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DALLAS (AP) — The University of North Texas should repay the state at least $75.6 million over the next 10 years, the state auditor's office said in a report released Thursday.
According to an investigation by the auditor's office, the university manipulated its payroll spending so it received extra money from the state over many years. Chancellor Lee Jackson of the University of North Texas system said he saw the report and the findings were accurate.
However, he believes the amount the university will have to repay will drop by millions. The university is conducting its own investigation.
The state auditor's office learned of potential problems with the university's financial reporting in 2012, when it received an anonymous complaint. It's recommending the Legislature require the university pay back the money.
"I believe Texas state officials will seek a thoughtful and fair resolution to this matter," university president Neal Smatresk told the Dallas Morning News (http://bit.ly/YbapMq ). "A fair resolution will ensure that there's no adverse impact on our students and our mission to help transform the state by providing an outstanding education here at UNT."
This spring, the University of North Texas System commissioned an independent audit, which found that the school received up to $83 million in excess state funds from 2004 to 2014.
The state auditor's investigation found the school obtained extra funds in two ways: by manipulating payroll spending and improperly paying employees with state funds.
Based on interviews with former university employees, the state auditor's report said the university's practice of receiving extra state funds may have gone back to the 1970s.
"Auditors did not identify any attempt by the university to conceal its activities or transactions," the report said. "However, university senior managers with fiscal responsibility should have known, or did know, that the university consistently exceeded its legislative appropriations."
The report also found that some state agencies failed in finding or preventing the university's financial misreporting and excess state funding.
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Information from: The Dallas Morning News, http://www.dallasnews.com
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