Report 2016-130 Recommendation 32 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 #32 To: University of California

To determine the amount of money that it can reallocate to campuses and to ensure that it publicly presents comprehensive and accurate budget information, by April 2020 the Office of the President should evaluate its budget process to ensure that it is efficient and has adequate safeguards that ensure that staff approve and justify all budget expenditures. If the Office of the President determines that its safeguards are sufficient, it should begin developing a multiyear budget plan.

1-Year Agency Response

Implementation of this recommendation will be dependent on actions taken in response to the April 2019 recommendations.

The Office of the President currently relies on UCLA's financial systems and a budget planning and reporting tool (BDS) developed by UCOP. Budget and reporting needs have evolved, and the current BDS system, initially implemented for the FY2011-2012 budget, does not support new requirements consistent with best-practices or the recommendations of the California State Auditor.

A project is underway to assess replacement of the Budget Development System to:

- support improved budgets that are clear, transparent, and comprehensive and align processes, presentations and financial systems to support this;

- develop and document repeatable, best-practices processes supported by financial systems; and

- broaden stakeholder involvement and continue developing multi-year strategic plans that are aligned with the UC mission and the campuses.

UCOP is addressing reporting and planning requirements to identify an efficient, cost effective way to partner with UCLA and/or another campus in implementation of a new system. Because system implementation projects are long, UCOP is also working to incrementally improve existing BDS functionality to satisfy requirements in the 2018-2020 timeframe. UCOP continues to explore options and will make a decision in the next few months on the long-term financial system solution after completing due diligence on project scope, functionality, timing and costs and reviewing options with stakeholders.

  • Estimated Completion Date: April 2020
  • Response Date: April 2018

California State Auditor's Assessment of 1-Year Status: Pending

The status of this recommendation is pending the Office of the President's implementation of our budget recommendations due in April 2019 and April 2020.


6-Month Agency Response

Implementation of this recommendation will be dependent on actions taken in response to the April 2018 recommendations.

High-level financial system requirements analysis has included evaluation of new technology and the handling of process flows, financial controls and required resources. UCOP will require the functionality to complete multi-year budgets.

  • Estimated Completion Date: April 2020
  • Response Date: October 2017

California State Auditor's Assessment of 6-Month Status: Pending

The status of this recommendation is pending the Office of the President's implementation of our budget recommendations due in April 2018 and April 2019.


60-Day Agency Response

Implementation of this recommendation is dependent on actions taken in response to the April 2018 recommendations.

A budget process work group has been formed and has begun early stages of scoping a robust budget system to replace the existing limited functionality of the current Budget Development System (BDS). In connection with the UCLA financial systems replacement project (UCOP leverages UCLA general ledger and procurement modules), the work group is reviewing budget systems at some of the campuses to evaluate process and technology. In connection with a BDS replacement, the work group will (1) evaluate current process, flows and budget controls and (2) evaluate technology and implement updated systems with new policies, procedures and controls documented in our requirements. Any UCOP investment in an updated budgeting tool will be functionality to complete multi-year budgets.

  • Estimated Completion Date: April 2020
  • 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 implementation of our budget recommendations due in April 2018 and April 2019.


All Recommendations in 2016-130

Agency responses received are posted verbatim.