New JMU hire 'not part of' Idaho debt problem

President Rose, former employer support VP despite concerns

Joanne Carr

The executive director of the University of Idaho Foundation recently was hired to oversee all JMU private fund raising.

However, some JMU officials have questioned President Linwood Rose's decision to hire Joanne Carr, considering her former foundation holds $26 million in debt as a result of investment decisions made during her employment.

But, according to Jim Hawkins, president of the Idaho foundation, Carr was not responsible for poor investment decisions that led the Foundation into debt.

JMU named Carr senior vice president for university advancement last December, and she began work at JMU in early February.

For three years, her former foundation served as a conduit for the University of Idaho to develop a $136 million satellite campus, she said.

According to a report issued in December by KPMG, an accounting firm, "the Project was not adequately planned, executed, monitored or reported."

University of Idaho President Robert Hoover resigned in April 2003 amid concerns with the project, and Jerry Wallace, the foundation's treasurer, was fired soon after, according to a May 23, 2003, article in The Chronicle of Higher Education. The FBI currently is assisting a U.S. attorney to interpret a 600-page report on the project in an effort to analyze some of the complex financial aspects involved.

Officials at Idaho said, however, that despite Carr's role as executive director of the foundation, she was not heavily involved in the management decisions for the development, named University Place.

"[Carr], in my opinion, was never part of the problem," Hawkins said. "She worked extremely hard and did all the right things."

The project, which was intended to be a four-building molter development, began in January 2000 when the foundation responded to a request from the university to buy real estate in Boise, Idaho, Carr said.

"It ran up against a changing economy," she said. "The size overran the project, and it was decided to not go ahead with it."

She added that her employment in Idaho was not meant to be focused on real estate development, but on university advancement.

"That's what I did in Idaho, and that's why I am here," Carr said. "Only 10 percent of my time was to serve as executive director."

Dual roles confusing

Dual roles shared between the foundation and university created confusion during the project, Carr said. In addition to her dual role, Wallace also held two positions, serving as the foundation's treasurer and the university's vice president for finance and administration.

The foundation at JMU, however, is structurally independent from the university, so a similar situation could never occur, Carr said.

Rose said foundations and institutions have relationships that differ by state, and reflect the values of each institution.

"I think the two bodies should be separate and distinct," he said. "I would never do it the way Idaho did it. You're asking for trouble."

Tom Schaeffer, vice president and chief financial officer of the JMU Foundation, agreed.

"It appears that the UI foundation lacked independence," he said. "There was no separation of administration between the university and the foundation."

Schaeffer added that he had no concerns over Carr's employment at JMU.

"With her credentials, she can really pick up the ball," he said.

Carr's credentials

Rose said experience running a capital campaign was a primary consideration when hiring a new vice president.

During her six years at Idaho, Carr completed a $100 million campaign, which overreached its goal by 30 percent, raising $128 million and finishing two years ahead of schedule. She also increased the university's annual private fund raising from $8.5 to $30 million.

"The set of circumstances here at JMU is similar to what I found in Idaho in 1998 in terms of size and donations," Carr said.

Carr currently oversees all fund-raising activities at the university, Rose said. This includes efforts with alumni, parent relations, marketing and media relations.

Carr was one of many applicants for the position, according to Donna Harper, assistant to the president, who chaired the search committee.

After meeting the criteria of the search committee, Carr was one of a few candidates recommended to interview with Rose.

"We weren't really aware of the situation [in Idaho] as part of the search project," Harper said.

Rose said he knew of the situation before she was a candidate, but was unaware of her particular role in the project until he contacted officials in Idaho.

"It was higher education news. We knew about it from that perspective," he said. "After her first interview, I made contacts to people in Idaho and the response was positive.

"She was not involved [in the management decisions]," Rose said. "It was principally an ambitious president and [chief executive officer]. Everything I've read and heard points to them."

Rose said some people even told him that Carr not only wasn't responsible for the mismanagement, but also was influential in bringing issues with the project to attention.

Hawkins was one such person. "I'm sure [Carr] will be a great asset at James Madison," he said. "I hated to see her go."