The director of design and construction management at Morgan State University in Baltimore has resigned amid findings by a legislative auditor that the college violated state regulations in multimillion-dollar deals with a private contractor. The university has acknowledged adding a $3.1 million allowance into its bid for a 2005 contract and then using $2.6 million of the surplus funds to pay Whiting Turner Contracting for cost overruns on four other campus projects without getting state approval. The Morgan State construction manager, Peeter Kiik, resigned Jan. 21