CERTIFIED FINANCIAL STATEMENTS

aa at D e c e m b e r 3x~ x937.

April I9, I938.

To the Board of Managers of The Franklin Insti tute,

Philadelphia.

W e have made an examination of the balance sheet of THE FRANKLIN INSTITUTE as at December 3I, I937, and of the s ta tements of income and expenses and general fund for the fifteen months ended tha t date. In connection there- with, we examined or tested accounting records of the Insti- tu te and other support ing evidence, and obtained information and explanations from officers and employees of the Inst i tu te ; we also made a general review of the accounting methods, of the income accounts as recorded, and of the operating and fund accounts for the period, but we did not make a detailed audi t of the transactions. The buildings and equipment and investments are stated at cost o r appraised values at dates of acquisition, and do not purpor t to represent present day values.

Subject to the foregoing, the annexed financial s tatements , in our opinion, fairly present, in accordance with accepted principles of accounting consistently maintained by the Insti- tu te during the period under review, the financial position of The Franklin Inst i tute at December 31, I937, and the results of its operations for the fifteen months ended tha t date, after excluding the accounts of The Bartol Research Foundat ion of The Franklin Inst i tute on which separat e reports were sub- mi t ted for the year ended September 3o, I937, and of The Biochemical Research Foundat ion of The Franklin Inst i tute, on which separate reports were submit ted for the year ended August 3I, I937.

(Signed) LYBRAND, ROSS BROS. & MONTCOMERY.

753

754 T H E F R A N K L I N I N S T I T U T E . [J. F. I.

T H E F R A N K L I N I N S T I T U T E .

BALANCE SHEET, DECEMBER 3 I, I937.

A s s e t s .

Cash in banks and on hand (not including cash in e n d o w m e n t t r u s t

funds ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,67o.3i Accoun t s receivable for membersh ips , subscr ip t ions , etc . . . . . . . . . . 12,774.62 Mate r i a l s and supplies , a t cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 , i99.32 Bui ld ings and equ ipmen t , a t cost, no t inc luding exhibi ts loaned and

dona ted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,039,236.97 Deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,195.55

E n d o w m e n t fund i nve s t men t s , cash, etc.: I n v e s t m e n t s , a t cos t or appra i sed va lues a t the

da t e s of acquis i t ion . . . . . . . . . . . . . . . . . . . $2,371,144.o2 Deposi t in closed bank, less reserve . . . . . . . . . 85,000.00

Cash : U n i n v e s t e d principal . . . . . . . . . . . . . . . , . . 8,772.14 U n e x p e n d e d income . . . . . . . . . . . . . . . . . . . 7,336.4 t

$4,Ioo,o76.77

2,472,252.57

$6,572,329.34

L i a b i l i t i e s .

Accoun t s payab le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $I9,936.64 A m o u n t s received for life m e m b e r s h i p s no t t r ans fe r red to Genera l

E n d o w m e n t F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00 Deferred income f rom dues, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 I,o95.95 Con t r ibu t ed funds used for buildings, equ ipmen t , etc., as a n n e x e d . . 3,902,492.98

S tock o u t s t a n d i n g : Fi rs t c lass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,94o.oo Second class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.00

I3)OLO.OO General F u n d account , as annexed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,o41.2o

E n d o w m e n t funds : Principal , a s annexed . . . . . . . . . . . . . . . . . . . . . 2,464,916.I6 Unexpended income . . . . . . . . . . . . . . . . . . . . . . . 7,336.41

2,472,252.57

$6,572,329.34

June, 1938. ] CERTIFIED FINANCIAL STATEMENTS. 7 5 5

GENERAL FUND ACCOUNT

for the fifteen months ended December 31 , 1937 .

Balance, October I, 1936 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $169,783.49 Add:

Amount withdrawn from Museum Reserve Fund Principal for capital and operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,000.00

First Class Stock surrendered and cancelled. . IOO.OO Equipment previously charged to expense, re-

stored to books as an asset (air s h o w ) . . . 15o.oo

53,25o.oo

$223,033.49 Deduct:

Difference between book value and net amount received for premises Nos. 13-15-17 South Seventh Street, Philadelphia, Pa . . . . . . . . $32,871.7o

Deficit for the period, as annexed . . . . . . . . . . . 67,12o.59

99,992.29

Balance, December 31, 1937 . . . . . . . . . . . . . . . . . . . . . . . $I23,o41.2o

INCOME AND EXPENSE ACCOUNT

for the fifteen months ended December 3I, 1937.

Income.

Dues, initiation fees, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,649.48 Less clues uncollected, prior years . . . . . . . . . . . . . . . . . . . . . . . . . . 750.5 °

25,898.98 Admissions to museum and planetarium, sale of guide books, etc . . . . 94,529.39 Subscriptions to publications and advertising . . . . . . . . . . . . . . . . . . . . 8,999.39 Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,71o.53 Administrative charges for services rendered The Bartol Research

Foundation and The Biochemical Research Foundation . . . . . . . 13,5oo.ol Miscellaneous income, net of expenses incident thereto . . . . . . . . . . . 2,372.35

164,OLO.65 Income from trust fund investments, etc . . . . . . . . . . . . . . . . . . . . . . . . 143,85o.51

$3o7,861.16

756 T H E F R A N K L I N I N S T I T U T E . [J. F. I.

Expenses. Salaries and

Wages. Building operat ion and maintenance . . . . $45,674.Ol Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . i7,695.53 Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . - - Office and general . . . . . . . . . . . . . . . . . . . 59,o7o.o4 Machine shop . . . . . . . . . . . . . . . . . . . . . . . 757.55 Museum . . . . . . . . . . . . . . . . . . . . . . . . . . . . I I 1,615.37

Other. $36,IOO. I3

6,792.90 2,893.3I

I7,O24.IO

457.I6 47,731.72

Publications . . . . . . . . . . . . . . . . . . . . . . . . Science and the Arts . . . . . . . . . . . . . . . . . Traveling expense . . . . . . . . . . . . . . . . . . . Annuit ies . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest and discount . . . . . . . . . . . . . . . . Membership badges and certificates . . . .

- - i6,432.m 4,454.I6 46t.9 I

- - 1,4o3.19 3,906.27

- - 2,442.39 - - 70.00

$243,I72.93 $131,8o8.82

$374,98L75

Deficit for the fifteen months ended Dec. 3I, I937 . . . . . . . $ 67,I2o.59

SUMMARY OF CHANGES IN ENDOWMENT FUNDS

for the fifteen months ended December 3I, ]937.

Balances October I, I936 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,573,998.44 Add :

Profit on sale or call of investments . . . . . . . . $64J23.95" Amounts received for life memberships . . . . . 1,2oo.oo New gift and bequest . . . . . . . . . . . . . . . . . . . . 2o,ooo.oo Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.36

Deduct: Losses on sale of inves tments . . . . . . . . . . . . . 54,226.85 Amount wi thdrawn from the Museum Re-

serve Fund for capital and operat ing expenditures, credited to General Fund Account . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,ooo.oo

Amount received as a distr ibution from prin- cipal of the John G. Meigs Bequest, credited to John G. Meigs Memorial Fund (income account) . . . . . . . . . . . . . . I 1,2o2.74

Repayment of loan from Benjamin Franklin Memorial, Ine . . . . . . . . . . . . . . . . . . . . . . . 76,ooo.oo

85,347.31

$2,659,345.75

194,429.59

Balances December 31, 1937 . . . . . . . . . . . . . . . . . $2,464,916.16

* Includes $I,913.8I profit on t ransfer of General Endowment Fund invest- ments at market value, to Museum Reserve Fund investments .

June, I938. ] CERTIFIED F I N A N C I A L STATEMENTS. 757

CONTRIBUTED FUNDS RECEIVED FROM BENJAMIN FRANKLIN MEMORIAL, INC.,

for the fifteen months ended December 31 , 1937 .

Balance October I, 1936 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,818,494.56 Add:

Pledges collected . . . . . . . . . . . . . . . . . . . . . . . . $ 7,998.42 Loan repaid by The Franklin Institute . . . . . 76,ooo.oo

83,998.42

Balance December 31, 1937 . . . . . . . . . . . . . . . . . . $3,902,492.98

THE BARTOL RESEARCH FOUNDATION OF THE FRANKLIN INSTITUTE.

CERTIFIED FINANCIAL STATEMENTS

as at September 3o, x937.

December 22, 1937. To the Board of Directors of

T h e Franklin Inst i tute, Philadelphia.

We have made an examination of the balance sheet of T H E BARTOL R E S E A R C H F O U N D A T I O N OF T H E F R A N K L I N

INSTITUTE as at September 30, I937, and of the s ta tement of income and expenses for the year ended tha t date. In con- nection therewith, we examined or tested accounting records of the Foundat ion and other support ing evidence and obtained information and explanations from officers and employees of The Franklin Inst i tu te ; we also made a general review of the operating and fund accounts for the period, but we did not make a detailed audi t of the transactions. The building, which is located on the proper ty of Swarthmore College, and the equipment are s tated at cost and the investments at cost or appraisal values at dates of acquisition and do not purpor t to represent present day values. The cost of books and sci- entific l i terature is charged to expense.

Subject to the foregoing, the accompanying balance sheet and related s ta tement of income and expenses, in our opinion fairly present, in accordance with accepted principles of ac-