A post about the money-suck that has been going on from the Pennsylvania treasury to the Tokyo campus of Temple University (“Temple University Japan”). Two months ago, Temple reported its Deloitte-audited financials for 2012-2013. As in the past four years, I looked over what was provided, to figure out what kind of money is actually going to the “breakeven” project in Tokyo.
Once again, a sanitized income and expense report shows TESS (Temple Educational Support Services Ltd., the legal name in English for Temple University Japan campus) to be an activity that on its face breaks even. However, there is always some thread to tug at. When you do, the fiction unravels.
This year, what’s happened is that Temple Japan has benefited from the $8 million loan that TESS co-borrowed with the main campus. In the report, the balance on that loan now stands at $6.1 million. So one of the entities paid about $2 million on the note. Which one? Not Temple Japan.
So this was another way for the Philadelphia-based operation to funnel money to Tokyo, without it appearing on the income statement. No doubt the loan sits as a balance or a receivable in favor of the Japan campus, and the payments are made to PNC Bank by the main campus in America. Neat trick, huh?
Temple Japan has probably lost $50 million or more since its founding in 1982—probably more. This is Pennsylvania taxpayer money being funneled into a sinkhole on the other side of the Pacific.