UA-R-GC-1914-01-01-1977-02-15_Page-003

I -3- there would be a more substantial shortage of dollars, that wages needed to be increased largely due to inflation, and that the housing situation was serious and becoming critical. He noted that these factors still obtain. The current budget is on target, Mr. Bickford said. He made the following points. - AID New Egyptian pound funds for the endowment have been shut off until poin~raised in the AID audit of the Fund have been cleared up . There is no problem in dollars in this regard as the University was funded for one year' in advance and had thus already received its dollars for this year when the audit took place. - Management Extension Services Based on Dr. Stevens l projections, it appears that MES will generate a substantial dollar surplus, and that in so doing it will produce a comparatively small Egyptian pound deficit. New York Office Expendituresare exceeding the budget due principally to the greatly increased workload brought pn by the AID audit of the Fund and other matters. Mr. Bickford noted that the withdrawals from the LE endowment to meet the University's oper~ting deficit were made with the approval of AID and that the Trustees have no obligations to themselves replace those funds, and that AlDis expectation is that the endowment can be replenished by funds provided by it. Mr. Bickford noted the difficulty of making meaningful comparisons between the Arthur Andersen audit report and the University's budget due to differences in format. He has asked Arthur Andersen to reconcile the two