LITTLE ROCK — The University of Arkansas said Thursday it will use reserve funds and private contributions to eliminate a multimillion-dollar deficit in its fundraising division’s budget.

A legislative audit report released in September said poor fiscal oversight and a failure to follow university policies led to a $4.19 million budget deficit in UA’s advancement division over the 2011 and 2012 fiscal years. Brad Choate and Joy Sharp resigned last February as the division’s vice chancellor and budget director, respectively, after the deficit became public.

In a news release Thursday, the university said it will use contingency reserve funds to keep the division funded through the end of the current fiscal year. It also said it will use some of the contributions collected through a fundraising campaign that is already underway to balance the division’s budget and repay the reserve fund.

The deficit already has been reduced by $1 million and will be eliminated, with a combination of reserve and private funds, by the end of the fiscal year on June 30, the university said.