Report 2007-102.1 Recommendation 4 Responses

Report 2007-102.1: California State University: It Needs to Strengthen Its Oversight and Establish Stricter Policies for Compensating Current and Former Employees (Release Date: November 2007)

Recommendation #4 To: University, California State

The university should work through the regulatory process to develop stronger regulations governing paid leaves of absence for management personnel. The improved regulations should include specific eligibility criteria, time restrictions, and provisions designed to protect the university from financial loss if an employee fails to render service to the university following a leave. For example, the regulations should require all employees applying for a paid leave of absence to submit a bond that would indemnify the university if the employee fails to render service to the university following a leave of absence. The university should also maintain appropriate documentation supporting any leaves of absence it grants. Finally, the board should establish a policy on the extent to which it wants to be informed of such leaves of absence for management personnel.

Annual Follow-Up Agency Response From October 2013

The MPP Administrative Leave Indemnification and Return to Service Requirements (Attachment A - Report 2007.102.1, Recommendation #4) was implemented in August 2013. The technical letter to the campuses includes specific eligibility criteria, time restrictions, and provisions designed to protect the CSU from financial loss if an employee fails to render service to the university following a leave. The technical letter also provides campuses with the forms necessary to document the leave, a promissory note, and a statement of assets the employee must sign and notarize and return to the CSU prior to commencement of the leave.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From September 2012

Improved regulations that include specific eligibility criteria and time restrictions for paid leaves of absences for management personnel have already been implemented, as seen in Technical Letter HR/Leaves 2009-01 (Attachment A). In response to the need for provisions designed to protect the university from financial loss if an employee fails to render service to the university following a leave, CSU will develop a return service obligation that contains requirements for university indemnification for management personnel given a paid administrative leave pursuant to Section 42729 (b) only. Section 42729 (a) type leaves will not require a return service obligation and therefore no bond submission.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

All Recommendations in 2007-102.1

Agency responses received after June 2013 are posted verbatim.