LITTLE ROCK — A former College of Business dean at the University of Arkansas at Little Rock filed for and received more than $15,000 in expenses he was not entitled to and failed to report leave amounting to about $16,346 in salary, an internal audit found.
Audit findings involving former Dean Anthony Chelte have been turned over to the office of Prosecuting Attorney Larry Jegley, University of Arkansas System spokesman Ben Beaumont said Monday.
Jegley said that it is too early for him to comment on the matter, which UA System President Donald Bobbitt and UALR Chancellor Joel Anderson had asked the UA general counselor’s office to forward to the prosecutor for review.
UALR is seeking reimbursement of $11,480.80 in duplicated, unauthorized or nonuniversity-related travel expenses from Chelte, as well as $16,346.18 he was paid for 182 hours of unreported leave that he took, according to audit findings and UALR spokesman Judy Williams.
According to the audit, $8,762 of the $11,480 was money reimbursed to Chelte both by UALR and by other entities. The remaining $2,718.80 was for travel expenses that were unauthorized or not related to university business, the audit found.
Among the allegations against Chelte was that he bought a ticket at UALR expense for a teaching trip to Germany but later switched it for a trip to Hawaii.
The audit says Chelte was terminated, though he actually resigned, knowing termination might be forthcoming, written communication between Chelte and Anderson reveals.
According to a series of emails and letters released by UALR, Anderson removed Chelte from the dean’s position Jan. 5 in a letter in which Anderson cited Chelte’s “lack of professionalism and questionable activities.”
On Dec. 1, the date Chelte was told of the audit, he reimbursed UALR $3,580 in travel expenses, “evidencing the validity of the initial allegation,” Anderson wrote.
Further, Anderson wrote, “When confronted about your failure to submit requests for annual leave, you did not deny your actions, rather you indicated you felt entitled to the time off because you sometimes work evenings and weekends.”
Then on April 20 — one day after Anderson saw a draft copy of the audit — Anderson e-mailed Chelte and told him that if the final report reflected similar findings, he planned “to initiate dismissal proceedings to terminate your employment as a tenured faculty member for cause.”
On April 21, Chelte resigned, effective April 30. Chelte’s annual salary as dean was $188,850.
Anderson received the final audit May 8.
Chelte could not be reached for comment about the audit findings, contained in two separate reports. No phone listing was found for him in the Little Rock area.
UALR spokesman Williams said she believed he had moved from his previous address but did not know where he now lives.
The audit took place after faculty and staff members in the College of Business contacted UALR’s interim provost in early November about concerns regarding Chelte’s travel expenditures.
According to the internal audit, Chelte — who joined UALR on July 1, 2009 — incurred $75,540.73 in travel expenses for 45 UALR-funded trips during his time as dean.
The internal audit found, among other things, that Chelte was getting reimbursements both from UALR and from organizations for which he “acted as a mentor or presenter.” The organizations included the Association to Advance Collegiate Schools of Business, association-accredited schools and Rotary Youth Leadership Awards.
The $3,850 Chelte repaid was for a trip he took to France in June 2010, the audit found. According to a chart included with the audit’s findings, those double-reimbursed trips took place between Nov. 1, 2010, and Oct. 30, 2011, with seven of the 10 trips being to France.
Chelte also submitted travel expenses in six cases totaling $2,718.80 that, the audit found, “were either unauthorized or non-University business related.”
One of those expenses was $1,696.20 for airfare Chelte bought with a UALR travel credit card for a trip to Germany to teach at another university.
“Dr. Chelte subsequently exchanged and used the ticket for a trip to Hawaii unrelated to University business,” the audit found.
“Three of the instances equaling $822.60 were for ticket change fees” — changes that the audit found were made for nonuniversity business-related purposes. The other two times totaled $200 and were for charges to upgrade to preferred seating, an unauthorized use of UALR funds, the audit found.
In reviewing all 45 of Chelte’s travel authorizations and expense forms, the review found two instances where the authorization was not approved by the travel administrator or travel supervisor, seven times when the travel authorization was not approved before his departure date and 39 cases where the travel authorization was not approved before airfare was bought.
The internal audit also found that Chelte “incurred 17 charges to the UALR travel card and one personal reimbursement for ticket change fees totaling $5,296.30.” Yet, the audit said, “The corresponding travel authorizations were not revised and resubmitted for approval by Dr. Chelte.”
The audit recommended that UALR institute stronger internal controls to prevent such problems again, and UALR indicated that it would or already has.
UALR told auditors that it has taken steps to ensure, among other things, that charges to travel cards are approved by the appropriate authority.
“Employees incurring expenses without appropriate and timely approvals may be held personally responsible for the expense,” UALR said.
Among other changes is a new requirement that all exchange agreements with colleges in other countries be reviewed by the university general counsel’s office.
Front Section, Pages 1 on 05/22/2012