JACKSONVILLE, Fla. -- The University of North Florida said a loan it made four years ago to the university-connected Museum of Contemporary Art was permissible at the time, but is no longer allowed.
The State of Florida Auditor General pointed out in an audit released earlier this month that none of the $500,000 loan has been repaid as of June 2012.
Sharon Ashton who is the Vice President of Public Relations for the university says MOCA will begin to repay the loan once the economy improves and business picks up.
The museum is located Downtown adjacent to the city's Main Library.
The university is a direct-support organization to MOCA and made the no interest loan to cover operational expenses.
"When we made the loan it was allowed," said Ashton.
"The Board of Governors change the regulation and it was not longer allowed," said Ashton pointing out that changed happened in the spring of 2011.
First Coast News