CSUN President Orders Probe of Unpaid Debts

The president of Cal State Northridge has ordered an internal investigation into the school’s failure to account for most of the $675,563 in advances to employees and campus organizations that went uncollected and virtually unnoticed for years until flagged by state auditors.

Acknowledging that the disclosure in The Times of the unpaid debts has raised questions about the school’s stewardship of public funds, Cal State Northridge President Blenda Wilson asked the university’s top financial administrators to give a full accounting of the unpaid debts by May 9.

Auditors of Cal State University found that CSUN had paid hundreds of employees $512,688 in salary, travel and so-called hardship advances through the end of the 1994-95 school year. In addition, several campus auxiliaries, including the University Foundation and Associated Students, owed an additional $162,875.

Most of the money has not been reimbursed.

At the urging of Cal State auditors, the Northridge school last year reduced the amount of the bad debts to $338,958, mostly through write-offs, campus officials said. The write-offs are now the subject of dispute between the school and the State Board of Control, which by law must approve the cancellation of debts owed to state agencies.

University officials said about $275,000 of the debt originated from so-called hardship allowances to employees needing quick cash for emergencies such as auto accidents and earthquake repairs. Payroll advances accounted for another $150,000, totaling $425,000 in salary and payroll advances owed by 600 employees. Travel advances made up the rest of the employee debt.

As of mid-April, the salary and payroll debt had been reduced to $193,000 owed by 180 campus workers. School officials say they cannot say exactly how much of the original debt was written off.

Wilson, in a campus memo issued Thursday, said she has asked Arthur Elbert, CSUN vice president for administration and finance, and Robert Kiddoo, interim controller, for an accounting of “collections to date, and the current balance of outstanding and/or uncollectable payroll, salary and travel advances.”

In her memo, Wilson referred to the April 18 Times story on the outstanding debts and noted: “It goes without saying that the university accepts a responsibility to manage public resources in strict compliance with university, system and state policies. The requested report, and any decisions which result from it, will reaffirm our commitment to strong financial responsibility.”