Report on Finances
THE detailed story of Dartmouth's magnificent 1951 Alumni Fund achievement appears in this issue. The complementary story, telling of the life-saving role that the Fund played in the College's financial operations for the fiscal year 1950-51, is to be found in the annual financial report which John F. Meek '33, Treasurer of the College, presented to the Trustees at their October meeting.
The loss for the year without the Alumni Fund would have been $453,303, Mr. Meek reported. But thanks to the Fund, the 1950-51 books were closed with an unrestricted credit balance of $9,183. This was the second annual financial report made to the Trustees by Mr. Meek since he took over the duties of College Treasurer, and for the second time he was able to announce an outcome that was decidedly favorable, especially in a year of rising costs and other difficulties growing out of the international situation.
The detailed figures on income and expense for 1950-51, with comparative amounts from the year before, are printed in the boxed tabulation with this article. The revised form in which the statement is presented includes the total amounts, on both the income and expense sides, for "Auxiliary Activities" such as the Dartmouth Dining Association, Dartmouth College Athletic Council, D.O.C. House, Hanover Inn, Hanover Country Club, dormitories, and outing properties, which previously have figured in the income and expense statement only in their net results. In this new form, the annual expense total for 1950-51 was $5,421,548 and the income total, before application of the Alumni Fund, was $4,968,345. For comparison the results for the fiscal year 1949-50 are also shown on the new basis.
Included in the favorable financial operations for 1950-51 was the transfer of $112,500 to reserves for specific operating expenditures, as shown in the table. "It is expected," Mr. Meek reported, "that this entire amount will be expended in 195152 to meet urgent needs for which 1951-52 income cannot at this time be committed. The most important of these urgent needs is provision for assisting Dartmouth College personnel to meet the higher costs of living which have resulted from the inflationary forces at work in the national economy."
Aside from the Alumni Fund, a highly favorable factor during the past year was the increase of $152,365 in net income from endowment and similar funds. Student fees, however, declined by $65,935 from the previous year.
On the expense side, total educational and general costs were up $174,909 or 5.2% over the year before. Instructional expense increased $54,349, scholarship aid $40,871, administration $27,318, and plant operation and maintenance $14,716.
The total assets of Dartmouth College on June 30, 1951 amounted to $38,083,782 at book value. Included were $28,714,686 in endowment fund assets, $8,432,920 in plant assets, and $1,259,344 in current assets. The plant figure, representing 22% of total assets, does not include dormitories and certain service properties which are carried as investments of endowment funds. If these properties were added, the plant total would be $11,392,130.
The increase in Dartmouth's total endowment funds for the year was $1,366,363, of which $1,101,371 came from gifts and bequests. The associated endowment funds, which make up 75% of total endowment funds, share pro rata in the income of the assets of such funds, and the rate of distribution for 1950-51 was 5.063% as compared with 4.313% the year before. The average net return on all investments was 5.11% as compared with 4.55% the year before. In the principal investment categories, common stocks, representing 46.3% of total investments, produced a return of 7.55%, followed by preferred and guaranteed stocks at 5.09%, real estate mortgages at 4.76%, dormitories 4.63%, and bonds 3.04%.
On security investments alone the average return was 5.50% as compared with 5.00% for 1949-50. Securities are distributed 56.3% in common stocks, 38.1% in bonds, and 5.6% in preferred and guaranteed stocks. They are 29.7% in industrials, 24.1% in public utilities, 16.1% in governments, 12.6% in mining and oil, 10.1% in railroads, and 7.4% in financials. On June 30, 1951 the excess of market value over book value totaled 13,735,116.
During the year 1950-51 the Hopkins War Memorial Program Fund received $85,463 in gifts and $35,105 as investment income. Charges of $212,255 were made against the fund in connection with the enlargement of Wilder Hall, leaving a balance on June 30 of $1,624,265.
In his report to the Trustees, Mr. Meek gave a full measure of credit to the 1951 Alumni Fund for the financial success of the past fiscal year. The Fund, he declared, "not only made it possible for the College to go through a trying year with its financial strength unimpaired, but also provided additional resources for improvement of the student financial aid program. I wish to express to the many contributors to the Alumni Fund, to the class agents, and to the Alumni Fund staff and other workers the deep appreciation of the College for their loyal and generous support which again enabled Dartmouth to continue to maintain the high quality of its educational program."
Printed copies of the 1950-51 financial report, containing detailed schedules of assets and of income and expense for the year, may be obtained by writing to the Office of the Treasurer, Parkhurst Hall, Hanover, N.H.
COLLEGE TREASURER John F. Meek '33, who reported a favorable outcome for fiscal 1950-51.
