CSU expects reprimand over $1.6M health insurance contract

Chi-Town:

Chicago State University has miscounted tens of millions of dollars, improperly handled dozens of contracts, overspent on several federal grants and fell as much as six months behind on routine accounting tasks that should have happened monthly, a new state audit says.

The report, issued by the Illinois Auditor General, is highly critical of many aspects of CSU’s finances during the previous fiscal year, which ended June 30, 2008. It identifies 20 problem areas. The auditor general found problems in 12 of those areas a year or more ago, but many of the same issues remain.

Leon Finney, the chairman of CSU’s Board of Trsutees, says while he hasn’t seen the audit report, he expected it to point out many of the same problems as past audits.

He placed the blame squarely on former university president Elnora Daniel. She left in June 2008 when the board refused to renew her contract.

And that's not the only problem. Another report from the Chi-Town:

Chicago State University officials expect they’ll get another slap on the wrist from state auditors for failing to re-bid a $1.6 million contract for student health insurance – a series of events that board members are blaming on former president Elnora Daniel.

The contract should have been put up for competitive bidding from other health insurance providers a year ago, officials said, but instead it was quietly renewed for the current academic year. Despite that, the board voted 4-1 yesterday to extend the same contract through the next school year, until August 2010, after some discussion of the issue.

“I would hate to have another audit exception because the board failed to ask a question such as this for a $1.6 million contract that has been extended and whether we are legally within the bounds of what we can do,” Board Chairman Leon Finney said.