Messenger - Vol. 1, No. 3, Page 4
Spring 1992
University of Delaware Annual Report
Report of the University Treasurer

Current Funds Revenues, Expenditures, Transfers and Other Changes
     University Current Funds Revenues increased 9.3 percent to
$313,533,000 in 1990-91.  Tuition and Fees accounted for 35.7 percent
of all revenues, up from 34.1 percent the prior year.  State
Appropriations were 21.2 percent of all revenues, down from 23.2
percent the prior year.  The major sources of Current Funds Revenues
and the major functions for Current Funds Expenditures, Transfers and
Other Changes are illustrated below.

Tuition and Fees
     Tuition and Fees Revenues of $111.9 million in 1990-91 were up
14.4 percent from the prior year.  This increase is caused by several
factors, including an increase in total students served, increased
tuition rates averaging 8.4 percent, and increases in specific user
fees, such as application fees and orientation fees.
     In addition, because of a mandated mid-year reduction in State
Appropriations discussed below, a mid-year tuition increase of $100
per student was necessary to make up some of the lost funding.

State Appropriations
     During 1990-91, the state of Delaware was required to deal with a
deteriorating financial situation, and mandated reversions of
operating appropriations from state-assisted organizations, including
the University.  The 1990-91 Appropriation received by the University
was $3.2 million less than had originally been approved by the state
and included in the University budget.  The result was no increase in
the amount of state appropriations for operations to the University in
1990-91 over the prior year.  This leveling of state funding, while
the Consumer Price Index continues to increase, has resulted in an
increase in the percentage of University costs borne by students and
in a reduction in staffing and other University costs.
     The state has been able to provide continued support for the
University with capital appropriations for two major building projects
now under way--the Lammot du Pont Laboratory for chemistry and
biochemistry and the Bob Carpenter Sports/Convocation Center.  These
projects are funded by a combination of state appropriations and
private funds from contributions to the University.  The state portion
of the laboratory is to be $17 million, with $4 million appropriated
in 1990-91, bringing the total to date to $7 million.  The state
portion of the Bob Carpenter Center is to be $12 million, with $3
million appropriated in 1990-91, bringing the total to $7 million.

Contracts and Grants
     Contracts and Grants Revenues increased from $31.7 million in
1989-90 to $36.2 million in 1990-91.

                                (All Dollars in Millions)     Percent
                                 1989-90         1990-91      Increase

     Federal Government            $21.8           $24.9        14.2%
     State Government                5.8             5.9         1.7
     Private                         4.1             5.4        31.7
                                  -------         -------      -------
     Total                         $31.7           $36.2        14.2%

     Revenues from Contracts and Grants support research, public
service and training, as well as financial aid for students.  Of the
Contracts and Grants Revenues, $23.3 million was received specifically
for the support of basic and applied research efforts of the
University faculty.  The University's ability to garner support for
research is a reflection of the growing recognition of the quality of
research conducted at the institution.  Such research helps the
University attract excellent faculty and students and helps the growth
of regional business.  It also can lead to additional gifts for its
academic programs.

     As financial pressures continue on the University's operations,
gifts play an increasingly important role in maintaining and enhancing
the academic quality of the University.  Increases in private giving
to the University of Delaware have been no exception, as gifts for
operating purposes increased from 2.6 percent ($7.5 million) in
1989-90 to 3.2 percent ($10.1 million) of the 1990-91 Current Funds
Revenues.  Gifts for capital purposes also increased in a significant
way with $3.1 million contributed for the endowment and $3.6 million
for major capital projects. Total 1990-91 Gifts in excess of $16.9
million, represents a 36.4 percent increase in private support over
the prior fiscal year.  The University is pleased with the response to
its needs from alumni, friends and the business community.

     The market value of University Investments continues to be at an
all-time high:

                                          (All Dollars in Millions)
                                      Endowments     Other     Combined
     June 30, 1991
          University                     $356.2     $110.3       $466.5
          Funds Held in Trust              36.7         -          36.7
                                        --------   -------      --------
          Total                          $392.9     $110.3       $503.2

     June 30, 1990
          University                     $326.3     $112.3       $438.6
          Funds Held in Trust              35.4         -          35.4
                                        --------   --------     --------
          Total                          $361.7     $112.3       $474.0

     The University's Endowments achieved an annual total return of
12.1 percent during 1990-91 and this was somewhat less than the 14.4
percent average annual total return earned during the decade of the
1980s.  The total return for 1990-91 on equity holdings was 13.7
percent compared to the Standard and Poor's 500 index of 7.4 percent
for the same period.  Approximately 54 percent of the Endowments was
invested in equities as of June 30, 1991.  An infusion of $12.1
million of gifts and reinvested income combined with the investment
performance to achieve significant growth in the market value of the
University's Endowments.
     Income (yield) from short-term investment of operating funds
(referred to as Other in this section) has been declining as a result
of lower interest rates in a recessing economy.  The chart below
illustrates that combined investment income available to support
operations has been relatively flat.  This trend is expected to
continue through the 1991-92 year, putting additional pressure on
University operations.

          (All Dollars in Millions)
                Endowments     Other       Combined

     1990-91     $ 22.4       $  9.4        $ 31.8
     1989-90       22.0          9.7          31.7

Fund Balances
     The Statement of Changes in Funds Balances as shown in the
Financial Statements that follow, report the overall increase or
decrease in University Fund Balances, and provide some details of the
additions and deductions impacting these changes.  Total Fund Balances
increased by $19.7 million during 1990-91, primarily because of
increases of Endowments (at book value $15.7 million) and Plant Funds
($8.7 million).  Current Funds (i.e., those funds that support the
operations of the University) decreased by $3.4 million as explained
     Endowments were discussed in the previous section.  Plant Funds
represents those funds set aside or restricted for new buildings,
renovations of existing buildings and the replacement of equipment, as
well as the value of the University's land, buildings and equipment.
The increase in Plant Funds is primarily due to funding for the
chemistry and Carpenter Center facilities.
     The decline in Current Funds Balances is the result of spending
resources accumulated in prior years, and not replenishing these funds
from operations during 1990-91.

     The University of Delaware continues in stable financial
condition, but pressures on operating expenditures of the University
are increasing.  Salary increases and escalating costs of health care,
library materials and state-of-the-art equipment needed for
instruction have required the University to make some difficult budget
decisions, including reductions of almost 200 positions over the past
two years.  The University has set its priorities as appropriate
compensation for faculty and staff, additional scholarship support for
students and appropriate additions and renovations to the physical
plant and equipment.  The difficult budget decisions referenced above
have enabled the University of Delaware to make gains relative to peer
institutions in all of these priority areas.