In today's editions. Essential pull-quote:
CapRadio’s Board of Directors, Sacramento State and the CSU system had policy failures that delayed detection of Reina’s spending. They failed to prevent or stop questionable transactions that documents show to have occurred for about six years. Here are the key findings:
The nonprofit’s auditors did not flag Reina’s reported behavior for years.
- Reina reported to CapRadio’s board, but its members did not review his expenses, according to a former board chair.
- Sacramento State allowed “select auxiliaries,” which included CapRadio, to manage their own day-to-day financial operations while the CSU provided oversight, according to a spokesperson. The CSU’s policy for auxiliaries says the university president provides oversight.
- CSU audits had flagged for more than two decades that CapRadio’s financial practices had problems. Despite those warnings, Reina’s behavior continued unchecked.