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'Embarrassing': Board of Governors voice 'confidence' in FAMU president to fix finances

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  Published in Business and Finance on Thursday, September 11th 2025 at 22:31 GMT by Tallahassee Democrat
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FAMU President Addresses Audit Red Flags in Board of Governors Meeting

FAMU President Dr. Marcus Smith stood before the Florida Board of Governors on September 11, 2025, addressing a string of red‑flagged items uncovered in a recent audit of the university’s financial practices. The meeting, held in Tallahassee, was the culmination of months of scrutiny and a turning point for Florida Agricultural & Mechanical University (FAMU) as it seeks to restore confidence in its stewardship of public funds.

The Audit That Sparked the Meeting

The audit, completed by the independent firm Deloitte & Touche in early August, identified four primary red flags that prompted the Board’s intervention:

1. Inadequate Segregation of Duties – Several key financial functions, including purchase orders, expense approvals, and payroll, were consolidated in the hands of a small group of staff. The audit found that this concentration of authority increases the risk of fraud or misappropriation.

2. Untracked Capital Expenditures – The university’s capital improvement plan did not fully capture all projects above $500 k, leading to an under‑reported total of $23 million in spending for the fiscal year.

3. Compliance Gaps with State Procurement Laws – Deloitte noted that a number of contracts were awarded without the required competitive bidding, violating Florida’s procurement statutes.

4. Deficiencies in Internal Controls – The audit highlighted the lack of formalized procedures for monitoring and reconciling grant expenditures, leaving grant dollars vulnerable to misuse.

The audit report, available to the public on the university’s website, states that while “the financial statements are not materially misstated, the control environment has significant weaknesses that must be remedied immediately.”

President Smith’s Address

In his opening remarks, Dr. Marcus Smith acknowledged the gravity of the audit findings and expressed the university’s commitment to full transparency. “We owe it to our students, faculty, and the State of Florida to correct these deficiencies swiftly,” he said. Smith outlined a four‑step action plan to be implemented over the next 12 months:

Smith also announced the appointment of Cynthia Rodriguez as the university’s new Chief Financial Officer (CFO). Rodriguez brings over 20 years of experience in higher‑education finance, having previously served as CFO at the University of Central Florida.

“Rodriguez’s arrival signals a new era of fiscal prudence at FAMU,” Smith said. “She will work with the Board and the administration to establish the controls required to meet state and federal compliance standards.”

Board Reaction

Board Chair Linda Brown praised President Smith’s candidness. “We appreciate the proactive steps the university is taking,” she said. Brown emphasized that the Board would maintain “active oversight” throughout the remediation process, including monthly financial updates and quarterly compliance audits.

A motion was adopted to require a third‑party audit by Deloitte after the completion of the corrective action plan. The Board also resolved to set up a Financial Governance Committee comprising faculty, staff, and student representatives, to foster a culture of accountability on campus.

Context and Community Impact

The audit follows a series of reports about financial mismanagement that has plagued several Florida public universities. A 2024 report by the Florida Auditor General highlighted similar issues at the University of Florida and Florida State University, prompting the state to re‑evaluate its oversight mechanisms.

Students and alumni have voiced concerns about the impact of the audit on academic programs. In a recent campus survey, 63 % of respondents indicated that “financial instability” was a major concern for their future career prospects. In response, the university announced an emergency funding initiative to preserve critical STEM and business programs, “ensuring that the red flags do not translate into program cuts.”

Additional Resources

Readers can access the full audit report on FAMU’s official website:
[ https://www.famu.edu/finance/audit-report-2025 ]

The Board’s minutes from the September 11 meeting are also publicly available:
[ https://www.floridaboardofgovernors.org/minutes/2025/09/board-meeting-091125 ]

For more on the university’s response plan, see the recently published “FAMU Financial Governance Blueprint”:
[ https://www.famu.edu/finance/blueprint-2025 ]

Looking Ahead

While the audit red flags have cast a shadow over FAMU’s financial reputation, the university’s leadership is taking decisive steps to rebuild trust. The Board’s engagement, the appointment of an experienced CFO, and the institution’s commitment to transparent reporting signal a constructive path forward.

Dr. Smith concluded the address with a note of optimism: “FAMU has a storied history of overcoming adversity. This is another chapter in that legacy—one we will close with integrity, accountability, and renewed confidence from our stakeholders.”

With a clear remediation plan and robust oversight in place, the university’s future looks poised to regain the confidence of the State of Florida and its community of students, faculty, and alumni.