Other Financial Reports

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Other Financial Reports
Contents
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44
The Trustees of the University of Pennsylvani a
Letter of Transmitta l
Report of the Comptrolle r
A Five Year Revie w
Current Fund s
Report of Certified Public Accountant s
Balance Shee t
Statement of Changes in Fund Balances
Statement of Current Funds Revenues, Expenditure s
and Other Change s
Notes to Financial Statement s
Current Funds Revenue s
Current Funds Expenditure s
Educational Plan t
Associated Investments Fund :
Balance Sheets
Statements of Income
The Trustees of th e
University of Pennsylvani a
TRUSTEE S
Paul F . Miller, Jr., Chairma n
Robert G . Dunlop, Vice Chairma n
Gustave G . Amsterda m
Walter H . Annenber g
Samuel H . Ballam, Jr .
Julian S . Bers
John M . Bixle r
I . W . Burnham, I I
Henry M . Chance, I I
Gloria Twine Chisu m
Charles D . Dickey, Jr .
John W . Eckma n
H . Samuel Greenawalt, Jr .
Warren S . Griffi n
F . Otto Haa s
A . Leon Higginbotham, Jr .
Reginald H . Jone s
Carl Kayse n
Ann E . Kelle y
William J . Kennedy, II I
Ralph Landa u
EMERITUS TRUSTEE S
Orville H . Bullitt
Howard Butcher, III
Paul J . Cupp
Thomas S . Gates
EX-OFFICIO TRUSTEE S
David C . Auten
Martin Meyerson
Leonard A . Laude r
Robert P . Lev y
David J . Mahoney
Myron M . Maintho w
Margaret R . Mainwarin g
John A . Maye r
C . B . McCoy
Anthony S . Minis i
William D . Patterso n
Donald T . Rega n
Nina E . Robinso n
Ralph S . Sau l
Wesley A . Stanger, Jr.
Marietta Tre e
Robert L . Tresche r
John H . Ware, 3r d
Jacqueline G . Wexle r
Morton H . Wilne r
Charles S . Wol f
William J . Zellerbach
Walter F . O'Malley
Richard S . Reynolds, Jr .
Bernard G . Sega l
Sarkes Tarzia n
Milton J . Shap p
5
Letter of Transmittal
To The Trustees of th e
University of Pennsylvani a
The Financial Report of the Corporation for the year ende d
June 30, 1978, including the Report of the Certified Public Accountants ,
Coopers & Lybrand, is respectfully submitted .
The following detailed schedules are published separately and ar e
not included in this report :
Investment s
Endowment and Other Fund s
J . Jerrold Jackso n
Comptroller
Philadelphia, Pennsylvani a
August 31, 1978
7
Report of the Comptrolle r
Current Operation s
The University operations [excluding University Hospital] improve d
in fiscal 1978 with the third successive annual reduction in the ac cumulated operating deficit . This year's reduction was $549,000, following previous reductions of $512,000 in fiscal 1977 and $109,000 i n
fiscal 1976 .
A major factor in the improvement over these three years was th e
Trustees' policy of applying federal research overhead recovery fund s
to deficit reduction . Another significant factor was the diligence of th e
deans and other University officers in controlling budgets and applyin g
effective budget procedures .
At the beginning of the 1978 fiscal year, the University's accumulated deficit was $10,416,000 . The reduction to $7,704,000 wa s
achieved in the following manner :
June 30, 1977
Fiscal 1978
June 30, 1978
Academi c
Operations
Graduate
Hospital
($6 .4)
0 .4
($6 .0)
($3 .6)
0 .1
($3 .5)
New
Residences
($2 .3)
0 .1
($2 .2)
Su b
Total
($12 .3)
0 .6
($11 .7)
HUP
$1 .9
2 .1
$4 .0
Tota l
($10 .4 )
2.7
($ 7 .7)
The past three years clearly have been pivotal to the financia l
health of the University, both in dollars and in long-term policy . Thi s
fact takes on even greater importance as the University prepares fo r
the decade of the 1980's . The most important negative influences o n
the University's budget in fiscal 1978 were the reduction in Common wealth support amounting to $1,350,000 and cost increases resultin g
from inflation .
In other areas, a positive change was recorded in the operatio n
of the New Residence Halls, which moved out of deficit for the firs t
8
time to a modest surplus . This change occurred as planned and o n
schedule .
Through efficient management, the University Hospital was abl e
to absorb, without deficit, a substantial one-time loss stemming fro m
refinancing the bond indenture for Silverstein Pavilion . A decrease d
interest rate was the reason for the refinancing . The reduction in th e
amortization costs to the University will substantially outweigh th e
loss for the repurchase premiums and other financing costs . A re classification of our Hospital depreciation account increases the fun d
balance of Hospital operations and is described in note 10 of th e
financial statements .
The Financial Statements
The Financial Statements show a favorable unrestricted operation ,
an increase in Current Restricted Fund balances of $3,759,000 and a n
increase in Endowment Fund balances of $14,214,000 . These fun d
balance increases are largely a result of the Program for the Eighties .
The Outloo k
The outlook for virtually eliminating the accumulated deficit fro m
University academic operations within the next few years is good, an d
our attention necessarily focuses on future results of our responsibility center budgeting and control programs .
The University's financial state has been improved for the lon g
term through clearly defined cost control and monitoring procedures ,
applications of funds to the accumulated deficit, and the Trustees '
concern for adherence to the principles of fiscal responsibility .
External factors are less susceptible to management . The two
most important are the level of Commonwealth appropriations and th e
rate of inflation . The $1,350,000 reduction in the appropriation ha s
been restored for fiscal 1979, but prospects for the future are by n o
means clear . Inflationary pressures almost certainly will continue .
In these circumstances, further improvement in the University' s
operating position will demand continued diligence in seeking to in crease revenue from all sources, and to control expenditures .
J . Jerrold Jackso n
Comptroller
9
Student tuition and fees
Commonwealth appropriations U .S . Government contracts an d
grants
Investment income
Gifts and private grants availed of
Sales and services of :
University Hospital
Graduate Hospital
Other educational an d
medical activities
Other sources
Auxiliary enterprises
EXPENDITURES (by function )
Instruction
Research
Libraries
Other educational and medica l
activities
Student aid
Student services
University Hospital
Graduate Hospital
Operation and maintenance o f
plant
General institutional expense General administration
Auxiliary enterprises
197 4
1975
1976
1977
1978
$48,211
14,468
$54,154
15,060
$61,81 0
15,99 1
$69,036
17,791
$76,45 1
16,47 6
47,430
10,535
19,930
53,668
11,130
21,598
59,53 9
10,449
20,78 0
61,810
8,501
23,216
67,22 9
11,76 7
20,41 9
39,304
15,352
47,593
15,679
54,53 7
18,65 6
63,413
77,234
7,820
6,950
14,648
$224,648
12,963
16,97 9
7,046
25,530
8,146
20,989
$324,241
5,636
16,092
$253,573
18,042
$283,82 9
15,600
7,350
20,084
$286,801
37,187
4,872
58,661
42,648
5,252
64,41 2
46,864
5,58 3
69,470
46,149
5,949
72,41 2
50,153
6,18 7
9,661
12,836
3,905
41,666
15,923
17,002
14,406
4,476
48,745
18,844
22,20 9
20,970
20,414
25,873
23,81 2
4,540
63,130
4,71 9
78,95 1
57,575
17,06 6
4,474
55,566
19,054
10,011
12,077
12,252
13,044
14,283
9,106
11,571
8,51 4
12,255
13,909
6,293
6,411
6,31 1
6,271
6,773
17,809
19,195
20,051
22,348
23,03 2
$226,844 $259,288 $282,356 $284,540 $320,104
11
A FIVE YEAR REVIEW—Continue d
(thousands of dollars )
CHANGES IN CURRENT FUND BALANC E
Unrestricted :
University :
University operations
New Residence operations Total university surplus (deficit) Transfer prior year indirect expens e
recovery
Total university
Hospitals :
University
Graduate
Total hospitals surplus (deficit)
Net change in restricted fund balanc e
increase (decrease)
NET CHANGE IN CURRENT FUND BALANCE
$(211) $(3,297)
(619)
(585)
(830)
(3,882)
(1,233)
(394)
(1,627)
261
(130 )
(2,879 ) (3,009 )
1,176
$(2,196) $(5,715)
$413
(304)
109
63
(251)
(188)
$(423) $(1,402 )
(231)
76
(654)
(1,326 )
1,166
512
1,875
549
1,310
—
1,310
(171 )
—
(171 )
1,552
43 9
$1,473
$2,261
$4,13 7
A FIVE YEAR REVIEW Continue d
(thousands of dollars)
1974
1975
1976
1977
197 8
$47,146
$50,734
$52,963
$55,615
$61,21 1
14,809
30,014
91,969
18,828
30,767
100,329
20,704
32,217
105,884
23,209
35,491
114,315
25,37 0
33,74 9
120,33 0
22,375
8,570
30,945
25,230
9,107
34,337
26,591
8,852
35,443
29,550
29,550
34,85 9
34,859
122,91 4
98,35 6
5,574
134,66 6
118,24 1
6,381
141,32 7
134,53 9
6,490
143,86 5
133,85 8
6,817
$226,844
$259,288
$282,356
$284,540
155,18 9
156,93 3
7,98 2
$320,10 4
GOVERNMENT CONTRACT AN D
GRANT AWARDS
55,566
56,775
72,933
63,74 6
74,869
GIFTS, SUBSCRIPTIONS AND
BEQUESTS
21,745
25,555
44,407
39,987
28,38 8
5,249
9,547
6,103
6,612
10,27 7
PLANT BOOK VALUE 299,713
312,545
326,290
343,728
379,90 4
BALANCE OF FUNDS
379,287
393,812
419,143
448,229
486,70 7
DEGREES AWARDE D
Baccalaureate
Post-baccalaureate 2,004
2,604
2,185
2,506
2,154
2,621
2,099
2,494
2,23 9
2,62 1
EXPENDITURES (by object)
Salaries and wage s
University :
Academic
Administrative and
professional
Clerical and other
Hospitals :
University . . . . . . . . . . . . . . . . .
Graduate . . . . . . . . . . . . . . . . .
Total salaries and wages
Current expense
Equipment
PRIVATE CONTRACT AN D
GRANT AWARDS 13
2% Other Source s
4% Investment Income
5% Commonwealth Appropriation s
6% S . & S . Auxiliary Enterprise s
6% Gifts and Private Grant s
8% S . & S . Educational & Medica l
21 % U .S . Government Contracts
and Grant s
Current Fund s
1977-78
24% S . & S . University Hospita l
24% Student Tuition and Fees
How it was provide d
(by source)
1% Student Service s
2% Librarie s
2% General Administratio n
4% General Institutional Expens e
5% Operation and Maintenance
7% Student Ai d
7% Auxiliary Enterprises
49% Current Expens e
8% Educational and Medica l
16% Researc h
23% Instructio n
49% Salaries and Wage s
25% University Hospital
How it was spent
(by function)
14
How it was spen t
(by object )
Report of
Certified Public Accountant s
To The Trustees of th e
University of Pennsylvania :
We have examined the balance sheet of the University of Pennsylvania as of June 30, 1978 and the related statements of changes i n
fund balances and current funds revenues, expenditures and othe r
changes for the year then ended . Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such othe r
auditing procedures as we considered necessary in the circumstances .
In our opinion, the financial statements referred to above (page s
16 to 33 , inclusive) present fairly the financial position of the University of Pennsylvania at June 30, 1978 and the changes in fund balance s
and the current funds revenues, expenditures and other changes fo r
the year then ended, in conformity with generally accepted accountin g
principles applied on a basis consistent with that of the precedin g
year .
Coopers & Lybran d
1900 Three Girard Plaz a
Philadelphia, Pennsylvani a
August 31, 1978
15
Balance Shee t
June 30, 197 8
with comparative totals as of June 30, 197 7
(thousands of dollars )
197 7
Totals a t
June 3 0
197 8
2,100
35,11 5
$ 5,71 1
37 .74 1
.11,76 1
46 .11 3
3 .05 8
3 .81 2
3,19 5
8 .67 9
158,49 3
13,98 5
343 .72 8
7 .59 1
157 .81 0
14,28 7
379 .90 4
6,11 7
ASSETS
Cash
Accounts receivable, net of allowanc e
for doubtful accounts of $4,606
Loans receivable, net of allowance fo r
doubtful loans of $565
Inventories, at cost
Prepaid expenses and deferred charges
Investments :
Stocks and bonds
Other
Invested in plant
Due from Graduate Hospital (Note 5)
Interfund balances :
Advances for plant Other
$614,643
$659,557
5,69 0
4,09 6
4,01 6
26,21 2
116,40 0
448,22 9
$614 .643
20 .71 8
4,90 1
4,44 9
10 .62 5
132,15 7
486,707
$659,557
1
LIABILITIES AND FUND S
Accounts payable and accrued expenses
Deposits, advances and agency funds Deferred income
Notes payable
Long-term debt
Fund balances (deficit)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS .
16
June 30, 197 8
Current Funds
Unrestricted Restricted
Loan Funds
Plant Funds
Endowment
and Similar
Investmen t
Funds
Unexpended
in Plan t
$ 5,711
28,123
$ 8,430
$ 1,188
9,491
3,195
8,492
715
$36,622
187
6,304
655
29
139,819
12,274
564
$11,687
614
$379,34 0
6,117
6,087
(43,958)
$23,973
17,488
1,233
4,398
8 .558
127
15,814
1,256
1,962
14,823
$31,330
$37,907
$170,817
(7,704 )
(8,176 )
4,52 2
$375,68 6
3,23 0
3,377
291
51
$23,973
7,543
$19,844
27,953
$31,330
37,907
$37,907
170 .817
$170,817
6,665
12,837
$19,844
2,06 7
125,49 2
244,89 7
$375,686
17
Statement of Changes in Fund Balances
for the year ended June 30, 1978
(thousands of dollars)
Balances (deficit) . July 1, 1977
Revenues and other additions :
Unrestricted current funds revenues
Government grants and contracts
Gifts and private grants
Sales and services
Investment income
Additions to and adjustments of plant (including $13,15 7
charged to current funds expenditures) Interest on loans
Net gains on sales of investments
Other additions, net
Current Fun d
Unrestricte d
University
Hospital Restricte d
$(12,336)
$ 1,920
141,045
78,780
117,460
17,18 9
78,780
$33,954
51,295
24,743
23,228
7,714
3,507
49
76,381
3,983
110,963
Plant Funds
Investmen t
Unexpended
in Plan t
$156,603
$18,825
• •
3,903
. •
10,505
2,060
2,622
320
337
193
10
167
5,196
11,018
97,653
2,019
8 .652
76,381
99,672
(1,305)
(4,937)
(390)
287
287
8,652
(380)
(547)
390
3,729
1,044
(1,524)
(1,019)
549
3,729
(3,965)
2,163
$ 4,083
549
$(11,787)
,
184
21,99 3
5,48 4
3,66 5
1,32 5
10,47 4
1,68 5
5,48 4
(3,729)
(25)
(1,265)
(5,248)
1,265
,
340
340
$225,069
21,80 9
134,649
Transfers among funds—additions (deductions) :
Mandatory :
Payment of principal on indebtedness Interest on indebtedness
Loan fund matching grant
Other transfers :
Hospital unexpended plant fund (Note 10)
Overhead recovered on investment income Physical plant development
Indirect costs recovered on government grants an d
contracts
Other, net
Net increase (decrease) for the year, before
extraordinary item
Extraordinary loss on early extinguishment of debt (Note 2)
Net increase (decrease) in fund balances Balances (deficit), June 30, 1978
The nature of specific fund balances is as follows :
Externally restricted
Internally designated
Unexpended endowment income U .S . Government grants
Funds functioning as endowments
Life income, annuity and unitrust funds ' $ 24,194
347
141,045
Expenditures and other deductions :
Educational and general expenditures Auxiliary enterprises expenditures Expended for plant
Interest on indebtedness
Provision for hospital depreciation
Disposal of plant
Other deductions, net
Endowment
and Similar
Loan Funds
Funds
1,524
3,508
600
1,14 0
3,759
3,953
14,214
(5,988)
19,82 8
3,759
$ 27,953
3,953
$37,907
14,214
$170,817
(5,988)
$12,837
19,82 8
$244,89 7
16,811
4,911
6,231
7,738
112,384
11,35 3
1,484
$ 27,953
30,169
$37,907
49,771
8,662
$170,817
,
$12,837
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS .
18
19
Statement of Current Funds Revenues ,
Expenditures and Other Changes
for the year ended June 30, 197 8
(thousands of dollars )
Revenues :
Tuition and fees
Commonwealth appropriations U .S . Government contracts and grants :
Direct costs
Indirect costs :
Current year
Prior years
Investment income
Gifts and private grants
Operating revenue of University Hospital Sales and services :
Other educational and medical activities Auxiliary enterprises
Other sources
Total expenditures and mandatory transfers, as annexed
Other changes, excluding items reported separately below :
Excess of restricted receipts over transfers to revenues Overhead recovered on investment income
Physical plant development
Other interfund transfers, net Net increase (decrease) in fund balances befor e
transfers of indirect costs recovered, extraordinar y
item and adjustment of Hospital fund balance Transfers of indirect costs recovered on government grant s
and contracts (Note 1) :
Current year
Prior years
Extraordinary loss on early extinguishment of debt (Note 2) Net increase (decrease) in fund balances before
adjustment of Hospital fund balance
Reclassification and adjustment of hospital fund balanc e
(Note 10) :
Transfer of prior years' unexpended plant fund balance Current year
Net increase in fund balances SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS .
20
Unrestricted
University
Hospital
Restricted
Total
$ 76,056
16,476
.. .. .. ..
.. .. .. ..
$ 1,023
. . ... .. .
$ 77,079
16,476
,
. .. . . .. . .
51,295
51,29 5
14,971
1,659
3,159
3,019
.. .. .. ..
... . ... .
.. .. .. ..
$
852
444
77,234
. .. .. .. .
.. .. .. ..
6,304
20,324
. .. .. .. .
14,97 1
1,65 9
10,31 5
23,787
77,23 4
4,086
19,155
2,464
141,045
141,281
.. .. .. ..
. .. .. ...
250
78,780
74,986
16,990
1,834
2,921
100,691
99,672
21,07 6
20,98 9
5,635
320,51 6
315,939
.,,,,,...
1,044
(1,524)
.........
.
.
.
.
3,794
(716)
(610)
1,875
. .. .. .. .
........
.. ... ..
.. .. ...
........
. .. .. ...
. .. .. ...
(3,965)
8,102
5,024
610
(1,875)
. . ... .. .
549
(171)
3,759
.. .. .. ..
.. .. .. ..
$
549
3,729
(1,395)
2,163
. . ... .. .
.. .. ... .
$ 3,759
$
10,272
25
(1,524 )
(5 .248 )
10,272
(1,019)
. .. .. .. .
(5,248)
. .. .. .. .
. .. .. .. .
(3,965 )
4,137
$
3,729
(1,395 )
6,471
21
STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURE S
AND OTHER CHANGES-Continue d
(thousands of dollars )
Unrestricte d
University
Hospital
Restricted
Tota l
$ 57,907
.........
. .. .. .. .
.........
$74,986
.. .. .. ..
.. .. .. ..
.. .. .. ..
$14,505
50,153
.. .. .. ..
18
12,996
1,241
. . .. .. .
288
350
18,102
$ 72,41 2
50,15 3
74,98 6
14,28 3
23,42 2
11,29 3
6,77 3
6,18 7
4,71 9
25,87 3
117,462
74,986
97,653
290,10 1
2,616
390
... .. .. .
. .. .. .. .
. .. .. .. .
2,61 6
39 0
To t a l educat i onal and genera l
120,468
74,986
97,653
293,10 7
Auxiliary enterprises :
Expenditures
Mandatory transfers for principal and interest 17,187
3,626
. .. .. ..
. .. .. .. .
2,019
.. .. .. ..
19,20 6
3,62 6
20,813
. .. .. .. .
2,019
22,83 2
$141,281
$74,986
$99,672
$315,939
Expenditures and mandatory transfers :
Educational and general :
I nstruct i on
Research
University Hospital
Operation and maintenance of plant
Student aid
General institutional expense
General administration
Libraries
Student services
Other educational and medical activities Educational and general expenditures
Mandatory transfers for :
Principa l and i nterest
Loan fund match i ng grant
Tota l aux i l i ary enterprises
Total expenditures and mandatory transfers SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS .
14,265
10,426
10,052
6,773
5,899
4,369
7,771
. ... .. ..
NOTES TO FINANCIAL STATEMENT S
1.
Summary of Significant Accounting Policies :
Basis of Presentation :
The accompanying financial statements include the accounts of the Universit y
and the Hospital of the University of Pennsylvania ("University Hospital") . Th e
statements have been prepared in accordance with generally accepted accounting principles for colleges and universities . See Note 10 concerning Universit y
Hospital accounting .
Fund Accounting :
Accounts are maintained in accordance with principles of "fund accounting" i n
order to observe restrictions placed on the use of resources available to th e
University . The receipt of resources for specified uses and the expenditure s
related to these resources are recorded in separate funds ; the funds are
summarized for accounting and reporting purposes into fund groups that are i n
accordance with activities or objectives specified .
The statement of current funds revenues, expenditures and other changes is a
statement of financial activities of current funds related to the current reportin g
period . It does not purport to present the results of operations or net income o r
loss for the period as would a statement of income or loss or a statement o f
revenues and expenses . Restricted current funds are reported as revenues when
expended for current operating purposes .
Investments :
Investments are recorded at cost . The cost for securities received as gifts i s
market value as determined upon receipt .
A substantial portion of the University's investments, belonging to individua l
funds, has been pooled in the Associated Investments Fund . Each participatin g
fund receives investment income on the basis of subscribed units, which ar e
acquired or disposed of at market value determined on a quarterly basis .
The University recovers certain overhead from investment income earned by al l
endowment and similar funds and other funds owning pooled investments . Th e
purpose of the recovery is to reimburse the University for indirect costs incurre d
to carry out projects funded by the aforementioned sources .
Invested in Plant :
Invested in plant in the accompanying balance sheet is stated as follows :
University Hospital property and equipment at cost, less accumulated depreciation (computed on the straight-line basis) ; all other University building s
and contents at cost . Certain facilities under long-term leasehold agreement s
have been capitalized .
Prior to fiscal 1978, all University contents, except museum contents, wer e
stated net of a 5% annual write-down of the declining balance to compensat e
for undetermined retirements and disposals of contents . This policy was discontinued during 1978 as a result of a physical inventory of plant and installation of a new plant accounting system . Adjustments resulting from the inventory
and change in procedures did not have a material effect on the aggregat e
invested in plant balance .
24
Interfund Balances :
Interfund balances represent temporarily unfunded advances which will b e
eliminated principally through collection of gift pledges, appropriations of othe r
receipts, or charges to current unrestricted expenditures and unexpended plan t
funds . Additionally, for financial reporting purposes, the University treats al l
cash as unrestricted and each fund's share of cash is recognized in the inter fund balances .
Indirect Costs Recovered on Government Grants and Contracts :
Recovery of indirect costs relating to government-sponsored research grant s
and contracts is recognized by the University, at authorized rates for each year ,
as unrestricted revenues . Such rates generally include a rollforward provision t o
permit subsequent recovery of any indirect costs not recovered currently ,
although full recovery is not assured . It is the policy of the University to transfe r
all or a portion of the recovery of prior years' indirect costs to internally restricted current funds and, concurrently, to transfer all or a portion of suc h
recovery that was previously internally restricted to current unrestricted funds .
Patient Service Revenues and Allowances :
Patient service revenues of University Hospital are accounted for at established
rates on the accrual basis in the period during which the service is provided .
Appropriate allowances to give recognition to the terms of the cost reimbursement contracts, including any potential audit adjustments, and to charity car e
and accounts doubtful of collection are accrued on an estimated basis in th e
period the related services are rendered .
Clinical Practices :
Prior to fiscal 1978, University physician group practices were provided temporary funding for a substantial portion of the practices' expenditures, with an y
unreimbursed expenditures recorded as current unrestricted accounts receivabl e
in the University's financial statements ($1,166,000 at June 30, 1977) .
Effective July 1, 1977, a number of the clinical practices integrated their account s
with those of the University . Accordingly, all of the accounts of these practice s
have now been included in the accompanying financial statements . Pending a
final determination of any limitations of the University ' s use of these funds, th e
clinical practice accounts have been classified as internally designated curren t
restricted funds, the fund balance of which was approximately $3,040,000 a t
June 30, 1978 .
Gift Pledges :
Gifts are recorded only as collected . Gift pledges (approximating $61,500,000 a t
June 30, 1978) are not included in the accompanying financial statements be cause it is not practicable to determine the net realizable value or period o f
collection of such pledges .
Retirement Benefit Plans :
Retirement benefits are provided for academic employees and certain administrative personnel through direct payments to the Teachers ' Insurance an d
Annuity Association and the College Retirement Equity Fund . The University' s
policy with respect to its contribution is to provide up to 9% of eligible employees' salaries .
The University has a noncontributory pension plan consisting of group annuit y
contracts for substantially all other full-time employees once they meet minimu m
age and length of service requirements . Contributions made by the Universit y
are accrued and funded based on actuarial determinations .
25
2 . Loss on Early Extinguishment of Debt :
On February 28, 1978, The Hospitals Authority of Philadelphia (the "Authority" )
at the request of the University, issued $40,200,000 of Hospital Revenue Bonds ,
Series of 1978 (the 1978 Bonds) to finance an advance refunding o f
$34,000,000 aggregate principal amount of Hospital Revenue Bonds, Series o f
1975 (the 1975 Bonds), completion of the 1975 improvements, and constructio n
of certain 1978 improvements .
Proceeds from the 1975 Bonds had been used by the Authority to acquire a
leasehold interest in certain University Hospital facilities, the " Silverstei n
Pavilion, " which were concurrently subleased to the University . Hospital leas e
payments were secured by granting the Authority a first lien on the gross revenues of the Hospital, a security interest in certain Hospital facilities and a n
unconditional University guaranty of principal and interest payments on th e
Bonds .
A portion of the 1978 Bond proceeds were used to refund the 1975 Bonds i n
advance of their stated dates of maturity and to discharge the lien and securit y
interests created with the 1975 indenture . The required funds were irrevocabl y
deposited into an escrow fund under the defeasance provisions of the 1975 trus t
indenture for the purchases of U .S . Treasury obligations, State and Loca l
Government Series, which together with the interest earned thereon will b e
sufficient to pay all the debt service requirements and call premium of the 197 5
Bonds .
Under the terms of the indenture for the 1978 Bonds, the University leases th e
Hospital facilities to the Authority for a lump sum fixed rental equivalent to th e
bond proceeds . The Authority subleases the Hospital facilities back to th e
University for monthly rental payments in the full amount necessary to pa y
principal, mandatory redemption amounts, interest on the 1978 Bonds, an d
certain other payments required by the Indenture, as more fully described i n
Note 7 .
The University has pledged and granted to the Authority a security interest i n
the Hospital's gross revenues, and certain property and equipment in th e
Hospital facilities . The Indenture and related lease and sublease agreemen t
contain certain restrictive covenants which, among other things, require th e
Hospital to maintain net revenues at an amount equal to 110% of the averag e
annual debt service requirement and limit issuance of additional indebtedness .
26
For accounting purposes, the refunding constitutes an early extinguishment o f
debt resulting in an extraordinary loss, derived as follows :
1978 Bonds :
Proceeds of issue, net of bond discoun t
Less deferred financing costs and construction fun d
Deposit into escrow fund to refund 1975 Bond s
Less 1975 Bonds :
Outstanding indebtedness, net of unamortize d
discount, at March 1, 197 8
Accrued interest less unamortized financing cost s
Gross loss on refundin g
Less estimated third-party reimbursemen t
Extraordinary loss
3.
33,116,00 0
141,00 0
33,257,00 0
4,770,00 0
805,00 0
$ 3,965,00 0
Investments :
A summary of investments i n
year then ended is as follows :
Short-term investment s
Bond s
Common stock s
Preferred stock s
End of yea r
Beginning of yea r
Increase in unrealized depreciation
Unrealize d
Cost
Market
Depreciatio n
$ 8,347,000 $ 8,351,00 0
68,698,000
63,173,00 0
76,802,000
71,647,00 0
3,963,000
3,860,00 0
157,810,000
147,031,000 $10,779,00 0
158,493,000
154,794,000
3,699,00 0
$ 7,080,000
Associated Investments Fund securities at June 30, 1978 represent approximately $117,747,000 cost ($109,805,000, market) of the investments summarize d
above . The accumulated balance of realized net gains relating to these poole d
investments amounted to approximately $14,373,000 at June 30, 1978 . A portion o f
these net gains is available, at the discretion of The Trustees and within lega l
limitations, for general operating or other designated purposes under the tota l
return method .
4.
Invested in Plant :
At June 30, 1978, the components of the University's investment in plant are a s
follows :
University :
Land
$ 13,679,00 0
Buildings
217,034,00 0
Contents 85,744,00 0
University Hospital property and equipment, net o f
accumulated depreciation of $30,600,00 0
Included above are $117,180,000 of costs capitalized under leasehold agreements (Note 7) .
Due from Graduate Hospital :
During fiscal 1977, The Trustees approved a plan of division whereby Graduat e
Hospital would become an independent, separately incorporated institution . Th e
division became effective on August 30, 1977, upon the successful sale o f
$37,740,000 of revenue bonds by The Hospitals Authority of Philadelphia t o
finance replacement facilities for the freestanding Hospital . This transaction wa s
accounted for in the financial statements as of June 30, 1977 . The net revenue s
and changes in net assets of the Hospital for the period July 1 to August 29 ,
1977, were not significant .
The net assets related to Graduate Hospital were vested in the new entity . Th e
Hospital ' s current unrestricted fund deficit at June 30, 1977, aggregatin g
$3,351,000, was retained by the University . The remaining net current unrestricte d
assets vested in the new Graduate Hospital aggregated $7,591,000 at June 30 ,
1977 . After advances of $1,441,000 were repaid to the University from the proceeds of the aforementioned sale of hospital revenue bonds, the balance o f
$6,150,000 was converted into a receivable from Graduate Hospital with a n
effective interest rate of 5 1/2% (unsecured note with a face amount of $3,727,00 0
and stated interest of 10% ), payable in quarterly installments of $95,000 ove r
40 years from December 31, 1977 . The note is fully subordinated to all othe r
indebtedness of Graduate Hospital .
The University has made the following guarantees and commitments in connection with the division : (a) a limited guarantee through September 1987 of
the hospital revenue bonds, in an amount not to exceed repayments of the not e
receivable described above ($285,000 at June 30, 1978), to a maximum o f
$1,750,000 ; (b) guarantee of a seven-year bank term loan of $2,000,000 fo r
radiology equipment and renovations, and a $1,500,000 line of credit for Hospita l
working capital and capital expenditures ; and (c) during the ten-year perio d
commencing July 1, 1980, the University will make available to the Hospital a
loan of up to $1,000,000 .
28
6.
Notes Payable :
Borrowings under lines of credit and other notes payable at June 30, 1978 ar e
as follows :
Collateral bank line of credit (a )
Federally Insured Student Loans :
Bank line of credit (b )
Promissory note (c )
Other
3,743,00 0
815,00 0
2,067,00 0
$10,625,000
(a) Marketable securities with a cost of $6,829,000 at June 30 . 1978 (market value of $5,259,000) have been pledged as collateral under thi s
$6,000,000 line of credit .
(b) Aggregate unsecured line of credit amounts to $5,500,000 .
(c)
Federally Insured Student Loans with a face value of $1,082,000 a t
June 30 . 1978 have been pledged as collateral for the note . Payment s
on the student loans are used to reduce the principal of the note, wit h
any balance due in 1983 .
In addition, the University has aggregate unsecured bank lines of credit amounting to $26,600,000 (not in use at June 30, 1978) . The University maintain s
specified cash balances on deposit or pays commitment fees in connection wit h
these lines .
7.
Long-Term Debt :
Long-term debt outstanding at June 30, 1978 is as follows :
Principal of leaseholds payable :
Pennsylvania Higher Education Facilitie s
Authority (a), (d), (e )
Department of Education of the Commonwealth o f
Pennsylvania (b), (d )
The Hospitals Authority of Philadelphia, net o f
unamortized debt discount of $794,00 0
(Note 2) . (c), (d )
9 1/4% mortgage payable, due monthly through 199 2
2 3/4 0/0-3 1/2% Serial System First Mortgage Bonds ,
due semiannually through 2008 (f)
9 1/2% mortgage payable, due quarterly through 1999 (g)
Other
6,148,000
4,648,000
292,000
$132,157,000
(a) Annual lease payments remaining through 2008 on a student housin g
facility range from approximately $3,276,000 to $3,467,000 and ar e
equal to principal and interest payments (rate ranging from 4 .2% t o
4 .9%) on serial revenue bonds issued by the Authority to finance th e
facility .
(b) Aggregate annual payments under four building leases extendin g
through 2004 are approximately $1,473,000 including interest at a
6 .5% effective rate .
(c)
The Series of 1978 bonds bear interest at rates ranging from 5 .3% t o
6% and mature in annual amounts ranging from $1,405,000 in 1989 t o
$1,300,000 in 1997 with two final maturities of $11,970,000 in 2007 an d
$16,050,000 in 2008 . Rental payments by the Hospital ranging fro m
$3,710,000 in 1983 to $307,000 in 2008 are equivalent to funding : (1 )
bond principal and certain deposits to a Restricted Funded Depreciatio n
Subaccount, (2) interest, (3) Trustee fees, less (4) earnings in an d
transfers from the Restricted Funded Depreciation Subaccount . Earnings in the Restricted Funded Depreciation Subaccount are to be use d
to partially pay bond maturities from 1989 through 2007 . Earnings an d
principal of this subaccount will pay the entire maturity in 2008 . Se e
Note 2 for additional information concerning these bonds .
(d)
Upon final payment, the lessors will convey to the University full titl e
to the respective facilities .
(e) Secured by a first lien on a portion of the University ' s plant .
(f)
Tuition and occupancy charges are pledged in connection with thes e
bonds . All pledges are relieved when required payments are made .
(g) An annual interest grant of approximately $202,000 is received fro m
the Department of Health, Education and Welfare, resulting in a n
effective interest rate of approximately 3 .6% over the term of th e
mortgage .
Required principal payments on all of the above indebtedness will approximat e
$1,600,000 in 1979, and $1,700,000 in 1980 .
8 . Assets Held in Trust by Others :
Assets held in trust and managed by outside fiscal agents are not included i n
the University's balance sheet . Income earned on all such assets approximate d
$1,200,000 in 1978 . Those assets of which the University is the sole or principa l
beneficiary of income had a reported cost of $13,924,000 at June 30, 197 8
($15,299,000 market value) .
9. Retirement Benefit Plans :
Charges to current unrestricted expenditures were $4,933,000 in 1978 an d
$4,545,000 in 1977 under the Teacher ' s Insurance and Annuity Association an d
the College Retirement Equity Fund plans .
The provision for pension expense related to the noncontributory plan wa s
$2,320,000 in 1978 and $1,940,000 in 1977 . At July 1, 1977 (date of latest valuation), the assets of the plan exceeded the actuarially computed value o f
vested benefits . Effective July 1, 1978, the plan was amended to provide a n
improved benefit formula, the effect of which is not presently determinable .
10. Reconciliation and Reclassification o f
Hospital Current Unrestricted Fund Balance :
As discussed in Note 1, the accompanying financial statements have been pre pared in accordance with generally accepted accounting principles for college s
and universities . Such principles differ in several significant respects from generally accepted accounting principles for hospitals largely because of the influence of third-party cost reimbursement .
The more significant differences in accounting are as follows : (1) property an d
equipment and related debt are accounted for in the plant funds group unde r
university accounting, while hospital accounting treats such accounts as unrestricted current funds ; (2) depreciation is recognized as a current expens e
under hospital accounting but not under university accounting ; and (3) equipment additions funded from current funds are treated as expenditures unde r
university accounting, but are capitalized under hospital accounting .
Prior to fiscal 1978, it was the University's policy, in preparing the accompanying statements, to present University Hospital's change in current unrestricte d
fund balance as it appeared on the Hospital ' s separately prepared statement of
revenues and expenses (not included herein) in order to maintain some consistency between the financial statements . However, as a result of the accounting differences discussed above, this presentation required that an adjustment b e
made to unexpended plant funds to reflect the net differences in accountin g
principles . Depreciation, for example, was reflected as a reduction of both th e
Hospital ' s current unrestricted fund balance and the investment in plant fund ;
an addition to the unexpended plant fund was therefore made to offset th e
duplicating reduction in fund balances . Similar adjustments were made to reflect other accounting differences . The resulting cumulative unexpended plan t
fund balance amounted to approximately $3,729,000 at June 30, 1977 .
31
Because of the increasing significance of the financial position of the Hospital ,
the University is currently re-evaluating its policy of financial presentation o f
University Hospital . Pending a final determination of such presentation, and t o
fully conform with generally accepted college and university accounting, th e
University has reclassified the aforementioned unexpended plant balance t o
current unrestricted funds . Current funds expenditures continue to reflect th e
Hospital's depreciation provision and capitalization of property additions . However, for fiscal 1978, a corresponding adjustment is made separately in th e
statement of current funds revenues, expenditures and other changes .
A reconciliation of the Hospital's current unrestricted fund balance reported i n
the accompanying statements to the balance separately reported by the Hospital is as follows :
Hospital current unrestricted fund balanc e
shown in University statements
Add fund balances classified as curren t
unrestricted by Hospital and reporte d
by the University as follows :
Endowment and similar funds
Plant funds
Current unrestricted fund balance as separately reported b y
the Hospital
11 .
$ 4,083,00 0
1,914,000
31,920,00 0
$37,917,000
Medical Malpractice Insurance :
During the year ended June 30, 1978, the University provided medical malpractice insurance for its full-time physicians and the University Hospital as require d
by Commonwealth of Pennsylvania legislation . This coverage, provided by a n
insurance company and the Pennsylvania Medical Professional Liability Catastrophe Loss Fund, are occurrence basis policies with upper limits for physician s
of $1,100,000 per incident and $3,300,000 aggregate and upper limits for th e
University Hospital of $1,100,000 per incident and $4,000,000 aggregate . Th e
policies have a $100,000 self retention per incident .
Except for claims relating to the University Hospital (which are substantiall y
reimbursable as paid), the University has accrued for losses from uninsure d
claims that can be reasonably estimated based upon experience and othe r
factors . The University might have significant additional exposure to loss, bu t
such additional exposure, if any, cannot be reasonably determined at this time .
The total provision for medical malpractice losses and insurance premiums wa s
approximately $1,500,000 for the year ended June 30, 1978 .
32
12 . Contingencies :
Reference is made to Notes 5 and 11 regarding guarantees in connection wit h
Graduate Hospital and malpractice insurance, respectively .
The University has guaranteed certain obligations, principally mortgages an d
leases on properties owned by affiliates, totaling approximately $9,150,000 a t
June 30, 1978 .
The University is contesting a ruling by the Philadelphia Board of Revision o f
Taxes that a number of properties occupied by the University or its students ,
consisting of the student dormitories financed through (and technically owne d
by) the Pennsylvania Higher Educational Facilities Authority, are subject to rea l
estate taxes to the extent of a portion of their assessed value . The amount o f
tax that would be owed by the University if the City is successful in sustainin g
its position would approximate, exclusive of any interest and penalties, $350,000
for each of the years 1971 through 1976 and $455,000 for each of the year s
after 1976 .
There are various other contingent liabilities that arise in the ordinary course o f
the University's educational and health care activities . All funds expended b y
the University in connection with government grants, contracts and appropriation s
are subject to audit by governmental agencies . A substantial portion of th e
operating revenues of University Hospital is based upon allowable costs required to be reported to and audited by third-party payors . In addition, th e
University is involved in various litigation .
While the ultimate disposition of the aforementioned contingent liabilities is no t
determinable at this time, management is of the opinion that any losses tha t
might be sustained, and which are not already provided for or covered by insurance, would not materially affect the University's financial position .
Current Funds Revenue s
for the year ended June 30, 197 8
Unrestricted
EDUCATIONAL AND GENERAL :
Student tuition and fees :
Tuition
University general fee (net of transfe r
to Reserve for Physical Plan t
Development of $628,210)
Miscellaneous fees
Commonwealth appropriations :
Dental Clinic
General Maintenance
School of Medicine
School of Veterinary Medicine University Museum
U .S . Government contracts and grants :
Direct costs :
Training
Research
Indirect costs :
Current year (net of transfer t o
Reserve for Physical Plan t
Development of $695,966) Prior years
Investment income
Gifts and private grants
Sales and services of University Hospital
34
Restricte d
Tota l
$70,311,297
$391,74 5
$70,703,04 2
4,025,723
1,090,815
75,427,835
287,55 4
343,97 6
1,023,27 5
4,313,277
1,434,79 1
76,451,11 0
500,00 0
10,437,00 0
2,916,90 0
2,572,00 0
50,00 0
16,475,90 0
500,000
10,437,000
2,916,90 0
2,572,00 0
50,00 0
16,475,900
5,667,34 2
37,846,70 6
5,667,34 2
37,846,70 6
17,198,927
610,57 6
44,124,62 4
14,274,92 7
3,534,57 6
61 .323,55 1
5,055,355
5,835,33 7
10,890,69 2
3,463,255
15,474,10 3
18,937,35 8
14,274,927
2,924,000
77,234,067
77,234,06 7
CURRENT FUNDS REVENUES—Continued
Unrestricted
Sales and services of other educationa l
and medical activities :
Annenberg Center
Dental Clinic
New Bolton Center
Group Practice
University Museum
Veterinary Hospital
Other
Restricted
Tota l
361,330
966,437
93,902
4,086,278
$884,559
133,149
165,533
18,148,776
58,376
91,686
1,961,176
21,443,255
$884,559
1,519,51 6
1,443,775
18,148,776
419,70 6
1,058,12 3
2,055,07 8
25,529,53 3
. .. .. .. .. ..
876,147
4,067,813
7,780,600
12,724,560
876,14 7
4,067,81 3
7,780,60 0
12,724,56 0
. .. .. .. .. ..
271,223
12,995,783
271,22 3
12,995,783
2,713,345
201,654,962
700,737
101,597,114
3,414,08 2
303,252,076
10,329,023
3,712,882
4,147,492
925,323
40,575
456,126
.. .. .. .. .. .
.. .. .. .. .. .
147,419
1,230,237
10,785,14 9
3,712,88 2
4,147,49 2
1,072,74 2
1,270,81 2
19,155,295
1,833,782
20,989,07 7
$220,810,257
$103,430,896
$324,241,153
$1,386,367
1,278,242
Student aid :
Scholarships, fellowships and prizes :
Investment income
Gifts and private grants
U .S . Government
Student enterprises
Other sources
Total educational and general
AUXILIARY ENTERPRISES :
Dormitories
University Bookstore
University Dining Service Intercollegiate Athletics
Other
Total current funds revenues . . . .
35
Current Funds Expenditures
for the year ended June 30, 1978
Unrestricted
EDUCATIONAL AND GENERA L
Instruction :
Colleges, schools and departments :
Engineering and Applied Science $3,432,39 9
21,189,51 1
Faculty of Arts and Science
1,411,70 4
Graduate School of Education 1,974,99 1
Graduate School of Fine Arts 2,016,98 7
Law School
1,747,00 0
Provost Center
School of Allied Medica l
Professions
773,30 7
School of Dental Medicine
3,210,03 2
School of Medicine
7,382,07 6
School of Nursing
1,166,81 5
School of Public and Urban Policy
399,027
School of Social Work
859,69 9
School of Veterinary Medicine 4,219,96 1
Wharton School of Finance an d
8,122,858
Commerce
Other
57, 906,367
Research :
Engineering and Applied Science Faculty of Arts and Sciences Graduate School of Education Graduate School of Fine Arts
Law School
Provost Center
School of Allied Medica l
Professions
School of Dental Medicine
School of Medicine
School of Public and Urban Policy School of Social Work
School of Veterinary Medicine
Wharton School of Finance an d
Commerce
Other
University Hospital
36
78,951,588
Curren t
Salaries Expense an d
and Wages Equipmen t
Restricted
Tota l
$400,04 1
1,101,90 2
340,490
112,03 5
98,404
1,077,534
$3,832,440
22,291,41 3
1,752,194
2,087,02 6
2,115,39 1
2,824,53 4
$2,687,821
16,434,748
1,184,614
1,447,774
1,503,780
1,510,792
$1,144,61 9
5,856,66 5
567,58 0
639,25 2
611,61 1
1,313,74 2
798
2,002,379
4,406,528
88,500
214,87 7
250,34 2
979,96 1
774,10 5
5,212,41 1
11,788,60 4
1,255,31 5
613,90 4
1,110,04 1
5,199, 92 2
544,151
3,433,367
8,841,500
897,728
402,325
824,082
3,667,472
229,95 4
1,779,04 4
2,947,10 4
357,58 7
211,57 9
285,959
1,532,450
2,595,66 0
835,67 7
10,718,51 8
835,67 7
6,193,815
332,392 ,
4,524,70 3
503,285
14, 505,12 8
72,411,49 5
49,906,361
22, 505,134
3,185,09 1
7,659,57 6
57,45 9
182,33 8
127,24 1
2,167,42 8
3,185,09 1
7,659,57 6
57,459
182,33 8
127,24 1
2,167,428
1,907,539
3,900,157
31,011
99,913
63,085
1,093,594
1,277,55 2
3,759,41 9
26,448
82,42 5
64,156
1,073,834
23,10 9
2,696,89 8
24,426,77 8
90,44 6
35,76 0
3,128,756
23,10 9
2,696,898
24,426,778
90,446
35,760
3,128, 75 6
16,306
1,527,946
13,094,306
63,577
26,939
1,571,519
6,803
1,168,95 2
11,332,47 2
26,86 9
8,82 1
1,557,23 7
5,187,254
1,185,02 6
5,187,254
1,185,026
2,529,789
387,841
2,657,46 5
797,18 5
50,153,160
50,153,16 0
26,313,522
23,839,63 8
78,951,588
34,859,419
44,092,16 9
CURRENT FUNDS EXPENDITURES-Continue d
Other educational and medica l
activities :
Annenberg Center
Dental Clinic
New Bolton Center
Group Practice . . . . :
University Museum
Veterinary Hospital
Other
Student aid :
Free scholarships and tuitio n
grants
Scholarships, fellowships an d
prizes
Student enterprises
Curren t
Salaries Expense an d
and Wages Equipment
Unrestricted
Restricted
Total
$14,371
2,750,282
2,057,494
. . . . . . . . . .
1,083,646
1,191,114
673,779
$885,958
136,178
192,707
15,109,777
390,802
155,954
1,230,500
$900,329
2,886,460
2,250,201
15,109,777
1,474,448
1,347,068
1,904,279
$253,183
1,801,699
887,823
9,809,080
637,212
662,751
1,312,425
$647,146
1,084,761
1,362,37 8
5,300,69 7
837,236
684,31 7
591,854
7,770,686
18,101,876
25,872,562
15,364,173
10,508,389
10, 816, 299
. . . . . . . . . .
10, 816, 299
. . . . . . . . . .
10, 816, 299
. . . . . . . . . .
. . . . . . . . . .
12,724,560
271,223
12,724,560
271,223
3,161,655
31,284
9,562,905
239,93 9
10,816,299
12,995,783
23,812,082
3,192,939
20,619,14 3
18,451
14,283,509
5,909,738
8,373,77 1
Operation and maintenance of plan t
14,265,058
General institutional expense 12,667,791
1,240,968
13,908,759
3,209,767
10,698,99 2
General administration
6,773,367
. . . . .. .. . .
6,773,367
5,413,418
1,359,949
Libraries
5,898,976
287,863
6,186,839
3,553,897
2,632,942
Student services
Total educational and general . .
AUXILIARY ENTERPRISES :
Dormitories
University Bookstore
University Dining Service
Intercollegiate Athletics
Other
Total current funds expenditures
4,369,401
350,068
199,419,533
97,653,297
297,072,830 ,
4,719,469
9,926,103
3,651,040
4,105,198
3,216,311
114,403
460,416
. . .. . . . . . .
47,475
278,951
1,231,557
10,386,519
3,651,040
4,152,673
3,495,262
1,345,960
2,611,130 ,
2,108,339
150,334,364
146,738,466
880,405
542,102
1,603,583
1,113,981
714,888
9,506,11 4
3,108,938
2,549,090
2,381, 28 1
631,072
21,013,055
2,018,399
23,031,454
4,854,959
18,176,49 5
$220,432,588
$99,671,696
$320,104,284
$155,189,323
$164,914,961
37
Educational Plan t
June 30, 1978
LAN D
Campus and other plots of ground situate in the City of Philadelphia
Plots of ground situate outside the City of Philadelphia Total land
BUILDINGS AND CONTENTS
UNIVERSITY
Annenberg School of Communications
Annenberg Center for Communications Art s
and Sciences
Astronomical Observatory
Bennett Hall
Berkshire Hall
Biology Building
Chaplain's House (including land)
Chemistry Building Chimpanzee Facilities
Class of 1923 Ice Rink
College Boat Club House
College Hall
Colonial Penn Center Building
Commercial Facilities
Denial Medicine, School of
Dentistry Research Building and Laboratory
Dietrich Graduate Library Center Dietrich Hall
Dormitories Quadrangle
Dormitories-Stouffer Triangle Eisenlohr Hall
Fels Center of Government
Fine Arts Building
Franklin Building
Franklin Field Stadium and J . William White
Training House
Furness Building
Gimbel, Bernard F ., Gymnasium Hayden, F . V., Building
Hill, Robert C ., Residence Hall
Hoffman, Georgia and Philip, Researc h
Center for Animal Reproduction
Hollenback, William M ., Center Houston Hall
Hutchinson Gymnasium and Palestra
Irvine Auditorium
Johnson, Robert Wood, Pavilion Kings Court Residence Hall
$12,975,520
703,73 3
$13,679,253
Total
Buildings
Content s
$2,355,717
$1,944,773
$410,94 4
5,419,371
168,158
1,467,517
591,036
3,538,703
35,130
15,698,776
279,414
3,374,012
140,323
1,133,643
778,595
1,213,646
5,263,431
868,042
2,007,857
5,355,925
10,248,958
5,932,599
160,177
286,407
672,810
1,004,672
5,024,982
92,890
1,301,340
497,088
2,084,881
32,001
11,433,449
276,093
2,756,656
1
593,754
721,407
1,081,826
2,637,071
490,166
416,826
2,453,914
9,303,160
5,603,374
54,103
195,279
377,761
214,082
394,38 9
75,26 8
166,17 7
93,94 8
1,453,82 2
3,12 9
4,265,32 7
3,32 1
617,35 6
140,32 2
539,88 9
57,18 8
131,820
2,626,360
377,876
1,591,03 1
2,902,01 1
945,798
329,225
106,074
91,128
295,049
790,590
3,122,731
1,431,140
299,334
1,270,879
3,917,769
1,593,456
900,014
154,173
870,800
3,559,143
1,529,275
531,12 6
145,16 1
400,07 9
358,626
1,337,258
899,165
1,180,925
1,309,230
1,137,600
7,920,424
989,680
1,333,851
760,791
875,740
976,416
975,637
3,260,006
989,680
3,40 7
138,374
305,18 5
332,81 4
161,96 3
4,660,41 8
.. .. .. .. ..
t BUILDINGS OWNED BY GENERAL STATE AUTHORITY . UNIVERSITY SHARE OF COST OF BUILDIN G
SHOWN ON THIS STATEMENT .
38
EDUCATIONAL PLANT-Continued
Total
727 Knollwood Terrace Laboratory for Research on the Structur e
of Matter
Law School
Law School Dormitories and Dining Hall Leidy, Joseph, Laboratory of Biology Levy Oral Health Sciences Building Levy Tennis Pavilion
Lippincott Building
3533 Locust Walk
3537 Locust Walk
3609-11 Locust Walk
3615 Locust Walk
3619 Locust Walk
3627 Locust Walk
3643 Locust Walk 3700 Locust Walk
3732 Locust Walk
3809 Locust Walk
3914 Locust Walk
Logan Hall
Mayer, Harold C , Residence Hall
McNeil, Robert Lincoln, Building Medicine, School of, Buildings
Morgan Building
Morris Arboretum
Murphy, Michael C ., Field House
Museum Parking Garage
Music Building
New Bolton Center
Palestra Tennis Courts
Parking Garage
3907 Pine Street
Potter Hall Parking Lot
Power Transmission Research Laboratory Psychology Office Building
Richards, Alfred Newton, Medical Researc h
Building
Ringe, Thomas B ., Squash Courts
Buildings
Content s
$42,490
$42,490
. .. ... .. ..
7,103,166
5,329,741
963,176
4,557,085
5,423,660
1,021,159
1,697,438
313,284
38,720
34,568
200,629
33,767
163,788
23,684
274,620
142,214
170,162
61,803
837,886
1,274,141
4,178,723
13,968,588
84,119
297,186
66,596
1,832,042
427,416
4,797,012
238,076
1,049,590
33,740
67,290
894,504
296,225
2,605,839
4,518,777
896,596
1,951,097
2,629,182
886,169
757,848
262,932
24,272
17,086
200,165
33,767
163,788
23,68 4
261,427
121,217
170,162
61,803
448,750
1,191,033
3,270,917
6,702,665
43,033
94,090
66,340
1,831,816
314,616
1,961,020
233,381
992,342
15,168
67,290
1
241,620
$4,497,32 7
810,96 4
66,58 0
2,605,98 8
2,794,47 8
134,99 0
939,59 0
50,35 2
14,44 8
17,48 2
464
. .. .. ... ..
.. ... .. .. .
6,329,486
574,713
2,326,850
523,306
4,002,63 6
51,407
13,19 3
20,99 7
... .. .. .. .
. .. .. ... ..
389,13 6
83,10 8
907,80 6
7,265,92 3
41,08 6
203,09 6
25 6
22 6
112,80 0
2,835,99 2
4,69 5
57,24 8
18,57 2
.. .. ... .. .
894,503
54,605
t BUILDINGS OWNED BY GENERAL STATE AUTHORITY . UNIVERSITY SHARE OF COST OF BUILDIN G
SHOWN ON THIS STATEMENT .
EDUCATIONAL PLANT-Continue d
Total
Rittenhouse, David, Laboratories
Sergeant Hall Parking Lot Skinner, James M ., Hall
Smith, Edgar Fahs, Chemistry Laboratory Social Science Center 300 S . 36th Street
235 S . 39th Street
307 S . 39th Street
3908 Spruce Street
3905 Spruce Street (including land) 3916 Spruce Street
3940 Spruce Street
Student Housing
Tandem Accelerator Laboratory
Towne Building
University Press Utilities System
Vance Hall
Van Pelt, Charles Patterson, Library Veterinary Medicine, School of, an dHospital
3400 Walnut Street (including land)
3817 Walnut Street War Memorial Flag Pole
Weightman Hall
Wharton Sinkler Williams, Edwin B . and Lenore R ., Humanitie s
and Language Hall Non-University Buildings
Other
Buildings under construction
Total University
UNIVERSITY MUSEU M
Museum Building
Buildings
Content s
$5,295,195
56,837
1,746,018
296,102
2,122,035
20,950
90,370
31,990
175,417
238,730
180,939
138,187
58,093,061
931,418
3,378,463
46,080
5,721,936
7,020,686
10,500,583
5,849,400
80,266
18,275
100,446
816,624
595,315
$2,772,187
56,837
1,577,592
151,667
1,187,097
20,950
90,370
31,990
162,599
204,997
180,939
134,564
57,657,731
565,936
1,848,648
22,000
5,715,405
6,364,705
923,388
2,343,806
50,971
18,275
100,446
452,164
556,045
$2,523,00 8
.. .. .. .. ..
168,42 6
144,43 5
934,93 8
. .. .. .. .. .
. .. .. .. .. .
. .. .. .. .. .
12,81 8
33,733
.. .. .. ... .
3,623
435,33 0
365,48 2
1,529,81 5
24,08 0
6,53 1
655,98 1
9,577,195
3,505,594
29,29 5
... .. .. .. .
.. .. .. .. ..
364,460
39,270
6,265,800
4,456,523
2,280,671
16,055,058
290,256,916
5,705,451
1,985,922
2,023,510
15,805,650
210,500,965
560,34 9
2,470,60 1
257,16 1
249,40 8
79,755,95 1
12,521,628
6,533,208
5,988,420
t BUILDINGS OWNED BY GENERAL STATE AUTHORITY . UNIVERSITY SHARE OF COST OF BUILDIN G
SHOWN ON THIS STATEMENT.
40
EDUCATIONAL PLANT—Continue d
HOSPITAL OF THE UNIVERSIT Y
OF PENNSYLVANI A
Total
Buildings
Administration Building
Agnew-Dulles Wing
Alumni Hall Building
Centrex Building
Donner, William H ., Center for Radiology
Gates Building
Gibson Wing
Maloney, Martin, Memorial Clinic
Nearly New Shop
Nurses Residence : English House
Piersol, George Morris, Rehabilitation Cente r
Ravdin Courtyard
Ravdin Institute
Silverstein Pavilion
White, J . William, Surgical Pavilion
Kitchen, Library
Medical
Other
Buildings under construction Reserve for depreciation
Total Hospital of the University
of Pennsylvania
Total buildings and contents
Total land
Total
educational
Content s
$12,830,89 0
12,830,89 0
24,495,654
6,104,58 9
63,446,385
56,720,08 4
6,726,30 1
366,224,929
$273,754,25 7
$92,470,672
13,679,25 3
plant
$751,98 5
5,890,30 0
233,31 7
672,67 9
4,650,79 2
6,227,76 2
1,307,47 8
4,864,01 9
44,94 6
1,381,668
1,388,93 1
3,795,47 4
8,558,32 3
34,011,00 8
3,398,75 8
1,509,75 7
587,29 9
1,445,29 1
495,95 1
81,215,738
$379,904,182
Associated Investments Fund
BALANCE SHEETS
September 30, 1977, December 31, 1977, March 31, 1978 and June 30, 197 8
September 30, 197 7
Cash in bank
Investments :
Bonds
Common Stocks
Total bonds and stocks
Sales and leasebacks
Mortgages Real Estate
Accounts receivable
Total net assets :
At book values
Market
Value s
Book
Values
NET ASSETS :
$
(153,103) $
53,088,508
62,502,568
(153,103 )
115,591,076
187,302
4,558,317
101,031
200,000
120,637,726
52,606,80 7
57,296,700
109,903,507
204,879
3,209,40 5
101,03 1
200,00 0
113,618,82 2
$120,484,62 3
$113,465,71 9
At market values
FUND :
Invested by participating funds
Undistributed accretions (net undistributed gains realized on sales, etc . of
investments and withdrawals of participating funds) Excess of market values of investments over book values 105,687,16 6
14,797,45 7
(7,018,904)
$113,465,71 9
Number of participating units 617,894
Value per unit
$183 .63
March 31, 1978
Book
Values
Market
Values
Book
Values
Marke t
Values
5,468 $
52,204,633
63,959,173
116 .163, 806
185,067
4,526,624
101,031
50,856,88 0
58,027,695
108, 884, 57 5
203,86 8
3,185,92 6
101,031
52,085,43 5
64,064, 236
116,149,67 1
180,54 2
4,494,46 4
101,031
120,976,528
112,375,400
120,925,708
14,808,047
(8,601,128)
$112,401,546
June 30, 1978
5,468
49,898,79 6
56,288,025
106,186,82 1
202,91 3
3,161,91 7
101,031
Book
Values
109,652,682
13,721,773
(11,273,026) $109,658,150
$
Marke t
Value s
6,255 $
6,25 5
53,805,529
63,941,627
117, 747,156
178,196
4,426,581
101,031
50,530,02 5
59,275,26 6
109, 805, 29 1
202,00 7
3,116,21 6
101,03 1
122,452,964 ,
113,224,54 5
14,373,01 8
(9,228,419 )
$113,230,80 0
Associated Investments Fund
STATEMENTS OF INCOM E
for the three-month periods ende d
September 30, 1977, December 31, 1977 ,
March 31, 1978 and June 30, 1978
September 30, 1977
Interest received on bonds, net of accrued interest on bond s
purchased
Dividends received on common stocks Mortgage interest
Other residual income
December 31, 197 7
$944,728
750,921
81,489
16,372
$1,098,579
615,629
13,901
29,412
Total distribution to participating units
Number of participating units Distribution per participating unit
44
$1,056,445
753,997
94,020
23,358
$1,793,510
$1,757,521
Deduct :
Salaries, fees, postage, etc ., allocable to fund
Indirect expense recovery on yield
117,486
320,120
123,710
312,058
March 31,1978
June 30, 1978
$1,056,11 1
792,20 6
12,61 2
18,406
$1,927,820
131,414
343,114
$1,879,335
121,72 1
335,704
435,768
437,606
474,528
457,425
$1,321,753
$1,355,904
$1,453,292
$1,421,91 0
617,894
$2 .14
620,606
$2 .18
626,212
$2.32
631,24 5
$2.25
45
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