TIMELINE: What led to the OSU audit?

The recently released audit from the Office of Internal Audit at the Oklahoma Agricultural and Mechanical Colleges Board of Regents has revealed significant financial mismanagement of state-appropriated funds at Oklahoma State University. Here’s a timeline of key events leading up to and following the report’s release.

Editor's Note: These documents were obtained by a records request.

By The Numbers: Breakdown of OSU Audit

Timeline of Events:

2022

July 1, 2022: OSU begins receiving state-appropriated funds through the Oklahoma State University Medical Authority (OSUMA) for educational and research activities under Cooperative Agreements.

2023

Mid-2023: OSU executive leadership initiates the rebranding of the Oklahoma State University Research Foundation into the Innovation Foundation, Inc.

Late 2023: The Innovation Foundation receives $11.5 million in state funds from OSU without a required written contract approved by the OSU/A&M Board.

1. The audit report indicates that mismanagement of funds throughout 2023, including co-mingling of restricted and unrestricted funds, begins to take place during this time.

2024

July 2024: OSU-CHS Vice President for Administration and Finance also assumes the role of OSU Interim Senior Vice President for Administration and Finance, OSUMA CEO, and a Board Member of the Innovation Foundation, raising conflict of interest concerns.

October 2024: OSU’s external auditor identifies a significant deficiency in understating the institution’s restricted net position by $17 million due to improper handling of funds.

December 2024: The Office of Internal Audit begins its formal investigation into OSU’s handling of state-appropriated funds.

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2025

January 15, 2025: The audit’s financial transaction review concludes, covering funds allocated between July 1, 2022, and this date.

February 5, 2025: OSU President Kayse Shrum announces her resignation amid growing scrutiny. The CEO of the Innovation Foundation also resigns.

Related: Oklahoma State University President Dr. Kayse Shrum resigns; Acting President Named

Feb 7, 2025: Dr. Jim Hess is appointed as OSU’s interim president

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March 5, 2025: The Office of Internal Audit officially releases its findings, detailing mismanagement of $41 million in state-appropriated funds.

Next Steps

The OSU/A&M Board of Regents, alongside interim President Hess, has committed to addressing financial mismanagement concerns by implementing stricter oversight measures, ensuring transparency, and reimbursing misallocated funds. Further developments are expected as the university moves forward with these corrective actions.

The Board of Regents is scheduled to meet on Friday, where the audit findings and potential corrective measures are expected to be discussed.

Other related stories:

OSU names Interim President following Dr. Kayse Shrum’s sudden resignation

OSU Board of Regents names Dr. James Hess as interim president after Shrum’s resignation

Dr. Kayse Shrum resigns as OSU President, sparking mixed reactions across campus