California State University Releases Audit Report of CSU Risk Management Authority
July 24, 2013
A review of the California State University Risk Management Authority (CSURMA) by the university’s internal auditor as requested by Executive Vice Chancellor and Chief Financial Officer Ben Quillian revealed questionable charges relating to travel expenditures by a risk management staff member. The audit also calls for improvement in CSURMA’s fiscal administration and documentation of its policies on information security systems, as well as other recommendations. The CSURMA is a joint powers authority composed of the CSU and its auxiliaries to protect member resources by providing insurance coverage and risk management services.
“The CSU places great importance on funding provided by the state and our students and it is critical that we use each and every dollar in the most appropriate way to serve students and fulfill our mission,” said CSU Chancellor Timothy P. White. “The findings of our internal audit point to an inappropriate use of dollars by an employee. We will review our travel policies and practices to minimize any possibility of recurrence.”
The audit, authorized by the Board of Trustees and conducted by the CSU Office of the University Auditor from September 2012 to January 2013, uncovered travel expenses for a CSURMA employee that were often questionable in terms of their appropriateness and business necessity and did not always appear to have clear or demonstrable benefit to CSURMA or the university. Many of the ineligible or questionable expenditures have already been reimbursed by the employee, and the university is currently reviewing further appropriate action.
The report also recommended development of a written policy for nominating and electing the CSURMA executive council officers, updating systemwide policies relating to the CSURMA and increased oversight of CSURMA’s fiscal administration.
To address the report’s recommendation regarding control of travel expenses, the CSU has already put in place policies to ensure the frequency and duration of travel is necessary and will continue to implement several of the additional recommendations provided by the report.
The full audit report can be found here.
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