Apparently too much time has passed for the state to bother prosecuting those responsible for the illegal use of $2.6 million in Grambling State University facility support funds to invest in the stock market. The investments, according to a state audit of GSU, resulted in a loss of about $1 million.
Even though the audit report said the use of facility support funds for stock investments was clearly in violation of the law, Louisiana Inspector General Stephen Street has decided not to open a formal investigation.
“….(I)t appears that these stock purchases occurred between 2002 and 2004,” said Greg Lindsey, state audit director for the IG’s office. “Inspector General Street felt that these violations are too stale-dated and that full development as a criminal matter would be restricted by state and federal prescription periods. Therefore, after careful consideration, we have decided not to open a formal investigation.”
“We noted that various corrective actions were implemented by GSU, including transferring the stock instruments to a custody account,” Lindsey added in his letter to Louisiana Voice.
Taking into consideration GSU’s track record of repetitive financial accounting shortcomings over the past 40 years, we’re going to take a wait-and-see approach to those “corrective actions.”
Louisiana Voice 