The regents' report says Brems was aware of the circumstances regarding the parade float. It also says he was "the architect, primary promoter and sole beneficiary" of an early retirement/transition package he received upon transfer and developed an endowment that was inconsistent with the rules.

Brems said the early retirement package he was awarded was not disputed by other leaders in higher education at the time of its conception, and that he accepted it believing it "was consistent with their observations and guidance."

He said the endowment was set up with an understanding that Internal Revenue Service code allows for "quid pro quo contributions," including both a donation and a service provided by the donor. He said he would make any necessary corrections.

The regents' report indicates Brems' actions "raised serious ethical questions," and a determination of whether he violated laws will be left to legal counsel. Brems said he "had no intention to violate any statute or policy."

No other items of concern were discovered during the process of either review.

Internal and external auditors were enlisted to perform each review, which does not imply a comprehensive investigation. Both reports examined state auditor working papers, UCAT and MATC business records, and interviews with administrators and staff from both UCAT and the MATC.

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E-mail: wleonard@desnews.com