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. A I a 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- I I 7 I I I I I I i