Aug. 6, 1999 VMI board chairman concedes superintendent's expenditures violated guidelines Some have called Josiah Bunting's use of $35,000 for office renovations and other items extravagant. By MATT CHITTUM THE ROANOKE TIMES Spending by Virginia Military Institute Superintendent Josiah Bunting III probably will be found in violation of state regulations, the VMI Board of Visitors chairman told the rest of the board in a memo last week. "I am confident we will be criticized by the State Auditor for not following State Purchase Procedures," Bruce Gottwald wrote in the memo. "We didn't." Gottwald also acknowledged that many board members were "caught off-guard with a lack of information" after news of the state auditor of public accounts' investigation into Bunting's spending became public July 29. He called the stories in The Roanoke Times "venomous" and a "needless attack" on Bunting. Gottwald said he urged board members to resist public comment on the investigation and leave it to VMI's public relations office. He said the board "looked disjointed" in the articles. Several board members were quoted, some expressing consternation at their lack of information. In response to the memo, Charles Lindsey, who was quoted on the matter in at least two newspapers, said, "I'm going to do what I need to do to fulfill my obligation as a board member." Board member S. Waite Rawls III spoke in defense of Bunting's spending. Rawls attributed any rules violations to "bookkeeping procedures." He said all of Bunting's spending was in line with what the board expected as part of Bunting's mission to raise money and reach out to alumni alienated by VMI's decision to admit women. Bunting is about to take the helm of a $150 million to $200 million fund-raising campaign. "I would be upset if he wasn't spending the money," Rawls said. Bunting has been VMI's superintendent for four years, and the questionable expenses go back almost that far. The investigation began after VMI officials became concerned about certain expenditures from the Superintendent's Allotment - Bunting's $100,000-plus discretionary fund. When state purchasing and procurement officials came to VMI in April on a routine audit, VMI's business office told them about their concerns. After completing their audit, the state accountants notified VMI of questionable expenses. In compliance with state law, VMI then notified the Auditor of Public Accounts and the state police. Among the questionable expenses are $16,000 worth of flowers bought since January 1997 for decorations, funerals and gifts, some of which were sent with cards signed only "Si and Diana Bunting," with no mention of VMI. Bunting also bought about $12,000 worth of books for gifts and for his own reading. Gifts and flowers are not considered legitimate expenses under VMI and state accounting regulations. Those regulations also bar the purchase of alcohol, but Bunting's expense vouchers show numerous $350 receipts for liquor and wine for his house, where he entertains guests of the college. Some alumni have also criticized Bunting's spending of $35,000 for office renovations and other items as extravagant and self-serving. Bunting overspent the discretionary account by a total of $120,000 in his first three years. The annual budget for the account has increased from $50,000 before Bunting to $100,000 during his first three years. In 1998 it was $115,000. This year it's budgeted for $140,000. None of the funds comes from taxpayers. "We've got to give him [Bunting] a lot of flexibility to travel and entertain and reach out to alumni," Rawls said. Bunting has a responsibility to present a dignified image on behalf of the institute, said 1962 VMI graduate Pat Lang. "These things are appropriate in light of that responsibility." "If you want to have a first-class reputation, you've got to be first class," said John Moore, a 1993 VMI graduate. "My faith in General Bunting has not been shaken." Rawls said even the money spent on books is within the institute's mission, because Bunting is a scholar with an enormous appetite for literature. "That voracious reading makes him who he is," Rawls said. "If the state won't give him books to read, the foundation certainly should." Even buying copies of Bunting's own book, "An Education for Our Time," with state money is OK, Rawls said, because the book reflects well on VMI. But other alumni, some of whom donate the money that Bunting spends, disagree. "It bothers me if that money is being used to support the superintendent," said Gene Grayson, who for 25 years led fund-raising efforts for the class of 1958. "We feel like what we give, the foundation spends it to the betterment of the corps" of cadets. "I feel that former superintendents have served VMI well, and not for their personal gain. Not so with ... Bunting," said Howard Moss, class of 1954. Moss admits he's never been a Bunting fan. "I think Bunting's done more damage to VMI than General [David] Hunter did when he burned it down during the Civil War." Others criticized Bunting's spending as inconsistent with what is expected of VMI graduates. "It's most disturbing to see VMI officials not adhere to the personal character traits forever associated with our alumni - honesty, integrity, honor above self," said Dabney Oakley, a 1971 graduate. "Josiah Bunting knows the language of honor and leadership, but not the practice," said 1954 graduate Tom Wright. "It is he who must first be held accountable. The board of visitors has the initial responsibility to hold him accountable and themselves to the governor and the people of Virginia. At VMI, we were all taught that when we made mistakes, we were to stand up and admit our mistake, make amends for the mistake and accept the consequences as responsible free men." It remains unclear, however, when VMI will know if there's anything Bunting must be held accountable for. The state auditor of public accounts has finished his report on the investigation and turned it over to the Virginia State police for review. The state police can choose to pursue criminal charges against Bunting or find no criminal violation and return the report to the auditor. But until the state police make a decision, the report won't be released to VMI or the public. The VMI board meets again this month, but two seats on the panel are open and Gov. Jim Gilmore has yet to fill them. Lindsey, a board member, is eager to deal with the spending questions, but is frustrated by not having the report. "It's critical to the board that this audit be released to us as soon as possible so that we can make a determination as to how to proceed."