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Morgan State Grilled on Money Management

By Jessica Harris
Black College Wire

Morgan State University President Earl S. Richardson, responding to questions about an audit that showed that the university did not properly account for nearly $16.8 million, has assured legislators that the university�s �operational environment� has improved.

Photo credit: Morgan State U. Earl S. Richardson said budget won't cover costs.

Meanwhile, Richardson said that with full-time enrollment and space for facilities on campus set to increase by 10 percent, the fiscal 2006 budget, while the first large increase for Morgan since 2002, is still not enough to cover the needs of the university.

"This means that the university will be educating 600 more students and maintaining over 140,000 additional square feet of space with $700,000 less in state operating support," Richardson said in his March 3 testimony.

Richardson was questioned about a November audit by the Maryland Department of Legislative Services that said that because of poor documentation and inadequate accounting practices and money monitoring, Morgan did not properly account for nearly $16.8 million from March 2001 to October 2003.

In a letter to the General Assembly�s Audit Committee, Legislative Auditor Bruce A. Myers said, "We also noted internal control or record keeping deficiencies relating to student financial aid, collections, student accounts receivable, computer security and equipment."

The university was given a chance to respond to the 14 findings of mismanagement.

"With a few exceptions, most of the audit issues were the result of an outdated data network and software system that required an enormous financial investment to upgrade," Richardson said.

In the previous audit, which took place on May 24, 2002, the university was cited on eight items. Five were repeated in the latest audit.

"The university recognizes and respects the value of the legislative audit function. It is very confident that the Legislative Auditors will find a much improved and responsive operational environment upon their return for the next compliance upon their return for the next compliance audit," Richardson said.

Richardson was also asked why the number of instructors decreased in 2005, while the personnel in other categories had increased.

The president said that in trying to contain costs as enrollment increases, the university had to hold some positions open.

The proposed budget for fiscal 2006 is $51.3 million. It includes a $1.6 million increase from last year for salaries and $700,000 for maintenance of facilities.

Though the budget has risen, the state did not leave any money for the growth that is to take place at the university, Richardson said. He complained of not having the resources to hire an adequate full-time faculty or to purchase up-to-date equipment to educate the increasing number of students.

To cover the expenses that the state will not, Morgan has set out to raise money through private fund raising. "We are in the middle of a five-year capital campaign with a goal to raise $25 million," Richardson said. "We have achieved that goal and are now in the planning stage to increase the goal and formulate a strategy for [fund] raising."

Jessica Harris, a student at Morgan State University, writes for the Spokesman.

Posted March 28, 2005