ED/PSYCH LIB. LB 2334 C21s CARNE3IE FOUNDATION FOR THE ADVANCEMENT OF TEACHING STANDARD FORMS FOR FINANCIAL REPORTS OF COLLEGES, UNIVERSITIES AND TECHNICAL SCHOOLS... THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES THE CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING STANDARD FORMS FOR FINANCIAL REPORTS OF COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS BULLETIN NUMBER THREE JUNE 1910 THE CARNEGIE FOUNDATION FOR THE ADYANCEMENT OF TEACHING STANDARD FORMS FOR FINANCIAL REPORTS OF COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS BULLETIN NUMBER THREE 576 Fifth Avenue New York City D. B. UPDIKE, THE MERRYMOUNT PRESS, BOSTON ''v^n iv CONTENTS Schedule O Bonds and Mortgages Schedule P Endowment Funds for General Purposes Schedule Q Endowment Funds for Designated Purposes Schedule R Gains and Losses on General Investments Schedule S Surplus Accounts 33 84 35 36 37 INTRODUCTION THE present bulletin is the result of a prolonged inquiry concerning the prac- tice of universities and colleges in the United States in the rendering of public financial statements of their receipts and of their expenditures. It represents also the results of many conferences with the financial officers of colleges and universities, as well as with public accountants and others familiar with the object which -such finan- cial statements should serve. Tax-supported institutions are required by law to print an annual detailed state- ment of their receipts and expenditures. These reports in some cases simply give the list of sepai'ate vouchers. WTiile this may have a value in complying with the state law, such reports serve only a limited purpose in showing the actual operations of the in- stitutions concerned. Nevertheless, it is true that the tax-supported institutions have had a real source of strength by reason of this enforced publicity. Among endowed institutions only a small minority publish annual financial state- ments. The great mass of institutions of higher learning in the United States bear- ing the name college or university make no public accounting of the disposition of the moneys which they receive. It seems clear that both from the standpoint of its own efficiency no less than from the standpoint of its obligation to the public, every public institution like a college should print annually a report as to the use of the moneys which it has re- ceived. It is in the hope of facilitating this public duty, and with the hope further of bringing about some uniformity in these reports, that the present study was under- taken. In its prosecution the effort has continually been made to avoid the complexi- ties of too great detail and to reduce the fnformation which ought to be given to the simplest and most intelligible form. In order to do this it is necessary to know with some definiteness two things: (1) Who are the persons who make use of financial reports from colleges; and (2) What do those who examine such reports wish to ascertain from them? From the somewhat extended inquiry which has been made it may be stated with definiteness that the reports of the financial officers of colleges are read by very few people, and these may be classified in the following three groups : 1. Trustees, alumni, and friends of the institution who are directly interested in its welfare; 2. Men of means who contemplate gifts to colleges or who have made such gifts; 3. Individuals and agencies like the United States Bureau of Education engaged in a study of educational methods and cost. It seems also clear from the inquiries which I have been able to make that these three groups seek to ascertain essentially the same fundamental facts concerning the financial conduct of colleges and universities, with the addition that students of edu- 2 INTRODUCTION cation are interested not only in the statistics of a single institution, but in com- parative statistics as well. It may be assumed also that each of these groups of readers of financial reports desires in the first place the presentation of the financial status and conduct of an institution in gross. They all ask three fundamental questions : 1. What is the total income of the institution for the yeai'? 2. What is its annual expenditure? 3. What are the assets at the end of the year? A considerable number of those who examine reports are satisfied when these leading facts are known, and all subsequent information which can be given consists really of details concerning these three exhibits. The practical questions which have to be met are: What are the significant details to show? and, To what extent must the analysis of assets, liabilities, income, and expenditure be carried in order to show the significant needs or to test the quality of the expenditure? The answers to these questions depend not so much on expert accounting skill as upon sound business judgment, combined with some educational appreciation of the relation of the cost of education to its efficiency. In the schedules presented herewith Schedule A shows the gross summaries which indicate the condition of the institution at the end of its fiscal year and its income and expenditures during the year. These give the concise view of the financial status of the institution which the reader first desires to know. The schedules which then follow are intended to offer, in such detail as may be sufficient and not burdensome, the significant items of assets, liabilities, receipts, and expenditures. While details are included which will be needed only in the case of a large insti- tution with many departments, the report is also arranged for the use of any college, however simple its organization. To provide the material for such an exhibit as is here suggested it is only necessary that the ordinary details of bookkeeping shall be undertaken in some systematic form. I venture to urge again the duty of every college, whether supported by taxation or by endowment and tuition fees, to make annually a report to the public of its financial operations. The state institutions, as I have stated, are required by law to do this ; the absence of such a practice has been a source of much of the looseness which has characterized the financial conduct of many colleges. The college has everything to gain by opening its books to the public, and those who give to col- leges will more and more generally insist upon having a definite statement of the use which the college has made of its money. No college which refuses to do this deserves to be entrusted with money. There can be no question, also, but that colleges and universities will be less worldly and less commercial in their standards in proportion as they accept clearly their financial limitations. In the light of complete publicity INTRODUCTION 8 sound financial standards as well as sound educational ones will tend to drive out poor standards. Second, I wish to urge that, whether a college follows the exact schedules sug- gested here or not, those who make its financial reports should seek to segregate those items of income and expense which reveal the significant lines of expenditure, such, for example, as salaries of teachers, the cost of administration, the upkeep of the physical plant, the expenses of different departments, and the like. Every effort has been made to simplify as far as possible the schedules which fol- low, and it is necessarily assumed that they will be adjusted by each institution to meet its own needs. As before stated, these schedules are designed primarily as a form for an acceptable annual exhibit of the financial operations of an educational institution. On the other hand, they are suggestive of a method of bookkeeping. But it must be remembered that the actual keeping of the accounts from day to day, especially the designing of a cash-book best suited to the needs of an institution and best adapted to a minimum expenditure of energy, has in recent years become a profession. In whatever method the books are kept the data here called for should be easily obtainable from them. A word may be said concerning the best date for the beginning of the fiscal year. At present there is no uniformity in practice among institutions of learning in this matter. The majority of institutions which issue financial statements begin the year as of date July 1, and this is apparently the most convenient date. It is, therefore, suggested that colleges and universities adopt July 1 as the beginning of the fiscal year in the interest of uniformity and comparability. It seems to be the only date upon which agreement could be had, and it has the additional advantage of coin- ciding with the fiscal year of the general government, of many states, and of many business enterprises. While the schedules which follow are in most cases self-explanatory, the following statements are made in the interest of greater clearness. Schedule A No comment is necessary regarding this schedule. It gives in most condensed form a view of the income and expenditure and the assets and liabilities of the institution. Schedule B-1 This schedule shows under a group of distinguishing headings the income for the year. Schedule B-2 This schedule shows an analysis of the first item of the preceding schedule. Such an exhibit is of value both from the educational and the financial standpoint. Col- leges have been in the habit of receiving many students at reduced tuition, in many cases giving to a considerable group free tuition. The burden which this entails is 4 INTRODUCTION not generally understood. Whether it be a wise practice or not those interested in the college ought to know what this practice actually costs. The acceptance of a scholarship fund generally means an assumption by the college of an additional load. Such a fund is not an endowment of the college, but a subsidy to students dispensed by the college. The fact ought to be made clear in a financial statement both for the benefit of the college and of those who mean to give. Schedule C-1 This schedule shows under appropriate heads the large items of expenditure, such as the costs of teachers' salaries, administration, laboratory maintenance, upkeep of the physical plant. The effort has been made to introduce only significant group- ings. While the form covers the operations of a large university its applicability to those of a small college is evident. Schedule C-2 The preceding table shows the large items of expenditure. The details of these expenditures can be carried out to any length. The object sought is to go only so far as will serve the needs of those who use such reports. Any trustee of a university who is sufficiently interested to study such a report will desire to know not only the distribution of the income as between the college, the law school, and the medical school, for example, but he will also wish to know how much the college spends upon the teaching of history, how much upon mathematics, and upon other departments. When the institution is a college, this information is likewise desired. Schedule C-2 shows the departmental expenditures in such detail as seems desirable. Schedule D: Balance Sheet The balance sheet should, of course, contain all of the assets and all of the liabili- ties of the institution at the close of business on the last day of its financial year, say June 30. Each class of assets and of liabilities should be grouped under distin- guishing headings, as sho\vn in the form, without too much detail, so that the bal- ance sheet will show at a glance the financial condition of the institution. Full details making up the totals of the various items shown on the balance sheet should be given on separate schedules, forms for which are presented and explained on the following pages. The balance sheet is divided into three parts, as follows : 1. Current assets contrasted with current liabilities and balanced by an account which may be either a surplus (of assets) or a deficiency. 2. Investments contrasted with endowments and other permanent funds, exhibit- ing a surplus (of investments) or a deficiency. 3. Educational plant assets, land, buildings and equipment, contrasted with en- dowments and other funds, or capital accounts, which have been expended upon the plant. INTRODUCTION 5 Every educational institution should exhibit accurately the first part of this bal- ance sheet, i. e., current assets and current liabilities with the resulting surplus or deficit. Every endowed institution should also exhibit the second part : investments and endowments. The third part, while important, is by no means as important as the other two. It will add much toward a comprehensive view of the institution as a whole whenever part three is exhibited in full, but there are many institutions whose records in respect to costs of plant and equipment are far from complete. It may be that in the majority of the older colleges and schools no reasonably accurate state- ment of the values of plant and equipment could be given in the balance sheet un- less a new and complete appraisal is made of all such property. Such an appraisal is a tedious and costly piece of work, which should not be undertaken unadvisedly. Such appraisals, however, will be found unavoidable, sooner or later, in all univer- sity and college accounting, just as such appraisals have been found essential for the public interest for a clear understanding of conditions in railways and other public service corporations throughout the country. As the schedules which exhibit the funds of the institutions and the related income are referred to in several places on the balance sheet and on the income account, a brief general explanation seems in order at this point. College accounting for endow- ments and other funds of the institution must consider both principal and income of each fund. Gain or Loss on Investments Against the principal of a particular fund a college may hold specific securities or an undivided portion of its general investments. These investments change from time to time. Securities and real estate may be sold, resulting in either a gain or loss to the institution. Such gains or losses fall naturally into two classes, first, those incurred from the sales of specific investments and, second, those incurred from the sales of general investments. If the security sold belongs to a particular fund the gain or loss from such a sale can readily be credited or charged to the principal of this fund. If, on the other hand, the security sold is a part of the general investment cover- ing numerous funds, it is obviously difficult to distribute any gains or losses arising from a sale over all the funds. It is a great deal easier and quite as equitable to put all such entries into a general account called Gains and Losses on General Invest- ments. If this account shows a credit balance it indicates a net gain in handling in- vestments, and is an accumulation of capital for the institution to account for. A debit balance, on the other hand, indicates a loss in handling investments which should be made up if possible and, in any event, should not be hidden. This item has therefore been inserted in the balance sheet, but on the credit side only, as it is to be hoped that no institution will have occasion to show an accumulating loss of this character. 6 INTRODUCTION Surplus Income The income of a fund is directly related to the investments of its principal. If a fund has its own special investments, its income is solely derived from these in- vestments. If, on the other hand, the fund is invested with others, its income is its pro rata share of the income from these general investments. In either case, if the current income is not entirely expended from year to year the unexpended balance will remain for future use, unless, by some provision of the gift which created the fund, such balances are required to be added to its principal. The income of different funds (and the unexpended balances of this income) may be restricted in use to designated purposes, or may be available for the general purposes of the institution. When there are such balances of unexpended income the accumu- lation should appear in two items on the balance sheet, and the details should be set up in two classes, as outlined in schedule S. With this introduction, we may proceed to consider the remaining schedules re- ferred to on the balance sheet. Schedule E: Cash Receipts and Disbursements and Cash Balances This schedule exhibits the gross cash receipts of the year contrasted with the gross cash disbursements, together with the cash balances at the beginning and at the end of the year. The schedule also calls for details of cash on hand, such as cash held by the treasurer, the librarian, etc., to meet cuiTent expenses. Each official and the amount held by him should be shown separately. Present business custom requires that all moneys received be deposited in the bank and that all payments be made by check. For sundry small expenditures a fund consisting of a round sum — say $500 or SI 000, according to the size of the business conducted — should be held on hand, out of which payments in cash are made. At the end of each week or month a detailed voucher for these expenditures should be made out and a check drawn for the total thereof to replenish the fund. This method is in use in business so generally that this suggestion may seem unne- cessary, although few colleges follow the practice. If pay-roll or salary accounts are paid in currency, one check may be drawn for the exact amount of the pay-roll and charged to a pay-roll account, which should be distributed subsequently by journal entry. Schedule F-1 : Notes Receivable This schedule is designed to show all of the notes receivable due to the institu- tion, such as notes received for money loaned on collateral securities, notes received from students, etc. A description of each note — the name of the maker, the date of the note, and the date when the note falls due — should be given, and also, where collateral securities are held therefor, a statement of such securities should be given. INTRODUCTION 7 Schedule F-2 : Accounts Receivable This schedule merely calls for a list of all accounts receivable by the institution at the end of the financial year and requires no further comment. Schedule F-3: Rents Receivable This schedule is designed to show the income from the rented property during the year, the collections as made, and finally the balance uncollected to correspond with the amount stated among the current assets on the balance sheet. Schedule F-4 : Income from Rents This schedule is intended to show the profit or loss to the institution from the operation of its rented property during the year. Income from general investments is shown separately from income from special investments. Schedule G-1 Interest and Dividends accrued on Securities. General Investments Schedule G-2 Interest and Dividends accrued on Securities. Special Investments These schedules exhibit the interest earned in comparison with the interest actually received, and the increase or decrease of interest accrued at the end of the year. Schedule H: Securities, Bonds, Stocks, etc This schedule gives a list of the securities held by the institution and shows the transactions in these securities during the year. Some institutions maintain the prac- tice of furnishing the approximate market value of such securities; others do not. Schedule I: Investments in Real Estate other than University or College Grounds and Buildings Many institutions, in addition to their investments in bonds and stocks, invest to some extent in real estate and manage such property themselves, collecting all rents and paying all taxes and other expenditures in connection with the maintenance of the properties. Schedule I is designed to show all of such properties owned by the institution at the beginning of each financial year, the properties purchased and the properties sold during the financial year, and the properties owned at the end of the year. In the first column should be entered the figures from the previous year"'s accounts. The figures to be inserted in the second column are intended to cover any additions and betterments effected during the year, such as additions to buildings and land, or equipment purchased. 8 INTRODUCTION Schedules J, K, and L : Educational Plant. Lands, Buildings, and Equipment All of the land, buildings, and equipment necessary for the can-ying on of educa- tional work in connection with the institution should be shown in these schedules, which should be considered together. Schedule J is a summary of the institution"*s plant, showing the book values at the end of the year. Against these assets, the accounts should provide a reserve for depre- ciation sufficient to cover the wear and tear not made good by ordinary repairs. The buildings and equipment deteriorate with age, however, like other structures, and there comes a time when current repairs no longer suffice and when rebuilding becomes necessary. Some of the departmental equipment must be discarded to be re- placed by more up-to-date apparatus. Good accounting should distribute these losses over a series of years, by making entries for depreciation and gradually writing down the value of the assets. This depreciation may be provided, as in the case of the investment real estate, for individual buildings, or departmental equipment (as, for example, the fixtures of a laboratory), or one or more general reserves may be built up by the depreciation charged from year to year. Real estate used for educational work is not a business asset in the same sense as real estate held as an investment. For this reason the value of the educational plant with the additions and depreciations during the year are made a separable part of the Balance Sheet, Schedule D. It is unquestionably to be desired, however, that an effort be made to place true values on all tangible assets. In this way only can com- parisons among similar institutions be made in the matter of costs ; and, further, only by this means may a college fairly consider the value of its location with respect to other possible sites. In years past the value of accounting was largely an historical one, and the question as to whether the lands were overvalued or undervalued was not significant. But now that these valuations in accounting are to assist in secur- ing costs and in governing the financial policy, it is quite necessary to fix values for real assets as accurately as possible, and within broad limits to change the valua- tions as conditions change. To this end the following suggestions are offered: 1. It is not a requisite of good accounting to change the figures of a piece of pro- perty every time the market seems to change, but it is important that these changes be made periodically, preferably at stated intervals of from one year to three or five years. Unless an effort is made to do this at given periods, revaluations are apt to occur only when imperative. So important a feature of the accounts should not be left to chance. 2. In the matter of lands, college property seems to be divided into three classes: (1) Land, the value of which can be definitely determined from the values of surrounding property, irrespective of the existence of the college. Thus, the value of the site of Columbia University may be estimated by the prevailing INTRODUCTION 9 realty values of New York City property in its immediate vicinity. The influ- ence of the college upon the value of the surrounding land is slight. (2) Land, the value of which is dependent both upon city realty value irrespec- tive of the existence of the college, and upon the influence which the college itself exerts upon the immediate land values. Thus, the land occupied by Har- vard University is desirable property as a residential district of easy access to Boston. But the existence of Harvard in Cambridge also undoubtedly holds Cambridge real estate at a higher cost than if Harvard were not there. (3) Land, the value of which is dependent chiefly upon the existence of the col- lege itself. Princeton University and Hampden-Sidney are types of this class. If either of these institutions were removed their sites would be valuable only as village property or as farm land. These variables cannot, of course, be sharply differentiated. They may prove help- ful in determining a book value which should replace in accounting the original values fixed in some instances many years ago, or the nominal values as given fre- quently in other instances. It goes without saying that if property is purchased in the open market, the purchase price should be considered the inventory value until changed conditions necessitate a revaluation. It is generally true that the assessors of a city or county carry in their books the assessed valuation of college real estate even when such property is by law free of taxation. It does not seem to me possible that any failure to furnish a valuation on college real estate used for educational purposes can permanently affect the question of their taxation. Schedule M: Notes Payable Similar details should be given of notes payable by the institution as have been called for in regard to notes receivable, i.e.^ the name of the lender, the date of the note, and the date of maturity, the rate of interest, and a description of the col- lateral security given, if any. Interest accrued on each note at the end of the insti- tution's fiscal year should be calculated and entered in the outer column, the total of which column is to be added to the total principal and the gross total of notes payable and interest accrued thereon shown on the balance sheet. Schedule N: Accounts Payable No further details of the accounts payable are required than a list of the names and amounts. If a large number of the accounts are of small amount, to save space these can be entered in one sum as "miscellaneous accounts."" Schedule O : Capital Liabilities This schedule calls for details of the bonds and mortgages on the properties of the institution, such as the dates of issue and the dates when due, the rate of in- terest and the dates when interest is payable, and a short description of the properties mortgaged. 10 INTRODUCTION Schedule P : Endowment Funds, or Trust Funds, for General Purposes Universities and colleges receive endowments with varied instructions as to how the money may be expended. Some endowments are received with no restriction upon the way in which the money may be used, in others the principal is to be kept intact, but with no restriction as to the purpose for which the income may be expended. In some cases the amount given is to be expended for some designated purpose, in others the principal is to be kept intact while the income is to be expended for some designated purpose. Schedules P and Q have been designed to show particulars of the endowment funds in two classes — general purposes and designated purposes. Schedule P calls for details of endowment funds of the former class — general purposes. A short descrip- tion of the fund should be made, giving the name of the fund, the date it was re- ceived, the name of the donor, and the purpose for which it was given. This recog- nition of a gift in the annual financial report is more important than it is gener- ally understood to be. The notes made on the schedule under this heading, w^hich were copied from certain college and university reports, will give a clear idea of the information required. The first three columns should contain the amounts of the funds originally received. The amounts of any funds received during the year should be en- tered in the second of these three columns. Columns are then given to show what por- tion of the principal of each fund has been expended, and a short description should be given of what pui-pose it was expended for — such as additions to buildings or equip- ment, salaries to professors, etc. At the foot of these columns the portion of the fund expended is divided into assets and expenses. The portion expended on additions to buildings, purchases of equipment, or for such purposes as are additions to the assets shown in the balance sheet, should be shown in total separately from the portion ex- pended for the current expenses of the institution, such as teaching, etc. The column "unexpended principal at end of year" should show the amount of the fund still in the hands of the trustees of the institution, which is presumably invested by them. The last columns should show the income received during the year from these invest- ments in which the unexpended portions of the funds are placed. Schedule Q : Endowment Funds for Designated Purposes This schedule calls for the same details as in schedule P. Regarding the investment of the unexpended principal of funds shown in schedules P and Q, the treasurers' reports of some colleges and universities give exact details of the securities in which each fund is invested, while the treasurers'* reports of others give only the details of the securities in which each of a few of the larger funds is invested and consolidate the smaller funds, giving details of the securities in which the total is invested. Others again consolidate all of their funds and show the details of securities in which the total is invested. INTRODUCTION 11 On both schedules P and Q the columns showing the present unexpended prin- cipal of the fund and the current income are divided, to distinguish whether the fund has specific investments of its own, or is merged in a group of general investments. The principal of a special investment may be entirely different in character from the general investments of the institution, and for this reason the amount and rate of income on funds specifically invested may be entirely different from the income on funds in the general investments. The accompanying schedules are prepared to secure uniformity of financial reports of institutions of learning with little change in the bookkeeping of such institu- tions, and in the preparation of the schedules it has been assumed that the unex- pended portion of endowment funds is invested in such securities as are called for on schedule H, or in real estate, particulars of which are called for in schedule I and that small balances not invested in securities are on deposit in bank accounts. It is necessary to point out, however, that whenever the unexpended portion of any one fund is invested separately, the total income from such investment during the year is the figure called for to be entered opposite that fund in the column "income of unexpende'd fund during the year" on schedules P and Q. The general income from investments should be apportioned over the endowment funds relatively to the unex- pended amounts of the remaining funds. Schedule R: Losses and Gains on General Investments This schedule exhibits the losses from sales of securities during the year, or gains from the same. Schedule S: Surplus Accounts This schedule exhibits the three classes of surplus accounts con-esponding to the three divisions of the balance sheet, schedule D. Bookkeeping As already mentioned, it is expected that these forms can be filled up by the treasurers of the various universities and colleges from their books, even though the methods of bookkeeping be quite different in the various institutions. It may be an- ticipated that some of the treasurers will find it necessary to analyze a number of their income and expense accounts to get amounts called for in the forms, but this will not be a serious matter after it has been done once. It is doubtless impossible to provide an absolutely uniform system of bookkeep- ing among institutions of learning, but, if the forms here presented are to be gen- erally adopted by the administrators of institutions in the publication of their annual financial reports, it would be exceedingly advantageous for the treasurers of the vari- ous institutions to alter the headings of the income and expense accounts in their ledgers so that the latter shall conform with the headings herein in order to facil- itate the work of preparing the annual reports. The names of the accounts in the cash- 12 INTRODUCTION books and jouraals from which the entries are posted into the ledgers should also be changed con'espondingly. All of these changes are simple ones and should not dis- turb materially sound accounting methods which may have been used in the past by the various institutions. Suggestions Invited The treasurers or other officers of the various institutions are invited to send to the Carnegie Foundation for the Advancement of Teaching any suggestions which may occur to them relating to the improvement of the attached forms, and they are urged, even at the cost of some labor, to assist, so far as possible, in the effort to se- cure reports from all colleges which may be not only accurate, but also comparable with similar reports of other institutions. Henry S. Pritchett. June, 1910. STANDARD FORMS FOR FINANCIAL REPORTS OF COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS SUMMARIES FOR Yeah Income and Expenditure Total income for year, Schedule B-1 Total expenditure for year, Schedule C-1. Net surplus or deficit for year Assets and Liabilities Current assets at end of year. Schedule D Current liabilities at end of year. Schedule D Surplus or deficit of current assets Investment assets at end of year. Schedule D Investment liabilities at end of year. Schedule D . Surplus or deficit of investment assets Educational Plant Value of lands, buildings, and equipment. Schedule D Debt: mortgages, notes, etc., against plant. Schedule D.. Net investment in educational plant Schedule A 15 Schedule B-1 INCOME Description Items Totals Income from Students : Tuition fees. Schedule B-2 Incidental fees, matriculation fees Special fees for libraries, laboratories, degrees, etc. For supplies, chemicals, laboratory materials, etc. For dormitories (net), detail sheet For dining-halls (net), detail sheet Income from Investments of : Endowments for general purposes. Schedule P Endowments for designated purposes. Schedule Q Other Investments (if any) Income from Grants by Nation, State, and Special Taxation State aid : Income from endowment granted by state Tax levy for current expenses (rate mills) Appropriation for current expenses Tax levy for buildings or for other special purposes Appropriations for buildings or for other special purposes Federal aid : Income from land grant, act of July 2, 1862 Income from other land grants Additional endowment acts of August 30, 1890, and March 4 1907 Gifts for Current Expenses : For General Purposes {Details) For Designated Purposes {Details, such as gifts for immediate use on lands, huildings, etc.) Income from Other Sources : {Details) Total Income 16 RECEIPTS FROM TUITIONS Schedule B-2 College of Liberal Arts Law School Medical School Etc. Number of students registered Number of students paying full tuition Receipts from students paying full tuition Number of students paying part tuition Receipts from students paying part tuition Number of students admitted without payment Total receipts of tuition from all students Total amount of tuition paid from scholarship or fellowship funds Total receipts on account of tuition corresponding to first item under income, Schedule B-1 Average tuition paid per student in each school or department 17 Schedule C-1 EXPENSE Description Items Totals Departmental Expenses : Details in Schedule C-2 College of Liberal Arts College of Engineering Law School Medical School Dental School Teachers' College Agricultural School Graduate School Other Colleges, or Schools (Details) Administration and General Expenses : Salaries of officers (Details) Salaries of assistants, stenographers, etc. (Details) Expense of administrative officers (Details) Advertising (Details) Insurance (Details) Publication Expenses (Details) Purchases of Books, Supplies, etc. (Details) Other General Expenses (Details) Operation and Maintenance of Plant : Salaries and wages of janitors, care-takers, etc. Mechanicians' wages Laborers' wages Light, heat and power Undergraduate labor Piepairs (Details) Depreciation (Details) Expenses of Productive Real Estate : (Details, or Schedule) Miscellaneous Expenses : (Details) Total Interest (Details) Total Expense . 18 DEPARTMENTAL EXPENSES Schedule C-2 College or Department College of Liberal Arts Mathematics English Physics Chemistry Philosophy etc. Law School Medical School Sala- ries Pro- fessors Sala- ries In- struc- tors Sala- ries Assis- tants Total Sala- ries Teach- ing Staff Pap, Clerks and steno- gra- phers Libra- ry Budget Labo- ratory Budget Re- search Mis- cella- neous Total Cost of College or De- part- ment 19 BALANCE For the end 1. Current Assets Cash in banks and on hand for current expenses. Schedule E Notes receivable and interest accrued thereon, Schedule F-1 Accounts receivable. Schedule F-2 >■ Rents receivable. Schedule F-3 Interest and dividends accrued on bonds, mortgages and stocks. Schedules G-1 and G-2.. Other current assets Total current assets Deficiency of current assets (if any) 2. Investment Assets at end of Year Securities, Schedule II Real estate. Schedule I Cash in banks, for investments, Schedule E I Total investment assets „ Deficiency of investment assets (if any) Total . 3. Educational Plant, Lands, Buildings, and Equipment Balance at beginning of year. Schedule J $ Additions during year. Schedule K. Total Less Depreciation, Schedule L Balance at end of year, Schedule J $ Total Educational Plant 8" 20 Schedule D SHEET OF THE "i'EAR 1. CuHRENT Liabilities Notes payable and interest accrued thereon. Schedule M $ Accounts payable. Schedule N Interest accrued on bonds and mortgages, Schedule O Other current habilities Total current liabilities Surplus of current assets (if any) Total $ 2. Ekdowment Funds, eic, at end of Year Bonds or mortgages, against investments, Schedule Endowments Capital Accounts : Funds for general purposes, invested, Schedule P Funds for designated purposes, invested, Schedule Q Gain or Loss on General Investments, Schedule R Total invested funds Surplus Income, invested. Schedule S: From endowments for general purposes, etc From endowments for designated purposes ■ Total liabilities endowment funds, and surplus against investments 3. Educational Plant. Endowments and Capital Accounts Mortgages on Lands, Buildings, etc., Schedule O Endowments expended upon Lands, Buildings, etc.. Schedules P and Q Surplus Income expended upon Lands, Buildings, etc., Schedule S Total Educational Plant . 21 Schedule E CASH RECEIPTS AND DISBURSEMENTS For All Purposes during the Year Total Cash Receipts Total Cash Disbursements Excess of Receipts {or Disbursements) Cash Balance at beginning of year Cash Balance at end of year CASH BALANCE At End of Year Cash on Deposit at banks : {Details as to cash for immediate use and for investments) Cash at offices : {Details as to cash for immediate use and for investments) Cash Balance, as above . 39 Schedule F-1 NOTES RECEIVABLE Description OF Notes and Security therefor IF ANY Date of note Date ■when due Amount Total Interest accrued at beginning of year. Interest earned during year.. Rate of Interest Interest received during year Interest accrued at end of year..., Total notes and interest accrued. 33 ScheduU F-2 ACCOUNTS RECEIVABLE For Tuition : {Details arranged alphabetically) Miscellaneous i {Details) 24 Schedule F-3 RENTS RECEIVABLE Arreaus of Rents at beginning of year $ Rents due during year $ Total § Collections or Rents during year $ Arrears of Rents at end of year § Schedule F-4 NET INCOME FROM RENTS Real Estate belonging to the General Investments Rents due during year $ Expenses : Taxes $ Insurance $ Repairs $ Commissions $ Miscellaneous $ Total Operating Expenses $ Depreciation Charged $ Total $ Net Income (or Net Deficit) for year $ Real Estate belonging to the Special Investments 25 Schedule G-1 INTEREST AND DIVIDENDS ACCRUED ON SECURITIES General Investments Interest and Dividends accrued at beginning of year. Interest AND Dividends earned during year Total Interest and Dividends received during year Interest and Dividends accrued at end of year S_ Schedule G-2 INTEREST AND DIVIDENDS ACCRUED ON SECURITIES Special Investments Interest and Dividends accrued at beginning of year $ Interest and Dividends earned during year $ Total $ Interest and Dividends received during year % Interest and Dividends accrued at end of year $ 26 Schedule H SECURITIES : BONDS, STOCKS, AND REAL ESTATE MORTGAGES Description of Securities Balance at beginning of year. Cost Purchases during year. Cost Sales during year. Cost Balance at end of year. Cost Interest Received Interest Accrued Bonds : 20,000 Illinois Central R.R. Co.'s 4's, due 1022 etc. etc. ■ Stocks : 400 shares American Smelting & Refining Co. Preferred etc. etc. Real Estate Mortgages : Cornelia Page, on 41 W. 47th St. , New York , at 4]^ %, due 1910 etc. etc. Total 2T Schedule I INVESTMENTS IN REAL ESTATE OTHER THAN UNIVERSITY, OR COLLEGE, GROUNDS AND BUILDINGS Description of Properties Balance at begin- ning of year. Cost Pur- chases during year. Cost Sales during year. Cost Balance at end of year. Cost Schedule J EDUCATIONAL PLANT: LANDS, BUILDINGS, AND EQUIPMENT Account Balance at beginning of year. Cost Purchases during year. Cost Sales during year. Cost Balance at end of year. Cost University Site, Campus, Grounds, etc' Grading, Planting, Roads, Walks, etc' Buildings:' {Details) Departments' Equipment : Department Furniture and fixtures Library Collections etc. Department Furniture and fixtures Library Collections etc. Dormitories : Furniture and fixtures etc. Dining Hall Furniture and fixtures etc. ' If for any reason these items are omitted, a full statement of the cost, dimensions, and other details should be pre- pared. There should be a full and historically correct statement of the cost of the grounds and buildings, some- what as follows : The college grounds were acquired in in the following manner and at the following cost (.here give full particulars). The main building (used for recitation rooms and for the executive offices) is about by built of granite and brick, and was erected in at a cost of S the funds being provided as follows (here give full particulars). Hall is about by of brick with stone trimming and is used for purposes. It was built in and cost about $ the funds being provided as follows (here give full particulars). 39 Schedule K ADDITIONS TO LANDS, BUILDINGS, AND EQUIPMENT Additions to Lauds ^ {^Details) Additions to Buildings ® {Details) Additions to Equipment * {Details) Total during year ^ Schedule L RESERVE FOR DEPRECIATION ON LANDS, BUILDINGS, AND EQUIPMENT :: Balance of account at beginning of Year Credits during the year Extraor- dinary Re- pairs charged to Reserve during Year Balance of account at End of Year For Depreciation on Buildings $ % % $ For Depreciation on Equipment Less Appreciation on Land (if any) Total $ Balance of Reserve Account at End of Yeai r 30 Schedule M NOTES PAYABLE Notes Payable : Details arranged hy due dates Total Notes Payable Interest accrued Total Notes Payable and Interest accrued thereon Amount Interest accrued at end of year 31 Schedule N ACCOUNTS PAYABLE Accounts Payable: Details 32 Schedule O BONDS AND MORTGAGES Bonds : Details Against Investments Against Educational Plant Total Interest accrued at end of year Mortgages: Details Schedule P ENDOWMENT FUNDS FOR GENERAL PURPOSES Name and Description FUNDS^ The Original Endowment Fund This fund was left by John Smith, who bequeathed most of his large estate for the establishment of a uni- versity and hospital. The gift is free from ecclesias- tical or political control. The university foundation is without conditions ex- cept that the capital can- not be used for buildings. Endowment Fund of 1902 A fund given by the citi- zens of and other friends of the university headed by and at the time of the celebration of the 25th anniversary of the opening of the university. The principal is to be held as a permanent fund ; the income may be used at the discretion of the trustees Henry S. Alling A bequest left by him Oc- tober, 1901, the income to be used for the advancement of history and political sci ence and education, to the promotion of whicli he had devoted his life (originally $42,059.48, now $50,000). Scholarship Fund Established in 1894 by Mrs. as a me morial to her husband. Five Scholarships of $100 each Total princi- pal re- ceived to be- gin- ning of year Addi- tions to princi- pal re- ceived during year Total princi- pal re- ceived to end of year Expenditures from Principal of Funds Description of how expended Total ami. of princi- pal ex- pended to begin- ning of year Amount ofprin- cipal ex- pended during year Funds expended on Buildings, etc., such as are carried in the Balance Sheet as Assets. Funds expended on Teaching, etc., such as are charged in the Income and Expense Account Total amount of prin- cipal ex- pended to end of year Unexpended Principal at End of Year In general Invest- ments In special Invest- ments Total expended as above SUMMARY Unexpended principal at end of year, in investments (Schedule D). Unexpended principal at end of year, in educational plant (Schedule D). Total unexpended principal, as above Income of Un- expended Fund during the Year From general Invest- ments From special Invest- ments ' The various funds and their sources and objects .should be described somewhat as shown in the column. In institutions where a large number of such funds are held these details may be more conveniently published in a separate hand-book once for all or in a special number of the treasurer's report. In general, too little attention is given to acknowledging in a regular formal manner the donors of college gifts. 34 Schedule Q ENDOWMENT FUNDS FOR DESIGNATED PURPOSES Name and Description Funds Principal Total princi- pal re- ceived to be- gin- ning of year Addi- tions to princi- pal re- ceived during year Total princi- pal re- ceived to end of year Expenditures from Trincipal of Funds Description of how expended Total amt. of princi- pal ex- pended to begin- n ing of year Amount of prin- cipal ex- pended during year Total amount of prin- cipal ex- pended to end of year Unexpended Principal at End of Year In general Invest- ments In special Invest- ments Income of Un- expended Fund during: the Year From general Invest- ments From, special Invest- ments Note. The various funds and their sources and purposes should be here described somewhat as shown on sche- dule P. Funds expended on buildings, etc., such as are carried in the balance sheet as assets Funds expended on teaching, etc., such as are charged in the income and expense account Total expended as above 35 Schedule R GAINS AND LOSSES ON GENERAL INVESTMENTS Balance of account at beginning of year $. Gains on Sales of Securities during year % Less Loss on Sales of Securities during year Net Gain (or Loss) during year $^ Balance of account at end of year $. 36 Schedule S SURPLUS ACCOUNTS 1. Surplus of Income available for Current Expenses Balance at beginning of year $ Net Income (or Deficit) for year, Schedule A § Balance at end of year, Schedule D $ 2. Surplus of Income invested in Securities or Productive Real Estate General Special Investments Investments Balance at beginning of year $ $ Surplus of Income invested during year Total % $ Losses in Investments during the year Balance at end of the year, Schedule D % $ 3. Income expended for Lands, Buildings, and Equipment. Educational Plant Expended from Income to beginning of year $ Additions from Income during year $ Expended to end of year. Schedule D $ 37 Form L9-20m-7,'72(Q4038s8)4939A-3,59 UNIVERSITY or CALIIORNIA LIBRARV. LOS ANGELES "^ EDUCTION AND PSYCHOLOGY LIBRARY This book is DUE on the last date stamped bdov^ UCLA-ED/PSYCH Library LB 2334 C21s L 005 585 370 9 D 000 452 479