University of Michigan officials say that a 2014 internal audit of its investment office, which controls a $10 billion endowment, reached several faulty conclusions. The university disputed the audit, which found more than a dozen problems with oversight of the endowment, arguing that the audit department, University Audits, didn’t have the proper expertise to conduct the audit. University of Michigan officials said they were bringing in outside help to review the office, but still hasn’t issued a full report. The Detroit Free Press has accused the university of stalling, and questioned university officials during a question and answer session last month.
“This review was part of the annual plan for University Audits. The conclusion of this work was delayed during the transition from one CFO to an interim and then to a new CFO. It also was delayed because of significant concerns with the accuracy of initial observations and how best to resolve misunderstandings and inaccuracies,” the University wrote in response to questions from Detroit Free Press. The university answered several questions on the audit review by stating that the observations in the report are inaccurate. It is unclear when a final report on oversight of the endowment will be issued.
