Controversy Erupts Over USC’s Mismanagement of $1.7 Million in Federal Funds

COLUMBIA, S.C. — Controversy Erupts Over USC’s Mismanagement of $1.7 Million in Federal Funds!

In a shocking turn of events, the University of South Carolina is making headlines for all the wrong reasons! A comprehensive report from the state’s Legislative Audit Council (LAC) has revealed some serious mismanagement of federal grant money, totaling an eye-popping $1.7 million! And if that wasn’t enough to raise a few eyebrows, it seems there may have also been some violations of state ethics codes!

The Findings: What Went Wrong?

After a two-year investigation, the audit disclosed a range of “questionable mismanagement of funds.” Sounds pretty alarming, doesn’t it? According to LAC Audit Manager John Kesslein, the General Assembly ordered this audit in 2022 to dive deep into the operations of the Office of Economic Engagement, the USC/Columbia technology incubator, and the South Carolina Research Foundation. This audit uncovered some surprising—and frankly disturbing—details.

Expenditures That Raise Questions

The audit report lists several peculiar purchases made with the federal grant money. There were expenses like unused computer labs for students and extravagant perks like fringe benefits for employees. But the one that really stands out? Apple Watches were bought for USC employees! Seriously, who thought it was wise to spend precious funds on gadgets while students were left in the dark with empty computer labs?

Kesslein shared that these expenditures were far from ideal; in fact, he stated, “It’s not that this sort of thing happens every day, and it doesn’t, but these are just things that we think the money could have been spent on better or differently.” Isn’t that the truth?

What Happens Next?

So, what’s going to happen to those shiny Apple Watches and the empty computer labs? Kesslein wasn’t sure, adding, “I don’t know what they are going to do with those. You’d have to ask the university what their plans are for that.” Sounds like a slippery slope where accountability has slipped away!

His greater concern? Making sure appropriate controls are applied to scrutinize transactions that didn’t quite add up. It’s all about accountability, after all.

USC Responds to the Audit

In light of these revelations, USC President Michael Amiridis released a statement asserting the university’s dedication to managing taxpayer funds responsibly. He mentioned, “The University of South Carolina is committed to prudent use of taxpayer funds, and welcomes good faith reviews of its practices.” It seems they want to be seen working to improve, but many will wonder if actions will truly follow the words.

What’s the Way Forward?

Now, the onus is on the university to accept the audit’s recommendations—including appointing a dedicated grant administrator. That sounds like a common-sense move, doesn’t it? It’s imperative that USC learns from this experience to avoid similar missteps in the future.

As the dust settles on this scandal, one thing is clear: mismanagement of funds can lead to more than just financial issues, it can damage the trust placed in institutions meant to serve the community. With all eyes on USC, let’s hope they take the right steps to rectify this situation.