Friday’s meeting of the Board of Governor’s Task Force on FAMU Finances turned up an interesting fact which has gone unreported in mainstream media and which has been down played tremendously by interim president Castell Bryant, and that’s that state auditor issued a “qualified opinion” on FAMU’s 2006 finances. A qualified opinion means that FAMU’s books were in such disarray that state auditors could not audit them.That point was brought to light by UF Trustee Joelen Merkel, a member of the task force. Mrs. Merkel, a CPA, is Senior Vice President and Treasurer of Chris-Craft Industries, Inc., a New York Stock Exchange Company. No other university in the State University System of Florida received a qualified opinion on its financial audit. Merkel also chairs the UF BoT Audit and Finance Committee.
In response to the revelation by Mrs. Merkel, FAMU’s CFO Grace Ali snapped “at least it was an opinion.”
Mrs. Merkel noted that “certain accounts for which we could not satisfied ourselves with were: the amounts on the financial statements, student fee, capital assets, operating expenses, and operating revenues.” In other words, they could not audit these accounts, and that is why the AG gave the qualified opinion.
Lax oversight
Mrs. Merkel wanted task force members to understood the urgency of the matter and noted the lack of oversight by the FAMU BOT. A review of FAMU BOT minutes, by Merkel, found no report by the audit chair or copies of internal audits.
Merkel wondered if the FAMU audit committee understood or embraced the seriousness of the issues facing FAMU.
She noted she was able to find a document from a July 2006 emergency board meeting, but it appeared that the board did not have a copy of the audit or a copy of the response to the Auditor General. Merkel said, the minutes suggested “there wasn’t a sense of urgency or understanding of how serious a ‘qualified opinion’ is.”
Even though the charter requires a review, she could not find any reference of internal audit reporting. She noted there were no published IG reports from March 2003 to July 2006; almost 40 months.
Merkel said this suggested, there wasn’t follow-up to insure corrective actions were being done per the submitted responses.
Merkel recommended that there be a strengthening of the FAMU BOT audit committee.
The FAMU Audit Committee chaired by W. George Allen, and includes Pam Duncan, Jesse Tyson and Challis Lowe.
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An appropriate response would be for Governor Crist to remove the remaining 3 audit committee members from the BOT and reappoint Barney Bishop as one of the replacements! If people had looked past the color of his skin and listened to him we wouldn't be in this mess!
ReplyDeleteFunny haven't we been saying for a few years now that the BOT has been one of the main problems for FAMU. The same BOT who bosses are the state legislators. Gee this is like one of those duhh moments..
ReplyDeleteIt seems that every BOT at the public universities in Florida has a competent, financial person heading its audit & finance committee. Who's the audit person on our BOT? What corporate boards do they sit on? What are their credentials? ETC, ETC.
ReplyDeleteCrist should replace Allen, Branker and Jenkins right away.
ReplyDeleteWhy not Duncan also? She was on the audit committee and has been on the board longer than Allen. Or is it because she is a "Friend of Ammons"?
ReplyDeleteEverybody on the audit committee must go, friend or foe.
Hey, that rhymes!
I agree....Pam Duncan should go, too. She sat by and let her former buddy, Cassie, continue her reign of terror. Pam didn't even bat an eye or consider all that was happening. She's either clueless or as evil as Cassie. Either way, she ain't doin FAMU a bit of good! She gots to go along with the others.
ReplyDeleteThe FAMU Audit Committee chaired by W. George Allen, and includes Pam Duncan, Jesse Tyson and Challis.
ReplyDelete^^^Incompetent South Florida posse...
That b___ is white. She is probably a Jeb Bush republican too. A qualified opinion is an opinion. Leave FAMU alone. Let us balance our books our way. Ammons can straighten this out.
ReplyDeleteIf you think this post is bad, on Saturday Grace Ali reported that
ReplyDeleteFAMU 's financials had not been audited prior to devolution.
This board members are clueless. No one does it's homework; a quick visit to the AG's website would have disspelled this falsehood.
Anon. 11:20,
ReplyDeleteThank you Grace Ali for chimming in. However, Castell, Lowe, Allen and Corbin are all Bush appointees too and we know what that got us. This Merkell lady took issue with the fact that FAMU Trustees had been sleep at the wheel. She was dead on on that, she can't be that bad.
This Merkell lady took issue with the fact that FAMU Trustees had been sleep at the wheel. She was dead on on that, she can't be that bad.
ReplyDeleteShe's not. Ali got caught in all of her own incompetent BS. She just got there last year and want to talk smack about what was soooo wrong with FAMU's finances "10 years" prior. The State Auditor General himself SPECIFICALLY pointed out the exact dates (audits) that were in question, AND issue a Qualified Opinion about them.
The entire BOT needs to go.
ReplyDeleteAll deans need to go.
All department chairs need to go.
And all administrators need to go.
Ammons can and should clean house. He should hire new folks to take over from outside of the inbred FAMU community.
Barney! There are definitely OTHER well qualified people out there. Talk about not moving on!
ReplyDeleteWhile a qualified opinion doesn't mean the books are "un-auditable," it does mean that a lot of people should/will be fired.
ReplyDeleteRN forgot to add that the 2006 financials still haven't been completed and submitted to the AG at the time Trustee Merkel made this presentation. It is now time to begin preparing the 2007 financials.
ReplyDeleteThis if far worst then Gainous and his 2004 financial problems.
Lord, have mercy, 11:20. FAMU has indeed been auditing its books its way, and look where we are now, in 2007. Look at the mess we're in now, in 2007. It appears to me, contrary to your argument, that a better way is needed. Balance the books "our way"? Are you mad (not in angry-mad, but in crazy-mad)? And another thing, you need to clean up your mouth with that ol' bad language. Oops, I forgot, you have no reasoning skills, which stands to reason that you have no language skills either. Holla.
ReplyDelete