Editor’s Note: At 5:30 p.m. Aug. 8 the independent examination was taken down and replaced with a statement that reads: “CliftonLarsonAllen is making corrections and clarifications to the forensic examination of Capital Public Radio. An updated version will be posted as soon as it is available.”
Sacramento State released an independent forensic examination of Capital Public Radio, a follow up to a September 2023 audit conducted by the California State University which resulted in comprehensive changes to CapRadio’s leadership.
CliftonLarsonAllen LLP was commissioned by Sac State to dive into the “significant financial discrepancies and organization deficiencies” uncovered by the CSU audit.
RELATED: BREAKING: CSU audit uncovers CapRadio’s unpaid rent and loans
Per CLA’s report, an unnamed former executive, Subject #1, and multiple board members spent a total of $774,703.05 in “unsupported payments.” Of this, the documentation for over $307,000 in these payments could not be located, or were unavailable to the investigators.
The investigation is part of Sac State’s five-point plan to stabilize financial affairs, management, and operations at CapRadio. In a statement, President Luke Wood said he is committed to supporting CapRadio’s mission and future growth.
“While the findings are deeply troubling, they guide us to ensure history doesn’t repeat itself,” Wood said. “I’m proud of CapRadio’s progress, achieved thanks to the dedication of so many across our campus and community. CapRadio is a public asset and regional treasure that will continue to thrive.”
CapRadio’s board of directors now has 17 new members. After the stabilization of “core operations,” interim president and general manager Tom Karlo stepped down in February 2024, replaced by Frank Maranzino in March.
Maranzino has overseen CapRadio’s ongoing turn-around effort, which include resolving unpaid invoices, increasing listenership and support, and the early completion of 5 out of 7 vendor payment plans established in March 2024. In addition, a new internship program with Sac State is being launched for the upcoming fall semester.
“We have more work to do,” Maranzino said. “But I am incredibly proud of how far CapRadio has come over the last 12 months.”
