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Posted: 2018-02-23 13:15:00

The Moet and Chandon sticker on the water cooler suggested staff at the student recruitment office of Sydney University had champagne tastes.

Internal documents now reveal the student recruitment unit overspent its budget by more than half a million dollars just halfway through the academic year in 2017.

News of the budget blowout follows the launch of an internal university investigation into 21 staff for alleged inappropriate spending on corporate credit cards.

Internal documents obtained by Fairfax Media suggest the Global Student Recruitment and Mobility unit was running $513,500 over budget for non-salary items as at July last year, including $414,000 for international services. The budget for the recruitment of international students in America was $154,000 in the red.

Individual spending items under investigation include a $669 bill for a meal "predominantly alcohol" with staff and student ambassadors at the Opera Bar on January 8 last year. The staff member who charged the expense to a corporate credit card was paid more than $212,000 last year and is among the staff being investigated.

Expenditure items also include $446.89 on June 10, 2016 for food from Woolworths for an internal staff function, including $300 worth of Woolworths gift cards.

Among other items under review is $399 spent on Bose travel headphones and $212.99 for new luggage.

An internal staff lunch meeting at Contraband for $239 on May 6 last year and food from Sweet Belem for a "monthly birthday celebration" which came to $88.70 are also among items being investigated.

A staff member who spoke to Fairfax Media on the condition of anonymity said the student recruitment office had a reputation for spending lots of money on alcohol and international travel. It was also known for fancy dress theme parties including Bollywood versus Hollywood.

Fluffy Duck cocktails were among alcoholic beverages served at Friday afternoon drinks on a ping pong table in the student recruitment office, which also had a massage chair.

The department's water cooler was covered with a large Moet and Chandon sticker.

"It was a big drinking culture and felt like the stock exchange in the '80s," the staff member said.

"They were getting junior staff to make vodka jelly shots for their theme parties."

One staff member from the student recruitment unit was photographed in a Facebook post with the caption: "I work so I can afford the amount of alcohol required to continue going to work".

Another staff member has defended the spending, saying the student recruitment unit is a "high performing team" that helps generate more than $1 billion in revenue each year. The staff member said overseas travel was more effective in helping to recruit high-fee paying international students than a Skype call from Sydney. Friday afternoon drinks were justified as valuable for staff team-building. Provision of a table tennis table was said to be part of a corporate-style work culture, emulating companies including Google. A "corporate mentality" was said to be encouraged at the university from the top down.

Many staff in the student recruitment unit are paid salaries of more than $150,000. The team's former executive director was paid $359,113.

A staff member who did not wish to be identified said supermarket gift cards were often redeemed for alcohol for Friday afternoon drinks.

"Coles Myer gift vouchers were bought on corporate credit cards to buy alcohol to avoid detection," the staff member said.

University rules were updated this year and allow gift cards to be purchased as a reward for staff.

The university's 2018 expenses policy allows staff rewards, including alcohol, to be  purchased to reward individual achievement to a limit of $250 per staff member per year.

The staff member said the previous policy allowed $250 gift vouchers to be bought for students, not staff.

A staff member said University of Sydney Vice-Chancellor Michael Spence had presided over the loose spending of the student recruitment unit for years before launching an investigation in January.

"All units have always been required to report on expenditure which is overseen by the senior executive," the staff member said.

The turmoil follows the departure of the executive director of Global Student Recruitment and Mobility, Michelle Carlin, in September last year. It is not alleged that she is linked to the investigation of her former staff.

She told Fairfax Media she is confident the "high-achieving team have nothing to worry about".

"I’m not sure what the reason behind this is, but it is disturbing to see good people placed under this sort of stress when they have just been trying to do the best by the university and their results more than reflect this,” she said.

Ms Carlin's boss, Tyrone Carlin, stepped down from his position as deputy vice-chancellor (registrar) late last year to return to teaching and research. It is not alleged his departure is linked in any way to the investigation of staff.

While the two Carlins were not related, staff made jokes about the "Carlin Empire" and referred to Ms Carlin as "Princess Carlin".

Dr Spence sent an email to staff in October saying that he had accepted Professor Carlin's resignation.

"Tyrone has decided to step down from his DVC role at the end of this year in order to return to his substantive professorial position within the Business School," Dr Spence said.

"While it is sad to see him leave his current role, I am very pleased that he will be able to return to his teaching and research, and as such remain a valuable member of the university community."

Fairfax Media has sought comment from Professor Carlin, but he did not respond.

Professor Spence credited Professor Carlin for transforming student administration.

"His oversight of the implementation of a whole-of-institution student administration team completed the ambitious and demanding agenda of moving student administrative functions from faculties and schools towards an integrated, whole-of-institution delivery approach," Dr Spence said.

The student newspaper, Honi Soit, has written about problems that students have had in accessing the centralised student administration system.

In an unrelated matter, another deputy vice-chancellor, Professor Shane Houston, left his position last year. He has taken legal action over his dismissal as the University of Sydney's first deputy vice-chancellor for Aboriginal services.

A university spokeswoman said Dr Spence did not make his senior executive team appointments individually. She said both deputy vice-chancellor roles were advertised and decided by the University Senate.

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