THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, February 17, 1996 TAG: 9602170338
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY MASON PETERS, STAFF WRITER
DATELINE: ELIZABETH CITY LENGTH: Medium: 98 lines
In a blistering letter, the head of the University of North Carolina system has told the interim chancellor of Elizabeth City State University to correct immediately the financial irregularities found during a state audit at ECSU.
``I am deeply concerned over the audit report and I expect improvements to be both immediate and permanent,'' said C.D. Spangler Jr. in his letter to Mickey Burnim, ECSU's interim chancellor.
All of the events cited by the official audit occurred during the administration of Chancellor Jimmy R. Jenkins Jr., who resigned last August but remains on the faculty as a biology professor. Burnim was asked to serve until a permanent chancellor is chosen.
Problems in money-handling at ECSU were disclosed in the annual report prepared by State Auditor Ralph Campbell Jr., and released Feb. 8.
Spangler bluntly told Burnim that ECSU would be punished with the loss of special benefits if the university did not put its counting house in order by July 1. ECSU is one of 16 institutions in the statewide UNC system.
Among other things, Campbell's investigators reportedly found 10 television sets, including some wide-screen units, in the official chancellor's residence formerly occupied by Jenkins and now vacant.
``The television sets and video cassette recorders that are located in the chancellor's residence should be reassigned to appropriate use in on-campus student or other university facilities,'' Spangler told Burnim.
Campbell recommended that ``the chancellor's residence should be secured until the new chancellor is appointed. Access to the residence should be limited to those university employees that have a need for access.''
``Two television sets and one video cassette recorder may be stored for future use in the chancellor's residence,'' Spangler added.
Campbell said that ``of nine items totaling $10,157 which were not found . records.''
Spangler specifically directed Burnim:
``A final report should be made to me by March 8, 1996, on the inventory of the chancellor's residence . . . including any remaining unlocated items. Any items in the possession of Dr. Jenkins should be returned to the university.''
A UNC spokesperson in Spangler's office said Friday that Burnim had recently been called on the carpet before Spangler and William McCoy, UNC vice president for finance.
``At the meeting with Mr. McCoy, you acknowledged the gravity of the findings, some of which are of a recurring nature, and you reported on specific corrective actions that the university was taking to address each one,'' Spangler wrote Burnim.
The UNC president then spelled out how ECSU would be punished if Burnim did not produce convincing remedial measures.
``I will recommend that the Special Responsibility Constituent Institution designation be withdrawn from ECSU at the July meeting of the (UNC) Board of Governors unless the following events occur:
``All of the specific findings identified in the audit have been corrected.
``I am assured that you and your senior staff are fully committed to a continuing program of strict financial controls and have the capability to implement them satisfactorily.
``After consultation with State Auditor Campbell, I am convinced that sound fiscal practices are being followed at the university.''
Campbell's audit cited many instances of ECSU financial operations ``that we consider reportable under standards established by the American Institute of Certified Public Accountants.''
Specifically, Campbell said the ECSU audit recommended the following:
Control of financial statement preparation process needs strengthening.
Perform fixed assets inventory annually.
Strengthen controls for cash and ticket accountability during athletic and student social events.
Enhance internal controls at cash collection points.
Ensure adherence to applicable practices and procedures within the payroll section (at ECSU).
The audit devoted nearly a full page to shortcomings in cash collections at the university.
``Breakdown in controls in the Athletic Department led to questionable cash and ticket accountability,'' Campbell's report said. He said that at one game ``a senior administrator'' turned in $800 in receipts he and another individual collected from an undetermined number of people who were allowed to enter the game without a ticket.''
The audit noted serious problems with ECSU's scholarship program.
``In previous audits we determined that the university had awarded scholarships to students with no immediate means to fund the scholarship,'' Campbell reported.
``We recommend that the university cease awarding unfunded scholarships and that a plan be developed to liquidate the unfunded balance.''
The audit showed that in the fiscal year ending June 30, 1995, ECSU had revenues of $21,326,864.91 and had $965,451.60 in unexpended funds in the bank.
``This is the first time we have ever received a letter of this nature,'' said Roger McLean, ECSU's vice chancellor for business and finance.
``We've accounted for all the funds entrusted to us, but we realize that there's always room for improvement,'' McLean added. by CNB