Report 2016-125.1 Recommendation 13 Responses

Report 2016-125.1: The University of California Office of the President: It Has Not Adequately Ensured Compliance With Its Employee Displacement and Services Contract Policies (Release Date: August 2017)

Recommendation #13 To: University of California

To maximize benefits from the systemwide procurement initiative and to ensure that the university uses those benefits for its teaching, research, and public service missions, the Office of the President should revise its guidance to ensure the benefits that university locations claim result from only procurement-related activities.

1-Year Agency Response

UC Procurement Services distributed communications to refresh all users across the UC system on reporting benefits in accordance with the instruction that "Total UC Benefit is defined as the total annual benefit generated by procurement actions". The communication also provided reminders about the process/documentation for benefit submissions, approvals and audits; and, referenced the website that provides additional job aids/documentation.

https://www.ucop.edu/procurement-services/procurement-systems/uc-benefit-training.html

UC Health continues its efforts as outlined in the 6 month update. A new tool has been identified and will be fully implemented by the fourth quarter of calendar year 2018, which will enhance the ability to capture, monitor, report and validate procurement related contracting and saving initiatives. The tools will also provide the ability to evaluate the value and impact of each initiative for the system and the local medical centers and will identify loss opportunities for the failure to implement all saving recommendations.

  • Completion Date: June 2018
  • Response Date: August 2018

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

The university's Procurement Services updated its training to emphasize the need to ensure that claims of benefits from procurement be tied only to procurement actions.

The university's action regarding its locations that are health centers (Davis, Irvine, Los Angeles, San Diego, and San Francisco) is pending due to an outstanding implementation date (end of 2018).

  • Auditee did not substantiate its claim of full implementation

6-Month Agency Response

The Office of the President oversees two systemwide procurement functions: UC Procurement Services and UC Health.

UC Procurement Services is currently generating communications to refresh all users across the UC system on reporting benefits in accordance with the instruction that "Total UC Benefit is defined as the total annual benefit generated by procurement actions". These communications will be delivered by 3/31/2018.

As stated in the response to recommendation #12, UC Health has implemented processes to collect contracting and saving initiatives for system wide and local efforts. This dashboard only collects work performed by the system wide and local procurement teams. UC Health continues to work with the medical centers to standardize procurement processes and tracking and reporting of contracting and saving initiatives. As part of this effort, UC Health is implementing a new tool that will enhance their ability to capture, monitor, report and validate procurement related contracting and saving initiatives.

  • Estimated Completion Date: March 2018
  • Response Date: February 2018

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


60-Day Agency Response

UC Procurement will review its guidance to ensure it appropriately reflects the contribution of Procurement. UC Procurement will provide Benefits Bank refresher training to ensure all users understand the process of recording and documenting benefits and are using it correctly.

  • Estimated Completion Date: March 2018
  • Response Date: October 2017

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


All Recommendations in 2016-125.1

Agency responses received are posted verbatim.