Spring Break
Economy enforces tighter restrictions on college funds
Kayda Norman
Issue date: 11/6/08 Section: News & Feature
Rumors have been circulating the campus that the college is freezing the accounts of all student organizations. These rumors may have started partly in response to the announcement that the college will not have a concert during the fall semester.
According to Warren Hilton, associate dean for student development and director of the co-curricular leadership program, the college is not freezing accounts, but rather carefully watching how clubs spend their money, a measure that was put into effect Oct. 1.
"As you know and everyone else knows, we are in some serious economic times. There's a lot of financial uncertainty in the country and in the world," Hilton said. "What I was asked, and others in the college were asked to do, was to make sure we are being prudent with our spending."
The college may not be freezing clubs' accounts, but according to the article "Bank Freeze Leaves Hundreds of Colleges Cut Off From Short-Term Funds" from "The Chronicle of Higher Education," Moravian's bank, Wachovia, is freezing colleges' accounts.
"What Wachovia did was say that everyone knows we are not doing well. Wachovia said uh-oh, could all 900 colleges come and take out their money? So they limited how much money you can take out right now," Hilton said. "They don't want you to take out money or Wachovia would be out of business."
The article explains that Wachovia is only allowing participants in the Common Fund for Short-Term Investments to withdraw 10 percent of their assets. And, according to Hilton, Moravian has this investment.
Hilton states that the college has all of its money.
"It is kind of the same thing your family would do if money got tight. You would go, do we really need a new coat right now, when we have got two coats from last year? The college is doing a similar thing but obviously, in a broader capacity…we are asking people to be prudent with their spending," Hilton said.
As Hilton explains, a family would still have all of the money they have saved, but would just be careful about how they spend it.
According to Warren Hilton, associate dean for student development and director of the co-curricular leadership program, the college is not freezing accounts, but rather carefully watching how clubs spend their money, a measure that was put into effect Oct. 1.
"As you know and everyone else knows, we are in some serious economic times. There's a lot of financial uncertainty in the country and in the world," Hilton said. "What I was asked, and others in the college were asked to do, was to make sure we are being prudent with our spending."
The college may not be freezing clubs' accounts, but according to the article "Bank Freeze Leaves Hundreds of Colleges Cut Off From Short-Term Funds" from "The Chronicle of Higher Education," Moravian's bank, Wachovia, is freezing colleges' accounts.
"What Wachovia did was say that everyone knows we are not doing well. Wachovia said uh-oh, could all 900 colleges come and take out their money? So they limited how much money you can take out right now," Hilton said. "They don't want you to take out money or Wachovia would be out of business."
The article explains that Wachovia is only allowing participants in the Common Fund for Short-Term Investments to withdraw 10 percent of their assets. And, according to Hilton, Moravian has this investment.
Hilton states that the college has all of its money.
"It is kind of the same thing your family would do if money got tight. You would go, do we really need a new coat right now, when we have got two coats from last year? The college is doing a similar thing but obviously, in a broader capacity…we are asking people to be prudent with their spending," Hilton said.
As Hilton explains, a family would still have all of the money they have saved, but would just be careful about how they spend it.
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