Dive Transient:
- A state audit of worker spending practices on the Connecticut State Faculties and Universities system discovered a number of monetary transactions that broke college insurance policies or lacked satisfactory documentation.
- Comptroller Sean Scanlon detailed over $19,000 in spending on meals by system Chancellor Terrence Cheng in fiscal years 2022 by 2024, by far the vast majority of spending on his institutional bank card. Violations included lacking receipts, lacking visitor lists and purchases of restricted objects like alcohol.
- Scanlon’s probe got here at Connecticut Gov. Ned Lamont’s request after CT Insider reported Cheng spent lavishly on meals with a state-funded bank card over the previous few years.
Dive Perception:
The report from CT Insider alleged that Cheng had spent as a lot as $1,114 at eating places in per week, and paid for personal chauffeurs regardless of accessing a state-provided automobile on the time. As soon as, he spent practically $500 for the service, the outlet reported.
Scanlon’s workplace concluded that “whereas not technically violating state or college coverage, we discovered that, within the absence of sound, complete insurance policies, the Chancellor utilized poor [judgment] when making P-Card purchases that had been particularly troubling given the monetary stress on the CSCU system.”
The audit zeroed in on spending on meals and transportation by the chancellor. Meals designated as enterprise conferences accounted for 70% of the spending on the official’s card, and a few transactions exceeded the $50 meal restrict for system staff, the audit discovered. It additionally discovered 18 meals purchases with suggestions deemed extreme — above 22% — which the report famous “just isn’t a coverage violation however a questionable use of college funds.”
Of the chancellor’s food-related transactions reviewed by the comptroller’s workplace, 43% had both no itemized receipts or had been lacking receipts totally.
Amongst different violations had been 30 cases the place Cheng paid gross sales tax. That’s a violation of coverage as a result of institutional bank cards — often known as P-cards — are exempt from gross sales tax however should undergo a course of with distributors to credit score these taxes.
Nevertheless, the comptroller discovered that Cheng didn’t technically violate coverage as a result of as chancellor he can “override the coverage at his personal discretion.”
As for chauffeur use, the report famous 3 times when Cheng — who lives in New York state — paid for a personal automobile service together with his P-card, together with two journeys much more costly than the one reported by CT Insider. Scanlon decided that these companies didn’t symbolize violations however stated that they “are of observe because the Chancellor was supplied with a state automobile for his or her use.”
In an emailed assertion Thursday, Cheng stated that he appreciated the audit’s thoroughness and that the system is “dedicated to implementing stronger controls, insurance policies, and complete coaching.”
The system overview additionally discovered points with P-card use by different leaders, together with the interim president of Southern Connecticut State College, Dwayne Smith. The audit discovered that Smith’s P-card “reveals all kinds of infractions spanning virtually each class of restricted buying and failure to comply with most of the coverage necessities for documentation and reporting of transactions.”
Particularly, the comptroller’s workplace faulted Smith for failing to maintain receipts, in addition to buying tickets to an outdoor soccer recreation with out stating its enterprise objective, amongst different points.
In an emailed assertion, Smith thanked the comptroller for his evaluation and suggestions, including that lots of his workplace’s P-card transactions relate to his group engagement actions.
“These conferences have yielded important assist for our scholarship applications, internships, mentoring, and finally, enhanced job alternatives for our graduates,” Smith stated.
Scanlon’s audit discovered many different points throughout the Connecticut faculty system’s workers. His workplace’s report lists 10 really helpful adjustments the system ought to make, together with reinstating inner audits, establishing a central coverage for P-card use, creating accountability measures for card misuse and establishing a coverage for automobile use.
“Sadly, this audit revealed troubling gaps in oversight and questionable spending practices,” Scanlon sassist in a Wednesday assertion. “Our suggestions present a transparent path ahead with extra complete insurance policies, constant enforcement, and larger general accountability.”
In his assertion, Cheng stated the suggestions would “assist the purpose of accountability and transparency throughout the system.”
He added, “The system has begun to take steps on this path and over the subsequent 100 days, I’ve instructed my workforce to implement suggestions to enhance compliance and reporting.”
The system’s governing board this fall moved to extend oversight of spending in its central workplace. As a part of that course of, the system just lately employed a brand new chief compliance officer and authorized counsel.
