🔒CSCU proposes $1.9M, 19-person internal audit division following spending scrutiny

Connecticut State Colleges and Universities is proposing to build out its recently reestablished internal audit division to 19 employees at an estimated annual cost of nearly $1.9 million, following heightened scrutiny of the higher education system’s spending and financial controls.

The Board of Regents’ Audit Committee is scheduled to discuss the proposal Wednesday as part of a multiyear plan to expand internal oversight across CSCU’s universities, Connecticut State Community College, Charter Oak State College and system office.

CSCU reestablished its Internal Audit Division in January 2026 through its Office of Compliance, after the function had been eliminated in 2013, according to CSCU spokesperson Samantha Norton.

The division currently has two employees, with two more scheduled to start in September, bringing the staff to four this fiscal year, Norton said.

The proposed expansion would ultimately bring the division to 19 employees, including a director and assistant director, an information technology auditor, seven senior auditors, four internal auditors, three auditor trainees and two paid student interns.

The estimated annual cost at full staffing is $1.86 million, excluding fringe benefits, future salary increases and mandatory training.

Under the proposal, CSCU would phase in the expansion over several years. The plan calls for $347,000 in positions in fiscal 2027, followed by another $622,500 in fiscal 2028 and $489,000 in fiscal 2029.
Norton stressed that the staffing plan is not final.

“The proposal included in the Board of Regents’ Audit Committee agenda represents a potential long-term investment in strengthening CSCU’s internal audit capacity,” Norton said. “It is a proposal at this stage, and any future expansion would be dependent on the system’s budgetary realities and the evolving needs of our institutions.”

The system says a centralized audit operation would allow it to identify financial, operational and compliance risks across its institutions while avoiding the cost of maintaining separate audit staffs at individual colleges and universities. CSCU also plans to use data analytics and continuous monitoring of transactional data as part of the operation.

The division currently tracks findings from the state Auditors of Public Accounts, determines whether individual findings trigger statutory reporting requirements, helps institutions develop remediation plans and conducts systemwide audits in high-risk, financial, operational and other areas, Norton said.

The expansion follows heightened scrutiny of CSCU spending and financial controls.

In December 2024, state Comptroller Sean Scanlon released a special examination of CSCU requested by Gov. Ned Lamont following reports about spending by then-Chancellor Terrence Cheng. The Comptroller's Office reviewed more than 1,000 purchasing-card transactions and identified incomplete documentation, restricted purchases and policy violations. The report concluded that CSCU lacked a comprehensive, uniform purchasing policy with sufficient controls against misuse.

Among its recommendations, the Comptroller's Office specifically called on CSCU to reinstitute its internal audit function to strengthen internal controls and ensure institutions were adhering to them.

Norton said reestablishing the division became a priority of CSCU’s chief compliance officer after the system created its Office of Compliance in December 2024. She also pointed to Public Act 25-71, passed during the 2025 legislative session, which codified several recommendations from the comptroller aimed at strengthening CSCU oversight and accountability.

Norton said the division serves CSCU’s six colleges and universities and system office, which collectively have more than 100,000 students and 12,000 employees.