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Follow the money and fix FAMU

What will it take to fix the financial mess at Florida A&M University?

After years of trying, the historically black college still has few answers. Recognized in 1997 by Time magazine and the Princeton Review as college of the year, FAMU's public image has deteriorated because of its million-dollar deficits, inadequate financial controls and byzantine accounting system. A new accounting report by outside auditor KPMG found spending exceeded the university's budget by $51-million, six-figure deficits in the housing and athletic departments, and a record-keeping system so confusing that large sums of money cannot be traced.

The situation has gotten worse instead of better, and it requires a strong state response. FAMU's interim president, Castell Bryant, is trying to clean it all up, but she needs help. The school should conduct a forensic audit, which is a more detailed examination of the finances. With so much money flying around, someone needs to make sure the gross incompetence did not extend to fraud and corruption. Gov. Jeb Bush and the Board of Governors, which oversees state universities, also should take a more active role and ensure that FAMU returns to solid financial footing.

Meanwhile, the unproductive blame game at FAMU continues. Bryant took office in January after Fred Gainous was fired, in part, for failing to put the school's finances in order. Gainous blamed his predecessor, Frederick Humphries, for concealing FAMU's financial problems and improperly borrowing money from one department to cover the needs in another. Bryant's supporters have blamed Gainous for firing key financial employees too quickly, making it tougher for outside analysts to sort out the books.

For too long, FAMU has not been held to the same standards as other universities. Imagine such a financial meltdown at the University of Florida or Florida State University. There would be a public outcry, and state officials would be tripping over themselves to fix it. But former members of the now-dissolved Board of Regents have acknowledged they feared being labeled as insensitive to African-Americans if they raised too many questions about the way FAMU operated. That atmosphere, which Humphries helped create, resulted in a lack of aggressive oversight that could have stopped the financial bleeding sooner.

Throwing money at the problem is not the long-term solution. New FAMU trustees board president Challis Lowe prudently says the current financial records are too unclear to determine if the school even needs the money some legislators are too eager to provide. More state money ultimately may be required to bail out the university, but FAMU needs to straighten out its financial house first.

FAMU's trustees recognize the seriousness of the situation and the potential threat it poses to the university's future, and the interim president is working diligently to turn things around. That is encouraging, but it is not enough. The governor, the Board of Governors and state legislators have an obligation to all taxpayers and to FAMU's students to see to it that money was spent appropriately and that the school can properly manage its finances. Otherwise, a proud university with a unique place in Florida history may soon be a shadow of its former self.

[Last modified March 6, 2005, 00:13:18]