Amherst College ANNUAL REPORT Fiscal Year Ended June 30, 2006 ▲ Table of Contents The Corporation . 2 A Message from the President . 4 Report of the Treasurer . 6 Amherst College Statement of Operating Resources and Expenses . 8 Folger Shakespeare Memorial Library Statement of Operating Resources and Expenses . 10 Amherst College Twenty Years in Review . 12 Report of Independent Accountants . 13 Balance Sheet . 14 Statement of Activities . 15 Statement of Cash Flows . 16 Notes to Financial Statements . 18 Amherst College Gifts, Bequests and Grants Received . 32 Folger Shakespeare Memorial Library Gifts, Bequests and Grants Received . 32 The Trustees of Amherst College administer Amherst College in Amherst College Amherst, Massachusetts, and the Descriptive Analysis of Endowment and Other Similar Funds . 33 Folger Shakespeare Memorial Library in Washington, D.C. Folger Shakespeare Memorial Library Descriptive Analysis of Endowment and Other Similar Funds . 50 Amherst College Statistical Information 2005–06 . 52 The cover: Visitors to the new Earth Sciences and Museum of Natural History Build- ing are greeted by the skeletons of several extinct mammals, including a mammoth (foreground), a mastodon (background) and an Irish elk (back cover). The Earth Sciences Building opened for classes in January 2006; the Museum of Natural History has hosted more than 10,000 visitors since opening in May 2006. Karen Hastie Williams, J.D. Paul E. Bragdon, LL.B. The Corporation Washington, DC Portland, OR FISCAL YEAR 2005–06 Secretary of the Corporation George L. Cadigan, A.B. 2 Susan Pikor, A.B. Topsham, ME Hadley, MA Robert W. Carington, M.Arch. Bloomfield Hills, MI Life Trustees Chairman of the Corporation K. Frank Austen, M.D. Philip H. Coombs, A.B. Jide J. Zeitlin, M.B.A. Wellesley Hills, MA Chester, CT 3 New York, NY George B. Beitzel, M.B.A.* William A. Davis, Jr., J.D. President of the College Chappaqua, NY Washington, DC Anthony W. Marx, Ph.D. Martha L. Byorum, M.B.A. Michele Y. Deitch, J.D. Amherst, MA New York, NY Austin, TX Theodore L. Cross, J.D. Charles C. Eldredge, Ph.D. Members of the Corporation Princeton, NJ Lawrence, KS Danielle S. Allen, Ph.D. Chicago, IL1 Rosanne M. Haggerty, A.B. Willie J. Epps, Jr., J.D. New York, NY Kansas City, MO Alan S. Bernstein, M.B.A. Coral Gables, FL Amos B. Hostetter, Jr., M.B.A.* John C. Esty, Jr., M.A. Boston, MA Concord, MA Katherine K. Chia, M.Arch. New York, NY Charles A. Lewis, M.B.A. Nicholas M. Evans, M.B.A. Evanston, IL Vero Beach, FL Brian J. Conway, M.B.A. Boston, MA Charles R. Longsworth, M.B.A.* Richard (Dick) F. Hubert, A.B. Royalston, MA Rye Brook, NY Colin S. Diver, LL.B. Portland, OR Robert J. McKean, Jr., LL.B. George R. Johnson, Jr., J.D. Reston, VA Washington, DC Anne Melissa Dowling, M.B.A. Enfield, CT Mary Patterson McPherson, Ph.D. Woodward Kingman, M.B.A. Rosemont, PA Belvedere, CA William E. Ford, M.B.A. New York, NY Peter A. Nadosy, M.B.A. David L. Kirp, LL.B. New York, NY San Francisco, CA Steven M. Gluckstern, Ed.D. New York, NY Edward N. Ney, A.B. Samuel F. Kitchell, A.B. New York, NY Scottsdale, AZ Frederick E. Hoxie, Ph.D. Evanston, IL Edward E. Phillips, LL.B. Thai-Hi T. Lee, M.B.A. Weston, MA Somerset, NJ David A. Kessler, M.D. San Francisco, CA H. Axel Schupf, M.B.A. Van Doorn Ooms, Ph.D. New York, NY Bethesda, MD Jonathan I. Landman, M.S. New York, NY George L. Shinn, Ph.D.* Stephen B. Oresman, M.B.A. Scarborough, ME Darien, CT Richard S. LeFrak, J.D. New York, NY John I. Williams, Jr., J.D. George E. Peterson, Ph.D. Jamaica Plain, MA Washington, DC Cullen Murphy, A.B. Medfield, MA Philip S. Winterer, LL.B. Mark J. Sandler, LL.B. New York, NY New York, NY Hope Eighmy Pascucci, A.B. Needham, MA Talcott W. Seelye, A.B. Trustees Emeriti Bethesda, MD 4 Paula K. Rauch, M.D. John E. Abele, A.B. Boston, MA Natick, MA W. Lloyd Snyder III, M.B.A. Philadelphia, PA Joseph E. Stiglitz, Ph.D. Kenneth H. Bacon, M.B.A. New York, NY Washington, DC 1 Effective March 4, 2006 Scott F. Turow, J.D. Margaret A. Bangser, M.P.P.M. 2 Deceased December 2005 Chicago, IL Dar es Salaam, Tanzania 3 Deceased February 2006 Diana Chapman Walsh, Ph.D. 4 Deceased June 2006 Wellesley, MA * Chair Emeritus 2 ▲ Joan E. Spero, Ph.D. Advancement Committee Treasurer’s Staff New York, NY Messrs. Conway (Chair), Bernstein, Peter J. Shea, M.S.B.A. Ms. Chia, Mr. Diver, Ms. Dowling, Treasurer Richard R. Spies, Ph.D. Messrs. Ford, Gluckstern, Kessler, Providence, RI Dawn M. Bates, B.B.A. Landman, LeFrak, Murphy, Ms. Pascucci Investment Analyst Bradley A. Stirn, M.B.A. Woodside, CA Audit Committee Laurie M. Bouchard, B.S. Ms. Dowling (Chair), Messrs. Bernstein, Assistant Comptroller Louis B. Thalheimer, J.D. Hoxie, Ms. Rauch, Mr. Stiglitz Baltimore, MD James D. Brassord, M.B.A., M.S. Director, Facilities Planning and Jane D. Weinberger, B.S. Budget and Finance Committee Management Washington, DC Messrs. Gluckstern (Chair), Bernstein, Conway, Ms. Dowling, Messrs. Ford, Kathryn V. Bryne, M.B.A. Gail T. Wickes, Ph.D. Kessler, LeFrak, Ms. Pascucci, Director of Human Resources Dallas, TX Mr. Stiglitz, Ms. Williams Mauricia A. Geissler, B.B.A. W. Willard Wirtz, LL.B. Director of Investments Washington, DC Buildings and Grounds Committee Ms. Chia (Chair), Messrs. Diver, Ford, Shannon D. Gurek, M.B.A. David S. Wolff, M.B.A. Gluckstern, Kessler, Landman, LeFrak, Associate Treasurer/Director Houston, TX Murphy, Ms. Pascucci, Mr. Turow, of the Budget Kimba M. Wood, J.D. Mss. Walsh, Williams Mark Healy, B.A. New York, NY Director of Rental Property Honorary Degrees Committee Robert L. Woodbury, Ph.D. Mr. Diver (Chair), Ms. Chia, Stephen M. Nigro, B.S. Harpswell, ME Messrs. Ford, Hoxie, Kessler, Comptroller Landman, Murphy, Ms. Pascucci, Barbara A. St. Onge Messrs. Stiglitz, Turow Manager, Office of Administrative Services/Mailing Center Human Resources Committee Mr. Hoxie (Chair), Ms. Rauch, Messrs. Charles G. Thompson, A.O.S. Stiglitz, Turow, Mss. Walsh, Williams Director of Dining Services William McC. Vickery, M.B.A. Instruction Committee Assistant Treasurer/Associate Ms. Walsh (Chair), Messrs. Conway, Director of Alumni Programs Diver, Ms. Dowling, Messrs. Hoxie, Kessler, Landman, Murphy, Ms. Rauch, Treasurer Emeritus Messrs. Stiglitz, Turow Kurt M. Hertzfeld, M.B.A. Investment Committee Mr. Ford (Chair), Ms. Dowling, Messrs. Hostetter, Nadosy, Zeitlin Student Life Committee Mr. Turow (Chair), Ms. Chia, Messrs. Diver, Hoxie, Landman, Murphy, Mss. Rauch, Walsh Trusteeship Committee Messrs. Zeitlin (Chair), Diver, Gluckstern, Kessler, Mss. Walsh, Williams 3 ▲ The 2005–06 fiscal year was a critical tively determined, college-wide inter- moment in the life of the College, as it ests, as well as departmental needs. brought new clarity to the way that we This represents an important change will connect Amherst’s historical mis- in how we shape the future Amherst sion with its ambitions for the future. faculty and the cohesiveness of our In January 2006—after more than curriculum, a change that will help a year of discussion among faculty, stu- sustain Amherst’s excellence for dents, staff and alumni—the Commit- generations to come. tee on Academic Priorities (CAP) As we think about the curriculum, A Message issued its report to the community, we must think, too, about how it laying a path for ongoing discussions connects with our students’ experi- from the that will shape Amherst for genera- ences outside the classroom—both tions to come. The CAP Report in- at Amherst and after graduation. This President cludes 22 recommendations that are past year the College received a signifi- aimed to ensure that Amherst remains cant philanthropic investment that will the nation’s leading liberal arts college allow us to make these connections five, 10 and 30 years from now. Build- more broadly and more intentionally: ing on the College’s historic commit- With a seven-year, $13-million grant ments to academic excellence, civic from John Abele ’59 and the Argosy engagement and broad, equitable Foundation, we have established the access for the brightest students, the Center for Community Engagement, CAP’s recommendations focus on which will draw hundreds of Amherst revitalizing the Amherst curriculum, students into community service connecting our students’ academic ex- through linked curricular and co- periences with the world beyond the curricular programs. By expanding classroom, and ensuring our ability to opportunities for students to gain find the best students from across the hands-on experience tackling some country and around the world. of the pressing problems our society At its May Commencement meet- faces, we will continue to demonstrate ing, in an overwhelming vote, the fac- that what we teach at Amherst is con- ulty endorsed the priorities and goals nected to the world in a very tangible of the CAP Report as a strategy for way. moving forward. The trustees are now Another key area addressed by the discussing these recommendations, CAP Report is that of selection of the and appropriate faculty committees student body. One of the College’s will take up detailed planning over the founding principles—and a belief that coming months. With the other mem- has remained central to Amherst over bers of the CAP, I am heartened and the ensuing centuries—is our commit- gratified by the support that our work ment to providing the finest education has received in the past year, and en- in the land, while bringing together thusiastic about the way in which these the very best students to participate in continuing conversations will enhance that education.