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ORU lawsuit: Roberts offers sharing of data
ON SIDELINE
Richard Roberts:
He’s taken a leave of absence as the university’s president following allegations in a lawsuit.
By ZIVA BRANSTETTER World Projects Editor
Published:
11/19/2007 1:27 AM
Last Modified: 11/19/2007 1:27 AM
Read the latest stories about the ORU lawsuit, examine the lawsuit and other documents and watch slide shows and video.
He endorses "complete financial transparency."
Oral Roberts University President Richard Roberts said he wants "complete financial transparency" at the university if he is allowed to return to his position.
In an interview with the Tulsa World on Friday, Roberts answered criticism by tenured faculty members and others that ORU withheld information about its finances. He also discussed his practice of reimbursing the ministry for personal expenses, a student center that was never built and the possible sale of the university's television station.
Roberts said in news articles in 1997 and 2001 that ORU's debt had been cut in half when in fact debt had increased during those years.
He said Friday: "In the early years of being president I think I got some funny information. We had to make some changes in personnel in those years."
Roberts has been on a leave of absence from the university since Oct. 17 while ORU's board and independent auditors investigate allegations in a lawsuit that he and his family misused ORU and Oral Roberts Ministries money and resources.
A World investigation showed that ORU spent $73 million more than it brought in between 1993 and 2006. The university recorded only two years with a positive operational balance: 1993 and 1995.
Tenured faculty members who met last week voted no confidence in Roberts as the president and CEO and voted for "greater faculty governance and transparency of university finances."
Roberts said that if he returns as president, he plans to meet with tenured faculty members every two weeks.
"The faculty, for whatever reason, have felt like they have not had a voice, and that's wrong, and I take responsibility for that," he said.
Roberts said ORU needs a "culture change," adding, "I would like to have complete financial transparency."
Roberts said he discussed the issue recently with faculty members and told them they might be "scared spitless" at times to see the university's books.
"I laughed and said, 'Can you stand it?' I said back in those early years when I was president and we didn't know if we were going to make payroll, how would you have felt back in those years if I had called you together for prayer and said, 'I'm $200,000 short for payroll on Friday?' "
He said the faculty "came to ORU to teach. You didn't come to worry about payroll."
Roberts said that although faculty members deserve to have more financial information, it is "a good question" as to whether all financial records should be shared with the public.
"You don't know what the media is going to do with that," he said.
ORU is a private university and not subject to the Oklahoma Open Records Act, as public universities are. The annual financial forms ORU files with the U.S. government, called 990 forms, are open under federal law.
The lawsuit filed by three former ORU professors alleges that Roberts and his family used university resources for personal use, including trips, clothing and other expenses. Roberts said the ministry -- Oral Roberts Evangelistic Association -- had paid for his family's personal expenses at times but he later reimbursed OREA.
"I didn't have a good system of paying for it in front. I paid for it after it was over, and that is a mistake, but all of it was reimbursed," he said.
"The charge was it was paid for out of the university, and that's not true. It came from the OREA."
Questions have also been raised about ORU's handling of $8.8 million in donations for a student center that was never built. The funds included $5 million from a donor who asked to remain anonymous.
The funds were raised in 2001 for the building, which was estimated to cost between $17 million and $25 million. After the World requested information about the project, an ORU spokesman said the university spent $3.6 million on demolition of a building and other preparation work before the project was put on hold.
With the donor's permission, other funds were spent on scholarships and operations, the university said.
But at least one donor who spoke to the Tulsa World said he did not give permission and was not asked whether his donation could be used for other purposes. ORU has refused to answer additional questions about the project.
Roberts said the student center was put on hold after Sept. 11, 2001, because donations slowed. Regarding ORU's account of the funds raised, he said: "I don't think the numbers are correct. I'm not in a position right now to correct them for you."
Roberts said he hopes the university can sell its TV station, KGEB, channel 53, to help pay down a $52 million debt. KGEB broadcasts shows such as "The Hour of Healing" featuring Roberts and "Make Your Day Count," whose host is his wife, Lindsay Roberts.
Roberts said: "My understanding is the current appraisal is $14 million for the TV station. . . . I heard this week there are currently 16 groups that have an interest in buying it."
Roberts said any sale would not affect his TV shows. He said he could buy time on the station or other stations:
"I'm not going off television, never. That's my calling."
Ziva Branstetter 581-8378
ziva.branstetter@tulsaworld.com
By ZIVA BRANSTETTER World Projects Editor
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Report Comment
c.a.
, elsewhere (11/19/2007 2:05:13 AM)
Ah, so the gist of the explanation is that although he may not always be right, he's never wrong!
How edifying.
Report Comment
c.a.
, elsewhere (11/19/2007 2:22:02 AM)
There once was a scandal in town
That the gossips enlarged
'round and 'round
'Til nobody knew
What was false or was true --
God's name in vain
Seems the primary sound.
Report Comment
bikegoiooie
, glenpool, ok (11/19/2007 2:53:07 AM)
that is not what was said, he did admit that he made mistakes, but after all he is just human. Also he did not say that he was not never right that he was wrong. He admits that he was wrong iI make mistake, I am never right. The way it sounds you don't make mistakes and you are always never wrong.
Report Comment
c.a.
, elsewhere (11/19/2007 3:14:50 AM)
Just being sarcastic in the middle of the night.
Report Comment
c.a.
, elsewhere (11/19/2007 3:18:46 AM)
As to not having a good way to pay for things up front-- give me a break!
It's called a corporate credit card/expense account for items legitimately business related.
If the items are personal expenses, then they should be paid for personally in the the first place.
Report Comment
c.a.
, elsewhere (11/19/2007 3:21:36 AM)
If taking RR comments on how the fiscal matters were handled at face value, in the most favorable light, then it still is shockingly shoddy bookkeeping.
Report Comment
qqq
, (11/19/2007 3:28:15 AM)
Roberts said in news articles in 1997 and 2001 that ORU's debt had been cut in half when in fact debt had increased during those years.
He said Friday: "In the early years of being president I think I got some funny information. We had to make some changes in personnel in those years."
.
This is nonsense. Dave Ellsworth, who is the current Exec VP Finance & Operations & CFO was VP of Finance & Operations since early in 2000. He was the VP of Operations before that. If RR was still getting "funny information" in 2001, why is Ellsworth still there? This excuse doesn't make sense.
Report Comment
qqq
, (11/19/2007 3:44:23 AM)
ORU has had 11 straight years of deficit spending. This is the change in net assets (i.e. loss) year by year:
.
2006 (3,902,437)
2005 (2,611,435)
2004 (2,578,159)
2003 (10,483,551
2002 (3,388,030)
2001 (1,759,742)
2000 (2,589,939)
1999 (4,345,259)
1998 (6,714,895)
1997 (2,324,420)
1996 (7,933,552)
.
It's not like they have addressed the problem. This is Financial Mismanagement R' Us. No management of a real company would last 11 years with results like that. It's management like this that causes you to be in danger of missing payroll.
.
"I laughed and said, 'Can you stand it?'"
.
It's odd that RR considers it a laughing matter. No business wouldn't find it funny.
Report Comment
c.a.
, elsewhere (11/19/2007 3:44:38 AM)
Yeah, sounds too much like "the dog ate my homework" excuse.
Report Comment
9ALUM0
, hiding from repercussions (11/19/2007 3:48:40 AM)
I agree #7 the information has been there and perhaps its time to clean house. Perhaps Dave Ellsworth should be fired. Or better yet brought up on charges for false information and cooking the books. How many sets of books do you suppose they have? There are sure a lot of fingers in a lot of different pots. Is it ORU? Is it OREA? Is it ORM? Is it TRACO? Is it another shell company?
DAVE ELLSWORTH - ITS TIME TO COME CLEAN
Report Comment
qqq
, (11/19/2007 3:52:37 AM)
One more thing. RR's excuse for incorrectly reporting that the debt was cut in half is that he was getting "funny information". He was saying this as recently as 2001, apparently. This means that the President did not find out he was being lied to for 8 years, from when he assumed the Presidency in 1993 until, at-least, 2001. This is either unbelievable or evidence of complete incompetence.
Report Comment
R.D.
, Tulsa (11/19/2007 3:52:54 AM)
It is a little bit late isn't it? How much more is it going to take to get rid of this crook? How is he going to pay for the taxes when they take away their tax free status? I guess he could open a seperate account for that bill. He could take care of that account himself I am sure. Can you people not see a false prophet when there is one right in front of you?
Report Comment
c.a.
, elsewhere (11/19/2007 3:57:28 AM)
I'd like to think ORU can be turned around and made to thrive again.
Other schools have done so. One example is Lindenwood Univ. in St. Charles, MO. It almost went under due to grieveous mismanagement, huge debt, loss of faculty and students. Today it is thriving, growing, and soid academically.
The key is new, fresh, quality LEADERSHIP with ability and accountability. Hope ORU gets some soon.
Report Comment
qqq
, (11/19/2007 4:00:25 AM)
This is so outrageous I have one more. This time a quote from a poster who indicates he is one of the tenured faculty.
.
633. 11/17/2007 9:14:30 PM, faculty, tulsa
As a faculty member I am outraged at the lack of credible leadership over the years. We've endured hardships and rumors for so long we really don't expect anything different. I can speak for many professors here when I say it is time for a complete change of leadership. We've endured lies and deception long enough. The President has let us down with his disappearing act over the last few years. The CFO has taken our raises and doled them out to his favorites. These people give themselves raises and bonuses with no accountability. We demand the resignation of not only the top leadership, we demand the financial leadership to step aside as well. Let all these financial gurus take the honorable step of resigning so we can get back to the business of educating students.
Report Comment
Frost
, Cleveland, OH (11/19/2007 4:04:20 AM)
The Dog Ate My Homework!
Report Comment
c.a.
, elsewhere (11/19/2007 4:05:55 AM)
#11 qqq -- yep, the dog ate the bookkeeping reports.....I mean homework.....
and I believe in the tooth fairy
Report Comment
Wheels
, Tulsa (11/19/2007 4:10:35 AM)
I hope, everyone sees through this crook. He's using the same tactic as the one he and lindsay use on those who believe if they give they get healed. Sorry, I'm not a believer buddy boy. You get no money and NO CONFIDENCE, hopefully no job.
Report Comment
c.a.
, elsewhere (11/19/2007 4:10:46 AM)
Sadly, RR's excuses sound much like the line that Ken Lay of Enron tried to claim.
......smoke on the water
Report Comment
c.a.
, elsewhere (11/19/2007 4:20:28 AM)
Ya know, an interesting, if unscientific, way to poll students is watch how many pack up and haul home an unusual amount of their stuff for Thanksgiving. Might give a clue if many are thinking of bailing at the end of the semester because of all this.
Report Comment
qqq
, (11/19/2007 4:25:04 AM)
What exactly are the qualifications of the current management team?
.
You want financial scandal. We got 'em. You want sexual scandal? We got 'em. You want low salaries and bad maintenance? Natch. You want accreditation heading downhill, possibly to a really bad end? Check. But they have the ONLY important qualification---the right last name.
.
Accomplishments:
Opened a Law School
Closed a Law School
Opened a Hospital & Medical Center
Closed a Hospital & Medical Center
Opened a University
____________________
Fill in the blank here
.
The faculty want them gone.
.
The alumni giving rate is 6%. There are only two possible reasons: 1) ORU can't train anyone well enough so they can earn a living and have any spare money to donate, or 2) they just don't want to support the university in its current state. I lean toward the second conclusion.
.
Most of the students and alumni say they really love the place, especially the other students and the professors, and especially NOT the administration.
.
Who loves them?
Just maybe the Board of Regents.
We will see.
End of Tirade....
Report Comment
Carl Robbins
, San Jose (11/19/2007 4:29:59 AM)
'FUNNY" information -- or "PHONY" information?
There are holes in RR's statements big enough to drive a convoy of trucks through.
"Funny" information -- or "phony" information?
-- The "funny information," claim is nonsense, as qqq makes clear in post 7 above. Reread it folks.
It looks like the "personnel changes" they had to make to fix this funny info was a promote the key man, Ellsworth who was behind it?
Some personnel changes!
Clearly "phony information," -- not funny.
-- No "good system" for paying personal expenses up front?
Ever heard of a personal credit card, like most of us use, Richard?
It's not rocket science.
Charging personal expense to donors and "reimbursing" them later -- when? After a lawsuit has exposed the practice --is a clear abuse that could tempt a saint.
In the least it shows very poor judgment.
And in reality -- who know if those expense were really reimbursed -- and when.
How long did the org have to carry Richard's personal expenses before reimbursement, IF reimbursement was made?
Very bad judgment --- and maybe worse.
--The 8.8 million for a Student Center?
The claim it was spent elsewhere with donor's permission.
That has already been proven wrong. At least one donor has come forward and said not so.
His account of this is already wrong. Makes you wonder how many others
-- especially since, as the TW says
"ORU has refused to answer additional questions about the project."
Hmmm. That smells to high heaven..
As does the claim 3.6 million of it went for demolition.
Several posters have calculated the size of the building, reasonable costs and man-hours --- and come up with, at tops, $300,000.
AN OFFER OF TRANSPARENCY
You offer transparency, Richard.
How about transparency over that 8.8 milliion? And that demolition? for a start?.
And why has the new, transparent ORU "refused" to provide further information on this project?"
No sooner is the new era of transparency announced -- than ORU tells the TW -- and fhe public -- no more info on this project.
Sen GRASSLEY and staff -- this needs looking into.
Richard's whole account is full of holes -- and is more like DUCKING, BOBBING AND WEAVING.
What's so amazing to me is that with all their practice THEY DON'T EVEN LIE WELL.
-- that's how I see the article My point of view.
Report Comment
c.a.
, elsewhere (11/19/2007 4:33:53 AM)
#20 qqq -- agree w/ 2nd conclusion
Report Comment
c.a.
, elsewhere (11/19/2007 4:39:17 AM)
Anybody know if the old CB was still a viable building at time it was demolished?
If yes, why tear it down prior to knowing the full $$$ were in hand to build the new Student Center?
Report Comment
Carl Robbins
, San Jose (11/19/2007 4:53:17 AM)
Chinese Fire Drill management
You're right on target, qqq.
This is truly one of the most incompetent, dodgy regimes -- from the president, the CFO and their cronies -- since Enron.
They even mismanage their cover-up stories!
They're "transparent, but....no more questions about the Student Center."
The deficit is gone....but
The debt is reduced ...but
There's a salary freeze ...except for...
My elderly uncle who lives not far from ORU , and who knows Oral, calls it a"chinese fire drill," --with apologies to the Chinese.
ONLY NEPOTISM, CRONYISM and SYCOPHANTIC OPPORTUNISM could assemble this bunch.
And This is the "boob-team" that's going tro lead ORU to better days?
No wonder students worry about their futures.
i wouldn't want to hitch my wagon to this bunch.
That's how I see it.
Report Comment
c.a.
, elsewhere (11/19/2007 4:55:54 AM)
#21 -- No "good system" for paying personal expenses up front?
Ever heard of a personal credit card, like most of us use, Richard?
It's not rocket science."
.........bet the dog ate his credit card
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