OSU Discontinues Funding for Innovation Foundation After $41 Million Mismanagement Audit

Oklahoma State University (OSU) has announced the discontinuation of funding for the OSU Innovation Foundation after an internal audit revealed $41 million in mismanaged funds, with significant portions being improperly transferred. The audit indicated that the foundation relied heavily on these misappropriated funds for 96% of its operating costs. Interim President Jim Hess stated that while the financial decisions were concerning, they were isolated and did not affect OSU's overall financial stability. The foundation's executive director has resigned, and the university plans to realign its transdisciplinary institutes under new leadership to enhance collaboration. Hess emphasized that the financial structure of the Innovation Foundation was not sustainable, and measures are being taken to support affected employees. The changes follow heightened scrutiny from the OSU/A&M Board of Regents, which had previously frozen funds amid complaints of mismanagement.