By Stephanie Vosk

Down $70 million since 2001, Northeastern University’s endowment read $430 million as of June 30, 2002, the most recent fiscal year.

“The reality is, the endowment has gone down because of the stock market,” said Senior Vice President and Provost Ahmed Abdelal in an address to the Faculty Senate Monday.

Treasurer Joseph Murphy agreed that the stock market is the only factor contributing to the endowment’s decline.

“It is virtually impossible to be in positive returns for the past two years (since the stock market drop),” Murphy said.

Northeastern received a total return of minus eight percent in 2001 and 2002. In 2000, its return was positive 33 percent.

All the university can do is hope the stock market gets better,” Murphy said. “That’s the biggest thing right now.”

The university divides its annual endowment into two pieces.

The first piece, generally one third of the endowment, is considered permanently restricted. It is made up of gifts for scholarships, professorships and chairs.

The second piece, known as the quasi-endowment which makes up the other two-thirds, supports the university operating budget. No new money has been deposited into the quasi-endowment since the early 90s.

“During the 90s, we did not have any surpluses,” Murphy said. “They tend to get used up.”

“The surpluses are used mainly for building repairs and maintenance. The remaining money is invested to try to earn more money that will the support either the scholarships or the operating budget,” Murphy said. “I think the important thing is it is not just sitting there.”

Murphy said that schools with larger endowments are sometimes considered better because they have more resources.

“They have a larger endowment, they can go out and hire the top faculty, have more programs,” Murphy said.

Northeastern’s Institutional Advancement office works to persuade alumni and others to donate money to the university, which Murphy believes is important.

“[The money] provides a cushion in case we have bad times,” he said. “The institution wants to be here forever.”