An administrator at Arkansas State University at Jonesboro has agreed to reimburse nearly $30,000 to the university for student housing discounts that he improperly authorized, a deputy legislative auditor told lawmakers Monday.
Student housing discounts totaling $39,244 were authorized for 12 ASU-Jonesboro students who were not dependents of an ASU System employee, in violation of the ASU System staff handbook and without ASU board of trustee approval, from July 1, 2006 to May 31, 2014, Deputy Legislative Auditor Larry Hunter said.
Lonnie Williams, associate vice chancellor for student affairs at ASU-Jonesboro, stated that he authorized eight of the 12 discounts totaling $32,087, Hunter said. Because of a scholarship one of the eight students received, $2,738 of this student's housing discount was returned or remained in the general scholarship fund.
Thus, $29,349 of housing revenue was not collected because of the eight ineligible discounts improperly authorized by Williams, Hunter said.
The ASU System's Office of Internal Auditor -- which conducted a review relating to Williams' authorizing improper student housing discounts -- was unable to substantiate who authorized the remaining four discounts totaling $7,157, Hunter said. University officials had requested the review.
The internal auditor recommended that Williams reimburse $29,349 to ASU-Jonesboro for housing revenue not collected as a result of his improper authorizations, Hunter said. So far, Williams has reimbursed $325 through payroll reductions, and a schedule to recover the rest of the money from Williams has been established, he said.
State Rep. Homer Lenderman, D-Brookland, asked ASU System President Chuck Welch whether the students who received these housing discounts through Williams' authorization had to reimburse the university.
Welch replied that "we did not require those students [to reimburse the university for the housing discounts] because they went on good faith of what they were given by the university and were unaware that there was anything there, and so we are making that full restitution the liability of Dr. Williams."
Williams agreed to reimburse ASU Jonesboro through payroll deductions and accrued leave time, Welch said.
Williams' annual salary is $132,813, according to ASU records.
Auditors also found problems in a separate audit at ASU-Jonesboro that focused on an employee's travel expenses. James M. Hall, an associate professor and director of mathematics education, resigned Feb. 27 and returned $4,283 to the university March 7.
In eight instances between 2009 and 2013, Hall was reimbursed by the university or the university directly paid a travel agency for travel expenses that were also reimbursed by the National Council for Supervisors of Mathematics or Advanced Placement Calculus, Hunter said.
Hall also traveled to China as a participant in the People to People Ambassador Program from Nov. 30-Dec. 12, 2009, and the trip was funded from three difference sources, including a federal grant that Hall received through the state Department of Education, Hunter said.
Hall was reimbursed $1,552 from the grant funds for travel expenses to China, but use of the funds was outside the defined purpose of the grant award and lacked documented state Department of Education approval, Hunter said. Hall returned the money July 16.
At the University of Arkansas at Pine Bluff, a former employee, Theodis Gipson, has been charged by a prosecuting attorney with felony theft of property in the amount of $5,000. The UA System's Internal Audit Department conducted an audit after a former assistant athletic director expressed concerns about unauthorized, university-unrelated purchases by Gipson, Hunter said.
Gipson's employment at UAPB ended May 15, 2013, Hunter said.
During the first five months of 2013, Gipson signed for 30 orders from a vendor totaling $8,289; $7,266 of those were for unauthorized, nonuniversity-related food purchases, Hunter said. The former assistant athletic director stated that he was responsible for ordering food for the concession stand, but he did not order these items from the vendor, Hunter said. The former assistant athletic director is Willie Fulton, according to the UA.
The university reviewed the food purchases with its general counsel and paid only the authorized outstanding invoices, Hunter said. The department of athletics has outsourced concessions, removing the need to purchase food items from food vendors. Thompson Hospitality has been chosen to run concessions for the department.
Metro on 12/16/2014