As Sacramento’s Capital Public Radio releases the results of the latest audit highlighting significant financial mismanagement, it has come to light that the Sacramento County Sheriff’s Office is now involved over vague payments and potential conflicts of interest.
This review, conducted by CliftonLarsonAllen and released by Sacramento State, follows a previous audit that revealed a pattern of poor recordkeeping and inadequate oversight at the station, which resulted in a $1.8 million backlog of payments due to the university and more than $1.1 million in lease agreements lacking proper board approval.
The new forensic report – which is heavily redacted due to the ongoing Sheriff’s investigation – discovered $774,000 in unsupported payments, with around $460,800 lacking expense reports or receipts. The report also noted a possible conflict of interest involving a board member’s spouse who had an interest in a property CapRadio intended to lease for its new headquarters.
In a statement to students, faculty, and staff, Sacramento State President Luke Wood, “If you are like me, you will find the facts presented in CLA’s report deeply concerning. It is absolutely unacceptable that any public organization–particularly one connected to our university–could be so poorly mismanaged.”
Sacramento State holds the licenses for CapRadio’s stations, KXJZ and KXPR, and oversees operations for North State Public Radio, owned by Chico State.
Wood continued, “The good news is that CapRadio has experienced a remarkable turnaround thanks to the dedication and hard work of so many across Sac State and CapRadio. Membership support is up 9%, average weekly news listenership has increased by 35%, new CapRadio board leadership is in place, and interim General Manager Frank Maranzino continues to champion a new day and a new culture for CapRadio in partnership with station staff.”
Interim CapRadio President and General Manager Frank Maranzino added, “This has been a challenging journey for everyone at CapRadio — and everyone in the community who cares deeply about local public media. With the support of our community, CapRadio is in the midst of an inspiring turnaround story that includes stabilizing our finances and operations, improving and expanding audience services, and significantly growing listenership and engagement. I want to express my immense gratitude to Sacramento State President Luke Wood and his team, past interim General Manager Tom Karlo, CapRadio staff and board, our members, and everyone who has remained steadfast supporters of our public service mission.”
