Daymn Morris Brown



Man, I'm tellin' ya...

GSU wasn't the end of it!! They are gonna probe and prod until they take us out!!!

What ticks me off is that we do one helluva job helpin' them do it!!!
 
[ The Atlanta Journal-Constitution: 10/9/02 ]

Alumni, leaders rally round Morris Brown

By PATTI GHEZZI
Atlanta Journal-Constitution Staff Writer

? Businessman tapped to lead Morris Brown
? Feds investigate use of financial aid
? President says he'll fix problems or quit
? Atlanta/South Metro community page





Several Atlanta leaders pledged support, though not necessarily cash, this week to strapped Morris Brown College.

The Rev. Gerald Durley of Providence Missionary Baptist Church said he planned a "major effort" to solicit donations from graduates of historically black colleges and members of black churches.

"We're waiting to see what the best way is for us to get involved," he said. "These are not insurmountable odds."

Morris Brown College is $23 million in debt, according to Robert Taylor, the school's new president. In the past, the college has gotten out of debt through fund-raising.

But the school has never faced so much red ink. Federal officials are investigating whether administrators illegally used millions in student aid money to pay overdue bills. Dozens of vendors have sued over nonpayment.

The school's accreditation is at stake. Officials of the Southern Association of Colleges and Schools will decide in December whether to lift the current probation, continue it or strip the school of its accreditation. If the school loses accreditation, its students would not be eligible for federal financial aid. That would be a crushing blow, because more than 90 percent of students rely on financial aid, and the school depends on that money for 70 percent of its income.

Taylor declined comment this week, though he said last week he was convinced the new administration could get the financial problems under control.

Students and alumni have responded positively to Taylor's forthright leadership style.

Samuel D. Jolley Jr., a former Morris Brown president who now runs the Atlanta University Center Inc., which provides services such as shuttling among campuses, said: "He has a proven record of success, and we are confident that under his leadership Morris Brown will be able to work out whatever problems they have."

Interdenominational Theological Center, Morris Brown's next-door neighbor, released a statement pledging counsel, advice and prayer. "Morris Brown College has a long tradition in the Atlanta University Center of being a cooperative partner," acting President Oliver J. Haney Jr. said.

Atlanta University Center includes Morris Brown, ITC, Morehouse College, Morehouse School of Medicine, Spelman College and Clark Atlanta University. The schools share some services, such as a library.

A Morehouse College spokeswoman said, "We are private institutions that operate independently, so there wouldn't be any efforts under way to help Morris Brown."

Clark Atlanta University and Spelman College did not respond to requests for comment, nor did Big Bethel AME Church. Morris Brown was founded in 1885 by the African Methodist Episcopal Church.

Morris Brown alumni are expected to throng the campus Oct. 26 for homecoming. But school officials shouldn't wait that long to ask for money, said Claybon Edwards, an alumnus who owns a funeral home in Fort Valley.

"I will be giving, as I always do; it's something that is too valuable to lose," he said. "But you have to solicit. You can't wait. They need to be asking now. You can't expect others to help you when you don't help yourself."

Lorenzo Curry, an alumnus from Alabama, will participate in homecoming with his wife, also a Morris Brown graduate. A member of the school's national alumni association, he said: "We're going to do everything possible to keep the school going. We're always fund-raising. We don't plan to let [Morris Brown] die."

Atlanta City Councilman Ceasar Mitchell, a Morehouse graduate whose mother and grandmother graduated from Morris Brown, said he supported the school. "I am confident the school will weather the current storm."
 
Re: Man, I'm tellin' ya...

Originally posted by Jaguar Diehard
GSU wasn't the end of it!! They are gonna probe and prod until they take us out!!!

What ticks me off is that we do one helluva job helpin' them do it!!!

I don't know if they have to prod and I don't believe it's a conspiracy. Like you said we are helping them out, shoot it's just people doing their jobs. When 50 students can't get aid at another school because records say they recieved aid at MBC, and they said they didn't , you need to investigate. The problem is that we have sometimes unqualified people in positions of power and those who have the sense sometimes forget how to use it. So we get in trouble.

If MBC were wise they would have buckets with people all over the campus soliciting donations for HC weekend. If every one who attended their game contributed 5 bucks they could have a good fundraiser just over that weekend. But guess what, due to all that cash being around, I betcha it would be mismanaged too. :(
 
This another travesty to our HBCU's. I have said this over and over, we need God fearing people administering our colleges and universities. We need to get rid of all these money hungry presidents that doesn't put the interests of the students first. The board of trustees doesn't seem to get involved until the schools are almost bankrupt. What are they put in place to do? Are they there to watch the schools decay or are they there to make sensible decisions for the schools? The alumnis also need to get more involved with what is going on with their schools other than sporting events. We need people that care about our schools and also that has business sense when it comes to raising funds for these schools. The alumni's and supporter like the churches need to step in and help this school get out of debt. There are churches in Atlanta that could bail this school out in no time (Bishop Long and Dollar are prime examples of churches that can lend a helping hand.) We as a people need to get our priorities in order.
 
Frontpage in Atl. Newspaper

Morris Brown ex-chief says student aid paid bills

By KELLY SIMMONS
Atlanta Journal-Constitution Staff Writer



"We paid the vendors," Morris Brown's ex-president Dolores Cross says.


Previous stories
? Morris Brown at the brink
? Laptop for every student is PR boon turned bust
? Morris Brown's recent woes
? Some got burned by financial aid mess




Former Morris Brown College President Dolores Cross said the school used $8 million in student financial aid money to pay bills, a move federal officials say could be illegal.

In an interview from Chicago, where she now lives, Cross said the U.S. Department of Education has overreacted in its review of financial practices at Morris Brown.

"When the money came in, we paid the vendors," said Cross, who resigned in February. "When you have a college that is 82 percent tuition-driven, when money comes in you pay bills. You take care of faculty."

Federal investigators are exploring whether the Atlanta private college committed fraud in January by using the federal student aid money to pay its expenses rather than disbursing the funds to students' accounts.

Morris Brown was ordered to repay the Education Department $5.4 million because the school could not prove students qualified for the funds or that all of them were even enrolled.

So far, the school has not repaid any of the money, according to the Department of Education, which has documented the financial problems at Morris Brown for more than three years.

The alleged mismanagement of financial aid and the school's $23 million debt are creating serious problems as Morris Brown approaches an accreditation review.

Representatives from the Southern Association of Colleges and Schools will visit Morris Brown on Oct. 28-31 to review its finances and staffing.

The accreditation group put the school on probation in December for poor accounting practices and for having too few faculty members with advanced degrees in their subjects.

Morris Brown's new president, Charles Taylor, said Wednesday he was working on a recovery plan for the school that he would present to the accreditation committee. He would not provide any details and declined to say whether anyone has offered donations to help the school with its debts.

"There are lots of people, lots of alumni and others, who have been very supportive," said Taylor, who was hired in September to lead the historically black school. "We have to be prepared to present a coherent plan."

In addition to the accreditation probation, the Department of Education in January put Morris Brown on a financial aid reimbursement system, which means the school must foot the bills for student aid expenses and then apply to the federal government for repayment.

The agency took the action after the school failed to notify the department that it had received $8 million in federal aid. Such notification had been a requirement since July 2001, when federal authorities determined the school needed additional monitoring of its financial aid system.

So far this year, federal officials have not approved any financial aid requests from Morris Brown. Taylor said the school has been using other federal funding and money from the school's auxiliary and athletic programs to pay operating expenses.

Cross said she believes she was being unfairly blamed for the school's problems with financial aid and that many of the problems had begun before she arrived in 1998.

Morris Brown was under the reimbursement requirement at that time for problems in its financial aid office, and audits showed the school needed a better money management system and better monitoring of its financial aid program.

Cross said she worked with the Department of Education to remedy the problems. Morris Brown was required to reimburse the Education Department $423,959 in federal aid the school could not justify receiving.

Cross and former financial aid director Parvesh Singh blamed Morris Brown's former finance officer, Johnnie Brown, for not returning money to the Department of Education once the school realized affected students had dropped out or were not enrolled.

Singh, who resigned at the same time as Cross, said he learned in September 2001 that checks he had instructed Brown to return to the Education Department months earlier were still at the school.

"There were many, many instances where I had requested a check in April and it was not mailed till September," Singh said in a telephone interview from San Diego, where he is financial aid director for Alliant International University.

The funds had not been returned to the Education Department because "there was a cash flow problem," Singh said the finance officer told him. "If we mailed a check it would have bounced."

However, Education Department documents suggest Singh may have been responsible for withholding the repayment of funds. "It appears Mr. Singh keeps many of the checks that should be sent back to lenders in his desk," states a memo from Robert Brooks, director of the Georgia Student Finance Authority state loans division.

Efforts by the newspaper to locate Brown, the finance officer who left Morris Brown College in the spring, were unsuccessful.
 
You know it's a small debt compared to the U. S. deficit. The government should pay it because like it or not the government is responsible to. Morris Brown, just like Grambling will get out of this debt. All HCBU'S all have gone through or unfortunately will go through it. Times are tough, and I really think that DUMBO in the White House has a lot to do with it. You did'nt hear about these problems when Bill Clinton was in office. On the other hand though, people in Atlanta really need to support Morris Brown's athletic activities. Finance is not complicated. You either make sales or you don't. Maybe Morris Brown should do what UAPB has done since moving to D1, and that is schedule a brutal basketball schedule with the prime time schools for financial gurantees, and that way they can pay their bills.
 
Originally posted by pbla
and that is schedule a brutal basketball schedule with the prime time schools for financial gurantees, and that way they can pay their bills.
They did that last year. They only had a hand full of home games and a boatload of those road games against the larger schools.
But their upcoming bball schedule is different. They still have those road games for the $$$, but they seem to have more games against HBCUs.

As far as people in Atl supporting the sports events over there, the alumni and students of MoB need to support it first.
 
Originally posted by mighty hornet

They did that last year. They only had a hand full of home games and a boatload of those road games against the larger schools.
But their upcoming bball schedule is different. They still have those road games for the $$$, but they seem to have more games against HBCUs.

As far as people in Atl supporting the sports events over there, the alumni and students of MoB need to support it first.

This is true about their basketball schedule. Among the conferences that they played were Big Ten and the SEC.

As a person who know a few Morris Brown grads and former professors, I would love to see the school stay open. They accepts students that most schools would take. But I agree with mh, the alumni at MBC need to support (donating and sporting events) it first.
 
Audit: Financial troubles jeopardize Morris Brown

By KELLY SIMMONS
Atlanta Journal-Constitution Staff Writer


Morris Brown College's finances have substantially deteriorated in the past year and raise serious questions about the school's ability to stay open, an audit shows.

The audit for the year ending June 30, 2002, shows the Atlanta private school has outstanding debts that far exceed its available assets. The school had $77,700 in its bank account at the end of the fiscal year, and $17.3 million in outstanding bills. Morris Brown owes $7.4 million in loans, most of them taken out within the last fiscal year. The school also has a $14 million bond debt.

Among the creditors owed money by the school is the Atlanta University Center, which provides library and data processing services to Atlanta's six historically black colleges and universities. As of June 30, 2002, Morris Brown owed the center $4.8 million.

The audit also shows the school spent in excess of $2 million from its endowment to cover operating expenses, "which may be in violation of the donor's intentions."

The college is on probation with its accrediting agency. If it loses accreditation, the federal government would cut off financial aid funds for Morris Brown students. Those funds account for 70 percent of the money the school receives.

"These factors raise substantial doubt about the College's ability to continue as a going concern," auditors from the Wesley Peachtree Group wrote. In accounting terms, that means there is a strong possibility that the school cannot continue operating.

"The college is experiencing significant cash flow problems," according to the auditors, who noted a $16 million decline in the school's assets in 2002. "Additionally, the College has not met certain administrative and regulatory requirements in the operation of its Federal student financial assistance programs and is in jeopardy of losing participation in these programs."

Morris Brown has not met the restrictive covenants of some of its bonds, and "bondholders have the right to immediately accelerate all payments due," auditors wrote.

And during fiscal year 2002, school administrators took out a $1 million bank loan without the approval of trustees, which is required for loans in excess of $200,000, the audit states.

Morris Brown President Charles Taylor, who has estimated the school's total debt at $23 million, could not be reached for comment Thursday. Former president Dolores Cross, who resigned from the school in February, also could not be reached.

On Wednesday, Taylor said he was developing a recovery plan that would show how the school intended to cut costs and pay debts. He said he would not discuss details until he has presented the plan to the Southern Association of Colleges and Schools. It will visit Morris Brown Oct. 28-31 to review the school's accreditation status.

The audit was prepared at the request of the accrediting association, which placed Morris Brown on probation in December for poor accounting practices and for having too few faculty members with advanced degrees in their subjects. The school's financial status is expected to play a major role in whether its accreditation will be extended in December.

The demise of Morris Brown would be a blow to the community, said M. Christopher Brown, associate professor and senior research associate at the Center for the Study of Higher Education at Penn State University.

The college, whose primary mission is to assist minority and economically disadvantaged students, is an economic generator in the community providing jobs to Atlantans, Brown said. It also offers an education to students who may not have another option.

"Can we absorb all of those students into existing institutions?" said Brown, who is considered an expert on historically black schools. "Do [the students] possess the academic portfolio that would allow them to be absorbed into other institutions?"

Problems with Morris Brown's handling of federal financial aid led to its operating deficit, auditors said.

So far, Morris Brown has been ordered to repay the U.S. Department of Education nearly $6 million that the school received for students who did not qualify for financial aid, or who dropped out or never enrolled. The department may demand additional payments.

The Education Department denied scores of the school's requests for financial aid last year because they contained inaccuracies or were incomplete, or Morris Brown could not prove the students were enrolled.

The audit questions whether Morris Brown students received the full amount of aid for which they were eligible in fiscal year 2002. In prior years, auditors noted, the school has received about $20 million for 2,500 students. In 2002, the school received $9.5 million for 2,800 enrolled students.

"It would appear that there may be a substantial amount of [financial] aid that has not been claimed for the year ended June 30, 2002," the audit states. Wesley Peachtree Group auditor Don Murphy did not respond Thursday to a request for comment on the findings. Murphy has handled the school's audits for several years.

So far this academic year, the school has not received any federal student aid money. Taylor said the school was using contributions, revenue from auxiliary and athletic programs and federal money designated for historically black institutions to pay its bills.

However, the school could lose some of those funds. The audit shows school officials have not met Department of Education reporting requirements for the $2.1 million it receives annually as a historically black school. That could lead to termination of the grant and the school may be required to return some of the money, the audit states.

Reached by telephone Thursday, two members of the Morris Brown board of trustees declined to comment on the audit. Dr. Frances Blake and Theodore R. Williams said they had received the document on Wednesday, but neither had read it. The board's chairman, Bishop Frank C. Cummings, did not return a telephone call left at his office.

Alumni say they'll continue to support the school and are planning activities for homecoming weekend -- just days before the accreditation review.

"We've got to convince the financial markets we are committed to Morris Brown College," said Atlanta City Councilman Derrick Boazman, an alumni and adjunct professor at the school. "We have to make sure this can never happen again."
 
Originally posted by PsiSnake
The school had $77,700 in its bank account at the end of the fiscal year, and $17.3 million in outstanding bills.
Oh damn
:( :(

Even if MoB is able to keep their accreditation and somehow keep their doors open next year, you gotta think that a good number of the current students are gonna bail out and the next freshman class will be realllll small.

This doesn't look good for MoB.
 
Originally posted by mighty hornet

Oh damn
:( :(

Even if MoB is able to keep their accreditation and somehow keep their doors open next year, you gotta think that a good number of the current students are gonna bail out and the next freshman class will be realllll small.

This doesn't look good for MoB.

Absolutely, which is unfortunate. :smh:

I heard on the radio this morning(V-103), that a lot of students are already talking about transfering or have.
 
Originally posted by mighty hornet

Oh damn
:( :(

Even if MoB is able to keep their accreditation and somehow keep their doors open next year, you gotta think that a good number of the current students are gonna bail out and the next freshman class will be realllll small.

This doesn't look good for MoB.

Who in their right mind would submit or enroll for this school!
 

It seems like their accounting system just fell apart, the accounting system involves every person that is in the system. Maybe someone who had the knowledge of the system left for another job for various reasons.

If they had unexpected expenses that were unsually high, they probally did take from a particular fund to pay a light bill, gas bill or water bill. Who knows what the reasons are really are or maybe it was just plain neglect of theft.
 
10-24-02

Morris Brown seeks trustees with fund-raising savvy

By PAUL DONSKY
Atlanta Journal-Constitution Staff Writer



Morris Brown College's board of trustees must be reorganized if the school is to recover from the worst financial crisis in its history, the board chairman says.

Bishop Frank C. Cummings said he wanted to bring "new blood" to the board of the historically black college, particularly people with business experience.

"You need to bring to the table those persons who are connected, who have influence," he said. "Those people are capable of helping the school."

The private college in Atlanta is $23 million in debt, according to its new president, Charles Taylor, and a federal investigation is looking into whether administrators illegally received millions in student aid money and used it to pay overdue bills.

Morris Brown is on probation with its accrediting agency because of shoddy bookkeeping and staffing problems. A recent report by an independent auditor said these problems "raise substantial doubt about the college's ability to continue" operating.

Cummings declined to identify any prospective new board members for Morris Brown.

While careful not to criticize the current board, Cummings made it clear that a shake-up was needed -- and imminent. He wants to name new board members before the end of the year. No sitting trustees would be removed, he said.

"A lot of people on the board have been there for some time, and there's nothing wrong with that," Cummings said, but "I want to make sure we bring new energy, new ideas to the board."

Of the school's 20 board members, only a few are business people, according to a list provided by the college. The African Methodist Episcopal Church, which founded Morris Brown in 1885, still wields influence. Six board members, including the chairman, are ministers. Every board chairman since the school's founding has been an AME bishop.

The roster also includes a retired physician and a retired professor, the head of a New York City-based environmental group, and one representative each from Morris Brown's student body, faculty and alumni. Business people include Robert James, president of Carver State Bank in Savannah, and Lee Rhyant, a vice president at Lockheed Martin Corp. Also on the board: state Senate Majority Leader Charles Walker (D-Augusta).

When asked whether he was trying to professionalize the board, Cummings replied, "Please believe I want that so badly."

Current Morris Brown board members did not return phone calls this week seeking comment on Cumming's plans. Most board members contacted in recent weeks have declined to talk about the school's financial troubles.

The Southern Association of Colleges and Schools, the accrediting agency for Morris Brown, is scheduled to visit the campus next week and is expected to make a decision in December on whether to renew accreditation.

If Morris Brown lost accreditation, it would not be eligible to receive federal financial aid for its students -- a major blow because more than 90 percent of the school's 2,500 students need that aid to help pay their tuition.

When Cummings joined the board two years ago, meetings were being held twice a year -- not frequently enough, he said, to successfully guide the college. In recent months the board has been meeting once or twice a month, Cummings said.

Bishop Adam J. Richardson Jr., president of the 2.5-million-member African Methodist Episcopal Church, said he supported Cummings' efforts to change the board.

"All of our schools require a good mix of individuals that serve on the board," Richardson said in a telephone interview from his home in Tallahassee. "It requires intelligence and creativity to overcome the kind of situation that Morris Brown is in right now, and this may be a move in the right direction."

Richardson said he expected that the church would dig into its coffers to help Morris Brown, though he said the school had yet to ask for money.

Morris Brown, the state's only college founded by blacks, began in the basement of Big Bethel African Methodist Episcopal Church in downtown Atlanta. The Rev. James Davis, pastor of the church and a member of Morris Brown's board, has not returned numerous phone calls in recent weeks about the college's financial woes.

Experts in school governance say it's common for small, religiously affiliated schools like Morris Brown to have boards that are top-heavy with aging church officials.

M. Christopher Brown II, associate professor and senior research associate at the Center for the Study of Higher Education at Pennsylvania State University, said Morris Brown should be looking for younger leaders.

"To select an individual at the end of their career and ask them to muster up the energy to serve, repair and rebuild is a daunting task," he said.

Tom Ingram, president of the Washington-based Association of Governing Boards of Colleges and Universities, said it was vital for church-affiliated schools to professionalize their boards.

"We do need our fair share of sophisticated people on boards of trustees who understand balance sheets and cash flow and can also help with fund-raising," Ingram said.

Making the transition is not easy.

"It's difficult to change a board from an honorific, polite, passive enterprise to a more conscientious and professional group of people without a chairman who is of like mind and experience," Ingram said.
 
MoB. the enron of Black collges.

but someone did have a point, New birth could help, i am a member hell half of dekalb county are members. BUt jsut as Grambling MoB will survive. they might jsut have to humble themselfs and merge with some school. Personally i think The AUC should be one big school. how great would that be.
 
AJC Columnist suggesting the school close

http://www.accessatlanta.com/ajc/opinion/tucker/2002/102302.html

[ The Atlanta Journal-Constitution: 10/24/02 ]

Foundering school must face awful truth: It's time to close

Morris Brown College, like other historically black colleges and universities, has been an important incubator for Atlanta's African-American middle class, educating generations of lawyers, academics and entrepreneurs. Given that noble history, Morris Brown alumni must be deeply saddened by the school's current distress.

The college is on the verge of financial collapse; it is deeply in debt and under investigation for misusing federal funds. While its new president, Charles Taylor, keeps assuring the public that its doors will stay open, the situation is dire. Unless a benefactor with deep pockets steps forward soon, it is hard to see how the college can keep going.

Perhaps the best thing the board of trustees could do for the institution and its proud legacy is to start planning now to shut down the college at the end of the academic year. That would allow seniors to graduate while giving other students time to plan a transfer to other institutions where they can finish their studies. Drawing out a financial crisis that might end in a sudden overnight closing would not be in the best interests of the student body or the faculty.

Even as I write this, I know I will be inundated by cries of protest from Morris Brown's administrators, faculty, students and alumni, many of whom will accuse me of selling short a fine institution that ought to get a chance to correct its financial shortcomings and get back on track. Instead of advocating a closure, many will ask, why not solicit donations? Why not urge Atlanta's big corporations to pitch in and save the college?

I have no doubt that alumni and administrators are doing just that at this very moment -- calling corporations, foundations and wealthy alumni pleading for a bailout. And if the college finds the funds to last one or two more years, that's not a bad outcome. But it only delays the inevitable.

It is time to face the facts: Morris Brown is among hundreds of financially weak historically black colleges, most of which cannot survive another 20 years. Nor should they. They were born of a historic injustice -- the vicious laws of segregation that kept African-American students, no matter how competent, out of historically white colleges and universities. With those laws long since repealed, scores of segregated colleges and universities are now looking for a new reason to exist.

(A distinction is called for here: There is absolutely no logic for the continued existence of even one racially segregated public college or university. As the University of Georgia should be racially diverse, so should the largely black Fort Valley State. Private colleges, however, often spring from the special needs of a narrow constituency -- women students, black students, Jewish students -- and they should continue to be available to those constituencies.)

Some historically black colleges and universities will keep their doors open -- as well they should. But there is a Darwinian logic at work here: Only the strong will survive. Those historically black colleges and universities that are still thriving are those that have been able to adjust to modern realities, hiring strong presidents who broaden fund-raising strategies and raise academic standards. Morehouse College and Spelman College are among the local examples.

Supporters of Morris Brown argue that its importance lies in its dedication to those students who are slightly less academically prepared than the typical Morehouse or Spelman student but who will thrive nevertheless in a nurturing environment. Indeed, there ought to be a few colleges available that cater to such students. But how many? Dozens of historically black colleges in the country now claim that as their mission. Not all of them can or should survive.

Indeed, two of the storied institutions of the Atlanta University Center complex -- Clark College and Atlanta University -- faced this very crisis in the 1980s, both struggling to survive in a changed universe of blossoming educational opportunities for black students. The two schools ended up combining in 1988.

It is not clear whether the opportunity for merger is available to Morris Brown. But it is quite clear that it cannot survive another decade of skating close to the edge, unable to attract quality faculty and with students constantly worried that the school could shut down any day.

The students deserve better. The administration and board of trustees should face the inevitable now and plan a timely closing.

--------------------------------------------------------------------------------
tucker.gif

Cynthia Tucker is the editorial page editor. Her column appears Wednesdays and Sundays.
 
10-28-02

Morris Brown Details Survival Plan


Web Editor: Sean Rowe
Reported By: Mike Stevens
Last Modified: 10/28/2002 1:28:04 PM
Suffering a $23 million debt, Morris Brown College made a last-ditch effort Monday to keep its doors open and not lose its accreditation.

College President Luns C. Richardson stepped up to outline a school recovery plan aimed at quelling fears that the school would fold under the strain of severe debt and federal allegations of fraud. Federal officials are investigating whether federal funds earmarked for student financial aid were actually used to cover other costs.

To that end, the Southern Associates of Colleges and Schools recently placed Morris Brown on probation for sloppy bookkeeping and failing to employ enough instructors with advanced degrees.

Many of Morris Brown's estimated 2,000 students said they still fostered hope that their school would survive. The message resounded especially strong among the upper-classmen.

Junior Eddie Benton said, "I hope the school keeps its accreditation because I've got a lot to lose."

Senior Anthony Adams said, "I could see it coming, but it was only a matter of time before they found out."

Last Friday, Morris Brown alumni pledged $2.5 million to help the school's fiscal woes. The Alumni Association is looking to raise $50 million during the next year.
 
Originally posted by pbla
You know it's a small debt compared to the U. S. deficit. The government should pay it because like it or not the government is responsible to. Morris Brown, just like Grambling will get out of this debt..........

Grambling woes did not stem from cash flow or debt problems. Gram was never broke. We had incompetence in accounting dept., which caused problems (book keeping).
 
[ The Atlanta Journal-Constitution: 11/1/02 ]

Morris Brown's new money bind with feds

By KELLY SIMMONS and PAUL DONSKY
Atlanta Journal-Constitution Staff Writers



Federal officials say they may withhold funding from Morris Brown College, even as the school launches a recovery plan that could include tuition increases and job cuts.

The Department of Education could deny federal student aid funding to Morris Brown if the school does not repay money it owes the department or enter into a formal repayment agreement. So far, no repayment agreement has been reached, said Education Department spokeswoman Jane Glickman.

The private college in Atlanta owes the department $5.4 million in federal aid it received earlier this year for students who were not enrolled at the school or who did not qualify for the money. The department also determined recently that Morris Brown owed $100,000 in financial aid funds it received in 1997-98 and has been unable to justify, according to documents obtained under the federal Freedom of Information Act. Federal officials are reviewing audits from other years to determine whether the college must return more money.

Glickman said Thursday that the department could withhold federal student aid money from the school to use as repayment on the debt. So far this semester, Morris Brown has received no federal student aid because it has filed incomplete or inaccurate requests for the funds.

She said the department was working with the school to settle the debt, but she could not say when an agreement might be reached.

"Repayment terms for the $5.4 million are under discussion," Glickman said.

Morris Brown President Charles Taylor did not return calls from a reporter Thursday. But Atlanta City Councilman Derrick Boazman, a Morris Brown alumnus and part-time instructor, said the historically black school was addressing its financial woes.

According to Boazman, Taylor's recovery plan includes restructuring the school's $23 million debt and cutting costs, possibly by reducing programs and eliminating jobs.

Taylor "made it very clear there will be some painful choices to be made," Boazman said.

The threat of federal funding cuts comes on the heels of a make-or-break accreditation review, completed Wednesday. A team from the Southern Association of Colleges and Schools spent three days at the college, talking to administrators and scrutinizing financial records. Morris Brown has been on probation with the accrediting agency since December for sloppy bookkeeping and failing to have enough instructors with advanced degrees in some subjects.

Members of the association are scheduled to vote on Morris Brown's accreditation in December, using information collected during this week's visit. The association, which conducts its reviews in private, would not comment on the visit.

If Morris Brown's accreditation is revoked, the school no longer would be eligible for federal aid.

The federal money is critical to the college, which depends on the aid for 70 percent of its revenue. More than 90 percent of Morris Brown's students depend on the federal aid to help pay for their tuition, fees and housing costs.

Boazman, who was briefed on Taylor's recovery plan during a meeting of Morris Brown Alumni last weekend, remains optimistic that the 117-year-old school will not lose its accreditation or its funding.

However, the instructor said that Morris Brown could be forced to cut enrollment by as much as 20 percent -- a reduction of about 500 students. Boazman said that Taylor estimated the school was losing about $2,500 per student -- a loss that could be recovered by increasing tuition and fees. Students currently pay $10,200 a year for their tuition and fees, which is at least $2,000 less than at the other Atlanta University Center schools.

Taylor told alumni that some jobs already had been eliminated, but did not say how many or in which departments, Boazman said.

Programs and activities, including athletics, also could be cut, Boazman said.

"I would not rule anything out at this point," he said. "I don't see a time when we'll have to cut out an entire program, but I do see a time where whole programs will be put under great scrutiny."

Elevating Morris Brown's athletic programs from NCAA Division II to Division I two years ago was expensive, increasing the athletic budget from $2.2 million to $4.3 million, according to the school's athletic director.

At the time, an accreditation review committee warned against the move, said James Rogers, executive director of the Southern Association of Colleges and Schools' Commission on Colleges.

"The committee said that's going to be a very expensive program, you might want to think twice about doing that," Rogers said Thursday. The same committee also warned Morris Brown administrators that the software system they were considering to manage financial aid accounts was complex and would require training, he said.

The school has blamed problems with its Banner software for some of its financial aid errors.

The Department of Education has identified numerous instances in which the college applied for and received financial aid for students who dropped out or were not enrolled. So far, the department has ordered Morris Brown to repay $6 million in student aid money that the college could not justify receiving.

Federal investigators are looking into whether the school committed fraud by using the student aid money for other purposes, possibly to pay overdue bills. Former President Dolores Cross has told The Atlanta Journal-Constitution that some of the aid money was used to pay bills.
 
Originally posted by PsiSnake
However, the instructor said that Morris Brown could be forced to cut enrollment by as much as 20 percent -- a reduction of about 500 students.
:( :(

How do you cut student enrollment? Don't have a freshman class or tell some returning students to not come back?
 
Originally posted by mighty hornet

:( :(

How do you cut student enrollment? Don't have a freshman class or tell some returning students to not come back?

~shrugs shoulders~

I guess those students that have outstanding bills will be cut loose; or when they cut certain programs will eliminate students.

The future doesnt look good for Morris Brown; but I believe the SACS gone extend the probationary period another six months..maybe a year; and if things still aint straight at MBC, then its over. :smh:
 
MORRIS BROWN'S RECENT WOES



FEBRUARY 1998: Audits show Morris Brown College mismanaged federal aid for students. Feds put school on "reimbursement" for student aid, a process in which federal officials carefully inspect each application before funds are approved.

JUNE 1999: Dolores Cross becomes president.

SEPT. 1999-MARCH 2000:

Feds help MBC develop process to apply for student aid.

MARCH 2000: MBC agrees to repay feds $463,000 in student aid money it couldn't justify receiving. Feds take school off reimbursement.

AUGUST 2000: MBC announces it will become nation's first historically black college to go wireless.

NOV./DEC. 2000: MBC students complain to state about inaccurate financial aid awards.

JANUARY 2001: State conducts on-site review, requires MBC to return more than $1 million in loans for students. State notifies feds of potential problem in financial aid office.

APRIL 2001: Feds begin assessment of financial aid office at MBC.

JUNE/JULY 2001:

Assessment turns up numerous duplicate awards to students and disbursements for people not enrolled at MBC.

AUGUST 2001: Feds consider putting school back on reimbursement but hold off because of upcoming on-site visit by the college's accreditation agency. MBC is told to have student aid approved before it is drawn down from federal accounts.

AUG./NOV./DEC. 2001: Feds do on-site audit of financial aid disbursement, find 80-90 percent error rate in student files. Feds tell Cross that on-site monitoring will continue through spring term.

DECEMBER 2001: The Southern Association of Colleges and Schools, Morris Brown's accreditation agency, puts the college on probation for poor financial management and staffing concerns.

DECEMBER 2001: Computer Sales International sues MBC for $4.2 million for failing to pay for students' laptops.

DECEMBER 2001: MBC announces that students who have unpaid bills will not get housing for spring semester.

JANUARY 2002: MBC draws down $8 million in federal aid without prior approval from feds. School begins repaying debts to vendors. MBC is placed on reimbursement. Inspector general's office is notified of potential fraud.

FEB./MARCH 2002: Feds begin analysis to determine how much of the $8 million MBC must return. Cross and Financial Aid Director Parvesh Singh resign.

JULY 2002: Analysis by private firm shows MBC must return $5.39 million to feds. College requests payment plan.

AUGUST 2002: Fall semester begins.

SEPTEMBER 2002: Feds reject 100 percent of school's applications for federal aid because of errors. Charles Taylor becomes president.

SEPT. 18, 2002: U.S. immigration officials charge MBC professor with selling visas to foreigners who don't enroll at the college. Feds investigate whether school also received financial aid for these students.

OCT. 1, 2002: Southern Association deadline for fiscal year 2002 audit.

OCT. 28, 2002: Southern Association to begin visit.

DEC. 10, 2002: Southern Association to announce status of MBC's accreditation
 
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