SAC releases figures on FY98 student group debt

Revealing individual group debts ranging from $6 to $42,269, the Student Activities Council released its Fiscal Year 1998 carry-over figures Thursday. Total SAC debt figures for the last fiscal year totaled $158,358.25 for approximately 150 groups. That number represents a $6,334.55 reduction from last year's sum. In an increase from the number of groups with a negative carry-over figure, 71 student groups will lose funding from their current budget this year. If a group has extra money left in its general account at the end of the year, that money is considered positive carry-over, and the group can use the money for its own purposes. In cases where there is negative carry-over, the group is in debt and SAC institutes a financial penalty. "The essence of carry-over is how much you owe SAC or how much you have in reserve," said SAC Executive Board member Jared Susco, a Wharton sophomore. Carry-over is calculated annually using a formula which takes into account a group's old carry-over figure, revenue, non-SAC expenses and amount spent over their allotted SAC grant. According to the Student Activities Manual, a student group in debt is supposed to lose 50 percent of its SAC grant or 50 percent of the value of its debt -- whichever is less -- with the levy going to debt reduction. Last year, however, SAC chose to lessen the severity of its policy by only assessing groups with a first-year debt at 30 percent of the grant or debt. According to the manual, groups in debt for the second year in a row should be assessed at 50 percent. But this year, groups who are again in debt are still only being assessed at 30 percent of the grant or debt. These collected funds will be placed in the SAC reserve fund, which is used to finance student group debt until the groups repay SAC. This year, Alternate Spring Break will lose $568.80 and Bloomers will lose $916.80. The Lesbian Gay Bisexual Association should lose $4,585.80, a figure which is actually double the amount of its SAC grant. In that instance, SAC will instead fine the LGBA 30 percent of its budget. Mask and Wig also has one of the largest debt carry-over figures and would be fined $11,728.50, but that number is almost four times the group's grant. Many of those groups losing a significant portion of their SAC funding this year are the same groups that were fined for indebtedness last year. "We've been in the process of paying back [our debt] for two years and the only reason it wasn't paid off was due to technical problems," said Mask and Wig Secretary-Treasurer Nathan Agam, a Wharton and Engineering senior. "We're expecting to have it paid off this year." It is unclear how SAC plans to assess money from the groups that have fines larger than their grants. In light of the current problems, SAC Chairperson and College senior Katie Cooper said SAC executive board members are working to revamp the body's debt policies. "We're working to create a better financial relationship [between the student groups and] the SAC Executive Board -- increasing education and awareness," Cooper said. SAC will also hold a training session this week for all new student group treasurers to explain funding guidelines and how to avoid future debt. Commenting on SAC's training program, Glee Club Business Manager Erick Wollschlager, a Wharton senior said, "As a former SAC Executive Board member, [I feel] training needs to be expanded. Most groups have no idea how they got into debt. If training is improved, the problem will lessen."