UT Knoxville Radio Station Audit Finds Mishandling Of Funds, General Manager Walks Away With $75K Retirement Package

Image Credit: wutkradio.com

The Tennessee Conservative Staff –

Benny Smith, who has served as the General Manager of UT Knoxville’s WUTK radio station, was given a $75,000 retirement payout and is currently on paid leave until his retirement goes into effect on January 1, 2025.

This comes after a recent audit found that the radio station was allegedly not following university policies for handling money.

Smith was placed on paid administrative leave in early July, and plans for his retirement were announced by the College of Communication and Information on July 15.

According to the audit, published on June 13, WUTK was rated as “high risk,” specifically in their “cash management.” The audit cited “insufficient oversight and governance” and “a lack of documented department policies and procedures” as the key factors leading to the finding.

Notably, the station maintained a petty cash fund of less than $500 as of April, despite petty cash funds being prohibited by Dean Joe Mazer in August 2023. That cash was taken to be deposited into WUTK’s account.

Additionally, the station failed to keep adequate records of merchandise inventory and sales, and they were inconsistent in their handling of donations to the station.

Smith stood by his financial decisions:

“During my 20 years with the university and WUTK, this was the first audit we had,” Smith said. “The petty cash procedures we followed were given to us by the university about 15 years ago.”

Smith further stated, “We followed the rules as they were explained to us in face-to-face meetings, and we received no written instructions or guidance to the contrary during my time at the university.”

Mazer placed Smith on leave via email on July 9 and told him to “consider your options to move forward.”

Mazer gave Smith three days to respond, instructing him to refrain from returning to campus, communicating with WUTK staff or students, appearing on-air, or accessing university platforms, including WUTK’s social media accounts. Failure to comply would result in termination, according to Mazer’s email.

Smith then worked out a severance deal in exchange for his resignation. 

That agreement stated that the retirement would go into effect on January 1 and Smith would be paid for his leave until then. He would also receive a $75,000 payout. 

Additionally, the university will not speak negatively about Smith, and he will not speak negatively of them and will be listed as “retired” and “eligible for rehire.”

The agreement was signed by Smith on July 24 and finalized by UT System Chief Financial Officer David Miller on July 29.

“I want to reiterate how proud I am of my time at WUTK and the positive impact the station made on the careers of student broadcasters and the Knoxville community’s local arts and music scene,” Smith said.

Smith’s retirement comes amid a number of big changes to student media at the university, including integrating WUTK, public radio station WUOT (91.9 FM), and student newspaper The Daily Beacon under the College of Communication and Information, with the Media Center opening this fall.