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.
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