By Associated Press - Friday, March 28, 2014

MADISON, Wis. (AP) - A new state audit is questioning the handling of about $520,000 in federal aid received by the University of Wisconsin-Whitewater and the state Department of Public Instruction.

The Legislative Audit Bureau report released Friday examined the $12.5 billion in federal financial assistance handled by state agencies in the prior fiscal year.

Auditors questioned $365,000 in federal assistance given to students at UW-Whitewater who likely had withdrawn, requiring the return of all or some of that money. The university said in a response that it was calculating how much of the money needed to be returned by students or the school.

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The audit also questioned whether at least $150,000 in payroll-related costs at DPI were appropriately charged. The agency said in response that identified problems have been corrected.

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