Statement by Chairman James R. Huffines on the Audit Results at UT Pan American

AUSTIN – James R. Huffines, chairman of The University of Texas System Board of Regents, issued the following statement today (July 11) regarding an audit investigation at The University of Texas - Pan American.

 

Statement from Chairman Huffines:

 

"University of Texas System auditors have presented to the Board of Regents the findings of a recent audit investigation of anonymous allegations concerning certain business practices at UT Pan American.  The audit addressed both the specific allegations as well as other transactions. Copies of the audit findings will be made available to the public and members of the news media.

 

"The Board takes issues related to the expenditure of public funds and the appropriate use of university resources very seriously and last year implemented a series of new policies and procedures to assure best practices are in place and that all expenses on behalf of the chancellor and presidents are audited each year.  UT System personnel are working diligently to refine auditing procedures following the first full year of audit results.

 

"As indicated in the audit report, while President Cárdenas consistently paid a monthly fee for services provided by the physical plant, the services provided were not properly valued.  A bill for the full value of the services was never presented to President Cárdenas.  The auditors determined that there was no intent on the president’s part to utilize university resources to her personal advantage and the expenditures were made in good faith to assist the president in carrying out her official duties on behalf of the university.

 

"We are pleased that President Cárdenas agrees with the audit conclusions and as such immediately reimbursed the university for the items identified by the auditors.  The total reimbursement was $7,068.57.

 

"After review of these issues, the Board has instructed the UT System Audit Office to work closely with President Cárdenas and Vice President for Business Affairs James Langabeer to immediately proceed with the development of clear guidelines and rigorous approval procedures to ensure that all expenses incurred by the university conform to current Regents’ Rules and Regulations.  Furthermore, UT Pan American should clearly communicate these policies and procedures to the department heads and other senior officials at the institution."