Regents to release audit of accounts controlled or accessible to FUPJW:

[BeaumontCat1%]

We obtained a file memo dated July 28, 2005 from Ms. Christy Scott which memorialized one such payment to Mr. Weiser’s personal corporation
and stated “For confidentiality reasons, the check will be written from the Imprest account…” Our analysis
of Mr. Weiser’s compensation showed that the amount paid represented payments due him under his 2005
contract and it is unclear why this particular payment required confidentiality, or from whom.

I'm no tax lawyer, but wouldn't this be for purposes of money laundering/tax evasion?
 

My bet is that it has more to do with avoiding mandatory open-records disclosures.  Weiser and Krause didn't want the press (and KSU donors) knowing how badly they were being fleeced by a third-rate AD.  I think the tax evasion was an unintentional F up, because they really had no clue what they were doing from a legal or tax perspective.  And apparently they never consulted the Univeristy Counsel's office, or the University Counsel is the biggest idiot of them all.

Their biggest problem seems to be that they were trying to do some pretty complicated business transactions, but had no idea how to do it right, or even how to properly document it so it looked like they were doing it right.  They needed Meyer Lansky doing the books, and instead they had Kevin from The Office.

[Brewcrew]

 

[ThomasCo]

 First post, long time reader. No matter where you go to school this is wrong.
 Talk about lack of institutional control! This is our tax money at work! This is BS!

http://www.kansascity.com/842/story/1262539.html

[steve dave]

The following fringe benefits were also noted: country club membership,founder privilege at Colbert Hills, the use of football facilities for football camps, football suite as long as he lives in the Manhattan, Kansas area, home football game tickets, home basketball game tickets, two courtesy
vehicles, undergraduate education expenses for his daughters, and a guaranteed 5-year contract extension as
Associate Athletics Director for his son after Coach Snyder’s departure.

You know what?

frack you Snyder.

frack your daughter's free undergrad education despite your ridic salary.
frack your Fredo ass free-riding son.
frack your fracking name on OUR fracking stadium.
Why don't we add the frackING ENTIRE EQUESTRIAN PROGRAM AS A GODDAMN frackING FRINGE BENEFIT?  WHAT WOULD THE TOTALS BE APPROACHING THEN?

We are increasing tuition rates.  We are increasing student fees.  We are forcing professors to go on furlough.  We are closing down offices and departments throughout campus during summer months and BOB KRAUSE is receiving preferred stock options, excess payments to his LLC and yanking random funds from other ACADEMIC SIDE INSTITUTIONAL FUNDS to add to his fracking "Discretionary SLUSH FUND"

frack YOU ALL!

I'm going to go ahead and Quote This For Mother F^cking Truth. 

[catzacker]

The following fringe benefits were also noted: country club membership,founder privilege at Colbert Hills, the use of football facilities for football camps, football suite as long as he lives in the Manhattan, Kansas area, home football game tickets, home basketball game tickets, two courtesy
vehicles, undergraduate education expenses for his daughters, and a guaranteed 5-year contract extension as
Associate Athletics Director for his son after Coach Snyder’s departure.

You know what?

frack you Snyder.

frack your daughter's free undergrad education despite your ridic salary.
frack your Fredo ass free-riding son.
frack your fracking name on OUR fracking stadium.
Why don't we add the frackING ENTIRE EQUESTRIAN PROGRAM AS A GODDAMN frackING FRINGE BENEFIT?  WHAT WOULD THE TOTALS BE APPROACHING THEN?

We are increasing tuition rates.  We are increasing student fees.  We are forcing professors to go on furlough.  We are closing down offices and departments throughout campus during summer months and BOB KRAUSE is receiving preferred stock options, excess payments to his LLC and yanking random funds from other ACADEMIC SIDE INSTITUTIONAL FUNDS to add to his fracking "Discretionary SLUSH FUND"

frack YOU ALL!

I'm going to go ahead and Quote This For Mother F^cking Truth. 

Yep. Bill looks like a dirty, shady old man from that report.  Not the f'ing saint that other site makes him out to be.

[sonofdaxjones]

Before we throw OB too far under the bus, it could be that OB was having part of his contracted pay deferred so there wouldn't be budgetary issues in a particular year.   I'd have to back and look, but in the years that he had the money deferred from the late 1990's early 00's, was a time when KSU athletics wasn't nearly as profitable as it became a few years later.   So it's possible that OB was actually helping KSU athletics out in some regards.   

I am also still not totally convinced that the lump sum payments to the various individual corporations are really that big a deal on the KSU athletics side of the equation.  That's a hand slap deal at best IMO.  Possibly a huge deal for those individuals though, depending on how their little LLC's filed their taxes. 

But back to my old pal Timmy Weiser.  Okay Timmy Weiser defenders . . . explain to me Timmy Weiser asking KSU athletics to cut him a check and post dating it with the express purpose of avoiding taxes, explain to me the current AD arranging for himself a $500K loan from athletic department funds . . . scum, scum, scum. 

Back to OB . . . I don't see any big deal with the fringe benefits of most of his contract, albeit why the F does K-State athletics give free rides to head coaches kids at KSU??  Even if tuition is going up, it's not like a guy making $1.8 million a year can't afford instate tuition at K-State. 

But the real kicker . . . a guaranteed 5 year contract for Sean Snyder upon OB's exit??  Seriously . . . WTF??   

[steve dave]

But the real kicker . . . a guaranteed 5 year contract for Sean Snyder upon OB's exit??  Seriously . . . WTF??   

This was the nail in the coffin for me.  It is well known that Sean is absolutely useless. 

[CaptainCrap]

•The Kansas State University Foundation, which provides funds for scholarships, had a $2.4 million deficit in 2007. The athletic department eventually replaced part of the shortfall.

“We questioned the athletics department’s responsibility for involvement in this transaction and were told that as the athletics department fell under the purview of Mr. Krause, Mr. Krause elected to solve the issue in this manner and that the athletics department clearly did not have any responsibility for the payments. Per President Wefald, this arrangement was negotiated with his knowledge and approval,” according to the audit.

“He did do a lot of good,” Wefald said. “But Bob had too much to do. I probably delegated too much authority to him. I wouldn’t do that again.”

Yeah, thats the problem Jon. Bob had too much to do. It isn't that he is ethically questionable or motivated by personal gain in anything he does, its that he was too busy. 

[LimestoneOutcropping]

Krause pretty much has to move from the state now, right?

One of the real kickers here is this is a land grant state school, not Stanford or Harvard who have billion $ endowments.  These dicks were stealing from a little old lady.

[KSt8er]

Me thinks some of you are forgetting that KSU would not be in a BCS conference, and it is easily plausible they'd be struggling to even have a front door without Bill Snyder.  Whatever his take in perks he's provided millions above that to KSU.   Hell, my kids get free undergrad and I don't provide diddly by comparison, as do many children of faculty across this country. 

[catzacker]

But the real kicker . . . a guaranteed 5 year contract for Sean Snyder upon OB's exit??  Seriously . . . WTF??  

This was the nail in the coffin for me.  It is well known that Sean is absolutely useless.  

this is basically what I was referring to.  

[catzacker]

Krause pretty much has to move from the state now, right?

One of the real kickers here is this is a land grant state school, not Stanford or Harvard who have billion $ endowments.  These dicks were stealing from a little old lady.

bob and jon should just retire to together.  get a nice little condo in florida and just live their lives. but never, ever step foot in manhattan.  although I would like to see jon or bob have the sac to come back to a ksu basketball or football game, have the camera pan to them and then just listen to the boo's...would be incredible. 

[The1BigWillie]

As an accounting grad I can't help but wonder how many instructors all over the country will be using this report in their Auditing classes.  It's just filled with classic example after classic example of lack of controls from top to bottom.  My old auditing professor will likely stroke out witha hotgasm after reading this report.

[Kat Kid]

Me thinks some of you are forgetting that KSU would not be in a BCS conference, and it is easily plausible they'd be struggling to even have a front door without Bill Snyder.  Whatever his take in perks he's provided millions above that to KSU.   Hell, my kids get free undergrad and I don't provide diddly by comparison, as do many children of faculty across this country. 

Yeah.  You know why K-State doesn't provide free tuition for undergrads of faculty/staff?  BECAUSE KSU IS &@#%ING POOR!  OUR ENDOWMENT SUCKS!

So why again of all people should Bill Snyder get free education for his daughter when professors/faculty get 1 credit hour/semester AND THEY DIDN'T GET THAT UNTIL LIKE 2004-5!

Next time you see a Kansas State janitor, tell them that if their kid works reeeeallly hard they may get a partial academic scholarship from Kansas State and can get some financial aid (assuming good ol Krause didn't absentmindedly forget to carry a 0 on the Foundation statements) but that Bill Snyder who is a multi-millionaire gets his daughter's tuition waived with the stroke of a pen, a smile, a chuckle and a handshake.

Oh, I almost forgot!  The janitor's kid also would get 1 FREE CREDIT HOUR/SEMESTER!  NEVERMIND!  TOTALLY THE SAME!

[catzacker]

i don't necessarily care about the free tuition, it's more about showing (through that report) that bill isn't the goddamn saint that he's made out to be.

and jfc, those people that say we don't have money for this or that....no sh*t, when we're wasting it on paying f'ing Bob Krause "overload" money.   i mean, wtf is "overload" money....you mean some guy getting paid sh*tloads of money works long hours?  put him on hourly then.

[steve dave]

Me thinks some of you are forgetting that KSU would not be in a BCS conference, and it is easily plausible they'd be struggling to even have a front door without Bill Snyder.  Whatever his take in perks he's provided millions above that to KSU.   Hell, my kids get free undergrad and I don't provide diddly by comparison, as do many children of faculty across this country. 

 

[Kat Kid]

i don't necessarily care about the free tuition, it's more about showing (through that report) that bill isn't the goddamn saint that he's made out to be.

and jfc, those people that say we don't have money for this or that....no sh*t, when we're wasting it on paying f'ing Bob Krause "overload" money.   i mean, wtf is "overload" money....you mean some guy getting paid sh*tloads of money works long hours?  put him on hourly then.

I agree.  I just find it so petty and typical.  Especially when we get sold on this "putting KSU first" b.s.  I have no doubt that Snyder worked his ass off, was successful and probably even helped out the AD at times with his deferred compensation, but jfc.  He can't afford KSU in-state tuition for his daughter?  It is just so outrageous to me considering the numerous other perks that he receives.  I mean does our rowing coach get free tuition for their kids?  I'm pretty sure they aren't making over $1 million/yr.  What about each dept. head on campus or dean on campus (most making 6 figures)?

It is the enormous things like the secret Timmy deals, the secret Prince buyout, the constant slop into the slush funds that build anger, the 2.4 million oops on scholarship #'s, the sick in-bred relationship and out-of-control conflict of interest inherent in every single movement Bob Krause made during his time at Kansas State. 

But for whatever reason it is the small things (the $20,000 we are paying for absolutely no reason for the golf course, the free tuition and Sean Snyder Fredo-5) that just boil me up.

[GoldbrickGangBoss]

What about that whole 'using the ksu jet' thing a few years ago?

[LimestoneOutcropping]

i don't necessarily care about the free tuition, it's more about showing (through that report) that bill isn't the goddamn saint that he's made out to be.

and jfc, those people that say we don't have money for this or that....no sh*t, when we're wasting it on paying f'ing Bob Krause "overload" money.   i mean, wtf is "overload" money....you mean some guy getting paid sh*tloads of money works long hours?  put him on hourly then.

Overload is just them stealing from a public university to enrich themselves.  No different then Hank Greenberg using AIG as his personal checking account.  I suppose technically it isn't theft but it's repugnant for people who professed to have the University's best interests at heart.  I wonder how many donors who wrote large checks would have made the check out to Bob Krause or Tim Weiser personally.  Because ultimately that's who was taking the money.

&@#%ing crooks should run out of town now.  Weefs needs to move in the dead of night like the Baltimore Colts.  Want to bet he takes the light bulbs and copper wiring out of the President's residence when he leaves?

[Kansas Seminole]

By Scott Rothschild

June 19, 2009

An analysis of several high-dollar financial accounts during the administration of retiring Kansas State University president Jon Wefald found numerous instances of questionable transactions.

In fact, auditors said they couldn’t get all the information they requested — including supporting documentation for 13 selected cash disbursements by the Athletics Department worth $845,000.
Regents audit of K-State financial practices ( .PDF )

  The report also recommended that documents detailing newly-rehired KSU football coach Bill Snyder’s contract, reported at $1.85 million, be “put through a financial as well as legal review to make sure that the Athletic Department is in compliance with all appropriate accounting and tax laws with regard to the payment of Mr. Snyder’s compensation.”
The report was conducted for the Kansas Board of Regents by auditing firm Grant Thornton. It was done to assist the new administration at KSU, the regents said.

The report focused on nonstate-funded accounts, including the Kansas State University Alumni Association, Intercollegiate Athletics Association (Athletics Department), the National Institute for Strategic Technology Acquisition and Commercialization, the Kansas State University Golf Course Management and Research Foundation and discretionary funds for Wefald and Bob Krause, the former vice president of Institutional Advancement.

The report said that Wefald delegated much of the authority and oversight of the various entities to Krause.

The report said transactions between the funds were sometimes blurred when they should have been treated as separate legal entities. “Our report details numerous instances where transactions between the various entities did not meet this standard,” the report said.

It said that conflicts are inherent in the structure of the National Institute for Strategic Technology Acquisition and Commercialization.

The report also focused on a $500,000 loan approved by Krause between the Athletics Department and former KSU Athletic Director Tim Weiser. The loan agreement indicated that the borrower didn’t have to justify or explain the purpose of the loan and that it should be approved by the lender making a written request for the loan. “These are not standard clauses in even the most informal of lending agreements,” the report said. The loan was paid back on July 14, 2008, from funds the Athletics Department owed Weiser under his separation agreement, the report said.

The regents have requested that KSU’s new president, Kirk Schulz, report in October on what corrective actions are being taken in response to the report.

[geezer]

I take no joy from the Cats current difficulties.
It's damned awful abuse of funds by people who were handsomely compensated to spend the funds wisely.
Unbelievable.

[Kansas Seminole]

Tried posting this earlier but seems to be gone? I didn't get a reason, so I will post it again..




Auditor’s report shows questionable transactions at K-State
By Scott Rothschild

June 19, 2009

An analysis of several high-dollar financial accounts during the administration of retiring Kansas State University president Jon Wefald found numerous instances of questionable transactions.

In fact, auditors said they couldn’t get all the information they requested — including supporting documentation for 13 selected cash disbursements by the Athletics Department worth $845,000.

Regents audit of K-State financial practices ( .PDF )

  The report also recommended that documents detailing newly-rehired KSU football coach Bill Snyder’s contract, reported at $1.85 million, be “put through a financial as well as legal review to make sure that the Athletic Department is in compliance with all appropriate accounting and tax laws with regard to the payment of Mr. Snyder’s compensation.”
The report was conducted for the Kansas Board of Regents by auditing firm Grant Thornton. It was done to assist the new administration at KSU, the regents said.

The report focused on nonstate-funded accounts, including the Kansas State University Alumni Association, Intercollegiate Athletics Association (Athletics Department), the National Institute for Strategic Technology Acquisition and Commercialization, the Kansas State University Golf Course Management and Research Foundation and discretionary funds for Wefald and Bob Krause, the former vice president of Institutional Advancement.

The report said that Wefald delegated much of the authority and oversight of the various entities to Krause.

The report said transactions between the funds were sometimes blurred when they should have been treated as separate legal entities. “Our report details numerous instances where transactions between the various entities did not meet this standard,” the report said.

It said that conflicts are inherent in the structure of the National Institute for Strategic Technology Acquisition and Commercialization.

The report also focused on a $500,000 loan approved by Krause between the Athletics Department and former KSU Athletic Director Tim Weiser. The loan agreement indicated that the borrower didn’t have to justify or explain the purpose of the loan and that it should be approved by the lender making a written request for the loan. “These are not standard clauses in even the most informal of lending agreements,” the report said. The loan was paid back on July 14, 2008, from funds the Athletics Department owed Weiser under his separation agreement, the report said.

The regents have requested that KSU’s new president, Kirk Schulz, report in October on what corrective actions are being taken in response to the report.

[Kat Kid]

i don't necessarily care about the free tuition, it's more about showing (through that report) that bill isn't the goddamn saint that he's made out to be.

and jfc, those people that say we don't have money for this or that....no sh*t, when we're wasting it on paying f'ing Bob Krause "overload" money.   i mean, wtf is "overload" money....you mean some guy getting paid sh*tloads of money works long hours?  put him on hourly then.

Overload is just them stealing from a public university to enrich themselves.  No different then Hank Greenberg using AIG as his personal checking account.  I suppose technically it isn't theft but it's repugnant for people who professed to have the University's best interests at heart.  I wonder how many donors who wrote large checks would have made the check out to Bob Krause or Tim Weiser personally.  Because ultimately that's who was taking the money.

fracking crooks should run out of town now.  Weefs needs to move in the dead of night like the Baltimore Colts.  Want to bet he takes the light bulbs and copper wiring out of the President's residence when he leaves?

I think for me the astounding thing is just how systemic this was.  Just at every level.  From the small incompetence to the large deceit and betrayal.

God I hope Shulzy is solid.

[Kat Kid]

hey moron.  He isn't under IRS audit.  Instead of reading the executive summary done by a moronic beat reporter (which your poor reading comprehension skills don't allow you to comprehend anyway) from the LJW why not pull up your big boy pants and read the .pdf?

[feralchat]

And moron, your post didn't get deleted. It got folded into the larger thread.

[Kansas Seminole]

hey moron.  He isn't under IRS audit.  Instead of reading the executive summary done by a moronic beat reporter (which your poor reading comprehension skills don't allow you to comprehend anyway) from the LJW why not pull up your big boy pants and read the .pdf?

He IS mentioned in the IRS audit. The IRS wants the specifics on his contract and is now looking into if he is receiving $$ and not paying taxes on it.

[sonofdaxjones]

Kat Kid . . . while I agree that K-State isn't loaded with money, what's absolutely astounding to me is this.   During most of the last 8 years K-State has been getting record donations to the Foundation, the Ahearn Fund has more members than ever, it's getting record donations so that under the right management things would be looking very good.  Heck, right now the Foundation is getting donations to make up for the investment difficulties in the Endowment pool so they may night have to cut back in scholarships. 

So here's all this momentum . . . and behind the scenes there's these dickweeds pissing all the momentum away. 

Plus once again, F_ck You Tim Weiser . . . you ran around all the time pissing and moaning about how K-State just couldn't "write checks for this, or write checks for that" . . . well apparently there was enough cash around to give you a $500K don't ask, don't tell loan on top of the $700K a year K-State athletics was paying your ass.

Now . .  . the new administration has to come in, and while the entire Regents system is battling to keep its head above, the new administration has to fight that and a credibility issue for K-State. 

Kirk Schulz and John Currie will earn every penny they make in the next 12 to 18 months, I don't envy their position one bit.

[Kat Kid]

hey moron.  He isn't under IRS audit.  Instead of reading the executive summary done by a moronic beat reporter (which your poor reading comprehension skills don't allow you to comprehend anyway) from the LJW why not pull up your big boy pants and read the .pdf?

He IS mentioned in the IRS audit. The IRS wants the specifics on his contract and is now looking into if he is receiving $$ and not paying taxes on it.

Please post link to "IRS audit."

TIA

[sonofdaxjones]

That isn't an IRS audit dumbass.

[Trim]

Anyone else continually feel great for sonofdaxjones while reading the audit?  I was happy knowing how happy dax must be with 30+ pages of KSU financial stuff to read.  Christmas came early this year.

  <-- Trim reading the audit thinking about dax reading the audit