Follow-up audit findings released Thursday by the Arkansas State University System express concern that Chancellor Tim Hudson, who resigned Tuesday night, used his position to seek financial assistance for his then-college-bound daughter.
A memorandum dated Wednesday that was sent by Assistant Vice Chancellor for Administration Jo LunBeck to ASU System President Charles Welch noted three examples of potential violations of state law by Hudson via email exchanges.
[DOCUMENTS: Latest Arkansas State University System audit findings]
[RELATED COVERAGE: Chancellor quits at ASU; exit follows finding of woes in trips abroad run by wife]
In an email sent Nov. 25, 2015, by Hudson to New York Institute of Technology Chief of Staff Peter Kinney, the chancellor writes: “I would like to talk to you about [my daughter] — [My daughter] is very interested in NYIT — but frankly, we’d need some sort of help to make that a reality. Perhaps we can find a way to be mutually helpful.”
ASU's main campus in Jonesboro is home to the New York Institute of Technology College of Osteopathic Medicine, which is in its inaugural year.
After the holiday season, Hudson and Kinney followed up on the subject of financial assistance, with Hudson attaching his daughter's resume in a Jan. 5, 2016, email to Kinney.
"There are many personal, professional and political reasons that I continue to encourage her — not the least of which is that I think it is a good 'fit' for her interests and persona," Hudson wrote. "As a friend, however, I am sure you are aware that we would need some substantial assistance to make this financially viable."
Another email sent April 21, 2016, from Hudson to the Rev. Kevin Wildes, president of Loyola University New Orleans, states: “I have to be somewhat conscious of costs. Loyola has offered … [my daughter] a scholarship. … However, if there is any additional assistance that you or others might provide, I believe that would confirm … [my daughter]’s decision.”
Loyola's vice president of enrollment management replied April 27, 2016, that Hudson's daughter had been awarded $3,000 in additional financial aid.
Hudson adds in the email: "Meanwhile, if I can ever be of assistance to you or anyone associated with Loyola, I hope you will do me the honor of calling on me."
A third email from Hudson dated April 28, 2016, again seeks financial assistance for his oldest daughter from the president of an out-of-state university — this time directing his request to President Tony Waldrop of the University of South Alabama, which, like ASU, is a member of the Sun Belt Conference.
In a statement regarding the follow-up audit, Welch said the ASU Systems’ internal audit process “functioned properly and successfully.”
“Once the audit facts were presented to me, steps were immediately taken to address each issue presented,” he said. “We are disappointed in the findings and will take appropriate steps to prevent future incidents — as we always do following audits.”
The second audit also references a failure to disclose a conflict of interest related to Grupo Sense de Madrid, the parent company of third-party vender Multisense used for the university's study-abroad program in Spain.
Audit documents made available Thursday come after an earlier audit which found problems in the university’s study-abroad program, run by Hudson’s wife, Deidra Hudson, who resigned last month.
Check back with Arkansas Online for updates on this story and read Friday’s Arkansas Democrat-Gazette for full details.