S.C. Watchdog Warns College on Moving Money to Foundations

South Carolina’s inspector general is calling on South Carolina State University to cease diverting rebates from contractors to a pair of school-affiliated nonprofits, which have received $2.3-million in such payments in recent years, writes The State of Columbia, S.C.

In a report issued Tuesday, Inspector General Pat Maley termed the payments inappropriate because the auxiliary groups operate without legislative or public oversight. He said rebates from food-service, maintenance, and other vendors should directly benefit the university, which is struggling with a $13.6-million deficit.

About a fifth of $11.1-million South Carolina State received in rebates from 2010 to 2013 went to the S.C. State University Foundation, which funds scholarships, and the S.C. State University Advancement Foundation, which supplements administrative salaries. In a statement, the school said it agreed with the report and “will apply best practices to enhance transparency and accountability.”