A scathing audit outlined spending by several top Connecticut State College and Universities officials that appeared to be for private use.
A scathing audit outlined spending by several top Connecticut State College and Universities officials that appeared to be for private use.
“It was a lax attitude toward the use of taxpayer dollars,” said Comptroller Sean Scanlon, who released the audit Wednesday.
The findings prompted calls from Gov. Ned Lamont and lawmakers from both parties for better financial controls and more oversight of the CSCU system, which oversees four state universities and 12 community colleges.
Lamont requested the audit back in October after a CT Insider investigation detailed expenses by Chancellor Terrence Cheng.
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Scanlon expanded his inquiry to review spending across the CSCU system, with a focus on Cheng and other administrators.
“The things we found range from expensive meals to livery service to room service to dry cleaning to improper tickets that were not school related,” Scanlon said.
The audit reviewed just a fraction of the roughly 180,000 purchases made on state-issued cards, or P-Cards, by employees in the CSCU system.
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Between July 1, 2021 and Oct. 24, 2024, Cheng charged $27,125 to his P-Card, with 70% of those for meals designated as business meetings.
Scanlon said some of the meals exceeded a $50 limit. He also found some transactions included alcohol, excessive tipping – the state has no rule, but Scanlon focused on gratuity exceed 22% -- and other questionable actions.
Scanlon also noted Cheng ordered a driving service on three occasions despite having a state-owned car and then later renegotiating his contract to get a vehicle stipend.
The audit didn’t just focus on Cheng. Scanlon said every state university president had some questionable transactions.
He specifically noted Southern Connecticut State University Interim President Dwayne Smith charged $19,000 to his P-Card over the same span, including for dry cleaning and other purchases that seemed personal.
Charter Oak State College President Ed Kolonski used his card to pay for $497,062.
Scanlon said the audit identified many concerns, including a lack of a consistent policy around how employees can use their P-Cards, among other issues.
Aside from the use by administrators, the audit also found several instances where employees didn’t provide proper documentation for P-Card purchases.
CSCU eliminated its internal auditing office in 2017 as a budget-saving measure and does not submit records to Scanlon’s office for an external review.
Other concerns include the fact that Cheng has the authority to exempt himself from policies, meaning he didn’t need approval for dinners that exceed the $50 limit.
His report provided 10 recommendations, including:
- Reinstituting internal financial audits
- Establishing a centralized P-Card policy
- Using schools’ nonprofit foundations, not P-Cards, to pay for meals and entertainment
- Setting limits and review for executive P-Card usage
- Establishing a vehicle use policy
- Instituting residency requirements for executives
- Add CSCU to the comptroller’s Open Connecticut records system
- Create uniform training for employees
- Submit transactions for post-audit by the comptroller’s office
- Enforce accountability measures for misuse of P-Cards
In a statement, Cheng said he was reviewing the report and is looking to implement the recommendations over the next 100 days.
“These recommendations will support the goal of accountability and transparency across the system and protect taxpayer dollars and student funds,” Cheng said.
A spokesman for Lamont said the governor is also reviewing the goals, but the recommendations “appear to be sensible and deserve serious consideration. The public and the students attending CSCU schools deserve complete transparency into how public funds are being utilized.”
Republicans went even further, calling for Cheng to be fired.
“Make no mistake—this is a black eye for the State of Connecticut,” Sen. Stephen Harding and Rep. Vincent Candelora, the two minority leaders, said in a joint statement. “While we appreciate Comptroller Scanlon’s proposals to address spending abuses and procedural failures within the CSCU system, restoring public trust demands bold and decisive action.”
Rep. Gregg Haddad (D-Mansfield) who co-chairs the legislature’s Higher Education and Employment Advancement Committee, said he wasn’t ready to call for Cheng’s termination.
But he wants accountability and will watch to see how the Board of Regents will handle the audit.
“I'd like to wait to see what they recommend, what they decide to do before making an independent judgement from the legislature,” Haddad said in an interview.
