Audit finds problems at ASU such as unapproved stadium cost overruns

[MetroPhillyTiger]

We cant get away with what they get away with.

College Board stands behind move to fire Ole Miss chancellor -- but looks like he'll be back.

UMMC has a budget of $1.6 billion this year, about 38 percent of the entire budget of $4.2 billion for all eight universities, and Perry said trustees wouldn’t be doing their job if they didn’t “exercise our appropriate control over their financial transactions.”

A review completed in September by the Ridgeland-based accounting firm of Matthews, Cutrer and Lindsay found numerous violations of College Board policy. All contracts over $100,000 are to be voted on by the board, as well as most leases. In at least six cases, UMMC sought retroactive approval for contracts and leases. But in more than 60 other cases, no approval was ever sought, the firm said. In other cases, contracts had no spending limits or completion dates, or showed that UMMC spent more than the amount negotiated by itself or the state’s Department of Information Technology Services.

 

[Herbert77060]

College Board stands behind move to fire Ole Miss chancellor -- but looks like he'll be back.

UMMC has a budget of $1.6 billion this year, about 38 percent of the entire budget of $4.2 billion for all eight universities, and Perry said trustees wouldn’t be doing their job if they didn’t “exercise our appropriate control over their financial transactions.”

A review completed in September by the Ridgeland-based accounting firm of Matthews, Cutrer and Lindsay found numerous violations of College Board policy. All contracts over $100,000 are to be voted on by the board, as well as most leases. In at least six cases, UMMC sought retroactive approval for contracts and leases. But in more than 60 other cases, no approval was ever sought, the firm said. In other cases, contracts had no spending limits or completion dates, or showed that UMMC spent more than the amount negotiated by itself or the state’s Department of Information Technology Services.

They steal as much or more than we do and with the advent of IT......smh......007, License to Steal

 

[JAG89]

Construction cost over runs are a fact of life. When plans are approved for construction they are normally already in the red because construction dates are nowhere near the actual date of contract letting. Now, having said that there are safe guards that should be built in to minimize cost over runs. Also, what the over runs were for plays a big part in whether they were legit or not. Payola can be hidden in the cost of a project unless someone is just dumb or greedy or both.

Which is why owners should hire the best design firm to keep track of material and labor prices while the project is in the design phase. Material prices are probably the biggest uncertainty for any project and once a project is out for bid, the design firm should have a good idea on what those prices are. Also, during the bidding phase, bidders are working with different suppliers to guarantee a certain price if they are awarded the contract. And once the contract is awarded to the lowest/successful bidder, I believe suppliers have to hold their supply prices for at least 6 months to a year before they can make any changes in supply prices. It takes at least 1 to 3 months to properly setup a contract after being awarded, which includes having the contractor verify and obtain the proper insurance, setting the time of construction, obtaining the necessary signatures to legalize the contract, etc. I've designed and managed several projects to know exactly how business in the construction industry works.

 

[JAG89]

College Board stands behind move to fire Ole Miss chancellor -- but looks like he'll be back.

UMMC has a budget of $1.6 billion this year, about 38 percent of the entire budget of $4.2 billion for all eight universities, and Perry said trustees wouldn’t be doing their job if they didn’t “exercise our appropriate control over their financial transactions.”

A review completed in September by the Ridgeland-based accounting firm of Matthews, Cutrer and Lindsay found numerous violations of College Board policy. All contracts over $100,000 are to be voted on by the board, as well as most leases. In at least six cases, UMMC sought retroactive approval for contracts and leases. But in more than 60 other cases, no approval was ever sought, the firm said. In other cases, contracts had no spending limits or completion dates, or showed that UMMC spent more than the amount negotiated by itself or the state’s Department of Information Technology Services.

Yep, he seems to have big donors on his side.

Anthony Papa, president of the Gertrude C. Ford Foundation, said Monday that the foundation will retract the $20 million it’s promised for a new science building at Ole Miss unless the College Board retains Jones.

 

[96lioness]

Hey 96baby!!!!! What's wrong?

You behave yourself

 

[the band fan]

what was in the original bid? The scoreboard they bought was the top of the line package as I wonder was it bidded as an alternate or was there even a bid for it outside of a plain board...

but to build a stadium of that magnitude with a plain board was not going to cut it so they quickly added it and we see what it go tthem

 

[Blankman2k5]

You are right nothing will happen. A&M got caught on the MCC extravagances first which caught ASU in their audit. Corrections have been made by both universities. The audit did not identify any violation of state laws. The old adm cut corners and ignored rules to complete the stadium for 2012 Thanksgiving opening. All involved during this time are no longer working for the university. So far no fraudulent or kickbacks have been discovered in nearly 3 years of investigations.

According to state law, changes made on already approved construction contracts that exceed certain amounts have to go through the Alabama Attorney General's Office before the work is done with explanations given for the added expense.

But ASU approved more than $5 million in cost overruns for the stadium without getting such approval, according to the audit.

 

[Blacknbengal]

You behave yourself

I try baby. Pray for me.

 

[In_The_662]

College Board stands behind move to fire Ole Miss chancellor -- but looks like he'll be back.

UMMC has a budget of $1.6 billion this year, about 38 percent of the entire budget of $4.2 billion for all eight universities, and Perry said trustees wouldn’t be doing their job if they didn’t “exercise our appropriate control over their financial transactions.”

A review completed in September by the Ridgeland-based accounting firm of Matthews, Cutrer and Lindsay found numerous violations of College Board policy. All contracts over $100,000 are to be voted on by the board, as well as most leases. In at least six cases, UMMC sought retroactive approval for contracts and leases. But in more than 60 other cases, no approval was ever sought, the firm said. In other cases, contracts had no spending limits or completion dates, or showed that UMMC spent more than the amount negotiated by itself or the state’s Department of Information Technology Services.

But folks in the other thread in ST said we shouldn't have our own BOT. We should stick to what has been not working for us all these years in letting them decide what's best for us.

 

[jag4life]

This is the same thing that got MoB in the shape they were in. These folks are on that same pathway.

Nothing like Morris Brown. They just diverted money from financial aid to cover bills. No actual personal theft/kickbacks like ASU.

 

[J C]

Did the A&M adm and BOT violate state law in 2012 during the festivities of the MCC? If so what is the punishment?

 

[J C]

Nothing like Morris Brown. They just diverted money from financial aid to cover bills. No actual personal theft/kickbacks like ASU.

Please identify theft/kickbacks at ASU. We want to know.

 

[Blankman2k5]

Did the A&M adm and BOT violate state law in 2012 during the festivities of the MCC? If so what is the punishment?

Why are you acting sensitive about this? You said they did not violate state law, but at least according to this source they did. Now, I admit that Josh Moon seems to only want to report the negative events that occur dealing with your university, but at the same time the truth is the truth. The statement you made was that there were no state laws broken, I posted a quote from the article the refutes what you posted. The next step in an intelligent conversation would have been for you to offer evidence or at least a statement with some substance but instead you chose to post that up there.... we as a people have to do better

 

[J C]

Why are you acting sensitive about this? You said they did not violate state law, but at least according to this source they did. Now, I admit that Josh Moon seems to only want to report the negative events that occur dealing with your university, but at the same time the truth is the truth. The statement you made was that there were no state laws broken, I posted a quote from the article the refutes what you posted. The next step in an intelligent conversation would have been for you to offer evidence or at least a statement with some substance but instead you chose to post that up there.... we as a people have to do better

Have you read the most recent AMMU audit report from the State Public Examiners. You will find similar discretions. That's not being sensitive. I was trying to put this audit report in perspective.

 

[Tigerpride]

To be honest, a 10% overrun is a lot, but it is not uncommon on large projects. I believe 20% is the threshold most States uses before they start to question the excessive cost overrun of a project. In most cases, project budgets are built with a 10% to 15% contingency for unexpected cost additions. As for the ASU's stadium overrun, the real question should have been, were those overruns necessary to complete the project or were they just a means of helping someone to make more money?

I agree, I would not take up for BAMA State any more than I would take up for SU but i think this particuar article is bogus. Even the expenses for the trustees. They are adding in things that should not be included in the $75 per diem. Banquets, hospitality suites, etc.. are def in order when you have major events and you are not going to do that at $75 a day. From what I can tell, they only want these board members to pay for their own hotels if travel is not far. ...and 6.5M over budget is not a lot at all. Most projects expect to overrun that much.

But at the end of the day, it's still BAMA State.. and we know how this will end. .. which is why, as their rival, I am not overly concerned with them AT ALL!

 

[JAG89]

I agree, I would not take up for BAMA State any more than I would take up for SU but i think this particuar article is bogus. Even the expenses for the trustees. They are adding in things that should not be included in the $75 per diem. Banquets, hospitality suites, etc.. are def in order when you have major events and you are not going to do that at $75 a day. From what I can tell, they only want these board members to pay for their own hotels if travel is not far. ...and 6.5M over budget is not a lot at all. Most projects expect to overrun that much.

But at the end of the day, it's still BAMA State.. and we know how this will end. .. which is why, as their rival, I am not overly concerned with them AT ALL!

I'm about to have a heart attack. We do somewhat agree on something.

 

[Blankman2k5]

Have you read the most recent AMMU audit report from the State Public Examiners. You will find similar discretions. That's not being sensitive. I was trying to put this audit report in perspective.

Similar findings? I read the audit report IN FULL, as well as the documented response and the op-ed response from our president. Where did we violate state laws? It is documented that #yourasu did, though

 

[jag4life]

Any finding in an audit like this is likely a violation of state law. It is semantics. All you have to audit against is state law, so if something wasn't done correctly, it is a violation.

 

[JAG89]

Any finding in an audit like this is likely a violation of state law. It is semantics. All you have to audit against is state law, so if something wasn't done correctly, it is a violation.

Like my brother would say who's a 30 year veteran as a police office. If you look hard enough, everyone has violated some law. When I was on a credit union board in Virginia, the White folks on the board would violate all kinds of rules when it came to them getting high dollar low interest rate loans, but nothing was done about it, even after me and another board member pointed it out. I'm sure if I violated those same rules, it would be all over the media.