ RG All ison CC HncoG Henry Metzger KA Croker RS Young K M Endicott JW Grisham Max Milner H F Hardman

FEDERAL APPOINTMENTS NOMINATING COMMITTEE

J W Grisham Chairman H F Harciman RW Krauss A E Harper M J Osborn

FINANCE COMMITTEE

DG Scarpelli Chairman A P Fishman JW Gristlam Charles Yanofsky J R Rice O N Miller H F Hrdman

LIFE SCIENCES RESEARCH OFFICE ADVISORY COMMITTEE

M J Fregly Chairman Ws Jakoby JD Jamieson W T Beaver MJ Knrnovsky Herschol Sidransky JW Grisham SB Tove A E Harper Robert Edelman RW Krauss

H F Hardman

MEETINGS COMMITTEE

W L Dewey Chairman M J Jackson FL Owens D M Carlson Jw Grisham CG Becker R W Krauss L M D(Luca H r Hardman

DEPARTMENT HEADS

Margaret C Averi Admmistrative Assistant

PROGRAM COMMITTEE

W L Dewey Chairman OE Reynolds Henry Metzger CC Hancock RS Young KA Croker J W Grisham KM Endicott RW Krauss Max Mi lner H F Hardman RG A llison

PUBLIC AFFAIRS COMMITTEE

R B Hili Chairman J T Shepherd E L PaLlier PO Boyer HR Hirsch HG Mandel Jw Grisham Victor Herbert H F Hardman FW Fitch M J Osborn RS Young EH Wood WL West RW Krauss Sidney Karz

PUBLIC INFORMATION COMMITTEE

Victor Herbert Chairman BM Altura J L Stickney JM McCord HF Hardman Mary Vore Jw Grisham RS Cotrall RW Krauss LM Uchtenslein

PUBLICATIONS COMMITTEE

FS Vogel Chairman J S Cook Henry Iltamin Finn Wold HF Hardman J J McPhillips JW Grisham RM Forbes RW Krauss FP Inman JR Mcintosh

EDITORIAL BOARD FEDERATION PROCEEDINGS

LR Haciltler Chairman ML Entmiln Emanuel Ru bin AN Schechter DM Marcus RE Stitzel

K F Heumann Executive Editor

RESEA RCH CONFERENCES ADVISORY COMMITTEE

I H Pastan Chairman MJ Jackson MS Smith MA Mehlman J M FUjimoto AS Rabson

Kenneth D FiSher Diffie or Uie SCiences Research Office Ger Goodenough Director Office of SCientific Meetings Austin H Henry BUSiness Manager Karl F Heumann Director Office of Publica tions Gar Kaganowich Director Office of Public Affairs Derek A Knox Personnel Officer

MRS Fox KA Smllh LA Chasin JW Grisham RW Krauss

middotTerm ended June ~ 1984

Member Societies

TImiddot1E Arv1ERICAN PHYSI OI_OG ICAL SOCIETY AMERICAN SOC1El Y OF BIOLOGICAL CHEMIS TS AMERICAI SOCIETY FOR PH f- RMACOLOGY AND

EXPEAIMffllAL THfRAPWTICS IMERICAN ASSOCIATION OF PATHOLOGISTS AMERICAN INST ITUTI OF NUTRITIO THE AMERICAN ASSOCIATI ON OF I IJIIJ OLOGISTS THE AMERICAN SOCIETY FOR CELL BIOLOGY

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

9650 ROCKVILLE PIKE BETHESDA MARYLAND 20814

TE~EPHONE 301 middot 530 middot 7000middot CABLE ADDRESS FASEB WASHINGTON 0 C

ROBERT W KRAUSS

EHClftire Director

LI THO ~y rASEB

• Presidents Messages

Member Societies

TImiddot1E Arv1ERICAN PHYSI OI_OG ICAL SOCIETY AMERICAN SOC1El Y OF BIOLOGICAL CHEMIS TS AMERICAI SOCIETY FOR PH f- RMACOLOGY AND

EXPEAIMffllAL THfRAPWTICS IMERICAN ASSOCIATION OF PATHOLOGISTS AMERICAN INST ITUTI OF NUTRITIO THE AMERICAN ASSOCIATI ON OF I IJIIJ OLOGISTS THE AMERICAN SOCIETY FOR CELL BIOLOGY

FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY

9650 ROCKVILLE PIKE BETHESDA MARYLAND 20814

TE~EPHONE 301 middot 530 middot 7000middot CABLE ADDRESS FASEB WASHINGTON 0 C

ROBERT W KRAUSS

EHClftire Director

LI THO ~y rASEB

• Presidents Messages