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SALT LAKE CITY (AP) -- A legislative audit says Utah's higher education system should keep a close eye on how the public colleges and universities invest their endowment money.
The audit released yesterday found some institutions have a hard time keeping track of their money. In all the schools 10 public higher education institutions have more than $600 million invested endowments funds.
Endowment funds are privately donated, permanent funds meant to remain for the life of an institution. Only a portion of the funds annual increase can be used for scholarships, specific academic program or other needs.
State auditors looked at five public schools. Each showed some degree of noncompliance with Utah's Uniform Management of Institutional Funds Act -- or UMIFA -- including failing to track funds according to the rules.
Higher education commission Richard E. Kendall says the UMIFA rules are new and some schools may be unclear about the rules.
He says the law changed every aspect of institutional investment and that most schools have already corrected the problem.
Information from: Deseret Morning News, http://www.deseretnews.com
(Copyright 2007 by The Associated Press. All Rights Reserved.)