Report 2016-125.1 Recommendation 3 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 #3 To: University of California

To ensure that university locations adequately justify the necessity of contracts that will displace university employees, the Office of the President should actively enforce compliance with the displacement guidelines by monitoring university locations for compliance, providing regular training on the displacement guidelines to university locations, and amending the displacement guidelines to state that the Office of the President's human resources department has the authority to approve or reject displacement decisions.

Annual Follow-Up Agency Response From October 2018

The University completed the consultative process and implemented a more thorough HR review process on December 11, 2017 which includes a preliminary financial review. The revised Guidelines and Template were issued December 11, 2017 to all locations and were posted on appropriate UCOP websites.

The revised Guidelines and Template were reviewed with Chief Human Resources Officers (CHROs) from all locations on the January 2018 monthly HR Leadership call. This review will be provided at least annually.

Either through Systemwide labor relations or local labor relations and/or new manager/supervisor training, training on the union contracts is held for managers that have operations to interact with the labor unions. Contracting out is a specific article in each of the University's union contracts that is covered in this training. This training is provided at least annually.

Systemwide HR Compliance will continue its current compliance efforts of requesting all locations provide any contracting out information related to new facilities; in addition, in October 2018 HR Compliance began requesting any contracting out for existing facilities to monitor compliance with the Contracting for Services Guidelines.

  • Completion Date: October 2018

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The University shared its updated Guidelines and data collection sheets, which will help it better ensure that decisions to contract out are thoroughly reviewed and approved.


1-Year Agency Response

The University completed the consultative process and implemented a more thorough HR review process on December 11, 2017 which includes a preliminary financial review. The revised Guidelines and Template were issued December 11, 2017 to all locations and were posted on appropriate UCOP websites.

The revised Guidelines and Template were reviewed with Chief Human Resources Officers (CHROs) from all locations on the January 2018 monthly HR Leadership call. This review will be provided at least annually.

Either through Systemwide labor relations or local labor relations and/or new manager/supervisor training, training on the union contracts is held for managers that have operations to interact with the labor unions. Contracting out is a specific article in each of the University's union contracts that is covered in this training. This training is provided at least annually.

Systemwide HR Compliance will continue its current compliance efforts of requesting all locations provide any contracting out information related to new facilities; in addition, in the Fall of 2018 HR Compliance will also begin requesting any contracting out for existing facilities to monitor compliance with the Contracting for Services Guidelines.

  • Estimated Completion Date: Fall 2018
  • Response Date: August 2018

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


6-Month Agency Response

The University completed the consultative process and implemented a more thorough HR review process on December 11, 2017 which includes a preliminary financial review. The revised Guidelines and Template were issued December 11, 2017 to all locations and were posted on appropriate UCOP websites.

The revised Guidelines and Template were reviewed with Chief Human Resources Officers (CHROs) from all locations on the January 2018 monthly HR Leadership call. This review will be provided at least annually.

Either through Systemwide labor relations or local labor relations and/or new manager/supervisor training, training on the union contracts is held for managers that have operations to interact with the labor unions. Contracting out is a specific article in each of the University's union contracts that is covered in this training. This training is provided at least annually.

  • Completion Date: January 2018
  • Response Date: February 2018

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

We acknowledge that the university has made significant progress in addressing this recommendation. However, in a follow-up response to us, the university indicates that the systemwide human resources office will continue to monitor contracting for services at new facilities, but it will not begin to monitor contracting for services at existing facilities until fall 2018.

  • Auditee did not substantiate its claim of full implementation

60-Day Agency Response

Systemwide HR is revising the existing displacement guidelines and creating a template to ensure consistency. It will also be implementing a more thorough HR review which will include a preliminary financial review before the approval process is completed. The revised guidelines and template will be distributed to the campus locations. Systemwide HR will also advise the campus locations to incorporate an overview of the revised displacement guidelines into existing trainings.

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

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


All Recommendations in 2016-125.1

Agency responses received are posted verbatim.