Remember last month’s somewhat incredible story about fired Kansas State football coach Ron Prince’s double-secret $3.2 million buyout agreement? It raised a few eyebrows but mostly resulted in a couple chuckles at the expense of the supposedly rogue former athletic director who inked the deal, and that was it. The university claimed that it was a one-off bizarro agreement, and everyone went back to ignoring the ag school in the middle of the Sunflower State.
(KSU Vice-Chancellor for Financial Affairs, Slappy McEnron)
Today, however, all hell is breaking loose out in the Little Apple (that’s Manhattan, Kansas, if you’re unfamiliar with the hip Kansas lingo) with the release of a confidential university audit performed over recent months and just made public in the past day or two. As it turns out, Ron Prince’s little side bet with former AD Bob Krause is just business as usual for a university that possibly committed some serious financial fraud.
The KANSAS CITY STAR has done a great job of combing through the entire audit report and picking out the juicy details:
The 34-page report details a $2.4 million shortfall in the university foundation’s scholarship fund in 2007. It also found questionable spending on fees, travel and fringe benefits, plus a $500,000 loan from the athletic department to Weiser in 2008 that he was not required to “justify or explain.”
Thirteen payments totaling $845,000 to Snyder, Weiser, Krause and others had no supporting documentation, auditors said.
“Snyder” is of course legendary former-and-current KSU football coach Bill Snyder, who in his brief retirement allegedly had access to $900,000 in athletics funds at his disposal - tax free. Allegedly, of course, because again - THERE IS NO SUPPORTING DOCUMENTATION. What the hell? Former university president Jon Wefald played dumb about the whole thing, once again throwing his former protege and colleage Krause under the proverbial Catbacker bus:
“He did do a lot of good,” Wefald said. “But Bob had too much to do. I probably delegated too much authority to him. I wouldn’t do that again.”
Exactly how having “too much to do” translates into a complicated web of financial transactions to shady shell corporations has yet to be explained. It’s safe to say we haven’t heard the end of this story, but expect an invitation for KSU to join the SEC any day now.
Kansas State: Where Amazing Happens…