-. Katherine Conway-Turner, President .3 BUFFALO STATE Cleveland Hall 517 The State University of New York 1300 leWOOd Avenue Buffalo, NY 14222-1095 Tel: (716) 878?4101 Fax: (716) 878?6527 May 12,2016 Catherine Leahy Scott NYS Inspector General Empire State Plaza Agency Building 2, 16th Floor Albany, New York 12223 Re: NYS IG #1513-032-2014 Dear Inspector General Scott: I am writing in response to your March 31, 2016 letter regarding Buffalo State College?s International Graduate Programs for Educators Included in your letter are two recommendations that you have asked us to advise you on our actions and decisions. The first recommendation is that Buffalo State immediately cease administration of IGPE through the SUNY Research Foundation if it has not already done so. As of this date, all new revenues for IGPE are being deposited in accounts established as part of the State Income Fund Reimbursable (IFR) Program. In addition, new expenditures will be processed through the IFR accounts. A period of transition is required to clear all the outstanding financial commitments from the Research Foundation, and we expect that IGPE will be fully accounted for through the State by the end of this fiscal year [June 30, 2016} The second recommendation is that Buffalo State perform a comprehensive review of all existing programs to ensure that the SUNY Research Foundation is not improperly administering any other programs that require the payment of tuition by students or involve credit bearing courses. Our review of activity in the Research Foundation is on- going, and our plans are to have any programs that may be questionable moved to the State by the start of our new ?scal year [July 1, 2016). Please be assured that Buffalo State has taken the issues identified in the reviews done by both SUNY and the Research Foundation very seriously, and has been proactive in taking steps to improve the operations of and to ensure that IGPE operates in a manner that is fully compliant with NYS and SUNY requirements. NYS IG #1513-032-2014 May 12, 2016 Page 2 If] can provide additional information on our response please let me know. Sincerely, Ka erine Conway?Turner, Pr sident cc: Melanie L. Perreault, Provost and VP for Academic Affairs Michael F. LeVine, VP for Finance and Management STATE OF NEW YORK OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE WELFARE INSPECTOR GENERAL OFFICE OF THE COMPENSATION FRAUD INSPECTOR GENERAL EMPIRE STATE PLAZA AGENCY BLDG. 2, 16?" FLOOR ALBANY, NEW YORK 12223 61 BROADWAY, SUITE 2100 (513) 474-1010 65 COURT STREET, FLOOR NEW YORK, NEW YORK 10006 BUFFALO. NEW YORK 14202 (212) 635-3150 (715) 047-7118 CATHERINE LEAHY SCOTT INSPECTOR GENERAL March 31,2016 Katherine S. Conway?Turner, President SUNY Buffalo State Cleveland Hall 517 1300 Elmwood Avenue Buffalo, NY 14222 Re: NYS IG #1513?032?2014 Dear President Conway-Turner: The State University of New York (SUNY) previously forwarded a complaint to my of?ce regarding potential fraud and misconduct within SUNY Buffalo State?s International Graduate Programs for Educators (IGPE), a program that was managed by the SUNY Research Foundation. Prior to advising my of?ce of this matter, SUNY and the SUNY Research Foundation conducted ajoint investigation of the allegations and prepared a report regarding their ?ndings. A copy of this report was also provided to Buffalo State. Thisjoint investigation found fraud and misconduct by IGPE personnel. The investigation also found that Buffalo State improperly used SUNY Research Foundation to manage the IGPE. The report stated, ?Buffalo State College used the Research Foundation to run/administer tuition based student programs unrelated to normal Research Foundation activities or responsibilities and in violation of State Education Law and SUNY policies.? According to State Education Law, SUNY Income Fund Reimbursable Guidelines, and SUNY Policy for Third Party Payment of Program Costs, ?revenues derived from tuition-related activities and third party contacts must be deposited into a State account.? It is my understanding that representatives of the SUNY Research Foundation presented these ?nding to the Erie County District Attorney, who declined criminal prosecution of the IGPE personnel identi?ed in the report based upon their review of the matter. Foremost, I recommend that Buffalo State immediately cease administration of IGPE through the SUNY Research Foundation if it has not already done so. I also recommend that Buffalo State perform a comprehensive review of all existing programs to ensure that the SUNY Research Foundation is not improperly administering any other programs that require the payment of tuition by students or involve credit bearing courses. I request that within 45 days of this letter, you advise me of any actions or decisions taken in response to my recommendations. If you require further assistance or additional information, please do not hesitate to contact Deputy Inspector General Jeffrey Hagen at 716-847-7102. Sincerely, Catherine Leahy Scott Inspector General