Report 2012-113 Recommendation 8 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 #8 To: Long Beach, California State University

To ensure that it sets self-supported fees for extended education in accordance with state law and Executive Order 1054, CSU Long Beach should immediately take the following action: prepare a statement of revenues and expenditures for the Bachelor of Science in Engineering Degree Completion Program for Electrical Engineering that we discuss in this report and, if necessary, increase or decrease that program's future fees to appropriate levels.

1-Year Agency Response

The College of Continuing and Professional Education (CCPE) reviewed the methodology with the CSU Long Beach management to ensure all appropriate direct and indirect costs are covered. The income statement has been prepared using the revised CCPE cost allocation plan as described in our response for Recommendation #9. The income statement was prepared using data from the upcoming cohort #4 which runs through FY 2016/17.

Supporting Documentation: Revised cost allocation plan methodology (Attachment A and B) and revised statement of revenues and expenditures for the Bachelor of Science in Engineering Degree Completion Program for Electrical Engineering (Attachment A)

California State Auditor's Assessment of 1-Year Status: Fully Implemented

We concur that CSU Long Beach has substantially implemented this recommendation. CSU Long Beach prepared a statement of revenues and expenditures for the Bachelor of Science in Engineering Degree Completion Program for Electrical Engineering (program) showing that student fees needed to increase from $495 per unit to $650 per unit to cover program costs. However, CSU Long Beach stated that it "had no intention to increase the fee at this time". It also stated that it did not increase the fee because it had not marketed the program as such; that other external agencies provide substantial support to the program that help bring down program costs; and that as CSU Long Beach moves forward with implementing a new cost allocation plan methodology, it "may need to increase the fee at a reasonable rate."

6-Month Agency Response

The College of Continuing and Professional Education is reviewing the methodology with the CSU Long Beach management to ensure all appropriate direct and indirect costs are covered.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

To complete this action, the direct and reinvestment allocation methods and percentages must be established. As noted in the other comments below, each of these actions are under development. Once they are defined, the statement of revenues and expenditures will be completed using the format described in Executive Order 1054.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2012-113

Agency responses received are posted verbatim.