Oklahoma State University (OSU) is facing scrutiny following the release of an internal audit today, March 6, 2025, by the Oklahoma A&M Board of Regents. The audit, conducted by the Office of Internal Audit, revealed that $41 million in state funds, part of a $55.5 million allocation for educational and research activities, were mismanaged.
Research suggests the funds were intended for the Oklahoma State University Medical Authority (OSUMA) but were handled improperly in several ways:
$11.5 million were transferred to the Innovation Foundation, an OSU-affiliated entity, which may not have authority to receive state funds.
$20.5 million were co-mingled with other funds, violating OSU policy and accounting standards.
$24 million were deposited into unrestricted auxiliary funds instead of restricted Education & General funds, potentially impermissible under state law.
$4 million were placed in restricted capital funds without specifying their intended purposes.
The evidence leans toward significant financial mismanagement, with some overlap in the categories, making exact totals complex. The audit report, released in response to open records requests, has sparked debate over the university's financial practices.
The audit's release comes shortly after the resignation of OSU President Kayse Shrum in February 2025. The university has not confirmed whether her departure is related to the audit, but the timing has fueled speculation.
Interim President Dr. Jim Hess Interim President Dr. Jim Hess has stated the issues are "concerning yet isolated" and do not impact OSU’s overall financial foundation, emphasizing the university's commitment to transparency and corrective action. Former President Shrum, however, maintains that "no money is missing" and she followed legal counsel during her tenure, adding to the controversy.
An unexpected detail is the role of the Innovation Foundation, previously known as the Oklahoma State University Research Foundation, which focuses on research commercialization.
While part of OSU, the audit questions its authority to receive state funds, highlighting potential legal and operational boundaries within university-affiliated entities.
This story is developing, and further updates will be provided as more information becomes available. For more details, visit the OSU Regents website.
