ORLANDO, Fla. -- The Florida House of Representatives is investigating claims that the University of Central Florida misused millions of dollars for a new building.

  • Florida House to investigate UCF misuse of funds
  • UCF admits to using education, general funds for new building
  • UCF CFO resigned Thursday to school's president

UCF President Dale Whittaker confirmed that the school inappropriately used publicly-funded education and general funds in 2014 to pay for the construction of Trevor Colbourn Hall. The funding should have come out of a capital outlay budget, which was meant for facilities.

The building, which houses the College of Arts and Humanities, cost $38 million and was completed last month.

"From what we know so far, clear information about funding sources for Trevor Colbourn Hall was not shared with university leadership and our Board of Trustees," Whittaker said in a statement released Thursday.

Whittaker said an external review has been ordered to investigate what happened and make sure it doesn't happen again.

William Merck, UCF's chief financial officer, also stepped down.

The school is also working to replenish the funds taken from the education and general funding budget, and pledge there will be no impact on student services.

UCF also says all future building projects will now require written certification by the school president, the vice president presenting the project, the school's general council and the new CFO.

House speaker demands state investigation

But Florida House Speaker Richard Corcoran said that although it appears that Merck willfully concealed misusing the funds from the UCF Board of Trustees, Merck was likely not the only person involved.

"There are only two possibilities: that others within UCF were aware of and conspired in this misuse of public funds, or your administration lacks the necessary internal controls to manage its fiscal responsibilities," Corcoran said.

Corcoran appointed South Florida Republican State Rep. Jose Oliva to head the House Public Integrity and Ethics Committee, which will lead a committee investigation into the UCF matter. 

Corcoran also demanded that legislative leaders increase the frequency of audits by UCF's auditor general, saying the matter tarnished UCF's reputation.

It also appears that Corcoran may try to punish UCF in next year's budget.

"I encourage the Legislature to take the necessary action in the Fiscal Year 2019-20 General Appropriations Act to address this situation in UCF's budget," Corcoran said. "The Legislature provides for broad discretion in university budgeting. Perhaps this latitude should be revisited in light of this occurrence."

UCF reacts

UCF leaders are pledging full cooperation with the Florida House investigation.

The Board of Trustees will hold a special meeting Thursday, Sept. 20, to discuss the issue with the external investigation team.

“Speaker Corcoran is correct that UCF and the state need to get to the bottom of this," Whittaker said. "We’ve taken immediate, aggressive action to thoroughly and transparently investigate this matter, how it happened and who was involved."

"We welcome this action, and agree that this serious matter deserves a thorough review," said Marcos Marchena, UCF Board of Trustees chairman. "I pledge UCF’s full cooperation, as this will add to the independent, external investigation we have already begun.

“Although the decisions that led to this issue took place several years ago, I applaud President Whittaker for taking strong action to address it immediately as his presidency begins.”

Whittaker took over the university July 1 after President John Hitt retired. Whittaker joined UCF in August 2014 as executive vice president and provost for academic affairs.