Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1220]

EXTRACTED TEXT FROM PAGE:

1961]

UNIVERSITY OF I L L I N O I S

1217

able for this purpose, and it has been necessary to reduce most applications and in some cases to fail to make the loan because of insufficient funds. This is in spite of $250,000 which has been received each year from the federal government under the National Defense Education Act. Attempts have been made to find new sources of funds to be used for this purpose. At the Urbana and Chicago campuses, student organization funds are combined into single accounts for proper administration. T h e Code on Undergraduate Student Affairs and Regulations Governing the Chicago Organizations Fund allow the Executive Boards of these funds to invest cash balances of the funds over and above the working balances required. At the present time $105,000 is so invested in Urbana and $68,000 in Chicago. It has been found that a substantial portion of these investments are semipermanent in character since student organization funds balances remain large at all times. The Dean of Students at the Urbana campus and the Business Manager at the Chicago Professional Colleges have suggested that a portion of the funds thus invested be made available for loans to students. In order to accomplish this, the Code on Student Affairs at the Urbana campus has been revised to permit the investment of such unused balances in student loans. This change has been approved in meetings of the individual organizations participating in the funds and by the Executive Board of the fund. It has also been approved by the Committee on Student Affairs. Meetings soon will be held at the Chicago campus for the purpose of obtaining approval of a change in the Regulations identical to the change in the Code on Student Affairs permitting investment in student loans. Under the proposal approved balances available would be transferred to the University, which would act as the agent of the Student Organizations Fund and the Chicago Organizations Fund and loaned to students under the same policies as our other loan funds of the University. Interest received on such loans would be turned back to the Student Organizations Fund and the Chicago Organizations Fund, and, if at any time the Executive Board of either body requests that the principal amounts be returned, this would be done as notes are liquidated or otherwise converted into cash by the University. Inasmuch as such an arrangement would result in some loss of income to the Student Organizations Fund and the Chicago Organizations Fund because interest does not commence to accrue on loans until after the student leaves school, it is being recommended that the charge ordinarily made by the University against the funds for bookkeeping services be discontinued with the result that the Organizations Funds should suffer little or no loss on account of this change. If there are losses by failure to collect loans thus- made, the Organizations Funds will accept them, since the University is acting only as the agent of the funds in making these loans. Tt should be pointed out that under the General Rules Concerning University Organization and Procedure, Section 11 (i), student organizations funds must be kept apart from University funds, and no liability may be created on the part of the Board of Trustees. Approval of the acceptance and administration of these funds for loan purposes to be administered in accordance with the established policies of the University and discontinuance of the charge for bookkeeping services heretofore assessed against the Student Organizations Fund at the Urbana campus is recommended by the Vice-President and Comptroller and by the Dean of Students. Appropriate documents setting forth the arrangements between the Student Organizations Fund and the University will be prepared and executed. These arrangements have been approved by the Legal Counsel. Inasmuch as meetings on the Chicago campus have not as yet been held, approval in principle is also requested for identical arrangements between the Chicago Organizations Fund and the University. I concur. O n m o t i o n of M r s . W a t k i n s , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d , and a u t h o r i t y w a s g i v e n a s r e q u e s t e d . USE OF UNIVERSITY FACILITIES BY CANDIDATES FOR PUBLIC OFFICE (5) Two years ago the Board of Trustees approved the following resolution which had been passed by the Urbana-Champaign Senate and recommended by the President of the University: