The University Record, September 25, 1995

General Fund expenditures totaled $798 million in 1994–95

Total expenditures in the General Fund of the University’s three campuses in 1994–95 totaled $798,286,000, a 5.3 percent increase over the previous year.

Revenues totaled $798,326,000, an increase of 5.2 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 $416,971,000 and accounted for 52.2 percent of the fund last year, compared with 51.5 percent in 1993–94, and 40.3 percent in 1985–86. State appropriations totaled $306,524,000 and accounted for 38.4 percent of the General Fund last year, compared with 38.7 percent in 1993–94 and 51.8 percent in 1985–86.

The General Fund is one of four 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 1994–95 showed:

  • Designated Fund: Expenditures and transfers in this fund, which includes departmental activities and other revenues with use restricted by University policies, totaled $53,204,000.

  • 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 $418,870,000.

  • 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 $1,130,619,000, a 6.6 percent increase from the previous year.

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

    “Salaries and wages paid directly to employees represented 44.2 percent of the total operating expenditures and transfers. An additional 12.4 percent was spent for employee benefit programs. The total spent for these two items was $1,358,712,000 or 56.6 percent of the total operating expenditures and transfers.

    “Private gifts and sponsored programs for operations increased by $11,504,000 from 1993-94 to $129,508,000 in 1994—95. Private gifts for permanent funds were $66,143,000, compared with $51,059,000 in 1993—94. Total gifts and grants were greater than those of the previous year by more than $26 million.

    “The volume of research was $409,236,000 in 1994—95, an increase of $23,279,000 over the previous year. The federal government continues to provide the largest portion of funds and represents 67.9 percent of the total.

    “Federal support totaled $342,533,000 for 1994–95, an increase of $22,882,000 over the previous year. The Department of Health and Human Services was the major source of federal funding, accounting for $177,985,000, or 52 percent of the total.

    “Scholarships and fellowships financed from the four operating funds totaled $126,724,000, reflecting an increase of $7,130,000 from 1993–94.”

    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 1994–95 revealed:

  • Student Loan Fund: The total assets in this fund had a year-end balance of $100,364,000, an increase of $3,806,000 over the previous year.

  • Endowment and Other Invested Funds: Assets in these funds at year-end totaled more than $1.24 billion, net of accounts payable, on the basis of book value. The market value totaled more than $1.35 billion.

  • Plant Fund: Properties, consisting of land, land improvements, buildings, equipment and construction in progress, totaled more than $1.7 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, and amounted to more than $97 million at year end.