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.