DETAILS OF FINANCIAL STATEMENT FOR 1931-2 GIVEN BY UNIVERSITY

The following material concerning the recent Treasurer's Report made public last week by Henry L. Shattuck '01, Treasurer of the University, was obtained yesterday from officials in Lehman Hall.

During the twelve months ended June 30, 1932, when operating expenses amounted to $14,111,225,33, academic expenses accounted for approximately $10,000,000 of that figure. The figures for the year, which represent the largest expenditure in the history of the University, show an increase over the previous year of $644,233.91.

The book value of the endowment fund, land and buildings used for educational purposes, was $123,415,389.51 on June 30, 1932. The Biological Museum caused a big increase in this item. Approximately $5,000,000 was gained from the Wyoth estate, granted to Harvard for use in scientific work, primarily in Biology. The endowment figure as given represents an increase of $6,211,139.17 over the previous year; on the basis of the 5 1-4 per cent return which the University has averaged on its investments, this represents an increase in income of approximately $325,000. The University made a profit of 3 per cent of the volume of business in the Dining Halls.

The financing of Harvard is so organized that, with the exception of the Library, the Bussey Institute, and the Dental and Theological Schools, it is not possible to use the surplus of one department to meet the deficit in another. For this reason the University account is not a straight profit and loss statement.

The core of the University's finances is the University's unrestricted income, from which the general overhead expenses are paid. It is estimated that during the next fiscal year there will be a shrinkage in the University's income of from $700,000 to $800,000.