
[ Golden Gater Online - September 11, 1997 ]
Associated Students says the university accounting office is wasting its money.
For as long as anyone can remember, the university has always kept the books for student government. While the university says accounting is an important function of its duties to oversee campus auxiliary organizations, the AS business office thinks it can save thousands of dollars if it hired its own accountant.
Currently, $116,000 is paid to the university's fiscal affairs department -- more than one-fifth of the AS business office's operating budget.
"If we shopped around we could get it done for less," said Peter Koo, AS business manager. "If we bid it out, it could be done for $50,000 or $60,000."
Suzanne Michalik, manager of auxiliary accounting for fiscal affairs, agrees it might cost less to contract out the work, but explains that the university has a financial responsibility to assure funds are used properly.
"They forget about the custodial oversight," Michalik said. "People sometimes try to compare costs to an outside accountant. We do more than just books."
The fiscal affairs office conducts all the duties an accountant might, but offers more services, such as banking and financial advice for any student organization who asks for it. The office's fee is based on the amount of time accounting clerks spend doing the books, according to Michalik.
Rarely will universities allow student governments to keep track of its own finances, Michalik said. Campuses that do, almost always have a direct employee of the university handling the accounting -- which has always been the policy at SF State.
Koo, who was hired by AS 14 years ago, said student government officers at SF State have historically had a tenuous relationship with the administration.
"They created the rules and are making us pay for them." said Koo, who figures the money saved could go to new programs and more student organizations. "The university justifies having a hand in the organization through the accounting."
But Michalik explained the university doesn't influence how AS spends its money and keeps its hand out the cookie jar, unless there seems to be a misuse of funds. Koo agreed that barring something out of the ordinary, the university will not involve itself directly with AS finances.
[ Golden Gater - September 11, 1997 ]