Hudson audit released; funds repaid

JONESBORO, Ark. – An audit of Arkansas State University’s former chancellor has been completed and he has repaid the money in question to the university.

In the audit, attached below, $1,671.92 in travel expenses were reimbursed to the former chancellor for the fiscal years of 2013 through 2016. The problem is these were actually paid by the ASUCQ Mexico partners and not Hudson.

ASU contacted Hudson following the audit and a check in the amount of $1,671.92 was received and deposited by the university.

ASU President Dr. Charles Welch wrote a letter to Hudson on Oct. 24, telling him of the audit and issue and asking for the funds to be repaid.

“I notified Dr. Hudson of these findings on October 24, 2016, and requested immediate action,” Welch said in an email to the college.

Hudson wrote back the following day.

“My understanding with ASUCQ starting in 2015 was that if accompanied by other A-State travelers, then I would pay for my hotel,” Hudson wrote. “I recall doing this in cash since I rarely use a credit card in Mexico due to security concerns.”

However, the former chancellor said he had no receipts to prove this and thus, cut a check for the requested amount.

Welch said in an email no further audits of Hudson were expected. He also noted there was never any wrong done or believed done by ASUCQ Mexico partners.

“To the contrary, they have been very transparent and eager to assist during this matter and throughout our leadership transition,” Welch said.

Welch also issued a statement regarding the audit.

“The review of former Chancellor Hudson’s travel to Mexico was initiated by Internal Audit at my request based upon information that was reported to Internal Audit by the Vice Chancellor for Finance and Administration at Arkansas State,” Welch said. “We have received reimbursement from Dr. Hudson for the amount in question, and the campus will follow the System’s recommendations to further enhance our travel review procedures. No other audits related to Dr. Hudson are underway or anticipated at this time.”

Review the audit here:



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