Students walk by a new gateway sign at the entrance to Fresno State at Maple and Shaw avenues. The stone and metal sign lies across from a sculptural element, called a sprout to reflect the school’s agriculture, nature, native history, programs and education, made of perforated metal and wood.
CRAIG KOHLRUSS
Fresno Bee Staff Photo
The Fresno State Foundation, which controls $315 million in university endowments and grants, will undergo significant structural changes, including term limits for its board of governors, as part of a reform plan to address deficiencies in governance and operations that were highlighted in a highly-critical advisory review in January from the Cal State chancellor’s office.
The review, which covered operations from the 2024 fiscal year, found weaknesses in the foundation’s governance structure and financial control environment that heightened its exposure to financial misstatement, fraud and operational inefficiencies.
The foundation, in collaboration with the university, submitted an implementation plan to the chancellor’s office to address 46 findings in need of remediation action. It was approved last month, and posted this week to the foundation website.
The governance changes, to be completed by this summer, include:
– Revising board composition to include appropriate university representation.
– Establishing and enforcing term limits for the board of governors.
– Establishing officer term limits.
– Revising bylaws to reflect current leadership roles including the assignment of foundation executive director to the university’s vice president of advancement.
The implementation plan also includes reforms to organizational structure, financial practices, indirect cost recovery, endowment management and operational areas and policy infrastructure, hitting every area cited by the CSU review. The timeline for completion of the implementation plan stretches to the spring 2027.
TERM LIMITS TO RETURN
The Fresno State foundation eliminated term limits from its bylaws in February 2022, though they appear to have been selectively applied when in place. Foundation chair Vinci Ricchiuti has served on the board for 31 years, and as chair since 2016-17. Four other board members have served for 20 or more years including two that have been on the board for 29 years, and 11 have served for more than 10 years.
The foundation board also has no staff/administration, faculty and student representation in violation of state regulations. The only university employee on the board is Fresno State president Saúl Jiménez-Sandoval.
No malfeasance was found in the review by CSU Audit and Advisory Services, but it highlighted weaknesses in governance, including limited board turnover, minimal university representation and outdated governing documents that contributed to its issues. It also reduced transparency and resulted in misalignment with the university’s strategic priorities, according to the review.
The foundation has operated under its chair and board of governors with outdated core financial processes, including fund balance reconciliations and endowment-income distributions that relied on manual practices that according to the CSU review either no longer met the needs of an organization of its size or were based on outdated assumptions.
REVIEW WAS REQUESTED BY FRESNO STATE PRESIDENT
Jiménez-Sandoval declined to comment to The Bee, but in a brief statement that accompanied the release of the plan said, “The implementation plan reflects the foundation and Fresno State’s shared commitment to update governance, operations systems, procedures and practices to further advance the foundation’s mission to support the university.
“Together, the Fresno State Foundation and university are taking meaningful steps to ensure that Fresno state is well-positioned for the future, with optimal systems, accountability and the continued trust of those we serve.”
The Fresno State president requested the review of the foundation’s core processes following its misinterpretation of the Nonprofit Integrity Act of 2004, a California law that increased oversight and accountability of non-profit organizations.
The foundation, a non-profit auxiliary organization, operates independently of the university and manages an endowment of more than $250 million as well as $65 million in grants.
It is the only non-profit auxiliary within the CSU that houses both philanthropic activity and research activity in a single organization, according to the CSU review of the foundation, yet the board does not include any faculty members with relevant experience or direct engagement in research administration or academic affairs.
That has been an issue on campus and was addressed by CSU Audit and Advisory Services.
“For the Foundation to effectively fulfill its role for the benefit of the university, its governing board must be structured to ensure proper oversight, transparency, and institutional alignment, including appropriate university representation,” it stated, in the review report.
With term limits and university representation on the board, the foundation by this summer also will revise its bylaws so that the executive director role is filled by the university’s vice president for advancement, which is more in alignment with non-profit foundations across the 22-campus CSU system.
The role as executive director of the Fresno State Foundation previously had been held by former vice president of administration Deborah Adishian-Astone, who retired from the university at the end of 2024.
Brady Crook, who was appointed vice president for university advancement in September 2023, already is serving as the foundation’s executive director.
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