Thursday, October 16, 1969 ’ Maroon and Gold Page 3 Auditof SGAFunds Released Audit Expiamed To: Student Body, Elon College From: Special Committee on SGA Audit Re: Audit of SGA Finan cial Records In August, 1969, Dr. Danieley received a peti tion signed by more than 20 students requesting a complete report and audit of Student Government finances. A committee was appointed to make a study of the SGA records for the 1968-69 fiscal year and 1969-70 to date. The Executive Committee of the Board of Trustees agreed that the college would not participate in the collection of SGA fees until after the committee completed its work and a report was available which would answer stu dent questions regarding specific expenditures which had become the subject of gossip and ac cusation. Mr. Roy Apple, a lo cal Certified Public Ac countant, was hired to make an audit of the books. He submitted his report to the Committee on September 8. His statements showed the annual receipts and dis bursements insofar as the records and available in formation made such a presentation possible. He found that very few trea surer's reports had been made, or, if made, could not be located. The ones that were made available were informative only to a limited degree. There was no comparison with the budget; no year-to- year data; no regular ac countability for either re ceipt or disbursements of funds—either checking account funds or petty cash funds; no consisten cy of form or continuity of data; and no report of unpaid debts. He found that there was no orderly transfer of the trea surer’s responsibilities and records — the only recognizable step in such a transfer was the execu tion of a new signature card at the bank where the Association checking account was maintained. The poor quality of the basic record - keeping system contributed to the deficiencies. His report showed that funds collect ed by the SGA were held in the SGA office for an indefinite period of time — often without se curity, before being de posited in the bank. The Association received funds from other sources such as newspaper ads and sales of tickets to certain events which it sponsored. Those funds were accounted for in a manner just as inade quate as for student gov ernment fees. The funds lost their identity, in the present system, when they became intermingled with other funds. The basic monthly tel ephone cost was approx imately $40; the bills paid during the period of'Mr. Apple s examination of ten amounted to twice that amount because of long distance calls being made. Some effort had been made to identify the person making the toll calls and some collec tions had been obtained. None of the invoices or receipts presented to Mr. Apple gave evidence that the payment of the bill was authorized by the As sociation President. Mr. Apple stated that his examination was not made in accordance with generally accepted audit ing standards inasmuch as he used data of un certain reliability and which he was unable to verify satisfactorily. Based on Mr. Apple's report, the committee re commended on September 8 that the SGA fees be collected on registration day but that the money be held in a special deposit until the committee could complete its report and recommendations. Out standing bills on hand as Formalized Plan of Budget Personal Services: Salaries Formalized Plan of Budget (Candidates subject to Senate Approval) Supplies and Expense: Audit Concerts Dances Film Purchases and Rental Flowers Laundry and Dry Cleaning Maintenance Membership Printing and Stationery Publicity Receptions and Other Open Entertainment Remembrances Repairs Social Security Expense Speakers (Honoraria and Subsistence) Supplies and Other Expense (Non-personal and non-entertainment - closed) Telephone and Telegraph Travel - Buses Uniforms Restricted: Gifts (To be given only to speakers whose services are gratis) Entertainment - Closed Personal: Tux Rentals Equipment (President and Chairman may use discretion in transferring unused balances within this bracket of object classifications). (Increases subject to approval by Senate, only. President and Com mittee Chairman may transfer unexpended balances out to other Supplies and Expense and Equipment catagories.) The Committee recommends that the budget for the LIBERAL ARTS FORUM be as follows: liberal arts FORUM: Open Entertainment (Receptions — Available to all students) Spc^akers: Honoraria Hosting Expense: Local transportation (per mile basis) Student Chairman of the Liberal Arts Forum; faculty adviser of Liberal Arts Forum; speaker (and wife); representative from the appropriate de partment of the speaker's field Travel and Subsistence Restricted: Gifts (To be given only to speakers whose services are gratis) Entertainment - Closed -0- Personal: Tux Rentals -0- of September 5, however, were approved for pay ment. The Committee has fin alized its study. We are submitting for publication statements prepared by Mr. Roy Apple; a detailed list of expenditures for the fiscal year 1968-69 and a statement of reve nue and expenditures for the period May 7, 1969 to date prepared by the committee; and recom mendations for the im provement of the financial records and control of the SGA funds and for the ope rations of the SGA. These recommenda tions are made to promote operational efficiency, to improve the maintenace and control of SGA funds, to encourage adherence to prescribed policies, and to ensure the student that the SGA money will be handled properly in the future. Janie E. Council Chairman, Special Com mittee on SGA Audit Committee members: Cary Allred William E. Butler Morrow Miller Bill Walker Committee Recommendations The Committee recommends that — The Student Government Association hire the services of a Certified Public Accountant to set up an accounting system to be used by the SGA and to draw up proper procedures for the handling of SGA funds. This shall be the adopted system for the Association treasurers in future years. Included in this system it is recom mended that a Petty Cash Fund be established (not to exceed $100) to be used for small expenditures, this fund to be replenished when the supply of currency and coin get low. There should be co-signatures on all SGA checks— the treasurer should sign all checks and either the Pres ident or the Vice-President of the SGA be the co-signer. All official purchasing for committees should be done by the SGA treasurer. Class money (which was deposited with the SGA during the 1968-69 school year) be returned to each class treasurer and in the future be kept in the class treasury. The Coffee House and the Campus Crier have their own formalized budget. The chairman of each committee submit a monthly bill to the SGA treasurer for travel expense (allow ance of 8(5 per mile) The Business Manager of the Veritas school paper submit a monthly bill to the SGA treasurer for travel expenses (allowance of 80 per mile) Senate must approve all single expenditures ex ceeding $100. A midyear audit be taken at the end of the fall semester. The officers of the Student Government Association and appropriate personnel be bonded. RECOMMENDATIONS TO BE CONSIDERED FOR THE IMPROVEMENT OF THE OPERATIONS OF THE STU DENT GOVERNMENT ASSOCIATION: SGA have Extension 367 as the only existing operating telephone. This will eliminate illegal use of the tele phone. It will also save the Association approximately $450 a year in telephone service charges and a consid erable amount in personal long distance calls. The Student Government offices be used only for official student-business transactions. SGA purchase 100 folding chairs for Student Govern ment use - this will cut down on chair rental expense. All Student Government committees take advantage of the school services, such as: photography, campus bookstore, audio visual aids, etc. All SGA equipment used by any committee be check ed out at the beginning of the year and checked in at the end of the year. The SGA office secretary be paid on a monthly basis. Also a job description of the secretary's duties be drawn up. The secretary of the Honor Court be paid on a monthly basis. The outgoing SGA treasurer should act as ex-officio until graduation. Consolidation of the Liberal Arts Forum and the Lyceum Committees.

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