lowing types of cases: (1) cases in which a deficit is threatened or has actually been incurred; (2) cases in which the expenditure appears not to fall within the appropriation intended to be used; (3) cases in which the expenditure seems to be inexpedient, either because excessive for the purpose proposed, or because the purpose is thought relatively unimportant.

The necessity for the Committee on Expenditures to make decisions of this sort is infrequent because of the common understanding and loyal observance of the proper limits of departmental expense. Yet this function is called into play from time to time and constitutes an essential element in the system of financial control. It is, of course, authoritative in view of the official position of those who compose the committee. It is the counterpart in the University of the power of the Illinois Director of Finance to question the wisdom or expediency of a given expenditure.

It should be observed, however, that on the one hand there is likely to exist a much closer harmony of views between the University Committee on Expenditures and the University departments than on the other hand is normally to be expected between a state director of finance and the directors of other state departments. The sense of unity which prevails in the University, the security of tenure, and the absence of political influences and interests all suffice to create a substantially different atmosphere. But the underlying theory of control seems to be much the same.

CENTRALIZED PURCHASING

Since 1913 the University has had a central purchasing system which handles practically all University purchases except food.43

When any department needs materials, the Head of the Department sends to the Purchasing Agent a requisition in triplicate. The Purchasing Agent fills in the estimated amount, certifies all three copies, and sends them to the Committee on Expenditures.

The Purchasing Agent, acting for the Committee on Expenditures, personally investigates all requests for materials which are not strictly routine, and endorses on the requisition a statement concerning the necessity or desirability of the proposed expense. If the Committee on Expenditures should for any reason refuse to approve a requisition, the Department Head could, if he desired, present his case to the Committee, either in writing or in person.

In theory, all requisitions are held until the weekly meeting of the Committee. Actually, the great bulk of requisitions are passed by the

43 This statement is taken from a volume written by the University Purchasing Agent, Mr. John C. Dinsmore, Purchasing Principles and Practices, pp. 98 ff.

Auditor and the Secretary of the Board of Trustees acting for the Committee on Expenditures. When a given requisition has been approved by the Committee on Expenditures each of the three copies is numbered, and the estimated amount of the requisition is entered as a memorandum charge against the funds which have been set aside for the use of that particular department.

In this way the departmental appropriation is mortgaged for the estimated amount of the purchase, or other expenditure, before the expense is incurred. The original copy of the requisition is retained by the Auditor, the duplicate goes to the Purchasing Agent as his authority to incur the expense, and the triplicate copy goes to the Department Head.

Theoretically, the receipt of the duplicate copy of the requisition by the Purchasing Agent is equivalent to the notification that he has at his disposal the amount of money specified for the use of that particular department, but for the purpose specified, and for no other. Any unused balances must be cancelled. If the Purchasing Agent receives an approved requisition authorizing him to buy a new steam sterilizer for $300, and he succeeds in purchasing one for $250 he cannot use the $50 saved for the purchase of a media rack. The other $50 must be cancelled, and the requisition must be included in his next monthly statement to the Auditor of requisitions to be cancelled.

As a matter of fact, all routine purchases are covered by blanket requisitions, drawn for the purchase of "miscellaneous items" up to a given amount. All petty cash disbursements are covered by special requisitions, as are all materials drawn from the various store-rooms.

After the Purchasing Agent has received the approved requisition, the purchasing routine is not very different from that in any business concern, with the single exception that, when a purchase order is issued against a requisition, the number of the purchase order is noted on the face of the requisition, together with the amount of the purchase. In this way the appropriation is mortgaged by the requisition when the Committee authorizes the purchase, and the requisition is mortgaged when the purchase order is issued. Thus it is impossible for any department to spend more than the sum set aside for its requirements. When materials are purchased for stock, they are purchased without the specific approval of the Committee on Expenditures, and the amounts and the times of purchase are controlled by the Purchasing Agent in consultation with the storekeepers. When this material is drawn out by the various departments, it at once becomes a charge against a requisition. The only limitation on purchases for stock is the total amount of the investment, which is fixed by the Board of Trustees.

Inquiry among the departments requiring purchase of scientific apparatus or materials indicates that, while they have had occasional difficulties in securing the quality of goods which was necessary, they now indicate the brand they desire, or the firm from which they wish. the purchase to be made, and thus obviate any difficulty. A cordial desire to cooperate is found on both sides, and central purchasing is approved by all concerned.

PRINTING AND PUBLICATION

No department has a printing and publication fund supported from the general University funds. All printing and publication is done through the University Press, subject to the approval of the Committee on Expenditures.

The departments do not require as large amounts of printing as are required by the agencies of state government. The results of most of their research experiments are reported and published in the many professional journals of the United States. Other research projects are published by special grants from various endowments. Still others are published by virtue of cooperative agreement with various organizations on whose behalf the research was undertaken.

The University makes a direct contribution to the publication of the writings of its members by granting subsidies to a number of professional journals which otherwise would be unable to continue publication. Among these journals are the Astrophysical Journal; Botanical Gazette; Journal of Geology; Classical Philology; Modern Philology; American Journal of Semitic Languages and Literature; American Journal of Sociology; American Journal of Political Economy; and the Journal of Religion. The total subsidy for these journals for 1921-22 was $23,046.

These sums are not handled departmentally, however, but as a part of the program of the university. The financial policy of the journals comes under the same scrutiny as any other expenditure, and is subject to the supervision of the Committee on Expenditures.

Monographs and books written by members of the University are handled by the Press on a commercial basis, exactly as would be done by any other publishing house. Doctoral dissertations were formerly required to be published at the cost of the author, but at the present time the University bears the cost of publication of an annual volume carrying summaries of these contributions.

Special publications for which a university appropriation is requested, such as the recent report of the Commission on the future Policy of the University Libraries, are considered by the Committee on Expenditures. The determination of the number of volumes to be

printed in an edition, the weight and firmness of paper, the make-up of the book are determined in all cases of University publication first by the Committee on the Press, and are then approved by the Committee on Expenditures.

The individual department or school, therefore, has no authority to order printing, except as small amounts may be charged to the departmental funds held for miscellaneous supplies. All printing is handled through the Committee on Expenditures and the Press Committee.

THE CONTROL OF TRAVEL

Allowances for travel are controlled by the President of the University. The departments as such have no travel funds. Requests for travel are made to the President who grants such allowances as are desirable in view of the purpose for which the money is requested. No restrictions are put upon the amount of per diem expense, although naturally members of the Faculties are expected to use the money of the University with care. A report is made to the Auditor showing expenses incurred on travel allowed by the President. There are, of course, no special restrictions on travel outside of the state. The University does not make it a practice to pay expenses of its members to attend professional conventions. Some universities, however, maintain limited funds for that purpose.

SUMMARY

The main outlines of central control of expenditures in the University of Chicago bear a striking resemblance to the system found in Illinois and in Ohio. In the University is to be found, in addition to the audit of expenditures, central budget-making, authoritative review of proposals for expenditure, centralized purchasing, centralized printing, a centrally controlled contingent fund, and central control of expenditures for travel. In order to avoid deficits and ensure the wisest possible use of its funds the University has developed an administrative control which is potentially as complete as that met with in state government.

Yet, as has already been noted, the conditions under which this control operates are in many ways different from the conditions frequently found in public affairs. The University of Chicago has no formal duties of a public character to perform. It has no connection with the course of politics. Its general purpose is clearly defined in terms which command universal agreement. Its appointments are made solely on the basis of capacity and merit and are permanent in so far as the higher appointments are concerned. The administrative

officers are in thorough sympathy with the desires of the research departments and seek to afford the widest possible opportunity for the research workers to accomplish their tasks. Physically the University is a closely knit unit. Conference between its different officers is easy and natural as compared with the difficulties which surround conference between state officials scattered over a wide area and seldom coming in personal contact with each other. Personal friendships rapidly develop, and in turn lead to a better understanding of the relative duties of administrative and educational officers.

These conditions allow a system of financial control to operate with much greater success in the one case than in the other, and the writer does not wish to be understood as asserting that because the University plan operates successfully within the confines of the Quadrangles, therefore it is justified in the wider range of activities of a state government. It remains, however, of interest and of some significance that the two systems resemble each other to such an extent as the preceding pages reveal.