Curtis L. DeBerg

Official Response to Allegations Regarding SAGE Global and CSU Chico

This document is a formal response to the allegations raised in a special investigation concerning my role as a faculty member and CEO of the non-profit organization, Students for the Advancement of Global Entrepreneurship (SAGE Global), during my tenure at California State University, Chico (CSU Chico).

As a retired professor with thirty years of service to the CSU, I maintain that my actions were taken in good faith, with transparency, and in furtherance of an innovative student-learning mission that was previously encouraged and rewarded by past university administrations. The core of these issues arose from a lack of clarity in changing "applicable criteria" for external programs and the suffocating bureaucracy of grant management.

Allegation 1: Misuse of Campus Resources and Name

The Allegation: Used the campus name, facilities, and other resources inappropriately, and misused facilities to conduct a for-profit training course without paying for the use of the facilities.

My Response:

  • SAGE as a Curricular Activity: SAGE was intentionally linked to my accounting courses and viewed as an integral, curricular component of the College of Business (COB) by a former Dean. SAGE’s mission—to mentor teens in launching socially-responsible businesses—was never hidden, and the use of campus facilities for activities like competitions and meetings was encouraged for a program housed within the COB.

  • Prompt Compliance: When Associate Dean Ken Chapman informed me in Fall 2018 of concerns regarding the use of the Chico State logo on certificates, I discontinued the practice immediately.

  • The Non-Profit Model (TRIS): The training workshops (Turning Risk into Success - TRIS) generated modest fees, but these revenues were considered "earned income" used solely to fund the non-profit operations of SAGE Global. No person, including myself, ever received a salary, wage, or personal profit from the operations of SAGE Global or the TRIS training fees.

  • Facility Fees: Prior to 2018, workshop participants had the option to pay fees to either SAGE Global or the University Foundation (UF). Starting in 2018, all fees were deposited with the UF, which charges a fee (5%) specifically for administrative support, which should cover facility use.

Allegation 2: Conflict of Interest

The Allegation: Had a conflict of interest due to multiple roles as a principal investigator on a federal grant, CEO of a non-profit, campus faculty member, and advisor to a campus student group.

My Response:

  • Encouraged Service: Prior to this investigation, no one suggested a conflict of interest existed. Instead, past administrators encouraged and rewarded my efforts in these multiple roles, viewing them as an integral part of the faculty service requirement and the COB’s mission.

  • Dedicated Effort: My role with SAGE was considered internal and community service and was performed over and above my regular duties, for which I received no extra compensation or course release time. My only interest was to further student learning experiences through community service-learning (CSL), a concept I have championed since 1993.

University Recognition: I was named the first-ever recipient of the COB Extraordinary Faculty Achievement Award just three years ago.

Allegation 4: Inappropriate Use of SUSI Grant Funds (Fictitious Invoices)

The Allegation: Used SUSI grant funds inappropriately.

My Response:

  • Grant Success and University Revenue: The three-year, U.S. Department of State SUSI grant (2016-2018) was a tremendous success in which all goals and objectives were met, benefiting 60 West African student leaders and 15 Chico State mentors. The university received substantial revenue from this project, including $299,000 in indirect costs.

  • Administrative Failure: The grant was managed through an arduous, archaic manual filing/reporting process used by Research and Sponsored Programs (RESP). This process forced the Principal Investigators (PIs) to bear almost all major project expenses on personal credit cards. In one summer, I was required to put nearly $100,000 on personal credit cards, which caused my credit rating to drop nearly 100 points.

  • The Admission: I admit to creating a few fictitious invoices (totaling about $2,500) for expenses that were legitimately reimbursable expenditures for the grant (e.g., farewell dinner, tickets, student stipends). This action was taken solely to obtain more timely reimbursement and was not for personal gain.

Mitigating Circumstances: This poor decision-making occurred while I was simultaneously dealing with extreme physical and mental issues stemming from my 2016 plane accident and the failing health of my mother (who passed away in November 2018). I have offered to repay the amount and obtain documentation for any receipts that lacked them.

Allegation 5: Course Pass System

The Allegation: Had expenditures for for-profit business ventures that conflicted with applicable criteria (specifically, requiring ACCT 201 students to buy Course Pass).

My Response:

  • Dean and Chair Approval: My decision to charge a fair fee of $90 for my original intellectual property (written cases, Excel assignments, videos) was explicitly approved by the then-Dean and Department Chair in Summer 2017.

  • Student Benefit: The fee was instituted to save students money compared to a new $270 textbook and was part of an innovative flipped-classroom approach that led to students performing at or above their peers.

  • Compliance: When the new Dean later requested that I discontinue charging students for the Course Pass system, I immediately complied.