Report of the Treasurer
for the Year ending June 30, 2001

General Statement
In Fiscal Year 2001 Sigma Xi's net assets decreased from $21,914,150 to $19,697,800, a decline of 10.11% from FY2000. Total revenues for fiscal year 2001 were $7.723,500 a decrease over the previous fiscal year of $2,286,000 or 22.84%. This was due primarily to the decrease in total return on investments, $1,308,100 in FY2000 to a loss of $3,613,500 in FY2001, reflecting continued market decline over the past year. Dues and fees decreased as membership declined from 74,600 to 74,300. The membership numbers include 2,800 new and reactivated members added by the Society in FY2001. Student membership decreased from 6,200 to 5,600 and emeritus membership increased from 15,900 to 16,800. Both of these latter groups pay dues at a reduced rate.

Operating expenses for fiscal year 2001 were $6,091,800, an increase from the previous fiscal year of $600,000 or 8.96%. Categories of increased expense included Membership, qualifications and annual meeting; Grants-in-Aid of Research; Grant Funded Programs; and Management and General. Expense categories that showed a decrease were American Scientist; Development, communications and Center programs; Forum; Media Resource Service; Other Programs; and Capital Campaign.

Perspective
Sigma Xi's "Bad News-Good News" experience of the past several years was reversed in FY2001. In contrast with the strong investment performance of recent years, the weak equities markets of 2000-2001 led to a decline in the Society's net assets for the first time in recent history*. However, the continuing decline in membership slowed significantly, from annual losses of 2,500-3000 members since the mid 1980's to only 300 in FY2001. In the long term, the health of the Society will depend far more on membership stability than on year-to-year variations in investment performance. Investment performance can be expected to return to historical averages over time, but without members, Sigma Xi's reason for existence disappears!

* Note, however, that under Sigma Xi's former accounting procedures, which did not include unrealized capital gains in the value of the portfolio, the net assets actually increased (See Note 3 to the financial statements).

• Statements of Cash Flows
• Statements of Financial Position
• Statements of Activities and Changes in Net Assets
• Statement of Operations