Report 2010-105 Recommendation 7 Responses

Report 2010-105: University of California: Although the University Maintains Extensive Financial Records, It Should Provide Additional Information to Improve Public Understanding of Its Operations (Release Date: July 2011)

Recommendation #7 To: University of California

To improve the transparency of its expenses, the university should identify more specific categories for expenses that are recorded under the Miscellaneous Services accounting code and should implement object codes that account for these expenses in more detail.

Annual Follow-Up Agency Response From October 2013

Please see attached letter to the Honorable Adam C. Gray, Member of the Assembly. (emailed to dalec@auditor.ca.gov on 10/15/13)

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

The university notes that it examined expenses recorded under the Miscellaneous Services accounting code. It estimates that between 13 and 17 percent of the expenses recorded under Miscellaneous Services from fiscal year 2005-06 through 2011-12 were appropriately categorized. To more accurately account for the remaining expenses, the university has adjusted its accounting practices and created new accounting codes. According to the university, campuses were required to implement these new practices by June 30, 2013.

Annual Follow-Up Agency Response From October 2012

The information systems changes were completed prior to 6/30/2012. Data is now being gathered in the correct accounts for fiscal year 2012-2013. We expect miscellaneous services to significantly decrease for fiscal year 2012-2013

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

All Recommendations in 2010-105

Agency responses received after June 2013 are posted verbatim.