Financial audit finds widespread mismanagement at Sacramento NPR station, Capital Public Radio
SACRAMENTO -- A scathing audit says there has been widespread money mismanagement at Capitol Public Radio (CapRadio) in Sacramento.
Now, Sac State is taking over the finances and management of the publicly supported NPR station. How do CapRadio and Sacramento State work together? It says it on the sign, the station is licensed here, and with that, come rules and guidelines. After the recent audit, the space will benefit Sac State students even more.
"And we do have certain oversight responsibilities," said Brian Blomster, Sac State's director of news and communications. "And the audit shows that we need to strengthen those, and that's what we're going to do and what we are doing."
Sacramento State isn't a parent to NPR station CapRadio; it's a partner, according to the university's leadership.
A scathing audit found financial mismanagement within the station.
"But the main thing is, it's a valuable commodity; it's valuable for the community, but it's also valuable for the university, and it's going to become more valuable for the university," said Blomster.
The 33-page audit out Wednesday revealed multiple failures in management, like a $1.1 million loan for studio equipment taken out without CapRadio's board approval. The audit says CapRadio wasn't doing enough to get students involved in its operations, which is a key part of a campus broadcast organization. And, in a review of 20 cash receipts randomly picked, 18 did not have adequate documentation.
Blolomster says that'll be fixed as a result.
"Donors should be confident that we're making moves that will continue to honor their commitment to Sac public radio because they really help make it go," said Blumster.
Also, two construction projects now underway are set to open this fall.
In a statement to CBS13, CapRadio says these construction projects will be done early next year.
They also tell us, "Donors should feel confident moving forward that their contributions will be well managed, given the changes the CapRadio board and Sac State leadership are putting into place."
Just last month, CapRadio laid off 12% of its workforce, citing financial challenges. They've also brought in a longtime public broadcasting executive as their interim general manager to help get their finances in order.