Dive Brief:
- A report from Texas State Auditor John Keel says the University of North Texas should pay back at least $75.6 million that it received from the state by manipulating the payroll for university employees.
- The excess funding was the result of a coordinated effort, and finance leaders at the university either should have known or did know that they were receiving more than they should, Keel reported.
- The payroll manipulation may have started in the 1970s, the Dallas Morning News reported.
Dive Insight:
The university used two methods to receive the excess state funding: by manipulating a state accounting system and by paying employees with state funds, even though they weren’t eligible for payment in that manner. Employees in budget, accounting, purchasing and payment, and payroll departments were all involved, and there was no attempt to cover up the practice. University of North Texas officials said they believed the amount the school will have to pay back will be lower after the auditor makes some adjustments. The university’s president, Neal Smatresk, who took office in February, said he hopes that state officials seek a fair resolution that doesn’t hurt students.