Post by Machiavelli on Jul 2, 2010 8:54:51 GMT -6
Office of the President
June 30, 2010
Open Letter to Campus Community:
During this past week, several news articles related to the Legislative Auditor’s Report caused many in our community to become concerned. I want to personally respond to these articles for two reasons. First, I want to reiterate the message that Grambling State University is undergoing major financial challenges; however, not to the extent that we are negligent in being good stewards of the public’s trust. Second, it is the goal of this administration to maintain a spirit of transparency and open communication with the campus community, especially when faced with potentially damaging news.
On June 30, 2009, Grambling’s stock investments were valued at $1 million less than the purchase price of $2.4 million for the fiscal year ending June 2009. This decline was attributed to the global investment market crisis. The global stock market is recovering and as of March 31, 2010, Grambling’s shares were valued at $1.9 million. The portfolio value for the fiscal year ending June 30, 2010 is yet to be determined.
Although the audit finding occurred in 2009, the stocks were purchased by the university between 2000 and 2004. The university ceased purchasing stocks in 2004 and initiated the transfer of stocks to lower risk securities in 2009. In addition, the university terminated the relationship with the investment firm which managed the investment portfolio during the period in which the decline in the value of the stocks occurred.
Grambling State University is one of many colleges and universities as well as businesses and individuals to lose money in the stock market. To ensure that this issue does not reoccur, we have adjusted our policies and practices to coincide with those established by the state of Louisiana.
It is my belief that the corrective actions submitted in response to the legislative auditor’s findings are appropriate and that they ensure the fiscal operations at Grambling State University are consistent with the law. Please be reminded that one of the eleven university priorities that I shared with you on January 21, 2010, was, “We will work with the Office of Finance and Administration and others to improve the financial and operational management of the university--we will create a culture of accountability. We will enhance the financial integrity and institutionalize corrective actions to address the citations of operational and financial audits.”
Our priority is to move Grambling State University forward and that includes ensuring that this university makes fiscally sound decisions in spending and investing public resources. We have established an inclusive strategic planning process to assist us with these efforts. We are committed to holding ourselves and this institution to a higher standard of moral and ethical accountability while ensuring that we are good stewards of the public’s trust.
Please, let’s not be distracted by half-truths. We are entering a NEW BEGINNING.
Sincerely,
Frank G. Pogue, Ph.D.
President
June 30, 2010
Open Letter to Campus Community:
During this past week, several news articles related to the Legislative Auditor’s Report caused many in our community to become concerned. I want to personally respond to these articles for two reasons. First, I want to reiterate the message that Grambling State University is undergoing major financial challenges; however, not to the extent that we are negligent in being good stewards of the public’s trust. Second, it is the goal of this administration to maintain a spirit of transparency and open communication with the campus community, especially when faced with potentially damaging news.
On June 30, 2009, Grambling’s stock investments were valued at $1 million less than the purchase price of $2.4 million for the fiscal year ending June 2009. This decline was attributed to the global investment market crisis. The global stock market is recovering and as of March 31, 2010, Grambling’s shares were valued at $1.9 million. The portfolio value for the fiscal year ending June 30, 2010 is yet to be determined.
Although the audit finding occurred in 2009, the stocks were purchased by the university between 2000 and 2004. The university ceased purchasing stocks in 2004 and initiated the transfer of stocks to lower risk securities in 2009. In addition, the university terminated the relationship with the investment firm which managed the investment portfolio during the period in which the decline in the value of the stocks occurred.
Grambling State University is one of many colleges and universities as well as businesses and individuals to lose money in the stock market. To ensure that this issue does not reoccur, we have adjusted our policies and practices to coincide with those established by the state of Louisiana.
It is my belief that the corrective actions submitted in response to the legislative auditor’s findings are appropriate and that they ensure the fiscal operations at Grambling State University are consistent with the law. Please be reminded that one of the eleven university priorities that I shared with you on January 21, 2010, was, “We will work with the Office of Finance and Administration and others to improve the financial and operational management of the university--we will create a culture of accountability. We will enhance the financial integrity and institutionalize corrective actions to address the citations of operational and financial audits.”
Our priority is to move Grambling State University forward and that includes ensuring that this university makes fiscally sound decisions in spending and investing public resources. We have established an inclusive strategic planning process to assist us with these efforts. We are committed to holding ourselves and this institution to a higher standard of moral and ethical accountability while ensuring that we are good stewards of the public’s trust.
Please, let’s not be distracted by half-truths. We are entering a NEW BEGINNING.
Sincerely,
Frank G. Pogue, Ph.D.
President