Bill calls for audit of university system

Erin Neff

Wednesday, March 5, 2003 | 11:08 a.m.

CARSON CITY -- Assembly Speaker Richard Perkins this morning asked fellow lawmakers to audit the University and Community College System of Nevada "in order to lay to rest any lingering doubts" about the system's finances.

Perkins, D-Henderson, sponsored Assembly Bill 148 to conduct a performance audit, not a financial audit of the system.

Perkins told the Assembly Ways and Means Committee today that the system's $1.24 billion budget request is a huge investment by Nevada taxpayers that must be checked.

"I don't want to leave the impression that we have an adversarial relationship," Perkins said of the Legislature and the university system.

University system Chancellor Jane Nichols told lawmakers the system has worked hard since the last legislative audit in 1996 to correct any procedural problems.

"Audit is something we live with every day and learn from," Nichols said. "I think it is key that we are able to set aside some of the myths that we are not wisely, or even legally, using the money," she added.

Dan Miles, vice chancellor for finance, asked the committee to have the state pay for the $90,000 audit saying: "Frankly, $90,000 is a lot for us to carry."

But lawmakers, including Assemblyman John Marvel, R-Battle Mountain, suggested the university should pay -- as the bill outlines.

"Are you sure you don't have that $90,000 buried somewhere?" Marvel asked Miles.

Legislative auditor Paul Townsend said the audit would take roughly 10 months to a year and would require about five staff members to complete. The findings would be reported to the 2005 Legislature.

The audit would include capital construction projects; athletic programs; the cost of administration; the use of host accounts, which are controlled by administrators for entertainment and other activities; enrollment data; investment income; contracting and bidding procedures and statewide programs.

This afternoon, the Assembly Education Committee was expected to hear testimony on a bill that would require audits of the Clark and Washoe county school districts.