UALR Chancellor Joel Anderson said Monday that he’s referred an audit report on Anthony Chelte to the Pulaski County prosecuting attorney in case the university’s former business college dean does not agree to reimburse thousands of dollars in improper travel expenses.
As Arkansas Business first reported Monday, an internal audit of the UALR College of Business said Chelte was responsible for more than $15,300 of duplicate and unauthorized travel expenses.
The audit recommends that the college seek $11,480 in reimbursements from Chelte, who incurred more than $75,500 in travel expenses during his 18 months as dean. A separate report questioned more than $16,300 in "apparent unreported leave time" by Chelte, and made recommendations to strengthen UALR’s internal controls for documenting leave time and reporting travel.
Chelte, who was demoted in January after an internal investigation, resigned from the university in April. Chelte’s salary in 2011 was $188,850.
In an interview with Arkansas Business on Monday afternoon, Anderson said he regretted Chelte’s behavior. He said that Chelte brought a raised profile and better recognition to the business college.
"I am deeply disappointed in Dr. Chelte," Anderson said. "The position of dean is a senior administrative position on any university campus, and a senior administrator is always accorded a significant amount of discretion.
"You trust them, you depend upon their good judgment in leading a college, and the financial affairs of a college, and when one abuses that trust, it’s a personal disappointment."
Anderson said the university’s attorney will send a demand letter asking that Chelte reimburse UALR for the expenses. He said "there is a real possibility that he will reimburse the funds as demanded."
Meanwhile, UALR has sent the audit reports to the prosecuting attorney in case Chelte does not agree to the demand, Anderson said.
Bob Adams, UALR’s vice chancellor of finance and administration, said the university will take measures to avoid a similar situation in the future.
"We are going to change our travel review," he said.
The updated policy, Adams said, will introduce more scrutiny to flight changes and require higher approval for things like iPad data plans. The audit report said Chelte incurred more than $1,300 for 11 charges of international data plans for his iPad. While UALR’s policy states that iPad data plans are an allowable reimbursement, it does not address international data plans.
Some of Chelte’s infractions, like double-dipping on reimbursement, are harder to track, Anderson said.
"It’s hard to set up internal controls," he said. "It depends on the honesty of the individual to prevent that."
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