Connect with us

Mississippi Today

JSU Development Foundation under scrutiny for alleged ‘unintended’ use of restricted dollars as presidential selection looms

Published

on

Concerns about poor recordkeeping, inadequate accountability and the possible “unintended” use of restricted dollars led a member of the Jackson State University Development Foundation board to quietly resign earlier this year.

In his June 23 resignation letter, Brian Johnson, a 2009 Jackson State graduate who had served on the board for six years, wrote that he was stepping down after the board failed to pass his motion for a forensic audit.

Johnson was alarmed by internal presentations that he wrote showed the cash-strapped foundation using donor-restricted dollars to pay for its general obligations. But the foundation’s recent annual audits, Johnson wrote, had no discussion of the potentially improper spending.

“As a business professional in the financial services industry, I can’t seem to comprehend how the JSUDF Board of Directors received two financial reports over the last two years from two different JSU Division of Institutional Advancement comptrollers indicating the unintended use of restricted/designated funds, but the Foundation’s CPA audited financial statements have no note or mention of this information,” he wrote.

When contacted by Mississippi Today, Johnson would not comment for this story.

Johnson’s resignation letter is part of a cache of internal foundation documents that was obtained by Mississippi Today as Jackson State is poised to receive a new president. Last week, the Institutions of Higher Learning governing board for Mississippi’s public universities held a special-called meeting to discuss the imminent hire for just 16 minutes.

Taken together, the documents raise questions at the core of the foundation’s fiscal health. One document showed the foundation lacking about $7.6 million in “cash on hand to cover fund balances” and its operating budget, on average, bleeding at least $100,000 every year since 2012. Another, an internal audit that Jackson State completed in late September, determined the foundation was commingling in one account its operating and donor-restricted dollars for alumni, athletics and annual scholarships.

Brian Mittendorf, an Ohio State University accounting professor who reviewed the documents for Mississippi Today, said it wasn’t clear how the foundation has enough liquidity, or cash-on-hand, to meet its obligations, including scholarships and financial support for university athletics.

“There’s this consistent nagging issue which is that a substantial amount of their assets are restricted, though the exact amount is somewhat unclear,” he said.

But Mittendorf said he was only able to reach that conclusion — one of the concerns that led Johnson to resign — after reading “between the lines” of the foundation’s audit. He didn’t understand why the foundation’s audits are not drawing attention to the existential financial situation it appears to be facing.

“Somewhat surprisingly, they aren’t shouting about that from the rooftops in the financial statement,” Mittendorf said.

In an email, an IHL spokesperson wrote that “IHL does not govern the JSU Development Foundation, so questions about the foundation’s assets should be addressed to the foundation.” But IHL’s bylaws do permit the board to exercise a certain amount of oversight over the university-affiliated foundations, such as giving prior approval if a president wishes to sever ties with the foundation.

The foundation chair, Guyna “Gee” Johnson, a managing director of global fund ratings at S&P who has led the foundation since 2021, asked Mississippi Today to email her questions for this article but did not respond to repeated requests for comment by press time.

In a sit-down interview with JSUTV earlier this year, Gee said that “one of the things the board would like to do is to bring more attention to what we’re doing so people feel safe and they trust that we are being good stewards over their money so that they can continue to help our students grow.”

$7 million cash on-hand deficit?

The development foundation was founded in the 1960s to financially support Jackson State. It has been in hot water in recent years after an independent audit that IHL called for found tens of thousands of dollars in questionable credit card spending in 2014, leading the foundation to cancel its credit cards.

Johnson got on the board in 2017, a year after that independent audit was made public by the Clarion Ledger. But internally, the foundation was facing even more challenges than Johnson knew, he wrote in his resignation letter.

“It was then I learned the Foundation was behind on 990’s, facing legal issues due to past Foundation ventures/contracts and not having completed audited financial statements for the two prior years,” he wrote.

The board proceeded to work together to resolve the issues, Johnson wrote. In 2019, a resolution was introduced to acknowledge that the board had borrowed funds from temporarily restricted accounts, as well as its permanently restricted endowment, due to “having insufficient unrestricted operating dollars.”

The foundation, according to the resolution, intended to repay the “interfund debt,” which at the time totaled about $1.8 million. It’s unclear from the document Mississippi Today received if the foundation adopted the resolution.

And last year, the foundation finally executed the sale of One University Place, a mixed-use apartment complex across the street from Jackson State’s campus that was draining the foundation’s bank accounts, to the university for $6.9 million.

But it appears the sale wasn’t enough to get the foundation in the clear, according to the foundation’s 2021 audit and two internal PowerPoints presented earlier this year by Keilani Vanish and Sophia Williams, comptrollers for the foundation.

As of May 18, the date of the most recent presentation, the foundation’s restricted fund balances, which cover its designated accounts, totaled $11.6 million. But the foundation had just under $4 million in its operating accounts, leaving a roughly $7 million deficit in “cash on hand to cover fund balances.” A presentation in February showed a similar situation.

That’s when Johnson, who served on the finance committee, began to wonder why that information wasn’t included in the foundation’s audited financial statements, according to his letter.

The foundation should be communicating the difference between those documents to board members, Mittendorf said.

“The concerning part is if someone on a board is unaware of why those things deviate,” he said.

Mittendorf reviewed the internal presentations and the foundation’s 2021 audit, the most recent publicly available. Both documents, he said, were confusing for him to follow.

David Ewing, the accountant who oversaw the audit, said he couldn’t answer any questions about the foundation, because the university is “pretty strict” about the information it gives out and he didn’t want to lose a client.

Though Mittendorf didn’t go so far as to question whether the 2021 audit was accurate, he noted that it appeared to contradict itself. On page 3, the audit shows the foundation has about $33 million net assets “with donor restrictions, but on page 22, in a section titled “liquidity and availability,” the audit claims that the foundation has “no donor restricted net assets.”

That same section, Mittendorf pointed out, claims the foundation has access to about $35 million in “financial assets available to meet cash needs for general expenditures within one year.” But that doesn’t add up, he said, considering the audit also states the foundation has just under $42 million in total financial assets at year-end, with over $37 million of that in the restricted endowment.

Meanwhile, the foundation is holding a substantial amount of debt. In 2021, the foundation extended its credit line with Merrill Lynch from $2 million to $6.9 million, “secured with certain investments accounts held by Merrill Lynch in the name of the Foundation.” The balance was $5.9 million, according to the May comptroller presentation.

At BankPlus, the foundation has a $3 million credit line but the most recent balance is unclear.

A one-page internal audit

Johnson wasn’t the only one with questions. On June 1, an ex-officio board member emailed Gee and the board because there were rumors in the community about the presentation that allegedly showed the foundation spending restricted dollars.

When Gee replied-all on June 9, she wrote that if the community had access to that presentation, which was prepared for “various internal management or other analytical purposes” and was not an official financial position, then an “extremely serious breach of confidentiality” had occurred.

“The matters you mention in your email have been things that JSUDF boards, University Presidents and University CFOs have been aware of for at least 15+ years, and we have been addressing directly through corrective measures,” Gee wrote. “As we have University turnover, the board chair’s transition policy is to immediately request a meeting to properly provide an official financial update, provide and (sic) overview of the Foundation and align our goals with the new administration’s strategic plan.”

A week later, a similar concern about the “potential misuse of donated funds” led Jackson State to start conducting an internal audit of the foundation that was finalized in September, according to a copy.

It was only one page.

Dr. Alfred Rankins, Jr., Alcorn State University President

Though the university’s internal auditor, Christopher Thomas, wrote in an email that IHL Commissioner Alfred Rankins requested the internal audit, an IHL spokesperson wrote in an email that Elayne Hayes-Anthony called for it.

Hayes-Anthony has been the university’s temporary acting president since Thomas Hudson resigned earlier this year for reasons that remain unclear. She holds one of seven ex-officio spots on the board, the one reserved for the university president.

“Commissioner Rankins did not call for an internal audit of the foundation,” Kim Gallaspy, IHL’s interim communications director, wrote in an email to Mississippi Today. “Dr. Elayne Hayes-Anthony initiated the process by expressing concerns to the Board of Trustees about the use of JSU Development Foundation funds. Dr. Anthony was advised to exercise her authority to have her concerns investigated by utilizing the university’s internal audit staff to review any Foundation books, records or accounts needed to monitor and verify proper use of donated funds.”

Thomas wrote that he did not find any “current evidence” of misused donor funds, but that the foundation’s bank accounts only had $4.4 million as of Aug. 31 while the “designated accounts” totaled $11.8 million, a finding that correlates with the internal presentations.

“While the Development Foundation liquid funds are not adequate to cover the Designed Accounts, this does not represent the financial position of the Development Foundation,” he wrote. “The Foundation holds a multitude of assets that can be utilized to meet its financial obligation to the University.”

Though Thomas did not specify what those assets are, he did identify six areas where the foundation could improve its internal controls. Specifically, he recommended the foundation should monitor its budgets “based on actual revenue throughout the fiscal year to reduce overspending.”

He also recommended the foundation establish “separate bank accounts” for the operating budget — called “the Excellence Fund” — and the donor gifts, which were commingled.

Mittendorf said foundations should keep records in a way that prevents concerns about funds getting mixed up.

“When you have donor designed and donor restricted gifts, you want impeccable record keeping that segregates the funds,” he said.

It’s unclear if the foundation has done that.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Mississippi Today

House passes pharmacy benefit manager transparency bill

Published

on

mississippitoday.org – Gwen Dilworth – 2025-01-23 18:35:00

A bill that aims to increase pharmacy benefit managers’ transparency by requiring them to report data to the agency that oversees pharmacy practice in Mississippi passed in the House of Representatives Thursday. 

But the Board of Pharmacy and some pharmacists say the legislation doesn’t do enough to help pharmacies and patients. 

House Speaker Jason White, who authored the bill, called it “a good first step.” It will give the Board of Pharmacy – and the public – insight into the companies’ business practices to ensure they are compliant with the law, he told Mississippi Today.

The bill, which passed 88-8, does the following:

  • Prohibits pharmacy benefit managers from charging insurers more for drugs than pharmacists are paid, a practice that can be used by the companies to inflate their profits. 
  • Requires pharmacy benefit managers to submit reports detailing the rebates, or cost savings, they receive from pharmaceutical companies and to disclose their affiliations with pharmacies to the Board of Pharmacy. 
  • Requires drug manufacturers and health insurers to submit reports detailing wholesale drug costs and information about drug costs and spending, respectively, to the Board of Pharmacy.
  • Tasks the Board of Pharmacy with developing a website summarizing the reports.
  • Allows the Board of Pharmacy to issue subpoenas during audits of pharmacy benefit managers and forces the company to pay for the audit if it is found to be noncompliant with state statute. 

It will next go to the Senate for consideration. 

But some advocates say the bill does not do enough to protect independent pharmacists, or retail pharmacies not owned by a publicly traded company or affiliated with a large chain, and the customers they serve. 

Many Mississippi independent pharmacists fear they may be forced to close as a result of low payments from pharmacy benefit managers, which small businesses do not have the leverage to negotiate. 

“Collecting the data is one thing. Doing something with it is another,” said Robert Dozier, the executive director of the Mississippi Independent Pharmacy Association. “When you look at the legislation, it does nothing to help the pharmacists, and it’s not tightening the loopholes that the Board of Pharmacy needs. It’s not going to do a whole lot.” 

In a statement read by Rep. Stacey Hobgood-Wilkes, a Republican from Picayune and chair of the Drug Policy committee, on the House Floor, the Mississippi Board of Pharmacy requested that the legislation be amended to heighten the regulatory enforcement authority it holds over pharmacy benefit managers, though it did not name specific tools that would be helpful.

The Board of Pharmacy did not respond to a request for comment by the time the story published. 

Dozier said he supports a bill brought by Hobgood-Wilkes which institutes a standardized pricing model for prescription drugs based on national average drug costs. 

Several states, including Kentucky, have passed laws that use the pricing model to regulate drug costs. 

But White said the House is not yet ready to approve a specific pricing model, and that he would not vote for Hobgood-Wilkes’ bill if it made it to the House floor.  

In the past, legislation to regulate pharmacy benefit managers in Mississippi has struggled to gain support. A 2023 bill proposed by Hobgood-Wilkes using the same standardized pricing model died in the House Insurance Committee, chaired by Rep. Jerry Turner, R-Baldwyn. 

A 2024 bill that would have increased pricing transparency and prohibited pharmacy benefit managers from retaliating against pharmacies or charging insurance plans or patients more than the amount they paid pharmacies for a prescription died in the House.

White said he would support appropriations for additional staff to allow the Board of Pharmacy to carry out new responsibilities included in the bill. 

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Mississippi Today

Mississippi doesn’t have to provide protective gear to working inmates. Bill aims to change that

Published

on

mississippitoday.org – Michael Goldberg – 2025-01-23 11:20:00

Mississippi lawmakers will consider requiring state prisons to provide inmates on work assignments with protective gear.

The legislation follows an ongoing federal lawsuit alleging inmates at a Mississippi prison were exposed to dangerous chemicals, with some later contracting late-stage cancer.

Susan Balfour, 63, was incarcerated for 33 years at Central Mississippi Correctional Facility until her release in December 2021. Balfour said she was among a group of prisoners asked to clean the facility without protective equipment.

She was later diagnosed with terminal breast cancer, a condition that prison health care providers failed to identify years ago because they could save money by not performing necessary medical screenings and treatment, according to the lawsuit Balfour filed in the U.S. Southern District of Mississippi.

Rep. Justis Gibbs, D-Jackson, says his proposal, inspired in part by Balfour’s story, addresses the first of a two-pronged issue that leaves Mississippi’s prison inmates vulnerable to dangerous conditions.

“On the front end, it is about protecting our inmates from exposure to raw chemicals and mixing raw chemicals without any protective equipment,” Gibbs said. “The other prong is of course the lack of medical care in terms of the corrections system and its inmates.”

Gibbs’ bill, which has been referred to the House Corrections Committee, would ensure that if an inmate uses raw cleaning chemicals, prison officials must provide them with protective equipment such as face masks, gloves, protective helmets and eye protection. Balfour’s attorneys and Gibbs say over 10 other Mississippi inmates have come down with cancer or become seriously ill after they were exposed to chemicals while on work assignments.

“I’m grateful that state lawmakers have acknowledged this injustice,” Balfour said in a written statement. “Forcing women to work with raw chemicals and cleaning supplies without protective equipment is hazardous and deeply problematic. If successful, this effort will help prevent others from enduring what many have suffered at the hands of the Mississippi Department of Corrections.”

Pauline Rogers, co-founder of the RECH Foundation, an organization that assists women returning from prison, said Gibbs’ bill provides a long overdue safeguard for inmates, who are often encouraged to work while incarcerated in areas such as food service, maintenance and groundkeeping.

“The issue has arisen in Mississippi’s prisons, in part, due to longstanding neglect, underfunding, and systemic dehumanization within the correctional system. Incarcerated individuals are often viewed as expendable rather than as individuals with rights,” Rogers said. “This disregard leads to unsafe working environments, where profit and efficiency are prioritized over basic safety measures.”

The Mississippi Department of Corrections did not respond to a request for comment.

Balfour says she used products that contained chemicals such as glyphosate, which has been linked to an increased risk of cancer in some studies. Balfour’s attorneys have said they have not proven with certainty that exposure to the cleaning chemicals caused Balfour’s cancer. But the lawsuit focuses on what they say were substantial delays and denial of medical treatment that could have detected her cancer earlier.

Incentives in contracts with the state Department of Corrections encouraged cost-cutting by reducing outpatient referrals to health care providers and interfering with physicians’ independent clinical judgments, the lawsuit alleges.

Balfour was initially convicted of murdering a police officer and sentenced to death, but that conviction was later reversed in 1992 after the Mississippi Supreme Court found her constitutional rights had been violated during her trial. She later reached a plea agreement on a lesser charge, her attorney said.

Balfour believes her cancer may have been detectable over a decade ago. After she was released in 2021, an outpatient doctor performed a mammogram that showed she had stage four breast cancer, her lawsuit says.

Balfour sued three companies contracted to provide health care to prisoners at the Central Mississippi Correctional Facility. The companies delayed or failed to schedule follow-up cancer screenings for Balfour even though they had been recommended by prison physicians, the lawsuit says.

Gibbs hopes to introduce legislation in the future that provides stronger guarantees that inmates receive timely medical care.

“While we do have a Department of Corrections, it’s also lawmakers’ duty and responsibility to ensure that there are human rights for our state’s inmates,” Gibbs said.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Mississippi Today

Mississippi-born dancer comes home with ballet company to share her passion

Published

on

mississippitoday.org – Sherry Lucas – 2025-01-23 10:49:00

Mary Kate Shearer’s vision for her future leaped nearly as high as the dancers did that summer afternoon she saw her first ballet onstage. She was only 3 years old, knocking on 4, at the time, and maybe mature enough for a USA International Ballet Competition matinee in her mom’s view.

“I bought tickets way at the back, in case we needed to sneak out,” her mother Janet Shearer recalled. No need, as it turned out. “She was rapt … just so attentive through the whole thing.

“When we walked out of Thalia Mara Hall that afternoon, she looked up and said, ‘Mommy, I want to do that.’”

“Since then, I have not stopped,” Mary Kate Shearer said, “except when injury forced me to.” The young dancer is now a company member of Chattanooga Ballet (CHA Ballet), a small regional company bound for Jackson as part of its Art/Motion tour Friday and Saturday, Jan. 24-25. The homecoming highlights Shearer in performance, with the opportunity, too, to share her newfound love of teaching.

The weekend’s two performances in Jackson showcase works by legends in contemporary ballet — a rare treat for area dance fans — and newer works as well. The flirty, energetic “Tarantella” by New York City Ballet co-founder George Balanchine and the deeply romantic “Sea Shadow” by Joffrey Ballet co-founder Gerald Arpino are key showpieces on a program that also features the new “Intersections of Life” by Dance Theatre of Harlem member Ingrid Silva, and “Copacetic,” a fun and jazzy work choreographed by Chattanooga Ballet Artistic Director Brian McSween. This is CHA Ballet’s 50th anniversary season. Shows will also include contemporary ballet performances by Belhaven University dance students (“In One Accord,” choreographed by Belhaven dance alum Rachel Bitgood) and by Mississippi Metropolitan Ballet (“Timelapse” by Andrew Brader).

“Sea Shadow” CHA Ballet dancers Alessandra Ferarri-Wong and Eli Diersing, Credit: Wizardly Studio

Performances will be held at 7:30 p.m. Friday, Jan. 24, and at 2 p.m. Saturday, Jan. 25, at Belhaven University Bitsy Irby Visual Arts and Dance Center’s Studio Theatre.

CHA Ballet’s tour includes master classes for local dance students Saturday morning, with intermediate and advanced sessions for ages 12-15 at 9 a.m. and for advanced students ages 16 and older at 10:30 a.m. Find tickets to CHA Ballet performances and master classes and more information at https://givebutter.com/Belhaven. Advance purchase is recommended; parking is available in the lot behind the building.

The tour’s Jackson leg is sponsored by Janet Shearer Fine Art. “I wanted Mary Kate to come home and dance so that family and friends can see her locally, but more importantly, what Chattanooga Ballet does, serving communities with world-class dance,” Janet Shearer said.

The daughter of Janet and Dale Shearer grew up in Ridgeland, developing the passion she pegged as a pre-schooler through lessons with the Madison-based Mississippi Metropolitan Ballet and summer camp training. Shearer, 26, graduated from Indiana State University and its Jacobs School of Music’s dance department in May 2021 and joined CHA Ballet just months later as one of its seven professional dancers. 

Credit: Wizardly Studio

“She’s a very determined and dynamic dancer, and highly intelligent,” CHA Ballet CEO/Artistic Director McSween said of Shearer, also praising her range across contemporary, modern and classical works and even character roles. “She’s a great technician. She’s an even better artist.”

“I love to dance and I think it’s incredible that I get to do that as my job,” Shearer said. 

When company director McSween floated the possibility of a Jackson tour, she thought it was a fantastic idea. 

“That would be so much fun, for a lot of reasons,” she said. “It’ll be really cool because I haven’t had the opportunity to teach in Jackson much at all. … Since I’ve been at Chattanooga Ballet, teaching is a part of my job that I’ve fallen in love with in a way that I didn’t really expect. So, I’m excited to share with my hometown this newfound love of sharing my knowledge about my art form, not just performing.”

In classes, she continues ballet’s strong oral tradition of passing down instruction from one generation to the next. In Chattanooga, she embraces teaching 8-, 9- and 10-year-olds. 

“Something about that age group — it’s their first year where they come to ballet twice a week, and they’re not self-conscious yet, so they’re still just so excited and wanting to try new things. It’s just been really cool to share my knowledge with the next generation of future dancers and dance lovers,” Shearer said.

She recalls her own childhood ballet classes at MMB, and some of the imagery MMB Artistic Associate Crystal Skelton used to describe steps. 

Mary Kate Shearer Credit: Courtesy of Mary Kate Shearer

“It’s still stuff I tell my students now, like talking about our hip bones as the headlights of our car, and making sure they’re staying facing forward all the time at the barre, and things like that,” Shearer said. “Young, young dancers can say, ‘I don’t know what my hip bones are, but I know what the headlights of a car look like.’”

MMB Artistic Director Jennifer Beasley recalled Shearer’s dedication, strong work ethic and her sponge-like eagerness to learn. “I always knew she could have a career in professional ballet if she wanted it. … I’m really excited to see her dance — I haven’t in a little while, and I’m most excited because our students get to meet her and take class and see that dancing professionally is attainable if that is something they want to pursue. Seeing her, being from here and from the school, is going to be great for them.”

Belhaven University Dance Department Chair and Dean of the School of Fine Arts Krista Bower welcomed the opportunity for her students, too, in classes, demonstrations and Q&A with McSween and Shearer. “That’s a great opportunity for the Belhaven dance students to hear about pathways to a professional career, and it’s wonderful for them to get to see a professional dance performance right here in Jackson.”

For Shearer, the tour’s hometown spotlight weaves artistry and memory in a reach back to her roots and a reach out to young dancers who may want to follow in her footsteps. Her self-described strengths and personality that come through in her dance easily trace back to her earliest intro to the art form. “I love to jump , so that’s one thing,” she said with a chuckle. “So, I’m very dynamic in that way.

“I really try and show the audience that I’m up there having fun, and I think that comes through onstage — that I love what I’m doing and I want other people to feel that love, too.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Continue Reading

Trending