Corruption is not limited to government. Non profits have their share of embezzlement, mismanagement and stupidity.
“The CPB audit found CapRadio significantly overreported its revenue minus any federal funding it received to the CPB. These overruns totaled $5,800,598 across the 2021, 2022 and 2023 fiscal years.
The CPB awarded the station $125,818 in grants in response to the station’s self-reported income. CPB is now asking CapRadio to repay the organization nearly $200,000 for the grants it awarded based on the incorrect information given.
The report also determined that CapRadio:
- Failed to maintain sufficient accounting records.
- Did not provide required advance notice of public meetings or post required financial records on its website.
- Did not comply with general provisions and eligibility criteria requirements related to grants.
- “Commingled” its grant revenues and expenses with other stations it operates.
It is time to end all government funding of these biased, hate filled media sources. Let Soros pay for them.
New CPB audit of CapRadio finds station overreported funding, noncompliant with financial policies
By Sarit Lachinsky, CapRadio and Claire Morgan, The California Newsroom, 4/3/25 https://www.capradio.org/articles/2025/04/03/new-cpb-audit-of-capradio-finds-station-overreported-funding-noncompliant-with-financial-policies/
A new audit from the Corporation for Public Broadcasting found that Capital Public Radio and its affiliate stations overstated funding, reported “questionable costs,” and failed to comply with financial requirements and grant guidelines.
The report was compiled by the CPB’s Office of the Inspector General and released Monday. It reviewed grants it awarded to CapRadio, an auxiliary organization of Sacramento State, between July 1, 2020, and June 30, 2023, in addition to checking that the station complied with both CPB and federal policies.
Auditors wrote the investigation was conducted after news reports identified significant financial mismanagement at CapRadio, an internal audit was conducted by the California State University Chancellor’s Office, and concerns were raised by the CPB.
The CPB audit found CapRadio significantly overreported its revenue minus any federal funding it received to the CPB. These overruns totaled $5,800,598 across the 2021, 2022 and 2023 fiscal years.
The CPB awarded the station $125,818 in grants in response to the station’s self-reported income. CPB is now asking CapRadio to repay the organization nearly $200,000 for the grants it awarded based on the incorrect information given.
The report also determined that CapRadio:
- Failed to maintain sufficient accounting records.
- Did not provide required advance notice of public meetings or post required financial records on its website.
- Did not comply with general provisions and eligibility criteria requirements related to grants.
- “Commingled” its grant revenues and expenses with other stations it operates.
- Did not comply with CPB financial reporting guidelines.
Auditors wrote that a test of CapRadio’s 2024 fiscal year transactions showed adequate documentation and support, in addition to proper adherence to guidelines. The report attributes these results to Sac State’s takeover of CapRadio’s accounting practices in October 2023.
Monday’s report comes in the wake of numerous other examinations into CapRadio’s finances. An audit commissioned by the California State University Chancellor’s Office was released in September 2023 — less than a month after the station laid off 12% of staff and canceled four music programs — which detailed years of serious financial mismanagement at the public radio station.
An independent forensic examination was later commissioned by Sac State and published in August 2024. The report, prepared by Roseville-based firm CliftonLarsonAllen, looked into the same time frame as the CPB audit: July 1, 2020, through June 30, 2023. This examination identified potential conflicts of interest among former board members, as well as the alleged misuse of station funds by former CapRadio General Manager Jun Reina.
What is the CPB?
The Corporation for Public Broadcasting is a private nonprofit organization dedicated to distributing funding to public media organizations across the country. It is not a federally-run organization, but it was born out of federal legislation: The Public Broadcasting Act of 1967.
CPB’s funding largely comes from annual appropriations via Congress, in addition to interest. For the 2025 fiscal year, CPB announced it is set to receive $535 million in appropriations and $10 million in interest. An estimated 70% of those funds go directly to local public broadcasting stations, according to CPB officials.
This funding can be distributed to stations in a number of formats, though the majority is awarded via Community Service Grants.
Community Service Grants are awarded to noncommercial public radio and TV stations in order to “expand the quality and scope of their work, whether in educational, news, public affairs or other programming,” according to CPB officials.
However, in order to be eligible for Community Service Grant funding, public radio and TV stations must follow a strict set of guidelines and submit annual reports to the CPB.
Stations must report their annual revenue — minus any federal funding they may receive — in order to be eligible for Community Service Grant awards. CPB officials describe this figure, called Non-Federal Financial Support, as “a key component in calculating annual [Community Service Grant] awards.” It also forms part of the legal justification for CPB’s federal appropriations.
In overreporting its Non-Federal Financial Support, CPB auditors argue CapRadio received $125,818 in potential Community Service Grant award overpayments for the 2023 fiscal year.
CapRadio also reported $73,920 in costs associated with CPB grants which auditors called into question. These were based on $1,502,428 in “unsupported or otherwise ineligible costs,” according to the report.
A 2015 CPB report defines questioned costs as, “those that are 1) identified due to an alleged violation of a provision governing the expenditure of funds, 2) not supported by adequate documentation, or 3) unnecessary or unreasonable.”
Auditors wrote that the CPB withheld Community Service Grant funding from CapRadio and its affiliates for the 2024 fiscal year, pending the completion of the station’s annual audit and Sac State taking over its accounting.
CapRadio was removed from the CPB Community Service Grant program in October 2024, according to the audit.
North State Public Radio and KHSU
The CPB Office of the Inspector General also reviewed grants issued in the same time frame to North State Public Radio (NSPR), licensed to Chico State, and KHSU, licensed to Cal Poly Humboldt. Both stations have been managed and operated by CapRadio since 2020 and 2021, respectively.
The audit determined NSPR overstated $101,027 in Non-Federal Funding Support for the 2021-2022 fiscal years, resulting in potential grant overpayments totaling $4,886. Auditors classified these awards as “funds put to better use,” meaning they could be used more efficiently.
NSPR also reported $2,072 in allocated Community Service Grant questioned costs, based on $16,885 in unsupported station costs.
KHSU, meanwhile, reported $13,997 in allocated Community Service Grant questioned costs, based on $37,272 in unsupported expenditures, auditors wrote.
NSPR and KHSU were also found to be noncompliant with financial reporting guidelines, grant requirements and accounting provisions. Both stations’ expenses were also mixed in with CapRadio’s expenses using the same account codes, in violation of CPB policy.
Auditors wrote that NSPR and KHSU were also both removed from the Community Service Grant program in October 2024.
However, like CapRadio, 2024 fiscal year transactions for both NSPR and KHSU were tested by auditors and showed improved compliance.
Repayment, penalties and recommended changes
Auditors suggested that CapRadio should repay the $125,818 it was awarded based on the overreported Non-Federal Financial Support figure. They added that the station should also repay $73,920 in questioned grant costs.
Auditors also wrote that NSPR should be required to pay back its grant overpayments and questioned costs for the 2023 fiscal year. They recommended that KHSU also repay its questioned grant costs.
The report said all three stations should pay penalties for noncompliance with existing requirements and policies, inadequate recordkeeping and other financial issues. Specific penalty amounts were not mentioned in the report.
All recommendations made to CapRadio, NSPR and KHSU are considered “unresolved and open pending CPB’s final management decision resolving our audit findings and recommendations,” according to auditors.
Though all three stations have been removed from the Community Service Grant program, CPB auditors wrote that they could all eventually be reinstated — so long as they follow regulations.
“If [CapRadio] and its affiliated stations (KCHO-FM and KHSU-FM) seek reinstatement to the CSG program, CPB should require CPR to specify what internal controls have been implemented to ensure compliance with grant and Act requirements and monitor to ensure those controls have been implemented.”
CapRadio management’s response
CapRadio’s Chief Marketing and Revenue Officer Chris Bruno said the station “takes the CPB audit findings seriously” in an emailed statement on Wednesday. He added that “the organization acknowledges that unacceptable deficiencies and poor practices were in place under a former general manager who is currently at the center of a related law enforcement investigation regarding his role.”
Bruno said new leadership — in addition to the station’s collaboration with Sacramento State Accounting Services — have helped CapRadio remedy the compliance issues outlined by the CPB audit. CapRadio now tracks expenditures and revenues for NSPR and KHSU and itself in separate accounts, he said, in addition to posting Board of Directors agendas and meetings on its website.
When asked how the audit’s findings — and possible penalties or repayments — may impact CapRadio, NSPR or KHSU’s budgets in the future, Bruno said, “CapRadio has not been receiving CPB funding for the past two years, and we continue to take a conservative approach to budgeting for our future.”
When asked about CapRadio’s operating agreements with its affiliates, Bruno said the station has managed the accounting for both NSPR and KHSU, including reporting to the CPB, since 2020 and 2021, respectively. He also reiterated that CapRadio, “now has discrete accounting in place to effectively manage revenues and expenditures for all three organizations separately.”
Bruno said CapRadio will receive a determination about CPB’s assessment of the audit within the next six months. He added that CapRadio and its affiliated stations “will evaluate” CPB funding opportunities when they become eligible. He did not provide a timeline for that process.
“As a community-funded resource that operates in service of our community, we are currently focused on sustaining our local public service journalism through individual donations and business support,” he said. “At a time when public media faces an existential threat, everyone in the community can make a difference in keeping CapRadio’s trusted and respectful news coverage accessible for all.”
