• State Auditor reports UC Office of Pres hid $200 m in secret budget reserve; salaries & benefits too high; AND intentionally interfered with audit integrity.

    April 25th, 2017 by admin Categories: Blogs Tags: , , , ,

    “UC is the gold standard. Together, we must ensure that this standard is upheld.”

    Not exactly a clean bill of health… Maybe Napolitano can hire Linda Katehi to “fix” things. Funny how audits expose mismanagement. See BOE

    HIGHLIGHTS from State Auditor Report:

    Our audit of the University of California Office of the President’s budget and staffing processes revealed the following:

    • The Office of the President did not disclose to the University of California Board of Regents, the Legislature, and the public $175 million in budget reserve funds.
      • It spent significantly less than it budgeted for and asked for increases based on its previous years’ over‑estimated budgets rather than its actual expenditures.
      • It created an undisclosed budget to spend the reserve funds; the budget ranged from $77 million to $114 million during a four-year period.
      • The reserve included $32 million in unspent funds it received from an annual charge levied on the campuses—funds that campuses could have spent on students.
    • The Office of the President’s executive and administrative salaries are significantly higher than comparable state employee salaries.
    • During a five-year period, the Office of the President spent at least $21.6 million on employee benefits some of which are atypical to the public sector, such as supplemental retirement contributions.
    • The Office of the President has failed to satisfactorily justify its spending on systemwide initiatives, and it does not evaluate these programs’ continued priority or cost.
    • Both Office of the President and campus administrative spending increased and annual budget and staffing levels for the Office of the President are higher than administrations at other comparable public universities.
    • Auditing standards prohibited us from drawing conclusions from some of our work because the Office of the President intentionally interfered with our audit process.
      • It inappropriately screened the campuses’ survey responses before campuses submitted the surveys to us.
      • Campus statements that were initially critical of the Office of the President had been revised and quality ratings shifted to be more positive.
    • Significant reforms are necessary to strengthen the public’s trust in the Office of the President.

    OTHERWISE JUST FINE… BTW, the UC office of the President has 1,800 employees. That’s not a typo, 1,800…



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