The daily Nebraskan. ([Lincoln, Neb.) 1901-current, October 27, 1978, Image 1
dailu nebraskan friday, October 27, 1978 lincoln, nebraska vol. 102 no. 36 Unions need better business practices-audit report By Amy Lenzen The Nebraska Unions are not poorly managed but need to develop sound busi ness practices in order to eliminate defi cits, according to a management audit re port of the Nebraska Unions released Thursday. The audit was conducted this fall by a private firm, Touche, Ross and Company of Kansas City, after the union manage ment was criticized at NU Board of Regents meetings last summer. Two UNL graduate students had criti cized plans for union expansions and reno vations which union director Allen Bennett said were necessary to recoup financial losses of last year. The students and Regent Robert Prokop of Omaha had maintained that the unions were the most poorly managed of all Big 8 university unions. They had cited informa tion indicating that the union had the high est administrative costs of the unions, the second highest income from funds like student fees and were the only unions to lose money. Vice Chancellor of Student Affairs Richard Armstrong, who released the re port, said the unions "have achieved neither the best nor the worst financial re- Registration (leadline today Today is the deadline to register to vote in the Nov. 7 election in Lancaster County, according to the election commissioner's office. Persons wishing to register should do so at the County-City -Building before 6 p.m. Absentee ballots for another county must be mailed no later than Nov. 3 at 4 pjn. Registered voters in Lancaster County who plan to be out of town on election day, may file an absentee ballot in the election commissioner's office by 4 p.m. Nov. 6. suits when compared on an item-by-item basis with other unions in the Big Eight." Middle of Big 8 Armstrong said one of the auditors told him the Nebraska Unions probably could be placed in the middle of the Big Eight university unions on a financial compari son. The report, which Armstrong said "was not intended to pat the union on its back," also did not discuss areas where the union management is "performing in an adequate or exceptional manner." The auditors found that income producing operations such as food service and recreation are not self supporting and are being subsidized by student fees which are intended to finance only non-income activities such as lounges and study and meeting rooms. The largest losses have occurred in the food service department, which has been operating at a deficit for four years and lost $71,000 in fiscal year 1978. The Colonial Dining Room and the Faculty Club have the largest percentage of losses. Because "there is no reason for student fees to be used as a subsidy for income pro ducing operations," the audit concluded that union management must develop an attitude that cost control is a number one priority. Needs more information In order to achieve this, the union management needs more detailed financial and cost accounting information which would allow the management to isolate the problem-in other words if there is a deficit the management needs information to de termine whether the loss occurs in food service or recreation and make manage ment decisions on that basis. This information has not been avail able to the management in the past, the report concluded, and suggested that a mini computer being considered by the Union Board might be an appropriate way to begin solving the problems. Continued to Page 10 iv' w-C T' hoto by MaryAnne Golon 'Quick, Junior, call the bakery!" A monkey stares at its hand in amazement as a cookie seemingly explodes before its eyes. Report asks for more student input on fee decisions By Brenda Moskovits An increased student voice in student fee decisions is the central theme behind a report issued Thursday by UNL chancellor Roy Young. After five months of research, Young's ad hoc Fund B study group reported that the present fee level supporting major or ganizations and debt payments should be sufficient for three to five years and that future proposed increases or major capital projects and purchases should required approval by a student referendum. The group, formed last May, reviewed student fee support money which goes to the Nebraska Unions, University Health Center, UNL Recreation Department, International Education Services and bond repayment funds. The group also suggested that student advisory boards to Fund B recipients be included in the decision -making process and not just planning aids. Other recommendations for all Fund B users include: writing five-year planning statements (the Nebraska Unions have already done this), and doing specific inside friday To spend or not to spend: Speakers debate proposed constitutional spending limit Pa?e 8 Off into the sunset: Review of western movie gets high points . . . page 1 2 Reading the cards: Upcoming Nebraska games are viewed through crystal ball page 14 financial and cost accounting by program or activity instead of by expenditure. The group reported difficulties evalu ating programs because cost figures were lumped "together under personnel, equip ment and supply categories rather than by activity or program headings such as Har vest room and Crib in the Nebraska Union or dermatology clinic and neurology clinic at the health center. The recommendations were based on background review of Fund B activities, responses to a questionnaire presented to the four major users, meetings with direc tors of the organizations and a student opinion survey conducted by the UNL Bureau of Sociological Research. Aside from general recommendations, specific suggestions for each Fund B users are part of the 32-page report. They are as follows: Nebraska Unions According to James Van Horn, group chairman and assistant Dean of the Cofleges of Arts and Sciences, the student survey found that "students reallydo prefer a business-like approach to these supposedly revenue-producing activ ities (such as the Crib and the Harvest Room) in the union." In keeping with the survey, the group recommended that revenue-producing act ivities be treated as "profit centers" and those which are not self-supporting be re evaluated. Included in assessing productivity would be the overhead expenses, equipment and expenditures. Other suggestions for the unions include: -giving the Union Board and union director authority to assign space in the union and charging rent for non-union act ivities such as the University Bookstore, vending machines and registration office for drop and add. -re-evaluating the student banking office regarding their fees, failure to return interest to organizations and the amount of union space they occupy. -considering reserving the parking lot north of the Nebraska Union for customers only (the group emphasized it does not advocate building a parking garage). -looking at selling alcohol in the unions as a revenue-producing activity. Van Horn emphasized that the recom mendations are only possible "attractive means for supplementing the income of Fund B. "We do not intend to be implying the campus vending service or the Univer sity Bookstore are mismanaged." University Health Center-Van Horn said the student survey indicated that "students have a very high level of support for student health services in spite of a very low level of use." A large proportion, however, were not aware of special health center services such as dermatology, neurology, ophthalmology and other clinics. The group suggested working on better student information spreading of these services. Sixty -two percent, however, said they would support a $5 fee for visits to special ty clinics if budget cuts were needed. The group mirrored that sentiment, recommending a $5 fee for the services. Also suggested are: better record -keeping on the number of individual students using the center (now, only the total numbers of overall visits is available. -considering contracting for emergency or specialty services. -selecting Health Advisory Board member through ASUN appointment rather than staff appointments, and looking at duplicated psychiatric services among the health center. UNL Counseling Center and Psychology Department . The group also commended the center's attempt to gain accreditation because more laboratory charges could then be covered by insurance. Eighty-eight percent of those respond ing said they carry health insurance, according to the survey. International Educational Services-This should be "used as an institutional com mitment rather than an individual student responsibility that should be funded by student fees," Van Horn said. The committee recommended that the office be fully funded by state taxes. The university's proposed 1979-80 budget in cludes such a transfer, according to Richard Armstrong, vice chancellor for student affairs. Recreation Services Department -The survey showed that the majority of stu dents do not use the services and many do not know they exist. The committee urged that: -improved and increased programming be a higher priority than budget matters. -that non-users' opinions be assessed in establishing services, and -that ASUN, rather than the depart ment appoint advisory board members. Fund B bond management-The group found that the amount collected for bond replacement was "a little bit on the high side by design," Van Horn said. In order to meet debt repayment, the trustee requies 1.25 times the amount needed yearly to pay on the principal and interest, but the university has based itself on a conservative schedule of raising 1.37 tLmes the amount needed. The committee also recommended: -possibly spending all surplus bond money to repurchasing outstanding bonds, or -possibly holding onto current bonds at low interest rates which yield high returns. r