If you come to American University, then you have to be very careful about U.S. taxes, even if you are not a U.S. citizen. Unfortunately, all professors at American University receive about 90% of their income from within the United States and 10% of their salary wired to a local Bosnian bank account. Here is the kicker. The university considers all professors to be independent contractors. Thus, all professors must pay their social security taxes and income taxes for the United States and this income is reported on a 1099. This important tidbit of knowledge is withheld until a professor arrives in Bosnia. Even non-U.S. professors still have to file forms with the IRS. Since they are foreigners, the university may withhold up to 30% of their income, because the money comes from the United States. (By the way, you are not an independent contractor but an employee of the university). You can claim the Foreign Income Exclusion. However, U.S. citizens still have to pay their social security taxes.

Nobody knows where Denis Prcic is getting the money. American University has no transparency. The U.S. portion of the salary shows up in the account with no message such as where the money came from. Further, professors sign a contract with International Talent Resources, which is a shell company located in Penfield, New York.

Once a professor is hired at American University, he signs an offer. Then once the professor arrives in Sarajevo or Tuzla, then the professor signs a local contract for the local portion of wages and an independent contractor contract with International Talent Resources for the U.S. portion of wages. If a professor does not sign the contracts, then the professor does not get paid. Then around December, the administration comes back and forces the professor to sign a new local contract. Then here is where it gets interesting. We have a carrot/stick clause. A professor can receive an additional 20% of salary for a good job (nobody has receive it) or have up to 20% of salary deducted for violations. So far, only the local staff has been punished. Some professors said they would quit if their salary was reduced. One violation is not putting grades and attendance data into the SIS system on a regular basis. Also, the university added new responsibilities. Professors must mentor senior students on their thesis. Of course, the key word is mentor. However, the job responsibilities keep evolving and this is really advisor. The professors do not get paid for this. As a side note, I am sure the Bosnian government does not know about the U.S. portion of wages or the U.S. contract. The government only sees the local Bosnian contract. Furthermore, for 2011, the administration started taking out deductions from the local salary for the Bosnian income taxes. It is clear from the contracts that American University is supposed to pay all Bosnian taxes. The administration claims that it will return this money in May. Huh????

I only made it one Fall semester at American University. This is only four months. During that time, the executive director quit, and both the welfare officer and head of legal department were fired. One human resources professor quit, one IT professor quit (or was fired), and an English professor for the writing lab and one law professor were let go. American University has only 20 professors. The remaining faculty had to pick up the slack. Some professors are teaching up to 15 credit hours for the Spring 2011 semester. The admin tried to get some professors to teach 18 credit hours. Another complication is American University is spread out over three campuses: Banja Luka, Tuzla, and Sarajevo. Just teaching in another city for a day takes at least four to five hours on the road. These are wasted hours. It is very difficult to grade or prepare lecture notes in the car.

The student quality varies. Approximately 20% of the students are very good. They are eager to learn. However, a professor will have good classes and bad classes each semester. Good classes are comparable to what a professor could see in the United States. A bad class is a disruptive high school class. Students constantly talk during class, will not study the material, and tend to be very immature. Further, the students will not read any material that is assigned to them. The tuition is 6, 000 Euros per year, which is a godly sum for a poor country. The students believe professors should pass them because they pay a lot of money. Of course, many of the students come from affluent families. They are rich and spoiled.

The quality of the administration is not very high. They make many mistakes, such as ordering wrong books, and books arrive around mid-semester. Of course, the administration is overworked. American University wants to expand to Mostar and Belgrade, Serbia. It appears each staff member is doing the job of three workers. This expansion is probably why some faculty was let go at the end of 2010 Fall semester. The expansion is also worrisome. The expansion appears to be a drive for more students to keep the system going. When I looked at enrollment for my classes, the freshmen class seems to be getting smaller each year. (Again, professors do not know the student enrollment). Unfortunately, American University owns no assets. The university owns no buildings or cars. Everything is leased. Some of the faculty has joked that we could come in on a Monday morning, everything is gone and all the doors are locked.

The management style of American University is a Stalinistic type style. Once the leader makes a decision, then everyone must obey. Why did I choose the word “Stalin.” It gets better. The administration will do things in secret. I was shocked to learn that the administration gave professor evaluations to students at the end of the 2010 Fall semester. None of the faculty knew about his. How I found out is one of my good students told me. I believe this was how the administration determined which professors to let go. Further, many of the drivers speak English. Anything you say in the car gets reported back to the President. Yes, the administration (I mean the President) spies on its professors. Also, the administration will read professors’ emails or anything else used on the university’s computer system. The IT department in Tuzla is about four people. I always find it odd that their door is always locked and wondered what they do in there.

I noticed some of the positive replies from professors who taught at American University and how they said they will return to teach. Unfortunately, American University has almost a 100% turnover rate. I looked at the American University brochure from two years ago. Out of 16 professors, only two are still here. However, these two professors live in Sarajevo and are here in Bosnia for different reasons. Teaching at American University is secondary. From January 2010, a history professor, two English professors, and one business professor are still teaching here. This is their third semester here. Senior faculty is a whole two years at American University. Longevity is not part of the American University system. The administration views professors as expendable commodities.

If you are determined to come, then I can give you some advice. First, live in Sarajevo or Banja Luka. Tuzla is quite boring. Tuzla has a population around 170, 000 people. However, the city is quite dense and has a small town feel of 20, 000 people. Second, keep to yourself. Bosnians have three favorite pastimes, drinking coffee, smoking cigarettes, and gossiping. Whatever you say even at a restaurant on the other side of town can get back to the university. Foreigners stick out like a sore thumb in Tuzla and everybody seems to be related here. Third, go in to teach your classes and hold the minimum office hours. Then you stay away from the university. The Balkans are truly beautiful and Bosnia has many good restaurant. Enjoy what Bosnia has to offer. Remember, the key word is stay away from the university as much as possible. Fourth, just ignore the constant emails from the administration. Wait for the third request for information or they threaten to reduce your local wages. Unfortunately, the administration is bureaucratic and wants various documents and reports from faculty. Fifth, be careful what you say around the staff and drivers, and also the content of you emails that go through the university’s computer systems. Finally, you are only a temporary employee (or contractor). Your tenure at American University will be short.