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Antioch College
Financial Statement
1969-70
Antioch College, Yellow Springs, Ohio, 45387
# – ANTIOCH COLLEGE
Treasurer’s Report, 1969-70
TO THE BOARD OF TRUSTEES
Compared to that for many independent colleges, the year that
ended June 30, 1970, was financially rather satisfactory for Antioch
College. We did have an operating deficit for the year for two reasons:
(1) We lost a substantial amount on our dining halls operation. Our
cafeteria was the subject of much justifiable criticism by the students
who were required to eat there. During the year, we discontinued our
contract with Saga Food Service, the firm that had operated our dining
halls, and we instituted an optional board plan to replace the compulsory
meal ticket program. We have not yet solved the problem of providing
food for our students. (2) The national strike after the Cambodia
invasion and the Kent State killings in May was expensive for us. Even
though the strike was not against Antioch, it cost well over $100,000.
Included was a loss of some $60,000 in additional salaries and a re-
duction in overhead income because we discontinued the Anthropology
Research Project; $50,000 was put aside for defense against political
repression and academic oppression; and during the few days of the strike,
salaries were paid although work was stopped.
Together these two items were thus responsible for over $200,000
of additional expense; since our operating deficit was $55,000, it can
be seen that under normal circumstances we would have had an operating
surplus. It seems unlikely that the coming year will be any more “normal”
than last; nor is there any reason to think that this year will be as
satisfactory financially as last year. There are several reasons to be
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~reasurer’s Report
pessimistic:
(1)
Until we solve the dining halls problem, we will con-
tinue to lose money there; (2) the need for student financial aid spirals
as college costs grow faster than national income; (3) the New Directions
program that the trustees, Administrative Council, and faculty have en-
dorsed is expensive, both for financial aid and for program development;
(4) there is a question of how much longer our tuition and fees can con-
tinue to increase without our experiencing a decline in applicants. For-
tunately, we have a marketable program; applications have increased
despite the fact that now our tuition is one of the highest in the
country; but there are limits.
On the favorable side, we are less dependent than most colleges
on endowment income, so the general market decline has not affected
Antioch’s operations to any great extent, nor is it likely to in the year
ahead. Another source of income is unrestricted gifts and contributions,
which we hope to increase because we have a new, aggressive development
staff that has plans to build up substantially our non-tuition income.
So far, our comments have referred to our Yellow Springs operations.
However, our other campuses are now becoming increasingly important finan-
cially, and we must examine the effects of the Washington-Baltimore
campus, the Antioch-Putney Graduate School, and the International Program.
The International Program has been in existence long enough and is
well enough organized so that it is not presently much of a financial
burden, nor is it likely to become one.
Antioch-Putney had operated a balanced budget for the previous
three years; but this year, because of an unusually large write-off of
Treasurer’s Report -3-
student accounts, we suffered a $25,000 loss. Unless we can do a more
aggressive job of collecting tuition from graduates, there will be a strain
on future budgets of Antioch-Putney.
Antioch ‘ s Washington-Baltimore campus has been in operation just
over a year. In its first year it operated at a loss of $25,000, but the
budget for 1970-71 includes an amount to start repaying that sum. With
triple the enrollment of a year ago, there should be no deficit this
coming year.
You will note that our balance sheet is presented in a different
form this year, with no differentiation of assets by funds. It is hoped
that this form will be easier to read. It will enable us to do a better
job of managing our cash and other assets. By combining assets, we will
be able to invest them more wisely. We would like to have your comments
on this method of presentation.
Along with nearly all investors in the securities market, we found
1969-70 a bad year for our Endowment Funds. At the year end, securities
originally costing $3,601,000 had a market value of $3,436,000 and had
declined $325,000, or 94% in value over the twelve months. Considering
the difference between cost and market value of our securities and inclu-
ding an estimated reduction in market value of $365,000 in the Sunrise
Shopping Center mortgage, we suffered a reduction of $867,000 in our
total investments. When contributions received and other changes are
taken into consideration our total fund balances, at market values,
declined $552,000.
Treasurer ‘ s Report
My first report must not close without an expression of gratitude
for everyone’s cooperation. Trustees, students, faculty, and other
administrators have been most helpful.. Particularly do I want to thank
Morton
Rauh,
who has taught me so much.
Albert Berney
Yellow Springs, Ohio, October 1970
Treasurer ‘ s Report
COMPARATIVE BALANCE SHEET
Assets
Cash and commercial notes, at cost
(approximates market)
Cash and United States Government
s_.
$ 1,698,018
ecurities held
in sinking funds, at cost (market value of
$192,854 and $196,987 in 1969 and 1970) (Note 3) 211,216
Receivables from students, employees, and others:
Accounts 231,833
Notes 1,083,273
Less allowance for doubtful accounts ( 15,000)
National Science Foundation grants (contra) 125,553
Prepaid expenses and sundry assets 53,849
Investments:
Marketable securities, at cost or appraised value
for gifts (market value of $3,813,485 and
$3,502,961 in 1969 and 1970)
Notes, mortgages, and land contract receivable,
at cost (Note 1)
Income-producing real estate, at cost less
allowance for depreciation of $83,154 and
$84,935 in 1969 and 1970 (Note 2)
College plant, at cost or appraised value less
allowance for depreciation of $1,061,587 and
$1,132,000 in 1969 and 1970 (Note 2)
Liabilities and Fund Balances
Accounts payable and accrued liabilities
Student fees and other advance collections
Bonds, mortgages, and notes payable
Deferred National Science Foundation grant (contra)
Fund balances :
General
Restricted general
Loan
Endowment
Annuity and life income
Plant
~reasurer’s Report
Comparative Balance Sheet, continued
Notes
1. The investments of the endowment funds include a land contract
in the amount of $1,865,191 receivable from Sunrise Shopping Center, Inc.
In the opinion of management, the market value of this land contract is
$1,500,000. The collateral for this obligation is land and buildings
having a cost of $5,729,959. The land contract is subordinated to other
mortgages on the property aggregating $2,979,822 at June 30, 1970.
Financial statements (unaudited) of Sunrise Shopping Center, Inc. as of
June 30, 1970, show that total assets of $6,284,410 exceed total liabili-
ties by $824,206.
2. The College considers as additions to plant assets only those
items which constitute major additions. Replacements of equipment and
furnishings are charged to expense as incurred, and retirements of
original equipment and furnishings capitalized are not removed from the
accounts. A summary of the cost of plant assets at June 30, 1970, is
as follows: Land $ 478,024
Buildings 9,188,985
Equipment 747,954
construction in progress 221,264
$10.636.227
In accordance with generally accepted accounting principles for educational
institutions, the College does not provide for depreciation on educational
plant. The allowance for depreciation for certain income-producing proper-
ties has been increased and funded by $70,418 and $70,225 of general fund
payments on debt service principal in 1970 and 1969.
3. Bonds, notes, and mortgages payable of the plant fund consist of
the following : Bonds Mature Serially in Increasing Principal
Description Annual Installments as Indicated Balances
3-1/8%,
dormitory $10,000 due September 1, 1970, to
first mortgage bonds $17,000 due September 1, 1990, with
of 1953 a final installment of $12,000 due
September 1, 1991 $ 283,000
2-3/4%,
dormitory $8,000 due August 1, 1970 to
first mortgage bonds $17,000 due August 1, 1997
of 1957 331,000
3-1/8%,
student apart- $3,000 due April 1, 1971, to
ment bonds of 1960 $6,000 due April 1, 1999 125,000
3-5/8%,
dormitory first $10,000 due July 1, 1970, to
mortgage bonds of 1963 $30,000 due July 1, 2003 535,000
8% construction note Due on demand
payable to bank
~reasurer’s Report
Comparative Balance Sheet
Note 3, continued
Under the terms of each bond indenture, the College is required to
make annual deposits into bond and interest sinking fund accounts main-
tained by a bank designated as trustee. Minimum required deposits to
each account are governed by the terms of the related bond indentures.
Deposits aggregating approximately $82,000 will be required for the
fiscal year ending June 30, 1971. Amounts on deposit with the trustee
at June 30, 1970, were as follows:
Bond and Maintenance
Interest and Equipment
Dormitory Fund of 1953
Sinking Funds ~ese&e Funds Total
$ 68,533 68,533
Dormitory Fund of 1957 44,678 35,731 80,409
Student Apartment Fund of 1960 16,849 7.386 24.235
Dormitory Fund of
1963*
51,808
51;
808
$ 181,868 43,117 224,985
*This indenture also requires a Maintenance and Replacement Fund
to be established when the sinking fund balance accumulates to a speci-
fied amount.
The College’s dormitory and student apartment buildings with an
aggregate cost at June 30, 1970, of approximately $1,659,500 are pledged
as collateral for the bonds. The mortgage bonds are further collateralized
by net revenues from operations of the dormitories and student apartments.
4. Certain 1969 figures have been restated for comparative purposes.
STATEMENT OF CHANGES IN GENERAL FUND
for the years ended June 30, 1970 and 1969
Income and
Expenses
Inter fund 1970 1969
Transfers Total Total
Educa t iona 1 and
Increases:
Tuition and
Income from
genera 1 ;
other student fees
endowment funds
Contributions
Royalties
Charges for administration
Rentals and miscellaneous income
Decreases;
General administration
Student services
and financial aid
Public service and information
General institutional
Maintenance and
operation of plant
Library
Teaching departments
General educational
Program development
Interdisciplinary programs
Auxiliary enterprises:
Increases:
Residence hall rentals
Dining hall and
Antioch Inn revenues
Columbia Center
Antioch Press revenues
Putney Graduate School
Decreases:
Residence ha 11s
Dining hall and Antioch Inn
Antioch Press
Columbia Center
Putney Graduate School
Excess of income over expenses
Net transfers to other funds
Net decrease in general fund
~reasurer’s Report
DETAILS OF ENDOWMENT FUNDS, June 30, 1970
Market Value
Funds for General Educational Purposes
General
E.M. and S.M. Birch
Jan de
Kadt
Memorial
JOY
Rockf ord
W.W. and C.G.
Kincaid
Bancrof t
Glen Helen
Futures 29 3
Total for general educational purposes $ 3.815.816
Funds for Special Purposes
Student Aid Funds:
John M. Prather
Readers’ Digest Foundation
Coblentz
Arakelyan
Forbush-McGary
Carolyn Geyer
H.A. and M.R. Keith
George Kelsey
Mother and Daughter
Nash
G. E. Owen
Orton-Caldwell
Alice Bingle
Charles E. Bruce
Patterson
James L. Stone
Sullivan
Wilcox Memorial
Charles Hodges Memorial
J.
W. Wills
Prudence Ann
Windsor
E.
M.
Hmond
Mumford
Muller
Mayer
General Unrestricted
Etta Walcott
Newcomb
Mott
P. T. Brewer
Walter Bell
Total Student Aid Funds
~reasurer s Report
Details of Endowment Funds, cont’d.
Funds for Special Purposes, continued
Book Funds:
Alumni
Noel Morris
Inman-Nosker
Pope
Ellen Alexander
Parent
Total Book Funds
Faculty Salaries:
Estate of Hugh Taylor Birch
Ford Foundation
Total Faculty Salaries
Alumni :
Yntema
Other
Total Alumni
Other:
Hine
Henderson
Dewey
Total Other
Total for Special Purposes
