Imagine millions of dollars in grants and donations hanging in the balance, vulnerable to mismanagement and potential fraud. That’s the stark reality uncovered by a recent California State University (CSU) review of the Fresno State Foundation, a non-profit auxiliary tasked with managing hundreds of millions in donor gifts and endowments. But here’s where it gets controversial: while the review wasn’t a full forensic audit, it exposed 46 areas of concern, including incomplete payment documentation, lax oversight of operating accounts, and a board of governors with stagnant membership—one member had served for over 30 years! This raises the question: How could such critical weaknesses go unnoticed for so long? And this is the part most people miss: the Foundation’s slow turnover and lack of diverse expertise on its board may have hindered its ability to safeguard assets and support the university’s mission effectively.
The review, initiated in 2025 at the request of Fresno State President Saúl Jiménez-Sandoval, focused on governance, financial practices, and endowment management. It revealed that the Foundation’s 22 operating and investment accounts lacked adequate oversight, increasing the risk of fraud or misappropriation. For instance, seven accounts were only balanced once a year, potentially delaying error detection. Additionally, the board’s composition was criticized for its lack of faculty representation and research administration expertise, despite managing tens of millions in academic grants annually.
The 32-page report bluntly states, “These weaknesses leave the Foundation vulnerable to financial and reputational risk, hinder its ability to safeguard assets, and impact its ability to support the university’s missions.” With an endowment of over $250 million—the third largest in the CSU system—and oversight of $65 million in post-grant awards, the stakes couldn’t be higher.
Jiménez-Sandoval, who is working to stabilize the university’s finances amid state budget cuts, has pledged to modernize governance structures and strengthen oversight. He emphasized that these issues are structural, not allegations of wrongdoing, and expressed confidence in resolving them. However, here’s a thought-provoking question: If these problems developed over years and across administrations, does that suggest a deeper systemic issue within the CSU system’s philanthropic foundations?
The review also highlighted inconsistent practices in endowment payments, non-compliance with committee charters, and delays in renewing trust account agreements. For example, millions in endowment payments relied on manual procedures and informal consultations, leading to inconsistencies. Furthermore, high balances in trust accounts raised concerns about whether donor intentions were being fulfilled promptly.
The Foundation’s board turnover issue is particularly striking. While its bylaws don’t explicitly limit board terms, a CSU comparison of seven philanthropic foundation boards found that all had term limits, with six capping at three, three-year terms. Yet, Fresno State’s board chair and vice chair have held their positions since 2016-17. This lack of rotation limits fresh perspectives and leadership approaches, potentially stifling innovation and accountability.
Former university vice president Deborah Adishian-Astone, who oversaw the Foundation during the review period, retired at the end of 2024. She now serves as a special assistant at San José State, where the president, Cynthia Teniente-Matson, previously held a similar role at Fresno State. This connection raises questions about the continuity of practices and oversight across institutions.
As Fresno State moves forward, Jiménez-Sandoval has outlined priorities such as establishing term limits, revising board composition, and aligning the audit committee with regulatory requirements. But will these changes be enough to restore trust and ensure transparency? What do you think? Should there be stricter oversight of philanthropic foundations within the CSU system? Or is this an isolated case of mismanagement? Share your thoughts in the comments—let’s spark a conversation about accountability and reform in higher education.
