NOT FOR CIRCULATION FOR PERSONAL USE OF TRUSTEES ONLY STATEMENT OF THE BUSINESS MANAGER JUNE 14, 1904 TO THE BOARD OF TRUSTEES NORTHWESTERN UNIVERSITY Relating to the financial transactions of the first ELEVEN MONTHS OF THE FRESENT FISCAL YEAR, JULY I, I9O3, TO JUNE I, I9O4, ALSO CERTAIN OTHER ITEMS OF INTEREST OFFICE OF BUSINESS MANAGER NORTHWESTERN UNIVERSITY Evanston, III., June 14, 1904. To the Board of Trustees Northwestern University: I respectfully submit the appended statements: No. 1 : A general statement with remarks and explanations relative to cash receipts and disbursements for the period from July 1st, 1 903, to June 1st, 1904. No. 2: A general statement showing receipts and disbursements on Budget and Sundry Accounts with the estimated income and the appropria- tions against them (made early in the year), for comparison with explanatory notations. No. 3: An itemized statement of receipts and disbursements on all other accounts except the bugdet account. No. 4: A condensed statement showing increases and decreases in assets and liabilities affected by cash transactions during the period named. No. 5: An itemized statement showing the increases and decreases in assets and liabilities affected by cash transactions during the period named. No. 6: A comparative statement of total yearly cash receipts and total yearly cash disbursements for the period from September 1st, 1894, to June 1st, 1904, showing in totals annual budget income receipts and annual budget income disbursements; also in totals annual cash receipts and annual cash disbursements on asset and liability ac- counts. No. 7. Statement of assets and liabilities June 1st, 1904. Under the present system of accounting, recently installed, statements like the above can be prepared from the books with little trouble and expense by any well qualified accountant, and can be verified easily by the books themselves, which I would be pleased to have you examine and inspect. Very respectfully }murs, Business Manager. STATEMENT No. 1. STATEMENT RELATIVE TO ANNUAL BUDGET. First Eleven Months of Fiscal Year, namely from July i, 1903, to June i, 1904. The budget sets forth the estimated income from rents, interest, tuition, fees, etc. It also sets forth the estimated expenditures for all fixed charges such as interest, insurance, maintenance of property, pay rolls, supplies, materials, etc. It makes no reference to any possible receipts from the sale of property, real or personal, from gifts, from changes in investments, from insurance, etc. These are called Sundry Accounts. It makes no appropriation to reduce the liabilities of the University or to increase its assets except as they may be increased by added equipment, etc. BUDGET ESTIMATES— DRAFT OF OCTOBER, 1903 , Etc. The estimated Income (October, 1903) for the fiscal year was $ 518,254.88 The estimated Expenses (October, 1903,) for the fiscal year were. 512,181.87 Unappropriated estimated income. . $ 6,073.01 Subsequent appropriations from income have been amounting to $ 9,471.43 Making a total appropriation from income 521,653.30 BUDGET INCOME RECEIPTS. Estimated Income as above stated . . .$ 518,254.88 Actual Income to June 1st, 1904, as shown in Statement No. 2 504,228.36 Balance to be collected by Juty 1st, ac- cording to this calculation $ 14,026.52 JUNE BUDGET RECEIPTS ESTIMATED. I estimate our income from June 1st to July 1st (close of fiscal year) as about * 19,500.00 I make this estimate on the following basis : That we will receive during the month of June rent from Evanston lease- holders $ 4,400.00 Booth Building 3,000.00 Dock property, and Maxwell St. prop- erty 220.00 Improved property in Evanston .... 450 . 00 Willard Hall receipts 700 . 00 College Receipts 115.00 Academy receipts 320 . 00 School of Music 908 . 80 N. U. Building Rents 3,199.97 Law School 436 . 00 Pharmacy School 264 . 00 Dental School 1,535.80 Medical School 4,000.00 Making a total $ 19,549.57 I believe the estimate is a reasonable one, and if it holds good our income receipts will exceed estimates made last October by $5,523.05. BUDGET DISBURSEMENTS. Present appropriation of Budget in- come, as shown above is $ 521,653.30 Additional appropriations made from Special Expense and other funds not income proper 5,141.89 Total appropriations for the year as shown in first column in statement No. 2 column No. 1 Actual disbursements to June 1st, as shown in statement No. 2, column No. 2 $ 526,795.19 507,876.81 Budget appropriations unexpended June 1st 18,918.38 JUNE BUDGET DISBURSEMENTS ESTIMATED. I estimate our budget income disburse- ments from June 1st to July 1st (close of fiscal year) to be about . . 38,000 . 00 I make this estimate on the following basis : Payroll $ 23,500.00 Insurance 763.50 Evanston Hospital 250.00 University General and Evanston Departments 6, 100 . 00 Chicago Departments 7,223.84 .1 37,837.34 BUDGET DEFICIT ESTIMATED FOR THE YEAR. Summary relating to Budget account as follows: Total Budget disbursements as per Statement No. 2, Column No. 2 $ 507,876.81 Total Budget receipts as per Statement No. 2, Column No. 5. 504,228 . 36 Budget apparent debit balance 3,648.45 Add to this Estimated Budget disbursements for June as per above, 37,887.34 Total S 41,535.79 Deduct from this Estimated Budget receipts for June as per above 19,549.57 Would make Apparent deficit in Budget account for year 8 21,986.22 Deduct from this Expenditures made through Budget account during the year appropriated from Special Elxpense and other General Ledger accounts (referred to above) 5,141 .89 Will give estimated Budget deficit for the fiscal year ending June 30, 1904, of . . . $ 16,844 . 33 RELATIVE TO BUDGET BALANCES AND SUNDRY ACCOUNTS. In statements made in March, April and May to the Finance Committees the budget receipts were far in excess of the budget expenditures, and cash and sundry accounts showed an equal debit balance. These balances fluctuate greatly during the year. In the summer months when there is no tuition income the sundry accounts are called on to finance the Institution for several months. When students' tuition and fees are paid the debit balance of the budget account is wiped out, and this account in turn for several months takes care of financing the Institution, etc. Statement No. 6 shows the great magnitude at times of the sundry ac- counts. Large temporary loans are frequently needed to finance the opera- tions of the University. The ideal way to avoid this condition is such an increase in the unres- tricted endowment that the Institution can live not only within its income but save enough out of it to create gradually a working capital. The Executive Committee has inaugurated the policy of selling some of the non-productive lands in Evanston. In so far as this results in decreasing our debt, it is in my opinion, wise. Though it decreases assets, it also decreases liabilities and thus places the University in a safer position, and a saving in interest charges will be a great relief. Statement No. 2, column 2 and column 5, show that We have disbursed on sundry accounts from Sept. 1, 1903, to June 1, 1904. .“ $ 163.482.74 We have received on sundry accounts from Sept. 1, 1903, to June 1, 1904 ' 162,369.63 Disbursements exceeding receipts by $ 1,113. 11 This balance, together with the budget balance, is fully accounted for in the Cash Statement appearing in Statement No. 2. STATEMENT No. 2 GENERAL STATEMENT OF RECEIPTS AND DISBURSEMENTS. from July i, 1903 , to June i, 1904 . 1 2 3 4 5 6 Appropri- ations for THE YEAR Disburse- ments to Date Department Receipts to Date Estimated Income of the Year Income Sales and Rebates Totals 109.882.32 20,713.62 12,123.92 116.144.33 22,080.76 31,758.42 27,038.35 27,918.72 25.435.00 61.250.00 72,449.75 1 08,584 . 62 22,600.05 11,395.85 106,905.41 19.714.59 27,101.38 34,275.26 25,721.49 23,278.41 57.571.59 70,728.16 1 University General 2 Willard Hall 3 Orriiutton Lunt Library . . . 145,688.02 21,513.45 503.28 49.20 6.45 430 . 00 31.50 1,108.20 347.81 501.87 4.28 107.21 146,557.96 22,671.52 4 College 5 Academy 6 School of Music . . . 7 N. 11. Bldg, and Univ. Gen 8 Law School 9 Pharmacy School . 10 Dental School .... 1 1 Medical School .... Budget Totals 12 Sundry Accounts. . Grand Totals 53.726.67 15,060.75 34,019.91 24.061.67 16,142.04 28,562.70 81,287.49 81,075.86 52,253.19 15.000. 00 31,068.21 28.000. 00 23.000. 00 30.000. 00 96.000. 00 73,704.00 526,795 . 19 507,876.81 163,482.74 501,138.56 3,089.80 504,228 . 36 162,369.63 518,254.88 671 359.55 666,597 . 99 Cash Statement Receipts as per above .... 666,597.99 28,306.41 Apparent overdraft June 1st, 1904. Paid overdraft of July 1st, 1903. . 23,544.85 671,359 . 55 Disbursements as per above. . . Budget Account Budget Disbursements, as per above 694,904.40 694,904.40 507,876.81 504,228 . 36 Receipts, as per above Budget Debit Balance June 1st 3,648.45 521,653.30 5,141 .89 Budget Appropriations From Income From Special Expense Fund and other Gifts . ... Total as shown above 526,795 . 19 5,141.89 3,64S,45 Budget Account, June 1 , 1904 Amount due to clear Spl. Exp. Fund and other appropriations . Debit Balance as per above Budget Credit Balance June 1 st (Actual) 1,493.44 163,4S2. 74 162,369.63 Sundry Accounts Disbursements as per above Receipts as per above Difference 1,113.11 STATEMENT No. 3. SUNDRY ACCOUNTS. STATEMENT OF TOTAL RECEIPTS AND DISBURSEMENTS. from July ist, 1903 , to June ist, 1904. DISBURSE- MENTS. RECEIPTS. Academy Profit and Loss Account $ 286 1 7 824 . 00 590.00 58 . 30 American Institute of Germanics Alumni Record Athletic Association 1,009 . 5C 310.29 76.700.00 2,745 . 72 3,000.00 12.900.00 Bills Payable Bills Receivable — Sundries Bills Receivable — Endowment Investments Bonds of 1913 70,000.00 2,488.05 10,350.00 Baker, Adaline 60.00 Buildings and Lands used for educational purposes 257 . 50 7,126 06 498 . 48 349 28 Coal Account 7,650 03 588.07 142.33 41.92 376 . 70 5.68 7,179.08 85 . 77 225 . 00 College Y. M. C. A Chapin Hall Expense . College Conference College Profit and Loss Account 18.00 Contribution to Law School Cash in hands of Agents Dormitory Fire Loss Account 1,769.14 Donations to German Department Dental School Profit and Loss Account 835 . 22 Donation — M. H. Wilson 50.00 753 . 80 75 . 00 1,946.68 5,682.61 100.00 100.00 1,000.00 670 . 00 Fisk Celebration Grand Stand Fire Loss Insurance 1,399.95 Gary Collection and Disbursements Garrett Biblical Institute 4,052.58 227 09 Gift — M. C. Bragdon (College Furniture) Gift — Dr. N. S. Davis, Sr., (Medical Research Fund) Endowment — Dr. N. S. Davis, Sr., (Davis Pro’ship Physiology) . . Hull, MaryH. ‘ T ... 257 . 90 2,151 .58 4.700.00 159.97 2.500.00 110.38 898 . 50 50.00 765.26 16,738.57 1,815.79 75.75 62 . 50 Hendricks, H. P., Clerk (Office Cash) James, James A. — Loan Account . Kendall, 11. B 495 . 00 2,500.00 60.50 Law School Rent Account Law School Profit and Loss Account Law School Library and Equipment Marcy Scholarship Maynard, H. S., Cashier 1,834.05 27,379.00 1,892.17 75 . 75 6,250.00 2,567 . 50 23.00 N. U. Building Fire Loss Account Pharmacy Book Account Parkhurst, Mary H Real Estate — Non-Productive Real Estate — Productive Students’ Printing Account — Law Special Expense Fund (against no appropriation) . . . 79.37 250.27 105.68 150.00 193.63 1 .536 . 00 2.600.00 5,473.75 6,898.95 State Bank of Evanston (Law School Special) Summer Salary Account Secondary School Conference 606 . 45 87 . 00 119.00 1,362.37 2,600.00 3,928 00 Students’ Loan Fund School of Oratory Tuition Notes Tremont House (Old Bills) Trust Fund — Class of 1906 100.00 Taxes and Assessments on Leaseholders’ Accounts 1,414.01 . 205 85 University General Profit and Loss Account 75.00 171 .82 Woman’s Medical School Account Total Disbursements 804 . 05 $ 103,4S2 . 74 “ Receipts K 102.309.63 STATEMENT NO. 4. GENERAL STATEMENT SHOWING INCREASES AND DECREASES IN ASSETS AND LIABILITIES AS AFFECTED BY CASH RECEIPTS AND DISBURSEMENTS. From July i, 1903 , to June I, 1904 . Liabilities — Decreased by Cash Disbursements: Bills Payable 19,600.00 633 25 Sundry Department, Profit and Loss Account Buildings and Lands — Educational Accounts Payable 257.50 10,922.86 Total Liability Decreased. . 31,413.61 Less Liabilities Increased by Cash Receipts: Overdraft at Bank increased. 4,761 56 Gifts — Trust Funds and Endowments Accounts Pavable 3,521.68 11,979.96 Total Liability increased. . . 20,263.20 Net Decrease in Liabitilies 11,150.41 Assets — Decreased by Cash Receipts : Cash in hands of Agents 8,247.87 10,350.00 2,488 . 05 6.187.50 2.567 . 50 6,540.26 Bills Receivable — Endowment Funds . Sundries Non-productive Real Estate — Sales . Productive Real Estate. . . . Accounts Receivable Total Assets Decreased 36,381.18 Less Assets Increased by Cash Disbursements: N. U. Building (old bills paid) 6,898 95 898 50 Law Library and Equipment . . . Bills Receivable — Tuition Notes 1,545.75 3,000.00 2,745 . 72 6,493.40 Endowment Funds Sundries Accounts “ Total Assets increased 21,582.32 Net Decrease in Assets. 14,798.86 3,648.45 I he difference between Net Decrease in Assets and Net Decrease in Liabilities, viz.: 3,646.45 is amount due from Budget Account June 1, 1904, as shown. Itemized Statement of the above is appended hereto. STATEM COMPARATIVE STATEMENT OE TOTAL YEARLY CASH FOR THE PERIOD FROM SE1 Showing Annual Budget Income Receipts and Annual Bu Annual Cash Disbursements on S Sept. 1, 1894, Sept. 1, 1895, Sept. 1, 1896, Sept. 1 , 1897, Cash Receipts. TO TO TO TO Sept. 1, 1895. Sept. 1, 1896. Sept. 1, 1897. July 1, 1898. University, General 1 61,339.29 .« 15,972.97 $ 40,443.25 .$ 89,574.90 Willard Hall 2 21,128.73 20,225 . 65 20,465 . 28 16,196.71 Orrington Lunt Library 3 College 4 26,816.61 30,469 . 29 28,797 66 36,298.57 Academy 5 14,219.37 13,574 . 55 11,848.29 12,838.76' School of Music 6 10,337.08 12,539.00 15,858 94! N. U. Building & City Univ’ Gen’l. . . 7 Law School 8 15,628.60 19,853.40 18,829.77 14,026 . 23 Pharmacy School 9 35,121.50 30,313.99 25,180.81 20,414.27 Dental School 10 17,454.31 17,640.34 68,162.44 50,001.71 1 Medical School 11 30,684.26 32,963 11 35,785.47 43,208.97 1 Woman’s Medical School 12 9,848.35 10,935.50 10,346.68 8,570.00 1 Yearly Income Receipts $ 232,241.02 $ 202,285.88 ■1 272,398.65 $ 307,049.06 Receipts on Sundry Accounts . . 13 275,498 . 63 253,746.10 1,156,035.26 154,170.28 1 *Total Yearly Receipts $ 507,739.65 $ 456,031.98 $1,428,433.91 $ 461,225.34 Sept. 1, 1894, Sept. 1, 1895, Sept. 1, 1890, Sept. 1 , 1897, Cash Disbursements. TO TO TO TO Sept. 1, 1895. Sept. 1, 1896. Sept. 1, 1897. July 1, 1898. University General 1 $ 10,500.01 $ 12,525.61 $ 19,569.31 $ 33,220.40 Willard Hall 2 20,187.91 17,533.81 19,109.95 16,747.79 Orrington Lunt Library 3 3,056 . 59 2,610 04 3,818 60 College 4 66,663.77 60*174.41 61,118.43 75,078.30 Academy 5 19,692.89 18,732.00 19,056.44 17,591 .85 School of Music 6 10,337.08 12,539.00 15,858 94 N. U. Building & City Univ’ Gen’l.. . Law School 8 16,664.06 17,694.92 17,798.41 15,765.72 Pharmacy School 9 31,784.22 33,639.35 30,462.88 26,324.88 Dental School 10 23,397.18 22,931 .02 67,905 03 47,918.52 Medical School 11 29,756.31 35,352 . 39 32,665.07 31,928.77 Woman’s Medical School 12 8,692.23 9,221.17 9,849.65 18,317.25 Yearly Income Disbursements . $ 227,338.58 $ 241,198.35 $ 292,684.21 $ 302,001 02 Disbursements on Sundry Accts . 13 279,625.85 213,992.11 1,149,848.70 125,882.80 *Total Yearly Disbursements ... $ 506,964.43 $ 455,190.46 $1,442,532.91 $ 428,483.82 *Totals do not include office clearances, except in 1903 and 1904. f Department Disbursements o' CASH STATEMENT. Sept. 1, 1894 — Cash Balance on hand Receipts for the period •$7 133 411 54 $ 1,843.69 7,103,261.44 28,306.41 June 1, 1904 — Apparent overdraft $7,133,411.54 $7,133,411 .54 STATEMENT No. 5. ITEMIZED STATEMENT SHOWING INCREASES AND DECREASES IN ASSETS AND LIABILITIES AFFECTED BY CASH RECEIPTS AND DISBURSLMENES. From July ist, 1903 to June tst, 1904. Liabilities — Decreased by Cash Disburse- ments: Hills Payable — At Bank Curtis Notes Bonds of 1913 Crews N otes Sundry Dept. Profit and Loss Accts Buildings and Lands (Educational) Accts. Payable — Dormitory Fire Acet . . Gary Fund Disbursements James A. James Loan Acet Summer Salary Accounts. Special Expense Fund Students’ Loan Fund . . Total decrease in Liabilities by cash Disburse- ments Less Liabilities — Increased by Cash Receipts Gifts, etc. — M. H. Wilson 50 . 00 M. C. Bragdon loi) oo To German Department 225 . 00 Gary Collection 1,946.68 Trust Funds, N. S. Davis, Sr., (Med. Kerch.) 100.00 ('lass of 1906 100.00 Endowments — N. S. Davis, Sr.( Davis Prof’p) 1,000.00 Accts. Payble — Am. Institute of Germanics 303.83 N. U. Building Fire Loss. . . 10,640.43 College Y. M. (’.A 89 . 59 Mary H. Hull 412 10 Grand Stand Fire Loss 75.00 R. B. Kendall 335 03 College Conference 41 .92 Contribution to Law School 5.68 Pharmacy Book Account . . 76.38 Total increase in Liabilities by cash Receipts Net Decrease in Liabilities for the Period AFFECTED BY CASH TRANSACTIONS Assets — Decreased by Cash Receipts: Cash in hands of Agents Bills Receivable — Endowment Fund 5,000 00 300.00 12,900.00! 1, 400.001 1,083.38 4,052.58 4,700.00 63 . 00 250 2 173 63 ),600. 00 633.25 257.50 31,413.61 4,701.50 3,521.68 11,979.96 8,247.87 Hall 2,000.00 Orchard 350.00 Ullrich 2 .000.00 Garrett Biblical Institute. 3,000.00 M. B. Dyche 3,000.00 10,350.00 Bills Receivable — Sundries Blake 20.00 Umbria 10.00 Lyman 4.00 H ousel 300.00 Cummings 1 ,000.00 James, J. A 154.05 Towle 1 ,000 . 00 — 2,488.05 Non-productive Real Estate Sales 6,187.50 Productive Real Estate Sales 2,567.50 Accts. Receivable — Adaline Baker. . 60.00 Coal Accounts 523 97 Garrett Biblical Institute. 5,455 52 State Bk. of Ev. (Law) . . 500.77 6,540.26 Total Decrease in Assets by Cash Receipts Less Assets — Increased by Cash Disbburse- me nts: N. U. Building — Old Bills Paid 6,898.95 Law Library and Equipment. . . 898.50 Bills Rec’ble — Tuition Notes — College and Academy 1,5.45.75 Bills Rec’ble — Endowment Funds — M. B. Dvche 3,000.00 Bills Recei vable — Sundries — Child 74. OS Jewell 175 00 Lvman 4 00 Vail, HI. A 1 .000 . 00 1 owle 1 ,482 64 Umbria 10.00 2,745.72 Accts. Rec’ble — Alumni Record 951 20 Athletic Association . 310.29 Fisk Celebration 646.15 Marcy Scholarship 50.00 H. P. Hendricks, Cashier 2,151 .58 Secondarv School Confer’ce . 74.62 Leaseholders’ Accts., Taxes and Assessments 1,414.01 Students’ Printing Acct. L’w 56.37 A\ Oman’s Med’l School Acct 632.23 Chapin Hall 206.95 6,493.40 Total increase in Assets l>v Cash Disb’mts Net Decrease in Assets for the Period Affected by Cash Transaction. 20,263 . 20 30,381 . 18 21,582.32 14,798.86 3.648.45 1 he difference between the decrease in Assets and decrease in Liabilities, viz.: 3 648 45 is the amount due from Budget Account June 1, 1904. STATEMENT No. 6. COMPARATIVE STATEMENT OF TOTAL YEARLY CASH RECEIPTS AND TOTAL YEARLY CASH DISBURSEMENTS FOR THE PERIOD FROM SEPTEMBER i, 1894, TO JUNE 1, 1904. Showing Annual Budget Income Receipts and Annual Budget Income Disbursements, also Annual Cash Receipts and Annual Cash Disbursements on Sundry Asset and Liability Accounts. Cash Receipts. Sept. 1, 1894, TO Sept. 1, 1895. Sept. 1, 1895, TO Sept. 1, 1896. Sept. 1, 1896, TO Sept. 1, 1897. Sept. 1, 1897, TO July 1, 1898. July 1, 1898, TO July 1, 1899. July 1, 1899, TO July 1, 1900. Jul-^J, 1900, TO July 1, 1901. July 1, 1901, TO July 1, 1902. 1 2 3 4 5 0 7 8 9 10 11 12 13 July 1, 1902, TO July 1, 1903. July 1, 1903, TO June 1, 1904. Sept. 1, 1894, TO June 1, 1904. University, General Willard Hall 1 2 3 4 5 6 7 8 9 10 11 12 13 61,339.29 21,128.73 $ 15,972.97 20,225 . 65 $ 40,443.25 20,465 . 28 $ 89,574.90 16,196.71 1 2 3 4 5 6 7 8 9 10 11 12 13 $ 95,982.01 16,649.63 $ 101,380.33 21,503.38 $ 107,370.42 19,614.73 $ 124,434.97 18,017.62 $ 147,787.03 22,271 .52 $ 145,688.02 21,513.45 $ 929,973.19 197,586.70 Orrington Lunt Library College Academy 26,816.61 14,219.37 30,469 . 29 13,574.55 10,337.08 28,797 06 11,848.29 12,539.00 36,298.57 12,838. 70 ! 15,858.94 33,794 . 26 13,016.97 16,166.66 36,950 . 30 13,607.24 17,813.37 41,858.40 12,790.06 21,706.51 37,909 . 63 10,108.29 22,565.75 50,016.26 14,018.25 31,139.96 21,848.7?-' 15,223.98 25,340.35 92,888.71 90,144.45 35.00 53.726 . 67 15,060.75 34,019.91 24.061 .67 16,142.04 28,562 . 70 81,287.49 81,075.86 376,637 . 59 131,142.53 182,147. 18 45,910.45 163,814.73 240,528.49 586,637.80 503,668 . SO 62,520.68 N. IJ. Building & City Univ’ Gen’l. . Law School Pharmacy School Dental School Medical School Woman’s Medina! School 15,628.60 35,121.50 17,454.31 30,684.26 9,848.35 19,853.40 30,313.99 17,640.34 32,963 . 1 1 10,935.50 18,829.77 25,180.81 68,162.44 35,785.47 10,346.68 14,026.23 20,414.27 50,001.71 43,268.97 8,570 . 00 16,762.09 23,622 . 69 59,227 . 60 35,239.90 7,078.81 17,076.80 14,945.16 34,520.47 40,803 . 64 4,702.74 15,266.02 17,883.41 86,639.97 48,070.43 5,453.71 15,005.80 19,143.61 78,814.76 65,632.71 4,949.89 Yearly Income Receipts Receipts on Sundry Accounts . . ♦Total Yearly Receipts * 232,241.02 275,498 . 63 $ 202,285.88 253,746.10 $ 272,398.65 1,156,035.26 $ 307,049.06 154,176.28 $ 318,140.56 119,432.37 $ 303,363.43 84,727.78 $ 376,653.60 677,939.68 $ 396,583.03 461,315.98 $ 510,714.29 334,361.79 $ 501,138.56 165,459.43 $3,420,568.14 3,682,693.30 $ 507,739.65 $ 456,031.98 $1,428,433.91 $ 461,225.34 $ 437,572.93 388,091 .21 1,054,593.34 $ 857,899.01 * 845,076.08 $ 666,597.99 $7,103,261 .44 “1 Cash Disbursements. Sept. 1, 1894, TO Sept. 1, 1895. Sept. 1, 1895, TO Sept. 1, 1896. Sept. 1, 1896, TO Sept. 1, 1897. Sept. 1, 1897, TO July 1, 1898. July 1, 1898, TO July 1, 1899. July 1, 1899, TO July 1, 1900. July 1, 1900, TO July 1, 1901. July 1, 1901, TO July 1, 1902. July 1, 1902, TO July 1, 1903. t July 1, 1903, TO June 1 , 1904. Sept. 1, 1894, TO June 1, 1904. University General Willard Hall 1 2 3 4 5 6 7 8 9 10 11 12 $ 10,500.01 20,187.91 $ 12,525.61 17,533.81 3,056 . 59 60,174.41 18,732.00 10,337.08 $ 19,569.31 19,109.95 2,610.04 61.118.43 19.056.44 12,539.00 $ 33,220.40 16,747.79 3,848.60 75,078.30 17,591 .85 15,858.94 1 2 3 4 5 6 7 8 9 10 11 12 13 $ 30,689.03 17,907.35 3,870.28 80,829.26 19,896.30 16,576.06 $ 24,108.00 20,253.77 3,822.94 85,410.63 20,411.85 17,411 .81 $ 41,303 27 20,894.63 4,887.84 98,284 . 40 19,380.2?- 19,984 . 05 $ 62,164.76 24,002.95 6,342 . 00 105,297.60 23,127.40 24,288.21 1 2 3 4 5 6 7 8 9 10 1 1 12 $ 112,086.56 23,670 . 42 5,775 . 96 110,635.05 21,146.39 32,254 . 72 23,670 42 26,556.97 25,081 .77 65,787.93 83,921.65 8,820.03 $ 108,081.34 22,550.85 11,389.40 106,475.41 19,683.09 25,993.18 33,927 . 45 25,219.62 23,274.13 57,464 . 38 70,728. Hi $ 454,248.29 202,859.43 45,603.65 849,967.26 198,718.55 175,243.05 57,597.87 198,830.28 207,599 . 66 507,991 .07 483,927.45 101,570.15 Orrington Lunt Library . College Academy School of Music N. U. Building & City Univ’ Gen’l.. Law School Pharmacy School Dental School Medical School Woman’s Medical School . . . . 66,663 . 77 19,692.89 16,664.06 31,784.22 23,397 . 18 29,756.31 8,692 . 23 17,694.92 33,639 . 35 22,931 .02 35,352.39 9,221.17 17,798.41 30,462.88 07,905.03 32,665.07 9,849 . 65 15,765.72 26,324.88 47,918.52 31,928.77 18,317.25 19.236.22 25.257.23 41,975.57 33.113.29 12.634.29 19,766.08 23,670 69 48,473.07 53,008.10 12,561.79 20,183.3£ 23,566.05 67,1 78. 6S 53,933.16 10,313.30 19,944.93 24,538.46 64,959.69 59,520.55 11,160.44 Yearly Income Disbursements 1 Msbursements on Sundry Accts . ♦Total Yearly Disbursements 13 $ 227,338.58 279,625.85 $ 241,198.35 213,992.11 $ 292,684.21 1,149,848.70 $ 302,601.02 125,882.80 $ 301,984.94 158,629.00 $ 328,898.73 56,268.99 $ 379,909.01 683,450.59 $ 425,346.99 1 423,418.40 13 $ 539,407.87 331,565 85 $ 504,787.01 166,572.54 $3,544,156.71 3,589,254 . 83 * 506,964.43 $ 455,190.46 $1,442,532.91 $ 428,483.82 $ 460,613.94 $ 385,107.72 $1,063,359.60 $ 848,765.39 $ 870,973.72 $ 671,359.55 $7,133,411 .54 * I >1° not include office clearances, except in 1903 and 1904. f Department Disbursements of 1903-4 are net, sales and rebates having been deducted. CASH STATEMENT. Sept. 1, 1894 — Gash Balance on hand Receipts for the period Disbursements for the period June l, 1901 \pparent overdraft. . . . $7,133,411 .54 S 1,843.69 7,103,261.44 28,306.41 $7,133,411 .54 $7,133,411.54 © CO OQ 05 GT rt- RECEIPTS AND TOTAL YEARLY CASH DISBURSEMENTS TEMBER i, 1894, TO JUNE 1, 1904. dget Income Disbursements, also Annual Cash Receipts and jndry Asset and Liability Accounts. July 1, 1898, TO July 1, 1899. July 1, 1899, TO July 1, 1900. July 1, 1900, TO July 1, 1901. July 1, 1901, TO July 1, 1902. 1 2 3 4 5 6 7 8 9 10 11 12 13 July 1, 1902, TO July 1, 1903. July 1, 1903, TO June 1, 1904. Sept. 1, 1894, TO June 1, 1904. $ 95,982.01 16,649.63 $ 101,380.33 21,503.38 $ 107,370.42 19,614.73 $ 124,434.97 18,017.02 $ 147,787.03 22,271 .52 8 145,688.02 21,513.45 8 929,973.19 197,586.70 33,794 . 20 13,016.97 16,166.66 36,950.30 13,667.24 17,813.37 41,858.40 12,790 06 21,700.51 37,909 . 63 10,108.29 22,565 . 75 50,016.20 14,018.25 31,139.96 21,848.78 15,223.98 25,340.35 92,888.71 90,144.45 35.00 53.726.67 15,060.75 34,019.91 24.061 .67 16,142.04 28,562 . 70 81,287.49 81,075.86 376,637 . 59 131,142 .53 182,147.18 45,910.45 163,814.73 240,528.49 586.637 . 80 503.668.80 62,520.68 16,762.09 23,622 . 69 59,227 . 60 35,239.90 7,678.81 17,076.80 14,945.16 34,520.47 40,803.64 4,702 . 74 15,206.02 17,883.41 86,639.97 48,070.43 5,453.71 15,005.80 19,143.61 78,814.76 65,632.71 4,949.89 $ 318,140.56 119,432.37 $ 303,363.43 84,727.7 8 $ 376,053.60 677,939.68 $ 390,583.03 461,315.98 8 510,714.29 334,361.79 8 501,138.56 165,459.43 $3,420,568.14 3,682,693.30 $ 437,572.93 388,091 .21 1,054,593.34 $ 857,899.01 8 845,076.08 8 666,597.99 $7,103,261.44 July 1, 1898, TO July 1, 1899. July 1, 1899, TO July 1, 1900. July 1, 1900, TO July 1, 1901. July 1, 1901, TO July 1, 1902. July 1, 1902, TO July 1, 1903. t July 1, 1903, TO June 1, 1904. Sept. 1, 1894, TO June 1, 1904. S 30,689.03 17.907.35 3,870.28 80,829 . 26 19.896.36 16,576.06 $ 24,108.00 20,253.77 3,822.94 85,410.63 20,411.85 17,411 .81 $ 41,303 27 20,894 . 63 4,887.84 98,284 . 4C 19,380.28 19,984.05 $ 62,164.76 24,002.95 6,342.00 105,297.60 23,127.40 24,288.21 1 2 3 4 5 6 7 8 9 10 11 12 « 112,086.56 23,670.42 5,775.96 110,635.05 21,146.39 32,254.72 23,670 42 26,556.97 25,081.77 65,787.93 83,921.65 8,820.03 $ 108,081.34 22,550.85 11,389.40 106.475.41 19,683.09 25,993.18 33,927.45 25,219.62 23,274.13 57,464 . 38 70,728.16 $ 454,248.29 202,859.43 45,603.65 849,967.26 198,718.55 175,243.05 57,597.87 198,830.28 267,599 . 66 507,991.07 483,927.45 101,570.15 19.236.22 25.257.23 41,975.57 33.113.29 12.634.29 19,766.08 23,670 69 48,473 . 07 53,008.10 12,561.79 20,183.35 23,566.05 67,178.68 53,933.16 10,313.30 19,944.93 24,538.46 64,959.69 59,520.55 11,160.44 $ 301,984.94 158,629.00 $ 328,898.73 56,268.99 $ 379,909.01 683,450.59 $ 425,346.99 1 423,418.40 13 $ 539,407.87 331,565 85 $ 504,787.01 166,572.54 $3,544,156.71 3,589,254.83 $ 460,613.94 $ 385,167.72 $1,063,359.60 $ 848,765.39 $ 870,973.72 $ 671,359.55 $7,133,411.54 1903-4 are net, sales and rebates having been deducted. A careful study of Statement No. 6 will give you a condensed history of the remarkable development of the University during the past ten years. The increase in number of students, as evidenced by increased income in the various departments, in the past two years of President James’ administra- tion, is most worthy of marked attention. In examining this exhibit please remember that the figures for the present year cover only eleven months. Note also that in 1897 and 1898 the date of the beginning of the fiscal year was changed from September to July. During the period covered by this exhibit the educational departments have created a total deficit of $123,588.57. In the year 1894-5 the educa- tional departments had a small credit balance. In 1898-9 a credit balance of $16,155.62. All other years show a deficit, the largest being in 1895-6, amounting to $38,912.47. The budget deficit of $123,588.57 at first thought may cause alarm and create a demand for retrenchment. It certainly is not a thing to be coveted. It shows the urgent need of increased unrestricted endowment. This is the dark side of our condition. There is a bright side. The increase in the value of the books in the Orrington Lunt Library and the equipment in the College of Liberal Arts alone over their estimated value of ten years ago, is nearly equal to the entire deficit of all the educational departments for the period named. There has been a corresponding increase in the value of the equip- ment in every department. But it may be fairly said that general equipment, though valuable and necessary assets, are not available for debt paying purposes. This is true. But look at the comparative value of our non-productive real estate and other assets exclusive of property educational, both real and personal; I give you book values from the General Ledger. ASSET ACCOUNTS. Balance Sept. 1, 1894 Balance June 1, 1904 Increases Decrease Cash on hands $ 1,843.69 680,712.26 1,656,239.67 96,486.09 19,746.68 $1,843.69 Non-productive real estate Productive real estate Securities and Bills Receivable Accounts Receivable Total September 1st, 1894 “ June 1st, 1904 Net increase in the above assets for the period $ 834,146.89 3,388,436.41 179,637.54 36,473.95 8 153,434.63 1,732,196.74 83,151.45 16,727.27 2,455,028.39 4,438,694.79 1,983,666.40 LIABILITY ACCOUNTS. Overdraft at Bank 128,306 . 41 1,681,375.00 138,224.79 27,673.79 $28,306 .41 1,425,900.13 78,826.05 23,310.58 Bills Payable Trust Funds Accounts Payable Total September 1st, 1894 “ June 1st, 1904 “ Increase in the above liability for the period $ 255,474.87 59,398.74 4,363.21 319,236.82 1,875,579.99 1,556,343.17 The above statement shows; 1st. The increased value in such assets as listed for the period to be 2nd. The increased liabilities as listed (including all the liability of the Univer- sity), for the period to be 1,983,666.40 1,556,343.17 Net amount passed to the profit account for the period Deduct from this the Budget loss for the period of . . 427,323.23 123.588.27 Net profit in surplus account for the period of 303 734.96 You will note that in the foregoing statement I have not enumerated the present educational property and its equipment, and do not show the increased value of these items for the period named. Let me repeat, how- ever, that the results of the new inventory of the equipment in our educa- tional departments show a marked increase in value; said increase in the Col- lege of Liberal Arts alone almost equals the entire deficit for the last ten years. These inventories are being prepared with great care and represent not the cost value of our equipment but its present usable value. Note also that the valuation on tne non-productive real estate and pro- ductive real estate is that of 1902. A recent valuation has been placed on our non-productive real estate. This shows a material increase in value over the valuation used above. During the last two years many of our lease- holds have been revalued, and when the increased value of the property thereby represented has been written in the books the surplus account for the period referred to will approximate $500,000. It is only fair to add that certain items in securities and in bills and accounts receivable should be charged off, or carried into a suspense account.” These matters will be gone into detail in my annual report after they have been acted upon by the Executive Committee. If I were to take into account the increased values of our buildings used for educational purposes and for the lands they stand on, the gain referred to during the period named would be greatly increased, perhaps by $500,000, but I have preferred to refer to only what may be termed commercial assets as distinct from educational assets. Every reasonable effort should be made during the coming year to keep within the income. No extension of the present scope of educational work should be undertaken unless additional income is provided, yet to my mind any decrease from our present standard would be a serious blunder and soon result in a lessening income from tuition, which would more than off-set the saving. In this connection it is well to note that many new buildings are needed on this campus. Recitation Halls, Laboratories, etc., are now unduly crowded. Yet bear this in mind, if some generous friend should erect a new building for us it would be necessary to appropriate in the budget for its annual main- tenance; on the average this is equal to 4 per cent of its cost. Such gifts are greatly needed and are greatly desirable. They increase assets, but they also increase operating expenses. The great need of the Institution is increased unrestricted endowment. STATEMENT No. 7. STATEMENT OF ASSETS AND LIABILITIES June i, 1904. ASSETS. Buildings and Lands used for educa- tional purposes $3,010,687 . 75 Libraries, Museum and Sundry Equip- ments 334,077 . 09 Non-Productive Real Estate 834,146.89 Productive Real Estate ... 3,388,436.41 Securities and bills receivable 179,637.54 Accounts receivable 36,473.95 Cashiers’ balances. 3,251.31 Total assets $7,786,710 94 LIABILITIES PAYABLE. Bills payable $1,681,375.00 Accounts payable 27,673.79 Trust funds 138,224.79 Overdraft at bank 28,306.41 Total liabilities payable 1,875,579.99 $5,911,130.95 Many increases in the above assets will appear when the trial balance for the entire year is published in the annual report, arising from increased values, etc., and some decreases also, due to charging off certain accumulated items (worthless or doubtful) in securities and bills receivable. While it is only just to the University that fair valuation should be placed on buildings and lands devoted to educational purposes, and especially on li- braries, museums and equipment, yet in published reports attention should be directed to the fact that this large portion of its assets is not available for income, but that large annual expenditures are necessary to keep it in condition for use. If this is not done the public may gain an erroneous impression of the assets of the University. In closing this skeleton report permit me to say a few words about the Business Manager’s office. A year or more ago the Executive Committee employed Mr. S. W. Hunt, Public Accountant, to devise and install a mod- ern method of accounting. His system is now fairly complete and is most satisfactory and helpful; undoubtedly each new year's work will suggest new ideas and result in many minor changes, hut in the main I feel safe in say- ing that very few universities have a system of accounting so complete and satisfactory as ours. I, myself am not an accountant, but through my ex- perience in public affairs in Evanston learned that systematic accounting is an urgent necessity in every large enterprise. I recommend that either Mr. Hunt or some other equally competent man be retained in the service of the University in the capacity of supervising accountant, and that so much of his time be used as may be necessary. The question of auditing naturally arises. In the Chicago offices of the University about $ 250,000 are handled annually, and in the main office in Evanston two or three times that amount. Cash- iers and bookkeepers have been placed under bonds for the first time within the past few months. Their accounts should be examined frequently, though at irregular intervals. Every effort should be made to see if everything that ought to go into their books has gone into them. The books in the Chicago offices are made to dove-tail into the books in the Evanston office. It should be seen to that they are properly handled. No trustee or group of trustees has the time to attend to this. The supervising accountant should perform all these duties. In his work of auditing he should be an assistant to the Trustee Auditor, and under his control and that of the Finance Committees. In his strictly accounting work he should be under the joint control of the Treas- urer and Business Manager. A word about our method of auditing and approving bills will be instructive. All bills before being paid are passed upon by the Executive Committee ; before this they are carefully examined by the assistants in my office; then they come to my desk for examination, thence to our Auditor, Mr. Crandon. This work on Mr. Crandon’s part requires much time, usually his entire Saturday afternoon of each week. From my personal knowledge of his work gained during the last six months I can safely say that it is of the highest order. No paid auditor could possibly render more efficient service in the examination of these bills than Mr. Crandon has given, so freely and gen- erously. I trust he will continue in his work as long as his strength and health permit. But that other kind of auditing to which I have referred is equally important. The University is not safe without it; as Business Manager I am not safe without it. It will cost money, but it may save more than it costs. The University cannot afford to neglect this. I take this occasion to express my appreciation to the Trustees, espe- cially to the Auditor and Treasurer, for their kindness, courtesy and assist- ance so freely given me during the past six months in my efforts to gain an insight into the duties of my office.