After LSU System auditors discovered reporting discrepancies in fundraising accounts, the University is changing reporting methods used to account for Forever LSU’s progress. Raymond Lamonica, LSU System general counsel, said System auditors found the three entities raising money for the University’s comprehensive fundraising campaign – the LSU Alumni Association, Tiger Athletic Foundation and LSU Foundation – were using different means of reporting donations. Auditors began investigating the matter the first week of February to “know exactly where [Forever LSU] stands,” System Vice President for Communications and External Affairs Charles Zewe told The Daily Reveille on Feb. 6. “This is a matter of clarifying what has gone on, what has taken place [and] what are the accurate numbers.” Lamonica said the different reporting methods did not affect the current known progress of the Forever LSU campaign – $425 million has been raised, more than halfway to the $750 million goal for 2010. He said said the numbers reported by the three private foundations were “not incorrect,” but that a standardized method of recording contributions will now be used to make the Forever LSU numbers “more accurate.” “System auditors looked for the consistency in reporting,” Lamonica said. “And they were concerned, so they suggested switching to the same page. No audit was conducted. We have never conducted such an audit and have no reason to believe it is necessary.” Scott Madere, LSU Foundation public affairs director, told The Daily Reveille on Feb. 27 that since the organization is independently audited three times a year, there would be no need for an internal audit because the LSU Foundation knows where the campaign stands with finances and donations. He also said the “audit” was more of a “review.” The “audit” was started after the System released a list of 16 issues raised during the evaluations of former Chancellor Sean O’Keefe. The System released the list after O’Keefe resigned as chancellor Jan. 16. O’Keefe’s resignation came after he lost the support of System President John Lombardi and the Board of Supervisors. Amid speculation and secrecy surrounding the reasons for his departure, O’Keefe relinquished his administrative duties Feb. 1 to acting Chancellor William Jenkins. Lamonica said the conclusion of the System auditors’ report found no evidence of wrongdoing on behalf of any party. Although Lamonica said the issues raised imply no wrongdoing, questions considered in O’Keefe’s evaluation include if there was “an attempt to interfere with internal audits,” and if O’Keefe provided “appropriate cooperation with the foundation and fully accurate public reporting of the funds raised under the Forever LSU campaign.” But what was apparently an audit Zewe referred to as “more of an inquiry” on Feb. 19. Lamonica maintained that no audit took place, but he said System auditors were only taking a closer look at the reporting methods used. Though Zewe said the accounts were being further investigated to see how much money had been raised, it appears to be internal audit activity according to the Institute of Internal Auditors. The IIA Standards for the Professional Practice of Internal Auditing defines internal audit activity as “consulting services designed to add value and improve an organizations operations … by bringing a systematic disciplined approach to evaluate and improve … effectiveness.” While the auditors were looking into the matter, Zewe said he could not comment specifically on what was being investigated – whether there was an overstatement of the total dollar value in the accounts or who should claim credit for bringing in certain donations. “It’s just always a good idea to know how much money you have in the bank,” Zewe said. Lamonica said the three foundations will begin using the Council for Advancement and Support of Education’s Management and Reporting Standards.
—-Contact Nicholas Persac at [email protected]