LITTLE ROCK — The University of Arkansas at Pine Bluff is on track to remedy problems with financial oversight identified in a recent internal investigation, the University of Arkansas System’s chief auditor said Thursday.
UAPB administrators have implemented many recommendations included in a February UA System audit, and they are working to address all issues before the end of the fiscal year on June 30, auditor Jacob Flournoy told members of the UA board of trustees at a meeting in Little Rock.
“There have been a number of administrative changes, and there are some they are still working on,” he said.
The investigation led Chancellor Lawrence Davis Jr. to fire four employees and spurred an investigation by Arkansas State Police.
Working for two years, UA auditors discovered $700,000 in payroll and purchasing transactions that violated university spending controls at the Harrold Complex, a student dormitory on the UAPB campus.
The UA investigation showed that Rita Ticey, a former student-housing supervisor, bypassed payroll and purchasing controls, employed family members, approved purchases that violated university policy, overpaid some workers and signed reimbursement forms to herself on the chancellor’s behalf.
Because Davis, who authorized Ticey to sign his name on documents, and Ticey had bypassed university rules for approving and documenting spending, auditors were unable to verify whether $497,532 in payroll expenses and $239,348 in purchasing expenses were made properly, the report said.
The audit included recommendations to strengthen oversight of time-sheet approval, to enforce rules about reporting and approving spending, and to review pay rates of multiple employees.
Many of those changes have been made, Flournoy said.
“We appreciate everyone’s cooperation to get the ship righted and make things better going forward,” trustee Ben Hyneman of Jonesboro said during an audit committee meeting Thursday. It was the first time the board had reviewed the report in a public meeting.
Since the audit was released, Davis has submitted his resignation, effective May 25. He has not commented on his decision to leave or clarified whether it was related to the audit.
UA System President Donald Bobbitt said he did not ask Davis to resign.
In an early retirement agreement, finalized Monday, the UA System agreed to pay Davis a lump sum of $190,000, equivalent to his annual salary, if he forfeited his tenure. He had two years remaining on his contract.
That agreement included a provision requiring Davis to abstain from making “disparaging remarks” about UA employees or auditors and requires those employees not to make similar comments about Davis.
Davis left the Little Rock board meeting before the audit review. Board members said Davis had a family emergency.
Board members asked few questions about the audit Thursday, saying they did not want to thoroughly discuss the situation in light of the ongoing state police investigation.
But board member Dr. Carl Johnson of Little Rock said he wanted to correct “a misconception out in the community.”
Some people have said the audit reported UAPB employees “stole” more than $700,000, which is incorrect, Johnson said. The investigation actually showed that that spending was not properly recorded or approved, he said.
“That’s a big difference,” Johnson said.
Hyneman said the audit left “a lot of unanswered questions” about how the money was used and spent.
“I think that’s the reason it’s been referred to the prosecuting attorney,” he said.
Arkansas, Pages 9 on 03/30/2012