rate position of treasurer. In some of them the activities performed consist of the receipt of all moneys collected by the business officer, their deposit in the bank, and the signing of all checks and vouchers. In other instances he is a local banker and only has custodianship of the institutional funds. One institution reports that the treasurer is a nonsalaried and nonresident officer. Members of the boards of trustees are treasurers in two universities. The State treasurer serves as institutional treasurer in the case of six universities, the business officer handling local financial affairs.

From the foregoing discussion of the duties and responsibilities connected with the financial and business functions of the landgrant institutions, it is evident that a fundamental principle that should be recognized by governing boards and chief executives is that there is a sharp line of demarcation between business and educational activities. The business officer should be responsible for the performance of the various business functions of the institution, including the collection, custodianship, and disbursement of funds; financial accounting; care of physical plant; purchasing; supervision of storerooms; management of dormitories and auxiliary enterprises. The educational organization should be responsible for the achievement of the academic and educational objectives of the institution.

It can not be too strongly emphasized that this principle applies to institutions of all sizes, degrees of complexity, and amounts of annual income. The ineffectual functioning of academic organizations, the inability of academic staffs to carry out their programs efficiently, and the difficulties encountered in the attainment of academic objectives may be traceable in part to failure to observe this principle.

A number of the land-grant colleges submitted charts of their business organizations. While the titles given the departments or subdivisions differ, the general plan is the same and illustrates the adoption of the principle of incorporating business and financial activities in a separate business organization instead of assigning them to independent organizations or to members of the educational organization. The business organization of Purdue University is divided into seven departments, which include accounting, finance, physical plant, purchase and stores, student organization finance, residence halls, and clerical and service personnel. In the case of the University of Wisconsin, the business organization consists of three departments-accounting, buildings and grounds, and purchasing-with subdivisions for dormitories and commons, student unions, loan and trust funds, general hospital, and other financial activities. Similarly, the University of Tennessee has a business

organization comprising four departments-one in charge of the bursar, a second in charge of the superintendent of buildings, a third in charge of the purchasing agent, and a fourth in charge of the auditor and accountant. While the University of Wyoming has a smaller business organization, consisting of but two departments of finance and physical properties, it handles all of the business and financial affairs of the institution, and the educational organization is a separate entity. There are a number of instances where the institutional business organization consists of a small centralized office in charge of a manager, who with the assistance of an accountant, a number of clerks, and a mechanical force not only handles all the financial and business activities but also the operations of the physical plant.

The business activities of the land-grant colleges have grown to enormous proportions during recent years. To perform them involves a vast amount of work in accounting, auditing, and payment of invoices. In order to obtain a conception of the volume of the business and financial operations of the institutions, data were collected in the survey on the various phases of the work for the fiscal year of 1928, which have been prepared in tabulated form and are presented in Table 2.

TABLE 2.-Volume of business and financial operations in the land-grant colleges

TABLE 2.-Volume of business and financial operations in the land-grant colleges-Continued

Although full returns were not received from all the universities and colleges, an excellent idea is provided in this table of the great volume of business handled.

The heavy responsibilities involved in the management of the business organization necessitate that the officer in charge be of unquestioned ability, and specially trained in business and financial administration. To obtain service of this type requires the payment of salaries commensurate with the complex duties, the large obligations, and the responsibilities of the office. This has been generally recognized in the land-grant institutions where effective. and well-functioning business organizations have been built up. In other colleges where the business organizations have been only partially segregated from the educational organizations, where bifurcated arrangements for handling financial and business affairs have been adopted, the salary is correspondingly small in amount. Table 3 shows the salaries paid the business officer, the officer serving under him in charge of funds or accounting, and the officer responsible for the purchasing.

TABLE 3.—Salaries of chief business officers, chief accountants, and purchasing

The salary paid the chief business officer in 28 of the 37 landgrant institutions reporting ranges from $4,000 to $10,000 annually. In these institutions the salary level compares very favorably with the remuneration of other administrative and educational officers. The institutions in which the salary range of the chief business officers is of a lower grade include in most instances those where the business organization does not handle all of the business and financial affairs.

The business officer receives compensation from $3.500 to $4,000 annually in 3 of these universities and colleges, from $3,000 to $3,500 in 2, from $2,500 to $3,000 in 3, and $2,400 in 1.

In the lower ranges the business officer is not paid much more than an assistant accountant or bookkeeper.

Where the administrative responsibilities and operation of the business organization are large the necessity arises for division into departments or branches, each in charge of a separate officer. One of the principal departments is that handling the funds, accounting, and auditing. The officer supervising such work is designated by various titles in the different institutions, such as bursar, treasurer, auditor, fiscal manager, or chief accountant. Substantial salaries are paid this officer in some of the larger universities.

In one institution the officer in charge of funds, auditing, and accounting receives $6,000 annually, in two others $5,000, and in two additional cases $4.500. At the remaining institutions his salary ranges from $4,000 down to $1,800. Another department or branch of the business organization has supervision of institutional purchasing, the officer in control being ordinarily designated as purchasing agent. The salaries paid this official in the 12 institutions submitting information range from $3,500 to $5,500.

The number of persons employed in the business office varies in accordance with the size of the institution. In the 40 institutions reporting, the total personnel is 402, omitting workers and mechanics in the purchasing and physical plant departments. The employees include assistant bursars, auditors, cashiers, secretaries, bookkeepers, accountants, statisticians, clerks, stenographers, typists, and telephone operators.

There are 5 institutions in which the personnel employed in the business offices consists of from 3 to 5 persons, 19 from 5 to 10, 7 from 10 to 15, 3 from 15 to 20, 3 from 20 to 25, 1 from 30 to 35, and 2 from 40 to 45. Compensation of the clerical and stenographic employees is on a fair scale, ranging from $1,200 to $1,800 annually. The lowest remuneration paid a full-time clerk in any of the institutions is $780 per year.

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