CSC clubs admit to off-campus bank accounts

Exhibit "G" of the APA's Management Letter, dealing with student organizations.

Exhibit "G" of the APA's Management Letter, dealing with student organizations.

In a Jan. 6 email from Nebraska State College System Chancellor Stan Carpenter stated that he was informed Jan. 5, “after the BKD report was issued some folks came forward to disclose other accounts.”

In the email, Carpenter stated that he understood that the APA’s office was already aware of the rodeo club’s account, art guild club account, and the health profession’s club account; however, Carpenter stated he was informed Jan. 5 of the existence of two additional club accounts – “I learned that the health professions club  had an additional account for the sports medicine program and the ag club had an account as well,” the email states.

Carpenter stated that, to his knowledge, all the clubs with known non-foundation accounts had been transferred to custodial accounts under the CSC’s foundation purview.

The auditor’s office followed-up on Carpenter’s email, asking on Jan. 23 when the accounts had been transferred to the CSC foundation, as well as account specifics, including what the purpose of the accounts was for, the individuals listed on the account, and the account’s bank activity for the past three years.

NSCS Vice-Chancellor for Finance and Administration Carolyn Murphy issued a reply on behalf of the System Office Jan. 24. In it, Murphy stated “The NSCS position remains that student accounts are not College funds. Use of such funds are directed by the students. In accordance with Dale Grant’s earlier response, Chadron State will not provide  the information requested regarding outside bank accounts of student clubs and organizations.”

Multiple calls to Murphy Wednesday went unreturned.


2 Responses to CSC clubs admit to off-campus bank accounts

  1. Rosanne Keepers-Penor

    I’m pretty sure the NSCS is not a sovereign yet they act as if they are. What other state agency thumbs their nose so obviously at the state auditor and gets away with it? This just gets worse and worse. Thanks for your great reporting.

  2. When your only defense is “you should not have been looking there” you don’t have much left to stand on. Kudos to the state auditor for standing his ground.All too often in todays world govt.officials bow to the pressure i’m sure he was under to drop or hide this to preserve the integrity of other state officials.They have been caught with their pants down and trying to throw someone else under the bus to cover it and hopefully will be penalized to the extent of their involvement.

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