4-20-12

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Northern Iowan t h e u n i v e r s i t y o f n o r t h e r n i o wa’s s t u d e n t - p r o d u c e d n e w s p a p e r s i n c e 1 8 9 2

APRIL 20, 2012

I

FRIDAY

VOLUME 108, ISSUE 52

INSIDE THIS ISSUE

CEDAR FALLS, IOWA

I

NORTHERN-IOWAN.ORG

BUDGET CUTS

What are unrestricted net assets?

VP Hager and Controller Shontz respond to Bunsis’ claims about the university’s budget OPINION

The ghetto on Hudson Road Columnist Early expresses concerns that the university’s smoking policy makes smokers a public spectacle. < See PAGE 4

Figures in millions. Graphic by John Anderson/Northern Iowan. Data from www.uni.edu/program-changes/net-assets

LINH TA

SPOTLIGHT

Soaking up the sun The UNI Solar Boat Team is preparing for this summer’s international competition, and this time they’re putting more power behind their craft than ever before. < See PAGE 6

CULTURE

MSA considers the art of Islamic architecture The Muslim Student Association wrapped up the semester with a multicultural dinner Tuesday. < See PAGE 6

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Staff Writer

n early April, Howard Bunsis, chair of the American Association of University Professors Collective Bargaining Congress, suggested in a lecture presented at the University of Northern Iowa the administration should use funding from the university’s $70.8 million in unrestricted net assets to cover UNI’s current deficit problem. However, Michael Hager, assistant vice president for student affairs and executive director of residence, said calling these funds unrestricted is misleading. “Unrestricted is an accounting term. And I can understand where the average person would say that there’s $71 million floating around,” Hager said. “It’s just not true, so that’s why we were clear to say that unrestricted does not mean uncommitted.” Net assets are the assets a university has minus their liabilities, according

to Hager. He explained that if a car is worth $10,000, and there is a $6,000 loan on a car, the remaining $4,000 would be the net assets. The university’s net assets are categorized into two different areas: restricted or unrestricted. Although some assets are called “unrestricted,” they are actually designated toward different areas and activities of the university. The Iowa Board of Regents requires portions of the unrestricted net assets to be used for certain things, such as $20 million in bond enterprise for building renovations. Other portions of these assets are reserved for health insurance, organized education activities and auxiliaries, such as parking and telephone equipment. In comparison to other peer institutions, Gary Shontz, university controller and secretary and treasurer of financial accounting and reporting < See UNRESTRICTED ASSETS, page 3

Unrestricted Net Asset Breakdown General Education Fund. These funds are primarily committed to building repair projects which were encumbered by June 30, 2011.

Bonded Enterprises. These funds are governed by the

respective bond indenture agreements for Academic Building Revenue Bonds, the Residence System, Maucker Union, Fieldhouse System and the Student Health System.

Non-Bonded & Misc. Auxiliaries. These funds include

Intercollegiate Athletics, Gallagher-Bluedorn Performing Arts Center, Wellness Recreation Center, Parking Operations (funds parking lot maintenance), Computer Resale, Registration Services and Old Auditorium Events.

Quasi Endowments. As a result of Principal Mutual

demutualization, this funding was declared as a permanent endowment by the Board of Regents. Interest income from these funds is used to help offset fringe benefit costs in the General Educational Fund.

Plant Funds. This group of funds includes the Telecom System, IT Equipment Replacement, Recharge Center Equipment Replacement, deferred maintenance and capital projects.

Organized Ed. Activities & Programs. Includes 709

accounts in the categories of faculty and departmental research, student organizations, technology replacement, student fees, health insurance and other benefits, programs and projects, and grant match.

FACULTY

SERVICE

Arbitrator rules UNI’s termination UNI students create books of finance professor wrongful for orphanages BLAKE FINDLEY

PANTHER PROFILE

Queen of the mound Sophomore pitcher Jamie Fisher continues to stifle opponents this season, leading the Panthers to a 16-1 record when she’s at the mound. < See PAGE 8

INDEX I SPY AT UNI......................2 OPINION............................4 CAMPUS LIFE....................8 SPORTS.............................9 GAMES............................10 CLASSIFIEDS...................11

Academics Writer

On April 6, independent arbitrator Ruth Weatherly, ruled against the University of Northern Iowa administration and Iowa Board of Regents in the case of the termination of Gordon Klein, a former UNI assistant professor of finance. She agreed with UNI United Faculty, which brought the issue to the arbitrator, that his termination was “at least in part for reasons that violated his academic freedom.” In her report, Weatherly said there were no university procedures affecting the man-

ner of Klein’s termination. She also said the reasons for his termination were inappropriate, and she therefore recommended a payment of two-thirds of the salary Klein would have received during the 2011-2012 academic year. Stacey Christensen, a spokeswoman for the university, said the administration believes they had acted appropriately with the details they were given. She said UNI President Ben Allen would carefully consider the arbitrator’s ruling, though UNI is not obligated to follow the ruling. < See RULING, page 2

ALLIE KOOLBECK

When due process is violated for one faculty member, it affects the entire university. That is why (United Faculty) took it to arbitration.

Cathy DeSoto

UNI United Faculty president

Editorial Staff

An orphanage in Haiti and another in Panama will receive a combined total of around 300 books in the upcoming weeks, thanks to a collaborative effort between students from the University of Northern Iowa, Wartburg College, Waterloo East High School and Cedar Falls High School. “I think this just shows the initiative and dedication of future teachers that are students here at UNI,” said Sarah Montgomery, the professor of the class at UNI that started the < See BOOKS, page 3


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