During the year, we added cautiously to administrative staff and created a small amount of additional office space. A space shortage remains a difficult and continuing problem at the Laboratory. The Grants Department, bursting at the seams, was given an office that became available in Wawepex. It was decided to move the Purchasing Department to the new Wooodbury Campus this summer, freeing the top floor of the Nichols Building. A beginning was made on the long-delayed project to fully renovate Nichols and to create there a badly needed conference room for Administration and for the Tech Transfer Department. Progress was made in rationalizing pay scales in the Facilities Department and in other areas while we have not been fully competitive with other Long Island businesses.

Perhpas most important, the Board of Trustees approved my recommendation for the planned succession in administrative leadership outlined in last year's Annual Report. Dill Ayres, at the Laboratory since 1998 as Associate Administrative Director, was appointed to lead the Administration with the new title of Chief Operating Officer. We have great confidence in Dill and are pleased to have such a talented and younger leadership in this important position. For the next year or so, I will continue at the Laboratory in the role of Chief Financial Officer and be available to help with other matters as needed.

Meanwhile, we are pleased to report that 2000 was another good year financially for the Laboratory. A strong financial position was maintained, backed up by a budget that was balanced, after allowing foor depreciation, for the twelfth consecutive year. Revenues increased to a new high level of just over $66 million. There was an operating excess of $297,000 that will be added to our reserves for start-up expenses at the Genomic Research Center ad for other future research programs. Overall, the financial results were more than $850,000 better than the original budget for the year. There was positive cash flow from operations of approximately $4.3 million, which as in past years was available to fund capital expenditures, for renewal of capital plant and for the purchase of ever more expensive scientific equipment. The success of our scientists in obtaining federal and other grants was again key to the good results for the year. Other positives were the continued good attendance at the Meetings and Courses Program, a surplus at the DNA Learning Center despite the dislocations resulting from the BioMedia Addition expansion, and good years for Banbury Center and the CSHL Press, which published the eagerly awaited third edition of its all-time best-selling manual, Molecular Cloning. The Watson School, completing its second year and benefiting from its growing endowment, succeeded in balancing its revenues and expenses.