A Familiar Financial Story
Alumni Fund Once Again Enables College to Close Books Without Deficit, Treasurer's Report Discloses
WITH THE ALUMNI FUND again filling the gap between operating income and expense, the College closed out another financially successful year on June 30, it is disclosed in the annual September report to the Trustees by Halsey C. Edgerton '06, Treasurer, and Max A. Norton '19, Bursar. The gap closed by the Alumni Fund amounted to $96,- 809.70, a figure approximately $15,000 larger than that offset by the Fund last year.
Although instructional costs increased over the previous year by 537.906.53 and receipts from students decreased by $12,- 725.89 as a result of somewhat smaller enrollment, the excellent Alumni Fund results combined with increased income from investments and miscellaneous sources to overbalance these figures. The College added $ 10,000 to the $35,000 Income Equalization Reserve set aside during the previous two years, and also applied the Alumni Fund balance of $19,187.09 to the Dartmouth Hall Reconstruction Account, which was thereby reduced to $7,891.18.
TOTAL FIGURE $30,000 HIGHER
. Total income and expense for the fiscal year 1939-40 balanced at $1,932,230.03, a figure $30,627.28 greater than for 1938-39. In comparison with expenditures of the preceding year, administrative expenses increased by $2,466.82, restricted current funds by $11,290.42, and annuities and additions to principal by $17,135.34; while general expenses were $24,024.06 lower, plant operation and maintenance $8,- 698.53 lower, and Health Services costs $5,449.24 lower. Instructional expenses, as already mentioned, were $37,906.53 higher. On the income side, receipts from investments were $25,641.45 larger than in 1938- 39, gifts were $11,171.18 larger, and miscellaneous receipts were $6,540.54 larger; while income from students decreased by $12,725.89.
On this same page is printed a table of income and expense on a per student basis. Although subject to qualification, since students are not directly involved in all the expenses of the College and since there is always the danger of misinterpretation of such averages, the table is nevertheless presented as an interesting breakdown of College financing for the year. Income from students provided 50.32% of the year's receipts, compared to 51.79% in 1938-39, while direct instructional costs were 63.93% °£ 'he year's total expenditures as compared to 62.98%.
The average net return on all College investments was 3-94% as compared with 3.87% for the previous year. The rate of return realized was 5.45% on preferred stocks; 5.18% 011 dormitories, which are carried as investments of endowment funds; 4.01% on real estate mortgages; 3.83% on bonds; 3.82% on common stocks; 3.57% on Hanover real estate; and .26% on real estate outside of Hanover.
The book value of College investments on June 30, 1940 was $18,034,284.00, while the grand total of assets was carried on the balance sheet at 125,751,883.49, an increase of $528,713.34 or approximately 2% over the grand total of the year before. The educational plant is carried at $7,533,- 722.21, ari increase for the year of $61,- 578.98; if the dormitories and certain service properties were included, the total plant figure would be $10,537,716.83. The increase in the plant figure is largely represented in the completion of the Horace S. Cummings Memorial, new home of the Thayer School. The usual provision of $10,- 000 as a charge to operating expenses was made for the financing of the Reed Hall Reconstruction Account. Thayer Hall, upperclass dining center, continues to be an unfinanced project. Depreciation of $8,- 986.40 during the year reduced the amount to $340,755.22.
The present total of Dartmouth's endowment and reserve funds is $17,962,995.15, representing a net. increase of $182,355.71 during the year. Gifts for the year amounted to $459,212.74, but losses realized on the sales of investments reduced the total gain to the figure given. Among the larger gifts for endowment received dur- ing the year were an unrestricted $75,00 from a trust fund created by Frederick I Garretson '79 of Newport, R. I.; $57,382.5 from insurance policies carried by Verso W. Gooch [01; and an additional distribition of $61,583.87 from the estate of Alba O. Brown '78 of Manchester, N. H. Th College also received $88,500 from tli Colorado-Dartmouth Alumni Associatioi beneficiary of this sum under the will 1 Frank E. Gove '88 of Denver, to be a ministered with the endowments of th College. The largest single gift of the ye: was an unrestricted $150,000 from tli Carnegie Corporation of New York as development fund. This sum is being hel as a backlog pending clarification of charging conditions.
In concluding his introduction to there! port to the Trustees, Mr. Edgerton again paid tribute to the all-important role whicl the Alumni Fund plays in College finano ing. "The most difficult part of the prepan tion of this report," he said, "is how tJ express with sufficient earnestness and sin cerity the gratitude of the College to thJ alumni for the great success of the Alumni Fund. Words cannot tell how deeply w who are administering the affairs of tilt College appreciate the response of the alumni to the annual appeal for financial support.
"This year the task of voicing this ap preciation is more difficult than ever, for the 1940 campaign was the most successful in the history of the Fund with the single exception of the year 1939, which showet totals only slightly higher. Direct contribustions, without the edition of income from special funds, reached the most gratifying figure of $121,864.12. The other incomed brought the total figure to $126,255.90; 110% of the quota established. What il even more satisfying is the fact that a new high record of participation was established The list of contributors contains 10,131 names. The number of living graduates now stands at 12,378. Such records should fill every alumnus with real pride, for they represent the loyalty and generosity of the men of Dartmouth all over the world."
Printed copies of the complete Financial Report for 1939-40 are available on application. Alumni not already of the mailing list may obtain copies by sending a request to the Treasurer's Office.
