University of Wisconsin System spent $240K of federal COVID-19 relief money on unallowable expenses, audit finds

Kelly Meyerhofer, Milwaukee Journal Sentinel
·4 min read
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Students walk to classes on campus along State Street with the Madison state capitol in the background at the University of Wisconsin Madison on Wednesday, Oct. 23, 2019.

The University of Wisconsin System spent nearly $240,000 of federal COVID-19 relief money on expenses not allowed under federal criteria, a new nonpartisan state audit found.

The $239,200 in misspent funds identified by the Legislative Audit Bureau on Dec. 22 represent less than 1% of the $564 million that UW System received in federal money to help navigate through the pandemic.

UW System President Jay Rothman said in a written response to the agency that the audit's conclusions "demonstrate the UW System's commitment to fiscal stewardship, accountability and strong internal controls."

Auditors reviewed more than 100 transactions, with documentation showing typical reimbursements were for employee sick leave, distance learning equipment and personal protective equipment. But some purchases stood out. Among the transactions identified as out of compliance with federal spending guidelines were:

  • UW-Superior used $30,400 to offset lost revenue from alcohol sales at sports games and other events, and used $1,500 for a musical performance at a pre-semester summer event.

  • UW-La Crosse paid $54,000 for costs incurred before March 13, 2020; used $21,700 for billboard advertisements intended to recruit students; and used $28,400 for salary and other costs incurred by an employee to travel to high schools around the state in order to recruit new students.

  • UW-Stevens Point used $930 to show a film for entertainment purposes during a pre-semester student program.

  • UW-Platteville used $1,000 for bowling and movie theater expenses for a pre-semester summer program, and used $23,500 for creating online tours of its campuses for recruiting purposes.

The audit also found some campuses did not post spending reports to their websites as required by law, posted incorrect information in some reports or posted reports months later.

Rothman said the UW System anticipates removing $215,700 in expenses and seeking reimbursement for other allowable expenses to ensure all of its federal relief funding is spent. But he disputed one of the transactions identified by the audit as "unallowable" and said officials will follow up with the appropriate federal agency to address the allowability of a $23,500 charge by UW-Platteville for online tours.

Rothman also challenged the audit's recommendation that UW System should have provided written guidance to campuses about allowable uses of federal relief money. He said the federal government and national professional organizations produced guidance that sufficed.

The audit of UW System's spending was part of a broader request by the Republican-controlled Joint Legislative Audit Committee to evaluate how state agencies spent federal funds received because of the public health emergency.

Sen. Rob Cowles, R-Green Bay, who co-chairs the audit committee, said he was "relieved" to see such a small percentage of transactions as unallowable. But he encouraged UW leaders to look at how the funds were allocated to campuses because he believed the audit shows a "consistent lack of funds" headed to his home campus of UW-Green Bay despite the school being one of the few that hasn't suffered enrollment decline.

UW-Green Bay received roughly $24 million, or 4% of the UW System's federal money, the audit shows. The campus likely received some additional money from UW System Administration, which received $3 million of its own to allocate to campuses, but this amount isn't broken down by campus in the report.

UW-Green Bay's fall 2022 enrollment accounts for 6% of the UW System as a whole.

"We need to ensure that out state campuses are given the attention they deserve when stacked up against major institutions in the southern part of the state," Cowles said in a statement.

UW-Madison received about 20% of the UW System's federal money while enrolling about 30% of the UW System's students, according to the audit and enrollment reports. UW-Milwaukee got nearly 18% of the money and enrolls about 14% of the UW System's students.

Federal money was awarded to universities based on formulas developed by the U.S. Education Department that considered factors such as overall enrollment and the number of low-income students a campus serves.

Contact Kelly Meyerhofer at kmeyerhofer@gannett.com. Follow her on Twitter at @KellyMeyerhofer.

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This article originally appeared on Milwaukee Journal Sentinel: Audit: University of Wisconsin misspent 1% of COVID-19 relief money