Escolar Documentos
Profissional Documentos
Cultura Documentos
INTER-UNWEIWW AND % O M P ~ N S
utmost efllclencv
f. . 3
~ r h e r vital asp.ct Is to compare one's performance r:mI'ar :.proved. Or#JnlSJtiOnS so that the eff:cIency could
FA
in
to
J
this. handy
Of
An attempt 1s Ud.
to
1.
&.Cft.
l* at l critical crorr road of history where the cboice 18 b e t m w n education and disaster. lo must eitber build a round, balanced effective m d imaginative .due&tional ryrtem to meet our developing needs and rerpond to our Challenging aspirations or be content to be rvept arid. by the strong current. of history. This categorical statement of the Education in 1966 is Still valid even today. Need to Plug b r k a g e 1 educational reformsand tons and tons find of the Couission
recowandations of conissions and committees, do not ilgbt of the day becruee of resource crunch. :or Any
recommendation a long
list of recommendations
Alone will not fetch the desired results Bence the first
fiaancirl could
the available
resources, at the a
?!forts b:hleve.snt
aiming
o f the objectSv@s.
sources 1
improve re.ources,
::illred
?hl000 no doubt bar been and is a constraint but th.t bar not b w n the u i n impediment. The real weaknetre of tb. higber education system in India todry ir the mlkBe88 of its management. If there is one siagle 18p.ct of bigber education that deserves and mrrrrntr 1 Y l i a t e attention, it is tbe managemat of Univer~ity mrrortion
?A, the Core of YAnag.rent System The entire management system ultimately depends on
finance, as it is required for implementing managerial decisions, except in the case of non-monetary incentive and motirational
programer.
essentlbl especially in Universities, which are producing techalcal u n p o v e r to man the top corporate organisations.
With to develop
made the is
wtaknesres of the departments or units of the University. also further attempted to find out certaln indicators for
Inter-
better accounting and budgetary control. Rood for Ooiform Accounting Inter-firm coopariron is a technique used by bodlea country costing to
bt
corporate in the
improve
the porforunce of
the
industries
uniform
wthoda.
comparison is useful
*e&knerrer of s c m of the units coming into tbe fold of inter-firm Caprrieon, rod try to improve their effectiveness
by
adopting
Certafa n t b o d r rod procedures folloved la better Intodim eaparieoa la r ready moans by which
organiaations. exp.rieoccl
and
attempt is made
annual
accounts cost
remain of the
as
static
record Though it
bistoric
Universities.
not prevent the management to reform the system to productlvitp. If the Lniversitles want to improve
productlvity,
should
rdopted incorporating the features of corporate accounting, 6u:table ~odiflcatlons and adaptations.
2
Om
Prakasb
Tbe h t l n word Ratio stands for reason &nd indicates the relation or the proporticc of one thing to another and Accounting Ratios have been amply developed to dlagnore and Study the effecrlveness of organisations. Modern Management Science, lo an endeavour to import ObJectivity and precision i : nc the decision making prooerm, bar coma to rely rather heavily on Quantitative techniques, a jolnt family within which ratio a n a l y ~ i s appears to be mst conveniently &pprorch&ble member. Hovever, for tbe m s t prrt, the ererc1.e ham been limited to : e area of financial h uaaaswnt
1.
8 Banarjoe and J.B. Bhattachrrpa, Bend . U~UA Publirherr, Calcutta. 1867, p.698.
Book
of
Costing,
2.
being endeavoured to apply this technique to the entire field management, o~rational nanagewnt including financial management, production
marketing management.
personnel is not
level comparison
tn the education system, even at University Education Level. Advantagr of Ratios as a Technique of Cosparison The beadr annual accounts provide information on four Accoxnt. major
Son-Plan/Yaintenance
~ccount. Account.
wbicb could indlcate the comparative status of UnlVerSitie5. abrolutr V @ ~ U ~ S cannot be compared because affect the absolute values. For example, a multifarious nascent
factors
Oniversity
Bay not have much assets as compared to a century old University. Ration uke a help to r e m v e the limitations of t i w and units reasonable comparison.
A certain
and
to
number
of
possible to ~ n n u a l of ratios
ratior
a n
of
mr. 0kd
relating
Accounta
The caap.rison
mjor
am mrkod out
bere:
Oponins Balance
1.
total Receipts
2.
-------------Plan Receipt6
---------------total Receipts
total Receipts
Xon-Plan Receipts
NPR TR
---
.576
3.
-------------
4.
Total Receipt
Debt.
5.
.052
----
.I77
Total Receipt
TR
%OD-Plan Payments
6.
-----------------
Total Payeents
7.
8.
...............................
Total Psymeots Total Payments
ESFP
---TP
DDAP
.051
................................
Closing Balance total Payments
---TP
.I49
10.
NPU
---
19.
Plan P a ~ n ------------a t s Plan 8.c.ipts 8 a n a r k e d S p . c i r l Fund Payments Earmarked S p e c i a l Fund Receipt Debt Deposit Advance Payments
13.
...............................
.............................
ESFP
---
.984
ESFB
14,
DDAP ---DDAR
0.842
---------------
It
may
be
to
15
can
be
--TP
TR
--NR P
NPP
---,
WP R
because TR
TP
t o r e c e i p t s r a t i o s ah08 wbether
rclceipt8 &ad
payments
and
under
the
Both
Won-plan a
component
1 8 ~ ~
81s wrc)
tbln b.1:
tb.p
ball,
little
for BU i n 1890-91.
e8tablirh.d
1 1
year*
ahead
of
funds
earurked
~.i1 pc.
,ffortr in tbir direction, as tbe ratios relating to PO are than tbat of ilU: In tbe
ESPR/TR of W mas 0.052 and for HI) it was 0.122. case of payments to receipts ratio tbey were
~ndicating the fact tbat tbey spent more than what they
in
For PU, i t was so, only in tbe case of plan account. CB fbese facts were also reflected in the ratios which were OB s . 5 0 7 for BU and 1.653 for PU i.e. the CB became 1.653 times tbat
1990-91.
---
o f 38 for PO.
11.3
The rtc:rrlng
and non-recnrrlng expendlture whereas the account upon the shows the recurring of
expenditure figures, as
alone. the
rvailability
detailed
recurring
expendlture analysls is
made,
Balance
Ratlor of Receipts
1.
---------------------------
YC
--
0.841
0.938
TI
2.
total I s o o n
TI
0.030
Included in 4
4.
total Income
6.
........................
-----------------Total Income
Total Income
Publlcatlon Income
Yi~cellaneous Receipts
7.
.....................
Acadoalc Pees
8.
------------University Receipta
Examiaa tion Pees
Included in 9
9.
---------------University Receipts
University Receipts
10.
11.
-------------------
University Receipts
Yiscellansous Receipts
12.
--*-------------*-----
University Receipts
&.currlnf
13.
Payments ----------------. t
loo Recurring Payments ---------------------Total payments Admlnistrativo Office Bxpanditura total txpooditure
15.
--------------------------------
16.
ROE TE
---
.................................
VC Office Expenditure Adolnistrative Office Expenditure Registrar Office Expenditure ................................. Adoinistrative Office Expenditure Finance Office Expenditure
---------------------------------
---
AOE ADE TE
- --
-----------------
----------------Total Expend; turc Tssching Strfl Salar~es Total Salarles Won-Teacblng Staff Salaries Total Salaries
Conoa Service and G@ncrrl Cbarges
------------------*---------------
-----------------------
TSS TS
---
CSCS TE
----
Total Expenses Examlaat ion Bapencer --------------------Total Expenditure Library Exponser Total txponaea
--------------Expeoror
FSE
--TE
31.
32,
33.
---
0.081
0.156
PFPE ---TE PD
0.011
..........................
--
0.005
Total Expenses Yalntained Institutions Expenses 36. Total Expenses Analysls of Receipts For mbereas PC,
TE HIE TE
--------------------------------
---
0.159
parts and
0.076
fees
PO
from
The other
building
W.
+
An
that
the
for
Adrinfrtrrti~~ Office Expenditure was prop~rtionatelp higher (0.148) tarn for PU (0.104). Oftice of Ily1rtr.r
10 RU. the expandituret for
the
cmp.nb
to
W.
Y . 8
either
in PO tbere was less number of staff or less facilities o r better ecoaOW. itrs
A
expenditure the
by
individlul wag of
would
expenditure ram
exceeding
standard in
BU
or
the
expenditure need to
nature
PD
indicating
the
provide the
expenditure in Vice-Chancellor's office was higher in PU than W . Thlr had was due to the fact that at the infant stage to be taken or initiated at Vice-Chancellor's every action and of
office
hence required more staff to accomplish tbe work. expenditures of the three major heads,
The ratios
Vice-Chancellor
office,
to
18)
also
confirm
this
expundlture
rlso
For
PU. i t was Rs. 18.97 thousands and for HU it was These are only broad ind~cators and can be drawn by further
Rs.
24.59
thousandr. exact
specific rith
and
inferences
analysis
-re
of are
innwberable
factors. or
I.p.ndl
t ure
aide also the expenditure indiator m. a
In aaademic
higbor tor 110 (O.J84)
Per Teaoher m d
per
Student
Lxpenditures and
higher These
for
EU
thousands
88.4 1.66
were
it in found that the situation was the same more than PU but when 'Per Student
spanding
Departmental slightly
higher for PU (16.67). This was due to low Student Teacher Ratio
:or Pt ( 2 . 1 8 ) .
reacher Thus
there were 5.091 students whereas i t was only 2.18 for PU. tb@Se ratios in clearly indlcate the need to improve
strength fixed
PC as compared to KC.
effecttveners ln teachlug, the exac: .zariance can be and remedial measures can be suggested. Expenditure on Gxrmlnation men
expenditures on examination and the
library
are
c w p a r e d i t 1s found that PC was spending proportionately more on e~amlnrtlon than HU. ln~tltutions. The u j o r reason is that PO has affiliated on
expenditure
PO. to
It be
r 1 . o
b.
prpera
Cni.e .ddtt
.guird
for
a11
each
beaer
of ourinatiao.
For Library, PU axpenditure was far lower than that RU. This 8180 discussed when the development of assets Puther the indicators discussed in The average was value
of was the of
Rs.3B.i
Thie is further strengthened by the indicators per books (13.15 for PL' and 36.39 for HU) books
(86.10 for PU and 306.84
library
and
per
for
HU).
to
Prom
invest as
on Library faci!it;es
well
providing faclllties.
11.4
Sow
of
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 Paywnts
2.
.,
-----,----,,-,--------
Total P a m a t e ~ u i i d i n g ~atmentr
3.
,,,,,,,, ,,,,,,,-
Bon-Recurring
BP
-nm'
0.272
0.560
4.
--------------
Paymaate
Ubr~r).books Payments
----
b - l r a u r r i a g Payments
5,
Purnitnro Payments
6.
---------------Won-Recurring Payments
8.
-----------------
CP
Won-Recurring Payments Structure Of Receipts and Payments These structure of ratios non-plan provide a fer:ile and plan receipts
--
RRP
field to and
analyse
the These
payments.
indicators are useful in comparing the expenditure pattern of the Cnlversitles. Revenue expenditure under plan account was a little higher than the Capltal expenditure for PU,because fresh specific schemes whlch were sanctioned to PC during Seventh P l a ~ were
was
continued in 1990-91 also,whereas for HU capital expenditure far beavler than the revenue expenditure in 1990-91. spared 0.70 parts of total payments for equipment and Further
PO
coDputers
11.5
?o~lm.hip, Scholarship P a y m n t s
1.
. I -
T . t 1
P.ymnts
FSP TP
---
0.314
0.902
2.
PrOjOCt8 Prymontr
---------------**
Total Paywatr
3.
................................
Projoctr Payments ----------------Projects Receipts Seminar Payments
PSP PSR
---
0.889
1.381
4.
5.
---------------Seminar Receipts
Total Payments
6,
,,
--------------PC.
only :o~kl prymeats on projects ratio including
If
Assrts
Trs
more up PU more
prc:actr
soae
build
of
and
books.
However, spent
-:.:ired
:ban
its
better
1990-91, Using
opening balance.
il.6
RAT108 OF PAR:
Rattor Of Ikoeiptr
PO
PPR TDR
1990
- 91 W
0.420
---
0.143
2 .
Depreciation Reeerve Receipts ............................. Total Deposits Receipts House Building Fund Receipt
Not Provided
0.032
3.
...........................
TDR
---
0.004
0.537
......................
........................
SD --TDR CDR
0.011
0.017
TDR RRR
---
0.005
0.006
6.
TR
---
0.238
0.437
In
higher Accounts Advance ratio. for
Item
from
UGC
hence
PU is also having
Temporary of
The Ratio
Plan, it was 0.128. Ratioe of Payments PF Payments 7. Total Payments Depreciation Fund Payments
8.
PFP
---
0.448
TP DEP
..........................
---
0.029
Total Payments
9.
TP BBAP TP CDP
..............................
----
0.014
0.056
10.
--TP
11.
........................
CDP TP
---
0.002
0.004
~otal payments
Remittance, Recoveries Payments ~ o t a lPayments PF Payments ----------PF Receipts House Building Advance Payments
...............................
RRP
...............................
Security Deposit Receipts
Rouse Building Fund Receipts Security Deposit Payments ......................... Caution Deposit Payments
----
........................
---
Caution Deposit Receipts Depreciation Fund Payments .......................... Depreciation Fund Receipts Remittance 8 Recovery Payments Remittance 8 Recovery Receipts
--RRR
......................
Total Receipts
--TR
PFR 0.025
.....................
PFP
---
0.012
Total Payments Pension Payments .................... Pension Fund Receipts Endowments Interest Receipts
TP PP
--PFR
0.472
............................
--TR
EIR
0.012
0.007
Aeglible
..........................
--EIR
There statement
of
the
The receipts of various advances and deposits serve as a for paying temporary advances. When adequates funds
available for meeting urgent expenses,the deposits in these items may be temporarily utilised and then recouped. For
PU,
receipts
was
2.60
whereas the CB to total payments was 0.377. This indicates there was adequate balance for meeting payments. to CB was 1.450 Depreciation on Assets
that
The ratio of OB
viers
both for and against providing depreciation. grant is paid by UCC, when major
equipment
becomes for
out-of-order, a major amount will be such equipment but normally all cannot
required be
purchased in made
account, the purchase of the costly equipment can it. If an expenditure occurs due to unexpected
break-down
of any of the costly equipment, it would be difficult to meet the expenditure. Since University is non-profiting organisstion, and
there is no P and L account or P and L appropriation account hence depreciation in not provided.
11.7
RATIOS OF BALANCE
SHEET
The ratios relating to assets and liabilities are given below separately: ~ a t i o rof Asretr
1
2,
--------------Fixed Assets
Buildings Value
3.
Fixed Assets
4.
Furniture Value
5.
-------------------
LBV
---
0.085
0.201
Fixed Assets
6.
FA
7.
---------------
8.
Temporary Advances
9.
--------------
PFI CA
---
Not Shown
0.403
......................
HBA
---
Not Shown
-0.255
Current Assets
12.
CA
CBA --CA 0.585
------------------------------------
-------------------
17.
-----------------
PFD
--CL
CL HBAF ----
----------------....................
Current Liabilities 20. Net Working Capital ------------------Total Assets Unit Investment on Assets 21. 22. 23. 24. 25. 26. 27.
28.
NWC
--TA
(Rs. in thousands) PEFA 85.72 106.84 1526.17 181.01 36.39 60.61 6.33 306.84 511.06
Per Employee Fixed Assets Per Teacher Fixed Assets Per Student Pixed Assets Per Student Library Books Per Student Equipment Per Employee Furniture Per Teacher Library Books Per Teacher Equipment
PTFA 1013.72 PSFA PSLB PSE PEF PTLB PTE 154.82 13.15 12.06 4.69 86.10 78.97
(Rs. in thousands)
1.
Per Employee Expenditure Per Teacher Expenditure Per Student Expenditure Per Teacher Departmental Expenditure Per Student Departmental Expenditure
2.
3.
4.
5.
........................
PEE
---
0.085
PTE
.......................
---
PSE
0.153
.......................
---
1.806
..................................
Non-Teaching Staff Number
-------
0.200
..........................
11.8
NTSN TSN
4.280
Here application of
ratios for
Intra-
as
such
intra-University indicators.
1.
..............................
TDE DE
--DE
0.656
BA
..................................
Departmental Expenditure
NTDE ---NTDE
0.108
NA
3.
------DE
0.111
NA
TDE 0.236 NA
................................
STR =
DE
--SN --
0.288
0.288
TN TN TSR =
7.
------------
-SAE --SPE
0.460
0.196
Students Number
8.
SN 0.833 0.955
These indicators are worked Out for Phpsics as an example and similar analysis can be done
department6 also.
1l.B
A
have
university
normally
over
a the
of assets accumulated can be computed and by this, of different years of existence could be compared.
Average Fixed Assets Value Average Buildings Value Average Equipment Value Average Library Books Value Average Vehicles Value Average Furniture Value
2.
3. 4.
(ABV)
(AEV) (ALBV) (AVV) (AFV)
75.3 65.2
5.
6.
Analysis
PU
more
on
basic
So,
the Average Buildings Value for PU (179) was value of HU (75.3). facilities
the
library
and equipment.
more
attention in PU.
proportionately
lore
funds for these two areas under Plan scheme. In Rs. as fact, if the absolute value is to be avoided, say taken can be
of expenditure, the average Fixed Assets Value can be the denominator and the ratios of respective assets
worked out and compared. Ratios of Average Values per Annum Average Buildings Value
1.
..........................
ABV
AFAV AEV
---
0.709
0.334
..........................
--AFAV ALBV
0.072
0.289
3.
...........................
Average Vehicles Value
---AVV --AFAV
0.078
0.173
..........................
Average Fixed Assets Value Average Furniture Value
5.
..........................
The analysis
AFV
---
0.051
0.051
with
perspectives the
Universities
compared. shown
By
under
~ b s t r a c t r / r u ~ a r y ,the composition of Parts I to IV, along the OB/CB 18 clearly brought out. HU. PU's receipts and
with
payments plan
under
account wharear HU did so in parts I to 111 accounts. An analysis of the ratios of Nan-Plan accounts showed to PU.
that PU's share of grants from UCC was only 0.841 as compared 0.938 of HU. The University internal receipt was better in
~dministrative and accademic expenses were higher in HO. expense was proportionatly higher in BU but it was expense in PU. PU spent more on
higher
non-teacher
examination
students facility hut less on library. Under Plan Account, PU being a new University the on was for
for HU.
In the case of Earmarked Special Funds, HU was able pay than much towards scholarships and projects (ratios were
1
to
greater utilized
which
Rovever,
PU
better, the funds received for seminars. Under Debt and Deposit of accounts, the major component (0.537) in was higher
AU
1990-91.PP receipts ratio was also higher for HU,O.42O,which only 0.143 for PU. Payments of HBA to ABA Receipts, was
and
gone to buildings.
was 0.767 for PU and 0.387 for AU. higher 0.133 for for PU. PU
of PP Deposits to Current Liabilities was higher for HU than PO. The negative for PU ratio ratio of Net Working Capital to Total
(-
Assets The
was
negative in
1990-91. Unit in per student expenditures were less for PU than AU, departmental expenditure. For example, except unit Except were
values of fixed assets for PU sere far less than that HU. ln Equipment and Library the Average Fixed Assets values
higher for PU,because of acceleration in accumulating the assets, in its infant stage. Ratios have been evolved so that the Intra-University
Comp&rison of departments, as well as Inter-University Comparison of respective departments may be made. The ratio
of
Department same
1990-91 lower
ratio (number of students passed) was better for AU (0.955) PU it wrs (0.833).
Packape of
diagnostic
ratios
to picturise system
the
complete evolved.
financial This
bas been
package
coa~prriron like Inter-firm comparison of corporate bodies. four major accounts, ratios, parts I to I V have been analysed the
attempted.
fascinating findings and there is ample scope to evolve ratios at further micro levels as a separate study.