Group Finances Erratically Regulated

No one is talking about allegations that two Yearbook officials stole thousands of dollars from the century-old publication.

A source at the Yearbook told The Crimson that President Yulia Shapiro '95 and Business Manager Esther C. Chang '95 embezzled Year-book funds, misrepresented the organization and mismanaged it in their tenure.

This may sound like an isolated incident, but in the past year at least two other Harvard groups have had similar problems.

Last fall, former and current members of the Harvard a capella group Krokodiloes said its former business manager Kyle E. Kimball'95 had spent approximately $3000 of the Kroks' money on personal items such as clothing from a Gap store in Kansas.

Kimball acknowledged his wrongdoing and has agreed to repay the money, according to members of the group.

And the Eliot House Evening with Champions scandal, in which Charles X. Lee '93 recently pleaded guilty to stealing $120,000 of funds dedicated to helping children with cancer, made national news.

The three cases raise serious questions about the College's involvement in the finances of its officially recognized student groups:

Should the Dean of Students office monitor organizations more closely?

Should organizations be required to establish stricter procedures for handling funds?

Should the College publicly acknowledge instances of financial impropriety?

Yearbook

In the case of the Yearbook, a lone staffer spoke out about the fact that Chang and Shapiro allegedly abused their positions, wasting thousands of Yearbook dollars.

Chang slammed her door in a reporter's face and denied that she was in her Quincy House room. She later called the Harvard University

Police Department and said she had beenharassed.

Shapiro did not return over 20 calls to herroom over a three-week period.

Although those responsible are not talking, theprice of each Yearbook this May could be severaldollars higher as a result of the misspent funds,which allegedly went toward phone calls to Koreaand founding a failed female final club.

Tracy C. Morris '95 and Christine M. McElroy'95, editors-in-chief, did not deny theallegations of financial improprieties but refusedto comment on them.

"I don't want to hurt anyone," McElroy said.

Chang is seeking a high-paying investmentbanking job, and sources say she is upset thatthese allegations may damage her recruitingchances.

But if Harvard's record is any indication, herpotential employers may not hear about her removalat all.

Disincentives to Embezzle?

The College's current system of oversight isnot stringent enough to dissuade would-becriminals, many student leaders said this week.

Most official student groups are nonprofitorganizations under Massachusetts law, with theirown bank accounts over which the president ortreasurer holds financial power.

Joshua A. Feltman '95, former president ofPerspective, said that in his term, hecould have embezzled $25 each month and gottenaway with it easily.

"When I was president, I would charge stuff forthe organization to my credit card, or use cash,and then I would write myself checks," Feltmansaid.

"If you look on the computer atPerspective, I'd say 25 percent of thechecks were made out to Josh Feltman," he said."If someone went through our books, they wouldprobably be wise to conclude I was embezzlingmoney."

Feltman says all of those checks werereimbursements for business expenses.

Of course $25 dollars a month does not compareto the average $10,000 Lee stole each month, andthe University has instituted a series of checkson An Evening With Champions to prevent futureabuse.

Although many student group leaders said theywould not be bothered by increased Collegemonitoring, most said they did not see whatfurther steps the College could take.

"I'm not really sure exactly what they coulddo," said Jenny L. Soriano '95, former coordinatorof Light-house, a quarterly publicationconcentrating on women's issues. "It would havebeen a hassle more than anything else."

None of the leaders of the groups interviewedexcept Evening With Champions said they arerequired to do more than submit an annual reportto the Dean's office.

"We actually go through an internal audit withthe University," said Spencer J. Lee '95, outgoingtreasurer of the 1994 Evening With Champions. "Weare required to keep all our [past] records inUniversity Hall."

That sometimes becomes frustrating, Lee said.

"This year, we did a big mailing based on pastdonors," Lee said. "[With the records] being atUniversity Hall, it makes it difficult--it'sannoyingly inconvenient."

But Lee said he still thinks such stringentcontrols are a good idea.

"The danger isn't, I think, that it's going toreoccur in the short-term, but it could reoccur inthe long term," the outgoing Evening WithChampions treasurer said. But "embezzling largeamounts of money now would be impossible," hesaid.

Administrative Efforts

To combat financial improprieties, Dean ofStudents Archie C. Epps III said last month hisoffice is looking into two remedies: examininggroups' annual reports more closely and offeringbusiness seminars to financial leaders of studentgroups.

For about five years, the Dean of Students'office has required that student organizationsfile an annual financial report in October, Eppssaid. This year, the office "made an effort to beespecially careful" as "the result of our recentexperience with some college groups," Epps said.

"Generally, we're trying to figure out ourrisks," Epps said. "We are trying to find out moreabout the finances so we can then publish a moredetailed set of guidelines about record-keeping,and then recommend controls, such as that thereshould be two signatures on every check."

But Feltman said that the required financialstatements are meaningless.

"We're required to submit a budget which isvery general," Feltman said. "It's kind of ajoke."

On the other hand, Susan S. Kim '96, presidentof the Korean Student Association (KSA), said theorganization submitted an annual report to Epps'office last year that showed KSA was running adeficit.

"They called up and asked how we planned toraise the money," Kim said.

In a more proactive step than collecting annualreports, Epps said his office will offer businessseminars to student groups. The training will notbe mandatory, but a representative must attend ifstudent groups want College funds, he said.

About 10 student groups will participate in apilot program this spring run by accountant JohnA. Tyler.

"I'd say that the seminars are going to coverthree themes," said Tyler, who is president ofJohn A. Tyler Associates. Tyler is the accountantfor a number of Harvard organizations, includingHarvard Model United Nations (HMUN), which is partof the International Relations Council (IRC).

"The basic theme in asking the question aboutmoney is what happened and what's left...what camein, what went out, the transactions," Tyler said."The second part of that is to talk briefly abouthow one tracks money flow...The third part wouldbe some analytical tools."

Epps said his office may offer accountingsoftware along with the training. The office isrequesting about $5000 per semester from theUniversity to pay for the training.

Student leaders asked about the budget seminarssaid they would be a good idea, especially forstudents unaccustomed to handling money for anorganization.

"I think [the seminars] would be helpful,because the way I learned how to do my job wastalking to the treasurer from the year before,"said David S. Yoon '95, former treasurer of theAsian American Association (AAA).

The purpose of the seminars, according to Deanof the College L. Fred Jewett '57, is to "trainpeople who may not be experienced [in handlingmoney]."

But knowing how to handle money doesn't ensurehonesty, as demonstrated by the Evening WithChampions scandal.

"If you explain to a person how a machineworks, that can't stop them from misusing themachine," Tyler said. "I think the idea is toexplain to those people who have the interests ofthe organization at heart on how to, by use ofprocedures, make it more difficult to embezzle."

To protect funds from dishonesty rather thanfrom inexperience, Jewett said, student groupsmust monitor themselves more carefully.

"I think the organizations have to takeresponsibility for who they pick and for callingattention to mistakes," Jewett said. "Some of thegroups do, and when they find out there has been aproblem, they report it."

Such precautions are not difficult to take,Jewett said.

"It doesn't take much control to prevent astudent from writing a $120,000 check to himself,"Jewett said in reference to the Evening WithChampions mismanagement. "All you need is a dualsignature on a check."

Checks and Balances

Some organizations, such as HMUN, Harvard Band,Harvard Student Agencies (HSA), Phillips BrooksHouse Association (PBHA) and now Evening WithChampions already have such precautions in place.

"We have a set budget that we go by--each lineitem is subdivided and must be approved," saidAngela A. Sun '96, treasurer of HMUN.

Spending policies are reviewed twice a month bythe comptrollers, and only the comptrollers andthe treasurer have check-writing powers, Sun said.

The Harvard Band is unusual because it has afull-time faculty advisor, said Band Manager GrantM. Dixton '96.

Both Dixton and the band's treasurer haveaccess to all the records, Dixton said, and everycheck must be double-signed.

"We makes Dean Epps' job easy," Dixton said."If there were ever a problem, it almostdefinitely would be caught internally."

Two of Harvard's largest student organizationshave administrative or professional checks builtin.

"We have someone on staff full-time who isbasically a bookkeeper, because of the amount ofmoney we have coming in and out every day," saidAndrew J. Ehrlich '96, treasurer of PBHA, whichhas an annual gross revenue of $1.5 million.

"It would be absolutely impossible to embezzle$10,000," Ehrlich said. All checks must becosigned by two of three people, according toEhrlich, and the organization is audited by anindependent corporation every year because of itsnonprofit status.

HSA is also unusually stringent with itsfinancial safeguards.

The organization has an adult controller andtwo assistant managers, President Larry W. Cheng'96 said.

Richard M. Olken '67, HSA's general manager,who is a University officer, said that Jewett andDean of Admissions and Financial Aid William R.Fitzsimmons '67 are on HSA's board of directors,which meets each month.

"The idea of our audit...our oversight, is tomake sure that people don't have to focus on thoseitems as much as on doing their job," Olken said.

But PBHA and HSA finances are remarkablywell-structured in comparison to other campusgroups.

Olken said he is "sometimes shocked" to hearthat other organizations don't have similarcontrols.

Some of the leaders interviewed said they don'thave enough money to worry about misuse.

"It would be pretty hard to embezzle money,"said Jessie K. Liu '95, former treasurer of theHarvard Advocate. "We don't have thatmuch."

Non-commercial organizations do not usuallydeal with large amounts of money, said Yoon, AAA'sformer treasurer.

"Our mission is not as a business," Yoon said.

President of the Catholic Student Association(CSA) Matthew J. Paschke '95 said he agrees.

"The [annual] budget of the Catholic StudentAssociation is $300," so it would not matter thatmuch "even if someone did embezzle it," Paschkesaid.

Another Tale

Sometimes, the Dean of Students' office isn'tthe first authority to find out about moneytroubles.

In 1992 and 1993, the Harvard Computer Society(HCS) was thousands of dollars in debt, accordingto former HCS president Eugene E. Kim '96.

But it was only when the publisher of theHarvard Computer Review, Turley Publications,called Flatley's office that the dean began tolook into the group's finances, Kim said.

"The administration takes a fairlylaissez-faire attitude about this," Kim said.

By the time Flatley and Epps talked to HCS, Kimsaid, the group was on its way back to the black,with a business manager who was recruitingstaffers and getting the organization out of debt.

After that initial contact, Kim said HCS hadmuch more constant contact with the dean's office.

But even today, when Harvard ComputerReview is flourishing in an on-line format andHCS is in the black, Kim said that it would beeasy to embezzle money.

"It's harder to do now because we have moreaccountability, in that the business managerdoesn't have total control of the accounts," Kimsaid. "But the business manager enters theinformation and holds sole check-signingresponsibility."

And although current Business Manager Roland W.Ho '97 is trust-worthy, in the future, there areno promises, Kim said.

"Honestly, I can't guarantee five years downthe line that the business manager of HCS isn'tgoing to be this unethical guy pumping theorganization's money into his own funds," Kimsaid.

Publications' Finances

Publications tend to have alumni graduateboards that are ultimately responsible for thegroups and their finances.

The Advocate, founded in 1866, has atrust fund controlled by Epps and its NewYork-based board of trustees, Liu said.

"None of it is really in my hands," said Liu."When we need money we have to ask the trusteesfor it."

The Crimson, which is financially independentfrom the University, also has an alumni board toensure financial responsibility.

The Harvard Lampoon, a semisecret socialorganization on Bow Street that occasionallypublishes a so-called humor magazine, also hastrustees, according to Treasurer Daryna M. McKeand'96.

McKeand said that the composition of the boardis confidential, but added that she makes mostfinancial decisions without review.

And although the Harvard Independent wasfounded relatively recently, in 1969, it too has agraduate board, founded in the 1970s.

"[The] graduate board looks over our financesseveral times a year and that we call on foradvice on financial and other matters as we needto," said former president Ellie Grossman '95.

Harvard Funds

Student leaders interviewed noted Harvard'sdecentralized system of funding studentorganizations.

Groups apply for grants from the UndergraduateCouncil, the Office for the Arts, the HarvardFoundation for Race Relations and InterculturalAffairs, academic departments and other Harvardoffices.

Thus tracing how much money a group has raisedis somewhat complicated, some student leaderssaid.

And, when embezzling occurs, more likely thannot Harvard money--paid for by student tuition,endowment, and other traditional funds--has beentaken.

In the Yearbook's cases, the cost of thisyear's book may increase. The Kroks and EveningWith Champions are not as affected, because theembezzlers promised to return the funds taken,sources said.

Privacy

Strict controls of student groups' financesmight not be necessary if Harvard publicized casesof financial wrongdoing, as is currently done atother colleges.

The University has a policy of not releasinginformation about disciplinary actions takenagainst individuals, Epps said.

"Officials of the College can never discuss theindividual circumstances of a student because ofthe Federal privacy laws," Epps said. Thedisclosure law, as Harvard interprets it,continues indefinitely.

Not only do College officials refuse to commenton disciplinary matters, they discourage studentsinvolved from talking about them.

Last year, members of the Kroks said thatAssistant Dean of Students Sarah E. Flatley toldthem not to talk about the allegations ofembezzlement.

And last month, the Yearbook source said thatFlatley had threatened staffers with legal actionif they publicly spoke about the alleged problemswith Chang and Shapiro.

Flatley said that she could not comment onindividual student groups, while Epps denied theallegation.

Epps said that members of the yearbook weretold that "no final decision had been made, and itwas probably best not to discuss things at thispoint."

The non-disclosure policy "is not to protectour liability," Epps said. "We want to protect theprivacy of a student, out of fairness."

But other colleges, such as Tufts andDartmouth, release information about disciplinaryactions after cases are closed.

"[Tufts] reports any disciplinary action to thecampus newspapers without mentioning any names,"said Marie Waller, secretary in the Tufts dean ofstudents office. "I just assumed they did it as amatter of being in touch and having people knowwhat's going on on campus."

And Marcia J. Kelly, Dartmouth's undergraduatejudicial affairs officer, said that by printing anannual report with no names--just the violationsand the results--the college hopes to detersimilar offenses.

"We think it's important that the community asa whole has some sense of how the disciplinarysystem is working," Kelly said. "It is certainlypart of our hope that it provides some educationthat there are certain outcomes for certainactions on campus."

Student Responsibility

Although disclosure and regulation may impactfiscal accountability, students and administratorssay the ultimate responsibility for group financeslies with the students in charge.

"It's definitely a matter of trust," Yoon said.

Feltman said he is confident that Perspectiveattracts reliable members but that he has lessfaith in the rest of Harvard's student body. Othergroup leaders voiced similar sentiments abouttheir own responsibility.

"[The lack of College oversight] doesn't botherme at Perspective because I believe the culturewill selfreproduce honest and trustworthy people,"Feltman said. "But do I have a particular amountof faith in Harvard students in general? No."

Jewett said that in the final analysis, studentorganizations should be run by students.

"Essentially I think you're asking, 'Shouldthere be student organizations or should they allbe university-run?" Jewett said. "I think I knowyour answer."Crimson/PhotographerLARRY W. CHENG '96, president of HarvardStudent Agencies

Police Department and said she had beenharassed.

Shapiro did not return over 20 calls to herroom over a three-week period.

Although those responsible are not talking, theprice of each Yearbook this May could be severaldollars higher as a result of the misspent funds,which allegedly went toward phone calls to Koreaand founding a failed female final club.

Tracy C. Morris '95 and Christine M. McElroy'95, editors-in-chief, did not deny theallegations of financial improprieties but refusedto comment on them.

"I don't want to hurt anyone," McElroy said.

Chang is seeking a high-paying investmentbanking job, and sources say she is upset thatthese allegations may damage her recruitingchances.

But if Harvard's record is any indication, herpotential employers may not hear about her removalat all.

Disincentives to Embezzle?

The College's current system of oversight isnot stringent enough to dissuade would-becriminals, many student leaders said this week.

Most official student groups are nonprofitorganizations under Massachusetts law, with theirown bank accounts over which the president ortreasurer holds financial power.

Joshua A. Feltman '95, former president ofPerspective, said that in his term, hecould have embezzled $25 each month and gottenaway with it easily.

"When I was president, I would charge stuff forthe organization to my credit card, or use cash,and then I would write myself checks," Feltmansaid.

"If you look on the computer atPerspective, I'd say 25 percent of thechecks were made out to Josh Feltman," he said."If someone went through our books, they wouldprobably be wise to conclude I was embezzlingmoney."

Feltman says all of those checks werereimbursements for business expenses.

Of course $25 dollars a month does not compareto the average $10,000 Lee stole each month, andthe University has instituted a series of checkson An Evening With Champions to prevent futureabuse.

Although many student group leaders said theywould not be bothered by increased Collegemonitoring, most said they did not see whatfurther steps the College could take.

"I'm not really sure exactly what they coulddo," said Jenny L. Soriano '95, former coordinatorof Light-house, a quarterly publicationconcentrating on women's issues. "It would havebeen a hassle more than anything else."

None of the leaders of the groups interviewedexcept Evening With Champions said they arerequired to do more than submit an annual reportto the Dean's office.

"We actually go through an internal audit withthe University," said Spencer J. Lee '95, outgoingtreasurer of the 1994 Evening With Champions. "Weare required to keep all our [past] records inUniversity Hall."

That sometimes becomes frustrating, Lee said.

"This year, we did a big mailing based on pastdonors," Lee said. "[With the records] being atUniversity Hall, it makes it difficult--it'sannoyingly inconvenient."

But Lee said he still thinks such stringentcontrols are a good idea.

"The danger isn't, I think, that it's going toreoccur in the short-term, but it could reoccur inthe long term," the outgoing Evening WithChampions treasurer said. But "embezzling largeamounts of money now would be impossible," hesaid.

Administrative Efforts

To combat financial improprieties, Dean ofStudents Archie C. Epps III said last month hisoffice is looking into two remedies: examininggroups' annual reports more closely and offeringbusiness seminars to financial leaders of studentgroups.

For about five years, the Dean of Students'office has required that student organizationsfile an annual financial report in October, Eppssaid. This year, the office "made an effort to beespecially careful" as "the result of our recentexperience with some college groups," Epps said.

"Generally, we're trying to figure out ourrisks," Epps said. "We are trying to find out moreabout the finances so we can then publish a moredetailed set of guidelines about record-keeping,and then recommend controls, such as that thereshould be two signatures on every check."

But Feltman said that the required financialstatements are meaningless.

"We're required to submit a budget which isvery general," Feltman said. "It's kind of ajoke."

On the other hand, Susan S. Kim '96, presidentof the Korean Student Association (KSA), said theorganization submitted an annual report to Epps'office last year that showed KSA was running adeficit.

"They called up and asked how we planned toraise the money," Kim said.

In a more proactive step than collecting annualreports, Epps said his office will offer businessseminars to student groups. The training will notbe mandatory, but a representative must attend ifstudent groups want College funds, he said.

About 10 student groups will participate in apilot program this spring run by accountant JohnA. Tyler.

"I'd say that the seminars are going to coverthree themes," said Tyler, who is president ofJohn A. Tyler Associates. Tyler is the accountantfor a number of Harvard organizations, includingHarvard Model United Nations (HMUN), which is partof the International Relations Council (IRC).

"The basic theme in asking the question aboutmoney is what happened and what's left...what camein, what went out, the transactions," Tyler said."The second part of that is to talk briefly abouthow one tracks money flow...The third part wouldbe some analytical tools."

Epps said his office may offer accountingsoftware along with the training. The office isrequesting about $5000 per semester from theUniversity to pay for the training.

Student leaders asked about the budget seminarssaid they would be a good idea, especially forstudents unaccustomed to handling money for anorganization.

"I think [the seminars] would be helpful,because the way I learned how to do my job wastalking to the treasurer from the year before,"said David S. Yoon '95, former treasurer of theAsian American Association (AAA).

The purpose of the seminars, according to Deanof the College L. Fred Jewett '57, is to "trainpeople who may not be experienced [in handlingmoney]."

But knowing how to handle money doesn't ensurehonesty, as demonstrated by the Evening WithChampions scandal.

"If you explain to a person how a machineworks, that can't stop them from misusing themachine," Tyler said. "I think the idea is toexplain to those people who have the interests ofthe organization at heart on how to, by use ofprocedures, make it more difficult to embezzle."

To protect funds from dishonesty rather thanfrom inexperience, Jewett said, student groupsmust monitor themselves more carefully.

"I think the organizations have to takeresponsibility for who they pick and for callingattention to mistakes," Jewett said. "Some of thegroups do, and when they find out there has been aproblem, they report it."

Such precautions are not difficult to take,Jewett said.

"It doesn't take much control to prevent astudent from writing a $120,000 check to himself,"Jewett said in reference to the Evening WithChampions mismanagement. "All you need is a dualsignature on a check."

Checks and Balances

Some organizations, such as HMUN, Harvard Band,Harvard Student Agencies (HSA), Phillips BrooksHouse Association (PBHA) and now Evening WithChampions already have such precautions in place.

"We have a set budget that we go by--each lineitem is subdivided and must be approved," saidAngela A. Sun '96, treasurer of HMUN.

Spending policies are reviewed twice a month bythe comptrollers, and only the comptrollers andthe treasurer have check-writing powers, Sun said.

The Harvard Band is unusual because it has afull-time faculty advisor, said Band Manager GrantM. Dixton '96.

Both Dixton and the band's treasurer haveaccess to all the records, Dixton said, and everycheck must be double-signed.

"We makes Dean Epps' job easy," Dixton said."If there were ever a problem, it almostdefinitely would be caught internally."

Two of Harvard's largest student organizationshave administrative or professional checks builtin.

"We have someone on staff full-time who isbasically a bookkeeper, because of the amount ofmoney we have coming in and out every day," saidAndrew J. Ehrlich '96, treasurer of PBHA, whichhas an annual gross revenue of $1.5 million.

"It would be absolutely impossible to embezzle$10,000," Ehrlich said. All checks must becosigned by two of three people, according toEhrlich, and the organization is audited by anindependent corporation every year because of itsnonprofit status.

HSA is also unusually stringent with itsfinancial safeguards.

The organization has an adult controller andtwo assistant managers, President Larry W. Cheng'96 said.

Richard M. Olken '67, HSA's general manager,who is a University officer, said that Jewett andDean of Admissions and Financial Aid William R.Fitzsimmons '67 are on HSA's board of directors,which meets each month.

"The idea of our audit...our oversight, is tomake sure that people don't have to focus on thoseitems as much as on doing their job," Olken said.

But PBHA and HSA finances are remarkablywell-structured in comparison to other campusgroups.

Olken said he is "sometimes shocked" to hearthat other organizations don't have similarcontrols.

Some of the leaders interviewed said they don'thave enough money to worry about misuse.

"It would be pretty hard to embezzle money,"said Jessie K. Liu '95, former treasurer of theHarvard Advocate. "We don't have thatmuch."

Non-commercial organizations do not usuallydeal with large amounts of money, said Yoon, AAA'sformer treasurer.

"Our mission is not as a business," Yoon said.

President of the Catholic Student Association(CSA) Matthew J. Paschke '95 said he agrees.

"The [annual] budget of the Catholic StudentAssociation is $300," so it would not matter thatmuch "even if someone did embezzle it," Paschkesaid.

Another Tale

Sometimes, the Dean of Students' office isn'tthe first authority to find out about moneytroubles.

In 1992 and 1993, the Harvard Computer Society(HCS) was thousands of dollars in debt, accordingto former HCS president Eugene E. Kim '96.

But it was only when the publisher of theHarvard Computer Review, Turley Publications,called Flatley's office that the dean began tolook into the group's finances, Kim said.

"The administration takes a fairlylaissez-faire attitude about this," Kim said.

By the time Flatley and Epps talked to HCS, Kimsaid, the group was on its way back to the black,with a business manager who was recruitingstaffers and getting the organization out of debt.

After that initial contact, Kim said HCS hadmuch more constant contact with the dean's office.

But even today, when Harvard ComputerReview is flourishing in an on-line format andHCS is in the black, Kim said that it would beeasy to embezzle money.

"It's harder to do now because we have moreaccountability, in that the business managerdoesn't have total control of the accounts," Kimsaid. "But the business manager enters theinformation and holds sole check-signingresponsibility."

And although current Business Manager Roland W.Ho '97 is trust-worthy, in the future, there areno promises, Kim said.

"Honestly, I can't guarantee five years downthe line that the business manager of HCS isn'tgoing to be this unethical guy pumping theorganization's money into his own funds," Kimsaid.

Publications' Finances

Publications tend to have alumni graduateboards that are ultimately responsible for thegroups and their finances.

The Advocate, founded in 1866, has atrust fund controlled by Epps and its NewYork-based board of trustees, Liu said.

"None of it is really in my hands," said Liu."When we need money we have to ask the trusteesfor it."

The Crimson, which is financially independentfrom the University, also has an alumni board toensure financial responsibility.

The Harvard Lampoon, a semisecret socialorganization on Bow Street that occasionallypublishes a so-called humor magazine, also hastrustees, according to Treasurer Daryna M. McKeand'96.

McKeand said that the composition of the boardis confidential, but added that she makes mostfinancial decisions without review.

And although the Harvard Independent wasfounded relatively recently, in 1969, it too has agraduate board, founded in the 1970s.

"[The] graduate board looks over our financesseveral times a year and that we call on foradvice on financial and other matters as we needto," said former president Ellie Grossman '95.

Harvard Funds

Student leaders interviewed noted Harvard'sdecentralized system of funding studentorganizations.

Groups apply for grants from the UndergraduateCouncil, the Office for the Arts, the HarvardFoundation for Race Relations and InterculturalAffairs, academic departments and other Harvardoffices.

Thus tracing how much money a group has raisedis somewhat complicated, some student leaderssaid.

And, when embezzling occurs, more likely thannot Harvard money--paid for by student tuition,endowment, and other traditional funds--has beentaken.

In the Yearbook's cases, the cost of thisyear's book may increase. The Kroks and EveningWith Champions are not as affected, because theembezzlers promised to return the funds taken,sources said.

Privacy

Strict controls of student groups' financesmight not be necessary if Harvard publicized casesof financial wrongdoing, as is currently done atother colleges.

The University has a policy of not releasinginformation about disciplinary actions takenagainst individuals, Epps said.

"Officials of the College can never discuss theindividual circumstances of a student because ofthe Federal privacy laws," Epps said. Thedisclosure law, as Harvard interprets it,continues indefinitely.

Not only do College officials refuse to commenton disciplinary matters, they discourage studentsinvolved from talking about them.

Last year, members of the Kroks said thatAssistant Dean of Students Sarah E. Flatley toldthem not to talk about the allegations ofembezzlement.

And last month, the Yearbook source said thatFlatley had threatened staffers with legal actionif they publicly spoke about the alleged problemswith Chang and Shapiro.

Flatley said that she could not comment onindividual student groups, while Epps denied theallegation.

Epps said that members of the yearbook weretold that "no final decision had been made, and itwas probably best not to discuss things at thispoint."

The non-disclosure policy "is not to protectour liability," Epps said. "We want to protect theprivacy of a student, out of fairness."

But other colleges, such as Tufts andDartmouth, release information about disciplinaryactions after cases are closed.

"[Tufts] reports any disciplinary action to thecampus newspapers without mentioning any names,"said Marie Waller, secretary in the Tufts dean ofstudents office. "I just assumed they did it as amatter of being in touch and having people knowwhat's going on on campus."

And Marcia J. Kelly, Dartmouth's undergraduatejudicial affairs officer, said that by printing anannual report with no names--just the violationsand the results--the college hopes to detersimilar offenses.

"We think it's important that the community asa whole has some sense of how the disciplinarysystem is working," Kelly said. "It is certainlypart of our hope that it provides some educationthat there are certain outcomes for certainactions on campus."

Student Responsibility

Although disclosure and regulation may impactfiscal accountability, students and administratorssay the ultimate responsibility for group financeslies with the students in charge.

"It's definitely a matter of trust," Yoon said.

Feltman said he is confident that Perspectiveattracts reliable members but that he has lessfaith in the rest of Harvard's student body. Othergroup leaders voiced similar sentiments abouttheir own responsibility.

"[The lack of College oversight] doesn't botherme at Perspective because I believe the culturewill selfreproduce honest and trustworthy people,"Feltman said. "But do I have a particular amountof faith in Harvard students in general? No."

Jewett said that in the final analysis, studentorganizations should be run by students.

"Essentially I think you're asking, 'Shouldthere be student organizations or should they allbe university-run?" Jewett said. "I think I knowyour answer."Crimson/PhotographerLARRY W. CHENG '96, president of HarvardStudent Agencies