Report 2016-122 Recommendation 12 Responses

Report 2016-122: California State University: Stronger Oversight Is Needed for Hiring and Compensating Management Personnel and for Monitoring Campus Budgets (Release Date: April 2017)

Recommendation #12 To: University, California State

Within six months, the Chancellor's Office should revise its policy to clarify when campuses need to obtain indemnifications from management personnel who will be on paid administrative leave and should begin monitoring campuses to ensure that they are adhering to its policy.

1-Year Agency Response

On December 19, 2017, the Chancellor's Office issued Human Resources Letter 2017-14 to clarify when campuses must obtain indemnifications. Specifically, the policy for obtaining an indemnification applies only if the reassignment is voluntary, for example in situations where the management personnel employee is preparing for a faculty position or taking a professional development leave. We believe existing controls, coupled with the clarification provided in the updated policy, are sufficient and that establishing additional monitoring controls would not be an efficient use of resources. However, to the extent that monitoring compliance with this requirement falls reasonably within the scope of either a remote or onsite campus review being conducted by a Chancellor's Office division or department, we will include the monitoring in the scope of work.

  • Completion Date: December 2017
  • Response Date: June 2018

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


6-Month Agency Response

The Chancellor's Office has drafted a revised policy to clarify that the policy will apply only if the paid administrative leave is voluntary. In the event of a voluntary administrative leave, campuses must obtain an indemnification from management personnel. We anticipate issuing the policy by December 2017.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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


60-Day Agency Response

The Chancellor's Office is revising the existing policy to clarify when campuses need to obtain indemnifications. We are also in the process of developing a methodology to ensure appropriate monitoring by the Chancellor's Office is in place.

  • Estimated Completion Date: October 2017
  • Response Date: June 2017

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


All Recommendations in 2016-122

Agency responses received are posted verbatim.