As DBG manages the Gardens for the city and county of Denver, all capital improvements to the Gardens are expensed, not capitalized, leading to the decrease in DBG’s operations. Of the $27 million in total assets, 96 percent was in cash, receivables and investments. Total combined liabilities were $3.6 million at the end of the year – a $622,000 increase over 2008, resulting from construction costs.

DBG’s combined revenues, gains and support in 2009 was $21.9 million, an increase of $10 million. Major changes in revenues were as follows: • Contributions in 2009 were $1.6 million lower than 2008. This was due to the large amount of cash and pledges for the Flourish Capital Campaign that were recorded in 2008.

• Investment income increased by $8.9 million due to market recovery between 2008 and 2009. • Funding from the city and county of Denver increased by $2.6 million as a result of the Better Denver bond proceeds for capital improvement projects.

Total program services expenditures (which represent core programs in the areas of horticulture, research, education and Denver Botanic Gardens at Chatfi eld), as well as property improvements not capitalized, were approximately $19 million in 2009 – an increase of $6.3 million over 2008, due to non-recurring capital improvements. Total supporting expenditures increased $194,000, which is in line with the growth of the organization.

DBGE’s investments were stated at their fair market value. The investment portfolio is well-diversified to limit the endowment’s investment risk. The Gardens’ board of trustees establishes the organization’s investment policy. Investment returns recovered strongly from the 2008 market meltdown. In 2009, the DBGE portfolio was up 25.6 percent and has also performed well over the long term. Since its inception in July 1992, the portfolio has earned a compound annual growth rate of 7.9 percent. The ending market value on Dec. 31, 2009, was $15.9 million, compared to $13.1 million the year before.

The Finance Committee of the Board of Trustees, the chairman of the board, the CEO and the CFO meet monthly during the year to review financial statements. This committee also approves the annual operating budget and the Internal Revenue Service Form 990. In 2010, the Audit Committee met with the independent auditors to review the 2009 audit and related management letter. There were no reportable items from the auditors regarding the 2009 audit.

In 2010, the Gardens will be hosting a Henry Moore exhibition, completing the Mordecai Children’s Garden and Greenhouse Complex, and continuing to fundraise for its Flourish Capital Campaign. The Gardens thanks its members, donors, the Scientific and Cultural Facilities District (SCFD), and the city and county of Denver for their foundation of support. All of the efforts to upgrade the facilities of the Gardens and to enhance the visitor experience will result in long-term growth and security for the institution.

NANCY SCHOTTERS Treasurer, Board of Trustees

2009 Denver Botanic Gardens Annual Report 23