The $40 million scholarship fund proposal to assist the University of Central Florida (UCF) students in graduating will not be implemented after allegations of misspending were brought against the University.
The proposal has already been rejected by the group overseeing the state university system and the University has been asked to propose new ways in which the excess operating funds can be spent.
The UCF has been facing huge problems ever since its leaders admitted that they had spent or were planning to spend a sum amounting to $85 million. The amount was intended for operating expenses on new constructions, which is a violation of the state rules.
Misspending Of Funds:
The misspending at UCF lead to all Florida’s Public Universities having to provide details on how they planned to spend the residual sum from the amount set aside for operating expenses to the Board of Governors that oversees the university system there.
The first proposal submitted by UCF included allocating $40 million toward a new scholarship fund, the ‘Constellation Fund’.
However, this proposal was rejected by the Board, alluding to fears that the scholarship fund would simply act as a ‘plug’ for the money that had been misappropriated before.
Spending on Campus Projects:
Sydney Kitson, the Vice Chairman of the Board of Governors, stated that the scholarship proposal appeared to be a recompense for the misappropriated sum amounting to $38 million that was used in the construction of the Trevor Colbourn Hall.
The Board did, however, approve of UCF’s proposal to spend $20 million on a few small maintenance projects on campus.
First Observation Against Misspending:
The misspending in construction at UCF was first observed when the office of the state auditor general pointed out that operating funds were being set aside for the construction of Trevor Colbourn Hall.
Investigations were then conducted into the matter and the University discovered yet another misappropriated sum, bringing the total misappropriated sum to $85 million which the University later replaced with money from its other sources.
Approval of Student’s Aid and Budget:
The trustees have now instead approved a $16 million financial aid package for students on 13 March 2019, which will most likely be disbursed via the university’s existing scholarship and student financial aid programs.
The budget and finance committee of the Board of Governors will consider the new UCF proposal at the meeting scheduled for 28 March 2019.