ML19338D682
| ML19338D682 | |
| Person / Time | |
|---|---|
| Site: | 05000157, 07801979 |
| Issue date: | 09/15/1980 |
| From: | CORNELL UNIV., ITHACA, NY |
| To: | |
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| ML19338D677 | List: |
| References | |
| NUDOCS 8009230649 | |
| Download: ML19338D682 (7) | |
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,
CORNELL UNIVERSITY FINANCIAL REPORT, 1978-79' Financial Review The argument is often made that in higher table, realized and unrealized investment gains government support continues to provide a major education too much attention is paid to financial were $15.7 million in 1979, as contrasted with portion of the University's resources, the strength, with academic health appearing to take gains of $4.9 million in 1977 and losses of $11.8 percentage of the total from all governmental o backseat to fiscal matters. There can be no million in 1978. Investment earnings were also up sources declined from 45.1 percent in 1977-78 to crgument that the quality of education must be significantly, to $24 million, principally reflecting 44.3 percent in 1978-79. For the two-year period, the principal concern if an institution is to survive the high interest rates prevailing throughout there were major increases in private gifts, snd thrive. However, in one sense the academic most of the year. While federal, state, and local grants and contracts, federal government funds cnvironment is no different from the corporate world. No corporation can achieve great strength Table 1. Analysis of Overall Financial Activity (in Millions) without a healthy financial base. So, too, in education the funds must be available for innovation, maintenance of existing quality, and 1979 1978 1977 1979-78 1978-77 (trengthening areas when appropnate.
Financial resources received Because universities follow financial reporting (excluding borrowings) practices vastly different from those in the Students:
business sector, the public is often confused Tuttion and fees
$ 66.9
$ 61.0
$ 57.5
$ 5.9
$ 3.5 wh:n attempting to analyze the overall financial Auxiliary enterprises 25.8 24.5 22.6 1.3 1.9 hzith of the institution. Unlike organizations in External sources:
the business sector, universities receive large Private gifts, grants, sums of money that must be used for purposes and contracts 40.4 34 8 29.8 5.6 5.0 specifieri by the donor or grantor. Further Federal government 94.8 79.8 69.3 15.0 10.5 restrictions may indicate that the funds received State and local government 67.0 62.1 54.1 4.9 8.0
- T**
tr2 not to be spent but are to be invested to cover investments:
U future needs. To recognize these differences, Current earnings 24.0 19.6 18.0 4.4 1.6 p higher education follows principles known as Special distribution of fund accounting that categorize the resources of investment income 2.4 2.4 G
th) university in four major fund groups-current Realized gain (loss) 6.1 (2.3) 0.5 8.4 (2.8) funds, endowment and similar funds, plant funds, Medical Service Plan 17.8 18.2 14.2 1.6 2.0 and student loan funds. While there is a tendency Other income 20.4 18.9 19.2 1.5 (0.3) to concentrate on results of operations as Total
$365.6
$314.6
$285.2
$51.0
$ 29.4 o
displayed in the current funds, it is important for tha reader to note the change in all fund groups, Resources expended not just for one year, but as an indication of Current fund expenditures tr:nds over longer periods of time. This review, and external debt service
$324.8
$291.6
$259 8
$ 33.2
$ 31.8 g
tiong with ine financial statements and Plant fund expense, the accompanying notes, is intended to improve maintenance and alterations 4.0 3.9 1.8 0.1 2.1 g
understanding of Cornell's fiscal health.
Other expenditures. net 0.3 1.3 3.2 (1.0)
(1.9)
Total
$329.1
$296.8
$264.8
$32.3
$ 32.0 Cverall Status and Financial Results other charges and ediustmente Plant additions charged to By any measure 1978-79 was a good year for the current operations S 9.6
$ 10.1
$ 7.7
$ (0.5)
$ 2.4 University. As shown in table 1, fund balances Equipment disposals and increased $48.3 million from the prior year. While write-downs (7.4)
(16.0)
(2.2) 8.6 (13.8) resources expended increased 11 percent, from Unrealized gain (loss) on
$206.8 million to $329.1 million, resources investments 96 (9.5) 4.4 19.1 (13.9) rectived hit an all-time high of $365.6 million, up
' $51 million from the prior year. As noted in the increase in fund balances S 48.3
$ 2.4
$ 30.3
$ 45.9
$(27.9) 1
l (principally for research), and earnings on investments, both realized and urirealized.
research, undesignated gifts, and unrestrictrd j
investments.
Endowment and similar funds grew 9.5 percent, to investment income. Designated funds are derived.
i
$322.9 million at June 30,1979. The growth in principally from special educational service Riffecting the continuing success of the $230 current assets was even greater, at 15.4 percent.
programs such as Summer Session and the million Cornell Campaign, table 2 ahows a 16.1 Externallong-term debt remained relatively Statler inn and also inclue1e the tuition paid by 1
percent increase in private support from 1977-78.
constant during the period. Reductions in external students in both the School of Business and f
to a new high of $40.4 million in 1978-79. The debt through normal debt retirement were offset Public Administration and the School of Hotel mijor increase occurred in gifts to current by the refinancing of the University's interest in Administraticn, which are operated as self-j operations for unrestricte<1 purposes as well as its IBM 370/168 computer under a saie-leaseback supporting units. In addition, campuswide service r
grv.ts, contracts, and other restricted gifts.
arrangement.
operations such as the computer center, utilities, i
the print shop, laundry, and others are treated as i
At year-end outstanding pledges for major gifts Current Operations business operations, with tne charges for j
were reported at $20 million. In addition, the their services within the University expected to
(
Development Office has been informed of future General purpose revenues are composed chiefly equal their total costs. These service operations j
bequests with a discounted present va!ue of $27.1 of tuition. New York State appropriations, are part of the designated fund category, and
[
million.
recovery of overhead costs associated with their revenues totaled $33.9 million for the year.
I In addition to the $9.6 million of additions to plant Table 2. Private Support (in Millions) i ch;rged to current operations, the University's net 3979 investment in plant was increased of $9.8 million g
g for capitalized expenditures of plant funds and l
g Ithaca Colleges College 1979 1978 1977
$2.3 million by debt reduction. Since these latter two items simply translate expendable funds into Current operations:
fixed assets, they are not reflected in the Unrestricted gifts
$ 7.2
$1.1
$0.7
$ 9.0
$ 7.5
$ 6.0 ttitement of financial activity.
Grants, contracts, and restricted gifts 10.9 4.2 6.2 21.3 12.7 13.1 In 1978 the University reduced its net investment Endowment funds 2.5 0.6 1.1 4.2 6.0 5.2 in plarit by $16 million, representing botn Living trust funds 2.5 0.1 0.1 2.7 4.5 1.7
-h equipment disposed of during the year and a Construction and equipment 3.1 0.1 3.2
~-
3.8 4.1 chnnge in the definition of the cost of individual Total
$26 2
$6.1
$8.1
$40.4 434.8
$29.8 squipment items from $100 to $300. In 1978-79 I
the Statutory Colleges changed their definition l
from $100 to $200 to conform with the capitalization policy of other New York Table 3. Analysis of Changes in Assets, Liabilities, and "Not Worth"(in Millions)
[
i St:te-funded institutions. As a result, equipment with an aggregate cost of $5.4 rMlion was deleted Change Change from the property accounts in 1978-79. Normal 1979 1978 1977 1979-78 1978-77 l
disposals during the year as well as the Current assets *
$ 96.5
$ 83.6
$ 73.9
$12.9
$ 9.7 continuing review of the Endowed equipment records led to an overall figure of $7.4 million for Long-term investments:
Endowment and similar funds 322.9 295.0 290.7.
27.9 4.3 equipment disposal and write-downs.
Student loans 13.6 12.0 11.8 1.6 0.2 Other 1.1 1.1 3.9 (2.8)
- Table 3 reflects the effects of the changes Plant 457.7 445.1 437.8 12.6 7.3 described above on the University's assets, liabilities, and " net worth" (while the term " net Total
$891.8
$836.8
$818.1
$55.0
$18.7 worth" is not normally used in conventional fund Short-term liabilities
$ 19.3
$ 17.2
$ 15.2
$ 2.1 '
$ 2.0 accounting, the total of all fund balan:es is often Deposits and deferred revenues 5.1 3.4 2.9 1.7 0.5 '
viewed as an appropriate simile). Aided by a Long-term debt (external) 68.7 68.0 53.3 0.7 14.7 much-improved stock market as well as s,uccessful Other long-term liabil6tses 16.8 14.6
'15.5 2.2 (0.9) -'
fund-raising efforts, Cornelfs, net worth increased $48.3 million during the year ended Total
$109.9
$103.2
$ 86.9
$ 6.7
$16.3.
June 30,1979, as contrasted with an increase of Net worth
$781.9
$733.6
$731.2
$48.3
$ 2.4 only $2.4 million in the prior year. The year Note: snterfund advances are excluded.
1977-78 was constrained by both the large write-g down in equipment and $11.8 million of losses on g
2
= -.
~
Auxilirry e nterprises include housing, dining, a:wt these administritiv3 costs attributabl3 to the y ar incr7.csed by over $1.5 million. With the'
' the Campus Store, which charge fees (totaling -
statutory units. The final shortfall in general exception of the heating plant and the Office of
$29.5 million in the past year) directly related to purpose funds of $349.000 contrasts with an Computer Services, cli enterprise and service
. the cost of service. Restricted funds are originally budgeted deficit of $2.15 million. This operations operated at t'reak-even or better.
principally those received for federal or state occurred in spite of the division absorbing half of research grants or contracts ($70.6 million) but a $1.4 million budget overrun in connection with Medical College
' also include private gifts, grants, and contracts the transfer of computing for the Medical College
. ($21.3 million) and investment income ($11.9 from New York City tu the Ithaca computing While a deficit in general purpose budget
- million) restricted by donors to a particular center. Tuition revenues were up over $5 million, operations of $2.3 million can hardly be classified '
college, function, or activity, and indirect cost recovery on spon?9 red as good news, the original plan had indicated a -
programs increased by $1.1 million. TharAs to shortfall over $3.5 million. Had the college not As reflected in table 4, the results of current tight expenditure control, particularly in tiee experienced the unexpected problems in its
. operations for the year resulted in a net increase colleges, budget savings targets were exceeded computing operations mentioned above, the final in current fund balances for the entire University by most units, and funds carried forward deficit would have been significantly lower. Main cxceeding $6 millioni Of this increase $2.293 (reappropriated) for expenditure in the following reasons for the improvement were increased -
. r,iillion was attributable to a change in the accounting for investment income. In prior years the University had accrued investment income Table 4. Current Operations (in Thousands)
. primarily only on fixed income securities expected to be held for short term. With the rapid Designated increase of interest rates, there have been General Purpose (Undesignated) Funds Funds and substantial changes in the University's investment Endowed Medical Statutory Auxiliary Restricted portfolio, and it appears desirable to reflect all Ithaca College Colleges Total Enterprises Funds Total investment income when earned rather than when Total revenues and other addit ons
$ 82.011 $ 12.808 $ 75.534
$ 166.378* $ 66.522 $107,740 $ 340.641 received. Total revenues of over $340 million Expenditures and manuatory exeeded expenditures and m' ry transfers by traasfers (77.067) (14.242)
(73.905)
(161239)* (67,802)
(97.469), (326.510) a epproximately $14 million.11-e University's other transfers ar,d adjustmentsi tot ~l return formula. $811, COL
.qvested capital invested capital apple d to operations s
wis applied to operations. As is discussed in a a
under total return formula 257 34 3
294 97 420 811 lit:r section on investment perfofma ce, this will Spendable gifts allocated to
' htllYe'turnIoncIpIiIthe f r7 tion
(
(
('
('
f Tr ns er t a t fun ss f r mvestment income. The sum of $8.883 million of Additions and replacemer:ts (388)
(519)
(406)
(1.313)
(1.618)
(60)
(2.991) expendable gifts received during the year was Internal debt service (34)
(34)
(570)
(604) trin,sferred from current funds to endowment and General purpose funds designated similar funds to function as endowment for the and other transfers. net (3.358)
(362)
(2.164)
(5.884) 6.401 669 1.186 production of future income. As noted in table 4
- over $6 million of the total was gifts for restricted Revenue over (under) expenditures and 1
purposes. An additional $3.6 million was t,ansfers before actions to transferred to plant funds $2.931 million for cover deficit
$ (426) $ (2.333) $ (936) $ (3.695) $ 2,351 $ 4.993 $
3.649 additions and replacement of plant and Effect of realizing gain on investments equipment and $604.000 for the retirement of pioviously reported as unrealized intirnal advances for construction and other plant gain purposes.
Surplus (deficit) prior to effect of change in method of accounting for investment income
$ (349) $ (2.333) $ (936) $ (3.618) $ 2,351
$ 4.993
$ 3.726 Endowed Ithaca Cumulative effect of change in method of accounting for investment income 509 117 626 109 1.558 2.293 l
The general purpose revenues and expenditures for this major dii.sion include not only the Surplus (funds applied to cover deficit) 160 $ (2.216) $ (936) $ (2.992) $ 2.460
$ 6.551 5 6.019 endowed rolleges at l!haca but also the central University administration. The total
- Total revenues. expenditures, and mandatory transfers are net of $3 975 million of accessory instruction, which represents rtvanues for Endowed Ithaca include $6.1 million net charges from the Endowed Colleges at Ithaca for instruction of students enrolled at the Statutory Colleges, of tuition paid by students enrolled in the On a combined University basis this item is elim..ated to avoid duplication of revenues and expenditures. -
ntitutory colleoes, representing a portion of -
l 3
cxternal support for biomedical rese1rch tred the operttions rnd miint:ntnca between 1976-77 Th3 mirktt vilue of th3 Univ:rsity's endowment resulting increase in recovery of indirect costs, and 1977-78 reflected not only the greater nnergy and similar funds at June 30,1979, finally higher investment income, and greater un-costs but also a step-up in maintenance recovered past the previous high of June 30, restricted gifts. At the same time, the college expenditures at the endowed colleges.
1973. While all divisions showed increases during '
inaugurated a program of tight fiscal control of the past year, most of the increase occurred in cxpenditures including delays in filling vacant Resources Available for Expenditures Endowed Ithaca. Approximately $12 million was positions, postponement of the hiring of new from market value gains, $2.5 million from gifts department chairpersons, and more aggressive Table 6 summarizes the changes in the balances for endowment, and $7.2 million from spendable i
efforts seeking external funds. The Cornell in endowment and similar funds over the past gifts added as funds functioning as endowment.
Medical Group billed patients a record $17.8 several years for each of the major divisions of For the Medical College, gifts and other additions million, up $1.6 million over the prior year. In the University. (Funds available for use v6ere approximately equal to withdrawals for
]
addition to supplying over $2.5 million of faculty throughout the University are included under ongoing operations; market increases were $2.2 i
salary support, the Group revenues increased
" Endowed Ithaca.")
million.
college funds by $267,000 and departmental funds by $487,000.
Table 5. Expenditures and Mandatory Transfers for Current OperaHons @ Mons)
Statutory Colleges 1979 1978 1977 The undesignated funds for the statutory units consist of deans
- funds plus federal and state Academic programs, direct costs:
appropriations. White the total of the Instruction
$ 66.5
$ 61.0
$ 57.2 undesignated funds decreased $936,000 for the Resaarch 90.6 75.1 65.1 s
year, college-desigrated funds (funds available Publ,c service 25.9 23.9 20.8 for use by the departments) increased almost Total
$183.0
$160.0
$143.1
$700,000. State appropriations exceeded the support activities.
original budget by over $3 million because of Libraries and other funds received for salary increases ($2.092 direct academic support
$ 21.8
$ 19.7
$ 17.5 million), new funds ($533,000), and a Student services 11.3 9.9 9.4 supplemental budget appropriation ($494.000).
Plant operations and maintenance 23.5 21.1 18.1 Departmental revenues from sales and services Institutional support
_ 23.4 21.1 18.3
(
were up over $1 million. As footnoted in table 4, the totals of revenues, expenditures, and Total
$ 80.0
$ 71.8
$ 63.3 mandatory transfers are net of $3.975 million of e
Scholarships and fel80wships
$ 18.0
$ 17.3
$ 15.7
(
~~
accessory instruction. While students are free to tak3 courses in all colleges, students enrolled in Auxiliary enterprises 26.0 24.9 22.7 l
Medical Service Plan 16.6 15.3 13.2
{
the statutory colleges take mora courses in the endowed colleges than vice versa. During 1978-79 Other 2.9 2.3 1.8 the statutory cJileges reimbursed the endowed Total
$326.5
$291.6
$259.8 colleges for a net of over 38,000 credits taught.
Nore; For comparative purposes, certain 1977 figures have been restated to indicate organizational changes.
Trends in Current Expenditures As shown in table 5, the direct costs of academic programs increased over 14 percent while support Endowed Medical Statutory activities incr;sased approximately 11 percent.
Ithaca College Colleges Total Funds expended for research showed the largest increase in direct costs. As noted previously, 1973
$217.9
$48.5
$10.3
$276.7
- federal funds received for research increased over 1974 182.2 41.3 9.0 232.5 20 percent for the entire University during 1975 198.1 44.9 11.0' 254.0 1978-79. The growth in expenditures for plant 1976 212.4 46.9 12.5 271.8 operations and maintenance slowed although 1977 211.4 46.7 13.4 271.5 rismg fuel costs served to counterbalance the 1978 207.5 44.0 14.0 265.5 University's efforts at energy conservation. The 1979 226.2 45.5 16.3 288.1 large increase in expenditures for plant Nore: As of June 30 in each year.
4 J
Table 7 reflects the supplementil system for Table 7. Endowment and Similar Funds (in M##ons) classifying endowment and similar funds adopted last year. Of particular significance was Endowed Medical Statutory Total Total that undesignated, spendable balances for fthaca College Colleges 1979 1978
- Endowed Ithaca increased $5.2 million during the True endowments
$158.1
$30.2 59.5
$197.8
$184.0 year. The total of true endowment funds for the University increased $13.8 million.
Funds functioning as endowments-not intended to be expended' investment Performance egah restricted as to use 32.8 5.4 6.4 44 6 36 2 Designated as to use 9.6 0.4 10.0 9.0 The major portion of' Cornell's funds is invested Undesignated u
u 1.0 in one of three pools, comparable to mutual Other spendable funds funds, and are described in detail in note 2 to the funcuoneg as endowments:
ilnancial statements. The Endowment, Capital, Security pledges and deposits 4.1 1.1 5.2 6.6 Spec tuations:
cnd, Life Income Fund pools operate on a unit basis, and each unit has a market value equal to its proportionata share of the underlying assets of and partnerships 1.9 2.2 41 7.8 the pool's investment. The unit value of these Gifts pending donor pools over the past seven years, compared with designation 0.5 0.5 0.4 major stock and bond indices, is shown in table 8.
Anonymous 30Menon-As described in note 2 to the financial statements, academic program support 1.0 1.0 1.1 the University discontinued both the Endowment Undesignated spendable balance.
Fund and the Capital Fund pools at June 30, Unrestricted reserve 8.0,
6.6 14.6 6.2 1979, and the funds invested were transferred Other funds 9.1 9.1 14.2 tither to a newly created Long Term investment Total
$226.2
$45.5
$16.3
$288.1
$265.5 -
Pool or to the existing Short Term investment Pool.-
The year 1978-79 was a successful one for Table 8. Investment Results Cornell's investments. The total funds under direct management of the investment Office rose Unit Market value to a new high; unit values in both the Endowment Endowment Capital Life income Dow Jones Standard Fund and the Capital Fund pools improved; and Fund Pool Fund Pool Fund Pool (Bond Average) and Poors income production established new re, cords. The 1973
$2.22
$2.16
$1.02 74.19 104.26 ym 1979 was a good one for growth an funds 1974
.83 1.79 0.92 67.66 86.00 subject to living trust agreernents. At June 30, 1979, the Trust Office administered a total $18.5 1975 1.97 1.83 0.97 69.32 95.19 million 262 alumni and friends of the 2
77 04 28 1978 2.11 1.44 0.99 87.34 95.53 1979 2.21 1.63 0.98 85.70 102.91 Note: As of June 30 in each year.
5
Concluding Comments Del 0itte in summary, 1978-79 was a good year. All Cv;sions showed year-end results substantially better than originally budgeted. The recovery of the stock market and the continued generosity of Two Broadway alumni and friends of the University led to New York. New York 10004 significant growth in invested funds. While inflationary pressures continue to keep the f,j,f,22fs University in a cost squeeze, we enter the new year in sound fiscal condition. Particularly noteworthy is the fact that the amount added to investment for the production of future income AUDITORS
- OPINION substantially exceeded withdrawals for operations and capital needs. Budget projections for 1979-80 are in balance for Endowed Ithaca. The Medical The Board of Trustees College contiriues to have serious financial of Cornell University:
problems, and it is hoped the projected deficit for fiscal year 1980 will be substantially diminished Ue have examined the balance sheet of Cornell University by tight operational controls. While r.ational and as of June 30, 1979 and the related statements of changes international fiscal concerns, garticularly rising in fund balances, of non-mandatory transfers among funds,
, flation, give cause for concern, we face of current funds resources made available and applied and in the decade ahead confident that we will be able of current funds expenditures for the year then ended. Our to maintain the Un.versity's position of excellence.
examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
John S. Ostrom University Controller In our opinion such financial statement. present fairly the financial position of the University a June 30, 1979 and the changes in its fund balances and its current funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting prin-ciples.
Also, in our opinion such accounting principles have been applied on a basis consistent with that of the preceding year except for the changes, with which we concur, in the method of reporting investment income and in the accounting for equipment of the Statutory Colleges, as described in Notes 1C and ID to the financial statements.
1 ir f
September 18, 1979
}
s h
k
)
6
)
A5.
g M
' Exhibit A '
Selence Sheet pn Thousende) 1 June 30,1979
.. With Comparative Amounts for June 30,1978 Endowment and Current Funds Similar Funds Plant Funds Student Loan Funds Total c
b 1979
-1978 1979 1978 1979 1978' 1979 1978 1979 1978 5
m
+.
~
s[
J Cash and' tempora'y investments '
V-
.. '. (notes 18, 3,4)
$31,512
$28,567
' $ 32,010 - 3 33,772
$ 18,130
$ 17,640
$ 2,465 -
$ 2,359
$ 84,117
$ 82,338
' ~
. Investments (notes 1B,2,3,.4,6)
.453 458 290,943 261,195 700 700 292,096 '
262,353 Accounts receivable (note 5):
[
i
.. 'i e g.,
- Government agencies 12,247 9,680 12,247 9,680 Patients 3,387 3,615
- 3,387 3,615 ', %[
Accrued investment income (note 1C) 3,891 700 3,891 70G_ A Other 12,471 9,132 12.471 9,132.
State appropriations for construction 2,497 3,210 2,497 3,210--
?g Student loans receivable (note 5) -
L 13,580 -
12,059 13,580 12,059 N-Inventories (at cost) and deferred charges 9,805 8,636 9,805 8,636 LOnd, buildings, and equipment
--y, (notes 1D,8)
J
'457,740 445,131 457,740 -
445.131
_(_,
~^
' Advances for plant (note 9) 2,312 9,624 424 468 (2,736)
(3,992) 7%
Total assets
$76,078
$64,312
$323,377
$295.435
$476,331
$462,689
$16.045
$14.418
$891,831 - $836,854.
Liabilities y
Accounts payable and accrued expenses '
$19,288
$17,163
$ 19,288
$ 17,163 Deposits and deferred revenues 4,906 3.423 200 5,106 3.423 Employee pension funds (note 10)
$ 14,009
$ 12,002
_ 14,009 12,002
. 2.750 -
2,616 Funds held in trwt for others 2,750 2,616 w
Bonds, 7ortgdes, and notes payable (nots'7}-
68,713
$ 68,011 68,713 -
68,011
~
Total liabilities
$24,194
$20,586
$ 16,75f_.$ 14.618
$ 68,913
$ 68,011
$109,866
$103,215
' Fund balances (note 1)
Unrestricted funds:
Undesignated
$ 1,818
$ 2,671
$ 1,818
$ 2,671 Dea;gnated for specific purposes 15,914 13,880 15,914 13.880 Auxiliary enterprises 1,837 1,411
-1,837 1,411 Restricted funds 32,315 25,764
_ $ 8.104
$ 5,571 38,419 31,335 Loan funds refundable to U.S. govethment 9,941 8,847 9,941-8,847 '
Endowment funds
$197.774
$183,977 197,774 183,977.
Funds functioning as endowment 90,319 81,502 90,319 81,502 Expendable plant funds (note 8)
$ 25,911
$ 27,672 25.911 27,672 w
Net investment in plant 381,507 367,006 381,607 367,006 V
Funds subject to living trust agreements 18,525 15,338 18,525 15.338 Total fund balances
$51,884
$43,726
$306,618
$280,817
$407,418
$394,678
$16,045
$14,418
$781,965
$733,639 Total liabilities and fund balances
$76,078
' $64,312
$323,377
$295.435
$476,331
$462.689
$16,045
$14.418
$891,831 - $836,854 See accompanying notes to financial statements.
7 l
7 Exhibit B Curr!nt Funds Er dowment and Simil:r Funds Student Statement of Changes in Fund Balances (13 Thousands)
Functioning as Living Plant Loan For the Year Ended June 30,1979 Unrestricted Restricted Endowment Endowment Trust Funds Funds Funds Total Revenues and other additions Tuition and fees
$ 66,945
$ 66,945 State appropriations 56,789
$ 2,893 59.682 Federal appropriations 12.575 573 13.148 Federal grants and contracts 15,176 64,892 710
$ 955 81.733 Stato grants and contracts 806 5,790 10 6,606 Local grants and contracts 724 25 749 Private gifts, grants, and contracts 8,962 21.286
$ 4,264
$ 2.673 3,162 17 40,364 I
Income from investments (note 1C) 9,841 11.947 155 1,312 729 23,984 Tirminated living trust funds 111 10 121 New York Hospital contribution toward shared costs 1.878 776 2.654 Sales and services of educational departments 6,896 989 7.885 Group medical practice fees 17,781 17,781 Sales and services of auxiliary enterprises 25,790 25,790 Other sources including university internal services net of interdepartmental charges 8,891 763 46 45 40 9,785 Additions to plant charged to current funds 9,635 9,635 Net realized gain on investments 460 3.126
$ 2.173 338 6.097 Net unrealized gain (loss) on investments 5.632 3.707 323 (53) 9,609 Total revenues and other additions
$232,901
$107 740
$ 13.187
$ 5.880
$ 3.380
$ 17,739
$ 1,741
$382,568 Esponditures and other deductions Educational and general expenditures
$200,144
$ 97,391
$297,535 Auxiliary enterprises expenditures 23,163 78 23,241 Noncapitalized expenditures for plant
$ 4.066 4,066 Interest paid on debt 4,145 4.145
. Reduction of plant facilities (note 10) 7,355 7,355.
Terminated living trust funds -
$ 121 121 Other deductions 13 72 77, 162 Total expenditures and other deductions
$223,307
$ 97,469 13
$ 193
$ 15.643
$336,625 Transfers among fundo-additions (deductions)
Mandatory transfers to:
Plant funds for external debt service
$ (5,631)
$ 5.631 Loan funds for matching grants (103) 103 Endowment funds from student loan repayments 246 (246)
Total mandatory transfers
$ (5,734) 246
$ 5.631
$ (143)
. Nonmandatory transfers (see exhibit B-1)
$ (2,988)
$ (5.278) 334
$ 2,950
$ 5.013
$ (31)
(
Total transfers
$ (8.722)
$ (5,278) 580
$ 2.950 -
$ 10.644
$ (174)
. Net change in fund balances before the cumulative effect ' change in accounting method 872
$ 4,993
$ 13,767
$ 8.817
$ 3,187
$ 12,740
$ 1,567
$ 45.943 Cumulative effect on prior years of the change in method of accounting for investment income (note 1C) 735 1.558 30 60 2.383' Net change in fund balances
$ 1,607
$ 6.551
$ 13,797
$ 8.817
$ 3.187
$ 12.740 -
$ 1,627
$ 48,326 Fund Selences, June 30,1978 17.962 25,764 183.977 81.502 15.338 394.678 14,418 733,639 Fund balances, June 30,1979
$ 19.569
$ 32.315
$197.774
$90.319
$18.52G
$407 418
$16.045
$781.965 See accompanying notes to hnencial statements.
8 G
J
Exhibit B-1 Stoesment of N. -_ _ f _ _, Transfers Among Funds (in Thousands)
'. For the Year Ended Jutie 30,1979 Current Funds Unrestricted Total Endowment and Similar Funds Student Auxiliary Current Functioning Uving
~ Plant Loan Undesignated Designated Enterprises Total Restricted Funds Endowment as Endowment Trust Funds Funds Funds Transfers among current funds As subsidies for student unions and computer services
$(2,294)
$ 699
$ 1,595 Amounts designated for specific purposes (2,377) 2,259 7 $ (111)
$ 111 E
Net change in year-end undesignated balances reappropriated for expenditures in succeeding year (1,431) 1,431 Total
$(6,102)
$ 4,389
$ 1,602
$ (111)
$ 111 Transfers from current to other funds To plant funds for:
'j, Additions and replacements
$(1,313)
$ (639)
$ (979) $(2.931)
$ (60) $ (2,991)
$2,991
.. Internal debt service (34)
(479)
(91)
(604)
(604) 604 To funds functioning as endowment (1,897)
(679)
(2,576)
(6.307)
(8.882)
$ 8,883
- Other (86)
(64;
$ 85
$1 Total
$(3,244)
$(1,797)
$(1,070) $(6,111)
$(6,453) $(12,564)
$ 85
$ 8,883
$3,593
$ 1 Transfers to current from funds functioning as endowment Portion of investment gains distributed under total return formula
$ 294 95 2 $ 391
$ 420 811
$ (811)
To tiiminate year-end Medical College deficit in undesignated current fund b lances 2,216 2,216 2,216 (2.216)
Other 217 410 627 644 1.271 (1,268)
$ (3)
' Total
. $ 2.727
$ 505 2 $ 3.234 9 1,064
$ 4,298
$(4,295)
$ (3)
Transfers not affecting current funds To plant funds for additions and replacements
$(1,418)
$1.418 Other
$249 (220)
$(29)
Total
$249
$(1,638)
$1.418
$(29) lotal nonmandatory transfers
$(6.619)
$ 3,097
$ 534 $(2,986;
$(5,278) $ (8.266_)
$334
$ 2.950
$5,013
$(31)
See accompanying notes to financial statements.
9
i Exhibit C Statement of Current Funds Resources Made AvsHable and Applied (In Thousands)
For the Year Ended June 30,1979
. With Comparative Amounts for the Year Ended June 30,1978 Unrestricted Auxiliary 1979 1978 Undesignated Designated Enterprises Tota!
Restricted Total Total i
Resources made Milable Revenues and ad ' >ns (see exhibit B and note 12)
$166,379
$40,635
$25,887
$232,901
$107,740
$340,641
$295,746
.f Nonmandatory transfers (see exhibit B-1):
From other funds (principally from funds functioning as endowment) 2,727 505 2
3,234 1,064 4,298 3,709 Among current funds 4,389 1,602 5,991 111 6,102 4.531
$169,106
$45,529
$27,491
$242,126
$108,915
$351,041
$303,986 P;rtion of beginning of year fund balance used 852 852 852 658 Cumulative effect on prior years of changes in accounting methods (note 1C) 627 99 9
735
$ 1,558 2,293 137 Total resources made available
$170.585
$45,628
$27,500
$243,713
$110,473
$354,186
$304,781 Resources applied Expenditures and mandatory transfers:
- Educational and generat Expenditures (see exhibit C-1)
$160,026
- " 118
$200,144
$ 97,391
$297,535
$264,395 :
Mandatory transfers to:
Plant funds for external debt service 1,090 1,6o, 2.770 2,770 2.159 Loan funds for matching grant requirements 103 103 103 123-Total educational and general
$161,219
$41,798
$203.017
$ 97,391 -
$300,408
$266,677 Auxiliary enterprises:
Expenditures 20
$23,143
$ 23.163 78
$ 23,241
$ 22,120 Mandatory transfers to plant funds for external debt service 2,861 2,861 2,861 2,826 Total auxiliary enterprises 5
20
$26.004
$ 26.024 78
$ 26,102
$ 24,946 :
Total expenditures and mandatory transfers
$161.239
$41,798
$26,004
$229.041
$ 97,469
$326,510
$291,623 Nonmandatory transfers (see exhibit B-1):
$ 6,102
$ 6,102 -
$ "6,102 4.531 Among current funds To other funds (principally to plant funds and funds funcSoning as endowment) 3,244
$ 1,797
$ 1,070 6,111
$_ 6,453 12,564
'5,998 Total expenditures and transfers
$170,585
$43,595
$27,074
$241,254
$103,922
$345,176
$302.152 Added to fund balance for future use 2,033 426 2,459 6,551 9,010
-2,629 Total resources applied
$170,585
$45.628
$27,500
$243,713
$110.473 -
- $354,186
$304,781 See accompanying notes to financial statements.
10'
Exhibit C-1 Statement of Current Funds Expenditures (In Thousands)
For the Year Ended June 30,1979 With Comparative Amounts for the Year Ended June 30,1978 Unrestricted Auxiliary 1979 1978 Undesignated Designated Enterprises Total Restricted Total Total Educational and general Instruction S 47,069
$ 7,469
$ 54.538
$11,966
$ 66,504
$ 61,026 Research 21,853 1,782 23,635 67,005 90,640 75,083 Public service 15,426 4,098 19,524 6.356 25.880 23,937 Academic suoport 13,145 7,689 20,834 1,000 21,834 19,714 Student services 9,914 867 10,781 530 11,311 9,939 Institutional support 21.723 1,473 23,196 253 23,449 21.104 Oper: tion and maintenance 23,536 (751) 22,785 578 23,363 21.099 Scholarships and fellowships 7.350 878 8,238 9,703 17,941 17,190 Group medical practice 16,613 16,613 16,613 15.303 Total educational and general
$160,026
$40,118
$200,144
$97,391
$297,535
$264,395 Auxiliary enterprises 20
$23,143
$ 23,163 78
$ 23,241
$ 22,120 Total current funds expenditures
$160.046
$40,118
$23,143
$223,307
$97,469
$320,776
$286,515 See cccompanying notes to financial statements.
Notes to Financial Statements
- 1. Summary of Significant Accounting the University has managed the funds available in providing the services, except that income earned Policies accordance with the terms and conditions under from the investment of endowment and similar which they were received. The accounting funds is accounted for either in the fund group to A. Principles of Combination method used is known as fund accounting in which it is restricted or, if unrestricted, as From a fiscal viewpoint, Cornell University which the University's resources are divided into revenues in unrestricted current funds.
i major fund groups -Current Funds, Endownient ndo ed it aca, u es the End d
and Similar Funds, Plant Funds, and Student Current funds are those funds available for Loan Funds.
current operating purposes. All unrestricted colle9es, University central administration and the revenues are reported as additions to current euxiliary enterprise and service operations for the Within each fund group, fund balances restricted funds in the year received or accrued. Only that Ithaca campus, the Medical College at New York, by outside sources are so indicated and are portion of restricted funds actually expended cnd the Statutory Colleges at Ithaca. While these distinguished from unrestricted funds designated for the purposes designated by the donor or units operate as self-supporting entities with fund for specific purposes by the Board of Trustees.
grantor is considered as revenue. (See Note 12.)
bal:nces relating to one of the units generally not Externally restricted funds may be utilized only in Kv;ilable to the other units,, the only legal accordance with the purposes established by the Endowment funds are created when a donor limitttions pertain to certain donor-restricted donors and are reported separately from those specifies that the fund is to be invested and, funds and funds of the Statutory Colleges.
unrestricted funds over which the Board of generally, only the income earned is to be Specifically, the laws establishing the Statutory Trustees retains control.
available for expenditure. From time to time the Colleges at Ithaca prohibit the use of funds Board of Trustees may choose to invest sitributable to those colleges by other segments investments in marketable securities are stated at otherwise spendable funds for the production of of the University.
rriarket value. Realized and unrealized gains and income. These are known as funds functioning as losses on investments are accounted for in the endowment. The income from both true B. Fund Account.ing fund group holding such assets. Income earned endowment and funds functioning as endowment A principal concern of college and university from investments or from services rendered is may or may not have been restricted by the fin:ncial reporting is stewardship reporting-how accounted for in the fund owning the assets or original donor. If the Board of Trustees should 11
choose to specify a purpose wh:rs nona his been titl3 tre included in physical plint as follows:
based on a physical inv2ntory compl;ted by stited by the original donor, these revenues are (1) land and buildings in the amount of outside consultants. The net effect of these cllssified as designated funds. The principal of
$98.473,010 at June 30,1979, which are leased adjustments, a reduction of $2,911,000, is funds functioning as endowment is expendable from the Dormitory Authority of the State of New included in reduction of plant facilities in the because the action which led to the investment of York, the titles to which will pass to the University Statement of Changes in Fund Balances.
the principal can be reversed at a future date.
upon retirement of related indebtedness (see Note 7);and(2) land,buildingsandequipmentof the At each year-end, the University recognizes C, Accounting Changes and Reclassifications Statutory Colleges aggregating $130,392,701 at unexpended budget commitments of unrestricted Effective July 1,1978, the University changed its June 30,1979, the acquisition cost of which was current funds for Endowed Ithaca and the Medical m!thod of reporting investment income of its borne primarily by the State of New York.
College by transferring an equivalent amount from undesignated to designated fund balances.
Endowment Fund Pool and Capital Fund Pool from the cash to the accrual basis, the basis used Physical plant and equipment are stated At the beginning of the following year, this pr;,viously in reporting income of its Short Term prircipally at cost at date of acquisition or at fa,r transfer is reversed and the expenditures are market value at date of donation. As,s customary reported as expenditures of undesignated current i
Investment Pool and major separately invested for educational institutions, deprec,ation has not funds. Such commitments amounted to i
funds. The reporting of investment income of been recorded on buildings and equipment.
$3,041,841 and $1,610,762 at June 30,1979 and
- th;se major investment pools on the cash basis in thy past had not resulted in any material Expenditures associated with construction of new 1978, respectively.
facilities are shown as construction in progress changes m. in reported annual income. However' difference until such projects are completed, When current Federal and state appropriations available to the portfol.io composition in response t funds are used to finance additions to plant, the Statutory Colleges for operating purposes for the investment market conditions as well as the amounts are reported as expenditures in the case ensuing fiscal year are not included in the inflationary impact on dividends made the of normal replacement of equipment and library accompanying financial statements. Such appro-(doption of the accrual method appropriate for a books and as transfers to plant funds in the case priations totaled $47,363,744 and $42,957,159 at of provision for debt amortization and interest, June 30,1979 and June 30,1978, respectively, i
t ent performan. The change in equipment renewal and replacement, and new fccounting has resulted in a one-time increase in construction. See Note 9 regarding plant funds investment income of $2,383,000 in the year ended June 30,1979. This amount, which borrowings from current funds.
The University generally pools its investments on a market value basis with each individual fund represents the accrued investment income as of Endowed Ithaca began an intensive review of the June 30,1978, is shown as a separate item in the equipment inventory during 1s78. As a result of entering or withdrawing from a pool based on its financial statements in order to avoid distortion this review and a physical ini entory, approxi.
share of the market value of the pool's investments.
of the investment income for the year.
mately $1,400,000 of paviously capitalized 9
Until June 30,1979, the University maintained the Effective July 1,1977, the University adopted h7 uc amount s n ud d n ucti s U*ing four,nvestment pools as well as -
i the practice of reporting its investments in plant facilities in the Statement of Changes in invest.ing the principal of certain funds separately, mirketable securities at market value. Such Fund Balances. During 1978 Endowed Ithaca investments previously had been reported at cost wrote off $14,900,000 of equipment including an Endowment Fund Pool-managed to produce a or market value at date of donation. The estimated $10,000,000 as a result of an increase in reasonable and growing current return, while at -
cumulative effect of this change on current funds, the minimum unit value for capitalization of the same time, striving for capital appreciation at representing the unrealized net gain on current equipment. It is anticipated that this ongoing least sufficient to offset inflation. Only the income funds investments in marketable securities at July review will be concluded in 1980.
earned by funds invested in the pool was 1,1977, is shown separately in the comparative available for expenditure. The interest and cmounts for 1978 included in the Statement of Effective July 1,1978, the Statutory Colleges dividends distributed amounted to $.135 and 5.12 Current Funds Resources Made Available and increased the minimum unit value for a unit in 1979 and 1978, respectively, a total of
- Applied, capitalization of equipment from $100 to $200 to
$11,756,016 and $10,167.911, respectively.
conform with the capitalization policy of other Certain reclassifications of 1978 amounts have New York State funded institutions. Concurrently, Capital Fund Pool-consisting of a variety of been made for comparison with the 1979 previously capitalized equipment with a unit funds, the principal of which was spendable. The ;
presentation.
value of less than $200 and an aggregate cost of Trustees declared a spending rate each year D,'Other
$5,423,000 was deleted from the property which included both interest and dividend income accounts. The amount of equipment purchases earned and some portion of the accumulated Expendable plant funds include construction in during 1979 which were not capitalized because gains attributable to the investments. The Pool progress, funds held for future plant expansion, of the policy change was not material. Durin9 has been managed on a " total return" basis. For Lnd funds relating to debt retirement. Certain 1979 the Statutory Colleges also increased the the years ended June 30,1979 and 1978, the properties to which the University does not.have carrying value of their equipment by $2,512,000 12
F
- Board 'of Trustees tuthorized distribution) from.
Srparatzly Inv:sted Portfolio-consisting of
' The Long Term investment Pool includes true
- the Capital Fund Pool of $.10 and $.115 per several types of funds which for legal or other.
endowment funds and such funds functioning as ?
' income share or a total of $3,821,727 and reasons, or by request of the donor, could not endowment and other expendable funds which
$5,302,533, respectively These amounts were participate in any of the investment pools. In
' are not expected to be expended for at least three1 equal to 6.1% and 6.3% of the average monthly many cases, the University has a remainder
. years. The objective of the Pool is to produce a market value for the preceding five year period.
interest in the principal with payments made to reasonable current return coupled with capital
' Frr 1979 and 1978, the amounts so authorized others for specified periods of time. In addition,
. appreciation. To meet the requirements for
- cxceeded dividends and interest earned by the the University has chosen to separately invest
. income and safety of principal, it is intended that
' pool's investments by $1,014,902 and $2,479,990, certain major expendable funds to maintain the pool normally will operate as a " balanced
' respectively, and such excesses represent a liquidity.
. fund" and concentrate investments in high quality, 1
portion of net gains both realized and unrealized.
readily marketable securities, Lifilncome Fund Pool-consisting of donated concerning the Endowment, Capital, and Life The Short Term Investment Pool includes current -
~
a fundsithe income of which is payable to one or income Fund pools.
cash balances invested for the production of L more beneficiaries dunng their lifetime. On the income and other funds which are expected to be
. termination of life interests, the principal becomes.
Effective June 30,1979, both the Endowment expended within three years. The objective of ;
cv;ilable for University purposes which may or.
Fund and Capital Fund pools were discontinued this pool is to produce a high level of income m;y not have been restricted by the donor, and, after appropriate review, the funds invested while protecting principal value. The pool therein were transferred either to a newly created normally will be invested in marketable, prime'
- Shorf Term Investment Pool-consisting of Long Term investment Pool or to the existing quality, debt securities, at least 50% of which unexosnded cash balances invested solely for the Short Term investment Pool in accordance with mature within three years.
. production of income and preservation of the objectives set forth below. The Life income principal. Funds invested in the pool generally Fund Pool and the Separately invested Portfolio
- 3. Collateral Held for investments Loaned to.
Twers anticipated to be expended in the near were not affected by this change-Brokerage Firms future..
Investment securities having a market value of
$17,896,755 at June 30,1979 and $8,918.063 at Table 1. Summary Information-investment Pools June 30,1978 were loaned to various brokerage firms. The securities are returnable on demand Net Gain Market and are collateralized by cash deposits and U.S Government securities of $18,468,627 in 1979 and Market Cost (Loss)
Price Number n
co e a h
(in Thousands) (in Thousands) (in Thousands) per Unit of Units Endowment Fund Pool investment pool owning the securities loaned. For End of year
. $195,718
$176.502
$19.216
$2.21 88.524.949 financial statement purposes, the investment.
Beginning of year 181,612 168,062 13.550 2.11 86,054,104 assets were reduced by the liability to the brokerage firms for the collateral.
Unrealized net gain for year 5.666 Rxtized net gain for year 3,115 The University sells options on certain of its Net gain for year
$ 8,781 securities. The unexpired option premiums, which amounted to $270,683 at June 30,1979, and Capital Fund Pool
$152,676 at June 30,1978, have been treated in End of year.
62,377 54.219
$ 8,158 1.63 38.279.924 the accompanying financial statements as a Beginning of year 61,650 59,773 1.877 1.44 42.674,785 reduction of total value of assets held.
Unrealized net gain for year 6.281
- 4. Book Value of Investments
- Rrlized net gain for year 1.425
- Net gain for year S 7,706 The approximate' book value of investments at June 30,1979 and 1978 is shown in table 2. The Ufo income Pool book value of temporary investments approxi-End of year -
3.102 3,222
$ (120)
.98 3.212,431 mates market value for both years.
Beginning of year 1,8a6 1,957 (71)
.99 1,896,499 investments held by the University consist
< Unrealized net loss for year (49) principally of stocks and bonds, including U.S.
Rellized net loss for year (10)
Government securities, except for $3,346,536 at Net loss for year
$ (59) i
-13
June 30,1979 and $3,602,863 tt Juns 30,1978 of Under (greem nt with ths Dormitory Authority, Th3 tnnuil instillm:nt Emounts, int rest rties, other investments, principally real estate and certain revenues, principally rentalincome from and final maturity dates of the revenue bonds as mortgages.
facilities financed by bond proceeds plus a of June 30,1979 are summarized by series in portion of tuition, are pledged by the University to table 3. At June 30,1979 and 1978, plant funds
- 5. Accounts and Loans Receivable meet debt service requirements. In addition, bonds and notes payable also include the dividends from certain preferred stock held by the obligations shown in table 4.
Patient accounts receivable at June 30,1979 and University, with a market value of $3.128,300, are
.l 1978 are net of provisions for patient allowances pledged to meet the debt service requirements. In The total annual aebt service requirements for the d
u' h"f71y the event this stock is disposed of before the next five fiscal years are shown in table 5.
,respe i Other un bonds are retired, the proceeds from the sale are c;ivable at June 30,1979 and 1978 are net of 8 Plant Funds pledged to the retirement of a portion of the provisions for doubtful accounts of $463,000 and remaining debt outstanding. Similarly, the Land, buildings and equipment at June 30,1979
$148,000* respectively*
University has pledged to apply its remainderman and 1978 are detailed in table 6.
l Student loans receivable at June 30,1979 and interest in a life income trust held by a bank to 1978 are reported net of provislori for doubtful debt retirement if received prior to the retirement During the year ended June 30,1979, the of the Series G bonds.
University's net investment m plant was increased torns of $1,520,335 and $1.925,835, respectively.
$9,840,832 by capitalized expenditures of plant This provision is intended to provide for loans, funds and $2,341,465 by debt reduction payments.
both in repayment status and not yet in Expendable plant fund balances at June 30,1979 repayment status (borrowers are still in school or Table 2. Book Value of Investments and 1978 are shown in table 7.
in the grace period following graduation), that may not be collected.
1979 1978
- 9. Inter-fund Borrowings -
Cuneanunds m.m 500 m
- 6. Pledged Assets and Funds on Deposit Plant funds borrowings from current funds and Certain U.S. Government obligations are held in s m$r funds 266,300,000 247,000.000 throu est ic ed ifts for hi there fi escrow by the Dormitory Authority of the State of Plant funds 700.000 700.000 commitments or through regularly scheduled Total
$267 m m
$248 m m interna ebt service Inte est is provided on most o I ws $4,37 259 an 273 5 tJ n 0 1979 and 1978, respectively, of investment 4
securities of Endowment and Similar Funds, and
$2,285,426 and $2,242,156, respectively, of Table 3. Plant Fund indebtedness-New York State Dormitory Authority Revenue Bonds investment securities of Current Funds. In addition, investment securities of Endowment and Annual Installment Final -
Similar Funds include U.S. Government Series including Interest interest Rates Maturity Date obligations of $863,250 and $1,265,203 at June 30, A
$611,915 to $648.000 3.5% to 3.75%
1997' 1979 and 1978, respectively, held in escrow by the C
250.560 to 349.860 4.1% to 4.4%
1997 Worker's Compensation Board of the State of D
1,623,415 to 1,779.750 7% to 5%
2001 New York.
E 480,243 to 535.500 6.5% to 5%
2002 F
816,625 to 821,500 5.0% to 7 25%
2006 Plant funds investments include cash and U.S.
G 1,315.275 to 1,400.003 7.5% to 5.5%
2002 Government obligations of $7,715,709 and
' $8,473,644 at June 30,1979 and 1978, respectively, held by the Dormitory Authority of Table 4. Other Plant Fund indebtedness
- the State of New York which will be used primarily for the retirement of debt at a future Final time.
Balance 911ance Annual Instatiment interest. ' Mat urity June 30,1978 June 30,1979 including Interest Rates Date 7.' Plant Fund Indebtedness
. Plant funds bonds and notes payable include Real estate mortgages
$ 13.000
$ 13.000
$ 1,000 1991 revenue bonds of $65.365.000 and $66.995,000 at Computer purchase liabilities 999.904 23.547 23,547 9.5% '
1980 June 30,1979 and 1978, respectively, of the Dormitory Authority of the State of New York.
Computer lease LTitle to the related assets is held by the Authority liability 3.312,414 1,006.980 to 919.730 10.5%
1984 until the debt is retired.
Note payable 2,744 0
14-
.10. P;nsi:n Plans Tot:I pension costs of the Endowed lthics tnd c;rtrin sal: ries, principally those associated with
' The University's employee pension plan coverage the Medical College plans for the year ended externally sponsored programs. The amount so June 30,1979 amounted to $8,337,000.
reimbursable to the State during the year ended for Endowed Ithaca and the Medical College June 30,1979 was $1,407.120, which is included consists of the foilowing:-
Employees of the Statutory Colleges are covered in current funds expenditures.
- m. A contributory defined contribution plan for under the State of New York pension plan.
cxempt employees (those not subject to overtime Centributions to the State retirement system
- 11. Pledges provisions of the Fair Labor Standards Act)..
and other fringe benefit costs are paid directly by Pledges are not recorded until realized.
Pension costs for this plan are funded with the the State. The amount of such direct payments Unrecorded major gift pledges at June 30,1979 ~
presently,s not determinable and is not included i
Teachers insurance and Annuity Association, and June 30,1978 aggregated approximately in the financial statements.
cs accrued,
$20,000,000 and $13,000,000 respectively, most of b, A non-contributory defined benefits plan for
- Effective January 1,1977, the University agreed to which are for restricted purposes.
non-exempt employees, including those retired reimburse the State for fringe benefits costs on before July 1,1976 under a prior similar plan. At June 30,1979, the University held certain Table 5. Annual Debt Service Requirements pension reserves for this plan.
.c. A frozen benefits plan for exempt Medical Year inc u ing i re College faculty. Accrued benefits under a prior defined benefits plan as of June 30,1976 and 1980
$6.377,923 (n appropriate amount of the University's pen-1981 6.350,660 sion reserves were frozen in connection with a 1982 6,308.370 reorganization of the University's employee 1983 6,262,446 pension plan coverage effective July 1,1976.
1984 5.539.929 The pension reserves held by the University were Table 6. Land, Buildings, and Equipment, at Cost established by charges to expenditures in prior years to meet future retirement costs for current 1979 1978 cmployees. Although the reserves are considered to be funded internally, they are not intended to Land, buildings and improvements
$296,522,921
$286.657,462 crnte a trust or fund in which any employee or
. Furniture, equipment and libraries 145,12f,,406 140,882,411 former employee has any right or interest of any Construction in progress 16.087,311 17,591,798 kind. The reserves are included as liabilities in the Total
$457,739,638
$445.131,6 balince sheet.
In recordance with ERISA requirements, the University must fund annually with an.
Table 7. Expendable Plant Funds ind: pendent trustee m respect to the defined benefits plans ar; actuarially determined amount Unrestricted Restricted Total r: presenting normal costs plus amortization of prior service costs over a forty year period 1979 1978 1979 1978 1979 -
1978 commencing July 1,1976. The contribution is Construction:
chirged to expenditures except for an actuarially State ap ropriations S 6,441,530 $11,747,995 - $ 6,441,530 ' $11,747,995 deti,rmmed portion of the amortization of prior Other
$6,030,133
$7,725.012 9,918,608 5,016,709 15,948,741 12,741,721 service costs which is charged to the University,s Retirement of indebtedness 39,312 181,987 2,174,176 1,742,942 2,213.488 1,924,929 NS n m se W es.
Renewalc and replacements 657,010 598,119 649.057 659,353
.1,306,967 1,257,472 Participants' vested benefits in the defined Total
$6,727,355
$8,505,118
$19,183,371 $19,166.999
$25,910,726 $27,672.117 -
-benefits plans as determined by independent rctuaries amounted to $23,955,000 at June 30, 1978. The assets held by the independent trustee end those of the University's pension reserves, as v11ued by the plans' independent actuaries, tmounted to $13,417,000 at the same date.
15 -
f
- _ _ _ _ = - _ _ - _ _ _ _ -
- 12. Currrnt Funds Rev:nues Table 8. Current Funds Revenues (in Thousands)
As stated in Note 1B, only those portions of Unrestricted Restricted restricted additions actually expended are reported as revenues. Current funds revenues for Revenues and additions, as shows:
the year ended June 00,1979 are summarized in in Exhibits B and C
$232,901
$107,740 t1ble 8.
Investment income resulting from ange in ac un g me h 35 1.558 Details of restricted revenues for the year are giv;n in table 9. Restricted Expenditures
$233.636
$109.298 cxceeded Restricted Revenues by $420,000, t.ess portion of restricted resources
- representing the portien of investment gains not considered as revenue until distributed to restricted current funds under the expended in the future (12.248) j -;
total return formula.
Total current funds revenues
$233.636
$ 97.050
- 13. Commitments and Contingent Liabilities Th3 University is defendant in various legal tctions, some of which are for substantial Table 9. Restricted Revenues (In Thousands)
(mounts, arising out of the normal course of its operations. Although the final outcome of such actions cannot pre,sently be determined, the Government appropriations-Federal
$ 573 University's administration is of the opinion that Government grants and contracts:
(ventual liability, if any, will not have a material Federal 65,382 cffect on the University's financial position.
State 5.737 Local 724 in connection with the sale of its 68% interest in C;ispan Corporation in 1978, the University is Private gifts, grants and contracts 11,867 income from investments 10.170
. contingently liable under an indemnification N.Y. Hospital contribution toward agreement. Approximately $273,000 of endow-shared costs 776 ment and similar funds cash is held by an escrow sales and services of agent under this agreement. The University's educational departments 989 m ximum liability under the agreement is Other sources 832 rpproximately $273.000 plus 75% of the buyer's preferred stock it received in the sale. That stock Total restricted revenues
$97.050
. is included in. endowment and similar funds investments in the accompanying financial statements at $3,343,119. The University presently i) unable to determine the amount of liability, if cny, that may arise under this agreement.
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Offece of University Publications 180.7M A.
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