A $295 briefcase, birthday cakes, food, and alcohol for office parties. Airline tickets and a $451 car insurance premium.
According to a state audit report of the University’s financial records, these were just a few of the things paid for with University donations and department credit cards during a period of time examined by auditors.
The report, detailing field work done between March and July 2000, found that these expenses were not only questionable, but in some cases were prohibited by state law.
When the 54-page report was released, University officials initially maintained that no school money had been spent inappropriately.
University Vice President of Administration Dan Williams described the problems found by the auditors as being “relatively minor” in light of the number of people employed by the University and the size of the budget.
Administrators also took offense at auditors’ criticism of “development” expenses — money spent on gifts and events for the purpose of building relationships with University benefactors. Funding for these expenses is provided through donation money dispersed to departments by the University Foundation.
“Those are not expenses that have been to the personal benefit of any of the individuals,” Williams said. “Those are expenses that are incurred for the purpose of attracting donors.”
Auditors also criticized the University’s use of credit cards. Several departments reviewed by auditors used credit cards for prohibited purchases such as airline tickets, food, flowers, gifts, alcohol and other personal expenses.
“If we can improve some of our processes, we will,” Williams said when the audit was released. “But we’re not going to change how we use foundation money.”
Cathy Pollino, the deputy director for the State Audits Division, said problems with University credit cards may have stemmed from a lack of communication with department card-holders.
“They [the University] really haven’t told employees what’s acceptable and what’s not acceptable,” she said.
In response to that finding, an audit coordinator in the University Business Affairs Office has been working with a team to investigate how 30 University departments use credit cards.
The results of that review will be used to correct problems found by auditors, Business Affairs Office Director Sherri McDowell said.
“We’ll be using our reviews this summer to touch base with those departments named in the audit,” she said.
McDowell said poor judgment and a lack of education may have been responsible for credit-card misuse in the past. In order to prevent problems in the future, she said, the business affairs office is taking steps to teach department card-holders what University credit cards can be used for. The office will sponsor workshops and provide written guidelines to card-holders, she said.
Foundation officials and University administrators remain adamant, however, that auditors were wrong to criticize the University’s use of gift fund money.
Auditors criticized the Lundquist College of Business for spending $7,760 of University Foundation money to buy football tickets. Donors were told that money would go to developing courses on business ethics, auditors said.
They also found that the college of education spent $3,336 of foundation money to send the dean and another employee to the Aloha Bowl, and the Knight Law Center used $451 of donation money to pay the law school dean’s car insurance premium.
In a statement released last month, Vice President for University Advancement Allan Price disagreed with the auditors’ recommendation that foundation funds be more carefully accounted for.
“Legally, UO Foundation funds are private and not subject to state audit,” Price said. “The foundation is rigorous in its efforts to ensure that all funds are used in accordance with donor intent.”