UNIVERSITY FINANCE

Otago Daily Times, Issue 18510, 22 March 1922, Page 8

UNIVERSITY FINANCE

ANNUAL STATEMENT. REVIEW BY THE TREASURER. In presenting the annual statement of accounts to the Otago University Council yesterday, the chairman of the Finance Committee, Mr L. D. Ritchie, submitted some interesting comments. His report contained the following clauses: ■“ln the first place the results of the year’s workings are fairly satisfactory considering the difficult times through which we 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. It will be noted that the capital funds have increased by £3085 Is 7d, being subsidy on the Ethnology gift and certain amounts carried to capital. The last item among the liabilities —viz.. Home Science School credit, is introduced into this account because up to the present the accounts of this school have been kept separately from the arts and general. It is, in my opinion, desirable for the council to consider whether the reasons that prompted this course will still hold good. Looking to the other side of the balance sheet it will be noted that the capital funds are practically all invested. Amounts falling due have been invested at the ruling rate, which should mean some increase in the revenue of the council from these sources. The item which must give the council most concern is that of the rents from the Otago reserves: an amount of nearly £4OOO is shown as an asset but has not yet been received. Members of the council will be aware that the Land Board which administers these reserves, has postponed payment of the rents. The council has in the meantime applied to the Government for an advance, as provided in the Finance Act, 1921-22. This, of course, involves payment of interest, and the position in regard to these reserves is far from satisfactory. Assuming that the Home Science School figures were treated with the other accounts. it will be noted that the Arts and General Account would close with a credit balance of £767 7s 4d instead of a debit balance of £IB7O 7s. Arts and General Account. —The outgoings for salaries show an increase of over £2OOO. and for equipment of, about £I3OO. The balance to the debit of the balance sheet and the Arts and General Account is £IB7O 7s against £4196 9s 7d last year this being due to the great increase in students’ fees, resulting from the larger attendance of students, an increase which 1 am afraid may not be maintained. It will be noted that, the Arts and General Account has received much relief this year owing to the fact that the debit to the other schools is greatly reduced, tho debit for this year being nearly £4OOO whilst last year it was over £7000” The debit balances of the other schools for the years 1920 and 1921 may be of some interestl92o—Mining School. £1296 19s 3d; Dental School, £1875 15s 6d; Medical School, £3556 8s 9d; Museum, £541 8s lid; 1921—Mining School, £1374 0s lOd: Dental School, £1197 13s lid; Medical School, £IO2O 9s 9d; Museum, £•57 7s lOd. “The improvement in the Medical School is no doubt due to the fact that the greatly increased classes are now extending throughout the whole course. It must be emphasised. however, that the number of entrants this year is much reduced and in due 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 the 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. Members of the council will remember that the Hospital Board lias been approached for a larger grant and has promised to consider it when framing the next estimates. “Home Science School.—This account shows a very considerable credit of £2637 14s 4d, an advance of £1473 8s Id for the ye'ar. This advance has been made notwithstanding heavy increases in salaries owing to new and important developments in tlie work. It will be noticed that the allowance made to the school out. of the statutory grant is £1555, this including £555 allotted from the increased statutory grant to the University of £SOOO. In view of the buoyant position of this school it seems qpen to question whether this more or less' automatic increase should not be reconsidered It must be borne in mind that although the account shows such a satisfactory credit there are very heavy commitments, and further heavy capital expenditure for laundry, etc., is regarded as urgent by the professors concerned. “General. —I must emphasis© the need for caution during the present year. Reduced Government grants, reduced or postpon'd 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 the council must endeavour to distinguish between those 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 demand close and careful attention from the members of the council, so that the students may obtain the best that the 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. such a scheme would appeal to the Registrar I am unable to say. a* naturally I have not discussed it with him.” Mr Ritchie, in submitting this report, moved tliat it be referred to the Finance Committee. It was only as the result of strict economies that they had oomo through the year as successfully as they had. Their chief trouble had been the 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 He referred to the sound and flourishing condition of the Dental School and tho Home Science School, and staled that there had been a big decrease in the number entering on the medical course this year. Tho report strongly emphasised the need for caution, and for seeing that sound value was obtained for every part of their expenditure. Dr Ferguson seconded the motion and congratulated Mr Ritchie on his very able and lucid survey of tho year’s work. It was somewhat unusual for a treasurer to take anything but a financial view of the situation. The motion was carried.