Just a few more thoughts on the background of the University of Hawaii’s missing concert money.
Yesterday I mused about athletics existing on a different planet from the rest of the university system. Well, it’s been that way for a long time.
I dug into this about 15 years ago in a series, “The Money Game,” which ran in the old Honolulu Star-Bulletin. It peeked behind the curtain at money and wheeling-dealing that set the athletic program off from the rest of the campus.
Here’s the lead from the first story in the series:
Money from sponsors and booster clubs was deposited in 39 special accounts at the UH Foundation, where it could be spent without restrictions that normally apply to state agencies. Miscellaneous expenditures from these accounts amounted to $1 million during the year ending June 30, 1996, according to a financial summary presented to the Board of Regents.
University records show that Associate Athletic Director Jim Donovan, with day-to-day control over all UH athletic facilities and its $12 million annual budget, spent nearly $50,000 from one account last year on expenses that included:
• Meals and entertainment at Gordon Biersch, Hooters, Moose McGillycuddy’s and other spots.
• At least $1,768 for greens fees, food and drinks while golfing during a two-month period.
• $1,400 to play in charity golf tournaments benefiting other groups.
• $100 for a framed photograph delivered to a helpful United Airlines reservations agent.
• Champagne, flowers and other gifts sent to corporate executives or marketing representatives.
• Cigars from Don Pablo Smoke Shop.
Donovan denies any wrongdoing, although he acknowledges that some people may disagree with his spending decisions.
There’s lots more reported in that series, and you may want to browse through it.
I’m sure it’s somewhat different today. More money. Bigger stakes.
Back in 1997, when the series was published, I had an unusual experience, and an educational one, I suppose. My own newspaper editorialized against the series, poo-pooing the questions it raised. Turned out Jim Donovan was a personal friend of the Star-Bulletin’s editor & publisher, who came to his friend’s defense by staking out a public position on the editorial page.
So the whole free wheeling money thing is part of the background that we need to know more about.
Then there’s the whole governance mess. Who is in charge of athletics?
The NCAA has rules which say the Manoa chancellor, as the top administrator of the campus where the athletic program is lodged, should be in charge. And UH reported to the NCAA that the chancellor was firmly in control, as the rules require. But there were lots of questions about whether that was the reality, which were discussed here late last year. The evidence seemed to show UH President Greenwood’s office was calling the shots, and the chancellor was relegated to a minor role, certainly not setting policy.
It isn’t hard to see how this confusion over governance may have created lots of wiggle room for athletic department officials. After all, most departments on the Manoa campus report to the chancellor, but athletics seemed to have been getting their direction from the president’s office. It isn’t hard to see that this card could easily have been played to create an unusual degree of autonomy down there in athletics.
And now, according to a report on Hawaii News Now last night, we know that UH lawyers reviewed the concert contract, and the VP/CFO of the UH system (remember, this is all at the system level, not the level of the chancellor and the Manoa campus) authorized payment of the $200,000 via wire transfer. Once again, the athletics department was able to leapfrog the chancellor’s office and get approvals directly from the president and the system.
Greenwood said she didn’t know about the concert. Hard to believe, but possible. All part of this package.
And now it’s all come home to roost. How unfortunate.
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This whole episode makes me sick to my stomach. What was going on? Hubris? Ineptitude? Laziness? Recklessness? Indifference? Irrational exuberance? $200,000 may not seem like a lot up against the total athletics budget–or the full university budget. But I’m pretty sure $200,000 is more than the vast majority of Hawaii households earn in a year. 2 officials put on leave? I hope to heck that this response is just the tip of the iceberg and that the investigation goes deep, because there’s clearly something really, really wrong with the administrative procedures over there.
More evidence that the system is running the athletic department — Rockne Freitas was named Acting AD — Rockne is the Assistant Vice President — that’s system, not Manoa. I feel sorry for Tom Apple but he did the right thing by taking (if it was him and not Greenwood) decisive action and removing Donovan and Sheriff at the start. What’s the old proverb – if it sounds too good to be true, it probably is!
I agree with Doug.
I watched from a distance Freitas’ time here as a detached head of Hawaii Community College. Not a bad man but uninvolved in community’s seldom engaged his faculty. Was distant and essentially a commuter.
Lingle prevented him from doing his assignment to create a campus setting for a school scattered all over the place, asserting she did not understand plans in place before the election.
Question is whether Manoa’s AD was complicit or reckless.I will wager the latter.
Here we go again…..the cry will be loud and often. Hire a “local” guy to replace Jim D. More of the same. Freitas didn’t sound like the most articulate person in the world last night on the TV news. He kept referring to being on high alert for the “smoking gun”. Huh? Hire an unknown with some experience and let’s all move on.
Well, actually, Donovan was a “local” guy. Played for UH, then up through the administrative ranks, long stint as associate athletic director, before landing the top job.
Simply put, an overall lack of even the simplest of internal controls or due diligence on the part of the executives of the UH. Greenwood, Todo and Freitas are responsible for these activities as the executives in charge of making sure these policies and procedures are in place and in force.
To excuse this failure is not acceptable for the taxpayers of Hawaii, because they have been there for many years and simply making Donovan and Sheriff scapegoats only shows their willingness to pass the buck rather than take the responsibility for their mismanagement.
The buck stops at the top, but under revisionist history the Truman doctrine only applies to flunkies.
In theory, the UH-M Athletic Department is under the UH-Manoa administration. MRC Greenwood is the President of the UH System. Howard Todo is the Chief Financial Officer and VP for budget and finance of the UH System. Rockne Frietas is the VP for student affairs — again the UH System. But the BOR, as I’ve read them indicate that the UH-Manoa athletic program reports to the UH-Manoa Chancellor (now Tom Apple) and before Virginia Hinshaw. But as President Greenwood proved in the hiring of the new football coach — the UH system IS in charge. I don’t think Donovan and Sheriff are being made scapegoats — they just got scammed. But you are correct, given the size of the funds, many more eyes had to be involved than just Donovan and Sheriff. The UH system the greater the amount of the transaction, the greater amount of scrutiny. My theory is over exuberance, lack of due diligence and the likelihood, as Ian mentioned in the original piece that “relationships” played a role. Somebody knew somebody who vouched for the deal.
I agree that Donovan and Sheriff are not blameless in this matter. However, that does not excuse the level of mismanagement of the entire situation by the UH System for not having adequate internal controls and failure to conduct minimal due diligence on this fiasco.
I don’t see anyone on a senior level falling on their sword and taking responsibility for the bureaucracy’s failure. To that extent, Donovan and Sheriff are convienient fall guys and Greenwood and her gang can parade their heads to the Legislature and the public as taking action, but not the responsibility for the situation.
I think ‘Whatevers’ was saying that if you hire a local guy you’re going to have the same problem, so you should hire an outsider. Of course, it’s not 10AM yet so my brain cells aren’t firing on all cylinders, so I could have misunderstood his statement.
Been listening to ESPN radio to see if the story has been picked up yet. Not a peep. But given that the big story of the day is the release of the Freeh report on the Penn State – Sandusky cover-up, greatly overshadows the UH problem. One difference between the two “scandals” is that at least the UH administration has responded decisively, not cover things up to avoid bad publicity like they did at PSU.
This story has been on the MSNBC website and on the NBC Sports website. See: http://collegebasketballtalk.nbcsports.com/2012/07/12/where-is-the-200000-hawaii-paid-for-a-stevie-wonder-concert/
It was picked up by deadspin too.
http://deadspin.com/5925332/fbi-called-in-over-university-of-hawaiis-canceled-stevie-wonder-concert-debacle
As the the ugly details start to come out im sure it will get a lot more national press coverage.
excellent post today, Ian. very interesting to see that newspaper execs practically flaunt their bias and power. that said, the now-defunct Advertiser’s publisher was equally, if not more, guilty!
The way things are going at the UH, they can look into hiring Ronald Rewald. I am sure that he won’t let the UH become a victim of a con job.
My SigOth and I have season tickets in all six ticketed UH sports plus we’ve been Wahine softball supporters for nine years now. We also attend other sporting events whenever possible plus we make an annual donation to the cheerleaders’ program.
NCAA Division 1-A sports are part of the UH System although the 20 sports are located on the Manoa Campus. UH Hile teams are not included in these groups.
I’ve been at numerous Regents meetings over the past decade when UH sports and its personnel have been discussed. They are considered part of the System administration not just under the Manoa campus jurisdiction.
It is my belief that Jim Donovan and Rick Sheriff are taking the hits for what has happened although they were not acting alone.
My point once again is that the system role appears contrary both to NCAA rules and to the university’s own statements affirming that full control is exercised by the Manoa chancellor.
I think that JD has done a great job at UH. I noticed that no one mentioned that UH was working with Bob Peyton who is a reputable events coordinator.
Also on the $50,000 mentioned above, we all need to remember that JD is networking with the very rich and has made a dramatic increase in donations and sponsorships in his tenure. I would also guess (sorry I don’t have the information) that this $50,000 spent is much lower then the AD’s before him for the past 20 years. Just my 2 cents!
Mahalo,
Scott
From Stephen Tsai’s WARRIOR BEAT blog in the Star-Avertiser:
There won’t be any first-day clumsiness when Rockne Freitas begins his job as acting athletic director today. Freitas will be filling in for Jim Donovan, who is on paid leave while the circumstances leading to the canceled Stevie Wonder concert are investigated.
Freitas should be making a forceful debut — in part because of his quick-acting personality, in part because he comes from a position of power.
In Donovan’s 4-plus years as AD, it appeared he had to operate within the constraints set by Upper Campus and downtown Honolulu powers. There will be fewer obstacles for Freitas because 1) He is doing the school a favor by taking on this role, and 2) Few rank higher than Freitas in the hierarchy of the UH system.
Freitas’ presence will be felt. As he noted yesterday, “an absentee landlord is a recipe for disaster.”
Freitas already has a 4-point plan. It shouldn’t take long before he begins implementing it.
“Freitas already has a 4-point plan. It shouldn’t take long before he begins implementing it.”
overnight? Was this more a coup?
Could this be Wondergate?
UH has plenty strong fiscal safeguards. I have to file forms explaining why I have no receipts for each $2.00 in City subway tickets spent on work-related travel. Unfortunately, the time fiscal staff must spend reviewing all those from hundreds of UH travelers might have gotten in the way of watching after $200k. Maybe that’s right or maybe it’s penny wise, pound foolish. Just a thought.