oe pepe perenne ent eee

Joe ere meer

April 14, 1944

Mr. Honry Wernor, Chime,
Momorial Union Corporation

Doar Sirs

In acoord with your roquost I have propared the attachod
statomont of condition of Kansas Union at the closo of March,
1944.6

Anticipated recoipts aro basod on améunts for which tho Gove
ormmont has boon or will bo billed, and invontorios consist
of the cost of goods on hand as dotormined by physical invone
torics taken at tho ond of tho poriods

Accounts payable aro subject to minor rovisions which my bo
discovorod as bills aro audited for paymoente

It should bo carofully pointod out that the large surplus
figuro is misloading becauso it would appoar that a profit
ig accruing to tho Union from the operation of the two mile
itary mossing programs, Howovor, tho contracts provide that
tho mess halls must bo opcrated at cost and theso contracts
are subjoct to periodic ronogotiation amd rovisione

For somo timo your costs on tho Army Mossing Program havo

boon running somowhat loss than tho Army has advanced, thoreby
creating a liability which will havo to bo deducted from future
paymonts from the Army, It is not possiblo at this timo to
dotermino tho amount of those ovorpaymonts.s

Furthermore the Union has roccived cortain administrative
foos, a portion of which may oventually bo duc tho Univore
sity, and likowise the University has not romittod to tho
Union the amounts duoc for tho uso of faciliticse

Therefore it would scom reasonable to concludo that tho not

rosult of tho mossing program cannot be doterminod until

thoro is a final accounting at the tormination of the program,
Rospoctfully submitted,

Clifton C, Calvin, Auditor
Studont Organization Fund