Competitive bids are required for state construction projects exceeding $50,000, and bid splitting to avoid the limit is forbidden by law.
Devane told The Oklahoman on Friday that a “construction management process” was used for the project, and he doesn't believe the law was violated.
The BKD financial report also criticized the relationship between Redlands and contractor Cody Tankersley, who worked on the Darlington Annex and several other projects, noting he was paid as an employee of the college as well as his company being paid for work performed.
McColl delved further into the issue Monday night saying records show Tankersley was paid as an instructor of administrative services, which would lead regents to believe he was working as an instructor rather than a construction manager.
Devane blamed the questionable arrangement on former Vice President of Finance Karen Boucher, who died Feb. 1.
“That was basically between the two of them,” Devane told regents Monday.
The BKD report, however, said auditors found notes attributed to Boucher that indicated she repeatedly questioned Devane and Tankersley about the Darlington Annex contract because she thought it was improper.
Devane said Redlands has severed its relationship with Tankersley.
Representatives of the Oklahoma State Regents for Higher Education have given Redlands Regents until Aug. 16 to develop a revised budget for Fiscal Year 2014 that addresses the college's financial problems and provides a repayment plan for all its outstanding obligations.
Devane said Friday that personnel reductions will need to be part of the plan because payroll accounts for a high percentage of Redlands' budget.
Spring enrollment at Redlands was about 2,350 students.