Deloitte & Touche Audit Finds No Wrongdoing
Allegations of fraud were unfounded
YPSILANTI – An internal audit, authorized by the Eastern Michigan University Board of Regents and conducted by the accounting firm of Deloitte & Touche, has found no wrongdoing related to the University House. Results of the audit were released today, Dec.16.
"We are extremely pleased that the audit has shown what we have always known--that no fraud was committed and no laws were broken in the construction and financing of University House," said Philip Incarnati, chairman of the EMU Board of Regents.
"University House is an outstanding investment that will offer long-term benefits in terms of fundraising and friend raising, especially since we’ve set a target to raise $4 million in cash this fiscal year. We need to leverage the facility and the talents of the president and first lady to build that base."
The EMU Board of Regents authorized the hiring of Deloitte & Touche, Sept. 15, 2003, in response to allegations of wrongdoing concerning the construction and financing of the project.
The firm examined 27 categories of documents and interviewed 33 people, including all members of the Board of Regents, the president, University administrators, University employees, representatives of the EMU Foundation, University House contractors and other contractors who submitted bids or declined to bid on the project. Among the major findings were:
"As a result of the audit, the Board is taking a hard look at the processes we follow," said Incarnati. "When, in the future, we approve a project, it's important to know the total cost of the project, both within the stated perimeters and beyond, and what are the sources of those funds. We'll be making changes to strengthen our system of checks and balances and to improve communication. University House is a great value for Eastern Michigan. We made a decision to move forward with this house and it's even more important today in order to position ourselves for the future."
For additional information regarding University House, go to www.emich.edu/univcomm/univhouseqanda.html.
Eastern Michigan University is a public, comprehensive university that offers programs in the arts, sciences and professions. EMU prepares students with the intellectual skills and practical experiences to succeed in their career and lives, and to be better citizens.
Editor's Note: Looking for an expert source for a story? Check out EMU's Eastern Experts online at www.emich.edu/univcomm/easternexperts.