ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, June 15, 1994                   TAG: 9406160022
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO  
SOURCE: ALLISON BLAKE STAFF WRITER
DATELINE:                                 LENGTH: Long


AUDIT AT RADFORD FOCUSING ON PERSONAL ITEMS

Radford University funds apparently were used to buy three compact-disc players and three VCRs for the state-owned home of departing President Donald Dedmon from 1988 to 1990, documents being audited by the university show.

During the same period, more than $4,000 for picture frames in administrative offices was charged to Dedmon's discretionary fund, which is filled annually by earnings from campus vending machines. The money is considered earnings the university can use as it sees fit, according to the state auditor of public accounts.

Money from the fund also was used to buy three television sets - including one for Dedmon's home that cost $2,199 - from December 1988 to March 1990, according to the documents. Some travel expenses for Dedmon's wife, Geraldine, also were charged to the account, including $148.39 for a 1986 visit to Washington, D.C., to confer with comedian Steve Allen about his appointment as a distinguished visiting professor, according to one memo.

While some faculty members allege that the documents show misuse of funds, many of the purchases and expenses might turn out to be legitimate under the Radford Board of Visitors' own guidelines for managing the discretionary fund.

In all, more than 500 pages of documents were turned over to the board last Wednesday by faculty members. Dedmon, who had spleen surgery this spring and has been ill, announced his retirement the next day. He begins a 14-month medical leave today and will officially retire in August 1995. He has been president since 1972.

Under board guidelines adopted in 1973, a wide range of loosely defined expenses can be charged to the president's discretionary fund. Among them are "membership in organizations, attendance at conventions and travel, including the travel and related expenses of the president's wife where appropriate, improvements to the home provided for the president, such as providing furniture in the guest apartments and public entertaining areas ... general furnishings and accessories for the office and home provided for the president."

The university rector is responsible for quarterly reviews of the account.

Documents under review cover expenses requested from the fund from 1986 to 1990. Most of the documents are memos to the school's budget and finance office from Charles A. Wood Jr., Dedmon's longtime aide.

Included in the documents are pages listing Federal Express charges, reportedly for deliveries to Dedmon's family; phone calls that may have been personal; and charges for garden plants for Hickory Hill, the president's home.

In March 1993, after a whistleblower called the state internal auditor's office, Dedmon repaid the university more than $2,800 for personal phone calls and Federal Express charges found in documents going back to 1989. The state concluded there was no wrongdoing, said John H. Huston, the state's internal auditor.

Vice Rector Bernard C. Wampler has said he knew nothing of the audit, although Charles King, the school's business manager, said auditors had asked his office for documents.

"I would expect that whoever reports to the board should report this to the board," Huston said.

Dedmon has not responded to requests for interviews.

On Tuesday, in the room where the board conducted the six-hour, closed-door meeting that led to Dedmon's departure, the state Council for Higher Education held its monthly meeting. Dedmon, who had planned to report on Radford's New College of Global Studies, decided not to, said university spokeswoman Debbie Brown.

Gordon Davies, the state council director, and Don Finley, the council's financial expert, couldn't comment on the allegations against Dedmon. However, as Davies pointed out, discretionary funds often are "soft" money.

Many schools use private foundation funds to pay for entertaining, furnishings for the president's home or gifts for university guests and donors.

At James Madison University in Harrisonburg, President Ronald Carrier has a fund "in the four figures" that covers such expenses, spokesman Fred Hilton said.

If the funds are used for personal expenditures, the money is considered taxable income, Hilton said.

Virginia Tech also uses foundation funds for the president's entertaining, for gifts and for other items that aid in fund raising but which may not properly come from state tax revenues, spokesman Larry Hincker said.

The discretionary fund at Radford has $30,000 for this budget year; of that, $20,386 has been spent.

Coming changes to the university board could complicate the situation.

The terms of Rector Marion "Tommy" Jones of Floyd and Thomas D. Irvin of Englewood, Colo., expire June 30. Gov. George Allen will appoint two new members.

"The movement to identify persons to put on the board has been in process for some time. I don't think it will be impacted by the change in the presidency at Radford University," Secretary of Education Beverly Sgro said Tuesday.

On campus, summer school is in session. Faculty asked for their opinions did not want to be named, but did say it's best for the university if the controversy ends soon.

"I think the students are wondering what's going on," junior Shannon Estep said. "There hasn't been much brought out about it."


Memo: ***CORRECTION***

by CNB