Sac State temporarily removes CapRadio audit as firm makes ‘corrections and clarifications’
Sacramento State on Thursday evening removed from its website an audit into Capital Public Radio’s finances, stating that one of several former board members described as having a “possible conflict of interest” was not a board member at the time of the transaction that was flagged. The university said it would post a corrected version of the audit “as soon as possible.”
The university hired accounting firm CliftonLarsonAllen to conduct the independent forensic examination into CapRadio, which is an auxiliary of Sacramento State. That report was released publicly Monday, posted by Sacramento State to the school’s website.
The 36-page report was then removed from the webpage.
“CliftonLarsonAllen is making corrections and clarifications to the forensic examination of Capital Public Radio,” a message at the URL where they audit had been posted read, time-stamped 5:30 p.m. Thursday. “An updated version will be posted as soon as it is available.”
The updated audit had not been posted as of 4 p.m. Monday. The message posted publicly to the website did not include further information about the nature of the corrections and clarifications.
“Clarifying information has been brought forth that the individual referenced in the CLA forensic examination report as ‘Board Member #5’ was not a member of CapRadio’s Board of Directors at the time of the transaction in question, as was initially stated in the CLA report,” university spokesman Brian Blomster said in statement emailed to The Sacramento Bee.
“Sac State has removed the CLA report from its website while CLA makes corrections and clarifications. An updated version will be posted as soon as it is available.”
The names of five board members mentioned as being tied to contracts posing “possible conflicts of interest” were redacted. A Bee story Wednesday identified those five members, including Steven Weiss, the founder of a consulting management firm called The Weiss Group.
After that story was published, Weiss in an email on Wednesday to The Bee said the audit “contains inaccurate information” and that the indication he or his firm had a conflict of interest was “factually wrong.”
Before it was removed, the audit stated that The Weiss Group planned a retreat held by the CapRadio board in 2019. Weiss said he was not on the board of directors at that point; he served a term on the board that ended September 2018 and rejoined the board in fall 2020.
“At no time as a member of the Board of Directors did I or The Weiss Group provide any professional services for compensation,” Weiss wrote Wednesday. “My term on the board concluded in September 2018. I facilitated one board retreat in September 2019, well after my departure date from the board.”
On Thursday, Weiss said he was “disappointed and surprised” to see his firm’s mention in the audit. Any mention of himself or his firm could have been avoided had auditors called or emailed him to ensure accuracy, he said.
“At no point did this auditor — through this several month process — ever place a call or send me an email to fact check” this audit, Weiss said.
Weiss also said the audit may have real consequences.
“I am very disappointed that by including inaccurate information, the audit attempts to damage my and my firm’s reputation, impugn my integrity,” he said.
Weiss said he’s been in contact with CliftonLarsonAllen, who told him he must contact Sacramento State with any of his concerns. He declined to comment on any interactions he had with the university about the audit but said he’s hopeful the decision to correct it came about with the knowledge an egregious error had been made.
Officials with CliftonLarsonAllen could not be immediately reached for comment. A call to the firm’s office Thursday evening redirected to a voicemail message saying it was closed for the day.
“We’re working on it as quickly as we can,” Blomster said. “CLA is working as quickly as they can to get it back on the website and public.”
A separate section of the audit released Monday — months later than initially planned — flagged that an individual, referred to as “Subject #1,” was tied to at least $460,800 in credit card payments “without corresponding evidence of expense reports and/or receipts.” That person had at least some influence over the station’s finances, according to the review.
University President Luke Wood in an email to campus Monday said the audit’s redactions were included due to “a related investigation by the Sacramento County Sheriff’s Office.”
This story was originally published August 8, 2024 at 8:33 PM.
