KPMG is once again misrepresenting FAMU's financial performance by stating that the increase in net assets was the key indicator of the University's performance. Further, the presentation of the performance of other Florida universities was totally irrelevant in that it has never been an issue.
The issue is Bryant's initial declaration of an $8 million surplus when FAMU has actually suffered a $10+ million operating deficit--that's an $18+ difference!! KPMG is playing the same duplicitous role as the accounting firm of Arthur Anderson in the Enron scandal. KPMG apparently is getting a nice stream of revenue from FAMU and they don't want it to end. Obviously, they see their allegiance as being to the administration who effectively hired them rather than to Florida taxpayers and other FAMU stakeholders.
Board members are either not knowledgeable enough of how the financial performance of organizations, including universities, is evaluated or they are part of the conspiracy to deceive and mislead FAMU stakeholders.
As we’ve said before, no other university in the state claimed a surplus even though there are several that actually had one. Further, no other BOT rewarded the president a raise and bonus based on an unaudited financial statement.
We learned from accounting 101, you subtract your expenses from revenues to determine gain/loss. Had the revenue out performed the expenses then perhaps our leader would be well within her right to “CLAIM” a surplus as she has done so incorrectly in the Foundation Annual Report, BOT minutes, A&M Magazine and other communications to alumni, friends, and stakeholders.
On another note, where was Trustees Duncan and Holmes? Perhaps we should send the Hollins Group out to search for them!
FAMU-v-Other schools in the SUS
You could just hear the butt checks tighten when it was revealed that Cory Alston was the whistleblower!
ReplyDeleteLOL.... What other bombs does Cory Alston have to drop?
ReplyDeleteI guess we just have to wait.
ReplyDeleteIt looks like George Allen wants to get into a WWE-style slug match with Corey Alston. Can you believe Allen actually sat there talking trash to Alston at a BOT meeting?
ReplyDeleteSome questions:
ReplyDelete-Why was R.B. Holmes not on the conference call?
-Why were Spurgeon McWilliams and Mary Diallo the only trustees who asking tough questions?
-Why are we comparing FAMU's income loss to UWF, UNF, and FGCU? If any university fails to make money, doesn't that attract the rightful scorn of the legislature? Doesn't the state then have the right to question whether the funds invested in an unprofitable university should be transferred to a money-making institution?
-What the hell type of logic was being used in that conference call discussion?
Anonymous said...
ReplyDeleteSome questions:
Why was R.B. Holmes not on the conference call?
Why were Spurgeon McWilliams and
Mary Diallo the only trustees who asking tough questions?
My take....
Lowe knew Holmes was traveling in Europe.
Diallo (faculty senate) represents the faculty who have a vested interest in the well-being of FAMU.
McWilliams (alumni) represents all the "real" stakeholders who have a vested interest in FAMU forever.
Lowe and Duncan probably at the AKA Boule Convention in Detroit, MI.
ReplyDeleteLowe new name should be Spinderella. This gul has put out more spin then a maytag washer!
ReplyDeleteAs a long-time, productive & loyal faculty member at FAMU, I cannot WAIT for this "good-old girl" network to be gone! They are far worse than the good-old boys ever were...
ReplyDeleteThe new Scooter Libby, Rufus Little.
ReplyDeleteValerie Plame sues Scooter Libby, Dick Cheney and Karl Rove in U.S. District Court.
ReplyDeleteUp next, will Mike Brown sue Castell Bryant, Challis Lowe, Gerald Dunn and Rufus Little in Civil Court?
We told you to get to work, Rufus.
ReplyDeletePoint of reference ...
ReplyDeleteSomeone at RN needs to investigate just what figures was the IP presenting to the public when she announced this $8M surplus. Was her $8M it before - or after the over $12M in capital appropriations were factored in.
AND - WHO was responsibile for reconciling and supplying those numbers all year long.
Whether it is an $18M discrepancy - Or just a $5.3M one as it appears ... The bottom line is - Whoever provided her these initial numbers needs to be held just as responsible for this foolishness.
There is NO reason - nor excuse - for our books to be THIS off at ANY time during the year. Whether it's KPMG - or the folks who are being paid to input and reconcile it, this nonsense has to come to an end.
Forget those 8 people in SBI being fired ... There are obviously some folks on our payroll in our Accounting Department that need to be shown their walking papers when this is finally resolved ... And NOT reassigned!!!
"RN" ... If you could find out the FIRST set of numbers she was given, I think it would help to squelch a LOT of misconceptions about this situation around here!
Castell Bryant was given unchecked authority to clean house in FAMU's Division of Fiscal Affairs and get capable employees in their to crunch the numbers. Fred Gainous fired all the senior controller's staff and hired a new VP and controller. When Bryant came in, she cleared out all of Gainous' hires and brought in her own hand-selected people.
ReplyDeleteIt was Bryant's job to build a team of people who could adequately manage FAMU's finances. She failed to do this and must be held accountable for her not doing her job. This cannot be blamed on Fred Humphries or Fred Gainous -- the incompentents in the financial division are all Bryant's hires.
No more excuses for the interim president who does not uphold her fiscal duty. Enough is enough.
Let's also see where the "$51-million deficit" number came from, too. I'll bet it's just as cooked-up a number as the "$8-million" surplus. This is critical, because the supposed deficit was Castell's excuse for all the power she grabbed, the people she fired, and the people she hired. My guess is that it was a fabricated crisis!
ReplyDeleteWhat blows my mind is how Castell actually thought she could get away with this. She claimed an $8M "surplus" that really turned out to be a $2.7M net asset. Then, she failed to even admit the $10M operating loss. Did she really think she would not be caught? Or does she just think that most Rattlers are too timid or stupid to call her out?
ReplyDeleteWhat's even more interesting is Bryant's claim that there are "no surprises" in the state's draft audit. If that is so, then it is evident that Bryant was not forthright in confessing that the $8M "surplus" did not exist. That alone shows that Corey Alston is right on the mark.
If Corey Alston's complaint is proven true, all of the trustees except those who were in on the deal were duped. If his complaint is false, and no information was withheld from the board, or falsified, then the BOT members are incompetent! Either way, some of them deserve to be removed and replaced by people who are committed to higher education, are willing to invest themselves in the hard and time-consuming work of being a trustee, and who have the scruples and courage to be fair no matter what!
ReplyDeleteThe mere fact that the AG office confirmed by email that the financial statements (unaudited) had been sent back to FAMU in April (2006) to Mr. Dunn and IP Bryant is enough confirmation that others colluded to keep certain BOT members in the dark. Also it proves that they were more than aware of the what the problems and the AG's focus were.
ReplyDeleteThis is probably why is was "No Surprise" to Castell.
Anonymous said...7/17/2006 7:05 AM
ReplyDeleteIf Corey Alston's complaint is proven true, all of the trustees except those who were in on the deal were duped. If his complaint is false, and no information was withheld from the board, or falsified, then the BOT members are incompetent! Either way, some of them deserve to be removed and replaced by people who are committed to higher education, are willing to invest themselves in the hard and time-consuming work of being a trustee, and who have the scruples and courage to be fair no matter what!
Looks like Corey Alston was on to something.