Tuesday, June 12, 2007

An "Unintended Negative Consequence"

We all know that Graham is adamant about Penn State not being covered any new Right-To-Know law and he has given a laundry list of reasons for his opposition. But are his stated reason the only ones? Or could the prospect of something like this be lurking in the back of his head when he talks about the "profound negative impact on Pennsylvania's state-related research universities," of a new Right-To-Know law?

A former treasurer of Ohio State University inflated the size of the institution’s endowment in his reports, but an independent audit by Deloitte Financial Advisory Services has found no evidence of fraud or misappropriation of the money, The Columbus Dispatch reported today.

The former official, James Nichols, retired on December 31. According tothe audit, he misled donors and trustees, reporting to them that the endowment was about $500-million larger in 2005 than it really was. He included operating-fund investments and donated money in that figure, amounts that should have been accounted for separately.

Mr. Nichols also failed to follow university policy when he did not sell $30-million worth of donated stock in Cardinal Health Inc. as quickly as he should have. By the time it was sold, in 2006, it had lost $3.8-million in value, according to the Dispatch, which obtained the Deloitte audit through a public-records request.



I am sure when Graham reads this story, and since it is in the Chronicles of Higher Education he surely will, he'll be thinking, "damn nosy reporters."



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