University heads roll nationwide after mismanagement of schools' funds

American University President Benjamin Ladner was fired Monday night for allegedly misusing travel funds and spending school capital on private parties. \nAnd Adams State College President Richard A. Wueste was fired for alleged financial mismanagement Friday, according to Chronicle of Higher Education reports.\nBut allegations of financial mismanagement and gross expenditures of essential travel money for things other than University business won't happen at IU because of financial oversight procedures and a dedication to staying within budget, said IU spokesman Larry MacIntyre. \n"We have pretty strict policies on how University money is spent," MacIntyre said. "The president is very careful to ensure he and his staff adhere to the University policies."\nEach department or office allocates a certain chunk of its budget to travel expenses, all of which are reviewed by the respective heads of department. Vice President Judy Palmer's office then reviews these expenses to make sure all allocations of money follow University policy, MacIntyre said. \nPalmer was out of town and unavailable for comment by press time.\nIU also might bring in an internal auditor if there were questions about expense accounts, he added. Written sections of IU policy outline exactly what University faculty and staff will be reimbursed for when traveling. The code also defines a chain of approvals University travelers must obtain before they can hop on a plane, train or automobile on IU's dollar.\n"Everything is reviewed," MacIntyre said. "The University keeps tight controls on spending. Part of it is because we always have a fairly tight budget, so everyone from the president on down is very careful when they're spending."\nTravel expenses for the 2003-04 year were a $30.3 million chunk of the multi-billion dollar IU budget, a rise of 10.3 percent from the previous academic year, according to IU financial reports. Travel is an important aspect for faculty, researchers and top administrators, including IU President Adam Herbert, MacIntyre said.\n"A lot of professors go to seminars, conferences, research trips and to Washington for research grants," he said. "President Herbert attends a number of academic organization meetings, including the American Association of Universities... He also travels to meet with donors interested in making large donations who have questions, and lectures at other universities. He probably travels about once or twice a month"