Employee Debt to CSUN Not Repaid

The cash-strapped Cal State Northridge campus advanced employees more than $500,000 in salary and travel expenses that went unpaid and little noticed for several years until state auditors flagged the outstanding debts during a routine audit.

Most of the money was paid to administrators and other employees in the form of salary, travel and so-called hardship advances, according to auditors responsible for the published report, prepared for the California State University Board of Trustees.

Another $162,875 was owed CSUN by its campus subsidiaries, such as the Associated Students and the CSUN Foundation, bringing the total debt to $675,563, auditors found.

Campus officials say about 600 CSUN employees received advances, mostly paid between 1991 and 1994.

Since the audit was released a year ago, very little has been repaid, CSUN officials said Thursday.

At the urging of CSU officials, more than half of the CSUN debt has been eliminated, mostly by declaring loans uncollectable, school officials said.

Arthur J. Elbert, CSUN vice president of finance, said in a statement that despite the “small amount” owed, “it’s very important to safeguard the taxpayers’ funds. That’s why we have taken steps to clear this up. There is no question in my mind that these issues will never happen again.”