Increased operating expenses only at USM? - USM Forum -- Message Board

Date: Jun 19, 2004

Increased operating expenses only at USM?

Date: Jun 19, 2004

Remember that no money was actually saved. In theory, 1.4, then 1.8, and now over 2.1 million was supposedly "reallocated" from administration to the classroom. However, if you check the budget books carefully, you will discover that this was accomplished primarily by moving administrators' salaries to the instructional budget. For example, the "COO" of the coast is paid mostly from the instructional budget. Thus, his salary has been "reallocated" to the classroom. Don't worry, the new accounting system is consistent with GAAP (Gosh Awful Accounting Practices). Please don't try this at home, the IRS may object!

The university did have a cost increase. For example, the state is requiring USM to increase the university reserve for tort litigation by close to one million dollars. Seems that the state is concerned the USM's risk has increased.

Date: Jun 19, 2004

Dang. Where is our risk manager when we need him?

Date: Jun 19, 2004

quote:
Originally posted by: Book Keeper
"Remember that no money was actually saved. In theory, 1.4, then 1.8, and now over 2.1 million was supposedly "reallocated" from administration to the classroom. However, if you check the budget books carefully, you will discover that this was accomplished primarily by moving administrators' salaries to the instructional budget. For example, the "COO" of the coast is paid mostly from the instructional budget. Thus, his salary has been "reallocated" to the classroom. Don't worry, the new accounting system is consistent with GAAP (Gosh Awful Accounting Practices). Please don't try this at home, the IRS may object! The university did have a cost increase. For example, the state is requiring USM to increase the university reserve for tort litigation by close to one million dollars. Seems that the state is concerned the USM's risk has increased. "

I suspected that Thames and crew had done something like this. It's good to have confirmation, though, that the reorg saved no money.

Robert Campbell