Financial Report for 1966-67
THE ANNUAL financial report of the College, which gets into higher and higher figures as the fiscal years march on, passed the $25-million level on both the expense and income sides in 1966-67. Despite an increase of $2,117,249 in operating costs for the year ended June 30, additional income of almost the same amount was produced and the College ended the year in the black with a net balance of $32,123 to add to its Unrestricted Current Fund.
Once again, the Dartmouth Alumni Fund came to the rescue, providing $1.85- million of free funds for 1966-67 and an additional $250,000 for urgent budget items in the current year.
The highlights of the financial report submitted to the Trustees by John F. Meek '33, Vice President and Treasurer of the College, are set forth in the table below. Some other facts from the report are these:
Operating Income: Student fees of $7,004,159 were up $532,946 over the previous year, due mainly to an increase in the annual tuition from $1800 to $1925. A further tuition increase to $2075 went into effect this year. Endowment income utilized in 1966-67 amounted to $3,586,913 and was $166,827 or 5% higher than the year before. This included $547,896 of endowment income expended for student aid. Gross income from endowment and similar fund investments was $4,768,508, an increase of $224,522, but the amount available for current use was reduced by transfers to principal and reserves (as stipulated by donors or action of the Trustees), by the usual transfer of income from Class Memorial Funds and other funds to the 1967 Alumni Fund, and by payments to beneficiaries according to life income trust and annuity agreements. Operating income for the year was augmented by the use of $797,898 from the principal of various funds and expense reserves. This included $165,000 from the faculty salary component of the 1958 capital gifts campaign, $125,821 of the Sloan Foundation grant to the Thayer School, and $194,002 of the Ford Foundation grant for the comparative studies program. Governmental and other agency income used for sponsored research during 1966- 67 amounted to $4,123,489, down slightly from the previous year.
Operating Expense: The year's increase of $1,799,457 in expense came about mainly through higher levels of compensation throughout the College, expansion of services, and an unusually high volume of Peace Corps training programs, for which the College received federal funds. The jump of $492,871 in instructional expense included an increase of $270,000 or 7% in faculty salaries and an increase of $40,000 or 9% in clerical and technical personnel salaries within the academic departments. Library expenses rose $93,270 or 10.5% for the year, and general administrative expense was up $45,165 or 6%. Other rises in operating costs were $116,253 for student services in- cluding the College Health Service, $52,445 for public services and information, $18,717 for the Hopkins Center Summer Congregation of the Arts, and $112,366 for physical education and athletic programs, including facilities.
Student aid, totaling $1,679,100, was $445,442 higher than the year before, mainly because of the upward adjustment of grants to help meet higher tuition charges. About 32% of this was financed by endowment income and 38% by unrestricted current funds. Current gifts (13%) and sponsoring agencies (17%) provided the remainder of the funds for aid at the undergraduate and graduate levels.
Auxiliary Activities: These activities, embracing dormitories, dining halls, rental housing for faculty and staff, and the Hanover Inn, had income of $4,378,494 and related expense of $4,394,765 for a net expense of $16,271. This was a decided improvement over the year before when net cost was $87,005. One factor in the reduced deficit was a rent increase affecting all employee housing.
Endowment Funds: On the balance sheet as of June 30, 1967 the endowment funds are listed at book value of $110,663,914. This total includes $2,219,569 of funds reserved for plant construction and temporarily invested. Exclusive of these unexpended plant funds, the endowment figure of $108,444,345 represents a gain of $8,484,172 for the year.
Valuing securities at market and other investments at book, the total of Dartmouth's investments on June 30 was $129,646,908 rather than the $108,444,345 given in the preceding paragraph. This total was made up of $110,407,325 in securities (market value) and $19, 239,583 in mortgages, real estate, and miscellaneous.
Net Return: On total investments for the year the net return was 3.85% compared with 3.95% the year before. The lower return was primarily due to increased emphasis on growth in common stock investments.
Highlights of the Financial Report 1966-67 1965-66 CURRENT OPERATIONS Income including Alumni Fund $25,800,734 $23,686,462 Expense 25,768,611 23,651,362 Balance to Unrestricted Fund $32,123 $35,100 BALANCE SHEET Current Funds $11,350,839 $9,620,700 Loan Funds 3,083,189 2,763,485 Endowment Funds 110,663,914 102,059,366 Plant Funds 35,731,990 . 34,992,933 Total $160,829,932 $149,436,484 ENDOWMENT ASSETS, MARKET VALUE $129,646,908 $115,686,920 PHYSICAL PLANT $40,124,393 $39,204,890 GIFTS AND BEQUESTS For Endowment and Plant $5,039,132 $3,977,777 Alumni Fund Utilized 1,850,000 1,700,000 Other Funds for Current Use 1,250,872 1,142,421 Total $8,140,004 $6,820,198
