Two university employees were simultaneously paid as both regular and contractual workers, resulting in overpayments of $121,400 that were not discovered for months.
When Morgan officials came to the witness table, lawmakers tried to ascertain who at the university was ultimately responsible for approving the $4.3 million contract that contained the questionable $3.1 million allowance.
"I am the one, sir," said Abraham Moore, the university's vice president of finance and Kiik's boss. "Yes, sir."
But when asked repeatedly to clarify why the allowance was built into the contract, Moore said that he was "inhibited in my explanations" because of the potential criminal investigation.
Lawmakers also expressed incredulity that the $4.3 Whiting Turner contract ever passed muster with the Board of Public Works.
"Nobody asked about this $3.1 million?" asked Sen. Nathaniel J. McFadden, a Baltimore Democrat.
Ermer said the board "approved it without discussion."
In the lengthy hearing, lawmakers struggled at times to comprehend the scope of the problems at Morgan and then to extract explanations from university officials.
J. Lowell Stoltzfus, an Eastern Shore Republican, repeatedly interrupted the auditors' presentation.
"I'm getting lost," Stoltzfus said. "What is the total amount you could not verify?"
"$2.4 million," said Mark A. Ermer, an audit manager with the Office of Legislative Audits, which conducts routine fiscal compliance reviews of all state agencies.
Stoltzfus: "$2.4 million that you don't have any proof how it was spent?"
Ermer: "Yes, for example, they purchased equipment items, but we couldn't find the equipment. ... We went around with them, and they couldn't find it. That was about $450,000."
Next week, auditors will brief lawmakers in the House about the audit. Del. John L. Bohanan Jr., the St. Mary's County Democrat who chairs the House Appropriations Committee's education sub-panel has promised "strong scrutiny" of Morgan's dealing with Whiting Turner.
Bohanan has said the procurement scandal could cause some lawmakers to question whether Morgan, which is not part of the University System of Maryland, is capable of managing procurement and construction operations.
McFadden, a Morgan alumnus, said the university "needs to more clearly delineate what happened," but that any action by lawmakers would be hasty before a full investigation is complete.
"At the end of the day, if anything egregious has occurred, then we have to think about that," McFadden said.
gadi.dechter@baltsun.com
