An investigation of alleged mishandling of funds by radiology department employees at the University of California, Davis, School of Medicine was confirmed today by Vice Chancellor for Administration Janet C. Hamilton. There appears to be no evidence of personal financial gain by any employee, Hamilton said, but $250,000 appears to have been placed inappropriately in radiology accounts for department-related expenses and $80,000 placed in unauthorized accounts for social activities. The majority of the funds were provided by medical-equipment vendors in the form of rebates negotiated through a consortium of more than 100 academic teaching institutions. Through the consortium, hospitals and schools of medicine across the country are able to negotiate joint purchase agreements with discounts for common commodities and services. The investigation, initiated by the university last July, includes UC Davis auditors and personnel officials, the UC Davis police department and the Sacramento district attorney's office. Radiology department records for the past five years are under review. "We have included our police department at every step in the investigation to ensure we haven't overlooked any possibility of criminal activity," Hamilton said. "At this point, there appears to be no evidence of criminal wrongdoing, but we have turned over our files to the district attorney's office for their further investigation." Hamilton said that, contrary to a news account published today, university policy does not prohibit the payment of honoraria to visiting professors from other UC campuses. Honoraria are permitted if payment does not exceed $1,000 and if non-state funds are used. The news story reported that the radiology department had paid honoraria of $300-$500 to visiting professors, suggesting that the payments were a breach of policy. "Because this is a personnel issue and a matter of ongoing investigation, we are necessarily limited in what we can say," Hamilton said. "But let there be no doubt that the university takes any suggestion of the mishandling of funds -- whether or not that mishandling is judged to be criminal in intent -- very seriously. We are reviewing our oversight procedures to best ensure that such activities as have been alleged could not occur in the future. We will take any corrective actions that may be necessary and appropriate."