I was contacted by Ralph E. Becker about his concerns with corruption at SIUC and questions about my blog. We went back and forth at the end of last week. I think that the gentlemen pursing this are the real deal. Like me they are from Carbondale and went out into the world and did well. They don't want anything from doing this, just to help SIU. I am fairly convinced that their cause is just and something really wrong might be found at SIU.
I think that any observer of SIUC knows they are hiding money. Maybe for the football stadium and administration slush fund and maybe for something else? We do know factually that the accounting is very complicated at SIU and difficult to understand. In business, when an public organization starts to confuse their accounting it is almost always for a reason of hiding facts. If you told me that there were under the table payments to administrators or huge embezzlements of funds through travel budgets, or vendor kick backs, that would seem to fit everything else that is going on. It is also follows along our Illinois traditions of corruption. Of course, I don't know if anything like this is going on, just that it seems very possible.
Here is a copy of the letter sent to SIU asking for information. I transfered the letter from MS Word to html with Microsoft's converter and it didn't keep the correct formatting, but the content is there.
October 25, 2006
VIA CERTIFIED MAIL
Rickey N. McCurry, J.D.
Chief Executive Officer
Southern Illinois University Foundation
Colyer Hall, 101B – Mail Code 6805
1235 Douglas Drive
Carbondale, Illinois 62901-6805
Re: Request for Detailed Information in Advance of Compliance Audit Visit --
Southern Illinois University Foundation’s Stewardship of the Ralph E.
Becker Scholarship Fund (both current and endowed portions – from
December 2, 1985 to September 30, 2006) and the Larry G. Brown
Media Management Laboratory Endowed Fund (both current and
endowed portions – from June 21, 1996 to September 30, 2006)
Dear Mr. McCurry:
Further to our earlier correspondence (via US mail and via E-mail) and telephone conversations with you and your staff, the purpose of this letter is to set forth, in detail, the documentation and information we are requesting that you and your staff supply in advance of our visit to your offices all in furtherance of our compliance audits of SIU Foundation’s stewardship on behalf of the Department of Radio - Television in the College of Mass Communications and Media Arts of Southern Illinois University of the aforementioned philanthropic funds from inception dates – see above – to September 30, 2006. [As an attachment to this request, enclosed for your files is a copy of a written confirmation from Five Mile Group’s clients, Ralph E. Becker and Larry G. Brown, that they did indeed engage Five Mile Group, PC, CPA’s, to conduct compliance audits of SIU Foundation’s handling of their philanthropic funds entrusted to the SIU Foundation for the benefit of SIU.]
(1) For the periods dating from nine months before the inception dates – see above – of the aforementioned endowments to September 30, 2006, any and all files, contents of files, handwritten notes and/or notations, typewritten notes and/or notations, computer-written notes and/or notations (even if not yet printed out in hard copy from said computers), electronic communications including E-mails (even if not previously printed out in hard copy from said computers), documents in draft form, documents in various stages of revision, documents in final form, documents executed by any and/or all of the parties involved, and any and all research and/or information relating to any of the following individuals and/or funds: Ralph E. Becker, Jane Becker, the Ralph E. Becker Scholarship Fund (including the Ed Brown Scholarship, the Buren Robbins Scholarship, the Richard Hildreth Scholarship, the Frank Stanton Scholarship, and the Ralph E. Becker Scholarship), Larry G. Brown, the Larry G. Brown Media Management Laboratory Endowed Fund and the Larry G. Brown Media Management Laboratory. Should the name of the individual(s), the fund(s) and/or the laboratory appear in the SIU Foundation (and/or SIU) files and/or computers in any other form or format that does not parallel the above-referenced names exactly, the request extends to the other form that the name(s) takes in the SIU Foundation (and/or SIU) files. Collectively, any items that are responsive to this request -- including whole file folders consisting of the file folder itself and all the contents thereof, video clips, tapes, DVD’s or films, audio tapes or CD’s -- shall be called “documents” hereinafter.
(2) This request includes, but is not limited to, the following specific types of documents relating to the above-referenced individuals, funds and/or laboratory listed in (1) above:
(A) Any and all documents reflecting internal (within SIU Foundation), quasi-internal (as between SIU Foundation and SIU), and/or external (or any combination thereof) communications to, from and/or about any, some or all of the above- referenced individuals, funds and/or laboratory listed in (1) above. This request includes brochures and/or any publications, newsletters, annual reports, or other printed matter making reference to such individuals, funds and/or laboratory.
(B) Any and all documents reflecting notes of meetings concerning any, some or all of the above- referenced individuals, funds and/or laboratory listed in (1) above. Such notes should include notes of internal meetings, quasi-internal meetings and meetings with persons other than those who represent the SIU Foundation or SIU, or any combination thereof.
(C) Any and all documents reflecting notes of telephone conversations with or concerning any, some or all of the above- referenced individuals, funds and/or laboratory listed in (1) above. Such notes should include notes of internal conversations, quasi-internal conversations and conversations with persons other than those who represent the SIU Foundation or SIU, or any combination thereof.
(D) Any and all documents housed in the SIU Foundation’s Research Department and, specifically any and all documents housed in file folders that fit the description, if interpreted by a reasonable person, of “research and documentation” about any, some or all of the above- referenced individuals, funds and/or laboratory listed in (1) above.
(E) Any and all documents housed in the SIU Foundation’s Accounting Department and, specifically any and all documents housed in file folders that fit the description, if interpreted by a reasonable person, of “accounting/distribution of funds” about any, some or all of the above- referenced individuals, funds and/or laboratory listed in (1) above.
(F) Any and all documents identifying the name(s) of the employees and/or independent contractors of SIU and the employees and/or independent contractors of the SIU Foundation who have had any role in any matter concerning the individuals, funds and/or laboratory referenced in (1) above, including all “Constituent Development Officers” or their equivalent -- and all persons senior to those officers at SIU and at the SIU Foundation -- from nine months before each inception date to the present. If any document has been produced under any other paragraph of this request, identification of the full name of the author of each and every document, the author’s position at SIU and/or SIU Foundation, their tenure, and a description of their involvement with any matter concerning any or all of the individuals, funds and/or laboratory referenced in (1) above.
(G) Any and all documents identifying the fiscal officer assigned to each endowment, their position at SIU and/or SIU Foundation, their tenure, a description of their performance as fiscal officer, and the information requested at (2)(F) above.
(H) Any and all documents regarding the role of the Dean of the College of Mass Communications and Media Arts, including all documents referencing his role and including all documents now or at any time in the custody and possession of the Office of the Dean of the College of Mass Communications and Media Arts. Such documents shall include, but not be limited to:
i. Annual reports of academic performance of the top students in the Department of Radio – Television;
ii. Detailed calculations (with assumptions fully explained) for each scholarship awarded from the Ralph E. Becker Scholarship Fund each year;
iii. Brochures, newsletters, flyers and promotional material regarding the Ralph E. Becker Scholarship Fund, the Communications Courtyard, the Obelisk of Honor, and the Larry G. Brown Media Management Laboratory;
iv. Detailed identification of and underlying support for each and every expenditure on behalf of the Larry G. Brown Media Management Laboratory (including name and address of vendor, date, description, dollar amount, and use); and
v. The budget for the July 1, 2006 to June 30, 2007 fiscal year for the Larry G. Brown Media Management Laboratory in the Department of Radio – Television.
(I) Any and all documents regarding the role of the head of the Department of Radio - Television, including all documents referencing his or her role. Such documents shall include the documents enumerated in (2)(H) above, including documents in the possession of the Department of Radio – Television and documents which were once in the custody and possession of the Department of Radio – Television but which are held in custody elsewhere by SIU and/or the SIU Foundation today or which are available by copy from another department or office at SIU and/or the SIU Foundation.
(3) Any and all internal and/or quasi-internal SIU Foundation / SIU accounting and contractual records relating to the Ralph E. Becker Scholarship Fund, the Larry G. Brown Media Management Laboratory Endowed Fund and the Larry G. Brown Media Management Laboratory for the full period under audit.
Information should include:
(A) Contracts with donors (including all amendments);
(B) The opening balance of each fund for each fiscal year;
(C) Additions and earnings credited each year to the principal amount held in trust in each fund;
(D) Deductions for fees imposed -- authorized as well as unauthorized -- by the SIU Foundation each year for each fund;
(E) Descriptive details and identification of all financial distributions made in each fiscal year from each fund and on behalf of the laboratory (identifying monies coming from other donors to the Larry G. Brown Media Management Laboratory);
(F) Calculations to determine the amounts to be expended each year from each fund,
(G) The names of the individuals responsible for proposing the use of monies from each of the aforementioned funds and/or on behalf of the Larry G. Brown Media Management Laboratory each year;
(H) The names of the individuals responsible for actually approving the expenditure of the proposed uses of monies mentioned in (3)(G) above;
(I) The names of the individuals responsible for actually making the approved expenditures noted in (3)(G) and (H) above;
(J) The closing fiscal year end balance in each fund for each year under audit.
Kindly attend to this request as soon as possible. My target date for receipt is November 15, 2006.
Sincerely,
Joi Reiner Gallo, CPA
cc: Michael C. Carr, Esq.
Immediate Past President, SIU Foundation /
Continuing Member of the Board of Directors, SIU Foundation
and
Assistant U.S. Attorney
Southern District of Illinois
United States Attorney’s Office
9 Executive Drive, Suite 300
Fairview Heights, Illinois 62208
Mr. Larry R. DeJarnett
President, SIU Foundation Board of Directors
and
Managing Director
The LAMAR Group
30810 Cartier Drive
Rancho Palos Verdes, California 90275
Chancellor Walter V. Wendler
Office of the Chancellor, Northwest Annex
Southern Illinois University
1235 Douglas Drive
Carbondale, Illinois 62901-4304
President Glenn W. Poshard
Office of the President
Southern Illinois University
1235 Douglas Drive
Carbondale, Illinois 62901-6801
Provost John M. Dunn
Office of the Provost & Vice Chancellor
Southern Illinois University
1235 Douglas Drive
Carbondale, Illinois 62901
Mr. Bryan C. Vagner
Managing Director, SIU Foundation
Southern Illinois University
1235 Douglas Drive
Carbondale, Illinois 62901-6805
Ms. Elizabeth Banycky
Controller and Treasurer, SIU Foundation
Southern Illinois University
1235 Douglas Drive
Carbondale, Illinois 62901-6805
Attorney General Lisa Madigan
State of Illinois
100 West Randolph Street, 12th Floor
Chicago, Illinois 60601
Mr. Ralph E. Becker
219 Old Kings Highway South
Darien, Connecticut 06820
Mr. Larry G. Brown
7101 Falling Water Lane
Plano, Texas 75024