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University 2500,000 for a period of twenty-one years; and a sinking fund was instituted whereunder $12,500 a year was to be set aside to repay the loan at the expiration of the above period, which payments duly appear for the last five years in
the accounts. But we find that in fact these are mere book
entries, and that there is no actual fund whatever in exigena
We are of opinion, generally, that the Council has
failed to recognise its statutory duty and responsibility as regards finance.
Furthermore we find that Balance Sheets have not
been regularly and properly issued. In particular, at the close of the two financial years 1916-7 and 1917-8 the Balance Sheets prepared by the auditors and forwarded by then to the University authorities were not printed and issued by the latter in the usual way, and were not laid before the Council or Court; and in September, 1918, when steps were taken to prepare a Balance Sheet for the preceding year, the books were discovered to be several months in arrear.
However a new system of accounts has recently been established, Messrs. Smith, Seth & Fleming, Chartered Accountants, now attending at the University once a month to go through the books and vouchers, and to supervise the keep- ing of the accounts. And in June, 1919, the necessary change was made of appointing a permanent whole-time Registrer, in place of the previous temporary part-time men, of whom five had acted successively during the preceding year. Under these improved conditions, we think the arrangements for keeping the books are now satisfactory.
Dr. Jordan has drawn our attention to a speech made on the 22nd September last by the Hon. Mr. Severn, when Officer Administering the Goverment; wherein he referred to the expenditure to which the University was committed as. involving a capital deficit of $1,500,000; and stated that
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