University Liabilities grown in excess of 7 million dollars from previous year due to the Donald Julian Reaves Student Center
“University liabilities totaled $87,163,896.84 at June 30, 2012 compared to $78,128,730.47 per
the prior year, an increase of $9,035,166.37. This variance is mainly attributed to the issuance
of a Guaranteed Energy Savings Notes Payable of $6,517,358.00 and an increase in accounts
payable and retainage of $2,541,167.99 related to construction of the new Student Activities
Center. Bonds payable of $13,598,861.78, a notes payable of $6,517,358.00, and capital
leases of $50,810,000.00 were the largest liabilities, representing 81.4% of the total
University liabilities. The University had outstanding bonds of $3,440,000.00,
$1,305,000.00, $2,015,000.00, and $6,800,000.00 from 1998, 2002, 2004, and 2008 bond
In a frantic attempt, now they want to sell health club related services to the public in the hope of minimizing this liability. It does not work! The public does not come to a campus with parking space problems to go to a Health Club. Bad move and afterthought!
“Total operating loss for fiscal year 2012 was $102,007,969.51. Since the State of North
Carolina appropriation, certain grants, and gifts are not included within operating revenues
per GASB Statement No. 35, the University will show a significant operating loss on a
continuing basis.” Just like it happens with Athletics and he wants to buy Bowman Grey?
So how does DJ resolve this matter by sticking it to students tuition and fees!
Increase of Student Cost for Dining and Dorms are costing WSSU parents and students higher tuition rates and increasing their debt:
“The University’s unrestricted net assets were $7,697,879.63 at June 30, 2012 compared to
$6,279,101.31 in the prior year. This is an increase of $1,418,778.32 or 22.6% due primarily
to increased housing and dining revenue from increased rates.”
Salaries and benefits slightly increased by $134,490.96.
Mainly administrative salaries and those in their payroll, friends and family members of the WSSU’s administration including daughter of a Trustee a sister to a Provost! A Secretary running Faculty Affairs. Wondering why a secretary is running this unit? What is the connection? How much is she getting pay? Great Business model of Efficiency!
Supplies and materials decreased by $2,439,711.59 and services decreased by
$1,008,711.36 due primarily to a decrease in the overall budget for the institution.
Are you willing to share the pain DJ? The glass jars for collecting revenues in the MLK corridor businesses did not work, they were illegal anyway. Wondering who benefited from that scam? Where is the internal auditor’s report?
Scholarships and fellowships decreased by $2,917,824.19 due to a reduction in
financial aid awards from federal and state sources during the 2011-2012 fiscal year,
with the most significant reductions occurring the in the Federal Pell Grant Program
and the University of North Carolina Need Based Grant. The reduction in the Federal
Pell Grant Program is attributed to year-round funding received in 2010-2011 that
was not provided in the 2011-2012 fiscal year
Stick to the students and families! That’s why there are less students coming to WSSU. The changing grade scheme will not work, not to much revenue from that but bad publicity will continue to damage WSSU’s reputation.
Total net revenues were $153,219,319.05 for fiscal year 2012, compared to $143,980,433.98 for fiscal year 2011, resulting in a net increase of $9,238,885.07, which is primarily attributed
to the following:
- · Student tuition and fees increased $2,667,730.93 from last year due to increases in
tuition and fee rates.
- · Sales and services increased $2,597,945.06 from last year due to increases in housing
and dining rates.
- · State appropriations reflect a $1,692,096.96 increase due to increased funding from
the State of North Carolina.
- · State Aid – Federal Recovery Funds decreased $3,827,542.00 due to the ending of this
- · Noncapital grants decreased $4,908,248.88 mainly due to decreased financial aid
awards from federal and state sources as previously mentioned in the scholarships and
fellowships expense discussion. In addition, there were reductions to other student
financial aid revenue due to decreased private funding and the end to federal stimulus
Great Fund Raising- Cannot Fund raise if you are away on vacation for 3 months!
“Investment income decreased $2,140,541.96 mainly due to a decrease in returns on
Smoke, Mirrors and Deception, See audit on vehicles, previous Blog Posting.
All state-owned vehicles are covered by liability insurance through a private
insurance company and handled by the North Carolina Department of
Insurance. The liability limits for losses are $1,000,000 per claim and
$10,000,000 per occurrence. The University pays premiums to the North
Carolina Department of Insurance for the coverage. See audit on vehicles.
The Writing on the Wall
“Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified a deficiency in internal control over financial reporting that we consider to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the Audit Findings and Responses section of this report to be a significant deficiency.”
Beth A. Wood, CPA
Field Of Dreams
While it is not possible to predict the ultimate results, management believes that the
University’s financial condition is strong enough to weather any economic uncertainties
I have been in this business for 35 years.
For a full report go to: http://www.wssu.edu/administration/finance-and-administration/default.aspx