This week, Doyle has said the institute will honor its commitment to the state by completing construction on the building before it leaves Rhode Island in September. The institute has not secured a new location yet, but it plans to make an announcement in May.

In addition to the buildings on the University of Rhode Island campus, the institute has established a peace center in rented office space on Lewis Street in Hartford. The center is devoted to exploring peace initiatives.

The institute also owned several properties on Bald Head Island in North Carolina, including two homes. While the property was meant to be an investment, the institute neither made money by renting the homes or from high property values.

The two homes and three of the four vacant parcels of land that the institute owned have now been lost to foreclosure. A bank is suing the institute over the last piece of property.

On Tuesday, a lengthy story about the institute's financial troubles and the pending audit appeared in The Courant. Hours after the story was published, Middlebury College in Vermont announced that Doyle resigned from his post at the school.

Doyle worked as the senior director of the Center for Social Entrepreneurship at the school. The center opened last month.

A college spokesman said Doyle resigned for personal reasons, but Doyle said it was always his intention to resign shortly after the center was established.

Later that day, a University of Rhode Island spokesman told said URI was breaking an agreement it had with the institute. Doyle's paycheck and benefits were processed by the university and then reimbursed by the institute. The university is now terminating that practice and any future employment opportunities that path through the institution, the university spokesman said, adding that URI is owed $380,000, including money it advanced to the institute for Doyle's salary.

The auditor's report states that the university has the right to force the sale of other real estate owned by the institute if the money is not paid, but it has not exercised the option.

Doyle had been listed as a Rhode Island state employee since 1986 and was currently on leave without pay due to his employment at Middlebury College.

"Use of the State's payroll system by the Institute was formalized in an agreement; however, we believe the practice is questionable and should not be continued or repeated," the auditor's report says. "It affords access to State benefit programs that would otherwise be unavailable to Institute employees. Further, it puts the University in an unintended business relationship with a private organization by advancing funds thereby creating a vested interest in their viability in order to collect amounts owed."

In addition to the state police, Rhode Island Attorney General Peter Kilmartin will look at the auditor's report about the institute. Amy Kempe, spokeswoman for the attorney general, said Wednesday that Kilmartin is aware of the report and will review it.