State releases report on Chadron State football violation

LINCOLN, Nebraska -- Nebraska State College System Chancellor Stan Carpenter announced today that the NSCS Board of Trustees has received a report from BKD, an independent accounting firm, which was retained to review possible violations that may have occurred in the Chadron State College football program.

Last month, the CSC administration self-reported concerns to the NCAA that violations may have occurred and requested that an independent review be conducted. The BKD report was provided to the Nebraska State Patrol, the Attorney General's Office, the State Auditor, and the Accountability and Disclosure Commission. The report was also provided to the NCAA.

According to the report, Chadron State Head Football Coach Bill O'Boyle opened private bank accounts outside the purview of the College and the Chadron State Foundation without the knowledge or consent of the College administration. Donations intended for the football program were deposited into those accounts. Subsequent expenditures from those accounts were not subject to the controls and oversight that are required by the College and Foundation. In addition, the report identifies expenditures that may constitute violations of NCAA rules. The report states that payments to "cash" totaling approximately $22,000 do not have supporting documentation; therefore, it is not possible to determine whether the funds were used for their purported purpose or if the funds were used to benefit football program staff personally.

"As a public institution and a member of the NCAA, the College is bound by rules which govern our financial operations and staff conduct," said Janie Park, President of Chadron State College. "It is incumbent upon all College employees to comply with those rules. Any behavior that circumvents or disregards those rules places our programs and the College's reputation at risk," she said.

"State law prohibits college employees from using public resources, property or funds for personal financial gain. The NSCS has policies and procedures in place to provide accountability in financial operations with that principle in mind," Chancellor Carpenter said.

"The College administration must be able to trust staff to conduct themselves professionally at all times while serving as role models and mentors," he said.

A full copy of the BKD report may be found at www.nscs.edu.

The Nebraska State College System serves nearly 9000 students through three geographically diverse institutions. Combined, the three Colleges offer more than 200 degree, certificate and pre-professional programs that are accessible on the campuses, via the Internet and in several locations throughout the state. With more than 250 credentialed faculty members and 50,000 successful graduates, the Nebraska State College System provides significant human and intellectual capital that contributes to the current and future strength of the State of Nebraska.