logo

Financial discipline in public universities

Thursday, 12 June 2008


The University Grants Commission (UGC) recently cautioned the public universities of the country against the way they are using their earnings from the admission tests. The cautionary letter, among other 13 points it dwelt on, has noted that the faculties of the universities use the incomes from the admission tests without any accountability. At the same time, it has asked some 26 public universities of the country to deposit 40 per cent of the incomes from their admission tests to their own coffers. The letter has also warned these universities against concealing information about their real incomes as well as recruitments made, promotions given and such other actions done without proper budgetary approval. In a similar vein, it has also advised them against providing subsidies to the teachers or any other staffs of the universities for their utilities bill and so on.

The warning to the public universities from the UGC lays bare some bitter truths about these highest institutions of learning of the country. Those are not just about the shortage of fund they are facing to conduct admission tests and other academic activities. There is also a shortage of internal discipline so far as the central authority of a university and its various faculties are concerned. In fact, the universities must have a set policy about the incomes earned from the admission tests or from other sources and their expenditures. As the Dean of the Social Sciences Faculty of the Dhaka University has said, conduct of the admission test itself would become impossible if the faculties have to deposit the UGC-directed amount to their institution's own coffer. In that case, what appropriate steps should be taken by the authorities of these universities? If, in absence of appropriate allocation from the central authority, the faculties are to manage the business of conducting admission tests and other such functions on their own and deposit whatever is left to the treasury, then the university authority should have a clear policy about that. The faculties would make their expenses according to that policy and not in an irregular fashion. The cautionary letter from the UGC speaks volumes for the fact that the universities concerned lack any clear policy in that regard. And the absence of such policy or system has given rise to a kind of ad hoc-ism in the administration. As a result, the central authority is gradually losing its financial grip on the faculties, which, on their part, are enjoying a kind of freedom. But the most worrying part of this freedom, or lack of accountability, if you will, may also lead to corruption. Unfortunately, it cannot be claimed that our educational institutions including those for higher learning are immune from this social scourge.

The focus of the UGC's warning letter, which has been issued ahead of the budget for 2008-09, has been on the inadequacy of the government fund allocated for these universities. If truth be told, with the increase in the number of public universities, the official grants for them are also shrinking in inverse proportion. Small wonder, the UGC chairman has been candid in his comment that in that case the universities will have to be on their own by reducing their dependency on the government for the fund.

According to reports, the Dhaka University in 2006-07 earned around Tk 30 million from the admission tests carried out under its different departments. But at the end of the day, the treasury received only 20 per cent of the earning. The records on expenditures made on account of the admission tests and other functions conducted by the faculties, if maintained systematically, could provide a clear picture to the authorities concerned on the issue. But if there is so such system in place, that must be introduced for the sake of financial transparency as well as accountability of the public universities of the country.