If we believe in the value of poetry, we will spend money on poets, poetry books, and poetry classes. If we spend no money on poetry, then we do not value poetry. If we believe in the value of science, we will hire faculty, purchase equipment, and buy buildings. Public universities live in over-regulated environments and earn income from many different sources, each with its own requirements and accounting rules. Our official accounts rarely help us understand what we do with our money.
Universities do fund accounting.
Money comes into a fund for pencils. We buy pencils. At the end of the year, the auditors check to see if we spent the fund's money on pencils. If we did, we get a star for being good stewards. No one asks if we needed the pencils.