Audit Reveals $41 Million Mismanagement at Oklahoma State University

An internal audit of Oklahoma State University (OSU) has revealed significant mismanagement of $41 million in state appropriated funds, with findings indicating that these funds were improperly restricted and co-mingled with other resources. The audit, conducted after the unexpected resignation of President Kayse Shrum, outlines unauthorized transfers to the OSU Innovation Foundation and expenditures that did not align with specified purposes, including $11.5 million in questionable allocations. The report has raised concerns about violations of state laws and policies, posing financial and reputational risks to the institution. In response, OSU's new Interim President, Dr. Jim Hess, is reportedly implementing corrective actions to enhance financial transparency and accountability. The audit also pointed out that a larger sum of $55.5 million in legislative appropriations was not fully disclosed to the governing board, raising further governance issues. The OSU/A&M Board of Regents is expected to address these findings in upcoming meetings.