institutionalfinance

End to Deferred Compensation at Louisville

The University of Louisville Foundation killed a deferred compensation program that provided about $20 million to a small group of administrators, weeks after its lawyer said the program was structured to conceal it from foundation employees.

Former University of Louisville President James Ramsey and about a dozen other university officials received compensation under the program. Those who are currently vested in the program will receive money that was promised to them, but any remaining funds will not be disbursed, according to Louisville Business First. Six university employees will be affected by the decision, which was announced Tuesday.

Earlier this month, the longtime attorney for the University of Louisville Foundation told the foundation’s board that the organization had created two limited liability companies to administer deferred compensation awards for “obfuscation purposes,” according to WDRB. He later said he regretted using the word “obfuscation” and said the intention was to keep a group of people who work at the foundation from accessing records, not to conceal the compensation from the public.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

2 Nazarene Colleges, in Different States, May Merge

Trevecca Nazarene University, in Nashville, Tenn., may merge with Eastern Nazarene University, outside Boston, The Tennessean reported. Under a deal reached last week, Trevecca's president, Dan Boone, will lead both institutions for three years while officials consider a possible merger that would maintain the campuses. The hope for a merger is that it would save money by combining some administrative functions. Trevecca enrolls about 3,000 students. Eastern Nazarene enrolls about 1,000 students.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

UC Berkeley Chancellor Violated Ethics Rule

An investigation at the University of California, Berkeley, found that its chancellor, Nicholas Dirks, broke university policy by accepting free memberships to the campus recreational sports facility, campus exercise equipment and meetings with a personal trainer, the Los Angeles Times reported.

The value of the benefits Dirks received inappropriately since becoming chancellor in 2013 amounted to just under $9,000. The gym membership fees and personal training were estimated at $4,990, and the elliptical exercise equipment he accepted was valued around $4,000, according to a report released Friday.

By accepting these fitness perks, Dirks violated UC ethics rules that prohibit university employees from using campus facilities and resources without special authorization.

The investigation was launched in April, but a university spokeswoman told the Los Angeles Times that Dirks corrected the issue by September, before the investigation was closed, by apologizing and paying back the money he owed.

Dirks announced plans for his resignation last fall. His term will end on June 30, and Carol T. Christ, the interim executive vice chancellor and provost at Berkeley, will become the new chancellor.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Costs of UNC Athletics Scandal Near $18M

The University of North Carolina at Chapel Hill has accrued nearly $18 million in legal costs stemming from the decades-long scandal involving fake classes that appeared to benefit athletes disproportionately, The News & Observer reported.

The $17.6 million spent to date has gone toward an NCAA investigation, lawsuits filed by former athletes against the university, several law firms representing the institution, public relations costs to manage the scandal and the review, redaction and release of public records to news organizations. UNC has produced at least 1.7 million records related to the investigation.

UNC will not be paying off those legal costs with tuition dollars or state funds, officials told The News & Observer, and it’s very likely the university will be billed for additional legal fees in the coming months, as some of the lawsuits are ongoing.

The scandal in question spanned about 18 years and involved over 3,000 students -- half of them athletes. Some UNC employees were pushing students to take “paper classes” that were not taught by university faculty members and did not meet in person. In these courses, students received high marks on the single required assignment regardless of accuracy or quality.

It is widely considered one of the most far-reaching cases of academic fraud in higher education history.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Cleveland Fed Finds Rising Per-Student Tuition Revenue

Per-student tuition revenue increased sharply since the late 1980s at public and private nonprofit colleges and universities, even as state and local funding for the institutions declined, according to a new analysis from a Federal Reserve Bank of Cleveland economist.

An economist at the Cleveland Fed, Peter Hinrichs, examined trends in inflation-adjusted revenue per student at four-year colleges and universities in the United States between 1987 and 2013. He found tuition revenue per student rose by $5,700 in that time frame at public institutions, to $9,300. At private universities, tuition revenue per student rose from about $12,000 per student to nearly $20,000 per student.

Hinrichs also found that funding from the federal government rose. Meanwhile, investment returns can be large and volatile, he found.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Debts Create Financial Crisis for Stillman

Stillman College, a small private historically black institution in Alabama, is facing a financial crisis, WBRC News reported. Cynthia Warrick, the interim president, recently sent a letter to alumni stating that the college needs $275,000 to make a loan repayment by April, or the institution could be forced to shut down. The college borrowed money in 2012 and has been having difficulty making payments on the debt. Currently, the college enrolls 570, and it needs to enroll 250 additional students so that tuition payments would contribute enough money for loan repayments.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Phishing Scams Cost Coastal Carolina $1 Million

Two separate phishing scams led to the theft of more than $1 million from Coastal Carolina University, The State reported. The thefts happened after individuals claiming to be affiliated with companies with which the university does business requested changes in bank account information. The university has recovered some of the money.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Barry and St. Thomas Universities explore strategic alliance amid pressures in South Florida

Two Roman Catholic universities ask if they can do a better job of serving the Miami area together.

U of Maryland University College pursues strategy of 'unbundling'

Section: 

U of Maryland University College pursues a strategy of spinning off units into stand-alone companies, seeking financial gain for itself and affordable tuition rates for its students.

Wright State President Resigns Amid Budget Crisis

The president of Wright State University resigned last week -- almost four months sooner than he had planned to retire from the institution -- in light of a budget crisis at the Ohio college, The Dayton Daily News reported.

“We have a substantial undertaking to bring our budget into alignment with our revenues,” said David Hopkins, outgoing president of Wright State, in an email to faculty, staff and students on Friday.

In lieu of the $432,000 salary he would have earned in the year following his retirement, Hopkins will now be eligible for an annual faculty salary of $200,000 in the College of Education and Human Services. He will still receive $150,000 in deferred compensation.

Cheryl Schrader has been selected as the next president of Wright State. She will take office July 1. In the meantime, the Board of Trustees chose Curtis McCray to serve as interim president. McCray has previously worked with the university as a consultant for its operational review.

The budget crisis that has consumed Wright State over the last few years stems from overspending, officials told The Dayton Daily. This year, the university is projected to spend $40 million beyond what it earned.

“That cannot continue under Dr. McCray’s leadership,” said Michael Bridges, chairman of the Board of Trustees. “You have to live within that budget.”

The trustees hope to bring the university out of as much debt as possible before Schrader takes over this summer.

Last year, the university laid off 23 people to help cut down on costs. An announcement about additional layoffs is expected next month. Wright State has also been under a hiring freeze since February, when Hopkins instituted it.

Is this diversity newsletter?: 
Disable left side advertisement?: 
Is this Career Advice newsletter?: 

Pages

Subscribe to RSS - institutionalfinance
Back to Top