endowment fund.

The marine biology and oceanographic research facility paid for itself in 1994 following two consecutive years of drawing on the fund.

President Dr. James Galloway said: "In 1992, the BBSR had a deficit, even after distributions from the Endowment Fund of about $220,000.'' The Endowment Fund is designed to provide capital for the future long term security of BBSR's science programmes.

By 1993, there was no deficit, but distributions from the endowment fund totaled $330,000.

Dr. Galloway said: "Clearly, more effort was needed to not only eliminate the drain on the Endowment but to also keep operations in line with resources.

"Thus it gives me great pleasure to report that in 1994, BBSR had a slight surplus ($5,000), and no distributions from the Endowment Fund except for the standard five percent (about $80,000).

"In essence, BBSR paid for itself in 1994, with no extraordinary help from the Endowment Fund.'' Chief financial officer, Mr. Martin Pollak added: "The Corporation's 1994 financial results show a surplus on current unrestricted activities without support from the Endowment for the first time since 1989.

"This has been achieved largely through higher fees negotiated with Federal and non-Federal agencies on existing programmes and from fees earned on new science programmes from Federal agencies.

"Current unrestricted revenues increased by 22 percent in 1994 to $2,479,000 while current unrestricted expenses have increased by 15 percent to $2,459,000, resulting in an excess of revenues over expenses of $20,000. After Endowment Fund allocations of $59,000 and the cost of meeting obligations under the Corporation's term loan, a net surplus of $5,000 was added to Current unrestricted fund balances at December 31.'' Sponsored research expenditures increased by eight percent in 1994 to $3,741,000 and a balanced cash flow for 1994 resulted in from the timely receipt of the funding for the research programmes.

The Bermuda Endowment Campaign is moving toward its target of $3 million, with new gifts of $592,000 received during 1994, increasing the fund by 25 percent to $2,186,000.

Mr. Pollak said: "In spite of a negative total return on the endowment in 1994, the overall fundraising initiatives are now improving the financial base of the corporation.

"The overall net achievement (cash and pledges) since the endowment campaign was initiated three years ago has been $3,546,000 and our fund raising expenses amount to 19 percent of that net achievement.

"Over this three year period, $1,239,000 supported operations, $1,063,000 has been reinvested in the endowment and $1,244,000 remains a year end pledge.'' The local effort will soon begin winding down as the $3 million target approaches. The Bio Station will then look overseas to add to that figure with a campaign in North America to at least match, but probably exceed, the funds raised here.

The Bio Station had control over total assets of $8.8 million to December 31, after a year in which operational revenues totaled $2,479,252 and expenses totaled $2,458,878.

Founded in 1903, and incorporated in the state of New York as a US not-for-profit organisation in 1926, BBSR charges fees for the use of its scientific, marine and housing facilities at Ferry Reach St. George's.

It accomplishes its mission through such fees, together with gifts, grants and contracts from government and private donors.

The BBSR mission is "to conduct research of the highest quality from the special perspective of a mid-ocean island, to educate future scientists, and to provide well equipped facilities and technical staff support for visiting scientists, faculty and students from around the world''.