What is The Innovation Foundation, and why are they at the center of an OSU audit?

The Innovation Foundation, Inc., formerly known as the Oklahoma State University Research Foundation, is at the center of a recently released audit detailing financial mismanagement at Oklahoma State University (OSU).

The foundation played a key role in handling state-appropriated funds, with auditors citing improper transfers and co-mingling of restricted funds.

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

By The Numbers: Breakdown of OSU Audit

Background and Mission

The Innovation Foundation is a separate legal entity that manages research initiatives, technology commercialization, and business partnerships tied to OSU. Previously known as the Oklahoma State University Research Foundation ii was rebranded to the Innovation Foundation in 2023.

It oversees programs such as the Oklahoma Aerospace Institute for Research and Education (OAIRE), the Human Performance and Nutrition Research Institute (HPNRI), and other research-driven initiatives.

According to the foundation, its mission is to translate OSU’s research into products and services while fostering partnerships with industry and regional stakeholders.

TIMELINE: What led to the OSU audit?

Audit Findings

An audit by the Office of Internal Audit revealed that OSU transferred $11.5 million in state-appropriated funds to the Innovation Foundation without a written contract approved by the OSU/A&M Board of Regents, violating 70 O.S. §4306(C) and Board policy.

These funds, which were restricted for specific educational and research programs, were instead used for the general operations of the foundation. The audit also states that the Innovation Foundation relied on state-appropriated funds for 96% of its operating costs.

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Leadership and Resignations

Following the release of the audit, significant leadership changes occurred. OSU President Kayse Shrum resigned in February 2025, just weeks before the audit’s publication. Elizabeth Pollard, CEO of the Innovation Foundation, also resigned in late February.

Pollard stated that after Shrum’s resignation, she felt her ability to affect change within OSU was no longer viable, leading to her decision to step down.

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Next Steps

The OSU/A&M Board of Regents is scheduled to meet again on Friday to discuss additional corrective measures.

The future of the Innovation Foundation remains under review as OSU works to restore financial accountability.