President's compensation overstated on tax form

By Nick Petaros & Allison Schmidt
Editor-In-Chief & Managing Editor

An error found on the most recent Wartburg College Tax Form 990 incorrectly stated the amount of President Jack Ohle’s compensation for the 2003-2004 fiscal year. Instead of receiving $221,650 in compensation as the Form 990 reported, a signed statement from chief business officer and treasurer Rich Seggerman has confirmed the correct compensation number for Ohle was $201,650. This is exactly $20,000 less than initially reported. Ohle, who signed the form, also confirmed the error.

“I don’t know entirely where that number ($221,650) is coming from,” Seggerman said. “We will be in contact with our auditors to find out what steps need to be taken to correct this.”

Seggerman said that the error occurred in the breakdown of the salary schedule and did not affect total revenue and expenditure numbers. He also said the college will make sure this mistake doesn’t happen again.

Trumpet phone calls to the auditing firm which prepared the Form 990, Virchow, Krause & Co.  in Madison, Wis., were not returned.

During interviews for the “Wartburg Feud” story, faculty raised questions about President Ohle’s percent increase in compensation. The $221,650 reported on the Form 990 was a 17.9 percent increase in compensation from the previous year; however, the new confirmed figure of $201,650 is a 7 percent increase in the compensation column.

When analyzing Form 990s from the last three fiscal years, the number in the employee plan contribution column for Ohle in 2003-2004 did not follow the trend of the previous two years. In 2001-2002 Ohle’s employee benefit plan contribution was $26,500. In 2002-2003, that number was $31,960. And in 2003-2004, the number was listed as $14,000.

Adding the $20,000 compensation error to the employee benefit plan contribution would total $34,000, fitting the trend established by the previous two years.

Seggerman acknowledged that it is possible that the $20,000 may have been reported in the wrong column on the Form 990. However, he said he will continue to be in contact with the auditors to examine this error and see what steps, if any, need to be taken to correct it.

Dr. Larry Sayler, associate professor of management at Greenville College in Greenville, Ill., wrote his dissertation on Form 990s and how they are completed by colleges.

“501(c)(3) and almost all not-for-profit organizations have to complete a form 990 every year,” Sayler said. “The whole purpose behind the (Form) 990 is that constituents have the right to know. Students pay tuition, room and board. You have a right to know how that money is being used.”

Sayler said that because a not-for-profit organization doesn’t pay income tax, the 990 is their official tax form,.

“So it’s an official IRS tax form and needs to be prepared competently and accurately," Sayler said.

All Tax Form 990s are available to the public and can be accessed at www.guidestar.org.