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Auditors: Athletics marketing suspect
Despite concerns, firm was extended university-wide marketing rights
Aaron Hedge
Issue date: 2/16/09 Section: News
The CSU Athletic Department's marketing firm was red-flagged in a 2005 university-commissioned audit report for alleged "sloppy" accounting practices -- improprieties similar to those that have entangled the firm in financial and legal battles with three other schools nationally.
The audit of CSU's relationship with New Jersey-based Nelligan Sports Marketing was conducted by an independent auditor and cites unjustified travel expenses, contradictory sponsorship payments and a budgeted salary for a position that didn't exist, among others.
But citing large financial gains from the deal with NSM, the struggling Athletics Department overlooked the concerns raised in the audit and extended its contract with the firm, later offering the company marketing rights with departments university-wide.
T.J. Nelligan, the company's chief executive officer, said recently that CSU's 2005 audit merely outlined "minor mistakes," and categorically denied any allegations of wrongdoing. No adverse action has ever been taken by CSU against the company.
While allegations surrounding NSM's dealings with CSU were first raised in the audit four years ago, the company has been in news reports as recently as last fall for a reported financial controversy at Rutgers University.
Lawsuits over NSM's business practices also cropped up between 2002 and last year at DePaul and St. John's universities, a Collegian investigation found.
When the Collegian requested the CSU-sponsored audit report through open records laws, the university's legal counsel said it couldn't be located, but a copy of the document was leaked to the Collegian and authenticated by the private auditor, Fort Collins resident Alan Robinson.
The independent audit
The 2005 report outlines a long list of expenditures that were "inadequately documented, appeared to be unreasonable, represented budgeted rather than actual expenses, or were the result of sloppy or improper accounting practices," according to the audit.
The audit of CSU's relationship with New Jersey-based Nelligan Sports Marketing was conducted by an independent auditor and cites unjustified travel expenses, contradictory sponsorship payments and a budgeted salary for a position that didn't exist, among others.
But citing large financial gains from the deal with NSM, the struggling Athletics Department overlooked the concerns raised in the audit and extended its contract with the firm, later offering the company marketing rights with departments university-wide.
T.J. Nelligan, the company's chief executive officer, said recently that CSU's 2005 audit merely outlined "minor mistakes," and categorically denied any allegations of wrongdoing. No adverse action has ever been taken by CSU against the company.
While allegations surrounding NSM's dealings with CSU were first raised in the audit four years ago, the company has been in news reports as recently as last fall for a reported financial controversy at Rutgers University.
Lawsuits over NSM's business practices also cropped up between 2002 and last year at DePaul and St. John's universities, a Collegian investigation found.
When the Collegian requested the CSU-sponsored audit report through open records laws, the university's legal counsel said it couldn't be located, but a copy of the document was leaked to the Collegian and authenticated by the private auditor, Fort Collins resident Alan Robinson.
The independent audit
The 2005 report outlines a long list of expenditures that were "inadequately documented, appeared to be unreasonable, represented budgeted rather than actual expenses, or were the result of sloppy or improper accounting practices," according to the audit.
Viewing Comments 1 - 2 of 2
sunshine
posted 2/16/09 @ 5:15 AM MST
"When the Collegian requested the CSU-sponsored audit report through open records laws, the university's legal counsel said it couldn't be located, but a copy of the document was leaked to the Collegian and authenticated by the private auditor, Fort Collins resident Alan Robinson. (Continued…)
Richard Lufkin
posted 2/16/09 @ 10:49 PM MST
Nelligan is a parasite that feeds on universities when they're in need of funds. They promise the world and then rape the schools of their last remaining dollars. (Continued…)
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