Category Archives: Finance

The money that makes academe tick.

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After $13-Million Fraud, Ball State U. Commissions External Review

Ball State University will hire a former federal prosecutor to investigate how it was defrauded of $13.1-million, The Star Press reports. Deborah Daniels, an Indianapolis lawyer and former U.S. assistant attorney general, will also recommend ways for the university to better protect itself from fraud.

The university fell victim to the vast fraud because of two investments made by a former director of cash and investments, Gale Prizevoits, whom Ball State fired in 2011. Two men have been convicte…

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U. of Southern Maine President Will Leave Post for Job With System

Theodora J. Kalikow will step down this month as president of the University of Southern Maine to take a job with the University of Maine system as an acting vice chancellor who will work on a one-year community-engagement effort, the Portland Press Herald reported.

Ms. Kalikow’s new job will run through the end of next June, when her current contract expires. She has served as the Southern Maine campus’s interim president during a period of financial turmoil. In April she reversed course on a c…

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U. of Dayton Will Divest From Fossil Fuels

The University of Dayton announced on Monday that it would begin divesting coal and fossil-fuel stocks from its $670-million investment pool, saying that it was the first Roman Catholic institution in the United States to take such action.

The new policy was adopted unanimously by the university’s Board of Trustees. Dayton will first eliminate fossil-fuel holdings from its domestic equity accounts, and will later develop plans to do so for its international holdings. The university said truste…

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After Short Discussion, Penn Board Opts Not to Divest From Tobacco

The University of Pennsylvania will not divest its $7.7-billion endowment of holdings in tobacco companies, after its Board of Trustees on Friday discussed a proposal to do so and opted not to take a vote, The Philadelphia Inquirer reports. During the meeting, the board’s chairman, David L. Cohen, said tobacco is not a “moral evil.”

A group of professors had called on the university to divest, writing an open letter to the board in anticipation of Friday’s meeting. But after a brief discussion, …

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Thomas Jefferson U. Receives $110-Million Gift

The Sidney Kimmel Foundation has donated $110-million to Thomas Jefferson University, in Philadelphia, the university announced on Tuesday, and the institution has renamed its medical school the Sidney Kimmel Medical College at Thomas Jefferson University.

The Kimmel Foundation was started in 1993 by the clothing-company magnate and philanthropist Sidney Kimmel, who was born in Philadelphia. Other major gifts he has made to higher education include a $150-million pledge to the Johns Hopkins Univ…

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New York Man’s Conviction Is Linked to $5-Million Fraud at Ball State U.

The March conviction of a New York man on one count of wire fraud has been linked to a recently revealed $5-million fraud at Ball State University, The Star Press reports. George Montolio, 46, was arrested in 2011, and it was the discovery of his crime that alerted Ball State to $8.1-million more that had also been stolen.

The university’s former director of cash and investments, Gale Prizevoits, was dismissed three years ago, soon after university officials discovered the fraudulent investments…

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U. of Southern Maine May Cut 3 Programs, President Says

The University of Southern Maine’s president put three academic programs back on the chopping block on Friday, after a testy several months in which the leader, Theodora J. Kalikow, announced a plan to fire a dozen tenured and tenure-track professors, dismiss 35 staff members, and eliminate four programs—and then invited faculty members to come up with their own proposal to cover a $14-million budget shortfall.

“I intend to continue the program-elimination process begun for American and New Engl…

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Colleges’ Embrace of Online Learning Is a ‘Credit Positive’

Report: “Moody’s Weekly Credit Outlook: U.S. Public Finance Edition” (available to subscribers to Moody’s on its website)

Organization: Moody’s Investors Service

Summary: A U.S. Department of Education report released last week shows that a quarter of all college students took some online courses toward their degrees in the fall of 2012. That level of market penetration, particularly in the for-profit sector, demonstrates that American higher education is adapting to advances in technology and t…

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Chief Fund Raiser at U. of Colorado Plans to Leave After Eavesdropping Probe

Kelly Cronin, the University of Colorado system’s top fund raiser, will leave following an investigation into whether she told an assistant to eavesdrop on a closed meeting of the university’s private fund-raising foundation, The Daily Camera reported on Tuesday. The outside investigation, which cost roughly $40,000, found that the assistant did listen in on a closed-session conference call of the CU Foundation’s Board of Directors, but that there was no evidence that Ms. Cronin had told him to …

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Lawsuit Asks Court to Keep Cooper Union Tuition Free

A group of professors, alumni, and students of Cooper Union is suing to block the prestigious New York City college’s plan to start charging undergraduate tuition in the fall, the New York Daily News reported.

In a lawsuit filed in a state court in Manhattan on Tuesday, an advocacy group called the Committee to Save Cooper Union accuses the college’s leaders of bad financial decisions, including spending too much on new buildings and overborrowing. The lawsuit asks the court to block any tuition…