Oregon daily emerald., March 08, 1978, Section A, Page 3, Image 3

Straub requests housing
audit after letter campaign
By TOM WOLFE
Of the Emerald
Gov. Bob Straub requested Tuesday that
Norma Paulus, secretary of state, audit the Univer
sity Housing Department.
The audit request followed a series of letters
from Amazon tenants, Oregon Rep. Jim Weaver and
State Rep. Mary Burrows, R-Eugene, and others
asking that Paulus examine the department’s ac
counting and management practices.
“Considering the questions which have been
raised concerning housing office accounting prac
tices and the potential effect this could have on rent
increases, I think an audit of the office is appro
priate,” said Straub in a letter to Paulus.
“I urge you to prepare a report on the office’s
financial management as soon as possible.”
Paulus was already directing an audit of higher
education as a whole, expecting to release results in
a “few months.” But she is now expected to complete
a “spot audit” of the housing department for earlier
release.
Outcry for an audit began when the housing
department’s cost-accountant informed superiors
that a $37,270 building reserve fund had become a
$45,810 deficit. The housing office said the discrep
ancy resulted from inconsistent budget analysis.
Later examination by State Comptroller Ross
Hall found $67,000 in the reserve fund, $24,000
more than the one percent of replacement rate re
quired by the state.
While Hall’s finding laid aside fears that the re
serve funds were gone, it left tenants unsatisfied.
About 100 Amazon tenants wrote to Straub and
state representatives asking for an audit.
University Pres. William Boyd asked Roy Lieual
len, higher education chancellor, to support an audit
to “lay this situation to rest, one way or another.”
First citing earlier studies of housing department
budgeting and management, Boyd said “I believe
that the University would be best served if you could
arrange to have an audit by the appropriate division
of the office of the Secretary of State.”
Lieuallen supported Boyd’s request and for
warded a letter to Straub’s office March 1.
After internal audits, an independent audit last
year, and an ASUO review of that audit, Boyd says
he is anxious for completion of the state audit to settle
the issue.
Divestment
suggests American presence in
South Africa might be beneficial.
Another question to be consid
ered by Redden is whether former
Atty. Gen. Lee Johnson’s 1976
opinion on the two corre
sponding roles of the two state
bodies places control with the
board.
Johnson defined OIC’s role as
sub-agent to the board, which
PSAF, SALSC and ASUO labels
as merely an executory arm of
(Continued from Page 1A)
the state board.
This, of course, would mean the
OIC would have to follow state
board orders to sell the stocks.
The board sent a letter to the
attorney general consisting of 11
questions for Redden to consider
in making his decision. All the
questions centered around the
roles of the two state bodies and
ultimately who has the right to di
vest.
Nelson says Redden has re
quested the questions to be re
duced and consolidated so his
final opinion can be more easily
understood.
Don Chalmers of the Office of
Student Advocacy, says now that
the attorney general’s investiga
tion into the Oregon Liquor Con
trol Commission is winding down,
the divestment question might get
the immediate attention it de
serves.
Whatever Redden decides, it
looks as if it will be coming out this
spring — maybe.
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