UNIVERSITY FINANCES

Evening Star, Issue 18253, 18 April 1923, Page 2

UNIVERSITY FINANCES

TREASURER’S ANNUAL REPORT,

DEBIT CONVERTED TO CREDIT,

A"'comprehensive report on the state of the University’s finances was submitted to the University Council yesterday by tho treasurer (Mr‘L. D. Ritchie). The report was as follows; —■

Members may remember that in last year’s balance-sheet the indebtedness of the University (excluding the debenture issue of £7,000) was £1,870 7s, whilst this year there is a credit of £9O 11s 3d. Capital has increased by nearly £B,OOO, principally owing to the gifts of Messrs Pels and De Beer of £6,000 and £I,OOO respectively towards the ethnology building fund. Turning to the other side of the balance-sheet, the capital funds are practicallv ail invested.

The item among the assets which has given, and is still giving, most concern is the rent from Ticnmore runs. The remission of rents to ail Benrnoro tenants authorised by the council has been written off. The whole position in regard to this matter is still eminently unsatisfactory, though it is pleasing to note that during tho" past season tho price of avool has been’ on a par with, if not higher than, the price when these runs Avcro taken up by the tenants. Herewith T append figures showing the balances of tho accounts of the various schools for the last three years. Arts_and general is not included in this, as it is practically tho general account of the University: — "A —Debit Balances.— Mining School—l92o. £1,296 19s 3d; 1921, £1,374 0s lOd; 1922, £1,593 3s 2d. Dental School—l92o, £1,873 15s 6d; 1921, £1,197 13s lid ; 1922, £950 11s lid. Medical School—l92o, £3,556 8s 9d; 1921, £1,020 9s 9d. Museum—l92o, £541 8s lid; 1921, £337 7s lOd; 1922, £133 4s 3d. —Credit Balances.— Homo Science —1920, £1,164 6o 3d ; 1921, £2,657 14s 4d; 1922, £2,289 9s 7d. Medical—l 922, £1,121 8s Bd. MINING SCHOOL. Tho debit of tho Mining School account is approximately the same as last year. This is natural, as owing to tho fact thaL mining in New Zealand appears to bo a decaying industry few students are coming forward, while the teaching staff cannot be reduced if the teaching is to remain efficient. As one who has taken some interest in the mining industry, 1 cannot help feeling that tho Government should do more towards its assistance, tho opinion having been expressed that there are many undiscovered and payable reefs in this country. A larger grant should certainly bo made by the State to this school, it having been established in the first instance at the request of the then Government. - DENTAL SCHOOL. It is gratifying to note that expenditure on material has decreased, Avlule tho income from students’ and patients’ fees shows a considerable increase, these facts helping to account for the decreased debit on tho year’s workings. The present deplorable condition of overcrowding and .lack of accommodation will bo somcAvhat relieved as tho result of a tardy grant that has 'been made for the erection of temporary extensions, but in considering expenditure on other departments tho council should bear in mind it may I\avc to moot the urgent requirements'of this progressive school. MEDICAL SCHOOL. For the first lime in my experience at least tho year’s workings of this important school show a credit, the amount being £566 14s 2d. Tho credit shown in_ the accounts is somewhat misleading, as in it is included tho balance of the special accounts which aro noAV merged in the school account.

In analysing this account it will bo noticed that students’ fees have increased by £I,OOO. This revenue cannot be counted on to continue indefinitely, as the last two years have shown a pronounced decrease in the number of entrants. On the other hand, fees paid nut to professors and lecturers in this school have increased by over £4OO, the total outgoings under this head amounting to £3,486 7s 4d. The principle involved in this is at present under re,view by the council, and is one which docs not obtain to any extent in the other faculties. Equipment has cost a little less than last year, and material shows a saving of some £4OO. I am informed that before tho bacteriological and pathological departments were instituted it was anticipated that the revenue they would earn would be of considerable assistance. It may be noted that the receipts of the two departments for this year amounted to £546 3s Bd—an increase of some £25 over last year.

I suggested in my last report that the grant provided by the hospital to the departments in question, was insufficient for the work clone, but regret to say that both the Hospital Board and tho Department of Health nave refused, in the meantime at least, to increase their payments. Those responsible for tho excellent showing for the year in this important school should remember that any extensive building programme must necessarily involve a largo increased annual expenditure of one sort and another. MUSEUM. The improved condition of this account is owing to donations and Government subsidy thereto, the donations in question being from the Dunedin City Council and from the Chinese residents. Tho thanks of tho council are due to these donors. If the City Council grant is a recurring one, it is possible that next year’s accounts may balance, as in the accounts under review new works total just on £3OO. HOME SCIENCE. This account shows a debit of £348 4s 9d on the year’s workings, the credit of £2,657 14s 4d at the beginning of the year being reduced by that sum. it should bo noted, however, that a largo amount of capital expenditure has been paid for out of revenue. Under the circumstances the position of tho account is specially satisfactory. In my opinion the amount (£1,298) allocated to this school from the statutory grant is unduly large. In this connection it is pertinent to state that the grant allocated to the Dental School is only £647 per annum. LESS RANDOM METHODS.

In view of the growtli of the University and its activities and its inadequate finance, it would appear that loss random methods than those now prevailing should be adopted. Commencing each year without any estimate of expenditure, no information being available from which to compile one, expenditure is naturally more or less haphazard, and' is often incurred not so much on account of the comparative necessity of tho item advocated as on account, of tho vehemence and wholehearted advocacy of its sponsors.

With a view to framing estimates of expenditure, I would suggest that in the future, at the beginning of each year, the dean of every faculty be asked for an estimate for the probable necessary expenditure in his department. The council would thus bo in possession of a list embracing the approximate necessities of and desirable additions to every faculty, and if any money was available from time to time for extensions or additions a comparison could be made and the money spent in the direction most desirable, instead of possibly on the first thing mentioned by a wide-awake supporter of this, that, or the other school.

The council is in honor bound to observe two principles in its financial operations; To incur no expenditure for which it cannot pay, and to see that every penny spent is spent to the best advantage. The suggestion made above would help the council to observe these two principles. Wo are faced this year with a heavy increase in expenditure in certain direc-’ tions, andi with a possible reduction in revenue, and I would be failing in my duty if I Tailed to emphasise the absolute necessity for extreme caution in the present critical state of our finances. To those who say wo have reason to bo pleased with the result of the year’s working, I would reply that twice' within the last few years the council hasl increased the foes payable by students, and without this increase) our financial plight would

have been bad indeed. There arc obvious reasons why this type of financing cannot bo constantly indulged in, and 1 if the Government continues to turn a deaf ear to our legitimate and urgent requests for increased grants wo have no other course but to rigorously curtail expenditure, continue our requests, and live in hope. In conclusion, I wish to thank Mr Chapman for his unfailing courtesy and assistance. His interest in and his (Moris for the University are unceasing, -end should earn for him the thanks and esteem of all concerned, while various innovations he has introduced have resulted in considerable saving.