Key Takeaways:
- Oklahoma State University mismanaged $41 million in state funds, according to an audit.
- Former President Kayse Shrum resigned after the findings were released.
- Funds were intended for education and research but were misallocated.
- $20.5 million was mixed into the general budget, making tracking difficult.
- $500,000 transferred to Cowboy Technologies, a for-profit division.
- $11.5 million went to the Innovation Foundation without proper approval.
- Conflict of interest arose with university officials managing both the university and the Foundation.
- The interim president agreed to return $11.5 million and assess the Foundation’s viability.
What Happened?
Oklahoma State University is facing scrutiny after an audit revealed significant mismanagement of $41 million in state funds. The money, meant for agricultural, medical, and engineering departments, was improperly allocated. This issue came to light just a month after President Kayse Shrum’s abrupt resignation.
Where Did the Money Go?
The audit showed that $20.5 million was blended into the university’s general spending, complicating tracking. Additionally, $500,000 was transferred to Cowboy Technologies, a for-profit branch of the university. Another $11.5 million was moved to the Innovation Foundation, which develops products from university research, without proper state approval.
Conflict of Interest?
The audit highlighted a potential conflict of interest. President Shrum also chaired the Innovation Foundation, whose CEO reported directly to her, creating blurred governance lines. These dual roles raised concerns about the proper use of funds.
What’s Next?
The interim president has agreed to return the $11.5 million to the university and evaluate the Foundation’s financial health. This step aims to restore transparency and ensure funds are used as intended.
In conclusion, OSU’s mismanagement of state funds not only lacks transparency but may violate laws, questioning its suitability for future funding. This case underscores the importance of accountability in public funds.