Report 2007-102.1 Recommendation 5 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 #5 To: University, California State

The university should strengthen its policy governing the reimbursement of relocation expenses. For example, the policy should include comprehensive monetary thresholds above which board approval is required. In addition, the policy should prohibit reimbursements for any tax liabilities resulting from relocation payments. Finally, the board should require the chancellor to disclose the amounts of relocation reimbursements to be offered to incoming executives.

Annual Follow-Up Agency Response From September 2012

The Chancellor had a general discussion with the CSU Board of Trustees (board) regarding its involvement in approving relocation reimbursements. The board determined that revising the policy to include monetary thresholds that would require progressive levels of authority for approval, with the Chancellor or President of a campus having to approve the highest threshold, would be sufficient. The CSU distributed a revised relocation policy in January 2012 that includes such progressive monetary thresholds and a prohibition against reimbursing employees for any tax liabilities that result from receiving relocation payments. In addition, CSU reports relocation reimbursements to the board on an annual basis.

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

All Recommendations in 2007-102.1

Agency responses received after June 2013 are posted verbatim.