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Audit: UCD prof engaged in 'fiscal misconduct'

James Paton, Rocky Mountain News

Published June 19, 2007 at midnight

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A longtime professor at the University of Colorado at Denver has stepped down after an internal audit discovered he misappropriated federal grant money and engaged in "fiscal misconduct."

Donald Stevens, who ran the Institute for International Business, misused $257,000 of UCD resources "for personal gain" and diverted $12,000 to cover overseas travel costs unrelated to business, the audit found.

The district attorney's office is reviewing the findings.

The 26-year faculty member repaid the sum out of his own pocket as part of a settlement agreement with the university but denied he acted improperly. The deal allowed Stevens to retire with normal benefits.

The story revolves around $1.5 million of federal grant money UCD received during a four-year span. The school's Center for International Business Education and Research is funded by the U.S. Department of Education.

The investigation concluded Stevens used some of the grant money to support an outside organization and other funds to pay for questionable travel expenses.

Stevens' actions "constitute fiscal misconduct and warrant remedial action," according to a May 25 letter accompanying the audit. Stevens, married to former Colorado Lt. Gov. Gail Schoettler, retired the next week.

UCD spokeswoman Danielle Zieg confirmed the audit previously reported on CBS 4 News.

The school provided the nonprofit Economic Club of Colorado with support services and office space but didn't receive any compensation in return, according to the audit. For several years, UCD had a contract with the club, formed in 1986 to bring world leaders to the state. That agreement ended in 1992.

At that time, Stevens' firm - Global Education Inc. - took over the deal with the economic organization. But Stevens "directed university resources under his supervision and control to fulfill (Global Education's) obligations," the review said.

The university apparently was doing work Stevens' company was supposed to handle but not getting paid for the services.

Calls to a Donald Stevens in Parker were not returned.

Stevens also was reimbursed for expenses on travel to Finland, Norway, Sweden, Iceland, Belize, China and other countries that "were deemed to be personal in nature and not for the benefit of the university," according to the documents.

The audit also uncovered other questionable costs. Delegates on a 2006 trip to India arranged by the university spent only four of 16 days working on business, while "the remaining 12 days of the trip consisted of such activities as safaris, elephant rides and tours of palaces," it said.

"Campus management" said parts of the trip were "critical to understanding the culture of the country and how business is conducted. However, the linkage of how the activities intersect with or facilitate an understanding as to how to conduct business in the country is not documented," the audit stated.

The case has not risen to the level of a criminal investigation, district attorney spokeswoman Lynn Kimbrough said.

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