Long IRS Audit Gould Cost University Millions
■ Audits at other public
universities have brought
bills of up to $Bl million.
BY JOHN SWEENEY
Members of the IRS are set to arrive in
the southern part ofheaven later this month
to begin a comprehensive audit of the
University’s finances that could end up
costing the University millions in back
A Roundtable Discussion
c We L
In light of recent charges of anti-Semitic speech at UNC, as well
as other events and attitudes that have created what some
consider to be an intimidating atmosphere, 30 concerned
members of the University community met Friday at the Sonja H.
Stone Black Cultural Center to discuss hate speech, hate crimes
and their effects on the campus and on society as a whole. BCC
Director Gerald Horne moderated the discussion, sponsored by
The Daily Tar Heel. Because tight
space in the newspaper imposes
limits on the lengths of pub
lished articles, what follows is a
heavily edited transcript of the
taped 90-minute discussion.
Home: What is hate speech?
What are hate crimes?
Lucy Lewis, director of Or
ange County’s department for
human rights and relations:
Some of you may be aware that
the county has an ordinance that
provides a process for prohibit
ing discrimination in employ
ment and housing. There is also
a direct area of hate crime and
hate speech. The ordinancecame
out of hearings that were held
Law Not Vague
■ The N.C. attorney general
said the open-container law
did not need to be rewritten.
BY WENDY GOODMAN
State officials on Friday supported
Chapel Hill’s open-container ordinance,
saying the law was not vague after town
attorneys requested help in determining its
“Based upon a careful review of the
relevant statutes and case law, it is our
opinion that this ordinance is not fatally
vague," the attorney general office’s letter
A Chapel Hill District Court threw out
several open-container cases beginning in
February because the judge said the law
was unenforceable. Police continued to
enforce the law, but the court continued to
dismiss cases. Because of the contradic
tion, town attorneys asked the state attor
ney general for an opinion about the law’s
“After the judge’s ruling, we had a dis
cussion whether to change the ordinance.
The police attorney and I didn’t think the
See ORDINANCE, Page 2
®l]p Daily ®ar BpH
A writer and lawyer said
gays and lesbians are more
visible, but stereotypes still
prevail. Page 5
Chancellor Michael Hooker, speaking
to members of the Faculty Council at their
Friday meeting, said he believed the audit
could eventually cost the University any
where from $1 million to $1.5 million and
could take as long as 3 years.
Hooker also said members of the Uni
versity community should be relieved that
the audit was occurring now instead of five
years down the road, when the cost could
be even greater, since the amounts of the
bills universities were being handed had
been steadily growing since the audits
_ , _ , _ . . DTH/IASON KIRK
Student Body President-Elect Aaron Nelson (left) speaks as
Carolina Review Publisher Charlton Allen waits to respond.
Mj I- ‘ M I
Mario Hernandez performs traditional dances at the Carolina Indian Circle Pow Wow on Saturday.
Hernandez has been dancing since he was two years old.
Every man is a damn fool for at least five minutes every day.
Some students were
unable to register through
Caroline's new 800 line
this weekend. Page 3
Vice Chancellor for Business and Fi
nance Wayne Jones said Sunday that the
IRS’s choice of UNC for an audit was part
of a larger trend. “UNC was chosen be
cause we’re a major research university,
and the IRS appears to be targeting large
research institutions,” Jones said.
Jones said he was notified of the audit in
He said the auditors would have full
access to the University’s financial records,
and the University would be required to
provide office space for the auditors, either
on or off campus.
„ T ,-
o uII DTH/IASON KIRK
herald Horne (bottom, second from left) mediates a panel discussion in the BCC about hate speech Friday afternoon.
when the County Board for Discrimination and a number of
people talked about the area ofhate speech. Some federal and state
laws protect people from discrimination based on age, sex, race,
Lt. Clay Williams, University Police: In law enforcement,
hate crime can describe instances of violence or crime perpetrated
Circle of Power
According to Jones, it is the first time
the IRS has done a comprehensive audit of
UNC. “I don’t think the IRS has done this
kind of thing at all until the last four or five
years,” Jones said.
The audits began in 1991 under the
auspices of the IRS’s “Coordinated Ex
amination Program, ” which examined re
search hospitals and other non-profit medi
cal research facilities. The program soon
extended to universities, most of which
had research hospitals of their own.
For the past four years, large state uni
versities like the University of Michigan
against persons, groups or their
property solely because of then
race, religion, national origin
or sexual orientation. In the re
cent crime that we had in the
Undergraduate Library and at
Walter Davis Graduate library,
we had a vandalism of a very
offensive symbol that was tar
geted toward members of our
community. Right now, we
would have to classify that as a
suspected hate crime until we
can determine the motivation
of the person who committed
the crime. If it was specifically
directed, such as at a person of
a specific cultural background,
then we could clearly define it
as being a specific hate crime.
The police department is vig
orously opposed to hate crimes
Kids Who Didn’t
Fly the Coop
Locals who stayed in
Chapel Hill for college share
their experiences. Page 2
and the University of Wisconsin at Madi
son have had to pay large amounts in back
taxes because of the audits.
Wisconsin, for instance, had to pay $Bl
million, while Michigan was charged $7.7
million. Michigan appealed the charges.
Hooker said at the meeting that he had
already experienced such an audit while he
was serving as President of the University
of Massachusetts system.
An August 1995 article in the Colum
bus (Ohio) Dispatch said most ofthe schools
being audited by the IRS were paying less
than $1 million.
and forms of bias on this campus, and we see a lot of things that
are considered hate crimes in the media are actually protected
First Amendment rights. They are offensive, they are repugnant
to a lot of people, but they have to break the law, or be directed as
to threaten an individual, before we can investigate as an actual
Horae: Is there such a phenomenon as hate speech?
Charlton Allen, Carolina Review publisher: There are cer
tain constitutional liberties at play which mandate that as a body
politic, we support free expression. And hate speech is a problem
atic phenomenon for a very simple reason: who determines what
is hate speech? In an ideal world, for me, hate speech would be
counteracted by more speech. If you disagree with something, say
so. But if you use legal devices, such as the Student Code, it is a
very flawed approach, because we as a society should be devoted
to free expression of all ideas. When a power such as the Univer
sity or the federal government decides, ‘This idea is bad, and we’re
not going to allow it,’ that is a critical issue that can destroy the
freedoms that we all take for granted.
With hate speech and hate crimes, the Supreme Court has been
taking a tough stand. (Allen cited one Supreme Court case that
says enhanced sentencing for hate crimes is unconstitutional.) It
is something that deals with the content of the speech. And when
you start making those judgments, that is something the govern
ment should not be into, according to the Supreme Court.
Home: Let me throw out another idea. How do we reconcile
See ROUNDTABLE, Page 11
Jeanne Fugate to Lead
DTH as 130th Editor
■ Fugate said one of her first
steps would be to create a
box for reader suggestions.
BY MELISSA STEELE
After an in-depth selection process,
Jeanne Fugate was named editor in The
Daily Tar Heel’s 103 year. The 11-member
selection committee voted 9-2 to make
Fugate editor and agreed that her experi
ence and ideas for the future of the paper
qualified her as the best candidate.
Sharif Durhams, a DTH staff member
on the selection committee, said that
Fugate’s experience as editorial page edi
tor was one of her greatest assets.
“Organizing the editorial page and its
staff and all the problems that come along
with that gives her a wealth of experience
that she can take with her as editor of the
paper,” he said. “Members of the commit
tee were impressed with her well thought
out goals for the paper.”
The remaining five weeks of school will
beaperiodof transition, learning and plan
ning for Fugate. “I’m very excited. It’s a
great honor, ” she said. “I have a lot of work
to do (to get ready), but I’m prepared to
dedicate my time to that.”
Although she was prepared to graduate
103 years of editorial freedom
Serving the students and the University
community since 1893
Volume KM, Issue 22
ChapeLHill, North Carolina
01996 DTH Pub&hmgGxp.
Afi rights reserved.
Rainy; highs in the
Tuesday Cloudy high 50s.
■ Chancellor Michael
Hooker announced the
anonymous contribution at
Faculty Council on Friday.
BY SHARIF DURHAMS
A $1 million anonymous donation will
help officials at the Sonja H. Stone Black
Cultural Center achieve their goal ofbuild
ing a free-standing research center.
Chancellor Michael Hooker announced
the donation during Friday’s Faculty Coun
cil meeting. Hooker said the money, which
would be paid to the University over 10
years, will help make possible the 40,000-
square-foot free-standing center for re
search. “Our intention is that it become a
world-class facility of academic research,”
made because of
the donor’s concern for the University.
“Obviously, the donor is deeply com
mitted to the University and knows the
center is important,” he said. “We are
grateful for his generous support.”
BCC Fund-raising Intern Ivy
Farguheson said she did not know why the
donor wanted to remain anonymous, but
she was thankful for the donation.
“I was hoping in my heart something
like this would happen, and it did,” she
said. “It’s great.”
The negative perception of the free
standing center as a Student Union for
black students has kept donations at a
trickle. Hooker said. Now that nearly $3
million in donations has been made and a
new batch of fund-raising programs are
planned, it will be easier for the center to
raise the $7.5 million needed.
“It will be a lot easier to raise funds for
the BCC once we begin the programming, ’’
Plans for the center include building a
library, a theater, an art galleiy, a dance
studio and a media center. The Outward
Bound program and the Institute for Afri
can-American Research would also have
space in the center.
The efforts of Chancellor Hooker were
essential in getting the donation, BCC Di
rector Gerald Home said.
“It was his aggressiveness, his initiative,
his energy that helped get this donation,”
Farguheson said she was excited about
the opportunities created for the center by
“I think it’s great,” she said. “I think
nothing but good can come from this dona
am K S
DTH Editorial Page Editor JEANNE
FUGATE was selected Saturday.
this year, as editor, Fugate will be a fifth
year senior. “I think this will be a valuable
educational experience, so I decided to
stay an extra year and take regular classes, ”
One of Fugate’s first steps as editor will
be to make a DTH suggestion box where
See EDITOR, Page 2
See Page 3