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Penn State: 'No Determination' on Paying for Internal Investigation

on November 23, 2011 1:21 PM

Penn State has yet to determine exactly how it will pay for an extensive internal investigation led by former FBI Director Louis J. Freeh, university spokeswoman Lisa Powers said Tuesday.

At this point, she wrote in an e-mail message, "there has been no determination of where funds will be obtained." No potential funding sources have been discussed, Powers wrote.

"This is an initiative that, at this stage, is central to the university and its ability to move forward," she wrote. She reported that "we will spend what's appropriate to address the many issues that have been raised.

"This investigation is critical to our ongoing mission, and we plan to do what's required to ensure we operate in the future with the best governance practices possible," Powers wrote.

PSU trustee Kenneth Frazier announced Monday the university has hired Freeh and Freeh's firm -- Freeh, Sporkin and Sullivan -- to lead a far-reaching internal inquiry at Penn State.

The investigation, prompted by the criminal sex-abuse charges against former football coach Jerry Sandusky and related cover-up allegations, has already begun. A special committee formed by the Penn State trustees initiated the formal inquiry.

Freeh said Monday he was not prepared to estimate a cost for the investigation or to announce a specific time frame for its proceedings. He said his investigative team, compromising experienced professionals with no Penn State ties, has "pledged to go as far as we need to to uncover the facts."

His effort is separate from the criminal investigation being conducted by official law-enforcement authorities. The Freeh-led investigation is expected to yield recommended reforms for the university.

Penn State, for its part, has an annual overall budget in the $4 billion range. Its disparate revenue streams and expenses are compartmentalized, divided into categories tagged for areas such as academics, athletics, general facilities and dormitories. Its primary income streams include tuition revenue, state support, research commitments and philanthropic contributions.

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