Margaret Crawford's 2020 universities audit report released today detailed the review, as one of two "high risk deficiencies" at CSU.

"During the year, the university engaged external expert advisors to perform a review of its payroll function," the report states.

"The expert has provided a draft report, which has identified instances of under and over payment of staff.

"The amount of the University's liability to its employees is yet to be quantified.

"We have recommended the University continue to investigate the extent of the underpayments and institute controls to avoid reoccurrence of the problem."

The second deficiency related to "misunderstanding the requirements of the new accounting standard in relation to recognising grant funding revenue for construction work".

The Auditor-General recommended the university "address the root cause of these errors, and put in place controls for sign-offs".

The report detailed the impact of the pandemic.

Overseas student enrolments in semester one of this year at Charles Sturt University was down 42 per cent compared to the same time last year.

It was the biggest drop out of eight universities audited, but CSU increased domestic student enrolment by 5 per cent.

"The ongoing impact of COVID-19 in the short-term, on semester one enrolments for 2021 compared to semester one of 2020, has been mixed," Ms Crawford said in her report.

IN OTHER NEWS:

"All universities in NSW experienced a growth in their domestic student enrolment."

Government grants as a proportion of total revenue increased for the first time in five years across the institutions, and the increase was highest for CSU, at 19.4 per cent.

CSU was not among the four universities with a negative net operating result; the university had a $19.5 million net result for 2020.

CSU was equal with University of NSW in having the highest full-time graduate employment rate in 2020.