*From the point of view of a full professor
PRIDE
at the College of Business at the University of Southern Mississippi*
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Our core mission reflects taking PRIDE in all we do - Professionalism, Respect, Integrity, Discipline, Excellence
According to the “Accounting Policies” specified in the Notes to the 2005 Financial Statements:
USM “contributed” $1,367,512 to USM’s Foundation for “Wages and benefits, Utilities, Facilities,” etc.
“Contributions . . . are recognized as revenues in the period received.” Furthermore, “[r]evenues are reported as increases in unrestricted net assets. . .” Unrestricted assets (cash) “are not subject to donor-imposed stipulations.”
A typical USM Foundation “Endowment Fund Agreement” (i.e., mine) says,
“An administrative fee not to exceed 2% of the fair market value of the endowment fund on each December 31 will be charged to the fund.”
According to the 2005 Financial Statements, “Net Assets” total $58,046,498. Two percent of “Net Assets” is $1,160,930.
USM “contributed” $1,367,512 to USM’s Foundation for “Wages and benefits, Utilities, Facilities,” etc.
“Contributions . . . are recognized as revenues in the period received.” Furthermore, “[r]evenues are reported as increases in unrestricted net assets. . .” Unrestricted assets (cash) “are not subject to donor-imposed stipulations.”
A typical USM Foundation “Endowment Fund Agreement” (i.e., mine) says,
“An administrative fee not to exceed 2% of the fair market value of the endowment fund on each December 31 will be charged to the fund.”
According to the 2005 Financial Statements, “Net Assets” total $58,046,498. Two percent of “Net Assets” is $1,160,930.
Since USM “contributes” operating costs to its Foundation, for “Wages and benefits, Utilities, Facilities” etc., what is the “administrative fee" spent on? Is the $1,160,930 administrative fee now available to administrators to “do pretty much anything [they] want with.”