OTAGO UNIVERSITY FINANCE

Evening Star, Issue 17925, 22 March 1922, Page 8

OTAGO UNIVERSITY FINANCE

STATEMENT BY THE TREASURER.

At the meeting of the Otago University Council yesterday afternoon the treasurer, Mr L. Deans Ritchie, made some interesting comments on the annual statement of accounts. From his remarks we extract the following: Tho results of tho year’s workings are fairly satisfactory, considering the difficult times through ■ which wo have passed. These results, however, have only been obtained by dint of rigid- economy, and it will be urgently necessary that the same procedure be adopted in the future. As to the balance-sheet, the capital funds have increased by £3,085 Is 7d, being subsidy on the ethnology_ gift and certain amounts- carried to capital. The Homo Science School credit is introduced into this account because up to tho present tho accounts of this school have been kept separately from tho arts and general. It is, in my opinion, desirable for the council to consider whether the reasons that prompted this couree will still hold good. The capital funds are practically all invested. Amounts falling due have been invested at tho ruling rate, which should moan some increase in tho revenue of the council from these sources. Tho item which must give the council most concern is that of the rents from tho Otago reserves—a n amount of nearly £4,000 is shown as an asset, but has not yet been received. Members of the council will bo aware that Hie Land Board, which administers these reserves, has postponedpayment of tho rents. The council has in tho meantime -applied to the Government for an advance, as provided in the Finance Act, 1921-22. _ This, of course, involves payment of interest, and tho position in regard to these reserves is far from satisfactory.

Assuming that the Homo Science School figures were treated with tho other accounts, it will bo rioted that the arts and general -account would close with a credit balance of £767 7s 4d, instead of a debit balance of £1,870 7s,

The item of £7,000 debentures has not been introduced' into the accounts, as I am given to understand that the capital it represents was used for tho. building of the physiology department, andi as no property (land or building) is brought into the accounts, it is not possible to introduce the corresponding debit. Arts and General Account.—Tho outgoings for salaries show an increase of over £2,000, and for equipment of about £1,300. It has to be remembered that the credit “ Otago reserves” includes tho unpaid rents previously referred to. Tho balance to the debit of the balance-sheet and the arts and general account is £1,870 7s, against £4,196 9s 7d last year, this being duo to the great increase in students’ fees, resulting from tho larger attendance of students —an increase which I am afraid may not bo maintained. Tho arts and general account has received much relief this year, owing to the fact that the debit to the other schools is greatly reduced, the debit for this year being nearly £4,C00, whilst last year it was over £7,000. The improvement in the Medical School is no doubt due to the fact that tho greatly increased classes are now extending throughout the whole course. It must bo emphasised, however, that the number of entrants this year is muck reduced, and in duo course this will have a reverse effect upon the -'finances. In my opinion the council should look into the matter as to whether the grants from tho Hospital Board for bacteriology and pathology are sufficient remuneration for services rendered, and on a par with payments made in other hospital districts. _

Dental School. —Whilst there is an increase in the material used, it is very pleasing to notice that the patients’ fees have more than doubled. The Hospital Board baa been approached for a_ larger grant, and has promised to consider it whm framing the next estimates. Home Science School.—This account shows a very considerable credit of £2,637 14s 4d—an advance of £1,473 8s Id for the year. 'lbis advance bag been made notwithstanding heavy increases in salaries owing to new and important developments in the work. It will be noticed that the allowance made to the school out of the statutory grant is £1,555, this including £555 allotted from the increased statutory grant to the University of £5,000. In view of the buoyant position of this school it seems open to question whether this more or less automatic increase should not bo reconsidered. It must he borne in mind that although the account shows euch a satisfactory credit, there are very heavy commitments, and further heavy capital expenditure for laundry, etc., is regarded as urgent by the professors concerned'.

Studholme House.—This account, notwithstanding considerable capital expenditure, shows a substantial credit, indicative of -capable management, assisted by the fact that there are no outgoings in the shape of rent, and that part of the duties pertaining to the hostel are performed by tho students as part of their training in housewifely. Beverly Trust Account. —Tho state of this account has enabled us to debit it with tho salary of the assistant to the professor of physics for the ’ last two years, in furtherance of tho wish of tho late Mr Beverly, and in terms of tho resolution of the council.

I must emphasise the need for caution during tho present year. Reduced Government grants, reduced or postponed rents, and a possible reduction in the amount collected for students’ fees, together with unavoidable increased expenditure in certain directions, necessitates extreme care; and in the many calls for expenditure tho council must endeavor to distinguish between thee® that are really necessary for the efficient carrying on of the present activities of the University and those that can be left over. The affairs of the University of Otago, which has receipts amounting to some £50,000 per_ annum, demands close and careful attention from the members of the council, so that tho students may obtain the best that tho funds at our disposal can provide; and notwithstanding the loyal service of members of the council I am forced to _ the conclusion that if the registrar was given further- assistance and the scope of his duties widened, ) the University would benefit both financially and in general efficiency. Whether such a scheme would appeal to the registrar I am unable to eay, as, naturally, I have not discussed it with him.

I desire to place on record my appreciation of the obliging and capable way in which the registrar and all th© members of Ws stafi, notwithstanding the many calls upon their time, have always attended to any requests of mine. _ Mr Ritchie, in submitting this report, moved that it fco referred to the Finance Committee. It was only as the result of strict economies that they had come through the year as successfully as they had. Their chief trouble had been tho non-payment of rents for reserves. They might obtain a loan from the Government, hut if so there would be interest to pay where there had been no outgoing before. Ha referred to the sound and flourishing condition of the Dental School and the Home Science School, and stated, that there bad been a big decrease in the numbor entering on the medical course this year. The report strongly emphasised' the ■need for caution, and for seeing that sound value was obtained for every part of their expenditure. Dr Ferguson seconded tho motion, and congratulated Mr Ritchie on his very able and' lucid survey of the year's work. It was somewhat unusual for a treasurer to lake anything but a financial view of the situation. Tbs motion was carried.