Audit Concludes That a University of Oregon Research Unit Manipulated Payroll

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Employees at the Institute of Neuroscience were given overtime and extra hours to evade mandatory furloughs and salary freezes.University of Oregon officials have replaced key staff and agreed to review and address payroll issues raised in an audit by the Secretary of State’s office.

“We cannot afford lax business practices in our system of higher education, particularly when skyrocketing tuition is making college unaffordable,” said Secretary of State Kate Brown.

“I strongly urge University of Oregon officials to ensure accountability.”In early 2013, UO officials asked Secretary of State auditors to review possible inappropriate payroll adjustments to employees at the Institute of Neuroscience after an internal review flagged problems. Auditors found multiple instances when overtime and extra hours were granted to circumvent mandatory furloughs and salary freezes.

The audit recommends that UO officials:

• Comply with state-mandated furlough directives.

• Determine the extent of compensation to employees for hours not worked and seek reimbursement.

• Strengthen payroll controls.

A copy of the audit is available online: www.sos.state.or.us/audits/

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