FINANCIAL STATEMENTS

as at December 31, 1939.

To the Board of Managers of The Franklin Institute,

Philadelphia.

April 19, 1940.

We have examined the balance sheet of THE FRANKLIN INSTITUTE as of December 31, 1939, and the statements of income and expenses and general fund for the year then ended, and, without making a detailed audit of the transactions, have examined or tested accounting records of the Institute and other supporting evidence.

The income as reported in the accompanying statement of income and expenses is stated from the books of account. We did not verify the income from the Museum aggregating $75601.24 as it is not susceptible of independent verification. The expenses were supported by proper vouchers. The build- ings and equipment and investments are stated at cost or appraised values at date of acquisition, and do not purport to represent present day values. We did not, at the request of the controller, mail to debtors requests for confirmation of the uncollected balances of accounts receivable as of Decem- ber 31, 1939.

Based upon the statement of income as set forth in the preceding paragraph, the stating of investments at cost or appraised values at dates of acquisition, and subject to con- firmation of accounts receivable balances by debtors, in our opinion, the accompanying financial statements present fairly the position of The Franklin Institute at December 31, 1939, and the results of its operations for the calendar year, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

LYBRAND, Ross BROS. & MONTGOMERY. 652

Map, 1940.) FINANCIAL STATEMENTS. 653

THE FRANKLIN INSTITUTE.

BALANCE SHEET, DECEMBER 31, 1939.

Assets.

Demand deposits in banks and cash on hand (not including cash in endowment trust funds).......................... $23123.83

Accounts receivable: For memberships, subscriptions, exhibits, etc. $12,742.02 Due from officers and employees. ItI72.93

Materials and supplies, at cost. 10tO47.13 Buildings and equipment, at cost, not including exhibits loaned

and donated. . 4,091,250.95

$4,138,336.86

Endowment fund investments, cash, etc.: Investments, at cost or appraised values at the

dates of acquisition. . $2,175,454.36 Deposit in closed bank, less reserve. 67T500.00 Cash :

Uninvested principal. 14T873.28 Unexpendedincome..... 5989.66

__~ 2,263,817.30

Liabilities. Accountspayable................................. $11,231.68 Deferred income from dues, donations, etc.. 31,948.00 Contributed funds used for buildings, equipment, etc., as annexed 3,930,707.51 Stock outstanding:

First class. . Second class.

$12,840.00 70.00

12,910.oo General Fund account, as annexed. 151~39.67

$4,138,336.86 Endowment funds:

Principal, as annexed $2,257,827.64 Unexpendedincome........................ 5989.66

2,263,817.30

$6,402,154.16

654 THE FRANKLIN INSTITUTE. [J. F. I.

GENERAL FUND ACCOUNT

for the year ended December 31, 1939.

Balance, January I, 1939..............,.....,....,......,.., $I48,255.o4 Add:

Amount withdrawn from the Museum Reserve Fund Principal for capital and operating expenditures. $75,600.00

Par value of IO shares first class stock surren- dered for cancellation. 100.00

75,7oo.oo

Less deficit for the year ended December 31, 1939. 72~4I.5.37

Balance, December 31, 1939. . $I5Is39.67

INCOME AND EXPENSE ACCOUNT

for the year ended December 31, 1939.

Income.

Dues (prorated portion of annual dues). fees, etc.. Less dues uncollected, prior years.

Museum income: Museum admissions. ........................ Planetarium admissions. ..................... Traveling shows, sale of guide books, etc .......

$24,152.25 348.00

$23,8o4.25

$33,524.‘0 24,762.65 17~314.49

75,6oI.24 Subscriptions to publications and advertising. Donations:

67631.75

Friends of Franklin, . . $52,893.59 Lessexpenses............................ 7t359.53

45534.06 Administrative charges for services rendered The Bartol Research

Foundation and The Biochemical Research Foundation. Miscellaneous income, net. .

10,000.00 996.03

$I62,567.33 Income from trust fund investments

and distributions from estates, etc.. 77p84I.09

Total Income (Curried Forward). $24o,408.42

May, 1940.1 FINAP\‘cI.~I, STATEMENTS.

INCOME AND EXPENSE ACCOUNT (Continued)

655

Total Income (Brought ForMard) . . $24O,408.42

Expenses.

Salaries and wages. Other.

Building operation and maintenance. $39,272.53 $32,797.97 Library............................. 14,416.oo 42948.75 Meetings...................,........ 29445.71 Office and general 543475.41 12,023.48 Machine shop 822.65 397.33 Museum.. _. _. _. _. 103,714.05 37t642.18 Publications. . I4,o36.93 Science and The Arts. 3,840.oo 2.5396 Traveling expense. . Annuities. Membership badges, certificates, etc..

- 979.44 3,125.00

96.22 __-

$219665.64 fko5v621.97

$325,287.61 Less donations received for museum

salaries and expenses. 12,463.82

3123823.79

Deficitfortheyear....... . . . .._...._.............. $72~415.37

SUMMARY OF CHANGES IN ENDOWMENT FUNDS

for the year ended December 31, 1939.

Balances, January I, 1939. Add :

Amounts received from : William M. Vermilye Estate of Arthur H. Lea..

Life membership fees. Miscellaneous.

._.......... $2,324,023.21

$ 2,650.oo 50,000.00

$52,650.00 2,500.oo

..,....... 15.77

55>165.77

Total (Curried For?stard) $2,379,188.98

656 THE FRANKLIN INSTITUTE. [J, F. I.

SUMMARY OF CHANGES IN ENDOWMENT FUNDS (Continued)

Total (Brought Forward). $2,379,188.98 Deduct:

Losses, net of profits, on disposal of investments:

Losses. . $35474.55 Profits. 2,029.23

g33v445.32 Amounts withdrawn from Funds:

From Museum Reserve Fund for capital and operating expenditures. . . .

From Boyden Premium Fund for award. ,

From Vermilye Medal Fund for cost of medal design and die.

$75,600.00

500.00

476.31 76s76.31

Amounts received as a distribution from principal of the John G. Meigs Bequest, credited to John G. Meigs Memorial Fund (income account). 117339.71

121,361.34

Balances, December 31, 1939. $2,257,827.64

CONTRIBUTED FUNDS RECEIVED FROM BENJAMIN FRANKLIN MEMORIAL, INC.,

for the year ended December 31, 1939.

Balance, January I, 1939. $3,922,550.89 Add :

Pledges collected. . . $7,731.22 Amounts received from Treasurer of Benjamin

Franklin Memorial, Inc., 425.40

8,1.56.62

Balance, December 31, 1939. $3,930,707.51