11-6-98

TRUSTEES ACCEPT AUDIT REPORT, DISCUSS INVESTMENTS

	COLUMBUS -- The Ohio State University Board of Trustees on 
Friday (11/6) approved an auditor’s report, heard an update on 
university investments, and authorized the purchase and sale of 
property.

Trustees accept auditor’s annual financial report

	Trustees voted to accept the annual audit of university 
financial statements conducted by Deloitte and Touche LLP.  The 
accounting firm examined the university’s accounts and records 
for fiscal year 1997-98 and found them to be in satisfactory 
condition by issuing an unqualified audit opinion.

	Greta Russell, university controller, told trustees that 
Ohio State’s financial position continued to improve during the 
year.  The report showed that for the year ending June 30, the 
university had revenues of $2.0 billion and expenditures of $1.7 
billion, excluding capital expenditures and principal payments on 
long-term debt.  The university had assets worth $4.3 billion, an 
equity balance of $3.7 billion and long-term debt of $233 
million.

	Russell pointed out to trustees that only 15 percent of the 
university’s revenues comes from tuition and fees, and only 25 
percent comes from state support.  Of the $1.11 billion for 
educational and general expenses during the year -- a 6.7 percent 
increase over the previous year -- 42 percent was spent on 
instruction (an increase of 8 percent), 18 percent on research, 8 
percent on public service, 8 percent on academic support, 6 
percent on student scholarships and fellowships, and 4 percent on 
direct student services.  The remainder went for other support 
costs and mandatory transfers.

	Russell told trustees that new governmental accounting 
standards required that the university recalculate its 
investments to reflect market value, which resulted in a $108 
million increase in total assets and equity from the July 1, 
1997, start of the fiscal year.  The rules mean that fluctuations 
in asset prices will have a direct impact on the university’s 
financial reports.  She also discussed the sound financial 
position of the university’s Medical Center, telling trustees 
about the ways the Medical Center and other auxiliary and 
departmental earnings operations contribute to the university’s 
teaching, research and public service missions.

Trustees hear report on university endowment
	University Treasurer James L. Nichols told trustees that the 
university’s endowment ended the month of October at $873.6 
million, up from $828.6 million at the end of September.  Even 
so, the fund is down 6 percent from its high of $928.5 million on 
June 30.  

	“The fund has been moving back up along with the markets,” 
Nichols told trustees.  “If all goes well, it should recover by 
the end of the calendar year.”

	Nichols also updated trustees on the status of the search 
for a custodian for endowment securities, telling them that a 
selection likely would be made by next month.  Nichols also told 
trustees about two bond sales of the previous year and explained 
how the university votes its proxies.

Trustees authorize purchase and sale of property

	Trustees authorized the university to purchase a building 
and land at 2104 Tuller St. near the Columbus campus.  The Office 
of Housing, Food Services and Event Centers will pay $300,000 to 
the Columbus Foundation for the property east of High Street and 
south of Lane Avenue.  It had been appraised for $340,000.

	Maryhaven Inc. currently has an agreement with University 
Hospitals to provide extended care for women who suffer from 
chemical or alcohol abuse.  The program operates a residential 
treatment center at 231 W. 10th Ave., but that facility is now 
needed for student scholarship housing.  By purchasing the Tuller 
Street property, the university will be able to provide the 
needed student housing and continue the program with Maryhaven 
and the hospitals. The Housing office will manage the property 
and lease it to Maryhaven at a rate sufficient to cover all 
acquisition, operating and administrative costs.  Maryhaven will 
be responsible for ordinary operating expenses and maintenance 
and repair.

	In the event Maryhaven would cease its program at this 
location and return the facility to the university, the building 
could be used for student housing.

	Trustees also authorized the university to sell a one-story 
building and half-acre parcel of land at 460 Havens Corners Road, 
just east of Hamilton Road in Gahanna, to Third Federal Savings 
and Loan Association of Cleveland for $425,000.

	The university purchased the property in 1987 as part of the 
larger purchase of several Humana facilities.  Since then, it has 
been operated as a MedOhio facility.  At the end of last year, 
MedOhio relocated to a larger building next door at 504 Havens 
Corners Road.

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Contact:  Greta Russell, university controller, (614) 292-6220
		James L. Nichols, university treasurer, (614) 292-4777
	

Written by David Bhaerman, University Communications, 
(614) 292-8422