Report 2016-122 Recommendation 7 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 #7 To: University, California State

To better ensure the reasonability of the reimbursements CSU pays for relocation and moving expenses, the Chancellor's Office should, by October 2017, place an appropriate cap on the amount it will reimburse CSU executives for relocation and moving expenses, based on either a dollar amount or a percentage of base salary. If the chancellor authorizes a reimbursement amount greater than this cap, the chancellor should submit a written explanation to the board to justify the payment.

1-Year Agency Response

On December 19, 2017, the Chancellor's Office issued Human Resources Letter 2017-15 to implement updated systemwide policy guidelines for moving and relocation of individuals who change their place of residence due to the acceptance of a position with the CSU under specified circumstances. The policy establishes a monetary threshold (cap) of $75,000 for reimbursement of moving and relocation expenses. Exceptions to the cap shall be approved by the chancellor for executives and Chancellor's Office employees. In addition, the chancellor submits an Annual Report on Vice President Compensation, Executive Relocation, and Executive Transition to the Board of Trustees. This report includes a breakdown by executive of the type and amount of moving and relocation expense, and it will include a written justification if the cap was exceeded on an exceptional basis.

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

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


6-Month Agency Response

The Chancellor's Office is finalizing a policy that will establish a cap on the amount the CSU will reimburse for moving and relocation expenses. Exceptions to the cap shall be approved by the chancellor for executives and Chancellor's Office employee reimbursements. In addition, the chancellor submits an Annual Report on Vice President Compensation, Executive Relocation, and Executive Transition to the Board of Trustees. This report includes a breakdown by executive of the type and amount of moving and relocation expense.

  • 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 establishing a reasonable cap on the amount the CSU will reimburse for moving and relocation expenses, with the possibility of exception as noted in the recommendation. The policy will include an accountability mechanism to document compliance.

  • 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.