On Monday, legislative auditors for the state of Nevada charged that Nevada’s former treasurer and Upromise spent some $6 million over the past 6 years without legislative approval, a violation of three separate state laws.
From Tuesday’s Nevada Appeal: “According to Paul Townsend, head of the audit division, the program earned the state more than $11.2 million in program fees since it started in 2001. But only $5.2 million was ever deposited in the state treasury.
The remaining $6 million was spent by the program’s primary contract manager, Upromise, at the direction of [former Nevada treasurer Brian] Krolicki and his staff, according to the audit.”
Parents’ contributions were not mishandled, the auditors say, but money earned by the state for the program was spent without legislative authorization. Basically, Nevada’s legislature authorized $1.2 million for marketing and advertising, legal expenses, and the plan’s advisor… but instead, $7.2 million was spent on this — an additional $6 million!
“Krolicki said he believed the money was not state funds but money the administrator of the college fund, Upromise, was supposed to contribute to marketing efforts to build the plan.”
The Nevada auditors are submitting their findings to their state attorney general’s office for investigation, saying that at least three laws were violated.
Read the full article here.
