The University Record, September 26, 1994

1993–94 General Fund up 6.6 percent over previous year

Total expenditures in the General Fund of the U-M’s three campuses in 1993–94 totaled $758,453,000, a 6.6 percent increase over the previous year.

Revenues totaled $758,728,000, an increase of 6.6 percent, said Farris W. Womack, executive vice president and chief financial officer, in his annual

financial report to the Regents 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.

Student fees totaled $390,747,000 and accounted for 51.5 percent of the fund last year, compared with 49.9 percent in 1992–93, and 41.8 percent in 1984–85. State appropriations totaled $293,804,000 and accounted for 38.7 percent of the General Fund last year, compared with 41.4 percent in 1992–93 and 50.3 percent in 1984–85.

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 1993–94 showed:

  • Designated Fund: Expenditures and transfers in this fund, which includes departmental activities and other revenues with use restricted by Univer-sity policies, totaled $67,852,000.

  • 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. The total expenditures and transfers in this fund were $386,352,000.

  • Auxiliary Activities Fund: This fund includes activities maintained with revenue from their own operations, such as the University’s hospitals and residence halls. Total expenditures in this fund amounted to $1,060,362,000, an 11.1 percent increase from the previous year.

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

    “Salaries and wages paid directly to employees represented 44.4 percent of the total operating expenditures and transfers. An additional 12.9 percent was spent for employee benefit programs. The total spent for these two items was $1,302,273,000 or 57.3 percent of the total operating expenditures and transfers.

    “Private gifts and sponsored programs for operations increased by $10,414,000 from 1992–93 to $118,004,000 in 1993–94. Private gifts for permanent funds were $51,059,000 compared with $39,712,000 in 1992–93. Total gifts and grants were greater than those of the previous year by more than $21 million.

    “The volume of research was $385,957,000 in 1993–94, an increase of $12,230,000 over the previous year. The federal government continues to provide the largest portion of funds and represents 69.3 percent of the total.

    “Federal support totaled $319,651,000 for 1993–94, an increase of $16,844,000 over the previous year. The Department of Health and Human Services was the major source of federal funding, accounting for $170,173,000, or 53.2 percent of the total.

    “Scholarships and fellowships financed from the four operating funds totaled $119,594,000, reflecting an increase of $6,187,000 from 1992-93.”

    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 1993-94 showed:

  • Student Loan Fund: The total assets in this fund had a year-end balance of $96,558,000, an increase of $408,000 over the previous year.

  • Endowment and Other Invested Funds: Assets in these funds at year end totaled more than $1.02 billion, net of accounts payable, on the basis of book value. The market value totaled $1.03 billion.

  • Plant Fund: Properties, consisting of land, land improvements, buildings, equipment and construction in progress, totaled more than $1.6 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 $92 million at year end.