The FAMU Foundation called a 3 p.m. EMERGENCY meeting of its board today to discuss its audit. The preliminary indication is that it doesn't look good. Here's what we know:
• The audit found a number of checks to the foundation, dating back to over two years, that have not been deposited;
• The foundation has not been reconciling its accounts on a monthly basis;
• Foundation accounts payables are up several hundred thousand dollars;
• Permanent assets of the foundation have decreased from $101M to $94M, despite the fact that the stock market is relatively strong and University is a getting good returns on its investments;
• Scholarship donations have dropped from over $3M to less than $1.6M; and
• One of the Board members indicated that several companies have indicated that they are not going to give to the foundation until a permanent president is on board.
The audit covers the last year of operation for the FAMU foundation.
More on this story as it develops.
Dam! I guess this is another example of how Cast-hell has gotten our financial house in order by raiding the FAMU Foundation for her personal gain, that $85,000 bounus had to come from somewhere!
ReplyDeleteWhere is the poster from the Credit Union? The one talking about Castell get things straight financially?
ReplyDeleteThe Dow has hit three record highs and somehow FAMU admin has still managed to lose money.
ReplyDeleteAnd FAMU wants the credit union to give this creditable administration how much. Now I understand why after 71 years the credit union is being challenged.
ReplyDeleteI guess the Foundation's financials are are now in order.
Wow!!!!!!!!
yah Rattlernation boys are all over it man. Johnny on the Spot.
ReplyDeleteIs this what this Adminsitration pays the accounting firm to do? I can't imagine not reconciling the Foundation's financials.
ReplyDeleteFAMU's financials are just like a moving target.
A Florida Classic Cheer!!!
ReplyDeleteCastell...Gotta Go!!!
Bring Back...Billy Joe!!!
Repeat over and over
You could look at this in a different way. The FAMU Foundation is a direct support organization and not the university. Certainly, the President and BOT have oversight of the Foundation. Maybe because they are starting to actively look at the operations of all the DSOs that this information is coming to light and not that they caused it.
ReplyDeleteFor people who have been dealing with the FAMU Foundation over the years, I am sure there are no surprises. It takes them forever to deposit a check. As noted, they can't tell you in real time what is actually happening with your foundation account. The quality of service coming from the Foundation was reason why the NAA wanted to move all of its operations out of the Foundation a few years ago. Just a little history lesson...
Bryant has been in office since January 1, 2005 and the audit covers last year. The foundation's financial transactions are all handled through the FAMU Division of Fiscal and Administrative Affairs. Checks to the foundation must be sent to the VP of University Relations who then transfers them to the VP of Fiscal and Administrative Affairs.
ReplyDeleteIf these checks are not being processed in timely manner, then that reflects inefficiency on the part of Bryant's administration.
Furthermore, the BOT has to authorize expenditures from the foundation's principal. The principal of the foundation should NEVER be touched except in an emergency situation. If the BOT is permitting the principal to be spent without a life-threatening reason, then that reflects extremely poor oversight.
I agree with all of your points. However, the Foundation has a Board of Directors and they represent the first line of oversight. Why have they allowed these things to occur? Did the Board of Directors not know that the principal was being spent? They are responsible for the operations of the Foundation first and foremost and of course the BOT and president are ultimately responsible by position.
ReplyDeleteChecks made payable to the FAMU Foundation aare never processed by the university division of fiscal and administrative Services. Those checks are deposited directly by the FAMU Foundation into a local banking account and then transferred to other accounts based upon the instruction of the check writer (but not always, the foundation has been known to miss this up as well).
ReplyDeleteYou are correct in that Kent Taylor who is the Associate VP for the Foundation can not give you information in real time. Not only that but Ron Joe the Executive Director for the Foundation and doesn't know a thing about the S&P, Nasdaq, or the DOW. Let along what should and should not be spent (principal).
However, these individuals (dishonest) do know how to follow instructions and when the IP says spend, they do as they are told. For example, "300 days into the Light."
Every since the BOT appointed two trustees as the overseers of the Foundation, this basically allowed Gainous and Casthell to do whatever they've desired and have overruled the Foundation Board on several ocassions.
Remember, the initial problems with spending began with Gainous when he initiated those informercials so save his hid, but that failed as well. Two words for that Love Collins.
The Return on the Investment of Gainous and Casthell promoting themselves in the media and hiring consultants to extend their stay is draining the Foundation. The funds they are utilizing would have been better spent on scholarships for outstanding students and/or students with special needs. And probably more in line with the donations to the Foundation.
This is your BOT exhibiting "Excellence with Caring."
I see I was wrong in believing the FAMU Foundation's checks went through Division of Fiscal Affairs. Thanks for the correction.
ReplyDeleteI continue to be very concerned about all the new expenses on the foundation. Again, the very point is to leave the principal alone and use the interest as a money source. We cannot keep "leaders" who do not understand that. Spending the principal in non-emergency situations undermines the very purpose of having a foundation in the first place.
Spending the principal in non-emergency situations undermines the very purpose of having a foundation in the first place.
ReplyDelete11/16/2006 6:11 PM
Precisely. But if you're intent on destroying the University, why wouldn't you spend everything you could on self-promotion and pet projects first?
Who are you people? The mere fact that Dr. Castell Bryant has gotten the finances in order is only proof how bad things were at the university. I now believe she will have to focus her attention on the foundation and straighten it out. I have faith that she will accomplish this as well.
ReplyDeleteFAMU is on its way to greatness under the leadership of Dr. Castell Vaughn Bryant!
Watchout FAMU Credit Union, you're next!
You keep on claiming that Bryant has straightened out our finances? How so? The state auditor general's report indicated that Bryant made FAMU's financial situation worst, not better. Bryant finished the year with a larger deficit and smaller net asset than we had under Fred Gainous' two years.
ReplyDeleteA $10M deficit is not financial progress!