Aug. 18, 1999 State's attorney reviews $100,000 discretionary account Records show the institute's superintendent spent $16,000 in flowers for decorations or gifts and $12,000 in books for personal use and as gifts.   By MATT CHITTUM THE ROANOKE TIMES The question of whether Virginia Military Institute Superintendent Josiah Bunting III did anything criminal in his spending of college funds is in the hands of the Rockbridge County commonwealth's attorney. Gordon Saunders received information early last week from the state police about an investigation of Bunting's spending practices, he said Tuesday. The packet includes a report from the state Auditor of Public Accounts, who reviewed purchases from Bunting's $100,000-plus discretionary account. Saunders' job is to determine whether anything Bunting did warrants prosecution. The review by a prosecutor is a routine part of the investigation. Saunders would not elaborate on what the information contains. "The news reports have been accurate," he said. "I don't think there's anything Earth-shattering here." Saunders confirmed that state police investigators visited the business office at VMI Tuesday at his request. The investigation of Bunting's spending began in April after a routine audit of his purchases using a state-issued American Express card. The state Department of General Services turned up some questionable expenditures on the card. VMI purchasing officials had done their own audit just prior to that, and informed the state auditors of their own concerns. Investigators from the state auditor's office then began a detailed review of Bunting's expenses, which include $16,000 in flowers for decorations or gifts and $12,000 in books for Bunting's use and to give away. Purchases of alcohol for entertainment purposes also were made from the account. The state auditors completed their report and turned it over to the state police in mid-July to review for potential criminal activity. Bunting has declined comment, except to call his spending habits part of "common business practice." He added that his purchases include things that "a competent and diligent auditor would question." A one-time Virginia attorney general who is a friend of Bunting and who has reviewed Bunting's purchase records said Bunting and his office staff did nothing wrong. Richard Cullen, now an attorney with McGuire, Woods, Battle and Booth in Richmond described himself as a "lawyer who is a friend of his who told him I'd be happy to take a look at this." Cullen came to know Bunting when his law firm helped represent VMI in its battle to remain all-male, and also during his seven months as appointed attorney general. Cullen took over the job when Jim Gilmore resigned to run for governor. "I have every confidence that everyone involved here ... will do a thorough job," he said. "I hope they will conclude as I have that the expenditures ... advanced the mission of VMI, and that will be the end of the story." Saunders didn't say when he might reach his conclusions about the expenditures.