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Audit Harsh on Waters College Internal Report Finds Evidence of Mismanagement Under Former President, Who's Still Being Paid.

Posted on: Wednesday, 7 September 2005, 18:00 CDT

An "environment of no accountability" exists at Edward Waters College from the top down that has allowed unexplained payments to former President Jimmy Jenkins and his wife, produced graduation rates of less than 20 percent and created a climate of fear and distrust for faculty, according to an internal audit of the college's operations.

The private report, obtained by the Times-Union, places much of the blame on the Board of Trustees and Jenkins, who, despite his resignation in February, still receives more than $15,000 a month in salary and benefits.

"Edward Waters College does not have effective governance. In other words, the EWC's Board of Trustees and the senior administrators at the College have failed in their stewardship and fiduciary responsibilities," said the report prepared by auditor Marty Khan, acting director of internal auditing at the University of North Florida who volunteered his services to Edward Waters.

Board of Trustees Chairman McKinley Young issued a statement that called the audit a "critical self-analysis," but would not discuss any of its specific findings. "We welcome all insights and evaluation that will permit us to build a stronger Edward Waters College," he said.

Young and college President Oswald Bronson declined a request for an interview through college attorney Mike Freed.

The sweeping 63-page audit unveiled a series of critical findings such as no-bid contracts awarded to college trustees and politically connected consultants and the hiring of faculty and staff with criminal backgrounds and questionable academic credentials for some faculty members.

Edward Waters arranged for the audit following a plagiarism scandal that briefly cost the school its accreditation. The Southern Association of Colleges and Schools said Edward Waters leaders lacked integrity and didn't exercise oversight and control of the application for reaccreditation, a process that occurs every 10 years.

The private, historically black college won back its accreditation for at least one year after filing a federal lawsuit, but administrators must clean up the problems or risk further punishment.

The audit was a major step in that process. Khan compiled the report for Edward Waters and said there were no restrictions on what he could review.

"Internal controls over most areas are non-existent, inadequate or ineffective, which have created an environment of no accountability throughout the College's operations," Khan concluded.

He traced the problems to Jenkins' administration.

"My review of various aspects of EWC's operations has uncovered concrete evidence to show that EWC was mismanaged while it was led by its former president, Dr. Jimmy Jenkins," he wrote.

The finding does not describe that evidence. Khan declined to elaborate in an interview.

Yet Jenkins continues to receive his monthly salary of $12,068.75 and a housing allowance of $3,000 since his resignation in February. The audit does not explain why Jenkins receives the payments.

Khan suggested that the board "immediately review and terminate all its relationships with Dr. Jimmy Jenkins. Any financial compensation must be carefully and fully reviewed to determine whether it is justified."

The findings contradict Young's comments during a June interview with the Times-Union editorial board. Back then he said Jenkins was not employed by and did not have any contractual relationship with the college.

The audit also questioned a payment to Jenkins' wife, Faleese. She received a reimbursement check for $1,145 without providing the proper documentation. Her husband approved the payment, according to the audit.

Messages left at Jenkins' residence Friday and Saturday were not returned.

The audit called for strengthened oversight by the board of trustees. The audit also suggested cutting the 25-member board in half and providing them with education and training.

Individual board members have not received copies of the audit but are scheduled to discuss it at a meeting next month.

The audit praised Bronson, who became Edward Waters' president after spending nearly 30 years as president of Bethune-Cookman College in Daytona Beach, but said it's time to start looking for his replacement. Bronson, 78, has promised to serve two years as president.

Although many people on campus view him as a stabilizing presence during a chaotic time, one anonymous faculty member quoted in the audit said he has an image as "weak and naive."

The auditors' review of samples of contracts found that none of the work had been bid, including lobbying contracts and three contracts with firms connected to trustees.

The audit found $251,000 paid to Virginia lobbying firm of Alcalde & Fay, which employs the daughter of U.S. Rep. Corrine Brown, D-Fla. The audit indicated the college could not produce a signed contract and did not have documentation to show what work had been done. A spokeswoman for the lobbying firm contacted by the Times-Union in May denied any unethical contact with the six-term Jacksonville congresswoman, who has channeled millions in federal dollars to the college.

Former state Sen. Betty Holzendorf received $150,000 for consulting and fund-raising under a no-bid contract, according to the audit. The college did not produce documentation to show what work she performed.

The audit also found "four or five" employees with criminal backgrounds and "a number of individuals" with academic degrees from institutions that may not be accredited. Background checks for some employees have not been done, and some employees do not have an official copy of their academic records in their personnel files. None of the people were named in the audit.

The audit calculated an average graduation rate from 1995 to 2004 of 11.6 percent. During that time, 9,049 students enrolled and 1,050 graduated.

The audit also revealed Edward Waters was eligible for $357,000 in federal work study grants in the 2004-05 academic year but used only $176,000. The money went unused because administrators did not encourage students to participate. "As a result, EWC lost $181,000 in labor benefits from student employment, and students lost an opportunity to work and gain leadership experience," according to the audit.

The audit also included a faculty survey. The survey results and calls and e-mails from faculty members led Khan to conclude the school suffered from "a climate of malaise."

More than 90 percent of the 22 faculty canvassed said there were communication problems with the academic affairs department, the unit that oversees faculty. A majority did not feel encouraged to talk with Academic Affairs administrators about work-related issues.

Some blamed administrators for the school's problems.

"There is a cult of secrecy among the upper management at EWC that is irrational. It is nearly impossible to get a straight answer from them on any issue that matters," said one faculty member, who was not named, on the survey.

Yet, despite the complaints, almost half the faculty said the college "is a great place to work."

One faculty member, quoted anonymously, said the scrutiny brought some hope.

"Many of us know that without this audit and without your presence we would be back to business as usual, and this would force us back into a place of dishonor and shame."beth.kormanik@jacksonville.com, (904) 359-4619KEY FINDINGS-- The Board of Trustees and senior administrators "have failed in their stewardship and fiduciary responsibilities."-- Former President Jimmy Jenkins continues to receive his monthly salary of $12,068.75 and a monthly housing allowance of $3,000.-- No-bid contracts are common, and the college often does not follow up to make sure the goods or services were provided.-- Edward Waters was eligible for $357,000 in federal work study grants in the 2004-05 academic year but used only $176,000 because administrators did not encourage students to take advantage of the program.-- From 1995 to 2004, 9,049 students enrolled and only 1,050 graduated, an average graduation rate of 11.6 percent.Source: Operational and Compliance Audit of Edward Waters College

Source: Florida Times Union

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