The Region - News from Aug. 14, 1986

The UCSB Foundation, the main fund-raising arm of University of California, Santa Barbara, violated sound business practices by lending $9,000 to Chancellor Robert Huttenback without collateral, a university audit has concluded. The audit was ordered by UC administrators two months ago after questions were raised about the financial dealings of Huttenback, who resigned earlier this summer when university auditors determined that he had misspent nearly $175,000 of university money on his personal residence. In the future, auditors said, the foundation should obtain permission from the president of the 11-campus system before giving a loan to a chancellor. Huttenback has repaid the $9,000 with interest and is in the process of repaying the $175,000 under an arrangement worked out with the university.