- The Utah Legislative Audit Subcommittee voted unanimously to audit Utah State University's governance and procurement process.
- Concerns include procurement policies, leadership oversight and spending by the president's office.
- USU said it welcomes the audit to address and remedy identified issues.
LOGAN — The Utah Legislative Audit Subcommittee on Tuesday voted unanimously to conduct an audit of Utah State University's governance and procurement process.
Prior to Tuesday's vote, the subcommittee asked the Auditor General's Office to do a "limited review" of spending by the USU President's Office to help understand the "level of risk" associated with the president's spending and whether any spending could be deemed excessive.
Former USU President Elizabeth Cantwell resigned and announced her new position as president of Washington State University in February. Alan L. Smith was named as the university's interim president shortly after and plans to return to his position as dean of the Emma Eccles Jones College of Education and Human Services when the new president is selected.
"As we did our survey, we found some indicators there that led us to believe that a full audit should be recommended," said Jesse Martinson, senior performance auditor at the Office of the Legislative Auditor General. "We believe that there are some areas that need examination: procurement, purchase orders, expenses, things of that nature, as well as, perhaps, the governance and the leadership and the overall structure and processes that govern that process."
The Auditor General's Office's limited review identified several risks that suggested a full audit could be needed.
It found issues with the design and implementation controls of procurement policies. For example, some executive staff committed the university to contracts ranging from $52,000 to $430,000 before completing the purchasing process.
Additionally, the review found that USU's board of trustees and senior leadership may not be providing sufficient oversight on key procurement and administrative matters.
The review also identified various leadership concerns.
"Over the past two years, purchase card transactions with the President's Office have significantly increased compared to the previous five years. These purchases may be concerning due to the nature of the purchases, the dollar amounts involved, and the level of oversight," said the review.
It also found issues with the amount spent on "presidential motor vehicle assets" in the last two years. The amount was nearly triple the amount for the five years prior.
"These findings, along with staff interviews, raise concerns about USU's governance, leadership, and culture of policy noncompliance. A complete audit would be needed to fully understand these risks and determine if there are any official audit findings," said the review.
USU board of trustees member Tessa White said the university will welcome the broader audit.
"There are areas that we are aware of and taking aggressive steps to remedy, and we hope that by the time that your audit is done, we will have a whole list of things completed that will give you greater confidence in the school. But you may find something, and we welcome it," White said.
