A Report on Finances
DARTMOUTH COLLEGE ended fiscal 1956-57 in the black, with a balance of $26,154 to add to unrestricted current funds. This plus figure, made possible by the application of $720,000 of the 1957 Alumni Fund to operating expenses, was the outcome of financial operations for the year that went beyond $8,000,000 for the first time on both the income and expense side.
The financial position of the College as of June 30, 1957 was reported to the Trustees by John F. Meek '33, Vice President and Treasurer, at the annual fall meeting of the Board in Hanover.
The details of income and expense, with comparable figures for the year before, are given in the boxed statement on this page. Excluding auxiliary activities (DCAC, Dining Association, outing properties, Hanover Inn, etc.), total net educational and general income of $5,505,658 was $587,164 or 12% greater than the year before. Total educational and general expense of $5,978,773 was $616,383 or 11% greater.
Gross income from endowment, after deducting investment management charges, was $2,204,511, or $254,779 more than in 1955-56. The amount utilized, $1,562,083, after transfers, annuities, and deferrals to reserves, was $150,000 greater than the year before. This net endowment income produced 25.6% of the educational and general income of the year. Student fees produced 49%, the Alumni Fund 11.8%, other gifts for current use 4.9%, and miscellaneous sources 8.7%.
Gifts and bequests received during 1956-57 totaled $4,789,026, exceeding by more than $350,000 the previous record established just the year before. Alumni gifts and bequests totaled $2,333,236, while another $1,910,774 came from foundations, trusts and corporations. This latter amount included the Ford Foundation endowment and accomplishment grants for faculty salaries totaling $1,213,500, which was the second of two such payments to the College.
Of the 114,789,026 total of gifts and bequests, the greater part, $2,973,958, was added to endowment. Dartmouth's total endowment at book value on June go, 1957 was $48,075,625, a gain of $4,370,523 for the year. Of this total, $35,695,427 is carried as Associated Endowment Funds (774 individual funds combined for investment purposes) and $12,380,198 as Separately Invested Funds. The Hopkins War Memorial Program Fund, in the amount of $2,060,445, reserved for plant construction, appears under the separately invested category.
The investments of the College's endowment funds as of June 30, excluding the Hopkins War Memorial Program Fund, totaled 157,710,251, comprising 149,980,445 market value of securities and $7,729,806 book value of mortgages, real estate and miscellaneous investments. The net return on all investments, at these valuations, was 3.76%. On securities alone, at market value, the return was 3-99% as compared with 3.88% the year before. The securities distribution, with rates of return given in parentheses, was 64% in common stocks (4.16%), 33.7% in bonds (3.67%) and 2.3% in preferred and guaranteed stocks (4-25%).
The grand total of Dartmouth College assets on June 30 was $59,999,480, made up of $48,075,625 in endowment and similar funds, $9,321,708 in land, buildings and equipment, and $3,745,304 in current funds. If the net value of dormitories, dining facilities and certain service properties carried as endowment fund investments were added, the total plant valuation would be increased to $12,676,806.
Income and Expense, 1956-57
1955-56 INCOME 1956-57 $2,906,139.21 Student Fees $2,990,856.32 1,412,201.73 Net Endowment and Similar Funds Income 1,562,082.68 278,510.79 Net Gifts for Current Use 301,044.53 57,709.00 Land and Buildings 98,959.64 29,979.09 Health Service 28,363.42 293,953.75 Miscellaneous 403,351.29 $4,978,493.57 $5,384,657.88 5,000.00 Add: Transfer from Plant Reserve 126,000.00 $4,983,493.57 $5,510,657.88 65,000.00 Deduct: Transfer to Reserves 5,000.00 $4,918,493.57 NET EDUCATIONAL AND GENERAL $5,505,657.88 2,304,891.92 Auxiliary Activities 2,529,574.92 $7,223,385.49 TOTAL INCOME Before Alumni Fund $8,035,232.80 EXPENSE $2,373,365.64 Instructional $2,561,441.12 321,103.34 Libraries 346,527.68 555,384.49 Administration 663,539.43 779,250.97 Plant Operation and Maintenance 914,597.65 593,604.00 Scholarships 635,540.00 196,135.19 Health Service 218,915.41 543,546.02 Miscellaneous 638,211.99 $5,362,389.65 TOTAL EDUCATIONAL AND GENERAL $5,978,773.28 2,495,993.81 Auxiliary Activities 2,750,304.67 $7,858,383.46 TOTAL EXPENSE $8,729,077.95 $ 634,997.97 Deficit Before Alumni Fund $ 693,845.15 660,000.00 Alumni Fund Applied to Operating Expense 720,000.00 $ 25,002.03 BALANCE added to Unrestricted Current Fund $ 26,154.85
