Report 2012-113 Recommendation 25 Responses

Report 2012-113: California State University's Extended Education: It Is Unclear Whether Supplanting Occurred, and Campuses Did Not Always Document Their Adherence to Laws, Policies, and Procedures (Release Date: December 2013)

Recommendation #25 To: San Jose, California State University

To ensure that the CERF trust account bears a reasonable portion of the campuswide instructional technology upgrade project's costs, San Josť State should immediately determine the proportionate share of the project cost each stakeholder, including extended education, should bear and, if necessary, transfer funds back to the CERF trust account.

Agency Response*

The campus had originally allocated $13.2 million of the $28 million NextGen project to the CERF fund (as per audit report page 56). We have now reduced this amount by $4 million to result in a total of $9.2 million allocated charges to CERF. Complete details of new allocation methodology, and of the return of $4 million from NextGen to CERF, are being sent separately to CSA via email.

  • Response Type†: 60-Day
  • Completion Date: December 2013
  • Response Date: February 2014

California State Auditor's Assessment of Status: Fully Implemented

According to an internal "note to file" provided by the campus, San Josť State determined that the distribution [or proportion] of courses taught online was the appropriate method for allocating costs for its NextGen project. The campus calculated that about 1/3 of the courses taught online during Fall 2013 were extended education and about 2/3 were state-supported. By applying these proportions, the campus reduced extended education's share of the NextGen project's cost from $13.2 million to $9.2 million, resulting in $4 million being returned to the campuse's CERF fund.

All Recommendations in 2012-113

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.

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