The Michigan Daily - Friday, September 9, 1994 - 5
'U' pays
$38OOOI)
after IRS
review
By FRANK C. LEE
Daily Staff Reporter
The word "audit" is enough to
send achill down anyone's spine. But
individuals aren't the only ones who
fear the Internal Revenue Service.
Institutions across the nation, in-
cluding the University, are having
their books scrutenized for financial
jproprieties.
"About two years ago, the Internal
Revenue Service announced that they
would audit 20 colleges to try to get a
better handle on what these colleges
do," said University spokesperson
Lisa Baker. "The list has been ex-
panded. This has been gong on for at
least two years and I expect it will go
on for some time to come."
Research institutions like the Uni-
rsity have started to repay the fed-
eral government millions of dollars in
inappropriate orquestionable billings
rather than disputing them to avoid
publicity and cuts in funding.
The University sent a $380,512
check to the government to cover
costs the school deemed inappropri-
ate, including the cost to send admin-
istrators to see the University's foot-
team play inthe 1989 Rose Bowl.
Baker said the list of schools cho-
sen for the audit was random. "I would
presume that they try to pick a differ-
ent variety of schools. Each would
serve a different mission or focus."
Carl Smith, director of University
audits, said, "Individual agencies
within the federal government can
audit really anytime they want to."
Paul Biddle, an auditor for the
Mice of Naval Research, uncovered
nearly $200 million in questionable
billings at Standford University made
during the '80s for research over-
head. This audit brought the misuse
of federal research funds and imagi-
native bookkeeping practices by col-
leges into the national spotlight.
Among the use of taxpayer dollars
intended for scientific research,
dford billed Uncle Sam for fac-
y discounts on sporting events and
a portion of the costs of flowers,
bedsheets, tableclothes and antiques
for then-President Donald Kennedy.
Kennedy later resigned under a cloud
of public scrutiny following investi-
gations by a House subcommittee.
There are two types of research
costs. Direct costs are more account-
e and include researchers' sala-
lab supplies and other equip-
ment. Indirect costs, which are harder
to validate, include university-wide
expenses like utilities and building
maintenance, libraries, roads and ad-
ministration fees.
Each university charges the gov-
ernment a different rate for overhead
based on its profit, which includes the
school's energy and wage costs, and
size and age of its facilities. Rates
are determined by periodic negotia-
tions with the department of Defense,
Energy or Health and Human Ser-
vices.
The government will help pay
overhead costs, even if indirect ones,
if they relate to research. Stanford's
overcharging of taxpayers not only
illustrates how readily one can take
vantage of the system, but also how
i e elaborate billings of indirect costs
deplete funds that could be earmarked
for direct research costs.
BABY, YOU CAN PARK MY CAR
Engler rejects plan
for Indian casino in
Greektown area
4 JONATHAN LURIE/Daily
Students wait in line yesterday afternoon to apply for a parking space around the crowded campus.
Students staytuned to their
favorit sow i Uion U
Subway owner
hopes to add a few
more sets soon
By JOHN LOMBARD
For the Daily
Students visiting the Michigan
Union were given a new entertain-
ment option in the MUG with the
addition of a large color television in
the Mug's main seating area.
The television was donated by
Subway owner Dave Kelsy. His only
request was that if a University ath-
letic event was playing, the television
should be switched to that station.
Kelsy approached Union officials
to see if he could purchase four tele-
visions and install them in the Union's
Tap Room.
It was decided that the Tap Room
was a quiet area and should stay that
way. The compromise was to install
one television in the main seating
area on a trial basis.
The more crowded part of the
MUG was preferred by the Union
officials who thought that some stu-
dents might not appreciate having a
television in the MUG.
"Some people do not want a TV
around them," said Audry
Schwimmer, director of Union op-
erations. "We want people to feel
relaxed and enjoy themselves in the
Union."
A few television buffs might be
disappointed with the TV's location
near the Tap Room entrance, but
Schwimmer said the University had
few realistic installment options due
to the large amount of concrete and
stone in Union's basement.It is also
hard to find matching wood for the
areas that are being altered.
If the first television is well re-
ceived, Kelsy said another unit might
be placed in the lounge across from
the Subway.
Union custodian and student Kevin
O'Donohue said last Sunday there
were at least 20 to 30 people enjoying
an athletic event on the television.
A large crowd was viewing "The
Simpsons" on another occasion,
O'Donohue reports.
O'Donohue said the sound from
the television dominated the lounge
area. Kelsy said the noise problem
may be alleviated by the new ceiling
TV speakers that will direct the sound
down on the people watching. Unfor-
tunately, the wiring for the speakers
has hit a snag and may take time to be
sorted out.
Other new Union services will
include two electronic bulletin boards
on the first and basement floors. These
devices, which were supposed to be
installed by the start of classes, will
be similar to the residence hall elec-
tronic bulletin boards that are part of
the Housing Department's informa-
tion system.
Those electric boards list a Uni-
versity calendar of events, health ser-
vice messages and movies.
Schwimmer said the Union hopes to
tap into the Housing electronic sys-
tem by plugging in the Union's daily
schedule on the bulletin boards.
Schwimmer also hopes to reno-
vate the Union's fourth floor, which
still has some of the plumbing from
the turn of the original turn-of-the-
century hotel.
LANSING (AP) - Gov. John
Engler rejected yesterday a federally
approved plan to expand Indian ca-
sino gambling into Detroit's
Greektown area. Engler said he
doesn't agree with the plan "at this
time."
The governor said he wants to find
out what impact a casino would have
on Detroit's economy and social con-
ditions before giving his OK.
"The Greektown proposal still
does not meet one of my chief criteria
for approving an off-reservation ca-
sino in Detroit and that concerns over-
all economic development," he said.
"I want to know how this casino
fits into the larger economic policies
and blueprints that are being devel-
oped for southeast Michigan."
In a two-page letter to Interior
Secretary Bruce Babbitt, Engler said
he doesn't believe casino gambling is
a cure for Detroit's economic prob-
lems.
John Hatch, a representative of
the Sault Ste. Marie tribe of Chippewa
Indians, said the tribe never billed it
as a solution.
"We never proposed to know the
answers for Detroit's economic re-
birth," Hatch said in a telephone in-
terview. "What we know is that jobs
are the first step for recovery in any
community. The first step to the re-
covery of the Sault tribe and our cul-
ture was the jobs."
Engler also said allowing one tribe
to expand its gaming off its reserva-
tion could encourage the state's other
six federally recognized tribes to ap-
ply for similar expansions. He said
that could end up hurting the tribes
and the state.
"I'm concerned about the poten-
tial proliferation of off-reservation
casinos, not only in Detroit, but
throughout our state," he said.
Engler also said he is bothered by
the way the plan was approved. He
said the U.S. Interior Department
didn't conduct an independent inves-
tigation of claims made by and on
behalf of the tribe.
Hatch said he believes the plan
was given a fair and complete review.
"It was there for two years," he said.
Engler said the plan was resub-
mitted to the department just three
days before Babbitt approved it on
Aug. 18. Hatch said what was handed
to the department were finally an-
swers to questions that had been on
the table during investigations.
"We feel we presented a fair pro-
posal that would have benefited De-
troit and the Native American com-
munity," Hatch said.
Hatch said the tribe will repack-
age its plan to answer Engler's con-
cerns. But he said Engler has to make
his concerns more clear.
Hatch said the governor has never
met with tribal representatives and
hasn't clearly said what he sees as the
future for casino gambling in Mich-
gan.
"We have to determine the criteria
for his plan," Hatch said.
A spokesman for Detroit Mayor
Dennis Archer, Cliff Russell, said
Archer was waiting for more infor-
mation from Engler and didn't have
an immediate comment.
Greektown developer Ted
Gatzaros didn't immediately return a
telephone call seeking comment.
Detroit voters overwhelmingly
approved Aug. 2 an advisory pro-
posal to allow for a Greektown casino
and a similar question on riverboat
gambling.
Engler also announced late yes-
terday that he'd appointed 13 people
to a Commission on Gaming to study
the issue and report back to him.
Under Engler's executive order,
the commission must finish its work
before the 1995 legislative session
starts on Jan. 11.
The commission's report is due
30 days after its work is done, but it
can extend that deadline by up to 60
days if necessary.
MSA president hospitalized
after truck runs over foot
By JESSIE HALLADAY
Daily Editor In Chief
While Michigan fans jammed the
stands to cheer the team to victory in
the season's first football game, Julie
Neenan watched it from the emer-
gency room.
Before the game began, the Michi-
gan Student Assembly president broke
her foot when a trailer being pulled by
a pickup truck traveling west on
Hoover Street ran over her foot.
Neenan, an LSA senior, said
she was nudged off the curb just
as the truck drove by, running over
her left foot and breaking a bone
in her ankle.
Not wanting to miss the first game
of the year, Neenan tried to keep go-
ing but friends insisted she go to the
hospital.
After wearing a cast for four days,
she had two screws surgically placed
in her ankle Wednesday.
Despite the rocky start to the new
I'm not going to be
running around as
much as I normally
do.'
- Julie Neenan
MSA president
term, Neenan is adamant about main-
taining her duties as MSA president.
"I'm not going to be running
around as much as I normally do," she
said, "but, hopefully, I'll be able to
stay on top of things."
She will have to stay off her foot
for the next six weeks, using crutches
to get around. Despite her immobil-
ity, Neenan maintained a positive out-
look.
"I suck on crutches," she said with
a laugh. She said she plans to hobble
around campus and try to keep a smile
on her face.
Two-year-old child drowns m 'U' housing
By DAVID SHEPARDSON
Daily News Editor
University police are investigat-
ing the death of a 2-year-old child that
lived in University housing Aug. 31.
Police received a 911 call at about
10:35 p.m. last Wednesday, when the
child's babysitter, James Mark
Chatman, 30, a Michigan State Uni-
versity student, ran to neighbors say-
ing he could not resuscitate the child
after a fall into the bathtub.
The child, Jaylon Jones, lived in
Northwood V at 2509 Stone Dr.
Chatman was caring for Jaylon
and his twin sister. The children's
mother, Yvette Jones, was working
the evening shift at the University
Hospitals, where she is an employee
in the material management divi-
sion.
An autopsy was conducted Thurs-
day and results were not immediately
available, said University spokesper-
son Julie Peterson.
No charges have been filed in the
case.
If you have a talent for taking awe-inspiring photographs, The
Michigan Daily is looking for some skilled photographers. Come to
our portfolio review Sept. 14 at 7 p.m. for more information.
Correction
Adam Sandler's performance at Hill Auditorium last spring was sponsored by Greek Week. This was incorrectly
reported in yesterday's Daily.
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Friday
t U-M Shorin-Ryu Karafe-Do
Club, Men and women, begin-
ners welcome, CCRB, Room
2275, 6-7 p.m., 994-3620
Q Alcoholics Anonymous, Unity
AA group, closed discussion,
cross-addicts welcome, noon,
Michigan Union, 764-0594
1 School of Art, Opening Recep-
tion, M.F.A. Works, Slusser
Gallery, 5-8 p.m.
U Museum of Art, New Art
League ArtWalk, Beginners
JEWEL HEART IS HONORED TO PRESENT
"THE ART OF LIVING
v AND DYING -
A TIBETAN BUDDHIST VIEW
SUNDAY, SEPTEMBER 11, 1994
MICHIGAN LEAGUE BALLROOM
4-6 PM
A PUBLIC TALK BY
His HOLINESS GYALWA DRIKUNGPA
HEAD OFTHE DRIKUNG KAGYU LINEAGE OF TIBETAN BUDDHISM
HIS HOLINESS IS THE 37TH SUCCESSOR TO LORD JIGTEN SUMGON, 12TH CENTURY FOUNDER OF THE
DRIKUNG KAGYU ORDER OF TIBETAN BUDDHISM AND IS TOURING THE U.S. FOR THE FIRST TIME IN SIX
YEARS. HE WAS BORN IN LHASA, TIBET IN 1946 ON THE ANNIVERSARY OF THE LORD BUDDHA'S FIRST
TURNING OF THE WHEEL OF DHARMA AT SARNATH. AT THE AGE OF FOUR, HE WAS RECOGNIZED AND
ENTHRONED AS THE HEAD OF THE DRIKUNG KAGYU ORDER AND LATER RECEIVED HIS ORDINATION
FROM HIS HOLINESS THE DALAI LAMA. IN 1975, AFTER 10 YEARS OF WORKING ON A LABOR FARM
DURING THE CHINESE OCCUPATION OF TIBET, HIS HOLINESS GYALWA DRIKUNGPA SET OFF ALONE
ESCAPING TO NEPAL. SINCE THAT TIME HE HAS CONCENTRATED ON STUDY, MEDITATIVE PRACTICES
AND THE REORGANIZATION AND DEVELOPMENT OF DRIKUNG MONASTERIES IN INDIA.
HIS HOLINESS WILL BE SPEAKING IN ENGLISH WITH THE ASSISTANCE OF A TRANSLATOR, IF NEEDED.
TICKETS ARE $10.00 AND ARE AVAILABLE AT MICHIGAN UNION TICKET OFFICE - 313-763-TKTS
OR SHAMAN DRUM ON STATE AND N UNIVERSITY IN ANN ARBOR 313-662-7407
Hill St., 7 p.m.
Q Museum of Art Lecture/Recep-
tion, History Hidden in a Chi-
nese Scroll from "The Jade Stu-
dio," Angell Hall Aud. B, 8 p.m.,
747-2064
Q Welcome Weekend at St. Mary's
Student Parish, 331 Thompson
St., 663-0557
Q Peer Ministry Meeting, St.
Mary's Student Parish Center,
331 Thompson St., 2:30 p.m.,
663-0557
Sunday
cert, An Adventure in Chinese
Dances, Songs, Kung Fu and
Folk Arts, Power Center, 8p.m.
Q School of Music Concert, Fac-
ulty recital, Recital Hall, 8p.m.
Q Live Music, North Campus
Commons, Leonardo's, 8-10
p.m., 764-7544.
Q Welcome Weekend at St.
Mary's Student Parish, 331
Thompson St., 663-0557
Q Phi Sigma Pi Chapter Meet-
ing, Michigan Union, Crow-
foot Room, 7 p.m., 913-4523
Q U-M Gilbert and Sullivan So-
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