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Madison employers in $100,000 debt to UW
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by Nick Penzenstadler
Thursday, March 1, 2007
The University of Wisconsin is still searching for answers after a review last fall showed more than 80 area employers owe the university $150,000.
According to Susan Fischer, director of financial aid at UW, the review revealed the deficit arose in UW's work-study program as a result of accounting errors.
So far, Fischer said $50,000 has been paid back to the university.
However, the reason for the fiscal shortfall, she added, is still unknown.
"It's been going on for several years," Fischer said. "There is some confusion internally and externally, [but] I'm confident the bills have been going out."
Fischer said 82 of the 266 off-campus employers included in the work-study program still owe money to the university.
The Madison Metropolitan School District, along with its recreation program, owes the largest chunk of money, totaling approximately $75,000.
Meriter Health Services, Wisconsin Historical Society and the Madison Hostel also owe substantial amounts, Fischer added.
"They're the big ones," Fischer said. "The other folks are a couple thousand here, a couple thousand there, but they're just as important. We're not just focusing on these five; we're working with everybody, and it's a little time intensive, but it's worth it."
Fischer said the university would strive to maintain a healthy relationship with the nonprofit organizations that employ UW students through the work-study program. She added the university might even discover areas where debts were incorrectly reported.
Roger Price, assistant superintendent of the Madison Metropolitan School District, said they would work with UW to start at the most current bills and begin tracking the missing funds.
"None of us are perfect, we need to work together to solve problems as they arise," Price said. "We need verification and documentation — our accountant is working to provide that documentation, and then we'll make the payments."
But not all employers are taking the new bills in stride.
According to The Associated Press, Mike Krause, director of the Madison Hostel, is worried their alleged $18,000 bill has the potential to put them out of business and vowed to fight the debt.
Fischer said the 2,800 workers in the programs get paid half their salary from the employer, who is billed by UW, and another half from federal funding. The complicated billing process has been problematic for some employers, Fischer said.
"It has just been building up — it's more of an account-receivable issue," Fischer said. "[There are] at least four different programs in play, so it's confusing to figure out who owes what to who — we've been less than vigilant."
Fischer added the $150,000, though significant, is only a small portion of the $5 million operating budget for the program, which includes 275 off-campus students and 2,000 students scheduled to work on campus.
Though the payment problems came from the employers' half of the equation, students were still paid in full, Fischer said, since UW distributed its payroll separately from the billing process.
"No students are harmed," Fischer said. "In addition to having the job, it is great for building a résumé. … I want to keep those options open for students."
Anonymous (March 1, 2007 @ 3:03pm):
Somewhere Ray Allen is typing up a press release blaming it all on Mayor Dave.
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