LITTLE ROCK Ark.—A Washington County prosecutor has asked Arkansas legislators to postpone their inquiry into overspending by the fundraising division of the University of Arkansas while his office interviews witnesses in connection with possible criminal offenses.
The Legislature’s wider-ranging hearings into the division’s deficit—and accounting and management by top university officials—will be postponed until November, The Arkansas Democrat-Gazette reported.
State Sen. Bryan King, co-chairman of the Legislative Joint Auditing Committee, which is examining auditors’ findings, says deputy prosecutor David Bercaw wanted more time to interview some of the people involved and lawmakers did not want to interfere.
“But there are still going to be questions and a desire to hear the other side of this story,” King said.
Bercaw, who is in charge of the investigation for Washington County prosecutor John Threet’s office, said he is interviewing witnesses.
Prosecutors and legislators are examining issues raised in a 48-page investigative report released Sept. 10 by the Legislative Audit Division and the University of Arkansas System’s internal audit section. Performed at the request of UA Chancellor G. David Gearhart, the report found $4.19 million in overspending by the University Advancement Division in fiscal 2012 and $2.14 million in 2011. Some of the 2011 deficit carried over into 2012’s total.
Auditors found deficits going back to at least 2008. The report said the problem involved escalating spending by the fundraising division even though revenue remained flat.
