They look so cute and innocent. How could they not be up to something?

Two brothers who collectively have about as much empathy as a vampire from blindsight

@Background Pony #1F4F
 
@HorsesandMuchMOAR
 
||  
I’m not exactly sure how funds for places like universities or even private businesses work, but I assume that there’s a difference between funds allocated to the university itself and what Flim and Flam would actually earn as headstallions. The latter can be used to expand their resort (since that’s their money, they can do whatever they want with it), while the former would be fraudulent use if they did such a thing (especially since they claim all the expenses go towards supplies and school maintenance- pretty sure that’s straight up lying).
 
As for charging for the materials, obviously it’s not illegal to overcharge on something but it definitely can seem morally suspicious if they claim those expenses are used to improve the school. Plus I’m pretty sure there’s something wrong with charging less for Starswirl while making a regular stallion lose his shirt just to pay for the same materials.  
||

@Background Pony #1F4F  
I won’t argue with that, but it still doesn’t let Flim and Flam off the hook.

@Background Pony #1F4F  

 
Actually they misuse the money for their resort.

@Background Pony Number 17  
Also known as university.

@Background Pony #1F4F  
Money earned fraudulently.  
Learn in half the time? Only because we’re only teaching half the prescribed coursework.  
Free tuition? Sure, but the study materials will cost you the shirt off your back.

@HorsesandMuchMOAR  
Don’t ever spend money you earn on your own property, children. That’s evil!

@Background Pony #1F4F
 
Because they used the school funds mostly to expand their own theme park.

GDI if they aren’t cute though

They’re spending money they earn on their own school.  
Remember children: that’s evil!