University Press (Beaumont, Tex.), Vol. 70, No. 14, Ed. 1 Friday, March 5, 1993 Page: 4 of 6
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Page 4
University Press
Friday, March 5, 1993 j
Deficit
Continued from page 1
the three years since the discontinuation of
the football program, auxiliary losses have
continued to grow.
During 1988, football salary costs amount-
ed to approximately $189,000, with total ath-
letic salary costs of approximately $756,000.
Even by discontinuing football and eliminat-
ing football coaching salaries and related
team travel, by fiscal year 1992 total athletic
salaries had increased approximately $79,000
to a total of $835,000. This increase resulted
from the addition of new assistant athletic
director position as well as increased salaries
for the men’s basketball and baseball coach-
es.
In April 1990, the board adopted a resolu-
tion to hire a new basketball coach. The
report states that it appears that the board,
system officers and the president of the
Lamar campus all participated in negotiat-
ing the terms of the new coach’s contract.
The contract included an annual salary of
$100,000 and other perquisites. The univer-
sity hired a new baseball coach at a salary of
$57,000 a year for five years. The previous
baseball coach’s salary was $33,000.
"We question the prudence of increasing
athletic expense commitments in a time of
revenue shortfalls,” the auditor said. “Such
decisions have contributed to increased ath-
letic expenditure and the continued inabili-
ty of athletic programs to operate within
budget constraints.
The audit cites an example during an
August 1991 meeting of the Faculty Senate
Subcommittee on budgets which tape-
recorded an interview with Beaumont’s bas-
ketball coach.
He stated that although no one ever
explicitly told him “not to worry about the
money,” his understanding was that he was
to show management and other interested
parties “what it would take” to build a pro-
gram of the caliber desired. At this point,
someone would make the decision whether
to continue expenditures at that level.
The coach stated that he “didn’t know
what his budget was.”
The audit points out that during the last
five months of fiscal year 1992, executive
management in the campus finance office
personally approved all athletic purchase
requisitions for payment.
The auditors said they were told that
management was forced to override controls
designed to prevent deficit spending to keep
athletic programs from ending immediately.
The audit points out that throughout the
period examined, athletic expenditures have
continued to exceed available revenue and
that revenue spent on athletics has continued
to exceed the amount approved by the
Student Fee Advisory Committee which is
legislatively created to advise management
regarding the “type, amount, and expendi-
ture of compulsory fees for student services.”
According to this committee, the student
service fees are allocated 54 percent to athlet-
ics and 46 percent to other student services,
including health services. This has reduced
the percentage that the committee intended
to go to student services other than athletics.
Auditors said that in their analysis of 36
Texas universities, facts revealed that Lamar-
Beaumont fell in the lowest quartile of
spending on student services as to percentage
of current fund revenue and per student.
In housing, auditors pointed out that rev-
enue exceeded expenditures, excluding debt
service, by approximately $1 million, based on
studies of fiscal year 1988 to fiscal year 1992.
However, bond debt service totaled close
to $2.5 million which resulted in a net deficit
for housing of approximately $1.5 million.
This occurred from attempting to improve
the condition of dormitories and increase the
number of student campus residents in com-
bination with declining enrollment since
1983.
The audit pointed out that until student
enrollments increase, housing expenses will
continue to exceed available revenues and
that continued auxiliary losses may hinder
management’s ability to continue to pay debt
service on housing bonds.
Fees
Continued from page 1
Beaumont management concurs
with the auditors' recommendations
and says that by fiscal year 1994,
specific accounts with these budget-
ed fees should be available for cam-
pus budget managers.
The acting vice president for
finance will establish new expense
accounts for the exclusive use of
responsible budget managers for fees
such as the computer-use fee.
Management says that new
accounts, available by May 1993, will
be created and used to track art fees,
health and education fees, and com-
puter-use fees.
Each of these fees will be moni-
tored by responsible budget man-
agers.
Expenditures
Continued from pago 1
sented to the Finance and Audit Committee by
June 1993,” management said.
Management also pointed out that the auditors
should have evaluated the individual circum-
stances surrounding the questionable expendi-
tures, saying, “Expenditure of funds for advance-
ment and development is essential for the long-
term financial viability of the system and its com-
ponent institutions.”
“Calling attention to such immaterial items
grossly overstates any alleged poor judgment and
can only serve to trivialize other significant find-
ings,” management said.
Cottle
Continued from pag* 1
transitional period will be gather-
ing information, identifying prob-
lem areas and then getting to
work.
Cottle said that in any possible
actions to address problems, it is
vital “to have the student voice
heard."
Cottle also hopes that national
searches will soon be conducted to
fill remaining interim positions at
the university and that the first one
he would like to see filled is the
vice president for academic and stu-
dent affairs.
“I would say that by the end of
FY ‘94, we hope to have everyone
in place,” Cottle said.
Management also responded to the auditors’
questioning the former chancellor’s compensation
package:
“The audit staff apparently has not performed
any analysis of the liability arising from the con-
tractual obligations which had to be considered and
resolved regarding that matter and the continued
services of that individual to a component of the
system.
“Second-guessing the board of regents’ decision
in handling this matter neither explicates the legal
liabilities or the moral concerns which had to be
weighed by the board, nor does it prudently con-
. sider the sizable costs and damages which could
have resulted from litigation.”
The auditors’ follow-up comment says in refer-
ence to the compensation package that the former
chancellor told auditors that he had served in that
position without a contract.
In response to the legal liabilities and moral
concerns that had to be weighed by the board, the
audit says, “None of the documentation provided
to us either indicates that the board ever discussed
or deliberated these issues while sitting as an offi-
cial body.”
Audit
continued from pago 1
student service fees budget to keep
track of various fees.
These are just a few of the
actions LU officials are taking to
ensure tighter budgetary controls.
LU management also concurs
with the audit’s findings concerning
the other problems of declining
enrollment and dormitory occupan-
cy, the auxiliary budget deficit, and
the regents’ micromanagement and
lack of training. Management’s
responses include a multitude of
specific actions, identified positions
of responsibility and target dates by
which LU officials hope to have
completed plans to address the
audit’s findings.
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Bankston, Mark. University Press (Beaumont, Tex.), Vol. 70, No. 14, Ed. 1 Friday, March 5, 1993, newspaper, March 5, 1993; Beaumont, Texas. (https://texashistory.unt.edu/ark:/67531/metapth499851/m1/4/?q=Lamar+University: accessed June 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Lamar University.