Excerpt from the WDTN
The Auditor of State released an audit Tuesday on Wright State Applied Research Corporation (WSARC), finding that it inappropriately payed a Centerville-based consulting group $1,333,648.
“I continue to have concerns about the system of checks and balances in place at Wright State University and its components,” Auditor of State Kieth Faber said. “These findings, and results of previous investigations, are strong indicators that previous school leaders should have had a much stronger system of controls in place to prevent mismanagement of funds.”
State auditors obtained copies of contracts and invoices associated with the Ron Wine Consulting Group LLC, and several instances of improper payment were noted.
WSARC approved 18 invoices for services provided by Ron Wine, totaling $461,198, but officials say that during this time WSARC did not enter into a formal contract with Wine that defined the scope of services, compensation, term, and termination criteria. Additionally, the invoices are said to lack sufficient detail and supporting documentation about the work performed.
Then-CEO of WSARC, Ryan Fendly, approved a $400,000 sub-grant agreement with Wine on May 31, 2015. The agreement was meant to compensate Wine for services applicable to the Defense Aerospace Graduate Studies Institute performed between October 1, 2012, and December 31, 2013.
The agreement expired, but the parties ended up extending it through April 30, 2015. However, the extension did not change the terms of the agreement that included the maximum fee, set at $400,000.
Fendley’s successor, Dennis Andersh, signed the agreement and wound up paying Wine a total of $1,132,500, which was $732,500 above the maximum fee allowed.
