Repository: UIHistories Project: Board of Trustees Minutes - 1954 [PAGE 779]

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776

BOARD OF TRUSTEES

[July 25

gagement of the firm of Haskins and Sells of Chicago to make this audit for the year ending June 30, 1953. ( T h e previous year was the end of a five-year cycle during which George Rossetter and Company of Chicago were the auditors.) Since 1918 all disbursements from appropriations from state tax funds have been made on individual vouchers certified by, or on behalf of, the President and the Secretary of the Board of Trustees to the Auditor of Public Accounts, and after examination paid by that officer on individual warrants directly to payees named in the vouchers. Since 1933 this method also has been followed with respect to all income of the University other than that from trust and federal funds. In 1951 the General Assembly expanded the power of the Auditor of Public Accounts to provide that he "shall audit, or cause to be audited, the records of all agencies or authorities receiving, expending, or contracting for the receipt or expenditure of money on behalf of the state." In connection with the consideration of Senate Bill 141 in the Sixty-eighth General Assembly (a bill to provide that certain funds may be retained in and disbursed from the treasury of the University) the General Assembly added a specific provision that "the Auditor of Public Accounts shall audit, or cause to be audited, the above items of income and all other income and expenditures of such institutions." (This bill applies to not only the University of Illinois but also the other state-supported institutions of higher education.) In keeping with past practice, the State Auditor, Mr. Orville E. Hodge, was furnished a copy of the report of George Rossetter and Company for the year ending June 30, 1952. H e also received a copy of the published report of the Comptroller for the same period. H e indicated to the Comptroller his desire to have the audit of the University carried out by accountants selected by him. A brief discussion with the President of the Board followed, as a result of which there was a conference on June 12, 1953, with Auditor Hodge, participated in by the President of the Board, the Chairman of the Policy Committee, and the Comptroller. ( T h e Chairman of the Finance Committee was unable to attend.) Mr. Hodge indicated that under the law he considers he has the authority to audit the accounts of the University. This fact is undisputed by anyone. H e also stated that it is his intention to carry out his responsibility and actually make this audit. Mr. Hodge stated that the audit he desires to make would probably cost $30,000 and it is his practice to ask the agency to pay one-third of the cost. H e was informed that auditors for the current year had already been engaged by the Board and an agreement entered into with them, at a maximum cost of $12,000. There was considerable discussion as to the scope of the present audit and Mr. Hodge stated that it does not give him the information he needs to have in his office concerning the University. Mr. Hodge stated that he believed an audit carried on under his direction would improve public relations and the relations of the University with the General Assembly. H e indicated that he would expect to have the work performed by a firm of certified public accountants selected by him. At this meeting it was agreed that the Comptroller would arrange a meeting between representatives of the Auditor and Haskins and Sells to work out such coordination between the two audits as would be possible and particularly to eliminate unnecessary duplication. On June 19, 1953, such a conference was held with representatives of George Rossetter and Company and Haskins and Sells and both accounting and legal representatives of the Auditor, as well as the Comptroller and Assistant Comptroller. The scope of the previous audit and the tentative scope for the prospective audit by University auditors were discussed. Questions were asked in considerable detail by representatives of the Auditor's office. It was agreed that at a later date the latter would contact the representatives of Haskins and Sells and review further the possibilities of a mutually satisfactory division of work. The audit by Haskins and Sells was initiated in the latter part of June and is now in progress.

This report was received for record.

LAWS PASSED BY THE SIXTY-EIGHTH GENERAL ASSEMBLY OF ILLINOIS AFFECTING THE UNIVERSITY OF ILLINOIS (36) F o r the information of the Board a list of all Acts of the Sixty-eighth General Assembly of Illinois in its regular session of 1953 directly affecting