$ 1,600.00 1,100.00

The investigation of the reports and doings of officers of the State University required by sections 51, 52 and 53 of chapter 118 of the Acts of the Twenty seventh General Assembly, was made on the 26th, 27th and 28th days of September, A. D. 1901, by a personal inspection at the university and by other examinations subsequently made.

THE SECRETARY'S BOOKS AND ACCOUNTS.

The books of the secretary were found to be kept in a most careful and painstaking manner. The chief objection which can be made in this connection is that the system of bookkeeping followed is old and cumbersome, requiring much unnecessary labor. A more condensed and modern system should be adopted.

Since the investigation made by this board in December, A. D. 1899, the duties of the secretary have been so changed that he does not now receive money paid for tuition, but he receives each week money collected by the two hospitals carried on in connection with the university.

The practice referred to and critcised in our last report of the payment by the secretary of railway expense, telegraph and other bills before they are audited by the executive committee, is still followed to some extent, although it is claimed that the money is a vanced by the secretary from his own funds. We do not think this practice can be approved. The temptation to approve bills paid by the secretary rather than to permit him to suffer loss, even though the bills would not be approved if unpaid, might be so persuasive as to affect the judgment of the committee. The committee should be free to exercise its best judgment in passing upon every claim presented to it, uninfluenced by considerations of friendship or sympathy.

The account books of the secretary were examined and checked and found to be correct. They show, however, that on the 30th day of June, A. D. 1901, the repair and contingent fund had been overdrawn to the amount of $807.10, and the building tax fund to the amount of $37,097.94, making the total of debtor balance $37.905.04. Under ordinary conditions the overdrawing of funds. is not advisable, even though not prohibited by statute, but the appropriation for university building purposes is in the form of a tax and the authorized amount was not exceeded by the warrants drawn. The needs of the university for additional room were great and much increased by the destruction of buildings by fire in March, A. D., 1901. The overdrafts were necessary to complete the new building for use in September, A. D. 1901, and under these conditions we do not criticise the overdrafts on the building fund. We are not advised of facts which justified the overdrawing of the repair and contingent fund.

In addition to other duties, the secretary is required to purchase many of the supplies for the various departments of the university, and to make contracts for printing and binding. So far as could be ascertained, purchases were made and contracts were awarded on competitive bids, and to the advantage of the university.

THE TREASURER'S BOOKS AND ACCOUNTS.

The treasurer now keeps a separate account with each fund of

the university of which he has charge, and all funds are accounted for properly. The permanent fund of the university is well invested, as is also the A. Whitney Carr free scholarship fund. All appropriations have been drawn from the state treasury according to law.

EXECUTIVE AND BUILDING COMMITTEES.

Section 2642 of the code provides for the appointment of an executive committee which is required to "audit all claims against the university." It is the duty of the chairman of the committee to draw orders upon the treasurer for all claims allowed. The committee is not given any other power by statute. A building committee is appointed which has sometimes consisted of the regents who constituted the executive committee and has sometimes included other regents.

These two committees seem to meet together habitually and the proceedings of each committee are set out in a common record which rarely shows what committee took the action set out, but the record justifies the conclusion that in most cases the committees acted together as one.

It appears that these committees have acted for the board of regents in numerous business transactions involving large amounts of money and matters of great importance. Among the items of business so transacted were the following: The awarding of contracts for printing and binding for calendars and announcements and for blanks; authorizing the importation of chemicals; the purchase of hospital supplies, and of coal, and the improvement of the athletic grounds; the directing of the treasurer to satisfy a mortgage; the employment of an instructor for the summer session, and the fixing of salary and expenses and tuition; the appointing of a hospital superintendent pro tem, and a commander of the battalion; the increasing of salaries of instructors, previously fixed; the granting of leave of absence to a professor and the librarian; the directing of the refunding of tuition fees, and the suspension of delinquent students, and the authorizing of expenditures in excess of the amounts appropriated therefor by the board of regents.

We do not find that authority was given by the board of regents in most of these cases to perform the acts specified, and are informed by the secretary that there is no general authority of record for the committee to transact such business.

We are of the opinion that it would help to expedite the