Boards Should Step-up Oversight of Expense Accounts

from The Chronicle of Philanthropy:

Why Watching CEO Expense Accounts Matters

[S]ome of the most embarrassing and damaging scandals erupt over what sometimes seem like small irregularities – $20,000 or $50,000 out of a multimillion- or multibillion-dollar budget. Abusive spending not only raises questions of general accountability but also damages the reputation of the nonprofit and its governing board.

The University of Texas Southwestern Medical Center is the latest to feel the sting over a top leader’s inappropriate spending. Last month it released the results of an internal investigation, concluding that one of its top administrators and fundraisers routinely mingled business and personal spending. The controversy had been the subject of unrelenting coverage from the Dallas Morning News, and on Tuesday, the university announced that Kern Wildenthal was stepping down as head of the university’s foundation as a result of the questions that had been raised.