State auditors say some University of Oregon employees were allowed to use overtime to get around money-saving furlough days and pay freezes.
The Secretary of State's Office released the report on Thursday.
Auditors found problems on the time sheets for 13 employees of the Institute of Neuroscience. Auditors say furlough days were recorded when the employee was actually working, and overtime was recorded to offset the impacts of the unpaid furlough days.
The audit says emails confirmed that payroll personnel would add overtime to the time sheets if employees forgot to do it.
Auditors say university leadership should have more involvement in payroll decisions.
An administrator says in a letter that the university agrees with the recommendations and is taking steps to correct the problems.