According to an Operational and Financial Controls Advisory Task Group's report Thursday on how to prevent the future loss of University of Hawaii funds, procedures were in place to determine the legitimacy of outside contracts, but those procedures were not always followed.
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The independent task force was created by the university after the so-called "Wonder Blunder" in which the university lost $200,000 to a bogus company, Epic Entertainment, that purported to represent R&B icon Stevie Wonder.
Task force member Larry Rodriguez also stated it remains unknown who authorized the printing and selling of tickets for the Aug. 18 concert that was to benefit the UH Athletics Department.
Rodriguez, an independent business consultant, said he asked Stan Sheriff Arena manager Rich Sheriff if it was he who had authorized the ticket printing, but Sheriff replied, 'It must of have come from higher ups.'
"That's a little baffling, but there's nothing where someone takes responsibility for authorizing those transactions to occur," added Rodriguez .
Rodriguez also pointed out that the UH Athletics Department did not ensure a deposit for the Stan Sheriff Center, as was required in the contract with concert promoter Bob Peyton, of Bob Peyton Entertainment Corporation.
Moreover, the report said a lack of cancellation insurance, also a requirement of the contract with Peyton, resulted in the loss of the $200,000 that had been generated through ticket sales for the bogus concert.
When UH officials discovered they had been scammed, the university was forced to expend all of the funds that had been generated through advance ticket sales to would-be concert goers.
The Advisory Task Group's report was presented to the UH Board of Regents at the University of Hawaii's Maui College in Kahului at 8 a.m. Thursday.