March 17, 2008

Audit Shows U. of Central Florida Lent Millions to Athletics Association

A routine review by a state auditor has found that the University of Central Florida may have inappropriately lent its independent intercollegiate-athletics association more than $7.4-million, a practice the university has discontinued, and provided more than $49-million in student fees to the athletics association without proper oversight.

The operational audit, prepared last month by David W. Martin, Florida’s auditor general, took special interest in the lending of public funds to a “direct-support organization” like the athletics association, which is independent of the university. On July 1, 2003, the university’s athletics department became the UCF Athletics Association Inc.

The audit found that from June 2004 to January 2007, the university issued nine loans from auxiliary university accounts to the association, totaling more than $7.4-million. Only two such loans were approved by John C. Hitt, the university’s president, and none were approved by the university’s Board of Trustees, the audit reported.

In its response to the audit, university administrators noted that the loans were not required by the athletics association but were initiated by the university “as a way to help the intercollegiate athletics program increase its quality and competitiveness.” Administrators added that “the university has requested an updated plan of repayment from the association and has ceased to initiate new loans.”

Additionally, the audit found that the university did not have procedures to monitor the use of millions of dollars in student fees collected to support the athletics program, which may be used only to pay debt on capital projects. The university noted that those fees are no longer directly transferred to the athletics association but rather are overseen in a university account and distributed through the university’s finance office.

The audit’s findings, which were first reported by The Central Florida Future, the university’s student newspaper, will not result in any legal action or penalties. —JJ Hermes

Comments

1. Everybody go long! At least 1 to 5 in Okaloosa. Don’t forget to pack your striped suit!

   — marci    Mar 17, 03:39 PM    #

2. At UT Southwestern Medical Center in Dallas,it’s the president and his cronies that are making off with the benefts of the cash.At least the Florida state auditor caught up with them after a few years,in Texas , we notified the state auditor 3 years ago and he still has not acted.The only packing here is for the European trips the president takes with donor funds.He never played any sports…

   — Brent    Mar 17, 09:04 PM    #

3. What UCF did was illegal. Apparently, scams like this are OK for a school trying to be a big university. After all, that’s what the big boys do.

   Meanwhile, the fees and tuition are going up. The President is a true leader who operates in the spirit and vacuum of Florida quality education.

   These schools just seem to go from one impropriety or scandal to another and the public stays fleeced. The state refuses to provide oversight and accountability. They can’t it seems because they are all part of the deal.

   Welcome to Florida higher education.

   What a joke! A national joke that transcends Florida!

   — PoorStudent    Mar 17, 11:44 PM    #

4. Blogger needs to check facts. Student athletic fees never were restricted for capital projects.

   — WrongInfo    Mar 18, 08:02 AM    #

5. I am glad someone is on to the shady things going on at UCF. This is just the tip of the ice berg. Please keep digging. The funny thing is even all that extra money couldnt buy a win vs USF. You guys lost 64-12

   — flsportsfan83    Mar 18, 10:33 AM    #

6. wow flsportfan83 nobody cares about football here…the issue at hand is the money not football idiot.

   — steve    Mar 18, 12:25 PM    #

7. Why would UCF be lending money to other agencies even for its own indirect benefit? Deals like this seem to be very inappropriate for public colleges.

   Where do they get off taking public funds or student monies and pull off such a deal? Can I get a loan too or is it just an in-house favor?

   On top of this they raise salaries and tuition and then ask for more state funding. These people have it all over Bear Stearns and are probably deep into the subprime mortage industry. They like to emulate the business model.

   This is immoral and unethical if not outright illegal!

   — BT    Mar 18, 12:27 PM    #

8. hey, flsportsfan83, do you just sit around googling UCF all day, looking for a chance to sound like an idiot?

   every time I stumple upon anything UCF related online, you’ve already come through

   dude, you really need some help with this obsession

   — vexan    Mar 20, 10:41 PM    #

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