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ABC News World Headlines
Ex-WKU Employee Being Investigated For Misappropriating Funds Save Email Print
Posted: 11:54 PM Aug 7, 2008
Last Updated: 7:57 AM Aug 11, 2008
Reporter: Ryan Dearbone
Email Address: ryan.dearbone@wbko.com

A | A | A

A former Western Kentucky University professor Is at the center of an investigation Into "misappropriated money."

The focus is centered on former Psychology professor and Director of the Alive Center, Dr. Katrina Phelps.

According to University documents, over a 5-year period, Phelps may have mishandled more than $30,000 in federal grant money as well as falsifying payroll records.

"A former student filed some concerns over payroll irregularities," says WKU Media Relations Director, Bob Skipper.

On July 10 of this year, WKU Police were asked to contact the former student employee in the "Kaleidoscope" program.

Concerns of mishandling were then substantiated by Western's Internal Auditor.

According to WKU, "To date, it appears approximately $33,000 of $4.8 million in federal funding awarded over a period of five years in is in question."

But University officials believe the total could rise once the Federal Government's probe is complete.

"The materials from our investigation have been turned over to the FBI and they're continuing the investigation. I'm sure they will be interviewing doctor Phelps at some point," explains Skipper.

Phelps' lawyer Currie Milliken says the situation is still in the very early stages for his client.

"Doctor Phelps has not been charged with any criminal offense or anything of that nature. This is simply under investigation and everybody's working, trying to get these matters sorted out," says her attorney, W. Currie Milliken.

Phelps was removed from financial and administrative oversight of the Alive Center programs by the University in late October and then re-signed her post at Western two months later.

WBKO was unable to reach Phelps, but Milliken says she's taking the whole situation in stride.

"She's in great spirits. We're trying to get to the bottom of this. Trying to get these issues resolved," notes Milliken.

Since the investigation, WKU has brought in the assistant Vice Chancellor of Research Finance at Vanderbilt, Dr. Jerry Fife, to look over and make recommendations on its grants accountability procedure.

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Posted by: Donald Location: Bowling Green on Aug 9, 2008 at 10:47 AM
I have always been 100% om favor of everyone being accountable for everything that they are responsible for, including all government operations. However, sometimes the procedures and paperwork are incomplete. I will give Dr. Phelps the benefit of doubt until the facts are known. I don't know Dr. Phelps, but it makes no sense for someone in her position to abscound with $33 thousand out of $4.8 million knowing that it will completely ruin her career. Let's see the facts.

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