Financial Report 1968-69

THE financial operations of the College in fiscal 1968-69 resulted in the largest deficit in its history - $603,017. "This deficit and that of $61,101 for the previous year of 1967-68, coming as they do after eighteen years of operating 'in the black,' are indicative of the growing financial pressures which face Dartmouth as it enters its third century," College Treasurer John F. Meek '33 stated in his annual report to the Trustees, released in December.

The budget for the year had anticipated a deficit of just under $500,000. The College's financial planning for the duration of the Third Century Fund took into account the slowing down of additional income from two major sources. It was expected that the Alumni Fund, which had been growing annually by about 13%, would level off during the years of the capital campaign. This has happened and the Alumni Fund has posted approximately the same dollar total for the past three years. It was also expected that gifts for endowment, and also bequests to some extent, would be channeled into the Third Century Fund, thus delaying their financial benefit to the College.

For the current fiscal year and the four ensuing years, Mr. Meek reported, the Third Century Fund of $51 million includes an expendable component of $5 million which will enable the College to move forward with compensation and other programs until the strength of the Third Century Fund becomes fully applicable and annual resources resume their normal growth.

Total expenses of the College for the year 1968-69 amounted to $31,650,701, an increase of $3,373,244 or 12% over the prior year, while revenues totaled $31,047,686, an increase of $2,831,328 or 10%. To meet this deficit of $603,017 the College used the entire remaining balance of $71,793 in the unrestricted current fund which had been built up from small surpluses in recent years, and the remaining $531,224 came from the unrestricted portion of the investment income stabilization reserve.

Although tuition for 1968-69 had been increased from $2075 to $2200, the revenue gain was only $365,838 because of abnormal attrition during the year and an increase in the number of students abroad on the foreign study program, the entire tuition for which is used in the program. The total of revenue from student tuition and fees was $7,972,907.

Endowment and quasi-endowment revenue utilized for the year amounted to $4,393,363, which was $537,393 or 14% greater than the year before. Gross endowment income was $5,996,116, up $797,412 or 13.3%, but from this was taken transfers to principal and reserves as specified by donors and Trustee action, payments to life-income beneficiaries, and transfers to the Alumni Fund.

Current gifts utilized amounted to $1,128,361, an increase of $378,750 over the previous year. The increase was mainly in gifts to the; Medical School and Thayer School. Total support from the federal government and other outside sources was slightly more than $6 million, an increase of $126,000 for the year. Although some research projects were curtailed by federal budget cuts, medical research and computer programs continued to grow and more than offset the cuts.

On the expense side, instructional costs increased by $975,846 or 14.5%. Of that amount, $475,000 was for the Medical School's new M.D. program and the Dartmouth-Hitchcock Mental Health Center. The increased Medical School expense was met by gifts and other special revenue for the purpose.

Scholarships for undergraduates increased by $153,455 to a total of $1,465,115. Of this total, 54.8% was financed by endowment revenue and gifts earmarked for scholarship purposes, with the balance of $661,257 coming from unrestricted current income. Counting loans and jobs as well as scholarships, approximately 40% of the undergraduate student body received financial aid in 1968-69. Graduate fellowships granted for the year totaled $605,835.

The operations of Dartmouth's so-called auxiliary enterprises - dormitories, dining halls, rental housing for faculty and staff, Hanover Country Club, Dartmouth Skiway, and similar activities — resulted in a net loss of $164,494 compared with $142,996 the year before. In addition, the Hanover Inn had a loss of $37,797.

Total assets of the College as of June 30, 1969 were $195,535,150, an increase of $16,240,420 for the year. Included were endowment and quasiendowment funds of $145,241,760 at book value (up from $128,880,537), plant funds of $36,648,575 (up from $35,767,044), loan funds of $3,659,587 (up from $3,323,783), and current funds of $9,985,228. Total investments, valuing securities at market and other investments at book, were $147,644,063, an increase for the year of only $1,206,000 after taking into account the general decline in market values.

Operating Revenue, 1968-69 1968-69 1967-68 EDUCATIONAL AND GENERAL Student Tuition and Fees $ 7,972,907 $ 7,607,069 Endowment Revenue Utilized 4,393,363 3,855,970 Alumni Fund Utilized 2,123,721 2,144,248 Gifts Utilized 1,128,361 749,610 Sponsored Research 4,520,971 4,118,759 Other Sponsored Programs 1,498,499 1,773,855 Organized Activities Relating to Education Hopkins Center 205,619 184,886 Computation Center 225,435 181,730 Foreign Study 342,349 150,266 Medical School 442,115 294,544 Other 51,213 52,099 Other Sources Including Transfers 2,101,737 1,645,940 Less Student Aid Revenue (927,792) (865,550) Total Educational and General $24,078,498 $21,893,426 STUDENT AID REVENUE 927,792 865,550 ATHLETICS AND PHYSICAL EDUCATION 516,629 511,833 AUXILIARY ENTERPRISES Dartmouth Dining Association 1,904,032 1,879,238 Student Housing 1,569,659 1,444,346 Other 2,051,074 1,621,963 TOTAL REVENUE $31,047,684 $28,216,356

Operating Expenditures, 1968-69 1968-69 1967-68 EDUCATIONAL AND GENERAL Instruction and Departmental Research $ 7,863,524 $ 6,887,678 Organized Activities Relating to Education Hopkins Center 850,095 704,993 Computation Center 600,837 495,324 Foreign Study 298,572 139,655 Sponsored Research 3,794,723 3,505,143 Other Sponsored Programs (Less Transfers to Instruction and Student Aid) 1,090,054 1,301,669 Libraries 1,346,627 1,101,070 Student Services 2,335,771 2,049,720 Plant Operations and Maintenance 1,817,435 1,668,896 General Administration 907,343 827,371 Development and Public Relations 856,819 795,403 General Institutional 697,615 574,823 Total Educational and General " $22,459,415 $20,051,745 STUDENT AID 2,199,007 1,963,633 ATHLETICS AND PHYSICAL EDUCATION 1,303,020 1,173,536 AUXILIARY ENTERPRISES Dartmouth Dining Association 1,928,517 1,893,867 Student Housing 1,568,777 1,442,012 Other 2,191,965 1,752,664 TOTAL EXPENDITURES $31,650,701 $28,277,457 Excess of Expenditures Over Revenue $ 603,017 $ 61,101