Post by Bornthrilla on Sept 21, 2006 7:50:37 GMT -5
Article published Sep 21, 2006
Aggie-Eagle dollars don't make sense
By Rob Daniels
Staff Writer
The tax-exempt organization that ran the Aggie-Eagle Classic football game between N.C. A&T and N.C. Central claimed a much larger scholarship donation to A&T than it actually made, according to public records.
In a 2005 federal tax return, the Capital Area Sports Foundation said it made a $160,415 scholarship donation to A&T, but it has disbursed less than $100,000. The foundation asked A&T to forgive the remaining obligation.
Mable Scott, A&T's associate vice chancellor for university relations, said Wednesday that university officials have written a letter to the foundation saying they expect payment in full.
Camille Kluttz-Leach, A&T's legal counsel, said litigation is being considered. Kluttz-Leach also said she has been in contact with her counterparts at N.C. Central in Durham, who are seeking compensation from the foundation, a nonprofit arm of the City of Raleigh. The foundation describes its purpose in tax returns as "hosting the Aggie-Eagle Classic and related activities." The foundation operated the game at N.C. State's Carter-Finley Stadium from 2002-05. A&T didn't renew the agreement after last year's game.
In a contract dated May 10, 2002, the foundation agreed to pay each school $150,000 for scholarships for the 2005 game and to do so on the day of the game, Sept. 5. Under a statute of limitations governing breach of contract, the schools have nearly two more years to sue.
"We're going to talk a lot more about where we're going," Kluttz-Leach said.
More than six months after the payment date, Lawrence Wray, the foundation's chief operating officer, wrote James C. Renick, then A&T's chancellor.
"Our humble request is that you consider forgiving the Foundation for the remainder of $57,476.50 that we owe the University for the 2005 Football Classic," Wray wrote.
As of last week, A&T had received $96,810, said Reginald E. Wade, assistant vice chancellor for business services.
That amount appears to differ from the amount reported on the foundation's most recent federal tax return, a copy of which was obtained Wednesday by the News & Record. In a section titled "Cash Grants And Allocations," the foundation lists $160,415 each under the classification of "Scholarships" for A&T and N.C. Central.
Wray did not return telephone calls or an e-mail seeking clarification of the discrepancy between the actual payment and the line item on the federal tax return.
Early Wednesday, Wray admitted that A&T had not been paid in full.
"Because there isn't any money," he said.
Wray made that assertion to Renick, now a chief administrator for an education think tank in Washington, in his letter dated March 20, 2006. The letter lists the Aggie-Eagle Classic's expenses and revenues for 2003, 2004 and 2005. None of the amounts match the federal tax return figures.
For example, Wray told Renick, "As you can see, we have a 2005 deficit of $133,520.92." The tax return reports a deficit of $16,954 that year.
In chronicling his organization's financial state, Wray's note failed to mention 2002, when the foundation reported a profit of $90,951. According to the four years of records filed with the Internal Revenue Service, the group declared a profit of $44,645. That amount is echoed in the net assets line of the 2005 return.
Yet Wray told A&T the foundation had a cumulative deficit of $277,259.52 from 2003-05.
A&T's athletics director, Dee Todd, said Wednesday that she has not received an explanation for the difference in figures.
While declining to address a specific organization, a spokesman for Guidestar, a nationally recognized analyst of nonprofits, offered a general opinion.
"A public charity should be willing to explain the reasons behind any apparent discrepancies, and it needs to explain them to its supporters and beneficiaries," said Suzanne E. Coffman, director of communications for the group.
Marcus Owens, the former head of the tax-exempt division of the IRS, said discrepancies reported for a specific period are not uncommon.
"Typically, the Form 990 is a snapshot of the financial affairs of an organization as of a particular date," said Owens, now a member of the Washington law firm of Caplin and Drysdale. "At some times, it may be difficult to dissect transactions and make specific determinations."
Mark Hanson, a spokesman for the IRS' regional office in Greensboro, said federal policies prohibit the service from commenting on a specific taxpayer.
Contact Rob Daniels at 373-7028 or rdaniels@news-record.com
Aggie-Eagle dollars don't make sense
By Rob Daniels
Staff Writer
The tax-exempt organization that ran the Aggie-Eagle Classic football game between N.C. A&T and N.C. Central claimed a much larger scholarship donation to A&T than it actually made, according to public records.
In a 2005 federal tax return, the Capital Area Sports Foundation said it made a $160,415 scholarship donation to A&T, but it has disbursed less than $100,000. The foundation asked A&T to forgive the remaining obligation.
Mable Scott, A&T's associate vice chancellor for university relations, said Wednesday that university officials have written a letter to the foundation saying they expect payment in full.
Camille Kluttz-Leach, A&T's legal counsel, said litigation is being considered. Kluttz-Leach also said she has been in contact with her counterparts at N.C. Central in Durham, who are seeking compensation from the foundation, a nonprofit arm of the City of Raleigh. The foundation describes its purpose in tax returns as "hosting the Aggie-Eagle Classic and related activities." The foundation operated the game at N.C. State's Carter-Finley Stadium from 2002-05. A&T didn't renew the agreement after last year's game.
In a contract dated May 10, 2002, the foundation agreed to pay each school $150,000 for scholarships for the 2005 game and to do so on the day of the game, Sept. 5. Under a statute of limitations governing breach of contract, the schools have nearly two more years to sue.
"We're going to talk a lot more about where we're going," Kluttz-Leach said.
More than six months after the payment date, Lawrence Wray, the foundation's chief operating officer, wrote James C. Renick, then A&T's chancellor.
"Our humble request is that you consider forgiving the Foundation for the remainder of $57,476.50 that we owe the University for the 2005 Football Classic," Wray wrote.
As of last week, A&T had received $96,810, said Reginald E. Wade, assistant vice chancellor for business services.
That amount appears to differ from the amount reported on the foundation's most recent federal tax return, a copy of which was obtained Wednesday by the News & Record. In a section titled "Cash Grants And Allocations," the foundation lists $160,415 each under the classification of "Scholarships" for A&T and N.C. Central.
Wray did not return telephone calls or an e-mail seeking clarification of the discrepancy between the actual payment and the line item on the federal tax return.
Early Wednesday, Wray admitted that A&T had not been paid in full.
"Because there isn't any money," he said.
Wray made that assertion to Renick, now a chief administrator for an education think tank in Washington, in his letter dated March 20, 2006. The letter lists the Aggie-Eagle Classic's expenses and revenues for 2003, 2004 and 2005. None of the amounts match the federal tax return figures.
For example, Wray told Renick, "As you can see, we have a 2005 deficit of $133,520.92." The tax return reports a deficit of $16,954 that year.
In chronicling his organization's financial state, Wray's note failed to mention 2002, when the foundation reported a profit of $90,951. According to the four years of records filed with the Internal Revenue Service, the group declared a profit of $44,645. That amount is echoed in the net assets line of the 2005 return.
Yet Wray told A&T the foundation had a cumulative deficit of $277,259.52 from 2003-05.
A&T's athletics director, Dee Todd, said Wednesday that she has not received an explanation for the difference in figures.
While declining to address a specific organization, a spokesman for Guidestar, a nationally recognized analyst of nonprofits, offered a general opinion.
"A public charity should be willing to explain the reasons behind any apparent discrepancies, and it needs to explain them to its supporters and beneficiaries," said Suzanne E. Coffman, director of communications for the group.
Marcus Owens, the former head of the tax-exempt division of the IRS, said discrepancies reported for a specific period are not uncommon.
"Typically, the Form 990 is a snapshot of the financial affairs of an organization as of a particular date," said Owens, now a member of the Washington law firm of Caplin and Drysdale. "At some times, it may be difficult to dissect transactions and make specific determinations."
Mark Hanson, a spokesman for the IRS' regional office in Greensboro, said federal policies prohibit the service from commenting on a specific taxpayer.
Contact Rob Daniels at 373-7028 or rdaniels@news-record.com
