competitive position in the marketplace for hiring and retaining staff.

Related Entities

  • There are many financial transactions exchanged between the member organizations of the National Academies. The NRC serves as the clearinghouse for these transactions. However, it is important to note that only the financial activity and results of the NAS, NRC, and IOM are included in these financial statements.

  • The financial activity and results of the National Academy of Engineering, the National Academy of Engineering Fund, and the National Academies Corporation (Beckman Center) are audited and reported separately. Financial information for the NAE and the NAEF is available on request from the NAE Finance Office; information for the Beckman Center is available from the NAS Controller’s Office.

Overall Financial Condition

The results of operations, per the NAS Statement of Activities, are summarized as follows:




Total Revenues

$ 285.8

$ 339.0

Total Expenses



Change in Net Assets

$ 31.4

$ 76.8

Each year, the overall financial condition of the NAS can be reviewed by taking into account the increase or decrease in the net assets of the organization. During 2003 and 2004, the NAS has been able to increase its net assets, due in large part to the favorable results from the Endowment investments and from generous gifts from donors.


The NAS and NRC continue to be in sound financial condition. The NRC program has been stable and indirect expenses are under control. With regard to the NAS, the balance sheet is strong, the endowment investment return of 14% has outperformed the benchmarks, there is a substantial balance in the NAS reserve, and the capital campaign was successful by all measures. As has been the case for a number of years, our internal and external auditing programs continue to disclose no material weaknesses.

Based on the foregoing, I conclude that NAS continues to have the financial resources, discipline, and understanding of its operating components to responsibly respond to the many opportunities and challenges presented by an ever-changing external environment.

Ronald L. Graham


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