February 28, 1973 press release

News TOWSON STATE COLLEGE Baltimore, Maryland 21204 News & Publications Services, WilJ.iam Carey, Director Tel: (301) 823-7500 February 28, 1973 [handwritten: SGA Scheller / Paul - Anything on this yet? / De Fisher / 3-5-72 WAC?] In September of 1972 College officials were informed by student leaders of possible shortages in the income-producing areas of SGA funds. Upon receipt of this information, Colleee officials conducted a preliminary analysis after which Stat~ auditors were requested to come to the campus and perform an audit of the SGA records in the income-producing areas. These areas include dances, concerts, and other recreational activities sponsored by students where ticket sales or other income is generated. As a result of the State auditors' analysis and a subsequent State Police investigation, one arrest was made and shortages of approximately $17,000 were verified. The investigation and analysis made it clear that this area of SGA funding required additional administrative regulations in the form of policies and procedures not previously existing. Mr. Wayne N. Schelle, Vice President for Business and Finance, explained the history of the situation and what actions bad been taken. "The student rights movement of the 1960 1s resulted in many requests for student independence. At that time, income-producing activities were quite limited. Since that time, however, the SGA, like many other organizations, has realized the need for self-generated income to offset its limited financial resources. The administration of President James Fisher inherited a situation in which no regulations governing the incomeproducing areas existed, neither College policies, State regulations, nor any State legislation. In fact, State auditors had never audited this area of SGA funds prior to the College request in September of 1972. "Other types of SGA funds, which make up the vast majority of such money, are treated as other College funds regarding financial regulations, policies, and procedures. It has been only in the area of income production that regulations have -MORE-