LSU auditors are investigating if former Chancellor Sean O’Keefe exaggerated funds raised for the University, according to LSU System officials. Charles Zewe, System vice president for communications and external affairs, said no inference of wrongdoing should be assumed by the audit. “At this point, with a transition in leadership, it is important to know exactly where this campaign stands,” Zewe said. “This is a matter of clarifying what has gone on, what has taken place [and] what are the accurate numbers. That’s the point of this – to clarify where we stand and what has happened.” Although there is no set deadline, results of the audit may be released as early as this week, Zewe said. Zewe said after the audit is complete, the auditors and the System’s General Counsel Ray Lamonica will determine an appropriate course of action. The audit began “several weeks ago” when the System realized the amount of funds raised was an area needing clarification, Zewe said. Zewe said it is unclear at this point if the audit is investigating whether there is an overstatement of the total dollar value of accounts within the University’s comprehensive fund-raising campaign, Forever LSU, or if the audit is examining who should claim credit for bringing certain donations to the University. O’Keefe resigned as chancellor Jan 16. William Jenkins, former chancellor and current System president emeritus, assumed O’Keefe’s administrative duties as acting chancellor Feb. 1. The Daily Reveille obtained documents from the LSU System outlining 16 issues raised during the evaluations of O’Keefe begun under Jenkins and continued under current president John Lombardi. The issues raised are worded as questions. “No adverse inference is suggested by the fact alone that the issues are raised,” according to Lamonica. The main focus of the issues raised concern if enough progress was made in the Flagship Agenda, if co-workers were treated in “an unprofessional manner,” if O’Keefe spent too much time away from from campus tending to other commitments, if funds raised were accurately reported and if some of O’Keefe’s expenditures are considered “inappropriately lavish.” Documents show O’Keefe spent $857 on Dec. 9, 2007 at Commander’s Palace during a meal with his wife Laura, state Superintendent of Education Paul Pastorek and Pastorek’s wife, Kathy. They met to discuss kindergarten through 12th grade collaborations with the University and other areas of partnerships with higher education. On Jan. 4, 2008, O’Keefe spent nearly $800 during another meal at Commander’s Palace in New Orleans. O’Keefe dined with his wife, friend and LSU donor Bill Slaughter and Slaughter’s wife, Cristal. They met to discuss the Forever LSU campaign and the new business school building. During the 2007 Allstate Sugar Bowl, LSU spent $60,000 at O’Keefe’s discretion to house 42 spectators O’Keefe invited to watch the game for fundraising purposes. The suite cost $52,125 and 45 tickets – at face value – cost an additional $7,875. Questions considered during O’Keefe’s evaluations include:
– Was significant progress of the Flagship Agenda made in academic research, increasing the quality and quantity of students, generating income from intellectual property and gaining federal funds for projects and research?
– Did the treatment of high-level administrators in “an unprofessional manner” result in their departures?
– Was an inordinate amount of time spent away from campus tending to personally compensated engagements such as corporate boards?
– Were transactional and personnel matters repeatedly presented to the System and Board for approval when not fully-developed or appropriately justified?
– Were agreements made without authority concerning significant naming of entities and donations?
– Was there a failure to follow instructions during negotiations of major contracts?
– Was the supervision and participation in student and organization discipline matters handled appropriately?
– Was a $60,000 expenditure of University funds for a 2007 Sugar Bowl suite and tickets for O’Keefe and his invited guests inappropriate?
– Were expenses for meals and drinks inappropriately lavish?
– Were reimbursements for golf and meals appropriately justified?
– Was there an attempt to interfere with internal audits?
– Did O’Keefe cooperate with the Foundation to fully and accurately report funds raised for the Forever LSU campaign? In an e-mail, Lamonica said the issues raised during O’Keefe’s evaluations were released “in light of the public discussion by the Chancellor and his supporters, and the interest of the public understanding at least the scope of such an evaluation process – both formal and informal.”
—-Contact Nicholas Persac at [email protected]