Law enforcement officials are investigating accounting irregularities involving as much as $80,000 following an audit of Associated Students Inc. by Aldrich CPA+Advisors LLP released on Sept. 26.
Analysis of the “Other” expenses shows that “Management and General” expenses tallied up to $79,504 which accounted for roughly 3 percent of ASI’s revenue. In audits of the previous three years, the highest spending in that category was $22,191.
“During the year ended June 30, 2019, management identified some irregularities in accounting records. These transactions were expensed in Other Expenses in the statement of functional expenses, and are currently being investigated,” said the audit.
The “Management and General” category typically relates to personnel, accounting and legal fees in audits.
A CSUSM Office of Communications official said that CSUSM is aware of the ongoing investigation. According to the official, the law enforcement agencies that are involved are the CSUSM University Police Department and the San Diego County District Attorney.
Asked for an update, ASI Executive Director Annie Macias said, “Unfortunately, I’m not able to provide details on this matter as there is currently an active investigation being conducted by law enforcement. We don’t have a timeline for completion as it is ongoing. However, once the investigation … is complete, there may be information that can be disclosed at that time.”
The statement of functional expenses details expenses from accounting and legal, contract services admin fee, depreciation, insurance, interest, office and other supplies, payroll, professional development, programming and student activities, other rental and lease equipment, rent, telephone, transportation and conference and a miscellaneous “Other” category.
These expenditures support the Cougar Pantry, ASI’s Board of Directors, marketing and design, student life centers, student programs and activities and management and general.
For the fiscal year ending June 30, 2019, ASI’s revenue totaled to $2,338,308. $2,200,972 of this revenue was received from the student ASI fee which is $75.
The audit is not in any way related to the audit that was launched for Dean of Extended Learning Michael Schroder in September and can be viewed at https://tinylink.net/8zjDI.