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' errata d to e pelure, :on d n 1 2 3 32X 1 2 3 4 5 6 UNIVERSITY OF TORONTO. / REPORT OF COMMITTEE APPOINTBD BY THE BOARD OF TRUSTEES ;^3• :«- TO CONFER WITH THB BURSAR AS TO THB CAPITAL AND iSfCOME ACCOUNTS , *»"• w AND OTHER MATTERS CONNECTED WITH THE ADMINISTRATION OF HIS OFFICE. • • -A.r>OI»TH!ID, ISrOVBIitfBBR SXHC, i8Q3 TORONTO : WARWICK BROS. & RUTTER, PRINTERS, 68 and 70 FRONT ST. WEST 1893. B AND UNIVERSITY OF TORONTO. REPORT OF COMMITTEE APPOINTKD BY THE BOARD OF TRUSTEES TO CONFER WITH THE BURSAR AS TO THE CAPITAL AND INCOME ACCOUNTS AND OTHER MATTERS CONNECTED WITH THE ADMINISTRATION OF HIS OFFICE. .A.IDOFa?EID, TTOVEl.ffBElR STH, 1803. TORONTO WARWICK BROS. & RUTTER, PRINTERS, &c., 68 & 70 FRONT STREET WEST, 1898. V\ UNIVEHSITY OF TUKOXTO. TouoNTO, November Ist, 1803. To tJie Trustees of the Uninnraitj/ of Toronto and University College : Gentlkmen, — At a meeting of the Itoard of TruHtees held 19th November, Minute an- 1891, the following minute was recorded : miUe'J!'^ Minute. — Mr. Walker suggests that there should be an inspection and valuation of the mortgages of the University. Mr. Walker also enquires as to the system of book-keeping and audit adopted. It is also suggested that some plan for watching mortgages in urrear should be formed. Ordered, that Messrs. Walker and lloskin be a Sub-committee to enquire into and report on these matters with their suggestions as to any improve- ments in administration. of Committee, On Slst December, 1891, your Oomnnittee reported as follows: The Committee consisting of Messrs. Hoskin and Walker appointed to Fiwt ReiJort confer with the Bursar as to the Capital Accounts, Custody ot Securities, Auiiting of Books of the University, etc., beg to report as follows : The Committee find that the Bursar keeps on ♦he one hand no Capital Accounts ; and on the other hand no Assets Accounts covering the holdings of the University in debentures and mortgages, and the property of the University in lands, buildings, etc.; an! that the balance sheet prepared semi- annually for the Provincial Auditor shows merely the uninvested cash in the hands of the Bursar at the particular date. There is an account called " Capital Account " to which receipts from mortgages, sales of land, endow- ments or other sources are cr^^dited, and to which loans or other investments and expenditures for buildings, etc., are debited. The Committee recommend that proper Capital Accounts be at once opened and also Assets Accounts, covering the properties of the University under such heads as the following : 1. Debentures, stocks, etc. 2. Mortgages. 3. Lands under lease. 4. Lands sold, purchase money in course of payment. 5. Property held for sale or lease. 6. University buildings. 7. University Library. 8. University furniture account. Until such accounts are kept no proper audit can, in the opinion of the Committee, be made. The Committee understand that the debentures owned by the University are in the custody of the Provincial Auditor and the Bursar. The Bursar annually makes a return of debentures and mortgages owned by the University, but these do not b ilanoe with any account in hi? books. No ledger accounts are therefore kept for the loans. A loan register, however, is kept in which the particulars of all loans are recorded, interest being entered as it becomes due, not as a book-keeping entry, but as a memorandum. Thfi Cotnrnittpe would iPuommfind in connection with the loans that here- after H l.lnck IJMt l)e kept Hhowing the nainea of horrowerH in arrear for piinci|.nl or iiitereHt, which l»oi>k Hhould hn pUced upon the table at each niet'tini^ of the Hoard of TriiHtecH. The Ooinniittee would alKO recoiiiineiid that Mr. W. If. Cross lie appointed to aKsisi the liursar in opening a mt of Imoks in fonformity with this report, and in opening hooks for the Hccouiits in conncition with the Retirement Fund; also that a projier system of audit be arrarjged. At the conclusion of his laborH Mr. Cross should luakr a report to the Board. In connection with the loans made by way of raorr({age, the Oomuiittee find that the Bursar employs no regular vahiitor, and it is recommended that the existing loaiiH of the UniverHity be reexamined by a competent valuator. It is also recommended that the entire qiieHtion of making loans by way of mortgage be the subject of discussion by the Board of Trustees. In this con- nection it will be well to considt r whether, in view of the moderate volume of capital at our command, loans should be made outside of the City ot Toronto. The Coamittee have not conjidered the (juestion as to whether an improved system of book keeping' will involve more work in the Bursar'd Department, preferring to leave that (luestion for the discussion of the Board after Mr. Cross' report has been received. Toronto, Slst December, 1891. Employmont The recommendation of your Committee, that Mr. VV. H. Cross, F.CA, to ^'' fth"* ^^ employed to assist the Bursar in opening a set of books in conformity with Bursar in thiir report, was adopted. Nothing definite, however, could be accomplished oiKjninga newuntil the closing of the books for the fiscal year of the *University, ending •et of Books. 30th June, 1892. When the books were ready to be closed the following letter was, with the approval of the Board, addressed to Mr. Cross : Mr. Walker's letter of in- Htruction to Mr. CroBs. Toronto, 17th August, 1892. Dear Mr Cross, — The Bursar has about completed the closing of hia books to 30th Jnne, and will be in a position in a few days to make the entries in connection with the agreement between the Upper Canada College and the Toronto University. The property map necessary for the valuation of some of the assets of the University is now made and it is desired that the set of books contemplated in the report of Messrs. Hockin and Walker to the Board of Trustees, dated Slst December, 1891, a copy of which is in your hands, be at once proparjd. If there are any assets or liability accounts, accurate figures for which cannot be at once reached, we would suggest that the opening of the books be not delayed for that reason but that such accounts be added later. In this manner while a balance sheet taken at the moment of opening the books would not exhibit a perfectly accurate state of the accounts of the University, we may hope to have a complete set of books within a few months ; and in the meantime the book-keeping will be carried on under the new system, with proper arrangements for audit. 1. Debentures, etc. The actual debentures should be compared with the Bursar's list and entered in the new books at par. The Upper Canada College debentures, now deposited with the bank as the property of that body, should be transferred to the University. * Throughout the report the " University of Toronto and University College " are referred to as the " University." lar for nach ointej •oport, '('lIlHIlt elusion are The Ordor-in Oouncil orderinu the entriiw rcKiirilinj{ Upper Caniitla College will cortain the necessary authority to the bank. 2, MoHTOAOKS. The mort^iijjoH are to he taken at their fac»' value. It is stated that thi-re is II contingent fund and to it should lie added any deduction ni'ide in taking over the Upper (Vuiailn Oollcge mortgages and lands Yo\i should s nd out notices to the inortga^'ors stating the pi'iicipal and interest due, in order to check the correctiu'ss of the iiursar's hooks. Interest matured but unpaid should be treated according to the practice of well numaged loan companies. Hereafter the FJ )ard of Trustees will have an investigation made as lo the value of th(( |)n)|)erties mortg vged as security. The black list referred to in our report shouM bo |irop;irod at onje. 3. Lanrs u.ndeh Lkask. The.se are to be valued at the capital repie.umted by the rentals, on the basis of nioni-y being worth five per cent, per annum. This rule cannot be applied t-) the educitional in -.titutions, and th-i pr>perty leased to them should be valued as follows ; Victoria College land $ 1 00 Observatory land 1 00 VVyoliHe College land 2,600 00 School of Science land 1 00 It has been agreed that the rental for the School of Science shall be hxed by arbitration and when that is done an entry should be made adjusting this valuation. 4. Lands Solu. Purchase Money in Course of Payment. The mortgages or contracts are to be taken at face value. Hereafter an examination iuuO the actual value of these contracts will be made under instructions of the Board of Trustees. 5. Property held for Sale or Lease. Queen'n Park Property, Herewith we hand you a memorandum by Messrs. H. J. & W. A. Brown showing areas of land in Queen's Park. We also ' ^nd you a letttr from the Bursar giving the boundaries and the .'^um of money )ffered by for part of the Queen's Park property. A calculat jn attached to Messrs. Brown's memorandum shows that .\Ir. 's offer was about 38 cents per superficial foot. We desire this valuation to be appli'd to the property No. 1 [1,213,720 sup. ft.] and No. 2 [200,790 sup. ft.] This covew all the Queen's Park property held for sale or lease except the College street or Irving Walker lot. This we desire you to value at the estimate made for the Board of Trustees by Mr. WadsArorth, given in the Bursar's letter. Upper CanaiJa College Block. This is to be vilueJ on th ) bisi^ of the offer referred to in the Bur.sar's letter. Othfr Propurli'i'n. Th«) few ri'iiiaiiiiiiK propprtiim hi-ld for gaU' or Iwhho wh uiulHrhtand to Iw unimportant and these may lie vnlunl ut the hursar'H cHtiniate. Part of tho propertv | Iota T).'!, 50, •)•"< ami 72 | for wliioli Mr. oirerod ii h'axi'hoi.l and will, of course, fall under No. •\. AtU'T arriving at tho value of property No. 1 I 1,21!J 720 hup. ft,] it will bn necoHHary to (leduct the amount lor which lots Noi. 10, 11, '2'>\, 'JO, 27 and 2« were hoM, the uiortgageM or ctntracta for which fall under No. 1. 6. Univrhsity Land and IIlmldinhh. The number of aupnrticinl fe«t contained in the block of I in i rcHiirved for Univeraitv piirp-iHea in given in the mHuioranduin of H. J it \V. A. Urown, property No. '^ [l,.'U'),92l) suj). ft ]. \Vd desire this also to I)m valued at 38 cents per superticial foot. Tho buildings are to be taken at the Architeci's valuition. This will be easily ancertained in tho case of the l!ioloj{ieal and Library buildings, but the Main building presents some difficultie.s A recent valuation by Mr. Dick seemed too high to tho Trustees. Consult Dr. Hoskin as to thi:i. 7. UnIVKRSITY LlliKAKY BooKS. An official letter from Mr. Birwick or tho Librarian should bn obtained giving tho value. Perhaps the last letier to the Board of Trustees giving value for insurance purposes will bs sullioient 8. Univeksity Appakatus and Fuknmturk Account. The apparat 18 of the Univerbity represents a large outlay and doubtless can only bo valued by consulting the various professors. This should be done but any delay in olttaining the information need not interfere with the early opening of the books. 9. Insuuanck. We desire you to make a report as to th^ sulH Money or otherwise of the insurance now carried on all the University properties. 10. Rbtirkv : T Fund. We expect you to see that the sepirate ledger or other book, showing the amount of the interest of each professor or other officer in the Retireineat Fund, is properly opened and carried on hereafter. 11. Audit. You are in your report to suggest a complete system of audit. 12. Endowment Account. The capital arising from the various assets to be valued as heretofore mentioned, due allowance being made for all other assets and liabilities, will constitute the Endowment Fund of the University. It will be well to con- lider, in it would as followi •idpr, in making tho fiscal Htatement lit tho 30th Junfl in oacli year, whothnr it would not bo woll to dividn tim assets roprostititing this KaJowiiiont fund as follows : Kndowmfint Fund. 1. Investrd in huiidings, apparatus, land, otc, nocossary for UnivHrsity purposes. 2. AwHcts producing rovenuo. 3. AsHots other than No. 1 not producing r -vonuo, 13. Statrmknt of C'ahu Balances. Wff also hand you the chhIi balances as at 30t.h June lant. The accounts do not in any case seem to rotjuiro instructions from thi' Ooininitt()«?. We hope that you will bo able to undtn the basis of offers made to you and declined. That for the lands in Queen's Park w.is equal to cost and six and one-half ptr cent, per annum with yearly rests, leaving out of consideration charges for maintenance and cost of nn,nageinent. The latter is an important omission since it appears that the aggregate of th" yearly outlay for management to the end of the year preceding the opening of the University exceeded the capital actually invested in the land. Leased Lands. These have been valued at the capitalized rentals upon a five percent basis, 80 that the values are rather those of the date at which each lease was executed than of 30th June last. It is evident that very different values are thus given to lands iniiix diately adjacent to ea( h other, but in the case of renewabb leases the method provides for periodic adjustiuents. The leases in Queen's Park (44 in number) bear dites running from 15th September, 1862, to Ist July, 1886. The earlier 23 leases having Ist July, 1872, as a mean date yield five per cent, interest upon an amount equal to $4,88'J per acre, whilst after crediting all earnings the land has cost $6,700 per acre. The later 21 leases having Ist July, 1885, as a mean date yield five per cent, interest upon $9,008 per acre, but the shorter period of the higher rentnis leaves the cost $11,830 per acre. In other words, $100 in rentals from Ist July, 1872, has proved as advantageous as $185 in rentals beginning thirteen years later. As already shown the land leased to the City of Toronto yields somewhat more than one per cent, upon its cost price. To two parcels of land, some three and one-third acres in all, occupied by the Crown for other purposes, a nominal value has been given in the meantime. Investmbnts. The amounts shown have been actuarinlly determined. The face amount of debentures is given ; some were bought above and others b-ilow par ; tlie ac^^ual cost has been somewhat less than the total shown. The date to which interest on loans was paid ha^ been asceitained and each m 'rigagor has been notified as tv) the principil moneys due by him and as to the position of his interest aco unt. Univeksity College. No distinction has been attempted as between the University and Univer- sity College in the Capital Accounts. The original grant to these two corpora- tions was one common to both. It may be tint some of the bequests or gifts now forming part of the General Endowments were intended for one or other of the instiiuii >ns. In the fmur.', any additions of a limited r:ature will of course b^' sep irately shovn, but it; svould be dithjultacoirttely to adjust pist additions of this kind. 12 Library books and Univers- ity equip- ment. Api)ointment of Mr. Cross as Auditor for the Bo.ird. The liursar lias not included in hib yearly returns receipts and expendi- tures of Residence moneys. The Act seems to recjuire the inclusion in his returns of all monetary tranKactions. The Residence has been self-sustaining, and the ortioer who has been held personally responsible for the production of this result has reported to the College Council. The system has worked well for many years. Insuranck. The Library building is uninsured ; the other buildings are insured to the extent of nearly sixty per cent, of the amount at which they are valued in the balance sheet herewith submitted. The contents of tho Library are cove-ed to the extent of ninety-four per cent, of the present value — a very high ratio.* In the absence of information as to the value of he equipm )nt of tho other buildintjs and its disposition, 1 am unable to report to you as to whether $30,800 of total insurance upon these assets is sufficient, or if the said amount is properly apportioned or not. Audit. Such a complete system of audit as is contemplated in Mr. Walker's letter of 17th August, must rest upon past regulations as to payuients and the authoiity therefor and sucii future requirements as you may make. The yearly appropriations limit the amount whiuh any department cvn expend and a large proportion of each depirtnif^nt's r'!(iuireinf)nt3 is in tlio nature of tix'ul chargf s. Payments by way of invest uent or re-irivostmeat will iiave the authority of a minute of the Hoard. The ai dit of receipts will be assi.sted by the sy.stein now introduoed, the accounts of lands and inves ments being in a sense self-checking. The fees and other receipts not directly paid to the Bursar have no such check and the audit of them will fall to l)e made in connection with the departmental rolls and the rolls olt University College. W. H. CROSS. Toronto, 12th October, 1892. This report was accompanied by the balance sheet of 30th June, 1892 subsequently approved by th' Board, and which your Committee believe to be the first approximately correct balance sheet in the history of the L^niver- sity which dibclosed its financial condition. It was, however, incomplete in some respects for want of ir.fonnation and is not included in this report. The books in the Library, owing to the systematic cataloguing since the fire, h:id been valued, but the equipment in five departments of the University had yet to l)e valued. With the approval of tho Biard this information was asked from the Professors in charge of the departments on 26th January, 1893. On the 6th April, 1893, Mr. W. H. Cross, F.C. .\, was appointed as Auditor for the Board of Trustees, and the book-keeping being now carrit^d on under an ( ntirely fatisfactory system, the main object for which your Com- mittee was a|ipointed, was accomplished. It was, however, thought best by the Board that the final report of your Committee should accompany the balance sheet taken from the books at the end of the first year under the new system. * NoTK. — The Library building was at this time in the hands of the contractor. It is now insured. The unusually high insurance on the books was etfected when they were stored in a building not of tire-proof construction. They h Board a st balance sh audited, a letter of in Mr. Cross, balance sh( In the University books, frai indispensa service of that the s was that v opened by the Bursal affairs we these boob book keep transact h Trustees defects m« tell that t could tell general pt ascertain i the sale o and if tr " Capital two transi accounts c Befort followed i the comp Report on had becor more nee Universit commerci machiner; of dollars Your such an : Universit etatemenl been earc serve the the one h make the Rhall be c keeping ] If the is conside menta an been sold would be keeping 1 ts and expendi- inclusion in his 1 self-sustaining, le production of has worked well e insured to the re valued in the •y are cove-ed to ■y high ratio.* mt of the other aa to whether the said amount Walker's letter nnents and the ay make. The cin expend and nature of (I'CihI t will have the introdujed, the r have no such 3ction with the H. CROSS. 0th June, 1892 littee believe to of the Uaiver- ', incomplete in lis report. ;uing since the ■ the University iformation was 26th January, 3 appointed as now i;irried on lich your Oom- lought he.st by accompany the undt-r the new contractor. It is whea they were 13 'Ihey have, therefore, great pleasure in now being able to lay before the Board a statement of the financial position of the University in the foim of a balance sheet with appendices, the relative accounts having been properly audited, and the assets and liabilities as clearly set forth as possible. The letter of instruction from Mr. Walker to Mr. ( ross and the first report of Mr. Cross, together with the foot notes to the appendices accompanying the balance sheet, will, they hope, be sufficient to explain matters of detail. In the Report of the Commissioners of Inquiry into the affairs of the University, instituted in 1848, it is stated that " an entire new set of account books, framed upon correct commercial principles, was considered by them as indispensable, alike for the purposes of their investigation and ihe future service ot the University." Your Committee were informed by the Bursar that the system of book keeping in use until the present change came about was that which had been in use before the inquiry of 1848, the set of books opened by the accountants '■f the Commission not having been continued by the Bursar. It, perhaps, answered the purposes of the University when its affairs were of less scope than at present, hut no balance sheet taken from these books pretended to disclose the financial position of the University, The book keeping was simply the machinery necessary to enable the Bursar to transact his share of the business of the University, not to enable him or the Trustees to readily and accurately ascertain its financial condition. The defects may be illustrated by stating that no one from the balance sheet could tell that the University owned any land, buildings or equipments ; no one could tell what its interest-earning investments were. Its liabilities to the general public and to special funds were correctly disclosed, but no one could ascertain the extent of its Endowment. If a payment was received, say from the sale of land, it was credited to an account called " Capital Account," and if this amount was loaned out on mortgage it was debited to this " Capital Account," so that, while by searching the books the record of the two transactions could be found, the balance sheet disclosed no change in the accounts of the University. Before the fire, however, and the building schemes which precedeu and followed it ; the consequent depreciation of the interest earning assets ; and the complications which made necessary the Committee who prepared the Report on Revenues and Requirements, dated April 13th, 1891 ; the old system had become quite inadequate. It seemed to your Committee, therefore, even more necessary than it was forty years ago, that the book keeping of the University, however it might differ in detail, should be "framed upon correct commercial principles," and their labors have been direcced to providing the machinery necessary for an institution with assets valued at several millions of dollars. Your Committee recognize that there is not a complete analogy between such an institution as the University and a commercial corporation. The University has no shareholders who would expect to receive annually a statement showing that their capit 1 was unimpaired and that a dividend had been earned. But the Trustees are required by the University Act to pre- serve the Endowment from bring impaired by expenditures for maintenance on the one hand ; while on the other, the just claims for expenditure in order to make the work of the University efficient, demand that the sources of income shall be cleai-iy understood, and that income shall not by imperfect book- keeping pass to the Endowment when imperatively needed for maintenance. If the management of the Endowment for the purpose of earning an income is considered it will be seen that the University has interest-bearing invest- ments amounting to about 81,400,000 ; while if the unproductive lands had been sold during the recent period of high prices, the sum to be administered would be about $2,500,000. Clearly the Board cannot afford to have book- keeping less efficient than that of our loan companies. Balance Shee6 of 30th June, 189.3. Defects of the old system of book-keeping. The extent and nature of theafTairaof theUniTersity render it necessary to adopt a more modern system of book-keeping. u Valuation of the AnHHtH of the Univer- nity, Buildinfirn and tviuipment, Unproductive lauds. Leased landn. Victoria University. Observatory. Queen's Park and the Avenues. Claim for cdtnpensation for use of site of Parliament Buildings. Park Hospital lands. Lands leased for re- sidential and business pur- poses. In valuing the as.sots of the Univpraity your Committee have not found it BHsy or Hclvi.siTble to follow entirely the custom nf a commercial corporation havinjrcapi'al stock. The valuations of l)iiildin?8 and equipment are rather calculated to show what has been invested therein than to indicate the actual value. The valuation.'* of the unproductive lands are b^sed, for all but a few small proporties, upon offers made for properties which the Board of Trustee.s were unwilling to recommend the Government to acc-ipt. These lands now valued at SI, 029,677 are referred to in the Report of the Ooramiitee on Revenues und Requirements, p 3 as worth '' from one and a quarter to one and a half millions of dollars." Your Committee recognizing that in the present condition of the real estate market any valuation is arbitrary, have selected a basis which they feel is directly warranted by the action of the Board of Trustees. The valuations most open to criticism are those placed upon the leased lands. The lands leased to Victoria University, and to the Dominion Government for nn Observatory, are entered at a nominal value, because as long as the present relations between the University and the respective less '.ea exist, these lands have no value to the University, but under certain contingencies, probably remote, they would again become important assets. The forty-eight acres or thereabout, leased to the city for 999 years from 1st January, 1859, are entered at $120,000 which is the capital represented, on the basis of money being worth 5% per annum, by the SG,000 per annum paid by the city for the use of this land a; a park. Mr. Cross has shown that this forty eight acres cost the University at 30th June, 1892, taking the original cost sixty-three years before and adding six per cent, interest, as much as §!582,768. The valuation of the unleased lands which are less favorably situated shows that the increment during this period has exceeded six per cent, per annum, in fact approaches seven ptr cent. It may be urged that inasmuch as the object which induced the authorities of the University to give up control of this superb property was that it might be u.=ed partly as a park and partly for avenues, the valuation is not sound, if by any breach of the agreement the property is used partly for another purpose, and a claim for compensation thus exists. In answer to this your Committee can only say that they have not overlooked the claim upon the Province of Ontario in respect to ohe land under the Parliament Buildings, which is referred to in the Report of the Committee on Revenues and Requirements, 13th April, 1891, p. 3., but they are unable to suggest a value to be put on this claim. Your Committee are also in doubt as to the true method of valuing the property for which a lease was executed to the Park Hospital Trustees As the land on which the old Wycliffe College building stands is nominally subject to the payment of the same ground rent as was i)aid by Wycliffe College during its tenancy, that parcel is valued at $2,500, although as a matter of fact no rent has been paid. The remainder of the property leased to the Park Hospital Trustees, being lots 8 and 9 north of College Avenue, has been valued along with the oti.er unproductive lands of the University. As it is, however, encumbered with a lease which for the moment makes it impossible either to sell or lease it for a money rental, the valuation is open to question. There remain the lands in Queen's Park and in the business portion of Toronto leased for residential and business purposes, and Wycliffe College. These are valued, as in the case of the land leased to ihe city, at the capital represent', d by the annual rental, money being considered worth five per cent, per annum. If the assets of the University were regarded in the same light as those of a commercial company this system of valuing would be quite unsound, because these leases are subject to readjustment of rent at the 15 'e not found it al corporation ent are rather ;ate the actual ut a few small Trustcpa were Is now valued Revenues und ic and a half isent condition elected a basis 1 of Trustees, on the leased n Government s long as the es exist, these contingencies, 99 years from 1 lepresented, )0 |)er annum IS has shown 92, taking the 1. interest, as hich are less has exceeded may be urged he University used partly as any breach of !, and a claim e can only say if Ontario in referred to in h April, 1891, aim. )f valuing the frustees As is nominally by Wycliffe Ithough as a operty leased lege Avenue, e University, ent makes it ion is open to 3s portion of liffe College, at the capital five per cent. le same light uld be quite rent at the expiration of fixed periods, and it is abundantly clear that these properties, renting in the aggregate for $11,800, are worth very much more than $236,- 080. An illustration may be serviceable. A property having a frontage of about 107 feet and a depth of 264 feet is rented for $100 per annum for forty two years from 1863. 'J'hus this property is valued at 82,000. During the recent activity in real estate its value would have been more accurately represented by about $20,000 wiih some deduction perhaps for the remainder of the present term of leasehold. It is desirable that the balance sheet should give a reasonably accurate idea of the wealth of the University and a very large amount of wealth is certainly hidden in the item of Leased Lands. But yourOommittee were not authorized to incur the considenible expense of valuing all these properties ; and, as long as the University owns so much unproductive land, it seems desirable not to increase the disparity between assets and income, already very large. The nominal rental paid by Wycliffe College being $12') per annum that property is valued at $2,500. No attempt has been made to value the right of the University to permit owners of certain properties abutting on one or the other of the two avenues leased by the University to the city, lo have the privilege of entry between their properties and the adjoining avenue. As the Board know, an important sura was added to the Endowment this year from that source, and large pay- ments from treMpassers as well as from others who have not vet sought access to the avenues may be expected in the near future. The Board will be able to understand from the foregoing some of the difficulties your Committee have had to deal with in attempting to value the assets of the University, and, in order to ensure as much accuracy as possible in future, they suggest : 1st. That the books, apparatus, furniture and other movable property of the University, be re-valued at intervals of five years, or at any lesser interval as determined by the Board. 2nd. That the site lands reserved for University purposes and the build- ings thereon, the leased and unproductive lands and all other fixed properties, be re-valued at intervals of ten years, or at any lesser interval aa determined by the Board. During the years 1884, 1885, 1886, 1888, 1889, 1890 and 1892 various sums aggregating $25,000 were reserved " from revenues in order to shield the Endowments from impairment in case of loss upon investments." No sums were reserved in the years 1887, 1891 and 1893. When the investments for account of Upper Canada College were taken over an allowance for losses was made amounting to $3,789.73, miking the total credits to Contingent Fund $28,789.73. At, the close of the last (isca! year the balance of the fund amounted to $21,898.56, losses amounting to $6,891.17 having been charged to the account. Your Committee are quite in accord with the statement made in the Report of the Committee on Revenues and Requirements, 13th April, 1891, p. 4, as follows : " Prudence requires the retention of a yearly sum for the formation of a •' contingent fund to meet possible Icsst s on investments. To this purpose ''$20,000 has already been appropriated in the course of former years; and " $5,000 a year should, if possible, be appropriated for some years to come, "subject to increase as the mortgage investments increase, until a full " guaranty fund is accumulated." The Board ha^-e before them the report of the separate committee who examined the interest-bearing investments of the University, and from this report it is quite clear that the University has not as yet nearly accumulated the " full guaranty " contemplated in the report referred to above — such a guaranty, for instance, as would cover the contingency of a complete collapse in real estate values. It is also evident that the losses made since the Con- Wycliffe Col- lege. Frontage rights on Avenues. Periodical revaluation of the Assets of the Univer- sity. Investments, Contingent Fund. 16 tingent Fund was opnned larg(!ly exceed the sum shown above. This is partly due to inteif'st having been left out of account because of the imperfect system of book- keeping. The further building up of this fund will depend upon the condition of the revenues, a matter beyond the control of the Hoard of Trustees. In years of redundant revenues liberal appropriations should be made, but in years when the revenues can only with the greatest ditficulty be made t'* meet the expenditures, the Board clearly cannot do more than make appropriations to covrtr the losses which are reasonably certain. Your C tmraittee regret that they have been unable to place a value upon the lease o^ the School of Practical Science, the rental not having yet been arranged by the Board of Trustees and the Minister of Education ; and upon Psyoholoffioal the apparatus of the Psychological Department, owing to the resignation of Professor Baldwin, whose successor has not yet been appiiated. School of Practical Science, APPENDIX 1. Balance Sheet, June SOth, 1893. ^l Funds. 2. General Endowments Fund $3,452,681 68 3 Specific Endowment Funds 66,557 38 4. Trust Funds 67,952 75 5. Revenue Reservations 62,021 29 $3,649,213 10 Liabilities. «. Upper Canada College Endowment Fund $100,000 00 7. Canadian Biak of Commerce 107,660 89 $207,660 89 $3,856,873 99 8. Site Lands $475,361 40 8. Buildings 711,647 07 8. Furniture 5 99,3 qq 8. Equipment 135,961 93 $1,328,966 40 9. Unproductive Lands $1 029 677 72 10. Leased Lands 37O 591 77 11. Investments 1,125,907 48 $2,526,176 97 12. Fees past due ■, -^q g. $3,856,873 99 This is partly Hh imperfect will depend of the Hoard ons ahonlil he ; difficulty be more than tain. a value upon ng yet been n ; and upon esignation of 3,649,213 10 $207,660 89 3,856,873 99 1,328,966 40 2,526,176 97 1,730 62 },856,873 99 17 APPENDIX 2. Gbneral Endowments Fund. Amount at credit, June 30th, 1892 03,353,818 70 Additions, clerical in their nature, adjusting the then existing accounts . . 1,717 37 03,355,531 07 Adultion to capitalized value of Latham property, upon renewal of lease 020,000 00 Amount received for frontage license, Yonge street avenue. ... 1,160 00 Balance of subscriptions to Library Restoration Fund 6 09 Amount transferred from Library Insurance Fund 1,313 50 Amount transferred from Main Building Restoration Fund .... 26,31 1 25 Interest on last three items 2,886 00 Subscriptions to Gymnasium Fund 2,402 23 Gymnasium fees paid by students 2,158 77 Interest on last two items 208 29 Addition to valuation as shown by Library Account Catalogue during year 9,529 48 Addition to valuation of Chemical Laboratory Equipment. . . . 4.999 00 Addition to valuation of Museum and Biological Department Equipment 14,063 00 Addition to valuation of Mathematical Depa-tment Equipment. 379 00 Addition to valuation of Physical Department Equipment.... 11,734 00 Additions— years 1892-93 $97,150 61 Amount at credit, 30th June, 1893 $3,452,681 68 NoTK. —General Endowments Fund. The history of this fund ia very clearly sat forth in Mr. Cross report of 12th October. 1892, under the heading "General Endowments Fund," and the four sub-heading-i. The additions to the fund during the year endint; 30th June, 1893, may require a few words of explana- tion. The first item arose from the renewal of a le ise, the rental beinii advanced $1,000 per annum, which under the plan adopted represents an addition to capital of $20,000. The second represents a payment made for the license to enter property facing on one of the avenues owned by the University and leased to the city. The next seven items are additions to the Endowment arising from expenditures on University property which were paid out of the various trust funds mentioned. Th? last five items result from the valuation of the Library Books and the Equipment of the v.'vrious departments referred to in the report. B. E. W, 2 (U.A.) 18 APPENDIX 3. Specific Esdowmbnt Funds, SOrn Junk. 1893. Schol(trshi/>8 : Blake Matriculation 1815,453 21 niake Political Science 3,750 00 Moss Classics 2,000 00 Daniel Wilson, Natural Science 2,000 00 William Mulock, Classics and Mathematics 2,000 00 Mary Mulock, Classics 2,586 30 George Brown, Modern Languages 1,121 08 do Medical Science 5,389 3G W. Ramsay, Political Economy 1,009 42 Julius Rossin, German 1,000 00 Bankers, Political Science 1,200 00 John Macdonald, Philosophy 2,030 00 Physics 2,350 00 Prince of Wales Prize 950 00 Mackenzie Memorial (application unselected) 16,589 28 A. T. Fulton do 3,105 00 {)ther Fimds : Starr Bequest (Farm in Caradoc Township and earnings) 3,885 96 Lyle Medal 137 80 Retire Reside liibrar Librar Librar Librar Muse 11 Geolo| Gymn Bactei Bioloj Medi( Dani( Vice- $66,557 38 Note. —Apart from the Starr farm the interest allowed on the above accounts, in order to provide the Scholarships and Medals, is at the rate of six per cent, per annum with one exception, which is at a higher fate. The average return from the investments of the University is now somewhat less than six per cent, per annum. B. E. W. Acer Coni Cha Be VI 19 M 5,453 21 3,7/10 00 2,000 00 2,000 00 2,000 00 3,586 30 1,121 08 5,389 36 1,009 42 1,000 00 1,200 00 2,030 00 2,350 00 950 00 16,589 25 3,105 00 3,885 96 137 80 66,557 38 provide the I at a hifi^her ix per cent. 13. E. W. . APPENDIX 4. Trust Funds, 30tii Junk, 1893. Retircnu'nt Fund 66,69131 Kt'sideiicH Extension 736 liJ Library Insurance Fund $47,550 89 Library Restoration Books 3,648 79 Library Special German Account 68 68 Library Special French Account ■ 45 00 51,313 36 Museum Restorntion 3,143 71 Geological Museum 81 16 Gymnasium Outfit 210 00 Bacteriological Laboratory .. 31 71 Biological Laboratory, students' supply 82 12 Medical Faculty, Surpluf Account 84,1 81 91 do Anatomical 709 63 do Pathological 115 01 do Therapeutical 6191 do Sanitary Science 55 00 5,123 46 Daniel Wilson Memorial 424 28 Vice-Ohanci Uor Special Account 115 52 $67,952 75 APPENDIX 5a. Revenue Rbse". (Nations. Accrued Revenues : Unpaid on 30th June, 1892, as shown in balance sheet of that date. . $36,739 81 Contingent Fund ; Amount of fund on 30th June, 1892 $24,620 00 Charges, 1892-3 : Loss on Bidwell sale $2,000 00 do Kirkland sale 500 00 Law costs 221 44 2,721 44 21,898 66 Revenue Account, 1892-S : Excess of Receipts over Expenditures 3,382 92 $62,021 29 APPENDIX 5b. , Revenue, 1892-3. Totoli of workings showa in detailed statements, Appropriaiioru. Original, against current revenue . $11 0,049 69 Suppleinnntary, do 1 4,769 73 Original, against abnormal receipts 6,982 86 $130,792 17 Contra. Estimated Normal Revenue (see page four of printed report). $117,656 24 Excess in actual results 3,81 1 27 Unused appropriations : 1892-3 Current Revenue $2,126 26 Against Abnormal Revenue. 1,208 01 3,333 27 Balance of Abnormal Receipt Account, June 30tb, 1893 6,999 16 Balance of Revenue, 1891-92 Account 2,476 15 $134,176 09 Amount of surplus carried to Revenue Reservations $3,382 92 APPENDIX do. Rkvbnub, 189 2-3. Receipts, Egtimate. Aotual Page 4 of Report. Revenue. Interest on purchase moneys : Devonshire Place Sales 1,002 40 $824 11 Old Sales '938 56 1,10192 Interest on loans 37,880 33 39,497 02 Interest on debentures 20,052 87 19,050 53 nts other than Park 3,493 00 5,'l08 72 Rents University Park 8,300 00 8,413 13 Allowance by Medical Faculty : Rent and Maintenance Biological building ... ... 1,900 00 1 900 00 Fees— University and Collpgo 35,175 00 35,612 89 City of Toronto, payment 6,000 00 6,000 00 Transfer Fees 50 00 18 50 Earnings of B ink Stock 24 50 30 62 Interest on advance to U. C. College 2,679 58 2 679 58 Sundry Earnings Land I'lOO 49 $117,556 24 $121,367 61 21 30,792 17 J4,176 09 13,382 92 Actual Revenue. 1824 11 ,101 92 ,497 02 ,060 63 ,108 72 ,413 13 900 00 612 89 000 00 18 60 30 62 679 68 100 49 APPKNDIX 6d. IlBVRNUR, 189 2-3. £oil)endUure». (Vif{in»l Hupplenieniary Appruprialiiinn. Appropriationi. UiuiHcd. Salaries $81,782 89 $037 47 Pensioris 1,144 00 24 00 Burstir's Ollioe 900 00 401 98 Law Costa 700 00 8 41 General InciilHiitals 300 00 206 84 Examiners 6,204 70 1,708 43 Library Current Account 2,600 00 100 21 Library Muildinjif, Maintenance i»'2r» 00 24 99 Tolophonoa 1 45 00 6 57 Insurances 600 00 102 05 Main Building Maintenance 4,200 00 556 14 " " UoRistrar's Office 75 00 176 00 Grounds 2,200 00 Chemical Dopartment Maintenance 608 00 Biological Building Maintenance 1,670 00 3 03 Biological Department... 426 00 Biological Students' Hupply Fund 762 00 Physical Department Maintenance 325 00 Mineralogiual and Geological Maintenance 200 00 Psychological Department Maintenance 10 00 Stationery, University 900 00 340 10 Printing. " 2,600 00 270 44 Advertising ' 200 00 27 22 Incidentals " 150 00 Stationery, University College 126 00 Printing, " " 100 00 64 00 Advertising, " " 100 00 Incidentals " " 100 00 Political Science Department 26 00 Classical Department 37 00 French Department 31 00 German Department 36 00 Italian and Spanish Department 36 00 Oriental Department 85 00 Interest on Special Funds ... 5,557 07 Interest on Bank Balances 5,046 33 Convocation Expenses 62 00 Special advertising 40 50 Senate Elections 200 00 Original Appropriations $1 10,049 69 Supplementary " Appropriations Unused 771 71 54 80 79 73 46 20 82 85 fc3 6 37 64 05 31 00 54 63 19 60 24 89 12 01 36 00 3 01 S14,759 73 $2,125 S6 ^07 51 22 APPENDIX 56. Add Abnormal Rbceipts. Amount at credit, 30th Juae, 1892 «6,999 16 Balance at credit of Revenue Account 30th June, 1892, transferred to this Account $2,475 lo Balances unused of Appropriations as under transferred to this Account : Main Building, Furniture $227 71 Chentiical Liboraiory, Apparatus 408 51 Physiological Department 181 76 Mathematical do 375 15 English do 14 88 1,208 01 3,683 16 $10,682 32 Deduct Apinopriations made as under: Library, current account $1,039 88 Main Building, Registrar's Office 50 00 " Furnishings 887 25 Grounds 322 12 Chemical Laboratory, Apparatus 408 51 Biological Building, Maintenance 165 GO " Department 470 00 Physiological Department, Apparatus 800 00 Mineralogical Department, Insti > .ents 350 00 Philosophical Department, Maintenance 585 93 " Laboratory, Instruments 180 79 Mathematical Department 704 37 English Department 19 00 5,982 85 Amount at credit 30th June, 1893 $1,699 47 Carritd back to Revenue Account $4,699 47 J6,999 16 3,683 16 .0,682 32 23 APPENDIX 8a. Site Lands, Building and Contents. — June SOth, 1893. Area of land in use by, and set apart for use of, University, 1,302,300 square feet $475 361 40 Buildings. Main Building and Residence $450,000 00 Museum Building 73,085 42 Biological Building 56,659 88 Libniry 104,245 93 Chemical Laboratory 182 00 Gymnasium 26,472 84 Y. M. 0. A. Hall 1 00 South Lodge 1,000 00 711,647 07 Library, total valuation as appearing from Accession Catalogue June 30th, 1893 $103,331 93 Museum and Biological Apparatus 14,064 00 Chemical Apparatus 5,000 00 Mineralogical and Geological Apparatus 1,450 00 Physical Apparatus 11,735 00 Psychological Apparatus 1 00 Mathematical Apparatus 380 00 135,961 93 Main Building Furniture 4,000 00 Residence Furniture 1,99C 00 5,996 00 $1,328,966 40 ,982 8,1 ,699 47 ,699 47 APPENDIX 86. Insurance. Atsets. Valuation. Policies. Main Building and Residence $450,000 00 $256,000 00 Biological Building and Museum 129,745 30 95,866 67 Library Building and Fixtures 104,245 93 61,666 66 Gymnasium 26,472 84 16,666 67 Library (books, etc) 103,331 93 77,200 00 Main Building, Furniture 4,000 00 1,500 00 Residence, Furniture 1,996 00 1,500 00 Biological Library and Museum 14,064 00 5,800 00 Departmental, Apparatus 18,566 00 17,000 00 $852,422 00 $533,200 00 Buildinga on U. C. Block not separately va'ued 21,500 00 Total of Policies $554,700 00 2j APPENDIX 9. Unproductive Lands. Unsold portion of Hoskin Avenue and Devonshire Place Survey $156,694 11 Uneurveyed block north and east of above, 596,322 square feet 217,657 53 Six registered lots, Noa. 51, 52, 54, 69, 70 and 71, west of North Drive. 91,273 50 Unaurveyed block eaat of North Drive and north of Czar Street, 200,790 square feet 90,351 00 Five registered lots, Noa. 3, 6, 8, 9 and 22, North of College Avenue . . 70,029 00 Upper Canada College block, between King and Adelaide Streets 392,679 58 Surveyed lots in Town of Port Hope 9,090 00 Surveyed lota near City of Belleville 1,903 00 ?1, 029, 677 72 APPENDIX 10. Leased Lands. Victoria College, 220,627 square feet $ 1 00 Wyclift'e College, 43,560 square feet 2,500 00 48 acres leased to the City of Toronto, valued at the rental capitalized upon a 5 per cent, basis 120,000 00 1,163,875 square feet Park lands, valued aa above 166,480 00 102,942 square feet, leased for an Observatory Site of School of Scisnce, area needed not yet ascertained nor rent fixed Business properties in City of Toronto Farm in Caradoc Township 1 00 1 00 69,600 00 2,000 00 Park Ground Rents : Past due $360,583 00 $1,185 41 Ac;rued but not yet due 4 175 qq City of Toionto payment. Business properties— ground rents : Past due Accrued but not yet due 1,500 00 300 2,848 00 36 10,008 77 - $370,591 77 Ari$ I 56,694 11 217,657 53 91,273 50 90,351 00 70,029 00 J92,679 58 9,090 00 1,903 00 '29,677 72 i0,583 00 3,008 77 ),591 77 APPENDIX 11. Investments, 30th Junk, 1893. Debentures and Municipal Bondj 8361,738 58 Interest thereon past due 47 66 Accrued interest not yet due 9,301 95 Loans secured by first mortgages on real property $711,390 01 Advanced as premiums o£ Insurance 155 48 Interest past due 5,257 82 Accrued interest not yet due 14,402 61 Unpaid purchase money on lands sold $31,843 39 Interest past due 261 05 Accrued interest not yet due 1,508 93 $361,088 1» $731,205 92 APPENDIX 12a. $33,613 37 $1,125,907 48 Medical Faculty: Fees, 1892-3. 1891-2. Collections $1,700 00 1892-3. Collections 18,893 00 1892-3. Not collected 2,785 00 Less Arts Instruction portion — 65 tirat year $910 00 74 second year 1,110 00 $23,378 00 2,020 00 Arts : 1892-3. Collections $8,440 00 1892 3. " 1,990 00 1892-3. Not collected 40 00 $21,368 00 10,470 00 285 00 3,453 75 140 00 1,154 00 Law 1892-3. Collections Medicine " Engineering, etc " Pharmacy " University College. Collections 14,685 00 Library. Collections 1,468 00 Dentistry — 1892-3. Collections $470 00 1892-3. Not collected Music : 1892-3. Collections 1892-3. Not collected .. . 20 00 Agriculture : 1890-1. Not collected 1891-2 1892-3 $61 00 25 00 $1,156 77 249 76 269 10 490 00 86 00 1,675 62 $56,265 37 Tear 1892-3 $52,158 85 Earlier 3,106 52 $55,265 37 26 ii Arts . APPENDIX 126. Fees, 1892-3. Receipts. Matriculation $210 Examination 5,54-i 1,471 18 92 59 512 148 182 27 176 Degree Ad Eundem Dispensation Honor Certiticates . . Biological supply . . . . Mineralogical supply Physical supply .... Psychological supply Chemical supply . . . . Law : Matriculation Examination Degree- 00 00 00 00 00 00 00 00 00 00 00 45 00 60 00 180 00 Medicine : Matriculation 100 00 Examination 1,495 00 Practical Examination 85 50 Degree 1,080 00 Chemical supply 402 00 Biological supply 291 Dentistry : Matriculation Examination Degree Engineering and Applied Science Music : Examination Degree , . . . . Ad Eundem Pharmacy : Matriculation Examination Practical Examination . Degree 35 00 20 00 6 00 265 00 265 00 104 00 520 JO 3,440 00 285 00 25 3,453 75 75 00 95 00 300 00 470 00 140 00 61 00 Medical Faculty : Total collections University Colh'ge : Registration 14,685 00 Library 1,468 00 1,154 00 20,593 00 16,153 CO Medical Fa Third Seconc Arti : Degre Dentistry : Degre Musir. : Degre Exain Agricultui Des;re The in enlarged, 10, of th reads as f "13. " sideratu " flactuat " to year, " the yeai Your afforded further t They ha will enal its expen with the its prese ap endi) Actual Receipts $50,749 75 3,440 00 285 00 3,453 75 470 00 140 00 61 00 1,154 00 20,593 00 27 AI^PENDIX 1-26. Actual recHi.its broua'lu forward. ,.?50J49 75 rees dccruea but not rmd. Afedical Faculty : Third year $'J,G3o 00 Second year 150 00 .$2,785 00 ArU : Degree 10 00 Dentistry : Degree 20 00 Music : Degree $20 00 Examination 5 00 25 00 Agriculture : Des{reB $269 10 1891 2 249 75 1890 1 1,156 77 1,675 63 $4,515 62 Total Fees as above $55,265 37 The in8tructioa9 originally given to your Com uittee were subsequently Knlarged in- enlarged, they being requested to take into consideration paragraph 13, page Oommittee" 10, of the Report of the Standing Committee on Finance, 1891-2, which reads as follows : " 13. In this connection the Committee suggest that it is worthy of con- " sideration whether apian should not be adopted showing in detail the " fluctuations in, and totals of, the liquid capital of the University from year " to year, and its condition at the close of each year, commencing at latest in " the year 1880 and continuing the account for the future." Your Committee have not been able to increase materially the information afforded in the Report on Revenues and Requirements, 13th April, 1891, further than to bring it down to date and make a few additions in detail. They have, however, tried to recast the figures in a form which they hope will enablH the growth of the University and the relation of its revenues to its expenditures to be understood at a glance. This statement, in conformity with the Request of the Committee on Revenues and Requirements should, iu its present or any improved form it may assume in fuiire, be made an ap endiic to the annual ba'ance sheet. Comparative statemente of Rereipta and Expenditure^ 1881 to 1893, inclusive. 16,153 00 550,749 76 28 UNIVERSITY Statement showing Income and Expenditure 1. Interest, after deducting interest paid 2. Rents, ordinary 3. " grant from city 4. Fees (not including fees reserved for use by Medical Faoulty) 5. Sundry receipts Ti)tal income NoTR.— Amount of investments in mort- gages, including mortgages on Park lands Hold Amount of investments in deben- tures Total as at 30th June each year ... 1. Salaries (exclusive of Bursar's Office), Pensions, Scholarships, Prizes, E.\- aminers' Fees 2. Maintenance, University and Univer- sity Co '.lege 3. Cost of Bursar's Office and adminis- tration of investments 4. Additions to Contingent Fund. Total expenditure NoTK. — Number of Students, Arts do do Medicine . Total number of Students 1881. 1882. $ c. Income. 1883. 1884. C] $ a. 54,952 60, 58,126 45^ 60,846 90, 60,166 88 6,316 Ui 6,592 50 6,728 71 6,246 76 Cost of salaries, etc. (item No. 1) per Student Cost of maintenance per Student Cost of instruction in Art subjects per Student Paid out of fees Paid out of revenue from endowment . . I 6,596 50 423 39 6,578 50 241 78 68.288 66 71,539 23 177,511 17 212,936 91 1885. 10,761 87 10,373 08 219 60, 330 50 61,521 08 7,324 00 11,673 96 372 56 78,557 08 77,117 21 j 80,891 59 7£4,656 61 772,740 61 972,167 78 985,677 52 232,767 98 260,298 87 749,802 61 1 751.664 61 982,570 59 1,011,963 48 409,620 86 526.947 61 936,468 47 Expenditure, 49,908 58 15.548 98 3,761 30 49,498 13 $ c. 53,394 11 15.548 98, 14,016 31; 13,172 35 ' 3,380 41 i 3,100 93 69,218 86 66,894 85: 69,667 39 347 342 320 $ c. 54,360 11 12,015 30 3,210 31 2,500 00 $ c. 53,911 87 15,412 60 4,115 04 2,500 00 72,086 72 75.939 51 322 348 347 $ c. 143 82 44 80 188 62 19 01 169 61 188 62 342, 8 c. 144 73 40 98 185 71 19 23 166 48 186 71 320 S c 166 85 41 161 208 Oil -I- 322 348 $ C.I S c. 168 82 154 91 37 31' 44 28 206 13 33 63 174 38 208 01 32 21 173 92 206 13 199 19 33 64 165 65 199 19 1886. 336 336 DIVERSITY Expenditure 1885. c. 88 « c. 61,521 08 7,324 00 11,673 96 372 56 2l| 80,891 59 409,520 86 626.947 61 936,468 47 c. S c. 11 53,911 87 W 15,412 60 1 4,115 04 2,500 00 75.939 61 348 348 S c. 154 91 44 28 199 19 33 54 165 65 199 19 29 OF TORONTO. for thirteen years, ending 30th June, 1893. Income. 1886. 1887. 1888. 1889. 1890. 1891. 1892. 1893. $ c. 8 c. $ c. « c. $ 0. $ c. S c. $ c. 66,609 29 59,404 01 58.336 42 64,695 66 61,068 82 62,576 72 61,040 91 52,550 76 26,213 49 15,421 86 6,998 36 6,000 00 7,070 30 8,493 67 10,672 33 10,733 54 10,662 12 11,761 54 11,673 57 6,000 00 6,000 00 6,000 00 1,600 00 11,965 04 13,431 00 12,503 63 12,764 21 17,615 84 22,274 69 23,006 26 36,612 89 244 58 370 41 220 03 365 50 319 71 254 16 290 14 1,179 61 74,889 21 81,699 09 81,702 41 88,558 91 95,566 49 102,867 30 102,009 87 110,765 11 144,476 96 551,211 79 676,308 10 680,496 36 688,841 43 662,101 64 631,606 16 677,632 41 744,468 01 467,353 35 442,315 19 441,068 72 430,121 93 386,812 38 .392,965 24 372,156 27 361,738 68 1,018.565 14 1,017,623 2G 1,021,565 07 1,018,963 36 947,913 92 1,034,471 39 1,049,788 63 1,096,196 69 Expenditure. $ c. S c. $ c. 8 c. $ ". $ c. $ c. 9 c. 64,531 43 53,574 14 57,664 95 62,075 15 63,740 62 71,012 80 78,562 64 86,978 65 16,756 38 13,057 91 17,036 06 18,461 43 15,961 05 14,204 30 23,756 59 24,118 64 4,413 50 3,617 77 3,683 11 4,575 04 5,053 50 3,115 38 3,979 20 5,759 41 5,000 00 79,701 31 2.500 00 2 500 00 5,000 00 89,766 17 K 000 00 70,14!) 82 80,884 12 87,611 62 88,332 48 111,288 43 116,856 60 336 387 381 437 501 572 679 8bZ 237 258 695 263 764 285 286 280 336 387 S c 138 43 018 857 965 1,132 $ c. 162 29 S c. 93 30 .? c. 89 32 $ c. 83 43 $ c. 82 86 $ c, 81 40 8 e: 78 83- 46 89 33 74 27 56 26 .56 20 89 16 57 24 61 21 3(V 2\jj 18 172 17 34 70 120 86 20 23 115 88 18 36 104 32 22 92 99 43 25 99 106 01 23 83 98 13 35 61 31 46 173 67 137 47 100 63 97 52 81 40 73 44 82 18 66 67 209 18 172 17 120 86 116 88 104 32 99 43 106 01 98 IS IntereHtand lit-nts. Fees. Maintenance. Bur.-iar's office, ■post of admin- istration per student and source from which paid. Cost of salaries and maintenance per student. The fluctuations in the interest and rent from 1881 to 1892 inclusive are sonifiwhet niisleadinjj; because owing to the old system of book-keepinp the tigurps shown are not what was earned by the investments held during the particular ypar, but sucli interest and rents as happened to be received during the year. Your Committee have not worked ont the percentage of interest earned because the figures presented by the Bursar's books do not enable them to do so. For the same reason the Brst figure.s entered under the year 1893 opposite interest and rent represent the actual receipts, while the second figures repre- sent the arrears and the interest and rent accrued but not due, this adjust- ment being necessary in order that the revenue accounts may hereafter be pn sented on the basis of actual earnings. The disparity between 1892 and 1893 in interest receipts is more apparent than real, the receipts of the first year being in excess of, and of the second year being below, the actual earnings. During the building operations which lowed the fire the interest account gained through the Trusttcjs having in their hands moneys derived from insurance, subscriptions, etc., subsequently paid out to contractors. The inequalities arising from this are not likely to appear again. The increase in receipts from rt-nts in 1893 as compared with 1892 doe.s not -epresent increased earnings. The actual earnings for 1892 and 1893 were about the same, viz., about $13,500 per annum, iuclu ling that received from the Medical Faculty. The increase in fees received in 1883, notwithstanding a decline in the number of students, was due to an enlargement in the scale of fees. La 1 893 there is an extraordinary advance, pirtly due to growth in number of students and partly to a readjustment of fees which is fully explained at pp. 6 and 7, Report of Standing Committee on Finance, 1892-3. The attention of the Board is called to the fact that while in 1881 the fee.s comprise 1 only about one tenth, in 1893 they comprise one-third of the income of the University. While the new buildir , and enlarged scope of University work have naturally added to the cost oF maintenance, a considerable i)art of th-i increase in 1892 and 1893 is due to unusual expenditure for apparatus and building construction. In 1892 the expenditure for apparatus was about $3,700, and 1893 about ^3,500. In 1892 there was also charged to one of the revenue accounts an expenditure on the Museum building amounting to over $4,000 which could not be taken from the Endowment. The cost of administerinj^ the Bursar's office for 1893 apitears unusually large because the sum of $1,140.49 due by the Upper Canada College for its share of Bursar's services had not been paid at the close of the fiscal year. Your Committee have added to the compirative statements ol Income and Expenditure a note showing the increise in number of students during the years covered by the comparison, together with the cost of administration per student and the sources from which the cost is derived. The results of these calculations are so interesting that it appeared to your Committee of very great importance that such facts should be accessible to the Standing com- mittee on Finance from year to year, either in the present or an improved form. It will be seen that nowithstanding the increase in salaries and other items included under No. 1 of Expenditure, of nearly seventy-five per cent., the cost per student is reduced from $143.82 to $76.83. The cost of main- tenance is reduced from $44.80 to $21.30 and the total cost from $188.62 to $98.13. YourC still more tiou is met ment is re) of the stut instruction with 347 equally gr from $19.( Your criticism i tainable fc Examinati aggregate those appe in Dentist culture, ai dents at t! of the cak A mor tion of SOI students i subjects. Sti Sti 0( M In ad Science v versity b This between your Cor ing the ^ cost of ii tion of tl the fees Ycui expressii zealous i to the B 31 inclusive are keepinp tha d during the Hived during of interest not enable B93 op|)osite gures repre- "lia adjuat- lereafter be ore apparent second year tions which ving in their iiently paid iy to appear 1892 doe.s 2 and 1893 at received cline ia the La 1893 of students ^p. 6 and 7, tion of the only about University _ work have ih^ increase id building ^3,700, and ;he revenue iver $4,000 unusually College for f the fiscal icorae and luring the iration par ts of these se of very iding com- i improved ind other per cent., b of main- !188.62 to Your Coniniittee desire to draw the attention of the Board specially to the Proportion of still inoro striking results as to the sources from which the cost of administra- dent'dT-fved tiou is met. If the revenue from the Crown property forming the Endow- from Krdow- nient is regardid as the proportion paid by the public towards the instruction ""•"' income of the students, it must be gratifying to learn that 1,132 students received """^ ^'■"'" *"**'• instruction in Art bubjeuts in 1893 at a cost of $66.G7 per student, hs compared with 347 students in 1881 at a cost of 81G9.61 per student. It must be equally gratifying to find tiiat the proportion borne by the fees has advanced from $19.01 in 1881 to $31.46 in 1893. Your Conitnittee are aware that the basis of these calculations is open to criticism in some respects. The ft es as shown in 1893, and as fur as ascer- tainable for previous years, cover those paid not only for Lectures, but for Examinations, Degrees, Matriculation, use of Library, Laboratory, etc , and the aggregate is the result of payments by a greater number of individuals than those appearing on the rolls of the University. Ex imination and Degree fees in Dentistry, PharmKcy, Engineering and Applied Sciences, Music and Agri- culture, are included, although those paying the Cees are nrt enrolled as stu- dents at the University. This does not, however, materially hssen the value of the calculations made. A more important fact is the difierence in the extent of the Art instruc- tion of some of the students now as compared with 1881. The roll of 347 students in 1881 represents about that number taking the full course in Art subjects. In 1893 the 1,132 students were composed as follows ; Students taking the complete or partial Arts course and paying Lecture and other fees 661 Students of Federating University receiving a lesser pro- portion of Art instruction, some of whom paid Laboratory, Libiary, Examination and Degree fees but none of whom paid Lecture fees 128 Occasional students, varying in extent of instruction and fees paid therefor , 63 Medical students receiving a comparatively small propor- tion of instruction in Art subjects, and this only by 1st and 2nd year students, number 155 280 Total roll for 1893 1,132 In addition to the above there were 84 students of the School o*' Practical Science who received instruction in Art subjects from the Fatuity of the Uni- versity but who were not entered upon the loUs. This complicated condition makes it evident that an exact comparison between 1881 and 1893 is not possible. It was not, however, the purpose of your Committee to do more than indicate in a general way that, notwithstand- ing the great increase in the aggregate of expenditure for administration, the cost of instruction per student has enormously decreased, while the propor- tion of thar, decreased cost paid by the students has greatly increased although the fees are still so much below those of other high class universities. Your Committee, in concluding their labors, have very great pleasure in expressing their obligation to Mr. Gross and their sense of his intelligent and zealous interest in the University. The thanks of the Committee are also due to the Bursar and his staff for information at all times promptly communicated. For the Committee, B. E. WALKER.