Editors Note: Andrade-Dominguez stated that CPR currently has internships between itself and Sac State, but at the date of publication its internship program is currently suspended.

An audit released by the California State University detailed several issues with Sacramento State’s auxiliary organization CapRadio, CPR, on Wednesday.

The audit team found several issues with the organization’s administration, financial operations and recordkeeping. Additionally, the report showed that CPR has not paid rent to the University for its on campus location since its lease was terminated in September 2022.

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According to the report, the lease was terminated due to plans for CPR to move to its new downtown location around that time but has yet to move due to construction and delays. The audit recommended Sac State consult with CPR to establish an arrangement for continued use of the facilities, including required rent or other documented exchange of value.

The report also revealed the University loaned $8 million to aid CPR with improvements for its downtown location. According to the report, CPR’s last loan payment was in November 2021, currently being behind in payments by over $1.8 million.

Additionally, the report found CPR has been directing donations to an unauthorized endowment fund via a separate legal entity, CPR Endowment Inc. The organization is meant to direct these donations to the University Foundation at Sac State, the designated auxiliary for investing funds for the school’s benefit.

Nataly Andrade-Dominguez, Sac State’s ASI President, sits as a member of the CPR Board of Directors as a student representative. She said it will cost Sac State “in the millions” to repair the damage that has been done.

“It’s one of the worst audits that the CSU has seen in years,” Andrade-Dominguez said. “Maybe even in decades.”

According to a statement from University Communications, the audit was requested by former President Robert Nelsen in 2022 after Sac State’s financial team noticed discrepancies in financial statements.

“The financial implications of CapRadio’s mismanagement have significant consequences for Sacramento State, but we will make it through,” President Luke Wood said.

According to the university’s statement, the management of CPR will fall directly under University supervision, while the programming of its National Public Radio affiliate will remain independent.

In a video uploaded to Instagram, Wood revealed that, based on an internal analysis of CapRadio’s budget, the auxiliary would likely have no financial resources by January. He said the university’s financial and organizational aid to CapRadio would not affect the school’s ability to serve the campus community, and money for this aid would be coming from the university reserve fund.

Additionally, Wood said he has acknowledged that this process will be a difficult time for current staff.

“CapRadio has been part of the fabric of Sacramento and northern California for decades,” Wood said. “It is important to us to maintain the health and integrity of such a valuable and beloved media institution.”

Andrade-Dominguez said the university was doing what it could to make sure the effect on students and the university as a whole was minimized.

“I know there are internships connected with CPR and Sac State,” Andrade-Dominquez said. “I know this sounds really scary and sounds like Sac State isn’t a good school to go to but it’s a lot of logistics that go into campus auxiliaries.”

Wood said the audit showed the university there was a significant issue with management of CapRadio that needs to be addressed.

“The audit means we see there’s a pretty serious issue with the management at Capital Public Radio, ” Wood said to The State Hornet. “The organizational infrastructure in terms of leadership we’re bringing into Sac State, so that we can have better control to make sure these kinds of things don’t happen in the future.”

Additional reporting by Joey Aguirre and Mercy Sosa.
This story has been updated with a statement from President Luke Wood.