More Financial Irregularities

The following was forwarded to me anonymously:

Have you seen this e-mail?

Dear Senators:

As you may know, the UWM Internal Audit Department, in collaboration with the UW System Office of Operation Review and Audit, is presently conducting an audit of the UWM Student Association financial records. While the audit is not complete, we have discovered several irregularities that will require some additional explanation. I will be asking your President, Vice President, and Treasurer to meet with me in person as soon as possible to discuss these issues. In addition, if any of you has any information about SA financial matters that you think is relevant to the audit, please contact me.

Sincerely,

Paul W. Rediske
Director of Internal Audit
UW-Milwaukee
P.O. Box 413
Milwaukee, WI 53201

We will keep you informed of any developments as we get them.

For those of you who are waiting for news from the Senate meeting on November 12, I will post that when I get the chance. There is much to say.

Bad Call

The letter from Student Association President Samantha Prahl to the Director of UWM's Internal Audit division was already seen as a sign of desperation. But from the accounting people I have spoken to about it, the fact that she requested an independent audit is suspect in itself. Standard accounting practice is to let any internal audit division have first crack at the books.

While having an independent audit sounds good, having that be the first audit is suspect because there is too much leeway for bribery or coercion to affect the results, especially from the agency that commissioned the independent audit. So when Ms. Prahl offered an independent audit in lieu of the University audit, that only made people more suspicious . . .

The letter that triggered the lockdown

In addition to Interim Vice Chancellor of Student Affairs James Hill's letter informing Student Association of their denial of service, a copy of the e-mail that Samantha sent to the Director of UWM's Internal Audit Deparment was posted as well:

Date: October 18, 2006
To: Paul W. Rediske (Director, Internal Audit Department)
CC: Sherwood G. Wilson (Vice Chancellor, Finance & Administrative Affairs)
Sub: Student Association Audit

Director Rediske,

I would like to make the position of the Student Association clear; it is my intention, and the intention of the Student Association, to work with the university administration to conduct an audit of our financial accounts that is both just and preserves the integrity of an independent association. A very dangerous precedent is set when an independent association is subject to unbridled intervention by a co-equal in university governance. As such, it is our hope to continue the discussion to find an amenable solution that preserves the legitimacy of our independent association.

I ask that you please work with me to develop the most appropriate solution to this situation that will satisfy both parties.

In service,

Samantha Prahl
President
Student Association

Every Student Association I have witnessed has had delusions of grandeur, but calling itself a "co-equal in university governance" is a bit much. And if they are a co-equal, how can they be an independent association?

It also seems clear to me from the tone of this e-mail that Ms. Prahl was made aware that consequences would be forthcoming before sending it. If there is a working arrangement, or if there is progress being made toward one, there is no need for such language as "it is our hope to continue the discussion" or "I ask that you please work with me". These are the words that come a person who has been clearly told that her position is unacceptable and her refusal is about to get her in trouble.

If my supposition is correct, then President Prahl had one to two days notice that something along the lines of the lockdown was about to take place. Who else knew, and what did anyone do about it? She spoke at the meeting in the garage about how much harm is being done to students by the SA office being locked down. If she could have prevented the lockdown but failed to act, isn't part of the blame for that harm on her?