The University Record, September 21, 1992

General Fund expenditures total $665 million

Expenditures in the General Fund of the U-M’s three campuses in 1991–92 totaled $665,592,000, a 2.6 percent decrease from the previous year, the Regents were informed at their September meeting.

The General Fund relies largely on student fees and state appropriations, and pays for teaching, research, library services, student scholarships and fellowships, and maintenance and operation of physical properties, among other services.

Farris W. Womack, vice president and chief financial officer, in his annual financial report, said that student fees totaled $319,882,000 and accounted for 47.2 percent of the fund last year, compared with 47.1 percent in 1990–91 and 43 percent in 1982–83. State appropriations totaled $293,273,000 and accounted for 43.3 percent of the fund, compared with 42.7 percent in 1990–91 and 48.4 percent in 1982–83.

The General Fund is one of four current, or operating, funds that make up the U-M’s total operating budget. A review of the three remaining current funds for the Ann Arbor, Dearborn and Flint campuses in 1991–92 showed:

—Designated Fund: Expenditures and transfers in this fund, which includes departmental activities and other revenues with use restricted by University policies, totaled $57,760,000.

—Expendable Restricted Fund: Many gifts, grants and sponsored programs come from alumni and other individuals, foundations, industry and federal, state and local government units for educational and general purposes. Total expenditures and transfers in this fund were $356,382,000.

—Auxiliary Activities Fund: This fund includes activities maintained with revenue from units’ own operations, such as the University’s hospitals and residence halls. Total expenditures in this fund amounted to $871,736,000.

Commenting on the total operating budget last year, Womack noted:

“Salaries and wages paid directly to employees represented 48.5 percent of the total operating expenditures and transfers. An additional 12.6 percent was spent for employee benefit programs. The total spent for these two items was $1,191,792,000, or 61.1 percent of the total operating expenditures and transfers.

“Private gifts and sponsored programs for operations decreased by $1,483,000 from 1990–91 to $102,661,000 in 1991–92. Private gifts for permanent funds were $31,375,000 compared with $38,847,000 in 1990–91. Total gifts and grants were less than those of the previous year by almost $9 million.

“The volume of research was $346,532,000 in 1991–92, an increase of $22,443,000 over the previous year. The federal government continues to provide the largest portion of funds and represents 65.5 percent of the total.

“Federal support totaled $274,539,000 for 1991–92, an increase of $28,638,000 over the previous year. The Department of Health and Human Services was the major source of federal funding, accounting for $144,207,000, or 52.6 percent of the total.

“Scholarships and fellowships financed from the current funds totaled $103,544,000, reflecting an increase of $12,679,000 from 1990–91.”

In addition to the four operating funds, the U-M has four non-operating funds. A review of these funds for the three campuses in 1991–92 showed:

—Student Loan Fund: The total assets in this fund had a year-end balance of $92,696,000, an increase of $3,402,000 over the previous year.

—Endowment and Other Invested Funds: Assets, net of accounts payable-securities, in these funds at year end totaled more than $601 million on the basis of book value. The market value totaled more than $626 million.

—Plant Fund: Properties—consisting of land, land improvements, buildings, equipment and construction in progress—totaled more than $1.4 billion, net of depreciation.

—Agency Fund: This fund accounts for University and employee contributions and deductions for staff benefits and payroll taxes, and for amounts held in custody for others. The fund amounted to more than $77 million at year end.