General Fund expenditures totaled $892 million in 1996-97

September 18, 1997

ANN ARBOR—Total expenditures and transfers in the General Fund of the University of Michigan’s three campuses in 1996-97 totaled $892,962,000.

Revenues totaled $900,183,000, an increase of 4.3 percent, said Chandler W. Matthews, interim executive vice president and chief financial officer of the University, in the annual financial report to the Regents at their September meeting.

The General Fund relies largely on student fees and state appropriations. These funds are used to pay for teaching, research, library services, student scholarships, fellowships, maintenance, operation of physical properties and other services.

Student fees totaled $472,255,000 and accounted for 52.5 percent of the fund last year. In 1995-96, student fees accounted for 52.4 percent of the fund and 41.1 percent in 1987-88. State appropriations totaled $342,993,000 and accounted for 38.0 percent of the General Fund last year, compared with 38.9 percent in 1995-96 and 50.6 percent in 1987-88.

The General Fund is one of four operating funds that make up the University’s operating budget. Of the three remaining funds for the Ann Arbor, Dearborn and Flint campuses in 1996-97:

–The Designated Fund had expenditures and transfers including departmental activities and other revenues with use restricted by University policies that totaled $119,740,000.

–The Expendable Restricted Fund has gifts, grants and sponsored programs that come from alumni, other individuals, foundations, industry, federal, state and local government units. These funds are used for educational and general purposes. The total expenditures and transfers in this fund were $461,199,000.

–The Auxiliary Activities Fund includes activities maintained with revenue from their own operations, such as the University hospitals and residence halls. Total expenditures in this fund amounted to $1,155,571,000, a decrease of $310,000 from the previous year.

Vice President Matthews, commenting on the University’s total operating budget last year, noted: “Salaries and wages paid directly to employees represented 46.3 percent of the total operating expenditures and transfers. An additional 11.9 percent was spent for employee benefit programs. The total spent for these two items was $1,531,496,000 or 58.2 percent of the total operating expenditures and transfers.

“Private gifts and sponsored programs for operations increased by $16,944,000 from 1995-96 to $147,853,000 in 1996-97. Private gifts for permanent funds in 1996-97 were $70,153,000 compared with $45,691,000 in 1995-96. Total gifts and grants were greater than those of the previous year by approximately $41 million dollars.

“The volume of research was $458,478,000 in 1996-97, an increase of $17,183,000 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 $350,910,000 for 1996-97, an increase of $17,536,000 from the previous year. The Department of Health and Human Services was the major source of federal funding, accounting for $186,707,000, or 53.2 percent of the total.

“Scholarships and fellowships financed from the four operating funds totaled $150,837,000, reflecting an increase of $10,902,000 from 1995-96.”

In addition to the four operating funds, the University has four non-operating funds: –The Student Loan Fund had total assets at year end totaling $108,939,000; an increase of $4,100,000 over the previous year.

–The Endowment and Other Invested Funds had assets at year end totaling more than $1.74 billion. The market value of the assets totaled $2.05 billion.

–The Plant Fund’s properties consisting of land, land improvements, buildings, equipment and construction in progress, totaled more than $2.01 billion net of depreciation.

–The Agency Fund which accounts for University and employee contributions, deductions for employee benefits, payroll taxes and for amounts held in custody for others, amounted to more than $54 million at year end.