Fresno State will take more time to determine whether to dissolve the Athletic Corporation auxiliary, which was panned in an audit last month by the California State University chancellor’s office.
The CSU audit report detailed significant budget issues, poor oversight and inadequate compliance at the Corporation and questioned whether the non-profit auxiliary was even necessary. Fresno State is the only campus in the CSU system that administers athletics through a non-profit auxiliary organization.
The university agreed in the audit to conduct a review of the structure of the Corporation and determine by Friday whether it should continue to exist or be closed, but no determination has been made.
“The Athletic Corporation board has formally passed a resolution to explore the option of dissolving the Athletic Corporation and move athletics into the university’s operations,” a university spokesperson said, in an email to The Fresno Bee.
“We are beginning to evaluate the legal, operational, and employee implications, including information received from CALpers. No decision to retain or dissolve the corporation has been made, we will provide CSU Audit and Advisory Services with the board’s action and an updated timeline for a final determination.”
The CSU in its report noted that operating athletics through an auxiliary added extra layers of complexities in governance, final management and oversight.
“Based on our review,” the report stated, “we were unable to identify a clear operational, financial or governance benefit associated with administering athletics through an auxiliary organization.”
The Fresno State Athletic Corporation was established in 1982 to meet the needs and regulations related to the university’s athletic programs. It has an elected board of directors and the university’s vice president of administration and chief financial officer serves as its chair.
The Corporation has in the past few years run considerable deficits, and has had to rely on external funding sources including the university to sustain operations.
It reported operating losses of $11.1 million in 2022-23, $8.7 million in 2023-24 and $16.5 million in 2024-25.