Connecticut Comptroller Sean Scanlon on Wednesday released an audit into spending by leaders and staff of the Connecticut State Colleges and Universities system, finding a pattern of “poor judgment” and lack of oversight.
“What we found were inappropriate spending, disregard for financial practices and procedures, inadequate reporting, misuse of state property, and, above all, poor judgment,” Scanlon told reporters at a Hartford press conference.
The audit was spurred by a request from Gov. Ned Lamont following reports of questionable spending by CSCU Chancellor Terrence Cheng. Scanlon said Wednesday the problem is deeper than Cheng’s spending alone.
“This was a systemic problem among not just one person or two people, but many people,” Scanlon said. “I think it was a lax attitude towards the use of taxpayer dollars.”
The audit report finds purchases of expensive meals, alcohol, sports tickets, dry cleaning and more were made using state credit cards, which Scanlon said was, “in some cases, a shocking and tone-deaf display.”
In the case of Cheng, the auditors “determined that the Chancellor did not technically violate policy because as Chancellor, the policy permits him to override the policy at his own discretion.”
Scanlon said the findings come at a troubling time, given CSCU’s ongoing budgetary issues.
“I think the things that we found are concerning and should be concerning to the taxpayers of Connecticut who are getting a tuition increase bill for their son or daughter that goes to [Western Connecticut State University], who had their son or daughter’s major curtailed because they had to cut back on faculty for these programs, or wasn't able to start a nursing program because of these cuts,” Scanlon said. “I was frustrated to read this. I think the taxpayers will be frustrated to read this, but I also believe in this system, and I believe that we need to safeguard it for the future use of future generations of Connecticut kids.”
The release of the audit report triggered a response from lawmakers and CSCU.
State Sen. Stephen Harding and Rep. Vincent Candelora, leaders of the Republican minorities in their respective chambers of the General Assembly, called for Cheng’s firing.
“His continued leadership over a system in clear disarray undermines efforts to restore stability and confidence among students, parents, staff, and taxpayers alike,” the leaders said in a statement.
State Rep. Gregg Haddad and Sen. Derek Slap, Democrats who co-chair the General Assembly’s Higher Education Committee, said they would use the upcoming legislative session to “improve accountability within the CSCU system.”
David Bednarz, senior press secretary to Gov. Lamont, said the governor appreciates the efforts of the comptroller.
“A preliminary review of this audit makes it clear that policies regulating spending at higher education institutions need to be strengthened, and the recommendations it contains appear to be sensible and deserve serious consideration,” Bednarz said in a statement. “The public and the students attending CSCU schools deserve complete transparency into how public funds are being utilized.”
In a statement of his own, Cheng said he, too, “appreciates” the comptroller’s report.
“We are reviewing the recommendations and findings from the Comptroller’s Office and are committed to implementing stronger controls, policies, and comprehensive training,” Cheng said. “These recommendations will support the goal of accountability and transparency across the system and protect taxpayer dollars and student funds. The system has begun to take steps in this direction and over the next 100 days, I’ve instructed my team to implement recommendations to improve compliance and reporting.”
The report’s recommendations include regular internal audits by CSCU, a centralized policy for the use of state credit cards, systemwide training on spending policies and procedures, and enforcement against those who misuse credit cards.
Scanlon said while the auditors did not discover anything that would warrant a referral for criminal investigation, the Connecticut Office of State Ethics would be independently investigating whether or not any state ethics laws were broken.
