Sacramento State is instituting changes in financial oversight and management for University auxiliary Capital Public Radio (CapRadio) in response to findings from an organizational audit released by the California State University (CSU) Office of Audit and Advisory Services.
The CSU audit reveals substantial problems within the auxiliary, which operates as a popular public broadcasting outlet. Given these findings, operational management of CapRadio will be placed directly under University supervision, while the news and entertainment programming of the National Public Radio affiliate will remain independent.
This course of action is designed to address and resolve areas of significant mismanagement and lax accountability within the auxiliary that are highlighted in the CSU audit.
The findings detail long-standing issues, including a lack of financial and governance processes and protocols, lines of credit and loans secured without campus approval or CapRadio Board of Directors awareness, submission of inaccurate or incomplete financial information to the board, the Corporation for Public Broadcasting, external auditors, and the University, and much more. Sacramento State’s financial team recognized discrepancies in financial statements and then-President Robert S. Nelsen subsequently requested the CSU organizational audit.
“I want to thank President Nelsen for requesting the audit last year, adding Sac State’s chief financial officer to the CapRadio board, and for committing the resources necessary to stabilize the station’s operations,” said President Luke Wood, who began his leadership of Sacramento State in July 2023. Nelsen requested this audit in 2022.
“One thing is abundantly clear: We have real and immediate work to do to ensure CapRadio’s financial controls and operational processes are disciplined, sound, and transparent going forward. The financial implications of CapRadio’s mismanagement have significant consequences for Sacramento State, but we will make it through,” Wood said.
“Now is the time for the community to continue its support for CapRadio. Given the changes the University and CapRadio board are putting into place, donors should feel confident moving forward that their generous contributions will be well stewarded.”
Although Sac State holds CapRadio’s broadcast license, what began as newsroom independence has evolved over the years into an organizational divide that must be remedied, Wood said. The University and CapRadio Board will work collaboratively to address the issues raised in the audit.
This course of action is designed to address and resolve areas of significant mismanagement and lax accountability within the auxiliary that are highlighted in the CSU audit.
The findings detail long-standing issues, including a lack of financial and governance processes and protocols, lines of credit and loans secured without campus approval or CapRadio Board of Directors awareness, submission of inaccurate or incomplete financial information to the board, the Corporation for Public Broadcasting, external auditors, and the University, and much more. Sacramento State’s financial team recognized discrepancies in financial statements and then-President Robert S. Nelsen subsequently requested the CSU organizational audit.
“One thing is abundantly clear: We have real and immediate work to do to ensure CapRadio’s financial controls and operational processes are disciplined, sound, and transparent going forward. The financial implications of CapRadio’s mismanagement have significant consequences for Sacramento State, but we will make it through,” Wood said.
“Now is the time for the community to continue its support for CapRadio. Given the changes the University and CapRadio board are putting into place, donors should feel confident moving forward that their generous contributions will be well stewarded.”
Although Sac State holds CapRadio’s broadcast license, what began as newsroom independence has evolved over the years into an organizational divide that must be remedied, Wood said. The University and CapRadio Board will work collaboratively to address the issues raised in the audit.
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