MANAGEMENT OF GENERAL ADMINISTRATION, FINANCES AND EXAMINATIONS
[Registrar . Financial Management. Endowment Fund. Examinations . Computers . Electronic Aids . Training]
Our stress in the whole of the report has been on decentralised management at the level of the Institute, Faculty, Department and College. It would be ideal if besides academic and financial decentralisation, there is a decentralisation of the evaluation process also, which perhaps may take time. Our recommendations in the following paragraphs are based on this approach.
2.1 MANAGEMENT OF GENERAL ADMINISTRATION Registrar, is Secretary of the Senate / Court, the Syndicate / Executive Council, the Academic Council and the Faculties and conducts the official correspondence of these bodies. He is the custodian of the records, the common seal and such other properties of the University as may be committed to his charge. He represents the University in suits and proceedings. He enjoys the powers of attorney and verifies pleadings by himself or by proxy. He has the power to take disciplinary action against the employees belonging to the ministerial staff and to suspend them pending enquiry, to administer warnings to them or to impose on them the penalty of censure or the with-holding of increments.
The Registrar's role includes tendering advice, conducting negotiations, effecting conciliation and managing crises. He has, besides a host of undefined roles. He negotiates with employees' associations and deals with demonstrations and other forms of agitation. He has to be available all the time to the Vice-Chancellor for consultation. As secretary of the University bodies and otherwise, the Registrar comes into continuous contact with the academic community.
We noted a wide diversity in the method of appointment of Registrars in the Universities. In a few cases, the Registrar was appointed from amongst the academic staff, typically from amongst the professors usually for a fixed term of about three years. In a number of causes, however, the Registrar was a member of the Indian or State Civil Service, [or a similar service), on secondment for a fixed period of two to four years, in the majority of Universities the appointment of the Registrar lies with the Executive Council/Syndicate an the recommendation of a Selection Committee, and in the rest with the Chancellor State Government.
180
We have recommended elsewhere that the post of Registrar should be filled up by the Executive Council on a five year tenure basis (which could co-terminus with that of the Vice- Chancellor] renewable for similar further terms at the discretion of the appointing authority. THE POSTS OF REGISTRAR AND CONTROLLER OF EXAMINATIONS ETC. MAY ALSO BE INTER-CHANGABLE. In fact, we have also recommended that the executive heads of administration of other functions such as Finance, Examinations etc., should also be designated as Registrars. REGISTRARS SHOULD BE ACADEMICS FROM UNIVERSITIES / COLLEGES, OR PERSONS IN COMPARABLE POSITIONS IN RESEARCH ESTABLISHMENTS AND OTHER INSTITUTIONS OF HIGHER EDUCATION.
The office of the Registrar is very important in a University. He is generally the executive head of the administration. At the same time, he is very much involved also in the non-administrative affairs of the University. In view of our thrust on decentralised management, we are of the view that:
[a] Registrar (Administration) should be the Secretary of the main Authorities of the University, viz. Executive Council/Syndicate, Academic Council as also of the Court/Senate. For other bodies like Faculties/ Boards of Studies, the Deputy or Assistant Registrar concerned should be the Secretary.
[b] While decentralisation, through delegation of resonpsibility and authority, is an ideal remedy to the ills of a centralised system, the process has to be watched with care. The first need is for the acceptance of the culture of decentralisation so as to achieve the objectives. Secondly, the system should be able to bear the new load and responsibilities. THIS HAS TO BE CONSTANTLY MONITORED BY THE REGISTRAR. The Registrar should watch whether there is any constraint wherever delegation has been made. If so, he should be able to remove the constraint. He should ensure that the basic purpose of delegation is served. He should also find out whether other facilties are necessary and when so found take steps to provide them.
[c] A mechanism should be evolved through which he is able to get the feed-back on the work of the staff deployed to provide services to the faculties, departments etc. Wherever and whenever deficiencies are revealed, he should provide guidance and help. In devising this mechanism it is necessary to ensure the involvement of the Deans/Heads.
12.2 FINANCIAL MANAGEMENT Some of our findings on financial management in the Universities are given below;
181
1. Financial Management in Universities is based on the old techniques and there is need to promote an awareness f modern financial management practices as they may be applicable in educational administration. The present financial management in Universities emphasises mainly on expenditure control through traditional budgeting techniques. Further there is lack of a well designed reporting and information system and financial management is not geared to help in planning, monitoring and control.
1. There is very -little meaningful financial analysis possible on the basis of information as presently available from the Universities. The available financial information does not reveal the health of the University. The information on some of the important aspects as indicated below is not readily available:
- How has the income of the University grown over the years?
- How has the expenditure grown over the years?
- How is the expenditure as compared to enrolment?
- What is the expenditure per student for the University and in different faculties?
- What are the sources of income of the University and how have these been changing?
- Can the University raise its income from any new sources?
- Are available resources being utilised most economically, effectively and efficiently ?
3. The modern concepts of budgeting which relate expenditure to the objectives of the University and its physical targets are lacking. The expenditure on various activities of the University appears to have out grown its resource base due to the lack of correlation between resources and expenditure.
4. The authority in matters of sanction and approval of expenditure is vested in the Vice-Chancellor/Executive Council, which is delegated to a limited extent to the Finance Officer. The Vice-Chancellor has numerous other duties, often demanding more time than financial matters.
5. In most of the Universities, there is lack of proper delegation of financial powers and there is very little accountability at different levels.
182
6. The internal audit is not functioning properly in many of the Universities. There are many procedural and other irregularities which can be detected by internal audit, like records not being maintained properly, physical verification of stock not being done, shortages not investigated, delays in implementation of schemes, purchases not made as per procedures, uneconomical working, cases of bad coordination etc. Internal audit can help in taking timely corrective steps. In Internal auditing there is over emphasis an petty matters, such as every voucher being signed by a Senior person (even if it is for one rupee or less], rather than his signing a consolidated statement, the individual voucher being signed by the Section officer or like official.
7. The quality of the staff in the Finance Wing and their attitude need to be improved considerably. At present, people are normally recruited as Junior Assistant-cum Typists and they keep on getting their promotion right up to the level of Section Officers. They generally lack proper financial training as well as knowledge of financial rules.
8. Most of the Universities have no Accounts Manual or Financial Code of their own. The distribution of financial powers is also not adequate.
WE RECOMMEND THAT:-
1. FINANCIAL ADMINISTRATION IN THE UNIVERSITY BE DECENTRALISED AND APPROPRIATE GUIDE-LINES BE WORKED OUT by each University with an over-all coordinating role of the Finance Officer or rather Registrar (Finance]
2. In view of the large magnitude and complexity of financial operations, there is need for a senior executive to assist the Vice-Chancellor in the discharge of his finance function. A NEW POST OF PRO-VICE-CHANCELLOR [FINANCE] BE CREATED UNDER THE VICE-CHANCELLOR, WITH ALL POWERS OF SANCTIONS AND AUTHORISATIONS [WITHIN THE APPROVED BUDGET] AS PROVIDED IN THE STATUTES OF THE UNIVERSITY. The Pro-Vice-Chancellor [Finance] could be appointed from amongst the senior teachers of the University familiar with finanical management, for a term of five years. THE FINANCE OFFICER SHOULD BE RE-DESIGNATED AS REGISTRAR [FINANCE]
3. There should be delegation of powers to sanction funds. Some suggestions are made below:
183
[a] SANCTION OUT OF APPROVED BUDGETS
Heads of Departments .. Salary [upto budgetted amount],
other expenses [upto Rs.5,000/-
on each item of expenditure]
Dean/Director/ .. Salary [upto budgetted amount),
Principal Other expenses [upto Rs.10,000/-
on each item of expenditure.
Committee of Depart- .. Over Rs.10,000/- and upto
ment Rs.25,000/- on each item of
expenditure.
Pro-Vice-Chancellor Over Rs.25,000/- and upto
[Finance] Rs.1,00,000/- on each item of
expenditure.
Vice-Chancellor* Rs.1,00,000/- and above.
Executive Council Full authority.
[b] REAPPROPRIATION WITHIN APPROVED BUDGET 1. The Heads of the Departments should have authority to to make re-appropriation from one head of expenditure to another, but within the budgetted limits, to the extent of 10% of the Department's Budget. In the case of the general Budget this power should vest in the Regisrar [Finance] or the Registrar, where there is no separate officer for Finance.
2. The Pro-Vice-Chancellor should have an authority to re-appropriate funds upto 20% of any section's Budget, on the recommendation of the concerned Departmental Committees or the Registrar (Finance) as the case may be. The Vice-Chancellor, on the recommendation of the Pro-Vice-Chancellor [Fiance) should have the full power to make any re-appropriation from one head to another of the approved budget. In the case of Departmental budgets these requests to the Pro- Vice-Chancellor for re-appropriations should be based on the recommendation of Departmental Committees and other committees such as the Building Committee or the Hostels Committee etc.
*Vice-Chancellor may incur full expenditure out of approved budget and report to the Executive Council.
184
3. Since the number of monetary transactions and the number of students and staff, as also activities, has grown considerably over the years, it will be necessary to introduce computers for proper accounting. This will also help in developing a proper information, monitroing and control system.
2.2.1 MAINTENANCE GRANTS TO UNIVERSITIES / COLLEGES
The maintenance grants to Universities and Colleges are provided by the State Governments / UGC as indicated below:
1. State Government to State Universities / Colleges;
2. UGC to Central Universities and Delhi Colleges. A few Delhi colleges are paid maintenance grants by Delhi Administration also.
We are of the view therefore that
[1] maintenance grants to Central Universities be paid by the Government of India.;
[2] maintenance grants to Delhi Colleges be paid by the Delhi Administration like other State Governments.
[3] Block grants should be fixed for every State Universities in consultation with the State Council for Higher Education and for every Central University in consultation with the Council of Central Universities
[4] The quantum of annual maintenance Grants should be reviewed every three years as recommended in Chapter 6.
12.2.2 ENDOWMENTS FUNDS When Universities were established in the 17th and 18th Century in United States of America and in other western world countries, religious mutts and temples provided lands, for their maintenance and functioning. It was a time when lands were plenty and the national income largely depended on land revenues. However, when new Universities were established in later periods after the industrial establishments had begun to contribute to the national wealth, or whenever supplements were needed to the land grant institutions, irrevocable money grants or what is generally called ENDOWMENTS from either the government or from the society substituted the land grants. Even to-day', several industrial groups and trusts contribute a portion of their profits as endowments to institutions of higher learning. These endowments are invested by the Board of Management or kept in fixed deposits and the dividend or the interest is used as recurring source of income for running the universities. This plus the tuition and other fees contribute the bulk of the revenues of the universities with
185
marginal developmental support from the state or federal governments.
In our country, the universities are even to-day sustained by the annual grants from the state or central governments for their routine maintenance and functioning. Academic fees or other resources are very limited and consequently, the universities have become highly dependent on the government for grants leading to their interference.
Many developmental activities, conceived and supported by the UGC or the respective governments, languish after their initial support is stopped for want of recurring resources to run the actitivity.
The alternative suggestion would be that either the federal or the State agencies give as irrevocable endowments which can be used as a corpus fund, either for a whole programme or for a chair or for a research facility instead of grants, and thereby the need for recurring grants for maintenance expenses can be minimized. The industrial establishments and other public philanthrophists could also be encouraged to supplement this type of endowments through appropriate tax incentives.
It is true that the amount required for such endowment to cover all the needs of an institution will be about 10 times the annual grant, but this amount can be built over the years by the institutions. For example a Rs. 10 crore endowment once given, will bring a revenue of at least one crore of rupees every year which will be equal to annual maintenance grants given to many small universities by the state governments. The public, government, industrial establishments should be enlightened and encouraged to contribute such irrevocable support as corpus grant.
We suggest that:
1. All grants for new proposals and all additions to existing grants be in the form of endowments.;
2. One-tenth of the existing maintenance grant be converted every year into an endowment by allocating 10 times of that amount.
To illustrate, we take an example of a University with a block grant of Rs.10 Crores a year and to which Rs. 1 Crore is added every year.
In the first year, BESIDES THE BLOCK GRANT OF RS. 10 CRORES, AN ENDOWMENT GRANT EQUAL TO RS.10 CRORES BE CREATED TO TAKE CARE OF ANNUAL INCREASES i.e., A GRANT OF RS.20 CRORES BE MADE. In the second year, ANOTHER RS.10 CRORES BE GIVEN AS ENDOWMENT GRANT AND RS. 9 CRORES AS BLOCK GRANT [i.e. A TOTAL OF RS.,29 CRORES]. The University will now have an
186
endowment of Rs. 30 Crores and an annual revenue of Rs. 12 Crores [Rs. 9 Crores Block grant and Rs. 3 Crores income from investment of endowment]. In the third year onwards, THE BLOCK GRANT WILL BE PROGRESSIVELY REDUCED BY RUPEES ONE CRORE AND THE ENDOWMENT GRANT WOULD CONTINUE TO BE RS.20 CRORES
After 10 years, THE BLOCK GRANT WOULD DISAPPER AND THE ENDOWMENT GRANT WILL BE RS.20 CRORES. Under the present system, this University would have been given Rs. 21 Crores as block grant in the eleventh year, whereas under the proposed system a total of Rs. 20 Crores only need be given as endowment grant. From the 12th year onwards ONLY RS. 10 CRORES A YEAR NEED BE GIVEN AS AN ENDOWMENT GRANT TO COVER THE INCREMENTAL NEED OF RS. i CRORES A YEAR In the first 10 years, Rs. 245 Crores would be granted under the proposed system as against Rs. 155 Crores in the current system. Out of these, Rs.190 Crores would be there with the university as an Endowment Fund.
AFTER 15 YEARS, THE CUMULATIVE TOTAL GRANTS WOULD BE RS. 305 CRORES IN THE PROPOSED SYSTEM AS COMPARED TO RS. 270 CRORES IN THE CURRENT SYSTEM It would be noticed that the difference has narrowed down from Rs. 90 Crores at the end of 10 years to Rs. 35 crores at the end of 15 years. It will remain only Rs. 2 Crores in the 17th year and from 15th years onwards the cumulative total will be lesser and lesser.
AT THE END OF 20 YEARS RS. 410 CRORES WOULD HAVE BEEN SHELLED OUT UNDER THE PRESENT SYSTEM WHEREAS ONLY RS. 355 CRORES WOULD BE THE OUTFLOW FROM STATE REVENUE UNDER THE PROPOSED SYSTEM. AND OUT OF THIS RS. 355 CRORES RS. 300 CRORES WOULD BE THERE INTACT, IN THE UNIDERISITY EDNOWMENT FUND. The details can be seen in the *Table appended to this chapter (Appendix 12).
The problem of finding funds for such endowment grants should not be very difficult, because the endowment grants could be from the captial budget. The University's endowment would be invested in government securities; and public sector bonds, Mutual Funds etc and thus, the money would flow back to the Government / public undertakings in the form of subscription to securities.
Those universities which make their investment job more efficient, could earn more than 10% on their investment and the additional revenues would be available to meet their new requirements for which they would not even have to approach the Government. To the extent, that the university is able to raise endowments from other sources, their dependence on government would be further reduced.
187
12.2.3 FINANCE OFFICER There is a growing tendency of governments sending Finance Officers to Universities on deputation from Government Departments. These persons being external to the system, do not normally fit academically into the University ethos and this creates problems. In our opinion, Universities should appoint their own Registrar (Finance] or Finance Officer, may be on tenure basis. Such persons should basically be academics trained in financial management. We have elsewhere recommended that the Officer responsible for management of finances should be designated as Registrar (Finance). That would help in bringing in this reform expeditiously.
12.3 MANAGEMENT OF EXAMINATIONS We have earlier recommended the creation of a position of Dean of Evaluation. We recommend that each University should have an Evaluation Board headed by the Dean (Evaluation] to ensure that Examinations are conducted as per schedule; and that the University makes conscious efforts to introduce programmes of Examination reforms as recommended by the UGC. The Controller of Examinations should be re-designated as Registrar (Examinations].
We also recommend that effective use of computers be made in the Examination work.
12.4 GRIEVANCE REDRESSAL MACHINERY We have noted that Universities have either no grievance removing machinery or totally inadequate and ineffective machinery with the result that individual as well as group grievances have remained unattended to for long periods leading to frustration, altercation and even indiscipline.
The grievances could be from:
[1] Students, teachers and other employees on individual basis;
[2] Grievances of Groups of either of Teachers, or other Employees or of Student; and
[3] Grievances relating to service conditions of employees.
We recommend that grievances must be settled early and that every University should clearly define the time limits within which responses to the grievances are to be given to the concerned person[s] / groups.
We also recommend the following machinery to promote the process of settlment of grievances;
188
12.4.1 FOR INDIVIDUAL COMPLAINTS: [1] Every University should appoint a very senior officer of very high credibility, who has held senior administrative, academic or legal positions and who will have no other responsibility in the University except to speedily examine the grievances etc. in detail. His appointment should be made by the Visitor out of a panel of names suggested by the Vice-Chancellor. His appointment should be co-terminus with that of the Vice- Chancellor and he should enjoy a status equivalent to that of Pro-Vice-Chancellor. He should have a right to call for any papers. He may require, and could, if he so considers necessary associate senior academics with his work with the Vice-Chancellor's permission. Such an officer would be able to make recommendations personally to the Vice-Chancellor for his consideration and where necessary for the consideration of the Academic or the Executive Council. He should not, however, review the decisions taken by a University body. This recommendation has also been made by the Review Committee of the UGC on Central Universities.
[2] Any dispute arising out of a contract between the University and any of the employees may, at the request of the employee, be referred to a Tribunal of Arbitration consisting of one member appointed by the Executive Council, one member nominated by the employee concerned and an umpire appointed by the Visitor. The decision of the Tribunal of Arbitration should be final and no suit should lie in any civil court in respect of the matters decided by the tribunals. It is hoped that this procedure will reduce the number of cases going to the courts.
12.4.2 FOR GENERAL GRIEVANCES OF
STUDENTS/TEACHERS/NON-TEACHERS [1] There should be a Joint Consultative Committee [JCC] of the students, teachers and non-teaching staff for redressal of the grievances of students, teachers and non-teaching staff etc. Such Committee be appropriately constituted and presided over and resolve issues in a time frame as laid down by the Universities.
[2] There should be a separate consultative machinery at the University and College levels.
[3] Some grievances such as those relating to service condidtions of employees may not be resolved at the JCC level as they would have repercussion on other Universities in the State. Such issues be thrashed out at the level of State Council of Higher Education or in the joint meetings of the Vice-Chancellors of
189
the Universities of the State or in the meetings of the Vice-Chancellors of the Central Universities in the case of such Universities. It is important that representatives of the Government are present in the meetings when discussions relating to service conditions i.e. pay-scales, promotional avenues etc., are discussed.
[4] In addition there should be a Standing Tribunal in the University or group of Universities of the State, perferably a statutory, body headed by a retired judge of the High Court who is assisted by academics such as Professors, Principals and educationists. All unresolved matters of dispute between the University and teachers / non-teachers / students be referred to this Tribunal. A convention should be established that the verdict of the Tribunal is accepted by all concerned and that the concerned parties will not futher move the court of law.
In this connection it may be noted that in the Bombay University Act, 1974 there is a provision for constitution of College Tribunals for adjudication of certain disputes or difference between employees and management in private affiliated colleges and recognised institutions. it provides that for the purposes of admission, hearing and disposal of appeals, the Tribunal shall have the same powers as are vested in an Appellate Court under the Code of Civil Procedure; the decision of the Tribunal shall be final and binding and a penalty will be imposed on the management for failure to comply with Tribunal's direction [vide Bombay University Act, 1974, Ch.Vi Sec.42-A]. There is a similar machinery [Tribunal of Arbitration ] provided for in U.P State Universities Act.
In view of the above grievance redressal machinery, the present position obtaining in many universities regarding the Chancellor's office acting as the Appellate disposer of petitions emerging from the University employees may be dispensed with.
12.5 USE OF COMPUTERS With the tremendous rise in student strength, for maintaining high level of service to the student community in registration, issuing certificates, keeping their records updated, prompt publication of results etc., a University or any institution providing education in various disciplines and engaged with scientific research definitely needs computers.
Computers can be profitably used in the following administrative areas in the Universities;
Examination planning and Result Processing.
190
Preparation of Examiners Panels and Appointments of Examiners.
Salary-bill processing.
Financial Accounting.
Academic / Non-Academic staff data bate.
Library Service.
Estate Management.
Reporting and Control.
Computers have been used in some Universities since long for examination processing. However, they can be effectively used for maintaining academic / non-academic staff data bases, library automation and Estate Management. Resources permitting, the data of all books and periodicals can be computerised to prepare synopses subjectwise, title-Wise, author-wise which can help research students to find adequate and appropriate reference.
12.5.1 SUPPORT SYSTEM FOR CHIEF FUNCTIONARIES As information related to several segments of University activities,including Human Resource Development often becomes voluminous, modernisation of information storage and retrieval should be resorted to on a war footing. The Chief functionaries of the University, i.e. Vice-Chancellor, Fro- Vice-Chancellor, Registrar,[Administration, Finance and Evaluation] must have Electronic Data Processing facility with terminals linking all of them'. with the Deans, Principals, Heads of Departments etc.
12.6 PROFESSIONAL ACADEMIC MANAGEMENT The essence of academic management consists in debureaucratisation of the administrative machinery in the University System and making it dynamic and responive to the emerging academic goals and functions, The administrators, right from the Registrar down to the Office Assistant, must realise that they are there to assist, help and promote the academic work in the campus rather than to supervise, regulate and monitor the academic job. The administrative procedures must be made flexible enough to facilitate appropriate and expeditious decisions on academic issues depending upon the special requirements of the situation on band. Unfortunately, in the present system, the academics are, by and large, at the mercy of the administrative personnel who have little or no academic orientation in their outlook or practice. On many occasions, even marginally innovative measures suggested by the academics are effectively scuttled by the bureaucratic administrators
191
who refuse to be convinced unless there are identical precedents. Paradoxically enough, the infusion of some personnel with academic background into the supervisory cadres of the administrative machinery [say Registrar, Controller] has not resulted in any perceptible success; either these erstwhile academics in their new-found administrative positions quickly learn to be as bureaucratic as others or they are unable to cut any ice in the context of a very reluctant and large suborinate cadre. Thus the outlook of the personnel, the style of administration, the gambit of rules and regulation and, in short, the very decision making and implementing process needs a thorough overhauling.
As a possible way of remedying the situation the Committee recommends the following specific measures:
[a] A well-trained professional cadre of educational administrators be created. These personnel must be carefully chosen and intensively trained in the nuances of educational administration. Experience in teaching and research can be counted as desirable requirements for recuritment to this cadre;
[b] Education Management should be developed as an academic programme on a sound footing, at the Post- Graduate / research levels by the Universities, IIM, NIEPA and other organisations.
[c] The Educational administrators [Principals of Colleges, Deans, Departmental Schools Heads, Registrars and other administrators] of Universities may be
required to undergo periodical training / refresher courses conducted by Selected University Management Departments and professional Management Institutes so that they may become well-versed in the art of educational management and administration;
[d] The Finanical administration of the University system may have to be revamped on the lines of more efficient financial management of the corporate sector. The present system of "Government-Style" of funds administration [including deputation of Finanical Officer from Government] should be dispensed with. Well-qualified academics may be inducted and given intensive training in Financial management.
(e) As far as possible, the day-to-day administration at the Departmental / School level should be left to the purview of the academic heads, with least interference from the administrators.
Decentralisation, professionally coupled with effective Departmental autonomy, will go a long way in debu- reaucratisation of the system as a whole.
192
ACADEMIC STAFF Group "A" Officers working in Instrumentation Centres,[USIC], Computer Centres, Museums, Libraries, ParaMedical Staff, Editors of Publications and Directors of Adult and Continuing Education etc. should be treated as Academic Staff [Non- vacation). They should have pay-scales etc. on par with those of University teachers and whenever any benefits are given to teachers they should automatically get them from the same date as those for teachers. Such staff should however, have different work load/working hours as compared to those of teachers.
193
