ORLANDO, Fla. — Florida leaders are calling for more training and oversight for top university leaders in the wake of a funding investigation at UCF.

On Tuesday, a Florida House committee released the results of its six-month investigation into the misuse of education funds for construction at the school.

The 33-page report by the Florida House Public Integrity and Ethics Committee found UCF transferred funds from the school's education and general funds budget for use in construction projects, specifically the construction of a new Trevor Colbourn Hall. However, construction projects are supposed to be funded through the capital outlay budget.

The report detailed how UCF transferred $38 million in E&G carryforward funds for Colbourn Hall, first to renovate the building, then for a combination renovation and new facility project, and then finally to tear down the original building and build a new one. 

The report also showed that UCF transferred as much as $46.5 million for other projects over a period of several years. Those projects included:

  • Construction work for The Venue, a sports and entertainment facility
  • A Facilities Surplus Showroom
  • The expansion of the CREOL building for the College of Optics and Photonics
  • A band building

The report also found the school failed to promptly disclose any unspent transfers of education and general funds, and that the board of trustees was not adequately trained to know what to look for in terms of the misspent funds.

Meanwhile, the report also blamed the state Board of Governors, which governs the state's public universities, of not providing sufficient guidance to university staff, including a lack of written communications and guidance. The report also blames the BOG for not thoroughly reviewing reports that might have sparked questions before UCF misspent the funds. 

It also says the BOG inspector general did not have the resources to execute a "robust investigative role."

In the wake of the investigation, UCF fired four administration employees, though a lawyer for those employees say they are being used as scapegoats. The school also accepted the resignations of UCF President Dale Whittaker, Chief Financial Officer Bill Merck and Board of Trustees Chairman Marco Marchena. 

The House committee recommends UCF and the state Board of Governors go further.

The committee suggests a new system of checks and balances be put in place to prevent control of both information and authority to be put in the hands of only a few administrators.

That includes routine audits of budgets, fund composition reports and expenditures. 

The report also recommends better training for university trustees and school staff on financial responsibilities. 

Meanwhile, the Board of Governors should provide budget standards that are consistent with the other recommendations for universities, provide more clear guidance, and regularly review spending plans. The BOG should also thoroughly investigate complaints or reports of possible waste or mismanagement, and make it easier for whistleblowers to report information. 

 

INTERACTIVE: A Timeline of the UCF Construction Funding Scandal