FAMU Being Audited?

The Associated Press reported Monday the board that oversees the state's higher education will investigate the finances of Florida A&M University.

FAMU and the Department of Education say that report is wrong, but there is an audit going on. FAMU says their books are off by almost $2 million, and that's why they are working with the auditor general, but this is not an investigation. However, they say the numbers are in the black, not the red.

A recent report says Florida A&M University is under investigation by the Florida Department of Education, but FAMU and the department say that's not true.

"The 1.8 million dollars is net asset, and that is a 'net' asset. The University is working with the auditor general's office to figure out what that net asset is," says Dr. Gainous.

Meaning FAMU is in a surplus of money, and they say they don't know where the money came from, but are working on it.

"Once we find out where the net asset came from, we will let you all know."

With this current financial question still unanswered, FAMU students say they aren't worried, and Dr. Gainous says of the 13,000 students, 8,000 have already registered for next semester, but some other students say they are concerned about FAMU's future and want to know where the past problems related to finances came from? Surplus or otherwise.

"We knew the system was old. We found things we wished we hadn't. However, we simply employ the best business practice now. The problems have been a learning process."

Earlier Monday, our newsroom was told that Dr. Fred Gainous announced he was going to possibly resign. Dr. Gainous was asked if there was any truth to that, and he said "not that I'm aware of."

Dr. Gainous says with all of the financial issues going on, if anyone has been fired is a personnel issue, but that the appropriate changes have been made.