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INTER-UNWEIWW ANDIPnaA-- % O M P ~ N S

On* of the J s Wc t S FA is ro manage rlnancial afla;rs!ar rf fecrln# utmost efllclencv U J :?In the orgrnlsr tlon. f.3.~ r h e r ital asp.ct Is to compare one's performance with that orr:mI'ar Or#JnlSJtiOnS so that the eff:cIency could be further:.proved. FA in Universl ties is no erceptdon to this. For'nter-Unl ersl t y i'omprrlson. ratlo anal vsfs becomes J handy toolan0 b8ln# a r J t J 0 I t removes the effects Of variables which Could70; be compred In absolute terms. An attempt 1s Ud. here todmsl4n J nwber ot dla#nosllc ratlos in respect of all p r t s I tof v of accounts and the Balance Sheet. I t 1s also andeavoured tonor). out arm-1 rverr#es ol assets r: :h a v ~ e w o com~.re, ulthincertaln Il#ltallon# and lnterpretatlons, the rssets status ofdlfferenc Central Unlversltlee. Here. coeprrlson Is made w i t h NU.

1. ldoortioa rad Wrtionrl Detelopnnt, &.Cft.

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l* at l critical crorr road of history where thecboice 18 betmwn education and disaster. lo musteitber build a round, balanced effective m d imaginative.due&tional ryrtem to meet our developing needs andrerpond to our Challenging aspirations or be content tobe rvept arid. by the strong current. of history.

This categorical statement of the Education Couissionin 1966 is Still valid even today.

Need to Plug brkage

1 educational reformsand tons and tons ofrecowandations of conissions and committees, do not find theilgbt of the day becruee of resource crunch. Any recommendation:or developoent lnvolves cost and so merely enumerating a longlist of recommendations Alone will not fetch the desired resultsjus to lack of funds for their ;@pleaentation. Bence the firstbud loremost concern should be on developing the effectiveness oftbc fiaancirl system so that w l t h l n the available resources,?!forts could be u d e to improve the system aiming at theb:hleve.snt of the objectSv@s. Any amount of pouring water in aieaky bucket will not fetch benefit. Before identifying sources:O improve re.ources, i t is A must tbrt the present resources are1::illred optimally rod effectively. Y.C . Kulandri Smamy states.

?hl000 no doubt bar been and is a constraint but th.tbar not b w n the u i n impediment. The real weaknetre oftb. higber education system in India todry ir themlkBe88 of its management. If there is one siagle18p.ct of bigber education that deserves and mrrrrntr1 Y l i a t e attention, it is tbe managemat of Un iv er ~i tymrrortion

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?A, the Core of YAnag.rent System

The entire management system ultimately depends onfinance, as it is required for implementing managerial decisions,except in the case of non-monetary incentive and motirationalprogramer. Effective PA using modern techniques and methods, isessentlbl especially in Universities, which are producing highlytechalcal unpover to man the top corporate organisations.

With this vital objective in view, an attempt is madeto develop a few indicators which would help to diagnose thewtaknesres of the departments or units of the University. It isalso further attempted to find out certaln indicators for Inter-Onlverrlty Coaparlson which may have certain limitations to startwith, but i t could be improved and made effective by introducingbetter accounting and budgetary control.

Rood for Ooiform Accounting

Inter-firm coopariron is a technique used by corporatebodlea to improve the porforunce of the industries in thecountry b t adoptlag wherever possible uniform ~ c c o u n t l y andcosting w thoda. Such comparison is useful to identify the*e&knerrer of s c m of the units coming into tbe fold of inter-firmCaprrieon, rod try to improve their effectiveness by adoptingCertafa n t b o d r rod procedures folloved la better organiaations.I n t o d i m eaparieoa la r ready moans by which exp.rieoccl and

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rkill rrailable to tbe beat unit in an indurtry, is made available1to one and a11 within it. This is applicable to Universitier as

me11 and hence an attempt is made here to identify inter-unirerrity indicatorr in the field of PA.

The annual accounts remain as a static recordindicating tbe bistoric cost of the Universities. Thoughunlverritlem are service orgaaisrtions not aiming at profit, itneed not prevent the management to reform the system to improveit8 productlvitp. If the Lniversitles want to improve theirproductlvity, naturally modern accounting techniques should berdopted incorporating the features of corporate accounting, rith6u:table ~odiflcatlons nd adaptations.

2Om Prakasb brings forth the importance of h t i o s thus:

Tbe h t l n word Ratio stands for reason &nd indicatesthe relation or the proporticc of one thing to anotherand Accounting Ratios have been amply developed todlagnore and Study the effecrlveness of organisations.Modern Management Science, lo an endeavour to importObJectivity and precision in:c the decision makingprooerm, bar coma to rely rather heavily onQuantitative techniques, a jolnt family within whichratio a n a l y ~ i s appears to be m s t conveniently&pprorch&ble member. Hovever, for tbe m s t prrt, theererc1.e ham been limited to :he area of financialu a a a s w n .

1. 8. Banarjoe and J.B. Bhattachrrpa, Bend Book of Costing,U ~ U Aublirherr, Calcutta. 1867, p.698.

2 . h Prakroh,Ratio analyria for u n a g w n t in new p.rspective-U W g a o n t Ratioo,Biulaya Publishing m..,B#b.y, l987,p.v.

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Application of U t i o rCosldering the immense value of ratio analysis, it is

being endeavoured to apply this technique to the entire field ofmanagement, including financial management, production oro~rational management, marketing management, personnelnanagewnt and general management. Such a technique is notprofusely applied for national and Inst:tutlonal level comparisontn the education system, even at University Education Level.Advantagr of Ratios as a Technique of Cosparison

The annual accounts provide information on four majorbeadr - Son-Plan/Yaintenance Accoxnt. Plan/Develop.ental~ccount. Earmarked Special Pund account and Debt and DepositsAccount. Rare an attempt is made In evolving a package of ratioswbicb could indlcate the comparative status of UnlVerSitie5. Theabrolutr V @ ~ U ~ Sannot be compared because multifarious factorsaffect the absolute values. For example, a nascent OniversityBay not have much assets as compared to a century old University.Ration help to r e m v e the limitations of t i w and units and tou k e a reasonable comparison. A certain number of possibleratior a n m0rk.d out here I r a the data relating to ~n n u a lAccounta of PU and BU for 1990-91. The caap.rison of ratiosprrrents the profile of P A of the two Universities.

11.1 RATIOS O? COYPOSITIOI OI ACCWIITSmjor r.tim of the composition of the total account8

ammrkod out bere:

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Oponins Balance1 . --------------total ReceiptsXon-Plan Receipts2 . ----------------total Receipts NPR--- .576TRPlan Receipt63. -------------total ReceiptsSarurked Bm cial Fund Receipts

4 . ...............................Total ReceiptESPR---- .052TR

Debt . Deposit, Advlnces, Receipts5 . ................................

Total ReceiptDDA R---- .I77TR

%OD-Plan Payments6. -----------------

Total Payeents?la0 P ~ Y M D ~ S7. -------------Total PIJWO~S

ESFP---- .051TP

Earmarked Spacial Fund Payments8 . ...............................Total Psymeots DDAP

---- .I49TP

Deb t . Dspoalr. Advances Payments9. ................................Total Payments

Closing Balance10.total Payments

Cap.riroo ot Paymonts to receiptsNPP---NPU

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Plan P a ~ n a t s19. ------------Plan 8.c.ipts

8a na rk ed Sp .c ir l Fund Payments1 3 . ...............................Earmarked Special Fund ReceiptDebt Deposit Advance Payments14 , .............................Debt Deposit Advance ReceiptsClosing 81 ance15. ---------------Opening 8alance

ESFP--- .984ESFBDDAP---- 0.842DDAR

I t may be noted her e that Rat ios 11 t o 15 can besbtained froa the corresponding ra t i os o f receipts and pag6entS.

WPP TR NPPFor Example: --- x --- - ---, because TR - T PTP NPR WPR

Racelpts r a t i o s i nd ic at e the amount received during th e year, 8scompared t o t o t a l re ce ip ts s o al so the payments r a t i o s . Thep a y n n t s t o r e c e i p t s r a t i o s ah08 wbether rclceipt8 &ad paymentsa r e equal o r t o what ex tan t the deficiency has been cr ea te d andunder eb r t u j o r bead. lberever the ra t io is exceeding 1, thep a y n n t i s gr ea te r than the re ce ip ts , ei th er eati ng away,from th e0p.ning b l a o c e o r usinq t h e funds f o m oth er beads.

Both under r e c e i p t s and paywPtO, Won-plan component81s wrc) tb.p b a l l , the case PU.mhereas i t a l i t t l e 1 8 ~ ~tb ln b.1: fo r BU i n 1890-91. Baring b80a -11 e8 tab l i rh .d 11

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year* ahead of PO, ItU war able to gain more funds throughearurked ~p.ci.1 fund. PU has to make a greater and sustained,ffortr in tbir direction, as tbe ratios relating to PO are leasthan tbat of ilU: ESPR/TR of W mas 0.052 and for HI) it was 0.122.

In tbe case of payments to receipts ratio tbey weremore tban one for HU for Non-Plan, Plan and Endowments accounts,~ndicating the fact tbat tbey spent more than what they receivedi n 1990-91. For PU, i t was so, only in tbe case of plan account.CBfbese facts were also reflected in the --- ratios which wereOBs . 5 0 7 for BU and 1.653 for PU i.e. the CB became 1.653 times tbato f 38 for PO.

11.3 RATIOS OF PART I, WON-PLAN ACCOUNT

The receipts and payments account shows payments forrtc:rrlng and non-recnrrlng expendlture whereas the income andexpenditure account shows the recurring expenditure alone.:*pending upon the rvailability of detailed figures, the2o;lalng recurring expendlture analysls is made, as BalanceSheet figurer take care of assets aspects.

Ratlor of ReceiptsYaintenanee Grants from UGC YC1. --------------------------- -- 0.841 0.938Total lnc- TIUnivetmity Receipts

2. ---,-,------------Total Ino0.eA?- 0.030 IncludedTI in 4total Isoon

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mio oat ion tees4 . ---------------Total Incomeb o d and Building Income5. ........................total IncomePubllcatlon Income6 . ------------------Total IncomeYi~cellaneous Receipts7. .....................Total IncomeAcadoalc Pees

8. -------------University Receipta Includedin 9Examiaa tion Pees9 . ----------------University ReceiptsLand and Building Income

10. ------------------------University ReceiptsPubllcatioas Income

11. -------------------University ReceiptsYiscellansous Receipts12 . --*-------------*-----University Receipts

&.currlnf Payments1 3 . -----------------Total Paym.0 tloo Recurring Payments14 . ----------------------Total paymentsAdmlnistrativo Office Bxpanditura15 . --------------------------------total txpooditureVC Olliae txpoodl ture16. --------------------TO-1 8~p.lrdit~r8

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- Office Expenditure------------------------t o u 1 txpanditure ROE---TEFinance Office Expenditure--------------------------Total EapclnditureVC Office Expenditure.................................Adolnistrative Office Expenditure

VCOE----AOE

Registrar Office Expenditure.................................Adoinistrative Office Expenditure

ROE---A08

Finance Office Expenditure---------------------------------Administrative Office Expenditure

POE---AOE

Academic Departments Expenditure................................Total Expenditure

ADE---TETotal Salaries-----------------Total ExpenditureOther Cbarges-----------------Total Expend; turcTssching Strfl Salar~es-----------------------Total Salarles TSS---TSWon-Teacblng Staff SalariesTotal SalariesConoa Service and G@ncrrl Cbarges------------------*---------------

Total ExpensesCSCS----TE

Examlaat ion Bapencer---------------------Total ExpenditureLibrary Exponser---------------Total txponaea FSE

---TE

?~llOW.bip Bcholarship Expanses--------------------------20-1 Expeoror

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Bo8tel kxpan8es31. ---------------Total ExpensesStudent Iacilities Expenses32, ...........................Total Expenres

SFE--- 0.025 0.003TEOther Departments Expenses ODE33. ----------em-------------- --- 0.081 0.156Total Expenses TEProvldent Pund,Pension Expenditure PFPE34. .................................. ---- 0.001 0.011Total Expenses TEProvision for Depreciation PD Not3 5 . .......................... -- Provided 0.005Total Expenses TEYalntained Institutions Expenses HIE Not36. -------------------------------- --- Applicable 0.019Total Expenses TE

Analysls of ReceiptsFor PC, University receipts contributed 0.159 parts

mbereas I t was only 0.062 parts for ID. The academic fees andexaslaation fees contributed 0.030 + 0.076 - 0.106 parts for PO.hercar i t was only 0.023 phrts for EU. The other incore fromland and building and publications mere not so much for W.Ratios 8 and 9 indicate that fees formed nearly 0.7 (0.191 +0.476 0.667) parts of University receipts of PO.

An anrlpris of the expenditure ratios 8ho.s that theAdrinfrtrrti~~ffice Expenditure was prop~rtionatelp higher for

(0.148) tarn for PU (0.104). 10 RU. the expandituret for theOftice of Ily1rtr.r and Finance Officer were higher a8 c m p . n b

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to W . 8 imply the poraible interpretations that eitherin PO tbere was less number of staff or less facilities o r betterecoaOW. A deeper analyair of the expenditure by individluli t r s would reveal the point/area where the expenditure wagexceeding th e standard at BU or the expenditure ram of

nature in PD indicating the need to provideaddition&l s ta ff or better facilities. la the year 1990-91. theexpenditure in Vice-Chancellor's office was higher in PU th an W .Thlr was due to the fact that at the infant stage every actionhad to be taken or initiated at Vice-Chancellor's of fi ce andhence required more staff to accomplish tbe work. Th e ra ti os o fexpenditures of the three major heads, Vice-Chancellor office,Begiatrar oftice and Finance Office, to the total administrativeexpenses (ratios 16 to 18) also confirm this view. .Theexpundlture in H C war proportionately higher than that of PO, isr l s o corroborated by the indicator 'Per Employee Expenditure'.For PU. i t was Rs. 18.97 thousands and for HU it was Rs. 24.59thousandr. These are only broad in d~ ca to rs and specific andexact inferences can be drawn by further analysis rith -rein fo ru ti on and details. These indicators serve as a cor pas s of

navigator rbowlng tbc dlrcctioa in which the institutions arewring , which mag be due to inter-play of in nw be ra bl e factors.It could pave way t o find out the exact CaU6eS of deficiency orHamUrem requlred to improve the system.

4c I.p.ndl tureIn aaademic aide also the expenditure i n d i a t o r ma.

higbor tor 110 (O .J84 ) bu t not of much variation. Per Teaoher m d

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per Student Lxpenditures were far higher for EU (88.351.22thousands and 88. .66 thousands). These were 8s. 224.34thousands And 86.34.28 tbousands for PU.

When 'Per Teacher Departmental Expenditure' iscmpared. it in found that the situation was the same i.e. BUwas spanding more than PU but when 'Per Student Departmental~xpe ndit ure' is compared, i t is found that the rate was slightlyhigher for PU (16.67). This was due to low Student Teacher Ratio:or Pt ( 2 . 1 8 ) . I t was 5.091 for HV. That is, for every reacherthere were 5.091 students whereas i t was only 2.18 for PU. Thustb@Se ratios clearly indlcate the need to improve studentsstrength in PC as compared to K C . But when a standard ST8 isfixed for each department for optimum .~tilization f funds, andeff ec tt ve ne rs ln teachlug, the exac: .zariance can be found outand remedial measures can be suggested.

Expenditure on Gxrmlnation

m e n expenditures on examination and the library arecwpared i t 1s found that PC was spending proportionately more one~ am ln rt lo n han HU. The u j o r reason is that PO has affiliatedln~tltutions. A mtudy of the various items of expenditure onexamlnrtion at PU and BU w u l d reveal the possible ways and m a n sof lntroduciog economy or cost reduction teachniques for PO. ItM y r1.o b. due to the fact that the number of prpera to be. g u i r d b. high in pt~with small number Of C.ndid.tet foreach .aj.~t, hich naturally would increare expenditure w a11beaer of ourinatiao.

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For Library, PU axpenditure was far lower than that ofRU. This 8180 discussed when the development of assets wasrnalysd in Cbapter Five. Puther the indicators discussed in thesucceeding pager also corroborate this. The average value ofbook0 per year was only Rs.19.8 lakhs for PU which was Rs.3B.ilrkhr for HU. Thie is further strengthened by the indicators per5:udent library books (13.15 for PL' and 36.39 for HU) and perrcrcber library books (86.10 for PU and 306.84 for HU). Promratlous angles i t 1 s clearly found that PU required to investsore on Library faci!it;es :n buildlng up its stock as well asproviding faclllties.

11.4 RATIOS OF PART 1 1 , PLAN ACCOUNTS o w of t h e important ratios of plan account as

:>eputed from receipts a n d payments accounts are given below:

R8:ior of Plan Account

Revenue/Recurring Payseors., Total Payoants

Won-Recurring Paywnts2 . -----,----,,-,--------Total P a m a t e~uiidin g atmentr BP

3 . -,,,,,,,,,,,,,,,- -- 0.272 0.560Bon-Recurring Paymaate NRPUbr~r) . ooks Payments4 . - ------------ ----b-lraurriag Payments LBP---nm'

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Purnitnro Payments5 , .....................Boa-Rocnrring PaymentsVohicln Payw nt6 . ----------------lon-hourring Payments5auip.nt Payments7. ------------------Won-Recurring PaymentsComputer Payments8 . -----------------Won-Recurring Payments

CP Included under-- EquipmentRRP

Structure Of Receipts and Payments

These ratios provide a fer:ile field to analyse thestructure of non-plan and plan receipts and payments. Theseindicators are useful in comparing the expenditure pattern of theCnlversitles. Revenue expenditure under plan account was a littlehigher than the Capltal expenditure for PU,because fresh specificschemes whlch were sanctioned to PC during Seventh P l a ~ werecontinued in 1990-91 also,whereas for HU capital expenditure wasfar beavler than the revenue expenditure in 1990-91. Further POspared 0.70 parts of total payments for equipment and coDputerswhereas I1U could spend 0.367 parts.

11.5 BIT108 OF PART 111, BARNARKED SPECIAL PUID ACCOWI

&tios o f Barurked Special Fund Account are worked outfrom receipts and payments accounts as shown below:

?o~ lm. hip , Scholarship Pa ym nt s FSP1. .I----------------------- 0.314 0.902T P.ymnts TP

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PrOjOCt8 Prymontr2. ---------------**Total Paywatrtellwrblp, Bcbolarrhip Payments3. ................................ PSP--- 0.889 1.381Pellwrbip, Scbolarlrblp Receipts PSRProjoctr Payments

4 . -----------------Projects ReceiptsSeminar Payments

5 . ----------------Total PaymentsSeminar Payments

6 , ----------------Seminar ReceiptsAsset8 Payments

, , - - - - - - - - - - - - - - -Total Payments

In PC. :o~kl prymeats on projects ratio includingA s s r t s Trs only i.?E9,whereas I t was 0.425 for HU. I f moreprc:actr arc conple:e:, mare !unds c a n be received to build upsoae of tbe rsse:s :lke epxlpreer.: and books. However, PU-:.:ired bet te r tbc :-rids receives !or seminars. HU spent more:ban i t s recelpts st !eliorshlp an3 projects ln 1990-91, Usingopening balance.

i l . 6 RAT108 OF PAR: I\', EBT, DEPOSITS AND ADVANCES ACCOUhTSeperates sets of ratios lor receipts and payments are

oorkrd out for part I \ ' account as follo~s:Rattor Of Ikoeiptr 1990 - 91PO W

PPR--- 0.143 0.420TDR

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Depreciation Reeerve Receipts DRR Not2. ............................. --- Provided 0.032Total Deposits Receipts TDRHouse Building Fund Receipt3 . ........................... RBF--- 0.004 0.537Total Deposits Receipts TDRSecurity Deposits

4 . ......................Total Deposits ReceiptsSD--- 0.011 0.017TDR

Caution Deposit Receipts CDR5 . ........................ --- 0.005 0.006Total Deposits Receipts TDRRemittance, Recoveries Recelpts RRR6. ............................... --- 0.238 0.437Total Receipts TR

I n Item 3, HU received Rs. 15 lakhs from UGC hencehigher ratio. PU is also having separate Temporary AdvancesAccounts for Plan and Non-Plan heads. The Ratio of TemporaryAdvance Receipts (Non-Plan) to total receipts was 0.162 and forPlan, it was 0.128.

Ratioe of PaymentsPF Payments7.Total Payments

PFP--- 0.070 0.448TP

Depreciation Fund Payments DEP Not8 . .......................... --- Provided 0.029Total Payments TP

House Building Advance Payment BBAP9 . .............................. ---- 0.014 0.056Total Payments TPSecurity Deposit Payments10. .........................Total Payments

CDP---TP

Caution Deposit Payments CDP11. ........................ --- 0.002 0.004~ o t a l ayments TP

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Remittance, Recoveries Payments...............................~ o t a l ayments

RRP

PF Payments-----------PF Receipts

PFP---PFR

House Building Advance Payments...............................Rouse Building Fund Receipts

HBAP----BBFR

Security Deposit Payments.........................Security Deposit Receipts

SDP---SDR

Caution Deposit Payments........................Caution Deposit Receipts

CDP---CDR

Depreciation Fund Payments..........................Depreciation Fund Receipts

DFP---DFR

Remittance 8 Recovery Payments RRP---RRRemittance 8 Recovery Receipts

Pension Fund Receipts......................Total Receipts

PFR---TR

Not.0.025 Shown

PFP---TP

Not0.012 ShownPension Fund Payments.....................Total PaymentsPension Payments....................Pension Fund Receipts

PP---PFR

Not0.472 Shown

Endowments Interest Receipts............................Total Receipts

EIR---TR

Not0.012 Shown

Endorment Payments------------------Total Payments 0.007 Aeglible

Endowment Payments..........................Endowment Interece Receipts

---EIR

Endowment Total Receipts........................Total Receipt

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There is no uniform presentation of the items of thestatement and hence a few receipts/payments cannot be compared.The receipts of various advances and deposits serve as a cushionfor paying temporary advances. When adequates funds are notavailable for meeting urgent expenses,the deposits in these itemsmay be temporarily utilised and then recouped.

For P U , the ratio of OB to Total receipts was 2.60whereas the CB to total payments was 0.377. This indicates thatthere was adequate balance for meeting payments. The ratio of OBto CB was 1.450

Depreciation on AssetsPU is not providing depreciation on fixed assets. This

is a major issue to be decided at national level. There areviers both for and against providing depreciation. Though themaintenance grant is paid by UCC, when major equipment becomesobsolete or out-of-order, a major amount will be required forpurchasing such equipment but normally all cannot be purchasedfrom Maintenance Account. If funds have been already planned inplan account, the purchase of the costly equipment can be madefrom it. If an expenditure occurs due to unexpected break-downof any of the costly equipment, it would be difficult to meet theexpenditure. Since University is non-profiting organisstion,there is no P and L account or P and L appropriation account andhence depreciation in not provided.

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11 . 7 RATIOS OF BALANCE SHEETThe ratios relating to assets and liabilities are given

below separately:~atior f Asretr

Fixed Assets1 . --- - - - - ---Total Assets

Current Assets2 , ---------------Fixed AssetsBuildings Value3 .Fixed AssetsFurniture Value4. ----------------Fixed AssetsLibrary Books Value LBV5. ------------------- --- 0.085 0.201Fixed Assets FAVehicles Value

6. --------------Fixed AssetsEquipment Value7. ---------------Fixed AssetsTemporary Advances8 . ------------------Current AssetsPF Investments9. --------------Current AssetsEndowment Investments10. .....................Current Assets

PFI Not--- Shown 0.403CA

Rouse Building Advance HBA Not11. ...................... --- Shown --Current Assets C

Cash Bank and Hand12 . ------------------Current Assets

CBA--- 0.585 0.255C

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RatiOB of LiabilitiesCapital Grants13. ------------------Total LiabilitiesCurrent Liabilities

14 . -------------------Total LiabilitiesEndomen

15. -------------------Current LiabilitiesDeposits16. -----------------Current LiabilitiesPF Deposits17 . -----------------Current LiabilitiesHBA Fund18. -----------------Current LiabilitiesUnspent Balance

19. ....................Current LiabilitiesNet Working Capital20. -------------------Total Assets

Unit Investment on Assets21. Per Employee Fixed Assets22. Per Teacher Fixed Assets23. Per Student Pixed Assets24. Per Student Library Books25. Per Student Equipment26. Per Employee Furniture27. Per Teacher Library Books

PFD---CLHBAF----

CL

NWC---TA

(Rs. in thousands)PEFA 85.72 106.84PTFA 1013.72 1526.17PSFA 154.82 181.01PSLB 13.15 36.39PSE 12.06 60.61PEF 4.69 6.33PTLB 86.10 306.84

28. Per Teacher Equipment PTE 78.97 511.06

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UNIT EXPENDITURE INDICATORS

A Comparison of the indices per unit expenditure frommaintenance grant shows the gaps which should be bridged byspeci&l efforte:

(Rs. in thousands)1. Per Employee Expenditure PEE 18.97 24.592. Per Teacher Expenditure PTE 224.34 351.223. Per Student Expenditure PSE 34.26 41.664. Per Teacher DepartmentalExpenditure PTDE 67.77 128.045. Per Student Departmental PSDE 16.67 15.19Expenditure

Ratios of Unit ExpenditurePer Employee Expenditure

6 . ........................Per Teacher ExpenditurePer Student Expenditure

7. .......................Per Teacher ExpenditurePer Student Expenditure8. .......................Per Employee Expenditure

PEE--- 0.085PTEPSE--- 0.153PTPSE--- 1.806PEE

Per Student Department Expenditure PSDE9. .................................. ---- 0.200Per Teacher Department Expenditcre PTDENon-Teaching Staff Number NTSN10. .......................... ---- 4.280Teaching Staff Number TSN

11.8 RATIOS OP INTRA-UNIVERSITY CONPARISON

Detailed analysis of inter-departmental expenditure wasmade in Chapter Seven. Here application of ratios for Intra-Univerrity comparison is illustrated by taking Physics Department

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as a case study, attempting inter-University comparison of suchintra-University indicators.

Ratios of Physics Department

Teacher Department Expenditure TDE1. .............................. --- 0.656 BADepartment Expenditure DE

Non-Teacher Department Expenditure NTDE2. .................................. ---- 0.108 NADepartmental Expenditure DE

Non-Teacher Department Expenditure NTDE3. .................................. ---- 0.111 NTeacher Department Expenditure TDEOther Charges Department Expenditure OCDE

4 . ---- 0.236 NADepartment Expenditure DEDepartment Expenditure DE5 . ................................ --- 0.288 0.288Group of Departments Expenditure GDEStudents Number6 . ---------------Teachers Number

SNSTR = -- 2.180 5.091TNTeachers Number TN7 . ------------ TSR = -- 0.460 0.196Students Number SNStudents Appeared for Exam. SAE

8 . .......................... --- 0.833 0.955Students Passed the Exam SPE

(Rs. in 1000)9. Per Student Department Expenditure = PSDE 36.37 24.3810. Per Teacher Department Expenditurs = PTDE 89.27 124.13

These indicators are worked Out for Phpsics Departmentas an example and similar analysis can be done for otherdepartment6 also.

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1l.B AVERAGE ACCUMULATION OF ASSETS COMPARISON

Problem in Comparison

It is not meaningful to compare the accumulation ofasset6 of two Universities established in different years. Auniversity established for longer period would normally haveaccumulated more assets.

With a view to compare accumulation of assets over atime span and to nullify the time impact to certain extent, the

1average value of assets accumulated can be computed and by this,Cnlversities of different years of existence could be compared.

Average Value Per Annum as Indicator(Rs. in lakhs)

1. Average Fixed Assets Value (AFAV) 252.6 225.52. Average Buildings Value ( A B V ) 179.0 75.33. Average Equipment Value (AEV) 18.2 65.24. Average Library Books Value (ALBV) 19.8 39.15. Average Vehicles Value (AVV) 3.4 3.56. Average Furniture Value (AFV) 12.8 11.5

Analysis

PU being in the nascent stage, has to invest more onbasic building requirements to accommodate DepartmentsJSchools.So, the Average Buildings Value for PU (179) was nearly doublethe value of HU (75.3). But PO was lagging behind in providinglibrary facilities and equipment. These two areas should get

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more attention in PU. UCC should provide proportionately lorefunds for these two areas under Plan scheme.

In fact, if the absolute value is to be avoided, sayRs. of expenditure, the average Fixed Assets Value can be takenas the denominator and the ratios of respective assets can beworked out and compared.

Ratios of Average Values per AnnumAverage Buildings Value ABV

1. .......................... --- 0.709 0.334Average Fixed Assets Value AFAVAverage Equipment Value2. ..........................Average Fixed Assets Value

AEV--- 0.072 0.289AFAV

Average Library Books Value ALBV3. ........................... ---- 0.078 0.173Average Fixed Assets Value AFAVAverage Vehicles Value

4 . ..........................Average Fixed Assets Value

AVV--- 0.014 0.016AFAV

Average Furniture Value AFV5. .......................... --- 0.051 0.051Average Fired Assets Value AFAV

The analysis of the ratios as indicators connectedwith various accounts and Balance Sheet has clearly establishedthe hypothesis H 10: The variations between diagnostic indices ofPA of an older University m d a new University are considerable.

8Uuaz-y and Conclusion

The ratio analysis is useful in getting a completefinmcial perspectives of the Universities compared. Bymal yri ng the ratios of the receipts and Payments shown under

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~ b st r a c tr / r u ~a r y , he composition of Parts I to IV, along withthe OB/CB 18 clearly brought out. PU's receipts and paymentssere leas than HU. PU spent more than its receipts under planaccount wharear HU did so in parts I to 111 accounts.

An analysis of the ratios of Nan-Plan accounts showedthat PU's share of grants from UCC was only 0.841 as compared to0.938 of HU. The University internal receipt was better in PU.~dministrative and accademic expenses were higher in HO. Teacherexpense was proportionatly higher in BU but it was higher fornon-teacher expense in PU. PU spent more on examination andstudents facility hut less on library.

Under Plan Account, PU being a new University theproportion of revenue payments vere higher -n e PU's payments onnot-recurring items vere only 0.478 to the total, whereas it was0.616 for HU. PU could spare 0.070 parts of total payments forequipment and computers whereas, HU could spend 0.367 parts.

In the case of Earmarked Special Funds, HU was able t opay much towards scholarships and projects (ratios were greaterthan 1 which vas not so high ior PU. Rovever, PU utilizedbetter, the funds received for seminars.

Under Debt and Deposit accounts, the major componentof receipts for HU was HBA (House Building Advance) (0.537) in1990-91.PP receipts ratio was also higher for HU,O.42O,which wasonly 0.143 for PU. Payments of HBA to ABA Receipts, was higherfor PU. Receipt8 to total receipts ratio was 0.025 for AU and0.002 for RD which was very low.

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The Ratio of fixed assets to total assets for PU was0.923 and 0.863 for AU. The major chunk of the investment hadgone to buildings. The ratio of Buildings value to Fixed Assetswas 0.767 for PU and 0.387 for AU. Endovment investment was farhigher for PU. The ratio of endowment to current assets was0.133 for PU and 0.001 for AU it was very meagre. The ratioof PP Deposits to Current Liabilities was higher for HU than PO.

The ratio of Net Working Capital to Total Assets wasnegative for PU ( - 0.034) and it was 0.027 for HU. The negativeratio for PU indicatesthe financial difficulties faced by PU in1990-91.

Unit expenditures were less for PU than AU, exceptin per student departmental expenditure. For example, unitvalues of fixed assets for PU sere far less than that HU. Exceptln Equipment and Library the Average Fixed Assets values werehigher for PU,because of acceleration in accumulating the assets,in its infant stage.

Ratios have been evolved so that the Intra-UniversityComp&rison of departments, as well as Inter-University Comparisonof respective departments may be made. The ratio of PhysicsDepartment expenditure to that of Science Group in 1990-91 wassame for PU and HU but the Student Teacher Ratio was lower andPer Student Department Expenditure was higher for PU. The outputratio (number of students passed) was better for AU (0.955) (forPU it wrs (0.833).

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A Packape of diagnostic ratios to picturise thecomplete financial profile of the University system bas beenevolved. This package would help to make Inter-Universitycoa~prriron like Inter-firm comparison of corporate bodies. Thefour major accounts, parts I to I V have been analysed withappropriate ratios, along with ratios relating to the BalanceSheet. Ratios based on unit and average values of assets havealeo been attempted. The study of ratios is a fertile fieldwhich has opened new vistas in PA in University system withfascinating findings and there is ample scope to evolve ratios atfurther micro levels as a separate study.