Budget Deadline Has N.C. State Scurrying

UNC-system President Molly Broad has given N.C. State University officials 90 days to implement the state auditor's recommendations on budget flexibility or risk losing that financial option.

If N.C. State officials fail to meet the deadline, Broad will ask the Board of Governors to withdraw the school's budget flexibility option, which allows university administrators to reallocate unspent funding to meet their additional monetary needs.

Broad said the deadline stemmed from system policy requiring chancellors to enact measures from an auditor's report in the event of a material finding.

N.C. State Vice Chancellor George Worsley said school officials were already responding to the deadline.

"We're moving forward to implement the recommendations," Worsley said.

He said N.C. State officials would meet the 90-day deadline to tweak the school's financial guidelines.

The auditor's report, released Tuesday, investigated the N.C. State Public Safety Office and former director Ralph Harper for misuse of public funds.

The report stated there were more than $800,000 in questionable purchases and expenses - including a pickup truck, a flat-screen television and 11 laptop computers.

The auditor's report also recommended that the State Bureau of Investigation examine alleged tape recording of safety department employee phone calls.

Broad said there would be further investigations into the matter, resulting in requests for financial reimbursement regarding improper travel charges and several employees being asked to resign or fired. "A number of people will be separated from that university."

The report cited a need for tighter controls on funding such as removing allocation responsibility from department heads.

Broad said the BOG has already required that all monetary reallocations occur at least at the vice chancellor level.

She said N.C. State Chancellor Marye Anne Fox plans to review and approve every reallocation through her office to ensure it is appropriate.

"We're reminded again that no policy or legislation can ensure that people will behave with integrity or follow policy."

The State & National Editor can be reached at stntdesk@unc.edu.