Major audit of university system sought

Monday, Feb. 26, 2001 | 11:19 a.m.

CARSON CITY -- Assembly Speaker Richard Perkins, D-Henderson, today called for a major audit of the University and Community College System of Nevada to look into allegations that money is being wasted and there is a lack of inventory of equipment.

Perkins told the Assembly Ways and Means Committee the last audit of the system was in 1996 and the budget has grown tremendously since then. The regents have a responsibility to oversee the money, he said, but seven campuses have a lot of money that escapes the oversight of the regents.

During the last audit, Perkins said, the schools resisted cooperating with the state auditor. But he said he expected the full cooperation of the university this time.

"They want this audit as badly as I do," Perkins said. "I'm not saying they are doing anything underhanded."

Chancellor Jane Nichols said she was "anxious to cooperate." But she expressed reservations that this could turn into a "fishing expedition." Assembly Bill 26, which requests the audit, says it should be "without limitation," and that bothered Nichols.

For instance, she said, it is not appropriate for the auditors to look into the foundations at the various campuses and their donors. But she agreed to a suggestion by Perkins that the foundation money should be tracked when it is given to the various campuses. He agreed the names of the donors should be kept confidential.

The bill requires legislative auditors examine the building program, the cost of athletics and the source of that money, the cost of administration, the use of host accounts, the reliability of enrollment projects, investment income and the outcomes of the statewide programs.

It says the university should pay the estimated $90,000 cost of the audit. Nichols asked the state to pick up the tab, noting that the system administration doesn't have that money because of the recent investment performance. Otherwise, she said, the money would have to come from the various campuses.

Legislative Auditor Gary Crews said the examination could be completed with $90,000, but it would be "tight." He said it would depend on the cooperation of the university.

The committee did not take any action.

Perkins said regents have expressed concern about money being wasted, referring to the inventory controversy involving equipment and furniture at the Community College of Southern Nevada.

The regents, he said, have the responsibility to control the finances of system. "There is a lack of a strong system of oversight," he said. The regents see only about 80 percent of the money being spent by each campus, Perkins said.

The biennial budget of the university system has grown to more than $1 billion, an increase of 74 percent since the last audit. The system is developing a strategic plan, and the regents and administration will need information from the audit to move forward, he said.