The Orlando Sentinel reported: “Board of Governors Chair Ned Lautenbach sent a letter to all of the state’s university presidents and board chairs asking them to review funding sources for all projects approved since July 1, 2008.” The letter went out on September 19th.
University of Central Florida
The BOG took the action after then-Florida House of Representatives Speaker Richard Corcoran blasted UCF leaders for misusing $38M in Education & General dollars. UCF spent the money to build the new Trevor Colbourn Hall even though E&G dollars aren’t supposed to be used for construction projects.
“I am baffled by how the actions of one irresponsible officer’s effort at flouting the Legislature’s and state university system’s budget controls could result in a four-year-long unauthorized endeavor of this magnitude,” Corcoran wrote. “There are only two possibilities: that others within UCF were aware of and conspired in this misuse of public funds, or your administration lacks the necessary internal controls to manage its fiscal responsibilities.”
Corcoran asked the incoming House speaker to lead an investigation into the issue. Governor-elect Ron DeSantis has appointed Corcoran to serve as the next Florida commission of education.
The Trevor Colbourn Hall problem happened during the administration of former UCF President John Hitt. Hitt wasn’t forced to resign because of the misused money. The UCF Board of Trustees said “the issue was included in a Florida Auditor General preliminary finding, which was first discussed with the UCF administration in late August.” Hitt had already retired effective June 30, 2018. He announced his plan to retire back on October 24, 2017.
According to the Orlando Weekly: “Hitt, who earns an annual base salary of $516,000 as president, will be paid $300,000 in his emeritus role. The contract is for one year but can be renewed…” The only resignation that the UCF BOT says is tied to the Trevor Colbourn Hall problem is the exit of the former vice president for administration and finance.
An article in the Orlando Sentinel added that UCF “used $10 million intended for operating expenses on construction and improvements to existing buildings, on top of the $38 million that leaders admitted last week was misspent on the new Trevor Colbourn Hall. In addition, university leaders say they used nearly $3.8 million in operating funds on renovation projects that may have violated state rules.”
University of South Florida
The administration of USF President Judy Genshaft also used “unauthorized funds” for a construction project, according to a newspaper report.
The Tampa Bay Times reported: “The mix-up involves the $21.7 million Dr. Kiran C. Patel Center for Global Solutions, a research facility completed in 2010 on the USF Tampa campus. The review found that USF spent $6.4 million in unauthorized funds to complete the center, a problem the university blamed on a donor who failed to come through with promised contributions for the building.”
The article added: “The issue surfaced recently after the State University System's Board of Governors ordered all Florida universities to review their construction funding, USF's chief financial officer David Lechner said in a Nov. 2 letter to system chancellor Marshall Criser. When promised donations didn't pan out, USF wrongly used carryforward funds, or excess money leftover at the end of a budget period, to fund the center, he said.”
Genshaft announced her retirement on September 9th, ten days before the BOG launched its review of construction funding. She will leave on July 1, 2019.
Florida A&M University
The BOG also announced strict conditions on a resolution it approved for FAMU construction projects back in September. That was same meeting at which the Orlando Sentinel reported that: “Board of Governors members lambasted [UCF President Dale Whittaker]…saying the misuse of state funds could impact their ability to work with the Legislature on funding matters.”
The BOG concerns date back to the FAMU Division of Finance and Administration's mishandling of millions of dollars in construction money during the construction of Pharmacy Phase II which left the 72,000 sq ft new building with nearly 33,000 sq. ft of "shell space" that is unusable. FAMU broke ground on the building in 2010, but did not complete it until seven years later.
A recent audit by the Florida auditor general has also found problems in the management of the Center for Student Success (CASS) construction project at FAMU.
FAMU President Larry Robinson has a contract that goes to December 30, 2020 and can be renewed. He received a bonus and $57,750 bonus and $34,650 raise from the FAMU BOT last week.