Audit of UMBC Uncovers Questionable Credit Card Purchases, Tuition Lapses

This story has been updated to include a response from UMBC.

is proposing changes to how it does business after an audit revealed questionable corporate credit card expenditures and that several students had not been charged tuition or fees in 2011.

The audit was conducted for the period beginning Oct. 1 2008 and ending June 30, 2011 for the public research institution that had a total of 12,888 students enrolled as of fall 2010.

One result: two employees accused of improperly using university credit cards either resigned or had their employment terminated, the audit said.

"Obviously we take it very seriously," said UMBC spokeswoman Elyse Ashburn. "As soon as any of the findings were brought to our attention, we responded immediately, and in regards to the corporate charges, we did our own investigations."

Among the audit's findings, which were first reported by the Baltimore Sun:

• The university failed to have adequate controls to make sure all students were charged tuition and fees, resulting in some students not being billed and some receiving refunds.

• UMBC did not adequately monitor corporate credit card purchases, resulting in questionable purchases from two employees. One employee, according to the audit, purchased about $4,400 in gift cards with a UMBC purchasing card, a prohibited practice.

Following the audit’s finding, UMBC found other questionable purchases by both employees, and referred the issue to the Office of the Attorney General-Criminal Division, according to the audit.

Both employees had either resigned or been terminated, according to the audit.

In UMBC's response to the audit, Chancellor William E. Kirwan wrote that officials have identified all students who weren’t charged accurate tuition and fees, and have recouped the money “where applicable.”

University officials also said they would continue to review how tuition is charged and ensure accuracy.

In regard to improper university credit card spending, officials said in the audit response that they would ask managers to attend “refresher” training regarding purchasing card use. They have also created a new procedure to “enable early detection of questionable purchases.”

The full audit and the university’s response can be found on the website of the Office of Legislative Audits.