UCF Athletic Association under scrutiny for diverting funds
Financial issues coming home to roost for UCF Athletics as audit report uncovers millions in audit findings. Most peculiar are the loans to the UCF Athletic Association with no stipulated payback schedule or requirement and nearly $50 million in student-athletic fees diverted:
UCF Student Newspaper, Central Florida Future - March 17, 2008:
- UCF mishandled several million dollars in funds and is spending more money than it should, according to a recent state audit.
- Several findings involved the university assessing fees and transferring funds without having legal authority for its actions. According to the audit, the university loaned $7.4 million to the UCF Athletics Association Inc. in violation of Florida statutes. There is not yet a plan as to how that money will be paid back.
- The university also transferred about $15 million to the association and the University of Central Florida Foundation, the audit states.
The Chronicle of Higher Education - March 17, 2008:
- 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 Orlando Sentinel - March 26, 2008
- State auditors criticized UCF for its unusual practice of lending money to the UCF Athletics Association, a 4-year-old organization that does not fall under the requirements of Florida’s sweeping open-records law. Auditors found the university had no repayment plan for the loans, which amounted to $9.5 million.
- Auditors also took the school to task for diverting athletics fees, which students are required to pay, directly to the association without having an adequate way to monitor how the money was spent. Students at UCF pay an athletics fee of $11.72 per credit hour.
- Those payments amounted to about $14 million last year, or nearly half of UCF’s entire budget for athletics. UCF gave the association about $49 million in student-athletics fees between the 2003-04 and 2006-07 fiscal years, according to the audit.
Sneaky.