A preliminary internal audit of former athletic director Mike Bellotti’s buyout and lack of contract identified a “lack of internal control” in the athletic department, the Oregon University System said.
The Oregon State Board of Higher Education’s Governance and Policy Committee ordered the audit earlier this month, after media coverage of the buyout exploded. The OUS presented the audit’s preliminary results to the committee at a board meeting Thursday morning at Portland State University.
The OUS wanted to make sure the department followed the appropriate laws and policies in hiring Bellotti and forming a contract, and find out whether tuition or state dollars funded the $2.3 million buyout and whether the athletic department exercises proper business practices in employment.
While the final results of the OUS audit will be revealed on May 14 to the state board, the audit clarified that no tuition or state funds will contribute to Bellotti’s buyout and that state board and University policies and procedures were unclear or not practiced. The audit also identified where the athletic department could improve its control structure. Under Oregon law, verbal contracts are still legitimate.
According to the audit, “Instances were noted by the auditors where the Board and the University rules, policies and procedures were unclear and in some circumstances, not followed, resulting in a lack of internal controls at the University over athletics employment contracting practices … The audit noted several opportunities to improve the control structure and implement best practices related to employment contracts in the University’s athletic department.”
University spokespeople could not be reached for comment Thursday.
However, the audit also recognized that recent business practices at the department, such as the hiring of Dana Altman as the new men’s basketball coach, reflected positive changes.
“There have been lots of positive changes under (University President Richard) Lariviere,” OUS Director of Communication Diane Saunders said. “It looks like they have done a really good job of stepping up to the plate and making sure that this doesn’t happen again.”
State board president Paul Kelly also expressed optimism in the press release
issued yesterday.
“We’re satisfied that the scope of this audit fully examined employment related processes and contracts at the University athletic department, and that the University is fully prepared to implement the recommendations of the audit,” Kelly said. “The Board believes that it’s crucial to ensure that all campuses are thorough and transparent in their contracting practices and procedures, and strive for the best practices to ensure integrity in all of their operations.”
Based on preliminary results, the audit recommended that the board restructure athletic and employment contracting accountability policies and to complete contracts for multiple-year positions in a reasonable amount of time.
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