PRESENTER:  Witness, you made a point before lunch that there are no state fees allocated for legal defense to the College of Agriculture, nor are there any federal funds allocated for legal defense.

So what must be going on here when the College of Agriculture is making payments, some of them, like on page 1069, $30,656 to the law firm?

WITNESS:   . . . there is no fund to pay for this, because the State audits its money; the federal government audits its money.

So the way it works, you get to the end of the year, and if there is money left over from the state, they do something called JV, which is journal voucher.

So they transfer the money to pay something in another account by journal voucher and then they transfer the money to a third account by journal voucher, and then by the third transaction or the fourth transaction, if some audit happens, there is no way to go back to find out where the money comes from because of all of these different accounts the money went through in terms of the transfer process.

PRESENTER:  So the point -- I believe these documents establish, Your Honor, that somehow the College of Agriculture is finding money to pay legal expenses that typically in some months are amounting to over $30,000, without any funds ever being budgeted for that purpose.

This process of journal vouchering that the witness described in any other setting would be called money laundering.

- Excerpts from the transcript of the hearing on public corruption at the University of Nevada, Reno.