College's Endowment Tops $100,000,000
THE College's annual financial report for 1963-64, released last month in printed form after its submission to the Board of Trustees by Treasurer John F. Meek '33, shows that operations for the year finished in the black with a net income balance of $36,409.
The operating budget for the year exceeded $19,000,000, which is more than three times the total assets of the College fifty years ago.
The assets as of June 30, 1964 were $123,900,000 at book value. Using market value for the securities held by the College as part of its total investments, Dartmouth's endowment for the first time in its history exceeded $100,000,000. Some of the highlights of the printed report follow:
CURRENT OPERATIONS
Income utilized for the year 1963-64, including income from auxiliary activities and $1,300,000 from the Alumni Fund, totaled $19,166.87. Total expense was $19,129,778. The net income balance of $36,409 was added to the Unrestricted Current Fund, bringing it to $242,197.
These figures compare with the previous year's totals of $16,689,078 income and $16,658,631 expense.
A clearer picture of current operations in terms of the College as an educational institution is given by eliminating dormitories, dining facilities and other auxilary activities from the income and expense figures. On this basis, income for 1963-64 was $15,511,454, an increase of $2,186,653 or 16.4% over the year before; and expense was $15,340,450, an increase of $2,141,185 or 16.2%.
On the income side, student fees, amounting to $5,684,442, increased by $578,847 as a result of higher tuition. Income from sponsored research, totaling nearly $3,500,000, was $743,041 higher. Current-use gifts were $270,594 higher, and endowment income utilized was up $102,580. Income was also augmented by the transfer of $561,159 from reserves and the principal of various funds, including $140,000 of principal and $96,403 of income from the faculty salary component of the Capital Gifts Campaign.
On the expense side, instructional costs increased $755,533, of which $155,600 was for undergraduate faculty salaries and $90,000 for the fourth term. Some $300,000 of the increase, for graduate, and special projects, was largely met by grants for the purpose. Plant operation and maintenance increased by $131,593, mainly because of the summer term; and there was an additional increase of $72,000 for athletic plant operation because of the new swimming pool and the first full year's use of the Leverone Field House. The cost of student services rose $331,898, scholarship aid $123,776, library expense $53,461, public services $75,023, and general administration $34,588.
The College's auxiliary activities, with total income of $3,654,733 and costs of $3,789,328, entailed a net expense of $134,595.
Scholarships awarded in 1963-64, including the associated schools, totaled $1,076,917, an increase of $123,776 or 13% over the total of the previous year. This does not include the $101,908 awarded under the College's Faculty Children's College Scholarship Program. Of the $1,076,917 of scholarships awarded for the year, $445,785 or 41.4% was financed by endowment income and $197,235 or 18.3% by current gifts for that purpose. The remaining $433,897 or 40.3% was allocated from unrestricted current income.
BALANCE SHEET
The total assets of Dartmouth College on June 30, 1964 amounted to $123,900,034, an increase of $7,116,240 for the year.
This grand total is made up of $82,930,984 in endowment funds, $32,582,789 in plant funds, $7,220,884 in current funds, and $1,957,752 in loan funds. The endowment figure includes $1,531,963 reserved for plant construction but temporarily invested.
The plant figure does not include dormitories and certain service facilities carried as investments of endowment funds. When these are added, the value of the College's physical plant rises to $37,027,277.
The endowment figure in the balance sheet is listed at book but actually has a much higher value. Excluding the separately invested funds reserved for plant construction, the College's general investment total on June 30 was $81,126,538 at book; but securities listed at $63,943,247 had a market value of $88,151,542. Securities figured at this market value and other investments of $17,183,291 figured at book value would raise the College's total investment fund to $105,334,833. Thus for the first time in its history the College's endowment assets exceeded $100,000,000.
On the basis on this full valuation, the net return for the year was 3.81% compared with 4.18% the year before. The decline was due primarily to market values rising more rapidly than dividends and interest rates. Also, a number of bonds with a high rate of return were recalled during the year.
GIFTS, GRANTS AND BEQUESTS
The total of gifts, grants and bequests received in 1963-64 was $9,430,489, a decline of about $400,000 from the year before. Included was $3,865,737 from Federal agencies for sponsored research, plant construction, and other purposes.
Of the grand total of gifts, grants and bequests, $2,436,311 was added to endowment, $1,375,356 was Capital Gifts Campaign and plant fund receipts, and $5,618,822 was in the current-use category. The latter included the record-breaking 1964 Alumni Fund, which provided $1,300,000 for general operating expenses of the College and financed the remodeling and expansion of Baker Library's periodical room at an estimated cost of $100,000.
As of June 30, the total of Capital Gifts Campaign gifts and pledges amounted to $17,711,378, of which $17,235,040 had been received, leaving $476,338 of pledges outstanding.
