Update: Audit Shows Poor Management, No Fraud in UA Advancement

by Gwen Moritz  on Tuesday, Sep. 10, 2013 4:40 pm  

Brad Choate

Other than that single case, the Legislative Audit staff "noted no other duplicate payments or improper expenditures."

Update: The UA has also released this statement in response to the report findings:

Statement from University of Arkansas System President Donald R. Bobbitt 

“The audit report released today by the Division of Legislative Audit regarding the advancement division of the University of Arkansas confirms the issues that contributed to the overspending in the division. While the expenditures were for legitimate needs leading up to a major fundraising campaign and the auditors found no theft or fraud, it’s clear that there was a lack of budget oversight within the advancement division. As Chancellor Gearhart has said, this was a case of overspending the budget of a division within the university.

“As leaders of a vital public institution, we must ensure that we are closely monitoring and appropriately accounting for all of the university’s resources. We will address all of the issues raised in the report and move forward in a positive way. Since becoming aware of the problem last fall, Dr. Gearhart and his team have worked steadily to identify the causes of the overspending and have taken steps to ensure this does not happen again. I want to reiterate and confirm my full support for Chancellor Gearhart in this effort. In calling for these audits, Dr. Gearhart invited a transparent review of the advancement division finances with the goal of determining steps needed to correct the problem. I am grateful to the auditors for their diligent work and for their recommendations, which we will begin to implement immediately. 

 “While the unanticipated deficit in the advancement division was and is unacceptable, the university itself remains in very good shape financially. With growing enrollment and strong reserves, the university is in the best financial shape in its history.”

 

 

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