Danielle Jordan, President
Valdosta State University
Dear Ms. Jordan,
The Investment Committee of the VSU Foundation Board of Trustees has
reviewed the request from your organization that securities issued
by companies engaged in the production of fossil fuel energy be
excluded from the foundation’s endowment portfolios. Compliance with
your well-intentioned request is impractical for a number of reasons
and perhaps even a breach of the fiduciary responsibility that all
of our trustees take very seriously.
While the search is on for a new director, now is the time for the city,
county and industrial authority board to come together to make some
decisions about the organization and what the community leadership needs
and wants it to be.
Speaking to the Lowndes County Commission on 8 March 2011,
I read from
VLCIA “inter-governmental funding agreement” with Lowndes County,
noting that VLCIA’s own audited annual financial report seems to be out of date,
since it still says VLCIA asks the Lowndes County Commission for its funds.
And I wondered about this part in Note F:
The bonds are secured by an “inter-governmental” funding agreement
between the Valdosta-Lowndes County Industrial Authority and Lowndes
I repeated what I wrote before:
If the Lowndes County government is co-guarantor of VLCIA’s bonds,
how can the Lowndes County Commission say it has no responsibility or
control over what VLCIA does? I am not a CPA, but the term “fiduciary
responsibility” comes to mind.
If I’m reading that right (I am not a CPA), VLCIA took out about $15M
in bonds for which they will pay back a total of about $23.5M. Is that
really $8.5M in debt service, or about 56% of the original principal?