Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 425]

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422

BOARD OF TRUSTEES

[August 5

Until new rules, regulations, and classifications are devised and approved, the University should be guided by and should follow the rules and procedures of the State Civil Service Commission, insofar as this is practicable. T h e Board of Trustees has previously appointed Mr. Lloyd Morey, Comptroller, and Mr. C. A. Webber, Bursar, to act as appointing officers for University positions under the State Civil Service. I recommend that pending a permanent organization of the University Civil Service System, these officers be authorized to continue to act as appointing officers for positions under the University Civil Service, and that they be authorized to act for the University in carrying out the provisions of the new law, including approval of appointments subject to examination, approval of all documents relating to appointments, transfers, and removals; provided that the acts of these officers shall al all times be subject to instructions from and review by the President of the University.

On motion of Mr. Karraker, these recommendations were adopted.

DEPOSIT OF FEDERAL FUNDS (26) On October 21, 1940 (Minutes, page 106), the Board was advised that the United States Department of Agriculture had called on the University to deposit in separate bank accounts all money received under acts of Congress making grants for agricultural research and extension. Such a procedure would be contrary to the practice followed by the University for many years and the general practice in such matters, under which money received is deposited in a separate account with the Treasurer, the Comptroller maintaining such accounts as are necessary to show at all times the distribution of these deposits by funds. T h e Department of Agriculture based its demand on a requirement of the Comptroller General. The Board authorized the President to continue discussions of this matter with the Comptroller General and the Secretary of Agriculture for the purpose of securing a modification of the ruling. This has been done. T h e University Counsel and the University Comptroller have worked diligently in preparing briefs and arguments to support the University's position. A complete outline of the procedure followed by the University was also prepared. These documents were submitted to the Secretary of Agriculture with the request that they be presented to the Comptroller General. This was done and we have received a ruling of the Comptroller General under date of July 25, 1941, giving approval to our method of procedure so far as that office is concerned. T h e conclusions of the Comptroller General are contained in the following extract from his ruling: " . . . . the original requirement by this office that separate bank deposits be maintained was primarily for the purpose of safeguarding the rights of the Federal Government to any interest which might accrue on such deposits. It now appears from your submission that no interest is being paid on demand deposits of Federal funds, with one exception. Accordingly, the principal reason for the requirement—which is not a statutory one—of separate bank deposits has been eliminated. "Accordingly, if it be administratively determined that the procedure recommended by the University of Illinois will enable your Department to ascertain whether the conditions of the respective grants have been fully complied with, and the interests of the Government otherwise are fully protected, this office will no longer require that separate bank deposit accounts be maintained for such funds when no question of interest thereon is involved." T h e Department of Agriculture, in submitting our request to the Comptroller General, indicated that so far as it was concerned ". . . . the plan proposed by the University of Illinois appears feasible of operation." Since the Department has based its requirement on a ruling of the Comptroller General, which has now been modified, it appears unlikely that the requirement will be further pressed.

On motion of Mr. Davis, this report was received for record and the Secretary was instructed to communicate to the University Counsel