Audit: Poor Management In University of Arkansas Division

Sep 10, 2013

Legislative auditors say poor management and a failure to follow school policies led to a $3 million deficit within a division at the University of Arkansas.

The school requested an audit after administrators discovered the Advancement Division had overspent its $10 million budget in 2012.

Audit results released Tuesday said a primary reason for the deficit was the addition of staff members without a corresponding increase in permanent funding.

The Arkansas Division of Legislative Audit said the arm of the university that handles public relations, alumni and fundraising saw expenditures grow from $7.9 million to $13.2 million from 2008 to 2012.  The division's budget held steady around $9.96 million.

The school agreed with many portions of the review but disagreed with a claim that it withheld some information from auditors.