Fiscal Failure at University of Baltimore

The University of Baltimore lost track of $350,000 in unused loan and scholarship checks, did not take steps to collect overdue tuition, and did not always verify that students were eligible for reduced in-state tuition, according to state auditors.

The report, released Monday by the Office of Legislative Audits, revealed ongoing financial control problems at the university. Four of the six findings came up in an audit of the university three years ago.

Peter Toran, the university’s vice president of planning and external affairs, said that they had been aware of some of the issues for some time.

“More importantly, we’ve already instituted changes to make some corrections,” he said.

While auditors studied the university, they found that 284 scholarship refunds and student loan checks worth about $350,000 had not been cashed by their recipients. Payment had not been stopped on the uncashed checks, and the university was not sure which lenders and scholarship programs the funds had come from.

Legislative Auditor Bruce Myers said this finding is unique to the University of Baltimore. University officials started invalidating uncashed checks and finding the origins of the money after the problem was pointed out to them.

Auditors also found that $1.1 million in funds from students was past due, and the university had taken no measures to ensure it got repaid. Accounts that are not paid 150 days from the end of the semester are supposed to be transferred to the state’s Central Collection Unit.

READ MORE …