By Emma Murphy, Oklahoma Voice
OKLAHOMA CITY — Twelve Innovation Foundation employees were laid off by Oklahoma State University in the latest fallout of an internal audit that found legislatively appropriated funds were improperly sent to the foundation.
The university is not providing those employees severance, but they will remain employed through June 1, said Jeff Hopper, a spokesperson for OSU, in a statement on Monday.
“We are working with the employees impacted to identify open positions across the OSU system which fit their skill sets and career goals,” Hopper said. “Ultimately, the employees may choose whether to pursue these employment opportunities.”
Jim Hess, OSU’s interim president, announced last week that the university would discontinue funding for the foundation. A university spokesperson said the layoffs impacted foundation employees who worked in “shared services and facilities.”
Hess said in a message to students, faculty and staff announcing the closure that the university is “working closely with affected employees to provide transition support during this challenging time.”
Following the abrupt resignation of former OSU President Kayse Shrum in February, the university released an audit March 5 revealing $41 million in misappropriated legislatively appropriated funds during the time she was president.
The audit found $11.5 million of the funds were wrongly sent to the Innovation Foundation, which aims to expand OSU’s footprint in aerospace and advanced mobility, energy and agriculture. It found that the foundation was not financially viable and did not generate enough independent funding.
While the organization was a “crucial pillar” of Shrum’s strategic plan for the state’s second largest university, officials have not said the audit is the reason for Shrum’s departure and did not place blame on any specific individuals.
Shrum’s nine-sentence resignation letter did not reveal her reasons for leaving and did not mention the foundation.
The audit recommended the mismanaged funds be repaid to their intended source within the university. Hess and Chief Financial Officer Chris Kuwitzky will be responsible for implementing the recommendations of the audit.
Hess announced the university would no longer fund the Innovation Foundation, according to The O’Colly, the campus news outlet, which first reported the news.
