Explosive audit report

The State Court of Auditors analyzes the Bruckner University

Miscalculations led to a 1.5 million euro budget shortfall at the Bruckner University

(Bild: Harald Dostal / 2023)

Financial problems at the Anton Bruckner University in Linz became known in the fall of last year. A 1.5 million euro budget gap raised many questions. The SPÖ initiated an audit by the State Court of Auditors - its final report is now available and lists several shortcomings and recommendations. 

In the previous year, there was a huge deficit of 1.5 million euros in the budget of the Anton Bruckner Private University. The provincial government decided to cover the additional requirements that had arisen due to miscalculations. The University Council unanimously approved the supplementary budget, which was also checked for plausibility by the state's financial auditors - we reported on this.

Nevertheless, the SPÖ club initiated a special audit by the provincial audit office. This is now available to the "Krone" and lists both deficiencies and 17 recommendations on 59 pages.

Misappropriation is one cause
The deficiencies show, among other things, that the approved budget was exceeded by EUR 988,000 in 2022, with EUR 360,000 being used for investment and personnel expenses, although the funds were earmarked for other purposes. The remaining budget overruns were financed by earmarked carryovers.

Reclaim is in progress
A central demand is therefore for the state to reclaim these 360,000 euros. The modalities of the repayment are currently being worked out, according to the Upper Austrian government. The repayment should be completed by the end of the year.

According to the LRH report, the additional requirement that arose in 2023 is presumably due to a miscalculation. It is also noticeable that consultancy fees (from 2021) are high, but the largest chunk is taken up by a corporate culture analysis and analysis of the university's IT structure.

Improvement tackled
Among other things, the Court of Audit is calling for a binding cost center budget, including carryovers and adequate controlling. The university has already complied with this, including creating the position of Vice-Rector for Finance and Resources in January 2024, as we reported. Identified "weak points" in the area of IT have also been actively tackled.

It is clear that mistakes have been made in the past, which have been dealt with transparently, but from which lessons have been learned and the consequences drawn.

Landeshauptmann Thomas Stelzer, Eigentümervertreter und Uni-Ratvorsitzender

Governor Thomas Stelzer

(Bild: Horst Einöder/Flashpictures)

Result of close scrutiny
As the owner of the university, the state emphasizes that much has already been tackled. Governor Thomas Stelzer: "The report by the State Court of Audit confirms the path we have already taken, which is based on the recommendations of internal audits by the Office of the State Government. Following these audits, all facts were presented in detail to the University Council, and all steps and points were unanimously approved by the University Council."

The recommendations listed by the Court of Audit are being implemented in full, and some have already been implemented, according to Stelzer.

The suggestions and recommendations support us in fulfilling our tasks economically, economically and appropriately.

Martin Rummel, Rektor der Bruckner Uni

No follow-up audit planned
The Bruckner University says that the ACA report provides valuable suggestions. "We have already implemented the majority of the recommendations," emphasizes Rector Martin Rummel. The Court of Audit assessed this positively, "there will be no follow-up audit".

Rummel's contract runs until 2026, "until then he will guide the fortunes of the Bruckner University with prudence and care", assures Stelzer in his role as University Councillor.

Martin Rummel has been Rector since 2021

(Bild: Einöder Horst/Horst Einöder/Flashpictures)

SPÖ calls for "budget service"
According to the SPÖ, the Court of Auditors had uncovered "serious shortcomings in the management of the university". Because the state budget - and therefore also the funds of Bruckner University - is decided annually in the Upper Austrian state parliament, but "the members of parliament lack budget-relevant information", club chairwoman Sabine Engleitner-Neu and state party chairman Michael Lindner are calling for an "independent budget service": "This strengthens the control function vis-à-vis the government and thus our democracy. In addition, an independent budget service guarantees true budgetary sovereignty in the Upper Austrian state parliament and ensures transparency."

Further reactions and control committee
"The events that have now come to light must be clarified objectively and factually. Artistic freedom has its limits when it comes to legal and economic requirements that must be adhered to," emphasizes FPÖ parliamentary group chairman Mahr.

Severin Mayr from the Greens added: "The management of Brucker University must be put on a solid footing immediately and functioning control must be ensured." The political responsibility is borne by LH Stelzer, the economic and organizational responsibility by Rector Rummel. "Both will have to face our questions in the upcoming control committee," emphasizes Mayr. "The Bruckner University must finally get out of these negative headlines, the reputation of this important institution is at stake."

For Neos state spokesperson Felix Eypeltauer, LH Stelzer bears the political responsibility "for this blatant mismanagement". He has to accept the question of how it can be that he has not noticed and rectified these shortcomings. "No matter where the State Court of Audit looks, it finds wasted taxpayers' money and mismanagement," says Eypeltauer.