Monday, December 3, 2012

UA must fill $4 million gap in advancement budget

Posted By on Mon, Dec 3, 2012 at 12:48 PM

G. David Gearhart
  • G. David Gearhart

University of Arkansas Chancellor David Gearhart released a message to the UA community today saying that the Division of University Advancement ended its fiscal year June 30 in arrears by $3.1 million and that the division's head, vice chancellor Brad Choate, and budget director, Joy Sharp, have been reassigned to positions outside the division and will no longer work for the university when their contracts end next June. Gearhart said he will manage the advancement division "for the foreseeable future."

The advancement office's budget was $10 million; half of its funding comes from interest on University of Arkansas Foundation assets and the other half from state dollars and tuition (Education & General Funds). Associate Vice Chancellor John Diamond said the division had been drawing down funds from the University Foundation, which provides half its funding from interest on the corpus, in advance of quarterly distributions for two or three years to keep the advancement office running. Gearhart has determined the office, which is properly staffed given the upcoming capital campaign, is underfunded by about $4 million; no malfeasance was discovered.

"... the division filled staffing needs while miscalculating the funding levels necessary to support those positions. The resulting imbalance was not detected because the division’s budget officers did not carefully monitor the flow of revenues and expenditures. This was not, and is not, an acceptable practice.

Diamond said that Choate notified the university immediately after discovering the shortfall. He also said that Gearhart would have funded the growth in the division had he been informed that its legitimate expenses were outpacing revenues.

The University will make up the shortfall from its emergency reserves fund with the understanding that the division will eventually repay the money. The division will also, starting Jan. 1, have a new revenue source: A cost recovery assessment fee of 10 to 15 percent on gifts to the university for such things as campus construction projects. "That will become part of the funding formula to keep the advancement division whole," Diamond said.

Choate will spend the remaining months on his contract working on the university's "long-term strategic plan for an upcoming capital campaign," Diamond said, and Sharp has been reassigned to the human resources office. Denise Reynolds, who works for Vice Chancellor for Finance and Administration Don Pederson, will handle the division's budget.

Diamond said no budget overruns of "this scope" had ever occurred at the university. "It's not uncommon for a division or unit to find itself toward the end of the fiscal year running short. But the natural thing to do is for the budget officer or whoever else is in charge to let the people higher up know there is a problem on the horizon."

Tags: , , ,

Favorite

Speaking of...

Comments (9)

Showing 1-9 of 9

Add a comment

 
Subscribe to this thread:
Showing 1-9 of 9

Add a comment

More by Leslie Newell Peacock

  • Instant (Polaroid) magic at Christ Church gallery

    The Blue Eyed Knocker group of photographers pay homage to the Polaroid instant camera with an exhibition, "Last Glimpses of Authentic Polaroid Art," opening Friday, July 1, at Christ Church's gallery. The show includes 36 photographs by fine art photographers Brandon Markin, Darrell Adams, Lynn Frost, Rachel Worthen and Rita Henry.
    • Jun 29, 2016
  • The long and winding road: No exception yet for 30 Crossing

    The Arkansas highway department's representative on the Metroplan board of directors told the board today that the department is requesting an exception to the planning agency's cap on six lanes for its 30 Crossing project to widen Interstate 30 from six to 10 (and more) lanes.
    • Jun 29, 2016
  • Ouachita River Bridge knocked out

    A Clark County truck accident Tuesday morning left the superstructure of the Ouachita River Bridge on state Highway 51 so damaged that the Arkansas Highway and Transportation Department has closed the bridge.
    • Jun 28, 2016
  • More »

Readers also liked…

  • Mmmm, no more pertaters. 'Sling Blade' dairy bar closing

    Dairy bar were "Sling Blade" was filmed is closing days. Pertaters available until about 7 p.m.
    • Nov 14, 2014
  • SWEPCO drops power line project across Ozarks

    Southwestern Electric Power Company announced in a news release today that it is dropping plans for a $116 million power line across Northwest Arkansas because the project is no longer needed. It would have covered 60 miles between Benton and Carroll Counties.
    • Dec 30, 2014
  • Father and son turned away from "Muslim-free" Hot Springs gun range for being brown

    A college student and his dad who visited a gun range over the weekend for some bonding time over target practice were told to leave after the owner grew suspicious that the pair were...Muslims! Nope, not Muslims — they just happened to not be white. Either way, though, it's rank discrimination.
    • Jan 13, 2015

Most Shared

  • Defense for Suhl asks judge to dismiss bribery indictment, citing Supreme Court decision in McDonnell case

    Attorneys for the businessman argue that his cash payments to a former deputy director of DHS, Steven Jones, did not constitute corruption. They say prosecutors cannot prove the money was given in exchange for any particular "official act" from Jones.
  • Nursing home bribery case details suspect judicial fund-raising

    Plaintiffs' lawyers made their case today to continue to trial with the civil suit over then-Judge Mike Maggio's reduction of a $5.2 million jury verdict in a nursing home negligence case to $1 million, a reduction he said he made in return for campaign contributions from the nursing home's owner.
  • Arkansas Heirloom Tomatoes at Edwards Food Giant for the Fourth of July weekend

    We are receiving 200-pounds of large heirloom tomatoes Friday morning from Times publisher and farmer Alan Leveritt. We have dark, brick red Carbons, Goldies (large, high acid golden tomatoes) and Annis Noire, a delicious French heirloom that is green with red marbling when ripe.
  • When America was great

    Donald Trump is right. There was a time when America was great and it didn't pussyfoot around to avoid offending people who thought they were victimized by discrimination. It was, let's see, the period after World War II, when everyone prospered and America was kicking butts, at home and abroad, and Arkansas's leaders were at the center of it.
  • Resistance grows nationally to freeway expansions

    The U.S. Public Interest Research Group has issued a news release about freeway expansion with relevance in Little Rock. It's about wasting money to widen freeways that only create more congestion. Sound familiar?

Most Recent Comments

Blogroll

 

© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation