Topeka — A contract between Kansas University Athletic Director Lew Perkins and a private company that does business with Kansas Athletics Inc. is fine, KU Chancellor Bernadette Gray-Little said.
Gray-Little made the comment to the Kansas Board of Regents as part of KU’s response to an audit that was released in September.
The audit of financial dealings at KU and its affiliated groups found no major problems, but did question an $18,000 annual contract between Perkins and Ceebrook Creative Concepts, an Overland Park advertising and marketing company.
Auditors said KU should evaluate the contract “for appropriateness.”
Gray-Little told the regents on Thursday that the contract was reviewed by KU’s general counsel, who “found no violation” of KU policy.
The audit had stated that Perkins reported that his business relationship with the Ceebrook 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, had said Perkins received $18,000 per year from 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.
The regents had ordered audits of KU, Kansas State University and Pittsburg State University following the retirements of former KU Chancellor Robert Hemenway, Jon Wefald as president of Kansas State, and Tom Bryant as Pittsburg State’s president.
But findings of problems after the KSU review prompted the regents to call for a broader policy of audits of all regents institutions.