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FINANCIAL STATEMENT
ANTIOCH COLLEGE
YELL0 SPRINGS, OHIO
Antioch College, Yellow Springs, Ohio 453 87 (5 1 3) 767-73 3 1
October 1973
The Board of Trustees
c^
TREASURER’S REPORT, 1972-73
1972-73 was a year when extraordinary financial pressures plagued
private colleges. A number of institutions in the United States had to close
their doors for financial reasons. Others merged in order to operate more
efficiently, while many changed their status from private to public support.
In addition, the majority of private colleges incurred operating losses.
Contributing factors include sharp declines in enrollment and rising college
costs in excess of the general high rate of inflation. Furthermore, it was
a year in which the New York Stock Exchange Index declined 8 per cent, thereby
limiting the contribution of endowment income to operating budgets. Soaring
interest rates have greatly increased the costs of borrowing money for working
capital. And, unfortunately, it was a year in which the Yellow Springs campus
of Antioch had the two longest and most damaging strikes in its history. All
of the above factors exploded into an operating loss for the College.
A
suomary
of operations by campuses and centers follows.
Income Expense Gain Loss
Network 1,777,000
Y.S.
Operations 6,453,000
Y.S.
Dining Halls 370,000
Y.S.
Dorm
585,000
Wash./Baltimore
978,000
Gradeschool
of Educ. 1,563,000
A. School of Law 943 ,000
International Progs. 604,000
Antioch/West
480,000
Phila.
Urban Center 226,000
South. Appal. Circuit 14,000
Total
~reasurer’s Report, 1972-73 -2-
General
The net loss of $230,000 for the total College is substantially less
than last year’s loss before transfers of $624,000. The College is responsible
for a
matching ahare on National Student Direct Loans on the College Work-
S-&..dy
program. This
cost-
1972-73.
After the close of the year
—–A –
it was learned that these-costs had not been charged to the units on a monthly
reduced.
This
adjustment is greater than our total loss.
Network
Attempts to build up the General Fund Reserve by $200,000 were unsuc-
cessful because investment income was $127,000 less than planned. Two factors
.- . —-
contributed to this shortfall: (1) We had substantial Interest Expense because
of borrowing and this was deducted from Interest Income. (2) Royalties
declined and will continue to decline because the Vernay patents probably
will cease within the next five years.
Yellow Springs Operations
The Yellow Springs deficit may largely be attributed to these factors:
(1) Contribution income was nearly $350,000 less thail_antl – ———- -. -. —— – dpated. We feel
much of this stemmed from unrest on campus, unfavorable national publicity,
and growing uneasiness (perhaps because of misinformation) among alumni about
the course that Antioch is pursuing. (2) There were substantial
overexpendi-
tures
in telephone costs, bad debts, and purchases. A large part
of
each
of — —- – – —– — — — – – –
b
these overexpenditures can be attributed to theGring strike.)
-. –
Washington-Baltimore
Although there is a loss shown for Washington-Baltimore, $72,000
. .-
represent^-costs –were- applicable to-1971-72. This campus turned the corner
in 1972-73 after two disastrous years and showed an opera ti^^&-.surplaa ef-^ZO*O
for the year. This was the result of very tight financial and managerial
-.-
Treasurer’s Report, 1972-73 -3-
controls established by a group of Network staff in the fall of the year
and of vigorous efforts by the center directors to maintain controls
throughout the year. Even though Washington-Baltimore income failed to
reach the budgeted levels, reductions in expenses exceeded the shortfall
in income.
Graduate School of Education
This program suffered a loss because the Washington . – Center had
another bad year before it closed, because our matching funds required by
the National Direct Student Loan program and the College Work Study
program~two
federally funded financial aid
programs~far
exceeded the
budget, and because interest costs were improperly budgeted.
Antioch School of Law
The School of Law had an operating surplus its first year but heavy
capital . – – costs placed a burden on the working capital of-the College.
Over $500,000 cash was loaned to this campus for building purposes; these
monies will be repaid over the next three years. Meanwhile, the Law School
is paying interest on the amount borrowed. The operating surplus isbased
on the expectation that certain federal grants that have been appropriated
actually will be received.
International Program
Although the International Program has shown a loss for the
last two years, it has paid a substantial overhead where it never had before.
In addition,
ithas
paid off $30,000 of old indebtedness during this time. . -.
The dollar devaluation in 1972-73 placed a severe penalty on program costs.
Treasurer’s Report, 1972-73
Miscellaneous Centers
Antioch/West
showed a gain of $12,000 in 1971-72, its first year
of operations, but saw its financial situation deteriorate in 1972-73.
The current loss of $19,000
makes
a two year net loss of $7,000; this was
caused by a decline – – in enrollment – – — in the San Francisco Center and —- — — — — — —
a failure to decrease expenses accordingly. — —- – —- —
The Philadelphia Urban Center showed a gain which offset the loss
it had last year. Enrollment rose significantly late in the academic
year and we anticipate that this sustained increase will enable the
Center to operate at a surplus again this year.
The Southern Appalachian Circuit recorded a very poor financial
year in 1972-73 largely because
£in~ncia e-id-wa~ much -leas-t-han- expected.
A number of students were ineligible for federal assistance. The Center
has moved from Huntington to Beckley, West Virginia, and there has been
some increase in enrollment. There is no evidence yet that aprogram
this small. is–£jaaac-islly fsaflAble+^tefcl^e-h .
Minneapolis, Jacinto Trevino, The Teachers Inc., and Homestead-
Montebello manage their own resources and pay overhead to the College; – – – – – — .
$140,000 is owed by these centers, but each has arranged to pay any
outstanding debts to the College within the next few months.
Yellow Springs Auxiliary Services
The Yellow Springs administration
Inn, reduce the work force in the dining
decided to close the Antioch
halls, and contract with an out-
side organization to operate the cafeteria and coffeeshop in December 197
As a result of this decision, there was a strike during winter quarter.
Another large loss in dining hall operations occurred during the first
Treasurer’s Report, 1972-73 -6-
many intangibles in addition to the obvious costs such as non-productive – – –
payroll, -. . repair of damage* and the like. Conservatively, the *financial
impact will and contributions, – –
———-. —
make-up courses for students, and decline in enrollment.
—- — –
– — —- – —
Comparative Charges
A survey of college expenses has just been received showing charges
for tuition, room and board, for 1971-72 and 1973-74, at twenty colleges
that
compete
with
us
for students. Our Yellow
Springscampus -. -. dropped from
9th to 16th in totaLchargea. Our increase of $218, or 54 per cent, is —
exceeded by 17 of the other 19 colleges. Two years ago our charges were
$25 under the average. This year we are $244 under, which should improve
our competitive position.
TOTAL COLLEGE COSTS
1971-72 1973-74
Harvard
Yale
Princeton
Cornell
M.I.T.
U. of Pennsylvania
Wesleyan
Northwestern
Bryn
Mawr
Mount Holyoke
Oberlin
Smith
Amhers
t
Swarthmore
Boston University
ANTIOCH, Yellow Springs 3,962 9 4,180 16
Knox
3,950
11
4.150
17
Earlham
Carle ton
Wooster
Average 3,987 4,424
Treasurer’ s Report
Quasi Endowment
We are attempting in our balance shee ————– t this year to classify our —
assets in confomi~~&l~~~~~~-d-by- ~011el$es –
and universities. As . a result, for the first time we are including all
quasi endowment funds
meparately
instead of mixing some of them with
endowment and some with special restricted funds. The quasi endowment –
assets are those funds restricted by the Board of Trustees and available – – —
/
-/-
for any uses designated by the Board. They represent our safety factor.
Included in quasi endowment are $895,267 of funds formerly in Endowment
and $354,483 of funds formerly shown as Special Funds.
Working Capital
Perhaps the most pressing financial need is for additional working
capital. In order to have the necessary funds to manage our operations,
we she-aii — operating3urplusof 10 per ee&t of _our annual budget, — – – –
or approximate1y~-$l.#@&OO. Instead, we have an accumulated deficit of
. –
$500,000. In addition, to strengthen our position for the future we should
transfer back to the quasi endowment the $600,000 we transferred out in
^-f
p–
1971-72. This totals $2,500,000 in additional funds niikd-,.~nd securing
—-. — —- —- — –.
that amount should become a first priority for the Board of Trustees, the
administrative officers, and the development department.
Currently, we have a cushion that is uncomfortably small. Quasi
endowment that could be used in an emergency totals about $1,250,000, but
at the rate we are using it, none will be left in three or four years.
Our task, therefore, is twofold: to , build – -. reserves -. – in our operations -And–.
to embark on a major fund drive. In this way we can assure our long term — –
stability.
Treasurer’s Report, 1972-73 -8-
Endowment Results
Our endowment depreciated last year. We evaluate our assets on
a unit basis where we assigned a value of $10.00 per unit based on cost
as of June 30, 1969. The market value since we started this method of
accounting has been: June 30, 1970 . $ 8.71
June 30, 1971 12.21
June 30, 1972 14.16
June 30, 1973 11.65
The decline of 18 per cent from last year compares with one of 8 per
cent in the New York Stock Exchange Index, and 17 per cent for the
Common Fund, the fund used by a large number of college endowments.
Compared to two years ago, our values declined 5 per cent, the NYSE
increased by 8 per cent, and the Common Fund declined 6 per cent. In
1970 we adopted a policy of investing in more volatile stocks that would
rise and fall more rapidly than the market. We still think this is
a good long range program. Even with the large drop this year, our results
during the past three years have been much better than they were during the
previous decade when the market was going up but our assets were static.
In two years our Endowment (including quasi endowment) has dropped from
$7,013,454
to$5,793,054.
This decline of $1,220,400 included $621,230
transferred to Operations and $599,170 drop in values. As of September 30,
1973, $300,000 of the drop has been recovered.
Treasurer’s Report, 1972-73
Operating Results, 1971-72 and 1972-73
Actual Budget Actual vs. Budget
1971-72 1972-73 1972-73 Favorable Unfavorable
NETWORK
Income
Overhead 1,095,993 1,388,153 1,361,300 26,853
Investment Income 427,778 389,110 516,344 127,234
Reserve ( 200,000) 200,000
Income Total 1,523,771 1,777,263 1,677,644 99,619
Expense
Officers
Bursar
Admissions
Financial Aid
Registrar
Development
InÂ
ormat
ion
Educ. Planning
Ed. Res. & Eval.
Washington Office
Network
Misc.
Expense Total 1,331,453 1,725,637 1,677,644 47,993
Net Gain (Loss) 192,318 51,626 0 51,626
Notes
There have been substantial – increases —- in Network — – expenses a – this year –
in order to pr~yide hem-v -services. For example, the number
^f-rre=sGii&l
in the Officers category was eight in 1971-72 and sixteen in
1972-73. There were increases in a number of other departments as well.
In 1971-72 the cost of administrative data processing was charged to Net-
work Miscellaneous. In 1972-73 this was charged to the user departments.
This added over $150,000 to the Bursar, Admissions, Registrar, and Develop-
ment departments. We plan to replace the terminal currently leased with
our own computer within the next few months and will reduce the cost of
this installation. Overexpenditure in Miscellaneous Network was in
Professional Services. Included are attorneys, accountants, architects,
and although we pay very reasonable charges, we unfortunately had excessive
needs this year, particularly for attorneys.
— – – – – – — —
/
I'”
Treasurer’s Report, 1972-73
Operating Results,
-ii-
Actual Budget Actual vs. Budget
1971-72 1972-73 1972-73 Favorable Unfavorable
YELLOW SPRINGS
Income
Tuition 5,331,740 6,000,402 6,069,500 ,. 69,098
Other Fees 83,179 94,931 25,000 69,931
Contributions 499,961 308,187 ‘ 65- 348,881
Overhead 50,000
50,060 ‘
Variance 0 ( 150,000) < 150,000
Income Total 5,914,880 6,453,520 6,651,568 198,048
Expense
Humanities
Social Sciences
Science Institute
!.ialtit I '4 'i ^' New Directions
fi /' - fp .,A Y Instruc. Systems
' Extramural
. ' 'TI ff7 ^T ' Student Services
Dean of College
Administration
Overhead
Expense Total 5,979,574 6,578,519 6,651,568 73,049
Net Gain (Loss) ( 64,694) ( 124,999) 124,999
Yellow Springs expenses increased $600,000 or 10 per cent over the
previous years; $240,000 or 12 per cent was in the three academic areas.
Extramural and Instructional Services were up $60,000 or 9 per cent, Student
Support which is mostly financial aid was up $165,000 or 16 per cent, and
Administration was up $130,000 or 6 per cent.
Financial Aid was substantially below the budgeted amount because the
Financial Aid officer was able to secure more help from the federal govern-
ment than we had received previously. The help was short-lived, however,
and in 1973-74 we will have a large reduction.
Overspending in the Humanities Area was in the music department where
we continued the Cecil Taylor project for a second year without getting enough
outside funding. The overspending in administrative costs was largely because
of the spring strike.
Treasurer's Report, 1972-73
Operating Results,
-iii-
Actual
1971-72 1972-73
WASHINGTON-BALTIMORE
Income
Tuition 727,884 944,264
Fees 24,470 20,913
Grant 10,000 10,000
Miscellaneous 57,160 3,459
Income Total 819,514 978,636
Expense
Arts 143,023 103,073
Basic Human Probl. 122,594 123,214
Human Ecol. Center 117,494 158,089
Soc.
Res. & Action 156,223 134,036
Adult Degree Prog. ( 23,720)
Administr. Costs 769,442 536,805
Expense Total 1,308,776 1,031,497
Net Gain (Loss) ( 489,262)( 52,861)
Budget
1972-73
970,700
12,000
75,300
1,058,000
103,894
133,435
141,725
116,536
28,200
534,210
1,058,000
Actual vs. Budget
Favorable Unfavorable
Notes
The Washington-Baltimore campus has been divided into independent
centers with more financial responsibility placed on the center directors
for their programs. Administrative costs were reduced by $233,000, but
actually $115,000 of 1972-73 costs should have been in the previous year;
$43,000 were known about and budgeted, but the other $72,000 showed up
after the year started. In other words, actual expenses other than the
four major programs were $884,000 in
1971-72,
and $421,000 in 1972-73--
a reduction of over 50 per cent.
With the reserves built into the 1973-74 budget, the centers should
be in a position to adjust for any drop in enrollment.
~reasurer's Report, 1972-73
Operating Results,
-iv-
Actual
1971-72 1972-73
GRADUATE SCHOOL OF EDUCATION
~ean's
Office
Income
Expense
Net Gain
Harrisville
Income
Expense
Net (Loss)
Washington
Income
Expense
Net (Loss )
Philadelphia
Income
Expense
Net Gain
Yellow Springs
Income
Expense
Net (Loss)
Juarez Lincoln
Income
Expense
Net (Loss)
TOTAL (Eliminating Overhead)
Income 1,109,857 1,562,784
Expense 1,136,959 1,660,006
Net (Loss) ( 27,102) ( 97,222)
Budget Actual vs. Budget
1972-73 Favorable Unfavorable
Notes
Philadelphia was the only center able to enroll enough students to
achieve its budgeted income. It had a substantial gain in income, so for
the second successive year it showed a comfortable surplus.
Harrisville did not attract enough students to compensate for its
additional plant costs and by moving into New Hampshire it was unable to
secure enough fully paid jobs for internes; instead, it had to use College
work-study money and its share of this cost was $27,000. Also there were
excessive costs for plant repairs.
Washington suffered its sixth successive losing year. Its accumulated
deficit now exceeds $200,000.
Yellow Springs center suffered from a 13 per cent underenrollment.
It did not reduce its expenses to compensate for this.
Juarez Lincoln was unable to obtain expected grants in 1972-73 although
it has recently been allocated the money. It plans to repay the College during
the coming months for its two years' deficit.
Treasurer' s Report, 1972-73
Operating Results,
-v-
OTHERS
Actual Budget Actual vs. Budget
1971-72
1972-73
1972-73 Favorable Unfavorable
Antioch School of Law
Income 943,114 1,832,900 889,786
Expense 777,232 1,832,900 1,055,668
Net Gain 0 165,882 165,882
International Programs
Income 459,260 604,130 570,900 33,230
Expense 506,160 595,076 570,900 24,176
Net Gain (Loss) ( 46,900) 9,054 9,054
Antioch/West
Income 284,868 480,091 510,700 30,609
Expense 272,457 499,257 510,700 11,443
Net
(Loss)/Gain
12,411 ( 19,166) 19,166
Phila.
Urban Center
Income 97,785 226,120 187,500 38,620
Expense 120,460 207,224 187,500 19,724
Net
Gain/(Loss) ( 22,675) 18,896 18,896
South. Appal. Circuit
Income 13,765 40,000 26,235
Expense 28,751 40,000 11,249
Net (Loss) 0 ( 14,986) 14,986
Y.S. Dining Halls
Income 647,455 370,239 480,000 109,761
Expense 799,430 537,127 480,000 57,127
Net (Loss) (151,975) (166,888) 166,888
Y. S . Dormitories
Income 515,045 585,393 631,542
Expense 541,703 586,529 631,542 45,013
Net (Loss) ( 26,658) ( 1,136) 1,136
Transfer fr. Other Funds
Net Addition 621,230 0
GRAND TOTALS ( 3,307) (230,400) 0 (230,400)
Treasurer's Report, 1972-73
GENERAL FUND BALANCE SHEET
Cash $ 73,221
Notes Receivable 787,740
Accounts Receivable 30,347
Int erfund Receivable -
Prepaid Expenses 67,985
Total Assets $ 959,293
Notes Payable $ 50,000
Accounts Payable 269,021
Deferred Income 322,943
Interfund Payable 537,262
Operating Deficit ( 219,933)
Total Liabilities
and Fund Balance $ 959,293
~reasurer's Report, 1972-73
"SPECIAL" FUNDS, June 30, 1973
General Unrestricted Funds
Cash $ 196,028
Receivables 549,279
Liabilities $ 670,574
Fund Balances 74,733
General Restricted Funds
Cash
Receivables
Liabilities
Fund Balances
Quasi Endowment
Cash
Fund Balances
Loan and Grant Funds
Cash
Notes Receivable
Notes Payable
Loan Funds
Grant Funds
Agency Funds
Cash Deficit
Receivables
Due Agencies
Totals
Cash $1,149,406
Receivables 4,842,310
Liabilities $ 1,316,457
Fund Balances
General
Unrestricted 74,733
General
Restricted 785,360
Quasi Endowment 342,713
Loan Funds 2,869,375
Grant Funds 603,078
Treasurer's Report, 1972-73
ENDOWMENT FUNDS -- June 30, 1973
Cash
Bonds
Detroit Edison 4.625%
Anheuser
Busch 5.45 2
Leasco 8.50 2
Beneficial Finance 6.75 %
Alcoa 9.00 Z
Ontario Province 9.25 2
Total
Convertible Bonds
Baxton Labs 4.00 %
Common Stocks
Continental Illinois Properties
North America Mtge.
Property Capital Trust
B.F.Sau1
Real Estate
First International Bancshares
Winters National Bank
Burns International
Gelco Corp.
American Home Products
Avon Products
Smith Kline & French
Coca Cola
Heublein
Levitz Furniture
Combined Insurance Company
Equity Funding
Fisco Inc.
Frank B. Hull Co.
Pennsylvania Life
Travelers
Frozen Food Express
Greenman
Bros.
Pay n Pak Stores
J. C. Penney
Revco Drug Stores
Eastman
Kodak
IBM
Xerox
Marine Colloids
Champion Parts
General Motors
Cost Market
(continued)
~reasurer's Report, 1972-73
ENDOWMENT FUNDS, con t ' d .
Fishback & Moore
Square D
Caterpillar Tractor
Coastal Stocks Gen.
Exxon
Mobil Oil
Texaco
Texas Oil & Gas
DeKalb
Agresearch
Florida Power & Light
Houston Lighting & Power
Texas Utilities
Total Stocks
Miscellaneous Securities
Doyle Dane & Bernbach
First Troy National Bank
General Rest Homes
Midwestern Fidelity
Morris Bean & Co.
Security National Bank
Rouse & Co.
Total Miscellaneous
'Land Contract
Sunrise Shopping Center
Notes Receivable
Federally Guar. Student Loans
Property
Investment in Faculty Housing
Investment in Other Real Estate
Mortgages
Total
Due Other Funds (Net)
Cost Market
Total
Treasurer ' s Report, 1972-73
PLANT FUNDS
Assets
Cash
Sinking Funds
Notes Receivable
College Plant
Total Assets
Liabilities and Fund Balance
Accounts Payable $ 88,636 $ 7,069
Notes and Mortgages Payable 1,953,000 1,945,308
Due to Other Funds
Total Liabilities
Fund Balance $ 9,744,555 $ 9,951,004
Total Liabilities and Fund
Bal.
$12,474,967 $13,728,396
Notes: Details of Mortgages, Bond, and Note Payable:
3-1/8Z
Dormitory Mortgage Bond due 9/1/91 $ 254,000
2-314%
Dormitory Mortgage Bond due 8/1/97 307,000
3-1/8%
Dormitory Mortgage Bond due 4/1/99 116,000
3-518%
Domitory
Mortgage Bond due 7/1/03 505,000
8-112%
Visual Arts Building Mortgage
Note due 3/1/87 386,012
8%
Law School Building Mortgage Note 377,296
Total $ 1,945,308
-- - ---
The principal changes during the year were for improvements
to the two Law School buildings.
~reasurer ' s Report, 1972-73
AND =IFE INCOME FUNDS
Cash $ 8,896
Accounts Receivable 25,162
Securities at Market
(cost $154,574) 146,869
Pooled Investments 6,193
Total $ 187,120
Due Other Funds--Net $ 9,873
Fund Balance 177,247
Total $ 187,120
~reasurer's Report, 1972-73
FUND BALANCES RECAP
General Unrestricted $( 219,933) $( 375,000)
General Restricted 785,360
Grants 1,573,125 603,078
Quasi Endowment 342,713
Endowment 6,341,649 5,439,110
Annuity & Life Income 179,796 177,247
Loans 1,915,783 2,869,375
Plant 9,744,555 9,951,004
Totals
