Follow-up to critical MU audit shows improvement

(From State Auditor Nicole Galloway)

State Auditor Nicole Galloway today issued a follow-up report looking at what steps the University of Missouri System Administration has taken to address findings of fiscal mismanagement contained in an audit released last year. The report found improvement since the March 2017 audit criticized the UM System for hidden payments and incentives to top executives; for the management of Chancellor R. Bowen Loftin's contract, after he resigned in 2015; and for excessive vehicle allowances for system executives.

The audit recommended making changes to the incentive pay program to ensure accountability and objective measurement criteria; taking steps to ensure compensation terms for administrators are in the best interest of the UM System, the universities and taxpayers; and ensuring that vehicle allowances are more accurate.

"The audit findings last year showed a pattern of bonus pay to top staff without clear guidelines or performance metrics, as well as a highly lucrative contract for a former chancellor that contained no accountability to taxpayers," Auditor Galloway said. "Our follow-up found that the incentive payment program has been eliminated, and the highly paid position created for the former chancellor has been eliminated. I'm pleased the university system has taken these steps toward more effective fiscal management. Once again, this report shows audits get results."

The follow-up report found that no incentive pay has been issued since March 10, 2017 and the former chancellor now works as a professor at the Columbia campus, as required under the original contract.

The report also found that the university system has stopped eight of the 15 vehicle allowances noted in the 2017 audit and is phasing out four administrators' vehicle allowances as their contracts come up for renewal. Vehicle allowances will continue for five positions.

A copy of the progress report is available online here.