State auditors scrutinize CSCU President Terrence Cheng; ‘prohibited’ purchases, missing information

The Connecticut State Auditors of Public Accounts conducted a Special Review of CSCU Executive Leadership Spending, to include Chancellor Terrence Cheng, and Vice Chancellor and Chief of Staff Jessica Paquet.

Chancellor Cheng was issued two purchase (P) cards, once in 2021 and again in 2023; among the notable findings:

• Forty-three (43) times in which meals exceeded the $50 per person meal limit, ranging from $2.05 to $95.61 over the limit. Each time, the names of attendees were not listed on the receipt as required by the P-card manual. Total cost: $7,192.81
• Eight (8) times of purchasing alcoholic beverages. Support indicates the chancellor submitted reimbursement for un-allowed charges in June 2023. Auditors were unable to determine which prohibited amounts may have been reimbursed. Total cost: $87.77
• The CSCU Purchasing Card Policy and Procedure Manual imposes a $2,500 limit on a single purchase. Auditors wrote of one catering purchase that exceeded the limit for the New England Commission of Higher Education (NECHE) Annual Meeting in Boston. Total cost: $3,330

The system office has a Chancellor’s Office P-card which enables various staff to make authorized purchases. During the period July 2, 2021, to September 26, 2024 (37 monthly billing cycles), Chancellor’s Office employees made purchases totaling $82,827.66. During this period:

• Twenty-seven (27) times — system office did not complete monthly reconciliations on
  time. Delays ranged between one and 178 days (15 one to five days late; three 6 to 10 days
  late; three 20 to 51 days late; and six 73 to 178 days late).
• Eight (8) times — restaurants, catering services, and delis in which provided documentation did not specify the purpose. Therefore, we were unable to determine whether the purchase complied with or was subject to the $50 per person meal limit. Total: $2,383.46
• Twenty-one (21) instances — the chancellor’s office purchased transportation services which appeared to be for personal transportation or lacked adequate documentation to support a reasonable and appropriate state business purpose. Five instances ($1,812.96) were for transportation for a BOR member to attend three meetings. The remaining times ($5,491.78) were for the chancellor, which included transportation to an airport more than once. Total: $7,304.74

Read the rest of the 13 page report along with recommendations.