POCATELLO (Capital Sun of Idaho) Idaho State University most likely misappropriated monies meant for a never-realized forensic pathology lab in Pocatello, according to a congressional audit.
According to the investigation, in order to avoid returning the unused cash to the state, the university seemed to pay Bannock County monies in an unlawful manner. Ral Labrador, the attorney general of Idaho, might look into the matter further.
The audit report, which was released by the Legislative Services Office on Wednesday, was too narrowly focused to conclude malfeasance, according to Auditor April Renfro’s audit summary. However, facts that might point to the misappropriation of public funds were sent to the state’s chief litigator for additional review.
A request for comment regarding whether an investigation will be conducted was not immediately answered by Labrador’s office.
According to the study, ISU paid a $853,700 invoice from Bannock County that lacked proof of permitted expenses and seemed to have been presented and directed to avoid returning unused general money to the State of Idaho as required.
In response, ISU President Robert Wagner and Chief Financial Officer Jennifer Steele wrote that the university takes the audit’s conclusions and suggestions for using public funds seriously.
The university authorities replied, “We acknowledge the concerns raised in the report and agree to continue implementing measures to ensure appropriate accountability for financial transactions.”
Audit spurred by Idaho senator and a conservative think tank IFF article
Funds for the proposed East Idaho Forensic Pathology Center, which would have been constructed on ISU’s campus and run by Bannock County, came from a 2022 budget bill to the university.
According to ISU spokesperson Emily Frandsen, who talked to the Idaho Capital Sun for a previous story, ISU paid $46,300 on design consulting and cost projections, while the Legislature provided $900,000 for the project’s initial costs.
According to the report, the university paid Bannock County the remaining $853,700 for the project on April 20, 2023, although it did not indicate what those charges were tied to. According to the Sun, the enormous costs of building and conducting autopsies caused the idea to eventually stop.
According to a November 2024 article by the conservative research group Idaho Freedom Foundation, which cited public records, the money was never returned to the state. That same month, according to the Sun, Sen. Glenneda Zuiderveld, R-Twin Falls, issued a press release accusing ISU of embezzling the money for the now-defunct project and urging an inquiry.
By declaring that we must use the $900K state appropriation to ISU by June 30, 2023, the university seemed anxious about preventing the appropriation from being returned to the Idaho State General Fund, according to the study, which cited the IFF article and emails. The simplest course of action, in our opinion, is for the county to send us an invoice for the $900K.
As required by House statute 776, the statute that provided the funding, the invoice omitted information about the costs expended and for what purposes.
We discovered no proof that ISU made an effort to gather more proof to back up the
expenditure or to recoup the money until the legislature and media started to inquire, the report stated.
ISU has taken steps to address findings in report
According to the investigation, ISU staff mistook the funds for county pass-through funding, which was problematic because that is not how the legislation authorizing the funds stated them.
According to the study, in late 2024 and early 2025, Bannock County submitted two checks totaling $853,700 back to ISU, which then returned the funds to the state treasury.
The audit gave the university two recommendations: create and adhere to documented protocols for adequate oversight and appropriation law compliance, and enhance internal controls to guarantee that payments are backed by the right paperwork and real expenses.
To make sure state funds are used in complete accordance with the law and legislative purpose, the university established an Appropriations Tracking and Oversight Team in February of this year. In their response letter, university officials mentioned the new team and claimed to have put new protocols in place.
