FSA Vending Machine Operation Charged Illegal

The vending machines in your d o r m , in the campus center, pod ium, and tunnels are and have been opera ted in violation of the S ta t e University con t rac t with SUNY-A's Facul ty S tudent Associat ion. According t o New York State Audi tors , Article 3 of the contract be tween State University and FSA provides tha t " F S A may operate vending machines . This does not mean that FSA may sub-contract a vending opera t ion t o an outs ide concern but mus t service and maintain FSA owned or leuscd vending machines with the use of FSA personne l . " Since past and present vending opera t ions have been subcont r a c t e d in violation of the SUNY-FSA contract , the State Audi tors , with an eye open for addit ional revenue, naturally demand all net commissions should be paid to the impoverished State Treasury. On J u n e 30 , 1968, FSA entered into an exclusive cont rac t with Canteen C o m p a n y after compet i tive bidding. Under the terms of this cont rac t , Canteen Company services all machines and collects all receipts. Gross vending sales for fiscal year 1970 amounted to $282,957' . A single check for the t o t a l r e c e i p t s collected by Canteen C o m p a n y is forwarded to FSA which banks the check and draws an FSA check in favor of Canteen for their share of the receipts, amount ing to $238 ,607 in 1970. The only purpose of this c u m bersome procedure , S ta te Audi tor repor t , is to provide an ar rangement whereby FSA does not receive vending commissions by J, Stephen Flavin