Report 2016-125.1 Recommendation 14 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 #14 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 implement a process to centrally direct these benefits to ensure that university locations use them to support the university's core missions.

60-Day Agency Response

The benefits created through UC Procurement's involvement are used by campuses to support the core mission of teaching, research and public service. As stated in the University's initial response, implementing a process as described in this recommendation would not only place a significant administrative burden on campus units to track savings and document expenditures from those savings, but also create a dynamic that would limit the incentive for units to generate savings in the face of UC either prescribing the use of those funds or ultimately shifting them to another unit or campus altogether. In addition to the disincentives, it is not in the best interests of a campus to have the Office of the President direct how it spends these savings, as that determination is properly and best left to the campus.

  • Estimated Completion Date:
  • Response Date: October 2017

California State Auditor's Assessment of 60-Day Status: Will Not Implement

The State Auditor's recommendation would achieve a measure of accountability that the Office of the President currently lacks in its systemwide procurement initiative. Specifically, our recommendation would ensure that university locations are using the benefits from the systemwide procurement initiative to further the university's core missions. Absent measures of accountability over the university locations' use of these benefits and its unwillingness to adopt our recommendation, the Office of the President's assertion that university locations have redirected these benefits to the university's core missions lacks credibility.

All Recommendations in 2016-125.1

Agency responses received are posted verbatim.