Wednesday, March 18, 2009

Alvine Schexnider, Skeletons in the Closet

TNCC folks have contacted Flagstiffed about their temporary president Alvin Schexnider who apparently thinks that payback is his mission in trying to bring the TNCC faculty into line. Word on the streets is that he's as bad or worse than Charles A. Taylor. When your only temporary you feel free to do all kinds of harm.

TNCC needs to know that Schexnider has his own skeletons. He's been bouncing around various jobs. Maybe you should find out why and find out what people think of him there.

When he was chancellor in NC he got caught using state funds for personal use. His administration was audited twice. The second audit found that his administration misplaced about half a million dollars. (What is it with these guys and half a million dollars? Look at Flagstiffed's reports on Taylor.) Flagstiffed has reported in detail on Charles A. Taylor's big spending habits. Here's the first auditors' letter about Schexnider (sent to Flagstiffed bya friend at TNCC):


July 16, 1999

Dr. Alvin J. Schexnider, Chancellor
Winston-Salem State
601 Martin Luther King, Jr. Drive
Winston-Salem, North Carolina

Dear Chancellor Schexnider:

The Office of the State Auditor received complaints through the State Auditor's Hotline alleging misuse of funds and violations of purchasing procedures at Winston-Salem State University WSSU). We conducted a Special Review of these allegations in accordance with G.S.§147-64.

In conducting this review, we examined WSSU and WSSU Foundation records and conducted interviews with individuals internal and external to WSSU. Our Special Review resulted in the following findings and recommendations to WSSU Management and the University of North Carolina General Administration (UNC-General Administration).

1. Disbursement from Discretionary Funds
In fiscal year 1997-98, WSSU's Internal Auditor conducted a review of expenditures incurred by the Chancellor from January 1996 through May 1998. We reviewed the Internal Auditor's workpapers as well as the expenditures incurred by the Chancellor from July 1998 through April 1999. Our review revealed that the Chancellor used discretionary funds to pay for some items that could be viewed as more personal than university related. Such items included travel expenses for his children, flowers for his wife, and membership in a fitness center. Although there are no general written guidelines for spending discretionary funds, these funds should be spent on items related to the University. To ensure protection for all parties concerned and an understanding on the part of the general public, UNC-General Administration should consider defining the utilization of discretionary funds.

2. Expenditures for Transporting Children to School
The Chancellor used State funds to pay mileage to a house worker from January 1998 through March 1998 to take his children to school. The total reimbursement for mileage was $416.62. On May 20, 1998 the Chancellor reimbursed the University this amount. According to the Chancellor, he reimbursed the University after being told that the expenditures were inappropriate. He did not reimburse the University, however, for the house worker's time spent to transport his children. Based on estimates received from the Chancellor of the time it would take to perform this task, the Chancellor should reimburse WSSU an additional $495. The Chancellor said he thought he had already reimbursed the University for the house worker's time.

3. Outside Contractors Clean the Chancellor's Residence and Maintain His Yard
The Chancellor's residence, located 8.5 miles from campus, is owned by the University. According to the Chancellor, the former Vice-Chancellor for Finance and Administration recommended outsourcing the housekeeping duties which had been done in the past by a university housekeeping employee. Outsourcing the housekeeping duties at the residence cost WSSU $92.50 per week for three hours of work. WSSU incurs a similar cost by using an outside contractor for landscaping tasks. The Associate Vice-Chancellor for Facilities recommended outsourcing the landscaping duties. Currently, the contractor mows the lawn once a week, performs minor landscaping duties and cleans away ice and snow for an agreed upon contract of $7,385 per year. WSSU should conduct a cost benefit analysis to determine the feasibility of continuing these contracts versus using university staff.

4. Some Items Purchased for the Chancellor's Residence Are Not On the University's Inventory System
A large screen television, a pool table, and a fax machine were purchased for the Chancellor's residence but do not show-up on the University's Fixed Asset Inventory. WSSU's inventory policy states that all purchases in excess of $500 must be recorded for inventory control purposes.

5. Invoices Are Not Always Paid on Time
We examined one hundred checks paid in September 1998 and one hundred checks paid in February 1999 to determine if they were paid by the due dates. In September 1998, WSSU wrote twenty-two checks out of the one hundred examined after the due date on the invoice. In February 1999, the number of late payments increased to thirty out of the one hundred examined. According to WSSU's Accounts Payable Supervisor, she and her staff were employed within the last year. The constant turnover of the staff in the finance area has resulted in the need to constantly train new employees. The Accounts Payable Supervisor said she is writing new procedures for her section, effective July 1, 1999, that should eliminate late payments, as well as any duplicate payments. We are presenting these findings and recommendations for your review and written response. The purpose of the response is to allow you the opportunity to outline any corrective actions taken or planned. We request that your written response be delivered to us by July 30, 1999.

While we have addressed the issues at WSSU in this management letter, it seems prudent for General Administration to review the need for developing policies and guidelines for the spending of discretionary funds. Adherence to such guidelines would ensure consistency and benefit all the chancellors within the system.

We wish to thank you and your staff for the cooperation extended to us during this review. If you have any questions do not hesitate to contact this office at 919/733-3217.

Ralph Campbell, Jr., CFE
cc: Dr. Molly C. Broad, President
UNC General