2008 Woodie Awards
13 financial problems identified in '08 audit
Matt Morrison
Issue date: 3/17/08 Section: News
UCF mishandled several million dollars in funds and is spending more money than it should, according to a recent state audit.
At a time when state budget cuts to education have caused reductions in classes, caps on enrollment and stalls on faculty raises, the findings for the fiscal year ending June 30, revealed 13 instances of university funds being used improperly.
Several findings involved the university assessing fees and transferring funds without having legal authority for its actions. According to the audit, the university loaned $7.4 million to the UCF Athletics Association Inc. in violation of Florida statutes. There is not yet a plan as to how that money will be paid back.
The university also transferred about $15 million to the association and the University of Central Florida Foundation, the audit states.
As well, the auditor found that the university assessed a $50 fee for some international students effective in fall 2005 without legal authority and extended credit to non-governmental entities through the office supply store, Office Plus, contrary to the Florida Constitution. Other findings ran the gauntlet from institutional oversights - such as Parking Services failing to monitor the decals its employees hand out and UCF overpaying an employee about $100,000 since 2001 - to the university paying higher premiums on building insurance than it should.
Ted Sauerbeck, audit manager for community colleges and universities with the Office of the Auditor General, said that generally, there is no penalty provided in the law for these findings.
"It's incumbent on the governing body, in this case the Board of Trustees, to ensure that corrective action is taken to address our findings and recommendations," Sauerbeck said.
Sauerbeck, a UCF alumnus, said the audit aims to ensure that UCF is using every dollar to which it is entitled. According to the audit, Sauerbeck said, this is not always the case.
Sauerbeck said that every finding in the report is important.
At a time when state budget cuts to education have caused reductions in classes, caps on enrollment and stalls on faculty raises, the findings for the fiscal year ending June 30, revealed 13 instances of university funds being used improperly.
Several findings involved the university assessing fees and transferring funds without having legal authority for its actions. According to the audit, the university loaned $7.4 million to the UCF Athletics Association Inc. in violation of Florida statutes. There is not yet a plan as to how that money will be paid back.
The university also transferred about $15 million to the association and the University of Central Florida Foundation, the audit states.
As well, the auditor found that the university assessed a $50 fee for some international students effective in fall 2005 without legal authority and extended credit to non-governmental entities through the office supply store, Office Plus, contrary to the Florida Constitution. Other findings ran the gauntlet from institutional oversights - such as Parking Services failing to monitor the decals its employees hand out and UCF overpaying an employee about $100,000 since 2001 - to the university paying higher premiums on building insurance than it should.
Ted Sauerbeck, audit manager for community colleges and universities with the Office of the Auditor General, said that generally, there is no penalty provided in the law for these findings.
"It's incumbent on the governing body, in this case the Board of Trustees, to ensure that corrective action is taken to address our findings and recommendations," Sauerbeck said.
Sauerbeck, a UCF alumnus, said the audit aims to ensure that UCF is using every dollar to which it is entitled. According to the audit, Sauerbeck said, this is not always the case.
Sauerbeck said that every finding in the report is important.