IG Report: SC State diverting money to foundations

South Carolina State University

COLUMBIA, S.C. (AP) -- South Carolina's inspector general says financially struggling South Carolina State University should stop diverting millions of dollars to school foundations.

The State newspaper reported Wednesday ( ) that the historically black school sent $2.3 million in rebates from contract vendors to a pair of school foundations in recent years.

The state watchdog says money from contracts to any state agency should not go to foundations with no legislative or public oversight.

The report says the S.C. State University Foundation, which spends money on student scholarships, also paid for travel, consultants, flowers, entertainment, meetings and country-club memberships. The report did not say who received or requested the expenditures.

The university has faced a $13.6 million deficit.

The school says it will make changes to increase transparency.