Report 2016-130 Recommendation 19 Responses
Report 2016-130: The University of California Office of the President: It Failed to Disclose Tens of Millions in Surplus Funds, and Its Budget Practices Are Misleading (Release Date: April 2017)
Recommendation #19 To: University of California
To ensure that its spending aligns with the needs of its stakeholders, including campuses and students, by April 2018 the Office of the President should develop a comprehensive list of systemwide initiatives and presidential initiatives, including their purpose and actual cost that will be used in the regents' meeting previously recommended.
6-Month Agency Response
The UCOP systemwide initiatives workgroup, supported by a team of subject-matter experts from the Academic Affairs division, has: (1) compiled a comprehensive data set of UCOP systemwide programs and initiatives, including individual purposes and costs, (2) formalized categories for these items along with their definitions, and (3) developed key attributes to assist with reporting . This documentation will be incorporated in future budgets.
To respond to the timing of AB97, UCOP's effort to identify savings to be put towards its share of $15M in funds for enrollment increases beginning in the 2018-19 academic year, the team used the data set of programs and initiatives. This documentation has been provided to key stakeholders (Executive Budget Committee, Council of Chancellors, Department of Finance and others) for consultation and evaluation to ensure UC will meet December 2017 deadlines for development of the State of California budget.
- Estimated Completion Date: April 2018
- Response Date: October 2017
California State Auditor's Assessment of 6-Month Status: Pending
The Office of the President provided us with a working list of 90 statewide, systemwide, and campus programs. The list includes a summary of each program, its stakeholders, and the funds used to support it. According to this document—which the Office of the President highlighted as a work in progress—the total 2017-18 Office of the President budget for initiatives and programs equals $440 million. This total is $32 million more than the amount approved by the regents. Since this list is a work in progress, it is possible that this discrepancy represents data entry errors; the Office of the President stated it is still validating data internally and with its campuses. By April, we expect these amounts to tie back to the budget approved by the regents or to be otherwise explained.
Moreover, we also expect clarification on the status of presidential initiatives. The budget director informed us that through its review of statewide, systemwide, and campus programs UCOP has preliminarily determined that presidential initiatives generally fit into one of these categories. He stated that management had not determined how the Office of the President would define presidential initiatives or the status of the $10 million allocated each year to the presidential initiative fund.
60-Day Agency Response
A UCOP systemwide initiatives work group has been formed. This group includes representation from key stakeholders across a variety of functional areas within the Office of the President. The work group will complete a baseline review including development of a comprehensive list of systemwide and Presidential initiatives. The documentation will explain: purpose, commitment levels, and costs. This baseline will be used in the subsequent research phases to implement further recommendations. Consistent with recommendations related to budget process and presentation, these initiatives will be presented in the annual budget process.
- Estimated Completion Date: April 2018
- Response Date: June 2017
California State Auditor's Assessment of 60-Day Status: Pending
The status of this recommendation is pending the Office of the President's development of a comprehensive list of systemwide initiatives and presidential initiatives.
Agency responses received are posted verbatim.