Originally published September 17, 2009 at 04:39p.m., updated September 17, 2009 at 05:52p.m.

A Lew Perkins contract one of questions raised in KU management audit

Auditor gives university an overall clean bill of health


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Read more on the management review of financial accounts of Kansas University and the relationship between the school and various affiliated corporations.

— An audit of financial dealings at Kansas University and its affiliated groups found no major problems, but did question an $18,000 per-year contract between KU Athletic Director Lew Perkins and a private company that does business with Kansas Athletics Inc.

The review determined university leaders should evaluate “for appropriateness” the contract between Perkins and Ceebrook Creative Concepts, an Overland Park advertising and marketing company.

Ceebrook is a vendor that also does business with Kansas Athletics Inc., the corporation that operates KU’s varsity athletic programs.

KU officials said the contract will be considered at the November meeting of the Kansas Athletics board of directors to determine whether it complies with KU and Kansas Athletics policies.

The audit said that Perkins stated his business relationship with the company had nothing to do with its business with Kansas Athletics. The report noted that Perkins listed the company on his state-required Statement of Substantial Interest.

Jim Marchiony, associate athletic director, said Perkins is paid $18,000 per year by Ceebrook for consultations he has with the company’s president, Jim Badzin, on issues such as leadership, strategic planning, motivation and community service.

Marchiony said Ceebrook is a vendor that bids on work supplying promotional items, such as license plate frames or calendars.

Overall, the Kansas Board of Regents members said they were pleased by the audit of KU and another one that was released Thursday on Pittsburg State University.

“Both of these institutions did very well,” Regent Chairwoman Jill Docking said after the board met in closed session to discuss the reports.

The audit, conducted by BKD, LLP, covered the final six years of Robert Hemenway’s tenure as chancellor of KU. Hemenway stepped down earlier this summer. The auditors reviewed management of all non-public accounts administered or controlled by Hemenway, and the dealings between the university and KU-affiliated groups, such as Kansas Athletics, the KU Alumni Association and KU Endowment Association. The audit included KU Medical Center, too.

“Based upon our work and interviews we conducted, the Chancellor has been successful in instilling a sense of responsibility and accountability throughout the organization,” the report stated. “BKD procedures resulted in no identification of inappropriate disbursements of unrestricted funds by the University, including KUMC, or affiliated corporations of the University and KUMC.”

The audit followed one released in June of Kansas State University, which raised numerous questions about how employees in the athletic department there were paid and detailed conflicts of interest in the operation of a business incubator.

The audits of KU, Kansas State and Pittsburg State University were ordered by the regents following the retirements of Hemenway, Jon Wefald as president of Kansas State, and Tom Bryant as Pittsburg State’s president.

But the findings of the KSU review, which was the first one completed, prompted Gov. Mark Parkinson to write the regents, calling for a broader policy of audits of regents institutions to maintain the public’s trust.

The regents complied, saying they will institute a more regular schedule of outside reviews.

The KU report was a far cry from the KSU report, which cited numerous questionable financial dealings.

Other findings in the KU report said conflict of interest policies should be reviewed and extended to a new KU-affiliated business incubator facility, called Breidenthal. KU officials said they intend to do just that. And it said the Student Union Corporation of KU Med Center should find a second person to reconcile bank statements.


KUbsee69 10 years, 4 months ago

I think we can assume Lew's contract is not with Joe-College ;)

Billy Derringer 10 years, 4 months ago

Lew is the man-if he has a consulting geg whats the big deal, im sure there are other A.D. that supplament their income-- this is a right to work state and in the bylaws of sec13.chapter 7 there is no grounds that merit a employer to limit the access of present or future employment opportunitys with other bussiness while employed by another-thus lew can consult with who ever he likes and the Kansas Board of Regents can only suggest key word suggest that it is a conflict of interest and thats it- basically they have no ground to stand on when it comes to lews other endevers...

Kevin Millikan 10 years, 4 months ago

Give the man a raise!! I hope Mr. Perkins stays for another 30 years.

Dyrk Dugan 10 years, 4 months ago

basically clean as a whistle compared with the kitties. their audit was a disaster compared with this. not bad at all for the crimson and blue!

kubbjunkie 10 years, 4 months ago

Lew is an a*s, and doesn't care one bit about the University of Kansas or its athletes...past or current. The only thing he likes about KU is the jet and the paycheck he earns while walking all over the backs of student athletes who made the KU tradition great. He didn't build KU Athletics, our ATHLETES did!

Christopher Hauser 10 years, 4 months ago

kubbjunkie- WTF, do you think that all the new sports facilities that are benificial to all of our student athletes would exist without Lew? It takes a business man to run a business and we have one of the best.

Landon Brown 10 years, 4 months ago

i agree with Chris, seriously. if Lew doesn't care about KU's athletes he wouldn't go to bat for them in upgrading the facilities, including the towers. he may not invite the athletes over for dinner but that doesn't mean he doesn't care about their well being or success while they're in school. of course he likes his paycheck and the perks, who wouldn't? kubbjunkie, what makes you say that? do you have evidence?

Christopher Hauser 10 years, 4 months ago

lando30-Maybe junkie just has a dislike for the big business that college sports have become. This still does not give him an excuse to attack on a micro level because if this is indeed the case then Lew would just be a product of his environment.

Christopher Hauser 10 years, 4 months ago

Would like to hear your thoughts kubbjunkie, my post is purely speculation.

swunruh 10 years, 4 months ago

Lew Perkins is far better than Al Bohl and deserves every penny. We are fortunate to have him at KU.

truefan 10 years, 4 months ago

kubbjunkie is an a*s, and doens't care one bit about Lew Perkins or the student-athletes...past or current. All he likes about KU is the high level recruits, the improved coaches, and improved facilities for the athletes while walking all over the backs of the Athletic Director that brought all of these things to KU to make sure KU traditions remain great. He didn't build KU athletics, Lew Perkins did!

David Robinett 10 years, 4 months ago

where's the love for Al "Roy crushed me like a dove" Bohl?? He did bring us Coach Mangino.

KGphoto 10 years, 4 months ago

He brought us Mangino, sure. But Lew let him stay and build a team.

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