Meeting minutes for Consolidated Student Senate University of Nevada, Las Vegas, April 24, 1995

University of Nevada, Las Vegas Student Government Office of the Senate President J. William Romero, Jr. Patrick T.C. Smith Senate President Pro Tempore Business & Economics John W. Pida Human Performance & Development Walt C. Vodrazka, Jr. Engineering Jamie J. Fox Education Scott D. Schwartz Hotel Administration Shawna J. Campbell Liberal Arts Terence Carroll Student Development Keith W. McLain Science & Mathematics Leia Fleischman Fine & Performing Arts Kirs tin Anderson Liberal Arts Terry A. Morrow Communications 'oe Laxague Business & Economics Edward A. Rivera Business & Economics Laura Zurek Hotel Administration Julie Wong Education Carl Tolberl Liberal Arts Steven W. Eisen Business & Economics Geoffrey Fayyad Student Development Terry A. Moore Studies Jonathan Schiff Hotel Administration Sandra Shelling Health Sciences Nadia Deluca Student Development AGENDA SENATE MEETING 25-17 MONDAY, APRIL 24,1995 MOYER STUDENT UNION 201 6:30P.M. I. II. III. IV. V. CALL TO ORDER ROLL CALL APPROVAL OF MINUTES 25-14, 25-15 & 25-16 ANNOUNCEMENTS BOARD & COMMITTEE REPORTS A. SENATE COMMITTEE REPORTS a. Rules & Ethics, CHAIR SCHWARTZ b. Campus Safety & Awareness,CHAIR FLEISCHMAN c. Bylaws, CHAIR MCLAIN d. Ad hoc Constitutional Revision, CHAIR CAMPBELL e. Ways & Means, CHAIR FOX f. Student Health Liaison, SENATOR RIVERA g. Ad hoc Student Health Committee, CHAIR SMITH h. VACANT SENATE SEATS 1. Architecture (1) B. DIRECTOR REPORTS a. Nevada Student Affairs, DIRECTOR JOHANNSSON b. Office of Student Information,DIRECTOR WALLACE c. Organizations Board, DIRECTOR PHILLIPS d. Student Services, DIRECTOR GREENHALGH C. BUSINESS MANAGEMENT REPORTS a. Consolidated Student Business Manager b. KUNV91.5FM c. Residential Hall Liaison PAGE 1 CONSOLIDATED STUDENTS • UNIVERSITY OF NEVADA. 4 5 0 5 SOUTH MARYLAND PARKWAY • LAS VEGAS, NEVADA 8 9 1 5 4 - 2 0 0 9 • (702) 8 9 5 - 3 4 7 7 • FAX ( 7 0 2 ) 8 9 5 - 4 6 0 6 SENATE AGENDA 25-17 / MONDAY, APRIL 24, 1995 received CONSOLIDATED STUDENTS STUDENT GOVERMMENIOFCS, UNIVERSITY OP NEVADA D. FACULTY SENATE SEAT REPORTS LAS veoas a. Academic Budget 19 8 3y AH'9S b. Academic Standards c. Admissions d. Code e. Curriculum - Nominations/Elections for two (2) open seats f. General Education g. Grievance - Nominations/Elections for one (1) open seat h. Library i. Public Relation - Nominations/Elections for one (1) open seat j. Scholarship k. Status of Women 1. Rebel Yell Advisory Board VI. PUBLIC COMMENT [In accordance with N.R.S. 241.020 (2)(c)(3)]. VII. UNFINISHED BUSINESS VIII. NEW BUSINESS A. Approval of Shannon Siciliano as Chief Justice; B. Approval of Zenzee Rios as Associate Chief Justice; C. Approval of an amount not to exceed $6,000.00 for a UNLV/community ad to be placed in the Sunday Review Journal, date TBA, from the 2702 (Gen) account; D. Approval of recommendations for the auditors report; E. Approval of an Organizations Board Funding Request for Psychology Club in the amount of $500.00 to be encumbered from the 2704 (Org) account; F. Approval of an Organizations Board Funding Request for LGBA in the amount of $500.00 to be encumbered from the 2704 (Org) account; G. Approval of an Organizations Board Funding Request for ASME in the amount of $500.00 to be encumbered from the 2704 (Org) account; H. Approval of an Organizations Board Funding Request for FAS A in the amount of $500.00 to be encumbered from the 2704 (Org) account; I. Approval of an Organizations Board Funding Request for Alpha Kappa Alpha in the amount of $500.00 to be encumbered from the 2704 (Org) account; PAGE 2 SENATE AGENDA 25-17 / MONDAY, APRIL 24, 1995 receive CONSOLIDATED STUDENTS STUDENT GOVERNMENT OFCS. UNIVERSITY Of NEVADA J. Approval of an Organizations Board Funding Request for Int^UaWAM Golf Association in the amount of $500.00 to be encumbered from the 2704((Or ^u MJ '95 account; ftPR K. Approval of an Organizations Board Funding Request for Association of Turkish Academics in the amount of $340.00 to be encumbered from the 2704 (Org) account; L. Approval of an Organizations Board Funding Request for Sigma Gamma Epsilon in the amount of $500.00 to be encumbered from the 2704 (Org) account; M. Approval of an Organizations Board Funding Request for Association of Pre Health Professionals in the amount of $500.00 to be encumbered from the 2704 (Org) account; N. Approval of an Organizations Board Funding Request for UNLVMUG in the amount of $500.00 to be encumbered from the 2704 (Org) account; O. Approval of an Organizations Board Funding Request for Phi Delta Theta in the amount of $500.00 to be encumbered from the 2704 (Org) account; P. Approval of an Organizations Board Funding Request for Assoc. Computing Machinery in the amount of $500.00 to be encumbered from the 2704 (Org) account; Q. Approval of an Organizations Board Funding Request for Eta Sigma Delta in the amount of $500.00 to be encumbered from the 2704 (Org) account; R. Approval of an Organizations Board Funding Request for Institute of Transportation Engineers in the amount of $500.00 to be encumbered from the 2704 (Org) account; IX. OPEN DISCUSSION X. ADJOURNMENT Posted in accordance with the Nevada Open Meeting Law (NRS 241.00) at the following locations: Moyer Student Union Frank & Estella Beam Hall Flora Dungan Humanities Bldg. Wright Hall Thomas Beam Engineering Complex JWR/bag PAGE 3 ( April 24, 1995 CS UN B USINESS MAN A GER A UDIT Recommendations Attached is a copy of the audit report. As the final decision-making approval body of Student Government, we must make some decisions addressing the audit. Below are recommendations for items 1 - 11 as submitted by the Executive Board, Business Manager and KUNV. These must be approved and adopted by the Senate. #1. No Recommendation from Executive Board. Should discuss. It was decided that the Senate must decide as to whether they will approve or disapprove the practice of using fee waivers to audit class(es). #2. Executive Board recommends that it be mandatory for Executive Board and Directors to attend a mandatory "Paperwork Procedure Class" to be executed by the Business Manager's office. Also, adherence to the procedure should be one of the criteria on Director's Evaluations as performed by the Student Body Vice President. #3. Executive Board recommends that the Business Manager be employed full-time by CSUN and that a part-time employee exist to assist the Business Management duties. Part-time employee(s) should be hired to do the collection of money, anything ranging from typewriter revenue to T-shirt sales. Also, we believe that the Student Body President or his designee supervise all collection of money from revenue generating activities. #4. Executive Board feels that #3 addresses this problem. Hiring of another individual would allow for a double check system. #5. Executive Board finds that this is a University policy and therefore compliance is expected. Usage of the CUFFS system and writing of data in the issued books should rectify this concern. #6. Executive Board notes that the problem is being addressed with the University System and CUFFS. The Finance & Administration branch will be addressing this. Suggestion of lowering the number of accounts to 4 would be advisable: A CSUN General, A CSUN Contingency, A KUNV General, and a KUNV Capital Improvement. Senate Bylaws must be amended to reflect this change. #7. Executive Board recommends approval of attached document as submitted by KUNV. ( #8. Executive Board recommends approval of attached document as submitted by KUNV. #9. Executive Board recommends approval of attached document as submitted by KUNV. #10. Executive Board recommends approval of attached document as submitted by KUNV. #11. Executive Board recommends that all contracts with outside contracts (not University documents) be approved by the General Counsel's office. The Business Manager should serve as the double check that the contract(s) have been approved, and should not sign until proof is rendered. Retool Ydl A u d i t F i n d i n g s Prim lo I')')? llic Rebel Yell, student newspaper was under tlie direct control o r ( SUN. On April I. I«)93 n CSUN senate resolution iccogni/ed the newspaper as nn independent |)uhlicati<in. lo be governed by a body called the Rebel Veil Adv isoiv ltd,nil of Diicclors. Funding to the newspaper is slill contmlled In CSUN. Mie internal audit department was unable lo locale any other authorizing documents dial established spccillc authority lor the Rebel Yell Adv isory Ho,'iid of Diicclors No Spccilic Finding 3 Ail\ci tisiny contracts arc pre-numbcrcd so they can be acc<umtcd lor The last three audits noted missing contracts and all audits recommended that the contracts be signed in and out lor accounting purpose. The problem ofunaccountcd l o r o r u i i s s i n i ; c o n l i a c l s s l i l l CNisls. •I I he pioccdure followed by I he current Business Manager to liack tin', unpaid adv ertising contracts is adequate. She took ov er the j o b in July 'M However review of contracts issued prior to Jiilv I.I '>'>•! revealed 44 open contracts totaling S I 'J.ft') I Ok the pav merits receiv ed 7.594 could be identified iindcredilcd lo 9 contracts. Further $11.8X3 had been received but due lo the poor record keeping it can not be determined which specific contract the payments should be applied to This leaves a total of $50-1 unpaid. 5 It was noled that the CUFS fiscal year-end report did not match I lie balance in the start of the nest fiscal year report However llic correct information is available by accessing the on line ( l U S IJul the CUFS report generator is not picking up certain information when the year-end report is compiled. Recommendations Reasons for Recommendations It is rccommcndcd that the Board of Regents be asked to approve a governing document for the student newspaper that would clearly establish the organization structure, sourccs of revenue and authority to authorize fee waivers and other expenditures According to title IV chapter 20. page 3 of the Board of Regents policy manual all organizations crcalcd should be approved by the Board of Regents. The funding sources and scope of the authority of the Rebel Yell Board of Directors must be d e f i e d in a written document. Lack of such documentation may lead to improper use of authority or lack of accountability Auditor rccommcnds that the business manager write a procedures manual to document how her duties arc to be performed. A system of documentation should be developed and followed to show who has possession of any blank advertising contracts outside the newspaper business office. Procedure manuals define the scopc and functions of an organization. Procedure manuals arc essential for employees to know how to administer. It is a tool for the management to know what is expected of the employee. Procedure manuals arc useful in training new employees. Accountability is critical for creating an environment where cach one is responsible for their actions. Certain procedures are placed to prevent misuse of privileges or authority. Auditor rccommcnds that the business manager request permission of the Rebel Yell Advisory Board of Directors lo write o(Tthe unpaid advertising contracts from prior lo July I. 1994. Since this can not be collected due to poor book keeping it is better to write it off as un collectable. The Internal Audit rccommcnds that UCC'SN users committee be formally advised of these problems and a written request must be made to correct Ihc problem This will be addressed by the UNLV Finance and administration. Bcfacl Yell Audit Findings Recommendations Reasons for Recommendations All conlracls between the university and nnv oulssde individual or linn musl be approv ed by the UCCSN General Counsel. II lite same contract can be used with different p;lilies, tlic conlracl must be approved for use as a form by the General Counsel. There was no evidence that the standard conlracls used by the student newspaper had been approved as a Hum In llie General Counsel AH standard conirncls be sent lo the General Counsel's To minimize institutional liability all conlracls office for approval. This is a recurring violation signed must be approved by the General Counsel. If a particular type o f c o n l r a c t is used all the time the Counsel's office can approve (he contract to be used as form UNI.V policy requires funds received in excess of $50 to be deposited daily, and at least once a week regardless of the amount on hand. The count of the change fund disclosed that checks wi re not piomptly deposited. There were 25 un deposited cheeks on hand, one daliug lo December IW4. The internal audit department rccommcnds the existing policy be complied with to ensure that all funds received arc deposited promptly. Cash is the most important asset in any business which should be safeguarded. If cash is not properly guarded it will lead to theft and embezzlement I he UNI.V Bursar's office policy requires that the individual who receives a check from the public immediately restriclively endorse the check using rubber stamp. The rev iew disclosed the checks received in pavincnt of classified advertising were not endorsed. These checks arc later endorsed by the business manager at the time of the deposit. The student newspaper clerk who actually receives the check musl rcstrictivclv endorse the chcck. To prevent fraud checks must be endorsed immediately. A receipt is issued when payment is receiv ed for classified advertisement. Copies of the receipts arc numerically filed. Auditors examined these receipts and noted Ifi receipts were missiiit! Proper procedures must be developed to account for the receipts issued and voided. Receipts arc issued to properly account for the money. If receipts are lost or missing there is likelihood thai money is missing. 10 Trade-out agreements arc legal contracts negotiated between the student newspaper and oilier parties. Under such agreements the newspaper trades goods and serv ices for advertising space According to the currcnt Board of Regents policy only Inlcrcollcgialc Athletics can sign Trade-out Agreements. Internal Audit rccommcnds that the university be requested to establish a policy for trade-outs for non-alhlctic departments and have the policy approved by the Board of Regents. The current policy must be changed lo enable noil-athletic dept lo sign Trade-out Agreements. Agreements signed must be solely for the purpose of official business The Finance & Administration will investigate the possibility of bringing changes that will enable others to sign Trade-out Agreements. 2 i/uNV, r ^ ^ C O H H U N I T Y P 91FM .COMMUNITY RADIO WWMJHlNIJI UNIVERSITY OF NEVADA, LAS VEGAS 4505 MARYLAND PARKWAY BOX 452010 LAS VEGAS. NEVADA 89154-2010 TEL (702) 895-3877 FAX (702) 895^857 DATE: April 24, 1995 FROM: Don Fuller, Interim General Manager, KUNV TO: John Love, Acting Director of Internal Audit Michael Sauer, Associate Vice President for Finance, UNLV SUBJECT: Response Letter to Internal Audit Report of KUNV Radio Station covering the period January 1, 1994 through December 31, 1994 As the Interim General Manager of KUNV Radio Station, the.following is my re-sponse to the subject audit, following the recommended outline of audit finding, recommendation, and response. USE OF PRESIDENTIAL RECEIPTS AUDIT FINDING A standard form, called a "Presidential Receipt," is used [ to acknowledge donations to the radio station. (Audit specifically discussed donations called "underwriting," KUNV also has a cate-gory of donations deposited as "listener donations." ) A. Internal Audit Department noted that the radio station was issuing Presidential Receipts for funds received that were not donations, but were from the sale of T-shirts. B. Also, audit disclosed two instances where a donation was received but Presidential Receipts'were not issued. RECOMMENDATION: A. Recommendation was to stop this practice immediately B. Recommendation was that existing procedures be complied with to ensure consistency in the issuing of Presidential Recei pts. RESPONSE: A. Practice has been stopped of issuing Presidential Receipts for the sale of T-Shirts. B. Disposition of two donations in question about receiving Presi-dential Receipts: 1. Presidential Receipt 05284, dated 4/20/94 issued to donor, Rockett 88 was sent in a timely manner and copy of same was in KUNV audit file. Copy of same faxed to Internal Audit. (Ref. KUNV Rec. #9352) CONTINUED PAGE 2. JOHN LOVE, ACTING DIR. OF INTERNAL AUDIT MICHAEL SAUER, ASSOC. V.P. FOR FINANCE, UNLV RESPONSE: PRESIDENTIAL RECEIPTS (CONTINUED) B. 2. Donation from Drinks, Inc. was a donor pledge to KUNV's Fundraiser, Marathon, 1994. Permission had been received through Dianne K. Redsull, (Assistant to the V.P. for Development, V.P. Dev. & Univ. Relations) to issue Presidential Receipts for fundraiser donations in amount of $250.00 and higher. IRS regulations specified receipts necessary only for donations of $250 and higher. (Ref. KUNV Rec. #9366) STANDARD CONTRACT FORMS All contracts between any part of the University and any outside individual or firm must be approved by the UCCSN General Counsel's office. If the same contract is going to be used with many different persons or firms, either each contract must be approved or the contract must be approved for use as a form by the UCCSN General Counsel's office There was nothing in the files to show that the standard contracts used by the student radio station have been approved as to form by the UCCSN General Counsel's office. All standard contracts should be sent to the General Counsel's office for approval. KUNV is drafting a memo which will be sent by April 26th to Marc P. Cardinalli, Assist. General Counsel, Las Vegas, and Donald Klasic, General Counsel, requesting approval of all KUNV contracts for use as a form. Copies of this memo and reply to same will be forwarded to you. TRADE-OUT AGREEMENTS AUDIT FINDING: Trade-Out agreements (also called "In-Kind Donations" by KUNV staff) are legal contracts negotiated between the KUNV Radio Station and third-party vendors. The Board of Regents has established a formal policy regarding trade-out agreements for intercollegiate athletics only. Request the University to establish a policy on trade-outs for non-athletic departments and have the policy approved by the Board of Regents. KUNV will request assistance from the UCCSN General Counsel's office about the procedure to get recommended policy established and approved by the Board of Regents. PAGE 2 APRIL 24, 1995 AUDIT FINDING: RECOMMENDATION: RESPONSE: RECOMMENDATION: RESPONSE: CONTINUED PAGE 3... JOHN LOVE, ACTING DIR. OF INTERNAL AUDIT MICHAEL SAUER, ASSOC. V.P. FOR FINANCE, UNLV PAGE 3 APRIL 24, 1995 I believe the above information covers all the points brought up concerning the audit of KUNV's operations. If you need any further information, please contact me at Ext. 3877. \\ / DON' FULLER, INTERIM (3 iENERAL MANAGER, KUNV CC: Dr. Robert Ackerman Lori Callison, CSUN Business Manager Kamava Karwan, Asst. to Associate VP for Finance IU il /r l r/ DC l MM SYSTEM ADMINISTRATION OFFICE 1621 East Flamingo Road Suite 15-A Las Vegas, Nevada 89119 (702) 895-4080 FAX: (702) 895-4086 Memorandum April 17, 1995 To: Ms. Lori Callison CSUN Business Manager From: M. E. Nash, Internal Audit Subject: Audit Completed jnVI With regard to my memorandum of March 9, 1995 on the audit report for CSUN for the period January 1, 1994 through December 31, 1994. Attached is the final copy of the audit report. The report has been reviewed and this is the form that will be presented to the audit committee at the Wednesday, May 10, 1995 meeting of the Board of Regents. The meeting will be held at 10:15 a.m. by televideo, and if you wish to be present, you may attend the meeting by going to the third floor of the Computing Services building. The reply to the audit must be in the office of Mr. John Love, Acting Director of Internal Audit, by Wednesday, April 26, 1995 . The reply must be routed through the office of the Interim Vice President Finance and Administration for his approval, but should be addressed to Mr. Michael Sauer, Associate Vice- President for Finance. Thank you for your assistance. cc: Dr. Robert Ackerman Mr. Louis Dubois Ms. Kamava Karwan Mr. John Love Ms. Kay Morris Dr. Norval Pohl Mr. Michael Sauer iifWSAwn University and Community College System of Nevada 03M Chancellor's Office University of Nevada, Reno University of Nevada, Las Vegas Desert Research Institute University and Community College System of Nevada Office of the Chancellor 2601 Enterprise Road Reno NV University of Nevada, Las Vegas Consolidated Students of the University of Nevada, Las Vegas January 1, 1994 through December 31, 19 94 LAS VEGAS AUDIT OFFICE 1621 E FLAMINGO ROAD SUITE 15-A UNIVERSITY OF NEVADA, LAS VEGAS CONSOLIDATED STUDENTS OF THE UNIVERSITY OF NEVADA, LAS VEGAS Internal Audit Report January 1, 1994 through December 31, 1994 SCOPE OF AUDIT The Internal Audit Department has completed a review of the operations of the Consolidated Students of the University of Nevada, Las Vegas (CSUN) for the period January 1, 1994 through December 31, 1994. The prior audit of CSUN was for the period July 1, 1990 through May 31, 1991. The scope of our review included such tests of the accounting records and other such auditing procedures as considered necessary. The tests included, but were not necessarily restricted to, these areas: 1. Examining and testing controls over CSUN-generated revenue, including revenue from the student radio station and typewriter rental. 2. Examining and counting the change fund for proper safeguarding and control of assets. 3. Testing CSUN expenditures for propriety, supporting documentation, and proper signature approvals. 4. Testing the physical existence of equipment inventory. 5. Examining and testing the radio station (KUNV) for controls over: a. Donations or gifts received; b. Delinquent receivables; c. Receipt books and the Distribution of Presidential Receipts. d. Use of qualitative and/or promotional terms during the announcements; and, e. Proper payroll procedures for commission and talent payments. 6. Testing long distance telephone charges to determine that a telephone log has been maintained 1 and that there has been no personal use or misuse of telephone lines. 7. Examining the CSUN Constitution and the Board of Regents Handbook for compliance. 8. Reviewing the prior audit report to determine that recommendations have been implemented. The Internal Audit Department is reasonably assured that operational and accounting controls of CSUN are adequate and n compliance. However, the following findings were noted and implementation of the recommendations would further improve the functioning of CSUN. GRANTS-IN-AID The review disclosed that two CSUN officials received fee waivers and registered to audit classes (as opposed to talcing the class for credit). The CSUN Business Manager stated that this semester was the first time that any student receiving a fee waiver had used the funds to audit a class. Additionally, the CSUN Business Manager was unable to locate any CSUN documents that mentioned the subject. The Internal Audit Department recommends that the CSUN government be asked to establish a policy on the use of fee waivers to audit classes. CSUN EVENTS The prior audit noted that there were no records indicating that revenue-generating events sponsored by CSUN, such as the sale of T-shirts, had been approved by the CSUN Business Manager. The prior audit recommended that the CSUN Business Manager develop a form for the approval of all events sponsored by CSUN. The form would ensure that events would be properly approved by the appropriate CSUN officials and countersigned by the CSUN Business Manager. Another form would be used to account for any merchandise sold. Two individuals must sign when receiving the merchandise, and when returning unsold merchandise, so as to establish funds due to CSUN. Before the close of the prior audit. Internal Audit was told that this recommendation would be fully implemented. A review of cash receipts disclosed that funds were deposited from a sale of T-shirts, but none of the forms recommended in the prior audit had been developed. We again suggest that the recommendations made in the prior audit with regard to documenting the sponsorship of revenue-generating events be fully implemented. The review also disclosed that the merchandise was sold by the CSUN Business Manager, who also prepared the deposit of the funds received from the sale of the T-shirts. This would appear to be a violation of the principal of separation of duties. The Business Manager noted that often she is not informed about such events until the last minute and that given limited resources, if she gave up control over the sale merchandise to another person, there was no way she could guarantee control over the merchandise and funds received. The Internal Audit Department recommends that, at a minimum, whenever the Business Manager is involved in the sale of merchandise, another person should be involved to sign documents as a witness and to periodically review records documenting the disposition of funds raised. The CSUN Business Manager has no assistants; all of the work is done by one person. We would suggest that strong consideration be given to hiring another person so that duties can be separated and proper controls implemented. RECEIPTS INTO ACCOUNTS The Internal Audit Department traced funds deposited into two CSUN accounts to determine if deposits were being made on a timely basis. UNLV Business Office policy requires funds received in excess of $50 to be deposited daily, and at least once a week regardless of the amount on hand. 3 During the review of funds received, we noted delays between the time a deposit slip was prepared and the time the funds were credited to the CSUN account. The CSUN Business Manager stated that at all times undeposited funds are placed in a secure safe located in her office. The Internal Audit Department recommends that CSUN comply with procedures in place requiring the prompt deposit of funds received. CSUN needs the written permission of the UNLV Controller's Office if they want to deviate from the established policy. LIMITED PURCHASE ORDERS All UNLV departments are required to use Limited Purchase Orders (LPOs) to purchase material and services with a cost of less than S250. The Limited Purchase Orders are issued by the UNLV Purchasing Department in a "book" of 50 LPOs. The review of the five LPOs registers in use by CSUN disclosed that none of the LPO registers had been properly maintained. No data of any kind was entered on the front of two of the "books" of LPOs and only limited information had been posted to the front of the other three LPO "books." The Internal Audit Department recommends that there be greater compliance with existing procedures to ensure that all of the required information is entered on the LPO registers, as defined by the guidelines established by the UNLV Purchasing Department. FINANCIAL REPORTS A review of reports generated by the College and University Financial System (CUFS) disclosed fundamental problems with the fiscal year-end reports. The Internal Audit Department noted differences between account balances at the end of one year and the start of the next fiscal year. Both the CSUN Business Manager and the Executive Assistant to the VP for Finance and Administration stated that as far as they can tell, the correct financial information is available by accessing the on-line computer system, however, the CUFS report generator is not catching certain information when the year-end reports are compiled. The Internal Audit Department recommends that the UCCSN Financial Users Committee be formally advised of these problems with the report-generating programs in the CUFS system and that a written request be made to correct the problem. We also noted that the number of accounts used by CSUN is greater than the volume of transactions would warrant. We recommend that the number of accounts be reduced. Student Radio Station KUNV KUNV As part of the University and Community College System of Nevada, the radio station is a non-profit organization. Donations to the radio station are called "underwriting." A standard form, called a "Presidential Receipt." is used to acknowledge tax-deductible donations to any part of the University and Community College System of Nevada. The Internal Audit Department noted that the radio station was issuing Presidential Receipts for funds received that were not donations, but were from the sale of T-shirts. We recommend that this practice be stopped immediately. This same finding was noted in the prior audit. The audit also disclosed two instances where a donation was received but Presidential Receipts were not issued. We recommend that existing procedures be complied with to ensure consistency in the issuing of Presidential Receipts. STANDARD CONTRACT FORMS All contracts between any part of the university and any outside individual or firm must be approved by the UCCSN General Counsel's office. If the same contract is going to be used with many different persons or firms, either each contract must be approved or the contract must be approved for use as a form by the UCCSN General Counsels office. There was nothing in the files to show that the standard contracts used by the student radio station had been approved as to form by the UCCSN General Counsel's Office. We recommend that all standard contracts be sent to the General Counsel's office for approval. This same finding was noted in the prior audit. The prior general manager of the radio station wrote to the General Counsel's office on several matters, but did not ask that the contracts in use be approved as to form. TRADE-OUT AGREEMENTS Trade-Out agreements are legal contracts negotiated between the KUNV Radio Station and third-party vendors. Such agreements are usually for one fiscal year (July 1 to June 30), but may cover a longer period of time. Radio station personnel call such agreements "in-kind donations." The Board of Regents has established a formal policy with regard to trade out agreements for intercollegiate athletics. Internal Audit recommends that the university be requested to establish a policy on trade-outs for non-athletic departments and have the policy approved by the Board of Regents. CONTRACT FOR LEGAL ASSISTANCE The following item, "Contract for Legal Assistance," was noted during our testing of the CSUN Business Office. However, it is the responsibility of other Departments of the University of Nevada. Las Vegas (UNLV.) CSUN negotiated a contract with a local firm to provide legal assistance to students. The Internal Audit Department visited the Purchasing Department and asked if the contract had been approved as 6 to form by the General Counsel's Office. Any contract between the university and any individual or firm must be either individually approved by the General Counsel's Office or approved by them as to form. The Purchasing Department was unable to locate any such prior approval. We recommend that such approval be obtained from the General Counsel's Office. PRIOR AUDIT REPORT The prior audit report was for the period July 1, 1990 through May 31, 1991. Except for those recommendations specifically mentioned in this report, all of the prior recommendations were either fully implemented or changes in procedures made the recommendations no longer relevant. The Internal Audit Department would like to thank the personnel of the CSUN Business Office and the KUNV Radio station for their cooperation and assistance. Mark E. Nash Internal Auditor Acting Director of Internal Audit v. JN & KUNV Audit Findings Recommendations Reasons for Recommendations Two CSUN officials who rcccivcd fee waivers, registered to audit classes. According to CSUN Manager this is the first time students receiving f