University of Florida investigates use of funds for building projects
Whistleblower claims money improperly diverted from housing fund for rec building, Greek house parking lot
As the president of the University of Central Florida resigned this week in connection with misuse of state money for campus buildings, the University of Florida confirmed it has launched an internal investigation into the possible misuse of millions in public money.
UF officials sent a prepared statement Wednesday afternoon, but would not elaborate on the investigation’s length or scope.
“The University of Florida takes very seriously its role as a steward of public funds and a recipient of the public’s trust,” the statement reads. “Therefore, the university swiftly and aggressively addresses allegations of business practices that do not support university and/or state laws, regulations and policies.”
An anonymous whistleblower sent a complaint to the governor’s office as well as the Florida Department of Education. The whistleblower, using an anonymous email account, also sent the complaint to The Sun.
According to the complaint, Norbert Dunkel, then-UF’s associate vice president for auxiliary services, and Nancy Chrystal-Green, then-director of student activities and involvement, misused more than $3 million, to construct a $1.8 million building for the Center of Outdoor and Recreation Education and $1.3 million to clear 3 acres of woods to prepare three Greek housing lots.
Both Dunkel and Chrystal-Green were later promoted, Dunkel to associate vice president for student affairs, and Chrystal-Green to assistant vice president for student engagement.
The Sun last week filed seven public records requests asking for, among other things, emails sent and received by Dunkel and Chrystal-Green. This week, UF denied the requests, citing an open investigation.
Dunkel and Chrystal-Green both declined interview requests or to provide other comment to The Sun on Thursday.
Memos between Dunkel and Chrystal-Green were among those denied by UF officials on the grounds that they are part of the investigation.
A letter from the governor’s office said the complaint had been forwarded to UF’s Office of Internal Audit. The Department of Education referred the matter to the Florida Board of Governors, which oversees UF and other state universities.
“Consistent with UF’s standard practice with these types of allegations, UF administration has launched an immediate investigation that will examine these claims appropriately,” UF’s prepared statement read.
The investigation comes on the heels of UCF President Dale Whittaker resigning after investigations revealed the school used, or planned to use, $85 million in leftover operating funds on construction, in violation of state rules. Last September, state auditors discovered that UCF used funds intended for operating expenses toward construction of a new $38 million on-campus academic building.
UF internal documents shared with The Sun by the whistleblower detailed the projects on the Gainesville campus, both of which were authorized by Dunkel and Chrystal-Green and involved Department of Housing and Residence Education funds. UF on Thursday declined to review the documents for authentication.
An auxiliary fund accounts for most of the Department of Housing and Residence Education’s budget, according to the UF documents. Some of the money comes from the collection of dorm rents. The funds are pledged to repay debt from dorm construction.
The funds are for use in housing and housing maintenance, and spending for construction would have to be approved by the UF Board of Trustees, according to a state official.
Neither the CORE building nor the Greek house lots are connected to UF Housing’s mission, the whistleblower’s complaint contends.
There is no allegation that Dunkel or Chrystal-Green used any UF housing money for personal use.
For the CORE building, which was completed in 2017 and is used to store equipment used for student recreation, documents show eight scheduled payments of $244,000 from 2014 through July 2021.
For the Greek housing lots, a UF memo dated March 14, 2016, shows Dunkel and Chrystal-Green pledged a $1.3 million loan beginning in April 2016. Under the agreement, to repay the loan, any fraternity or sorority that used the space would be charged one-third of the construction cost (about $400,000) at the time the lease agreement with UF was executed.
Construction crews began clearing forest land for the Greek housing lots near Hume Hall in September 2016, less than five months after Dunkel and Chrystal-Green signed off on the agreement.
Dunkel was given the task of overseeing UF’s Department of Housing and Residence Education on an interim basis in September 2017 after its senior director, Azfar Mian, was arrested and five other housing officials placed on administrative leave. Mian was charged with embezzling $180,607 in university funds. The amount of money officials said had been embezzled swelled by another $470,000 when a second UF housing official, Stina Schoneck, associate financial services director, was arrested two months later following UF auditors’ discovery of a secret bank account. Both cases are still pending.
"As much as $85 million in state education and general fund money was improperly channeled into construction, including $38 million that went into development of the new Trevor Colbourn Hall that opened last summer; another $13.8 million was spread around on eight other construction projects at UCF; and budgeted another $32.7 million for other construction projects."
https://orlando-rising.com/ucf-cuts...ing-dale-whittaker-in-wake-of-funding-report/
"A widening financial scandal at the University of Central Florida, which may have cost a newly minted president his job, has raised deeper questions about whether a culture of ethical shortcuts and lapses in oversight took root during years of unbridled growth at the institution.
...
For the last two decades, the story of the University of Central Florida has been about more students and more buildings. Under John C. Hitt, who preceded Whittaker and led the university for more than a quarter century, Central Florida transformed from a midsize commuter campus into a behemoth public research university of 66,000 students.
The once-sleepy institution gobbled up territory in Orlando, added a medical school, and cultivated a zealous athletics department that has floated plans for a resort-style "recovery cove" where Division I athletes can glide down their own private lazy river."
https://www.chronicle.com/article/Spend-Build-Repeat/245740
""Florida Rep. Randy Fine actually suggested Wednesday afternoon that the University of Central Florida should be shut down for five to 10 years over the school's misuse of at least $38 million to construct a campus building."
https://www.orlandoweekly.com/Blogs...cf-should-be-shut-down-over-improper-spending
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