UA Audit Reveals Millions in Cash Balance Deficits

UA Audit Reveals Millions in Cash Balance Deficits

Audit concluded that vice chancellor for the Advancement Division "did not exercise proper fiscal oversight," and "did not comply with the University policies and procedures."
FAYETTEVILLE, AR -- The University of Arkansas has released the results of an audit looking into the budgets of the Division of University Advancement.

The report showed the financial records had a deficit cash balance of $2.14 million for 2011 and $4.19 million for 2012. 

They also found account receivables posts made by the the division "partially obscured the deficits in the financial statements." And while "revenues for the division stayed relatively constant" for both years, spending increased from $7.94 million to $13.23 million, which the report claims resulted in an "overall decline in the combined Advancement and Foundation cash balance."

The audit results concluded that the vice chancellor for the Advancement Division "did not exercise proper fiscal oversight" and "did not comply with the University policies and procedures."

Back in February, Brad Choate stepped down as Vice Chancellor for University Advancement after a $3 million shortfall in the division's budget. Razorback Foundation Executive Director Chris Wyrick replaced him.

The position oversees University fundraising, communication and alumni offices as well as special events.

To see the full audit report, click the link above.

The university responded to the audit by issuing the following statement:

“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.”

Page: [[$index + 1]]
comments powered by Disqus