Probe Finds No Laws Broken In UA Fundraising Deficit

Apr 29, 2014

File photo of University of Arkansas officials testifying before the Joint Performance Review Committee in January. From left to right, Vice-Chancellor for Finance and Administration Don Pederson, Associate Vice-Chancellor for Financial Affairs Jean Schook, Chancellor David Gearhart, former Vice-Chancellor of Advancement Brad Choate, former Associate Vice-Chancellor of University Relations John Diamond (behind Choate) and former Advancement Division Budget Director Joy Sharp.
Credit Michael Hibblen / KUAR

A prosecutor's report developed at the request of a state legislator concludes that the top financial official at the University of Arkansas engaged in no wrongdoing in dealing with a $4 million deficit in the school's fundraising division.

Deputy Prosecutor David Bercaw issued a letter to the House of Representatives on Tuesday that says Vice Chancellor Don Pederson didn't misrepresent any facts in addressing the Office of Legislative Audit.

Republican Rep. Nate Bell asked that a prosecutor review Pederson's role in the matter.

Bercaw says there was no fraud or misappropriation of funds and that Pederson made no false representations.

The university says the deficit has been eliminated and that it has made changes in managing its finances. In January, UA trustees signed off on the changes.

The six page letter released by Bercaw can be read here.