Problems at Cal State Fullerton

A lengthy investigation of Cal State Fullerton has uncovered questionable expenditures and money transfers that administrators need to explain. The state Auditor’s Office, which conducted the investigation, rightly noted that some of the problems it found might not amount to much individually, but taken as a whole are more serious.

The report by the Auditor’s Office characterized the problems as adding up to “serious mismanagement.” The school’s president rejected that phrase, preferring to concede “errors of judgment and mistakes in some instances.” To his credit, he recognizes that the errors were serious. The school commissioned its own outside audits to spotlight problems.

One problem dated to 1993 and the establishment of the fund-raising University Advancement Foundation without obtaining the approval of the university chancellor, as required by law.

In another instance, the business division of the school put more than $200,000 in unspent funds into another account rather than return the money to the state’s general fund.

Then there was the matter of university employees spending $104,000 in donations on food, flowers, entertainment, parties and gifts from July 1994 through June 1998. The money should have gone for educational uses.

The foundation also paid $6,000 for a laptop computer for a retiring Cal State Fullerton administrator and more than $2,000 in finance charges for credit cards held by officials in the university advancement and president’s offices.

The Fullerton campus is one of the fastest-growing in the Cal State system and properly prides itself on adapting to the immense changes in technology in recent years and training students how to use that technology to their advantage.

The school depends on the taxes of California residents, as well as the extra money it can raise from contributions by alumni and friends. Spending donations on questionable activities could make donors think twice about giving more money. The school says it hopes that filling the vacant position of internal auditor will help avoid similar problems down the road. Officials have to ensure their financial activities conform to state law and that there is no question as to the merit of the expenditures.