Audit of School of Graduate Studies and Continuing Education complete

December 5, 2005

University of Wisconsin-Whitewater Chancellor Martha Saunders announced today the findings of an audit of the School of Graduate Studies and Continuing Education. The audit shows that school’s former dean, Lee Jones, failed to follow a number of state policies for travel and purchases and money spent in support of non-university events.

“In the spring of this year, the University of Wisconsin-Whitewater discovered some possible problems with the use of state and university purchasing card and travel policies.  UW-Whitewater began a routine audit of the School of Graduate Studies and Continuing Education dean’s office.  When the scope and complexity of the audit grew and for purposes of timeliness, UW-Whitewater asked the University of Wisconsin System to provide additional resources to help with the process,” Chancellor Saunders said.

“We appreciate the assistance that the System personnel provided.  UW-Whitewater has already taken steps to correct the problems that were raised in the audit and corrective procedures were put in place over the summer. They include:

All purchases made on procurement cards are being reviewed, monitored and approved by supervisors on a regular basis.

• UW-Whitewater has initiated an internal audit and review of institution procurement polices and procedures to ensure that the rules are in compliance with state requirements.
• UW-Whitewater has changed its procedures to ensure oversight of travel costs incurred on procurement cards is strengthened.  Currently, all travel-related purchases on a procurement card must be made with a designated Travel Procurement Card or personal liability Corporate Travel Card.  The receipts for travel related pro-card purchases must be attached to a Travel Expense Report (TER) that has detail for all expenses. The TER must be approved by the traveler’s supervisor and then forwarded to the Travel Office for review.  The traveler’s supervisor must also verify that a “Request to be Absent” was properly filed before travel took place.
• UW-Whitewater will continue to conduct administrative reviews and internal audits, similar to those that identified the irregularities in the School of Graduate Studies and Continuing Education, of procurement card activities for university departments and take appropriate corrective actions, if necessary.
• UW-Whitewater will conduct follow up discussions with deans and directors to clarify the issues related to the use of procurement cards and to explain the new procedures that will be followed to ensure compliance with policies and procedures.
• If additional cases of non-compliance are identified, follow up will include reimbursement of any inappropriate charges and/or disciplinary action where warranted.  Non-compliance may result in loss of university procurement card and/or travel privileges.

“As stewards of Wisconsin’s tax dollars provided to us we take seriously our responsibility to respond quickly on this issue. UW-Whitewater’s provost, Richard Telfer, reassigned Jones to full-time teaching on Friday. Jones is a tenured professor in the department of educational foundations and will teach a full schedule of courses during the spring semester. John Stone, the associate dean of the School of Graduate Studies and Continuing Education, will serve as interim dean until a permanent replacement can be appointed," Chancellor Saunders said.

UW System administrators were kept informed of the audit as it progressed. UW System President Kevin P. Reilly said, “The events at UW-Whitewater show that the UW System’s audit process works and that the administration of the University of Wisconsin-Whitewater identified where there were problems and have taken steps to address them.  Overall, the university’s stewardship of public dollars is sound and strong.  However, the internal review has identified the need to address business-process issues at the University of Wisconsin-Whitewater. I want to make sure that situations like this do not happen again, at Whitewater or elsewhere in the system."