In a much heralded announcement back in October, we learned that FAMU ended the 2004-2005 fiscal year with a $8 million surplus in its $397.5 million budget, according to a management report by KPMG.
To recap, the financial turn around by our interim president amount to a reported $11 million change in the Universities balance sheet ($3 million deficit + a reported $8 million surplus). A miraculous six month turnaround, achieved by a payroll which found (four known) non existent employees; a purchasing freeze; and restrictions on cell-phone use.
Now it seems that the much ballyhooed $8 million (unaudited) surplus has shrunk by $3 million since October. On January 8, Trustee Chair Challis Lowe wrote in opinion pieces which appeared in the Tampa Tribune and the Tallahassee Democrat that the suplus is only $5 million(see: Lowe's Op-Ed )
Perhaps, the Rev. R.B. Holmes, Jr. had it right when (in October) he correctly dubbed the $8 million surplus as "amazing"! Indeed. Because, now Trustee Chair Lowe, a Northwest University, MBA grad, tells us its only $5 million.
To be fair, any surplus is good considering that we haven't been able to balance our books since 2002-2003. And it was widely reported that we were as much as $23-$51 million in the red when the our interim president took the reigns (see: FAMU's woes deepen ) .
Ahhhhhhh, but wait the Tallahassee Democrat reported on October 7, 2005 that our reported $23-$51 million deficit was only $3 million.
Now it seems pretty clear that the extent of the financial crisis and the reported "surplus" have both been grossly exaggerated (yeah we've been lied to, hoodwinked, and bamboozled!). At any rate let's hope that by the time state audiors finish going over our books that the surplus is atleast $1.00.