Auditor’s progress report shows improvement in incentives program and fiscal management for University of Missouri System

   

JEFFERSON CITY, Mo. – Missouri State Auditor Nicole Galloway and her office have continued looking into the work done by the University of Missouri System to address the findings of fiscal mismanagement uncovered in a 2017 audit.

In that initial report, issued in March, found hidden payments and incentives to top executives as well as what Galloway called irresponsible management in the UM System’s handling of MU Chancellor R. Bowen Loftin’s resignation.

Galloway, at the time, called it “personally troubling.”

University of Missouri System audit reveals more than $2 million in ‘hidden bonus pay’

The audit revealed “inappropriate bonus payments to top executives”, including incentive payments, luxury vehicle allowances and other forms of compensation that were not included in their published salaries.

The audit recommended a number of changes to the incentive pay program, as well as working to ensure that the compensation terms are in the best interest of the system and that vehicle allowances are more accurate.

“The audit findings last year showed a pattern of bonus pay to top staff without clear guidelines or performance metrics, as well as a highly lucrative contract for a former chancellor that contained no accountability to taxpayers,” Galloway said. “Our follow-up found that the incentive payment program has been eliminated, and the highly paid position created for the former chancellor has been eliminated. I’m pleased the university system has taken these steps toward more effective fiscal management. Once again, this report shows audits get results.”

In a follow-up report issued on Thursday, the Auditor’s Office found no incentive pay has been issued since March 10, 2017, and that the former chancellor is working as a professor at the Columbia campus, as was required under the original contract.

The report also found that the university system has stopped eight of the 15 vehicle allowances noted in the 2017 audit and is phasing out four administrators’ vehicle allowances as their contracts come up for renewal. Vehicle allowances will continue for five positions. 

You can read more from the progress report online here.

Benjamin Peters is a reporter for the Missouri Times and Missouri Times Magazine, and also produces the #MoLeg Podcast. He joined the Missouri Times in 2016 after working as a sports editor and TV news producer in mid-Missouri. Benjamin is a graduate of Missouri State University in Springfield. To contact Benjamin, email benjamin@themissouritimes.com or follow him on Twitter @BenjaminDPeters.