Audit: Chicago State unable to find $3.8M in equipment

Audit: Chicago State unable to find $3.8M in equipment


Associated Press
2:41 PM CDT, March 22, 2012

Chicago State University has been unable to locate $3.8 million worth of equipment, including 950 computers that could contain confidential information, according to a state audit.

The review released Thursday by Auditor General William Holland continues a string of reports of poor financial oversight at the university. But the school issued a statement saying the number of problems discovered had dropped because of a new administration's “proactive approach” to correcting them.

The audit also found problems with scholarship awards, lax contracting oversight, overspending a federal grant and improper spending on a New Orleans tour.

The university reported 1,840 items purchased over the past four decades were missing. The total purchase price was $3.8 million and hold a current value of $403,000, Holland's report found. There were no records to indicate whether there was confidential information on the 950 computers.

Inventory problems included a $106,000 library book sorter purchased in 2006 that could never be used and was returned for a $15,000 credit this year.

Chicago State has been under intense scrutiny since a Holland audit in 2007 found questionable spending on Caribbean cruise “leadership seminars” and other items by former president Elnora Daniel, who resigned in early 2008.

The school issued a statement noting the auditor made 34 findings, down from 41 last year, and credited the aggressive agenda of president Wayne Watson.

“Chicago State took a proactive approach this year by instituting corrective action plans immediately upon identifying potential audit findings, by us or the auditors,” Glenn Meeks, vice president of administration and finance, said in a statement. “We're … well aware that these things take time.”

The audit revealed the university had mistakenly given out $123,000 in federal tuition aid to 20 students over the past four years and that 13 students had improperly gotten $20,000 in state-financed awards. But that was after the school administrators initially recorded $740,000 in improper aid because of poor academic achievement, forgetting that they had ended sanctions against subpar performance in 2008.

The school improperly spent $7,500 in federal money on tour guide services in New Orleans for 16 students and two staff members. It overspent that $1 million grant by $53,658.

On one program, it paid $195,300 to vendors without reporting it and auditors found four contracts worth $864,000 that didn't include documents showing the vendors had not been barred from state work. Another $1.3 million in contracts were dated and signed after work had begun or did not have approval of the fiscal or legal officers.

Please read complete article at link below:


http://www.chicagotribune.com/news/local/breaking/chi-audit-chicago-state-unable-to-find-38m-in-equipment-20120322,0,6914691.story