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_i_ -
I Policy break leads to misplaced funds
By Chris Hain
Senior Editor ___
A recent money mix-up in the eco
nomics department shows what can
happen when univcrsitypolicics aren’t
followed closely, a university official
said Friday.
Herb Howe, associate to the chan
cellor, said as a result, the University
of Nebraska Foundation would moni
tor donations more closely in the fu
I ture. The foundation is a corporation
I that independently solicits donations
I for the university.
Last week, it was discovered that
I about $45,000 was donated to the
foundation to pay for two economics
students’ graduatcassistantships. That
I money was put into an economics
I department account which the depart
| ment could use for anything.
The first mistake, Howe said, came
I when the university accepted the do
[ nation.
[ The university usually tries to avoid
1 accepting donations earmarked for
specific students, he said.
Howe said he didn’t consider the
money a gift to the university, because
the university could only use it for
limited purposes.
It’s like a student’s parents giving
money to the foundation as a scholar
ship for that student, Howe said.
Howe said economics department
officials alsobrokc policies by placing
the money in the wrong account.
Officials mistakenly placed the
money in an unrestricted account,
when it should have been put in a
restricted account.
Because of this mistake, the stu
dents’ schooling was paid for by the
department’s general operating bud
get, which is financed by taxes and
tuition.
Howe said the university probably
would not face any legal ramifications
because of the money mismanage
ment.
University officialssaid when mis
takes like this occur, they were hard to
detect.
Stan Liberty, dean ofthcCollcgcof
Engineering and Technology, said
money from foundation accounts wus
uivcnca routinely to university ac
counts.
“We have many foundation trans
actions throughout the year,” Liberty
said. “Normally if a department head
has a foundation account that they are
responsible for, they ask that the money
be transferred to the university.”
Liberty said his college closely
monitored money in restricted ac
counts.
“We report every semester to the
foundation how money for graduate
assislantships is being spent,” Liberty
said.
The College of Engineering and
Technology reported names and dol
lar amounts to the foundation, he said.
But Liberty said if the foundation
placed the money in an unrestricted
account, as was done i n the economics
department, his college wouldn’tkccp
track of whether the money was spent
as intended.
“It doesn’t sound 1 ike there’s a big
loophole in the system,” Liberty said.
“But if you have an individual who
makes a mistake, it’s easy for it to go
undetected.”
Faculty senate to elect officers, give award
From Staff Reports j_
The Academic Senate will elect
next year’s olTicers and present an
award at Tuesday’s meeting.
Linda Pratt, an English professor,
will be given the James A. Lake Sr.
Academic Freedom Award
I
The Academic Freedom Award
recognizes outstanding support for
academic freedom at the University of
Ncbraska-Lincoln, Senate Secretary
Jerry Renaud said.
Britt Ehlers, first vice president ol
the Association of Students of the
University of Nebraska and liaison to
the Academic Senate, also will ad
dress the senate Tuesday. Ehlers is
asking for support for an ASUN bill.
The bill urges state and university
leaders to protect the quality of the
existing UNL engineering program.
* • ■ '1
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