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.

The Grant Thornton also found problems with bonus payments that were made by the Mangum administration.

POLITICO Florida also reported that “according to a summary of the Grant Thornton audit provided by FAMU, the school was out of compliance with two state laws that prohibit hiring bonuses from being paid using taxpayer dollars. Two bonuses — $15,000 for the provost and $5,000 for the director of academic support services — were paid with Education and General (E&G) or state-appropriated funds, and a $25,000 bonus for the director of intercollegiate athletics was paid with restricted trust funds, according to the audit. The university later used foundation dollars to reimburse the taxpayer funds used for the bonuses.”

Warren was elected chairman of the FAMU BOT in November. He has served as the CFO of Florida State College at Jacksonville since June 17, 2013.

A finding in the 2016 state operational audit for FSCJ by the Florida auditor general stated that “the College did not always timely complete bank account reconciliations.” Another finding in the same audit said “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.”

The CFO job description at the FSCJ website says that: “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.”

FSCJ stated that it was working to correct the problems that the state auditors found.

The Florida Board of Governors will make its decision on whether to reappoint Warren at its meeting on this Thursday.