Harvard posted a budget surplus and record giving in the past fiscal year, showing the University's continued fiscal health, according to the annual financial report to be released today.
The University experienced a $300,000 surplus on its $785.2 million budget for the fiscal year ending June 30, 1987, the report says. In the same year giving reached $178 million, 23 percent more than last year.
Federal tax reforms, which went into effect this year and provided a disincentive for giving, spurred a prereform onslaught of donations last December, financial officials said.
The report's principal findings include:
Harvard spent $108 million on financial aid--including, loans, scholarships, and term-time employment--$8 million more than in the previous year. Scholarships increased to $63.6 million, about 1 percent less than the simultaneous rise in students' fees.
The Faculty of Arts and Sciences showed a $9000 surplus on its $242 budget. The University's biggest profit center, the Extension School, took in a $1.7 million surplus on its $15 million budget.
The Kennedy School of Government was the only school to run up a deficit, falling $342,000 short on its $25.5 million budget.
The financial report said that student expenses have continued to fund the largest portion of the annual budget.Tuition paid for 33 percent or $260 million, andincome from the endowment funded 17 percent of thebudget or $134 million.
The share of the budget funded by endowmentincome has steadily declined over in the lastdecade, forcing tuition and fundraising to pick upthe difference. A recently approved plan toincrease the endowment pay-out rate is expected toalleviate pressure on the other sources of income.
This year, Harvard also reduced its debt load,incurred from borrowing for past building costs,by $11 million to $771 million.
The report expanded its coverage of capitalplanning, which reflects the current priorityplaced by the University on building maintenance.Financial Vice President Robert H. Scott said theUniversity will need $50 to $80 million a year tofund maintenance, but Harvard currently allocatesonly $30 million a year toward these expenses.
The traditional source of funds for theseprojects--tax-free borrowing--was cut off lastJanuary by the new tax law.
Scott said in the future the administrationwill funnel more funds and effort into fundraisingto gain support for these capital projects
