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FOR THE FISCAL YEAR ENDED JUNE 30. 1966
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YELLOW SPRINGS. OHIO. 45387
THESE STATEMENTS ARE SUMMARIZED FROM THE BOOKS OF
THE COLLEGE. THE DETAILED ACCOUNTS AS WELL AS THE
REPORT OF THE COLLEGE’S AUDITORS, LYBRAND. ROSS BROS.
& MONTGOMERY. ARE AVAILABLE AT THE BURSAR’S OFFICE
OF THE COLLEGE IN YELLOW SPRINGS.
I am pleased to transmit Antioch College’s sum-
marized financial report.
This abbreviated report is taken from the
“Re-
port on Examination of Financial Statements” for
the academic and fiscal year that ended June 30,
1966, as prepared by Lybrand, Ross Bros. &
Montgomery.
Although called a “financial report,” it has
always been my purpose in preparing this narra-
tive account to relate the figures to the programs
which underly them. It is the complexity of these
programs that differentiates the financial state-
ment of a college from an industrial enterprise of
comparable size.
Although individual lines in the statement of assets
and liabilities show changes when compared to
the prior year, there have not been significant
changes in the college’s overall financial position.
Special Funds, with the exception of student loan
funds and reserves, are essentially “in-and-out”
accounts. Money is received for special purpose
and is expended for that use. All money received
may not be expended in the year received, and
hence special fund
“balances”
appear.
The following tabulation indicates the nature,
number, and expenditure activity in these accounts.
Kind Number Expenditures
3~eserves …………….. 23 100,856
Pels Research ………… 40 978,359
Book Funds ………….. 10 17,204
Student Financial Aid … 28 155,471
Research ……………. 47 646,680
Miscellaneous ………… 3 3 366,356
In order to relate the expenditures in the stu-
dent aid funds to later discussion on this topic, it
is necessary to point out that loans are not con-
sidered to be expenditures; such transactions are
regarded as replacement of cash by receivables.
The balance sheet carries marketable securities
at $2,520,629, their book value. The market
value as of June 30 was $3,012,587. These funds
as of this date were divided approximately 47%
bonds, 53% stocks, using market values. The re-
turn was 4.5% on book value and 3.8% on
market.
The remainder of the Endowment assets are
divided between receivables (by far the largest
being Sunrise Center), investment in real estate
(almost entirely in faculty housing), and invest-
ment in college plant.
The receivables decreased by over $100,000
reflecting an accelerated payment of principal by
Sunrise Center in return for the college’s agree-
ment to their refinancing plans. Real estate and
investment in plant continue to reduce as prin-
cipal is repaid each year.
The Endowment increased only
nominally-
approximately $50,000.
The year was marked by an unusual
phenomena-
there were no major construction projects under-
taken. However, this is not to say that plant im-
provement is at an end, for substantial headway
was made in planning a new academic building
to be known as
McGregor
Hall. This building will
house the departments of psychology, sociology,
anthropology, political science, and testing. In
addition it will contain a number of classrooms
designed to serve a variety of teaching techniques.
It will also provide, for the first time, laboratory
facilities for psychology.
In my last report I recounted the College’s
residential development known as Birch Sub-
division 11. The second phase of the subdivision
has now been completed, and 19 more lots have
been offered for sale. Only a few of these remain
unsold. The demand for these larger (95 acre)
more expensive lots is much keener than for the
smaller lots, which are available in other Yellow
Springs developments.
It is interesting to note that although the book
value of the plant is approximately $9 million,
the insurable value is now stated at over $10
million and that value, of course, does not include
the land.
Given our resident student population of about
800, this figure suggests that over $12,000 in
capital investment is required for each student.
The statement of operations refers only to what
we call the “General Fund” in our accounts and
includes the specific activities referred to. The
largest, of course, is the general undergraduate
education program. For the first time in five years
both the education program and the total fund
show a deficit, although measured against the
total of the combined operations, which amounts
to over $4.5 million, the deficit is only 1 % .
The principal reasons for the loss were: lower
contributions, reduced overhead on government
contracts resulting from procedural changes, losses
in the Antioch Press operation.
The technique of keeping expenditures within
an accurately determined budget is well-mastered.
Deviation of expenditures from budget have aver-
aged less than 1% over a 10-year period. The
problem of balanced operation lies in the pressure
to meet expanding needs, and this pressure is
usually in the direction of understating expenses
and overstating income. The problem is not one
of control, but of forming a realistic budget.
This topic must, I think, become more generally
a fixture in the financial reporting of colleges.
Antioch has long relied upon student-originated
funds to finance both its educational program and
the feeding and housing of the students. As more
of its dormitory capacity becomes dependent upon
borrowed capital, even the physical plant
con-
, struction becomes a charge upon the students.
Although few colleges would derive as large a per-
centage of their operating revenues from students
as does Antioch, almost all colleges are in the
position of seeing this percentage increase.
This trend towards assessing the higher costs
upon the student is accompanied by increasing
demands upon the college to find ways of assisting
students to meet these costs.
There is certainly a relation between the ca-
pacity of a college to select its students and its
ability to cope with the students’ financial limita-
tions. Precisely what this relationship is can be
only partially understood at this time. In any
event, increased sophistication in financial aid
record-keeping is imperative.
To that end the college accepted a grant from
the College Scholarship Service (a division of the
College Entrance Examination Board) to under-
take a project to standardize financial aid records.
This study is almost complete, and, using the
methods and terms which it recommends, we can
indicate with precision the amount and nature of
financial aid which our students received in the
academic year
1965166.
The following figures are
selected from the data assembled:
Total of Grants …………………….. $307,108
Number of Students Receiving Grants ……. 48 1
Total of Loans …………………….. $217,573
Number of Students Receiving Loans ……. 365
Total of Grants and Loans ……………. $524,681
Total Number of Students Aided ……….. 580 /
% of Student Body Receiving Aid ………. 32% ./
The study also undertook to determine the
sources of money from which this assistance
derived.
Unrestricted College Funds ……………. $ 93,3 13
Restricted Funds from Outside Donors …… 239,028 / Student-Originated Grants and Loans …….. 192,340 /
Total ………………………… $524,681 d
While 1964165 marked the final push towards
the Ford Foundation match, the
1965166
year
might be called one of breath-catching. And, as
might be expected, gifts declined from the prior
year. Total contributions were about $1.5 million.
Of this sum $182,000 was for unrestricted current
operations.
The purposes and sources of the gifts are sum-
marized as follows :
Purpose
Funds) ………….
Expendable Capital ……
Endowment …………
Current Expenditures (Including Special
$ 612,360 …….
Source
Alunini ……………
…….. Other Individuals
Foundations …………
Corporations ……….
Government ……….
All Other …………..
MORTON A. RAUH
Vice-president
YELLOW SPRINGS, OHIO
October 1 1, 1966
S&ustt June 30. 1966 June 30. 1965
Cash ……………………………… $ 119. 556 $ 95. 965
…………………….. Commercial notes 587. 364 1.033. 041
…………….. Notes and accounts receivable 92.7 1 1 77. 106
………………………….. Inventories 37. 306 40. 450
Prepaid expenses and other assets ………….. 23. 059 9. 161
$ 859. 996 $ 1.255. 723
Cash ……………………………….
……………… Stocks and commercial notes
…………….. Notes and accounts receivable
Pledges receivable, Advancement Program ……..
…………. U.S. Public Health grants receivable
Due from other College funds ………………
ENDOWMENT FUNDS
………………………………. Cash $ 19, 286
………… Stocks, bonds, and commercial notes 2.520, 629 Notes, mortgages, and land contract receivable …. 2,229, 879 ……………. Accounts and deposits receivable
……………… Due from other College funds 32, 412 ………………………….. Real estate 81.836
………………. Investments in College plant
Cash ……………………………..
Cash and securities in bond sinking funds ……
…………….. Due from other college funds
Cash and securities in dormitory maintenance and
………………. equipment reserve fund
…………………….. Notes receivable
……………………… Prepaid interest
…………………… Investment in plant
Student deposits ……………………….
……… Accounts payable and accrued liabilities
…………………. Due other College funds
/I. 3. Fund ……………………………….
Accounts payable ………………………
~. Due other College funds …………………. ..
Notes payable. Endowment loan …………….
…………………..
…….
Land Contract Payable
Reserves for equipment, improvements. etc
….. * Unappropriated gifts to Advancement Program
Other Special Funds …………………… ….
a ENDOWMENT AND ANNUITY FUNDS
……………………. General Endowment
…………………………. Glen Helen
………………………. Special purposes
Annuity funds …………………………
Accounts payable and accrued interest ………..
Notes and mortgage payable ……………..
………………………. Bonds payable
Endowment funds invested ……………….
Deposits in Birch Lots …………………..
. -/ . Plant Fund …………………………..
TOTAL LIABILITIES AND FUNDS
June 30. 1966 June 30. 1965
GENERAL FUND BALANCE
……………………. Balance July 1. 1965 $ 362, 872
Excess of income over expenses and appropriations
………… for the year ended June 30. 1966 (42.9461
INCOME
……………. Student tuition and fees
……………………. Endowment
…………………… Contributions
Royalties ………………………
…….. Administrative overhead receipts
………….. Rental and miscellaneous
EXPENSES
……………. General administration
…….. Student services and financial aid
………. Public services and information ……………… General institutional
Maintenance and operation
of
plant ….
………………………. Library
……………. Teaching departments
……………….. Other educational
DINING HALL AND ANTIOCH INN
INCOME
Totalsales ……………………..
EXPENSES
………………. Salaries and wages
Food …………………………
All other ………………………
DORMITORIES
INCOME
……………………. Room rents
EXPENSES
……………………… Operating
……………………. Debt service
INCOME
…………………… College work
Outside work ……………………
EXPENSES
INCOME ……………………..
EXPENSES …………………….
Excess of income over expenses. …….
