20080326

ASU Foundation possibly involved in misuse of funds

As I posted earlier, the ASU Foundation at Arizona State University has been criticized for financial improprieties. It is my opinion that this is a serious allegation and should be looked into more closely. If the ASU Foundation is indeed squandering money on frivolous expenditures something should be done. ASU is already being criticized for it's hiring contracts, Aramark and Great Western Erectors - to name two.

Here is an excerpt from the State Press article:

The Coalition for Justice at Great Western Erectors has said in a press conference Tuesday that the ASU Foundation spent too much money on overhead expenses and not enough on students.

According to a report circulated at a coalition press conference, millions of dollars that were donated to the foundation were spent on meals, entertainment, gifts, trophies and flowers.

The ASU Foundation's expenditures were not consistent with its stated mission to advance ASU and supply financial aid to ASU students.

But the foundation's president and CEO, Johnnie Ray, said that the allegedly exorbitant expenses, such as fees paid to asset managers, meal and gift expenses, along with salaries of top foundation employees, are normal operating expenses.

The growth of ASU Foundation's has resulted in increased spending to attract potential donors and hire more staff.

The payoff, he added, is evidenced by ASU's endowments growth —more than 50 percent since 2003.

Ray said a lot of the other information in the report was taken out of context.


Read the full article here.

Read a related post here.