CHARLESTON — A new legislative audit released Tuesday took the West Virginia Higher Education Policy Commission to task for an improper contract with its former leader during a six-month sabbatical.

The Legislature’s Post Audit Division released a report on a contract between the commission and Paul Hill, a former commission chancellor.

“It is the opinion of the Legislative Auditor that HEPC entered into a contract for consulting services with former Chancellor Dr. Hill that was categorized as a sabbatical,” the report stated. “In doing so, HEPC did not follow the competitive bidding process for such services and incurred expenses beyond what would typically be incurred.”

The commission voted at a July 9, 2018, meeting to enter into a six-month sabbatical with Hill, who was to perform services for the commission as requested and report to Mike Farrell, chairman of the commission. Hill announced his intentions to retire earlier that year, having served as chancellor since 2012.

During the six-month sabbatical, the commission paid Hill $200,581 in salary, $47,214 in benefits, and $1,848 in travel expenses. According to legislative auditors, the commission did not have authority in state code to enter into the type of contract it agreed to with Hill, nor did the commission put the contract out for competitive bids as required by law.

Auditors also determined Hill was treated as a state employee instead of as a contract employee and was improperly paid benefits. During his six-month contract, Hill was still receiving health insurance through the Public Employees Insurance Agency, sick leave, paid vacation and retirement benefits.

“The Legislative Auditor is unsure of the motives behind making a decision which seems to be in violation of several provisions of W.Va. Code and the Code of State Rules,” auditors wrote. “… Beyond having the former chancellor on retainer … it is unclear what, if any, benefit was received as a result of this contract, as HEPC is unable to provide any work product or results generated during the contract.”

In response to the audit, Farrell said in hindsight the commission should have gone about the contract with Hill in a different way.

“At the time this contract was publicly approved by the commission, it was prepared pursuant to the best interest of the state … However, and as you have outlined in the report, we recognize that the former chancellor’s employment should have been extended through a different process,” Farrell said.

At the time the commission approved the sabbatical contract with Hill, the commission voted to make Carolyn Long, the campus president for West Virginia University Tech in Beckley, interim chancellor against the advice of the commission’s own attorney, Bruce Walker, who walked out of the meeting and resigned immediately after the vote.

“Bruce out,” he said as he walked out the door.

Long’s appointment as interim chancellor was made shortly after Gov. Jim Justice created a blue-ribbon commission to study the West Virginia public college and university system. The blue-ribbon commission, chaired by WVU President Gordon Gee, met for nearly six months, but despite a failed attempt by Gee to scrap the HEPC in favor of a new Office of Postsecondary Education, the governor’s commission disbanded with no real accomplishments.

Long served as interim chancellor until March 2019 and was replaced by Sarah Armstrong Tucker, chancellor of the West Virginia Community and Technical College System. Tucker leads both HEPC and Community and Technical College System.

In a separate report, legislative auditors also found the state’s two higher education agencies have limited authority to require public colleges and universities and community colleges to implement inventory management rules for institutions of higher learning. Auditors recommended lawmakers consider a bill to require schools establish standard minimum inventory requirements.