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Antioch
Financial
Statement
Financial Statement, Fiscal Year Ending June 30, 1968
Antioch College, Yellow Springs, Ohio, 45387
The statements in this report are summarized from the books of the College.
The detailed accounts and the report of the College’s auditors,
Lybrand,
Ross Brothers and Montgomery, are available at the Bursar’s Office of the
College in Yellow Springs, Ohio.
To the President,
Board of Trustees, and
Administrative Council:
Our complete auditors’ report43 pages of essential detail-is far too
complex to give a general picture of Antioch’s financial transactions.
Therefore, I usually summarize and interpret it in a report for general
distribution. This is the sixteenth such report.
BALANCE SHEET
Pages 12 and 13 of this report show the College’s assets and liabilities as of
June 30, 1968. They separate the four funds, or accounting categories, of
the College, and I discuss each in the paragraphs below.
Although there are very substantial differences between entries for 1967
and 1968, these result largely from movements of cash between receipt,
short-term investment, and expenditure. For example, for many Special
Fund Projects we characteristically receive funding in advance. We hold
these advance payments in the General Fund so that the interest they earn
may accrue to the general education program and, to some extent, com-
pensate for indirect costs that we could not otherwise recover from these
special projects. The degree to which these funds are intermingled is meas-
ured by the inter-fund liabilities, which change during the course of a year.
The important fact is that these liabilities are fully offset by cash or short-
term investments and are not a deficit.
One of the most interesting items on the balance sheet is the General Fund
Surplus, which amounted to $232,311 as of June 30, 1968. For an enterprise
that is expending over $5.5 million dollars, a reserve margin of this size
would be considered excessively small by commercial standards. However,
it is characteristic of educational institutions to operate without the reassur-
ance of comfortable surpluses. If we could quantify in dollars the value of
our educational output, perhaps we could show a more typical “profit.”
GENERAL FUND
The General Fund accounts for the following activities: the undergraduate
program, dining halls, dormitories, Antioch Press, and Antioch-Putney
Graduate School. In total these operations cost $5.7 million. For this volume,
the total excess of expense over income ($4,719) is about as close to
break-
even as is possible-a deviation having been achieved of less than one tenth
of one per cent.
In the undergraduate program, where the budgeting process is most com-
plicated (but best understood), expenses exceeded budget by about 1% per
cent, and receipts exceeded estimates by
21%
per cent. Both of these figures , .
are well within tolerable margins of error.
Dormitories, which are expected to pay for themselves, did not. In looking
at the operating figures, we may find it interesting, but not useful, to specu-
late on what the results would look like if the dormitory plant did not carry
a debt-service load of almost $150,000 annually. It is because of this large
fixed charge that we tend to push our occupancy predictions too high. We
budget for 95 per cent occupancy, a figure often unattainable with our highly
fluid program and unpredictable student residence.
This year the
Antioch-Putney
Graduate School of Education achieved for
the second year its goal of being self-supporting. It has also experienced
phenomenal growth, having increased its enrollment from 10 students in
1964 to over a hundred students in the year just past.
SPECIAL FUNDS
Expansion of colleges and universities is usually seen as growth in student
enrollment. Antioch has another
kind
of growth. It is the growth of activities
for special purposes, financed from special receipts.
These activities range from book funds as small as $54 to service contracts
as large as $225,000, and they include research grants, which range from
small individual faculty projects to large-scale national studies of campus
governance. In total scope, these activities are very much an integral part
of Antioch.
The table on the next page shows how much these separate special activi-
ties have expanded in recent years.
GROWTH OF SPECIAL ACTIVITIES
EXPENDED
(IN THOUSANDS)
$578
532
566
505
646
853
1,176
1,885
2,591
ENDOWMENT FUND
The Endowment Fund statement this year shows one marked departure
from previous statements. We were able to implement a plan, considered for
several years, to regard the marketable securities of the Endowment as an
investment portfolio. Into this pooled fund we have placed funds “owned”
by the General and Special Funds that are long-term by nature, for example,
retirement and equipment reserves. By putting such funds into longer-term
investments, we hope their principal can be better protected against the
erosion of inflation.
The result is to show endowment investments, and endowment liabilities,
as having increased by $457,000. In contrast, the actual net growth of
endowment, in terms of new receipts, is again modest-about $50,000.
As of July 31, 1968, about 62 per cent of the marketable securities
Antioch holds were invested in common stocks.
For the first time we have been securing from our investment advisors an
index of the performance of the common stocks we hold. For comparison
purposes, this index of values is shown against the Dow Jones Industrial
Averages in the table on the next page.
INDEX OF COMMON STOCK VALUES
DATE
ANTIOCH
Dow JONES
October 14, 1966 100.0 100.0
April 14, 1967 116.6 111.3
September 29, 1967 122.9 119.9
March 29, 1968 114.2 109.5
July 15, 1968 127.6 120.0
The Endowment Fund investments have been listed at the end of this report.
PLANT FUND
The Plant Fund shows major change, which reflects the construction of
McGregor
Hall. Another large addition to plant is the replacement of our
second over-aged boiler in the college power plant.
STUDENT FINANCIAL AID
Colleges customarily accept a considerable responsibility for helping students
to meet their educational costs. The ideal goal of any college would probably
be to admit students without regard to their ability to pay. Unfortunately,
achievement of that goal is beyond the reach of all but a few richly endowed
institutions.
Nevertheless, Antioch has managed to couple its own resources with the
increased federal and state programs to provide substantial assistance to a
large number of students. This assistance is usually a combination of out-
right grants with loans. More recently, the federal work-study program has
come into increased use. As Antioch’s costs rise, the problem of financing
its students becomes more difficult. Along with administrators of other private
colleges, Antioch is becoming increasingly apprehensive about pricing itself
out of the market.
Unfortunately, we know how to determine neither the “pricing-out”
figure nor the “market.” The number of completed applications for admis-
sion received has grown from 1406 applications in
1964-65
to 1878 in
1968-69, while during the same interval tuition has risen from $1,500 to
$2,270. However, the need for financial assistance has also grown. It is of
utmost significance to our financial stability that we successfully relate three
factors: rising costs, the capacity of our clientele to meet these costs, and
our financial aid resources. The student financial aid program in the year
1967-68 is summarized in the table below.
STUDENT AID PROGRAM
GRANTS
………….. Unrestricted college funds $151,000
………… Contributed funds to college 1 12,300
Interracial funds …………………. 137,000
Antioch-Putney ………………….. 68,000
Total awards made by college ……….. $468,300
Grants made directly by donor to student . . 223,000
Total of all grants ………………… $691,300
LOANS
College loan funds ………………. $36,000
NDEA loans ……………………. 220,000
Loans made directly to students ………. 128,000
Total of all loans …………………. $384.000
Total of all aid ………………….. $1,075,300
The total number of students receiving one or more kinds of assistance was
679, or 36 per cent of the enrollment.
The total of all assistance is 29 per cent of tuitions and fees collected.
This is an important index figure, which provides over a span of time some
INDEX OF COMMON STOCK VALUES
DATE
ANTIOCH
Dow JONES
October 14, 1966 100.0 100.0
April 14, 1967 116.6 111.3
September 29, 1967 122.9 119.9
March 29, 1968 114.2 109.5
July 15, 1968 127.6 120.0
The Endowment Fund investments have been listed at the end of this report.
PLANT FUND
The Plant Fund shows major change, which reflects the construction of
McGregor
Hall. Another large addition to plant is the replacement of our
second over-aged boiler in the college power plant.
STUDENT FINANCIAL AID
Colleges customarily accept a considerable responsibility for helping students
to meet their educational costs. The ideal goal of any college would probably
be to admit students without regard to their ability to pay. Unfortunately,
achievement of that goal is beyond the reach of all but a few richly endowed
institutions.
Nevertheless, Antioch has managed to couple its own resources with the
increased federal and state programs to provide substantial assistance to a
large number of students. This assistance is usually a combination of out-
right grants with loans. More recently, the federal work-study program has
come into increased use. As Antioch’s costs rise, the problem of financing
its students becomes more difficult. Along with administrators of other private
colleges, Antioch is becoming increasingly apprehensive about pricing itself
out of the market.
Unfortunately, we know how to determine neither the “pricing-out”
figure nor the “market.” The number of completed applications for admis-
sion received has grown from 1406 applications in
1964-65
to 1878 in
1968-69, while during the same interval tuition has risen from $1,500 to
$2,270. However, the need for financial assistance has also grown. It is of
utmost significance to our financial stability that we successfully relate three
factors: rising costs, the capacity of our clientele to meet these costs, and
our financial aid resources. The student financial aid program in the year
1967-68 is summarized in the table below.
STUDENT AID PROGRAM
GRANTS
………….. Unrestricted college funds $151,000
………… Contributed funds to college 1 12,300
Interracial funds …………………. 137,000
Antioch-Putney ………………….. 68,000
Total awards made by college ……….. $468,300
Grants made directly by donor to student . . 223,000
Total of all grants ………………… $691,300
LOANS
……………….. College loan funds $36,000
NDEA loans ……………………. 220,000
Loans made directly to students ………. 128,000
Total of all loans …………………. $384.000
Total of all aid ………………….. $1,075,300
The total number of students receiving one or more kinds of assistance was
679, or 36 per cent of the enrollment.
The total of all assistance is 29 per cent of tuitions and fees collected.
This is an important index figure, which provides over a span of time some
Statement of Operations
indication of the dependence of student-generated income on financial assist-
ance programs for
Antioch
students .
CONTRIBUTIONS
Like so many other terms in higher education. the word contribution is
subject to a wide variety of interpretations . It has been our practice to
receive as contributed income all income other than student charges. endow-
ment income. rents. royalties. and interest . Thus. an unrestricted gift for
general operations and a government allocation for student loans are both
accounted for as contributions . Using this convention. consistent with past
practice. the contribution total of 1967-68 was
$1.917.
726
compared with
$1.503.
403
in the year before . Most of this increase was in the Special Fund
activities discussed above .
The difference between $1.9 million reported here and the figure of
$233.
631
(see “Statement of Operations”). which is the totally unrestricted
portion of contributed receipts. is a good measure of one of the most severe
financial problems in higher education: the tendency of educational support
to go to special projects rather than to the ongoing undergraduate program .
A further interesting fact is that 55 per cent of contributed income stems
from the federal government .
MORTON A . RAUH. Vice-president
Yellow
Springs.
Ohio
October 4. 1968
1967-68
GENERAL EDUCATION BUDGET
INCOME: Student tuition and fees ……………. $3.272. 490
……………………………. Endowment 252. 848
…………………………… Contributions 233.63 1
……………………………… Royalties 7 1. 047
……………. Administrative overhead receipts 179. 170
Rental and miscellaneous …………………. 96. 774
………………………….. Total income $4.105. 960
…………… EXPENSES: General administration $246. 2 18
Student services and financial aid ……………. 472. 799
Public services and information …………….. 232. 783
General institutional ……………………… 8 10. 411
………………. Maintenance. plant operation 356. 022
Library ……………………………….. 218. 768
Teaching departments …………………….. 1.136. 545
Other educational ……………………….. 571. 261
………………………….. Total expenses $4.044. 807
EXCESS OF INCOME (EXPENSES) ……………… $61. 153
DINING HALL AND ANTIOCH INN
……………………… INCOME: Total sales $693. 260
EXPENSES: Salaries and wages ……………… $3 10. 649
Food …………………………………. 266. 502
All other ……………………………… 122. 720
Total expenses …………………………. $699. 871
EXCESS OF INCOME (EXPENSES) …………….. ($6. 611)
DORMITORIES
INCOME: Room rents …………………….. $405. 849
EXPENSES: Operating …………………….. $288. 313
Debt service …………………………… 143. 757
Totalexpenses ………………………….. $432. 070
EXCESS OF INCOME (EXPENSES) …………….. ($26. 221)
ANTIOCH PRESS
……………………………….. INCOME $1 1 8. 7 14
EXPENSES ……………………………… $15 1. 754
EXCESS OF (EXPENSES) OVER INCOME …………. ($33. 040)
ANTIOCH-PUTNEY
GRADUATE SCHOOL
……………………………….. INCOME $417. 622
EXPENSES ……………………………… $408. 333
Reserve ……………………………….. 9. 289
Total expenses …………………………. $417. 622
TOTAL: EXCESS OF INCOME (EXPENSES) … ($4. 719)
Comparative Balance Sheet
Liabilities Assets
JUNE 30. 1968
GENERAL FUND
Student deposits ………………………. $48. 043
Accounts payable and accrued liabilities …….. 220. 407
Due other College fun& ………………… 738. 728
Fund ……………………………….. 232. 311
JUNE 30. 1968
GENERAL FUND
Cash ……………………………….. $164. 516
Commercial notes …………………….. 883. 568
Notes and accounts receivable ……………. 17 1. 765
Inventories …………………………… 14. 043
Due from other funds ………………….. 1. 165
Prepaid expenses and other assets …………. 4. 432
Total general fund …………………….. $1.239. 489
SPECIAL FUNDS
Accounts payable ……………………… $85. 685
Notes payable. endowment loan …………… 4. 809
Land contract payable ………………….. 4. 000
Deferred income. Great Lakes Colleges Assn …. 15. 337
Resc~es for equipment. improvements. etc …… 430. 141
Unappropriated gifts to Advancement Program . . 348. 754
Other special funds ……………………. 2.918. 399
Total general fund …………………….. $1.239. 489
SPECIAL FUNDS
Cash ……………………………….. $128. 658
Stocks and commercial notes …………….. 916. 008
Investment in endowment fund securities ……. 457. 000
Notes and accounts receivable ……………. 1.067. 395
Pledges receivable. Advancement Program …… 204. 238
U.S. Public Health grants receivable ……….. 234. 175
Due from other College funds ……………. 763. 172
Prepaid expenses ……………………… 36. 479
Total special funds …………………….. $3.807. 125
Total special funds ……………………..
ENDOWMENT AND ANNUITY FWNDS
……………………. General endowment
Special funds invested in endowment fund securities
ENDOWMENT FUNDS
……………………………….. Cash $168. 400
Stocks. bonds. and commercial notes ………. 3.254. 156
…… Notes. mortgages. land contract receivable 2.229. 468
Due from other College funds ……………. 4. 809
Real estate …………………………… 65. 822
Investment in College plant ……………… 517. 868
Glen Helen …………………………..
Special purposes ……………………….
Due other College funds …………………
Annuity and life income funds …………….
………. Total endowment and amuity fun&
PLANT FUND
Accounts payable and accrued interest ……… …………….. Notes and mortgage payable
……………………….. Bonds payable
………………… Due other College funds
………………. Endowment funds invested
………………….. Deposits in Birch lots
…………………………… Plant fund
Total endowment funds …………………. $6.240. 523
PLANT FUND
……………………………….. Cash $12. 235
Commercial notes ……………………… 148. 483
Sinking fund …………………………. 164. 199
………………………….. Dormitories 27. 908
Notes and accounts receivable ……………. 58. 925
Investment in plant ……………………. 9.149. 454
Total plant fund ………………………. $9.561. 204
………………………. Total plant fund $9.561. 204
TOTAL LIAEIILITIES AND FWNDS ………. $20.848. 341
TOTAL ASSETS ……………………… $20.848. 341
GENERAL FWND BALANCE
Balance July 1. 1967 …………………… $237. 030
Excess of income over expenses and
appropriations. 1967-68 ……………….. (4. 719)
………………. Total general fund balance $232. 311
Endownment Fund Investments
COMMON STOCKS
AMP,
lnc.
American Electric Power Co.
American Home Products Corp.
American Telephone & Telegraph Co.
Burlington Industries
Caterpillar Tractor Co.
Central and South West Corp.
Chemical Bank New York Trust Co.
Corning Glass Works
Dayton Power & Light Co.
Diamond International Corp.
Eastman
Kodak
Co.
Federated Department
Storesy
hc.
First National Bank in Dallas, Texas
First Troy National Bank & Trust Co.
Florida Power & Light Co.
Ford Motor Co.
General Mills, Inc.
General Motors Corp.
General Public Utilities Corp.
Gillette
Co.
Heublein, Inc.
Houston Lighting & Power
International Business Machines
Corp.
Kennecott Copper Corp.
M.C.A., Inc.
Miami Deposit Bank
Morris Bean & Co.
New
Carlisle
National Bank
J. C. Penney Co.
Polaroid Corp.
Scott Paper
Co.
Southern California Edison Co.
Standard Oil Co. of New Jersey
Sundstrand Corp.
Texaco,
lnc.
14
Texas Gulf Sulfur Co.
Texas Utilities Co.
Trane Co.
T.R.W.y
lnc.
Union Oil Co.
Westinghouse Electric Co.
Winters National Bank & Trust Co.
Xerox Corp.
COMMERCN
BONDS
American Telephone & Telegraph Co.
Anheuser-Busch, Inc.
Baxter
Laboratories, Inc.
Caterpillar Tractor Co.
Chase Manhattan Notes
Collins Radio Co.
Colorado Interstate Gas Co.
Consolidated Edison Co.
Consumers Power Co.
Detroit Edison
Federal Land Bank Consolidated
Federal National Mortgage
Association
Florida Power & Light Co.
General Motors Acceptance Corp.
Michigan Bell Telephone
Northern States Power
Pittsburgh, Cincinnati, Chicago &
St. Louis R.R.
Public Service Electric & Gas Co.
Sears, Roebuck & Co.
Southern California Edison Co.
Southern New England Telephone
co.
Standard Oil Co. (Indiana)
Tennessee Gas Transmission
CO.
Texas Electric Service Co.
Walt Disney Productions
