Getting paid by the U but working for a nonprofit - is this a type of misconduct

[Dismal]

Your title included "misconduct". This is a statement that his position be eliminated for budgetary reasons.

Yes, I think we all agree that the question in the subject line has been answered.  The answer is No, it is not misconduct.  Pursuing that complaint would have made me took nutty.  Yay for the fora!