College Finances, 1960-61

DARTMOUTH College ended fiscal 1960-61 in the black, with a balance of $5,905 to add to unrestricted current funds. Once again the hero in the story is the Dartmouth Alumni Fund which provided a gross of $1,014,035 to help cover the operating costs for the year. The College also used $75,000 from the Capital Gifts Campaign faculty salary fund.

Total operating costs for 1960-61 climbed to $13,586,982, an increase of $1,273,067 over the previous year. The cost figure is broken down into $8,771,181 for educational and general operations, $973,378 for student aid, $727,325 for the physical education and intercollegiate athletic programs, and $3,115,098 for auxiliary activities, such as the Dartmouth Dining Association, dormitories, faculty housing, the Hanover Inn, and Hanover Country Club.

Instructional expense increased $349,439 and departmental research expense $395,674, although the latter figure was virtually entirely offset by additional grants for this purpose. Library costs were up $66,490, plant operation and maintenance $143,824, student services $209,727, and general administration $25,920. Student aid increased by nearly $30,000. The net cost of maintaining the athletic and physical education programs was $103,358 higher than in the preceding year.

On the income side, student fees of $4,318,012 remained about the same as for the prior year. Net endowment income utilized amounted to $1,809,337 and was $327,353 greater than in 1959-60. Gross income from endowment fund investment, before transfers, annuities and deferrals to reserves, was $3,388,857, an increase of $367,044 or 12% over the year before.

Net gifts for current use, including the Alumni Fund, amounted to $2,684,287. This represented an increase of $736,418, including $265,679 more from the Alumni Fund and $382,219 more in grants for departmental research. Also boosting the 1960-61 income total was a transfer of $215,050 from endowment principal and $47,056 from reserves, together making an increase of $233,690 over the prior year.

Total assets of Dartmouth College on June 30, 1961 amounted to $98,783,201, an increase of $7,756,832 for the year. This grand total was made up of $75,328,566 in endowment and similar funds, $18,625,146 in plant assets, $1,031,198 in loan funds, and $4,188,129 in current assets. A portion of the Dartmouth plant is carried as investments of endowment funds; if this amount is added, the actual net book value of the plant on June 30 was $23,774,591.

The capital expenditure for plant development during the year was $5,659,463, financed largely by funds raised in the Capital Gifts Campaign. The endowment total above includes another $8,947,220 reserved for plant construction and temporarily invested separately and carried with the endowment funds. Exclusive of this plant reserve, Dartmouth's total endowment on June 30 was $66,051,549, a gain of $6,189,711 for the year.

Excluding the separately invested plant funds, Dartmouth's .total investments on June 30 amounted to $66,442,986 at book value and $81,402,690 at market value. Using the market value figure, these investments are 81% in securities and 19% in real estate, mortgages, and other investments.

Securities, at market value, are 59.9% in common stocks, 39.0% in bonds, and 1.1% in preferred and guaranteed stocks. At book value, they are 51.6% in bonds, 46.9% in common stocks, and 1.5% in preferred and guaranteed stocks.

The net investment return for the year was 4.14%, compared with 3.89% the year before, valuing securities at market and other investments at book. On securities only, the return was 4.09% at average market values and 4.91% at book value.