UW-Oshkosh Foundation scandal prompts changes for nonprofits
The financial troubles that have landed the University of Wisconsin-Oshkosh Foundation in Chapter 11 bankruptcy are leading to changes at similar nonprofit foundations associated with UW campuses.
Wisconsin Public Radio reports that the Legislative Audit Bureau has recommended more stringent accountability rules for the organizations. Officials say university campuses should have chancellors file annual financial statements and foundation reports should be independently reviewed by certified public accountants.
UW System spokeswoman Stephanie Marquis says the changes are meant to increase transparency.
The UW-Oshkosh Foundation is $14.5 million in debt following five development deals. The UW system has declined to fill the budget hole. Two former officials are facing civil lawsuits for alleged improper financial transactions.
Wisconsin's public university foundations are nonprofit organizations that are primarily funded through private donations and investments.