Showing posts with label audit. Show all posts
Showing posts with label audit. Show all posts

Wednesday, April 12, 2017

State audit: FAMU lost $1.4M in tuition and fees in 2015-2016, mainly due to enrollment drop

The enrollment decline continued to hurt FAMU’s budget last fiscal year.

The "Management's Discussion and Analysis" section of the recent FAMU financial statement audit said that the enrollment drop was the main factor that caused FAMU to lose more than a million dollars in tuition and fees in 2015-2016.

“Net student tuition and fees decreased by $1.4 million, or 3.1 percent, as compared to the 2014-15 fiscal year,” the section said. “This decrease was due primarily to a decline in enrollment.” 

Sunday, April 09, 2017

Audit shows Mangum, and friends, racked up more than $3.2m in p-card charges in final year

In the year leading up to her ouster former President, Elmira Mangum issued more than 127 FAMU purchase cards to employees including her Chief of Staff Jimmy Miller,  two executive assistants to the president, and the wife of the executive assistant to the president, who racked up more than $3.2 million in charges.  

Last August it was reported that Miller had racked up over $150,000 in charges on his FAMU issued purchasing card. Miller's charges mostly covered airline travel, taxi & car services and rental cars.  Records also showed that Magnum amassed over $81,000 in travel, which included expensive limousine rides and stays at the Waldorf-Astoria and Ritz-Carlton hotels.

Mangum is expected to return to the FAMU faculty after a one year sabbatical.

Monday, February 20, 2017

Audit says FSU didn’t follow state’s competitive selection process for $18.9M in contracts

Back in January, Florida Auditor General Sherrill F. Norman released her first operational audit for John Thrasher’s administration at Florida State University (FSU). The audit said that the university didn’t follow the state-required competitive selection process for a total of $18.9M in contracts for facilities projects.

“The University did not competitively select, in accordance with State law, construction management entity, architectural, and engineering firms for the renovations and repairs to the Civic Center and Strozier Library Projects with costs totaling $16.1 million and $2.8 million, respectively,” the audit summary said.

The full audit report went on to say that: “Specifically, given the similar project contract dates and service providers used, it appeared that University personnel divided the Civic Center and Strozier Library projects into smaller projects to keep the individual project costs below the $2 million required competitive selection process threshold.”

Monday, May 09, 2016

FAMU run by finance professionals with big accountability problems

The current FAMU president is a former vice-president for budget and planning and the current FAMU Board of Trustees (BOT) chairman is a chief financial officer. But both have been at the center of big audit problems in recent months.

Back in October, FAMU Trustee Cleve Warren said he didn’t think the capital improvements that had taken place at the on-campus President’s House after the start date of President Elmira Mangum’s contract in April 2014 were ones that required approval by the BOT.

That claim was at odds with findings of an independent audit by Grant Thornton LLP. Grant Thornton said a $71,529 garage project that began in June 2014 should have been presented to the BOT for a vote before it was started.

Monday, April 11, 2016

Washington defends $58,400 cost of external audit

Whether FAMU got its money’s worth from the external audit done by Grant Thornton LLP depends on who you ask.

Last week the chair of the FAMU Board of Trustees (BOT) Audit & Compliance Committee, Nicole Washington, defended the $58,400 cost of the audit. According to POLITICO Florida, Washington “said that she was comfortable with the cost of the audit and that university staff followed procurement procedures.”

“This process allowed the selection committee to compare costs, among other criteria, when evaluating the proposals,” she said in a statement to POLITICO Florida. “Grant Thornton LLP scored higher on the evaluation, based on the quality of their proposal and the interview. Also, the Grant Thornton LLP quote was less expensive. Based on this information, I do not see the cost as unusual.”

Thursday, April 07, 2016

State auditors report that FSCJ “overpaid Florida Retirement System contributions”

The 2016 state operational audit for Florida State College at Jacksonville (FSCJ) by the Florida auditor general reported problems with the payment process the college used for a set of contributions to the Florida Retirement System (FRS).

The finding stated that: “Contrary to Department of Management Services rule and the College’s operating procedures, the College overpaid Florida Retirement System contributions by $12,287 for benefit day payments, totaling $90,994, made to three employees upon their separation from College employment.”

Cleve Warren has served as the financial officer of FSCJ since June 17, 2013. He is also the current chairman of the Florida A&M University Board of Trustees.

Monday, March 28, 2016

State audit finds problems with “untimely bank account reconciliations” at FSCJ

Florida Auditor General Sherrill F. Norman released her operational audit of Florida State College at Jacksonville (FSCJ) on March 11. A finding in that report stated that “the College did not always timely complete bank account reconciliations.”

Cleve Warren, the chairman of the Florida A&M University Board of Trustees, is the chief financial officer (CFO) of FSCJ. He has served as the CFO of the college since June 17, 2013 and earns $150,000 per year.  

According to the CFO job description at the college’s website: “The Chief Financial Officer (CFO) provides executive leadership and guidance for all financial aspects of the College… The CFO is also responsible for ensuring that the College financial reports are accurate and completed on time.”

Wednesday, March 16, 2016

Partial shift of Givens’ duties to Cassidy follows October report of “potential interference”

Part of the duties previously carried out by FAMU Vice-President for Audit and Compliance Rick Givens have been shifted to now former Chief Financial Officer Dale Cassidy, the FAMU administration recently told Board of Trustees (BOT) members.

Chief of Staff Jimmy Miller sent trustees a memo on Tuesday, March 15 that stated Cassidy has been reassigned from CFO/vice-president for finance and administration to the newly created job of chief external compliance and ethics officer. He said the new position is one that FAMU might be required to establish under a proposed regulation that's being discussed by the Florida Board of Governors.

According to the Tallahassee Democrat, “under the new arrangement, Miller wrote, Cassidy would take over some of Givens' responsibilities.” The newspaper quoted Miller as writing that this would help the division by “allowing (Givens) to concentrate more energy on assessing and strengthening the organization's internal processes and procedures.”

Friday, February 12, 2016

FAMU to receive outside review report on President’s House garage, bonuses on Feb. 16

On Tuesday of next week, Florida A&M University will receive a report from the firm hired to conduct an independent review of controversial capital improvements at the on-campus President’s House and bonuses that were awarded to members of President Elmira Mangum’s staff. 

FAMU Vice-President for Audit and Compliance Rick Givens told university trustees on Wednesday that Grant Thornton LLP was selected for the job and will submit its written conclusions on Feb. 16.

The FAMU internal auditor normally carries out such investigations. But the FAMU Board of Trustees (BOT) voted to have an outside company do the review after Givens reported “potential interference with the work of Audit & Compliance” in an Oct. 21 email to then-Chairman Rufus Montgomery.

Wednesday, January 27, 2016

Whether $15K E&G bonus payment to David will lead to state audit finding remains unclear

On Oct. 19, FAMU Vice President for Audit and Compliance Rick Givens sent the Board of Trustees (BOT) a memorandum that stated his office had reviewed a set of administrative signing bonuses and found that one was paid from Education & General (E&G) funds contrary to state law. That bonus was $15,000 and went to Provost Marcella David on February 11, 2015.

“Payment of bonuses from E&G funds is in violation of Section 215.425, Florida Statutes,” Givens told the BOT.

President Elmira Mangum followed up with a memorandum of her own on Oct. 21 that said problem was an unintentional error that was found on Oct. 16 and corrected on Oct. 20.

“I take matters of budgeting and financial operations serious and would not purposely misuse funds with clear knowledge that the University goes through a detailed auditing process annually,” Mangum wrote.

But at an emergency BOT meeting on Oct. 22, Givens said the correction might not be enough to prevent a finding if the issue is examined by state auditors.

Tuesday, January 26, 2016

Auditors confirm BOG has finally fixed the numerous noncompliance problems in IG office

Former BOG Inspector General Derry Harper and current BOG Inspector General Joseph Maleszewski
Florida Auditor General Sherrill F. Norman recently confirmed that the Florida Board of Governors (BOG) has finally fixed the noncompliance problems in its Office of the Inspector General that led to a blistering state review in 2013.

Norman reported no findings on the 2015 quality assessment review for the BOG inspector general’s office. That was much different than what state auditors found two years earlier.

Back in 2013, Florida Auditor General David W. Martin scolded the BOG for “noncompliance with statutory requirements” in the review of its inspector general’s office. As part of that finding, he said the BOG failed to provide verification that then-BOG Inspector General Derry Harper had the educational qualifications required by Florida law.

Monday, January 25, 2016

Suspicions of administrative interference with internal auditor not new at FAMU

On Oct. 21, FAMU Vice-President for Audit and Compliance Rick Givens wrote the chairman of the Board of Trustees (BOT) to report “potential interference with the work of Audit & Compliance.” Givens was in the middle of looking into questions from the Florida auditor general about spending on the campus President’s House when he received an email from FAMU Vice-President for Finance and Administration Dale Cassidy that led him to send that notice to the BOT.

This isn’t the first time that there have been suspicions of administrative interference with the duties of the FAMU internal auditor.

Tuesday, January 19, 2016

FAMUans should ask state auditors to look into $12.9M COE budget shift to FSU

Florida Auditor General Sherrill F. Norman and her staff are currently going over Florida A&M University documents to see whether President Elmira Mangum received Board of Trustees (BOT) approval for two purchase orders totaling $371,738 for capital projects at the President’s House before they were executed. The president’s contract says “Dr. Mangum shall obtain prior approval from the Board (or its designee) for any capital improvements or repairs to the home or its grounds which have a project cost over $10,000.”

FAMUans should contact Norman’s office and ask her to also look into the shift of the $12.9M FAMU-FSU College of Engineering (COE) budget from FAMU to FSU that happened last year without a vote of approval by the BOT.

Monday, January 11, 2016

Mangum claims she “didn’t notice” comments Woody wrote about garage in her evaluation

Back on July 8, FAMU Trustee Robert Woody submitted an individual evaluation of President Elmira Mangum that expressed his concern about a garage project he said took place at the on-campus presidential residence without the approval of the Board of Trustees (BOT). But Mangum did not give the BOT a formal, written response to the issue until more than three months later.

“An example of her failure to communicate with the Board is on the renovation of the garage at the President’s House. This renovation cost was approximately $77,000 which the President did not present to the Board resulted in a failure to receive approval for the project,” Woody wrote in his evaluation of the president for 2014-2015.

Wednesday, January 06, 2016

President’s House additions could become findings in Mangum’s first full-year state audit

Back in March, FAMU received a state financial audit with no findings for the fiscal year of July 1, 2013 to June 30, 2014. Larry Robinson was in the FAMU president’s office for most of that time. Elmira Mangum started her first day of work on April 1, 2014, which was about three months before the end of that fiscal year.

Mangum will soon be notified of the results of the preliminary state financial audit for her first full fiscal year as the FAMU president.

FAMU Vice-President for Audit and Compliance Rick Givens submitted a report to the Board of Trustees in December that said the Florida Office of the Auditor General is still reviewing documents about a set of controversial capital improvements at the on-campus President’s House. His report added that any findings would probably be included in the upcoming state financial audit.

Wednesday, November 04, 2015

Givens reported “potential interference” with his work to BOT following email from Cassidy

Back on Oct. 21, FAMU Vice-President for Audit and Compliance Rick Givens wrote the chairman of the Board of Trustees (BOT) to report “potential interference with the work of Audit & Compliance.”

POLITICO Florida obtained the series of emails that ended with that statement by Givens.

Tuesday, October 27, 2015

FAMU in a state of confusion over $71,529 garage project at President’s House

The FAMU Division of Audit and Compliance says that there is no documentation to show that the FAMU Board of Trustees (BOT) approved a $71,529 garage project at the on-campus President’s House. But President Elmira Mangum claims that the trustees did give their authorization for the garage to be built.

Confusion over how the detached garage ended up being constructed at the FAMU President’s House swirled during an emergency BOT conference call on Thursday, Oct. 22.

Wednesday, October 21, 2015

Black Caucus should ask state auditors to investigate $12.9M COE budget shift to FSU

(L-R) Arthenia Joyner, Mia Jones, Andrew Gillum, Alan Williams, and Dwight Bullard
July 1, 2015 became the first day in 28 years that FAMU wasn’t in control of the appropriation for the FAMU-FSU College of Engineering (COE).

The Florida Legislature designated FAMU to be in charge of the money and put the funds in the university’s general revenue line between 1987 and 2014. But in May, after the legislature created a new budget entity for the appropriation, a new Joint College of Engineering Governance Council decided that it was going to start calling the shots about what happens to the $12.9M COE budget instead of FAMU.

The council took that position even though it isn’t even mentioned in the General Appropriations Act that created the new budget entity. No part of the General Appropriations Act says that the Joint College of Engineering Governance Council has permission to take control of the $12.9M COE budget.

Members of the Florida Legislative Black Caucus should ask Florida Auditor General Sherrill F. Norman to open a formal investigation into the recent actions of the Joint College of Engineering Governance Council and especially its decision to shift the $12.9M COE appropriation from FAMU to FSU. The change was done without a vote of approval from the FAMU Board of Trustees.

Saturday, July 18, 2015

FAMU investigation report says Winslow received compensation for unearned leave

A June 4 investigation report written by the FAMU Division of Audit and Compliance concluded that former FAMU Athletic Director Kellen Winslow received compensation for unearned leave.

Vice-President for Audit and Compliance Richard Givens said his office started the investigation after the Governor’s Inspector General forwarded an anonymous complaint it had received “that alleged Mr. Winslow was compensated for unearned leave while being on vacation after his April 2014 appointment as FAMU’s athletic director.”

The conclusion of Givens’ report stated that “the allegation is substantiated.”

Tuesday, February 25, 2014

FAMU’s latest state operational audit results reflect continuing progress

The results of FAMU’s most recent state operational audit provided more evidence that the university is on sound footing.

Florida Auditor General David W. Martin only reported three findings in the review. There were 24 findings in the operational audit completed in 2013.

“We wanted a shutout. Even though that almost never happens with any institution, you always want a shutout,” FAMU Interim President Larry Robinson told the Tallahassee Democrat. “We’re going to continue to create an environment where we don’t expect to have any findings.”

Every two years, multiple findings turn up in the operational audits of public universities all across Florida. In the most recent round of operational audits, there were 6 findings at UF, 4 at FSU, 9 at USF, 4 at UCF, 4 at FAU, 5 at FIU, 5 at UWF, and 3 at FGCU.