Audit Uncovers $1.7 Million Financial Mismanagement at University of South Carolina

Audit Reveals Financial Irregularities at University of South Carolina

Columbia, SC – A recent audit has uncovered some rather alarming findings regarding the University of South Carolina’s (USC) Office of Economic Engagement. After a thorough investigation spanning 26 months, the state’s Legislative Audit Council has presented a damning report detailing misspent funds, inconsistent budgeting, and questionable transactions. This all began at the request of a bipartisan group of lawmakers back in 2022 who believed it was time to shine a light on the financial practices of the university.

The Big Picture

The audit specifically focused on USC’s Office of Economic Engagement, along with its partnerships with the USC/Columbia Technology Incubator and the South Carolina Research Foundation. What did they find? Well, brace yourself! It turns out that USC’s Office of Economic Engagement mismanaged a staggering $1.7 million in grant money and may have violated state ethics codes. That’s not exactly the kind of news you want to hear about a public university!

Rolling in the Funds but Spending Wrong

During a time when USC received over $10 million in grant funding from 2018 to 2023, incredibly, the office lacked any formal grant administrator to keep tabs on spending. This means they were basically flying blind when it came to handling public funds. They ended up relying on support from other departments, like the College of Engineering and Computing, but clearly, something wasn’t right.

Some highlights from the audit included startling revelations about how the money was spent:

• $400,000 on marketing efforts, some of which ended up being used to promote the Office of Economic Engagement itself in 2023.
• $286,553 went towards salaries and benefits for eight employees who reportedly had no role in the grant.
• $237,500 was squandered on a computing systems membership that primarily benefited USC instead of the intended computer labs.
• They even bought $4,589 worth of Apple Watches for staff!

Extravagant Travel and Sporting Events

Things get even murkier when it comes to travel expenses. The audit disclosed that one employee was reimbursed for attending two galas and four sporting events between 2019 and 2023, including a trip to the Gator Bowl. USC justified these expenses, claiming they were crucial for outreach and networking. However, the very business figure they claimed hosted them during this visit denied attending the event altogether.

The Incubator’s Troubled History

What’s more, the USC/Columbia Technology Incubator had its share of troubles too. Despite aiming to assist local businesses, the incubator’s board of directors was criticized for a lack of oversight and a poor graduation rate for its member businesses. Late tax filings, missing information, and health & safety complaints from member businesses have created quite a chaotic picture.

USC Hits Back

USC officials, including President Michael Amiridis, have not taken the audit lightly. While they acknowledge some shortcomings, they are challenging several of the report’s findings. They believe many expenditures were entirely permissible and are already in the process of rolling out necessary changes, claiming they had already begun to correct issues even before the audit began.

A Commitment to Improvement

The university is pushing forward, determined to restore public confidence. Amiridis stated, “The important work of the Office of Economic Engagement in forging new business partnerships and encouraging innovation is essential to the University’s mission of serving the State.”

As USC grapples with these findings, it’s apparent that the road ahead will require transparency and accountability to reassure stakeholders. The community is watching closely to see how they will address these newly unearthed issues.