To strengthen its oversight of payments made from the CERF trust account, CSU Long Beach should immediately take the following action: review and document the appropriateness of the campus partners' allocation percentages using current data and, if needed, adjust the percentages.
Pre-audit, the campus partners shared a percentage of revenue to offset the indirect cost they incurred to support a program.
Based on the audit Recommendation #9, we now have a revised cost allocation plan. The campus partner indirect costs incurred to support a program are now contained within an indirect cost pool (called Campus Partner Overhead) and assigned to a program using the auditor's recommended direct cost allocation method.
Supporting Documentation: Attachment B
Corrective action still in progress.
The CCPE is currently reviewing campus partner allocation percentages to ensure that the rates are appropriate. A draft analysis will be completed in the coming months. Numerous meetings will need to be conducted with partners to conclude the final analysis and agreement on potential adjustments.
†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.