Report 2016-130 Recommendation Responses
Report 2016-130: The University of California Office of the President: It Failed to Disclose Tens of Millions in Surplus Funds, and Its Budget Practices Are Misleading (Release Date: April 2017)
Recommendation for Legislative Action
To ensure that the Office of the President's actions align with the university's primary mission, the Legislature should appropriate an amount directly to the Office of the President through the annual state budget process that eliminates the need for a campus assessment. Based on the Office of the President's actions as it implements its three-year plan, evaluate the amount of the direct appropriation annually. Once the Office of the President has completed the three-year plan, evaluate the necessity of a continued direct appropriation after assessing the strength of the Office of the President's new budget, accounting, and staffing policies, as well as its demonstrated commitment to ongoing transparency.
Description of Legislative Action
Assembly Bill 97, the Budget Act of 2017, appropriates $296 million to the Office of the President and provides that the funds may only be encumbered if the President certifies in writing to the California Department of Finance that there will be no campus assessment for support of that office for the 2017-18 fiscal year and overall campus revenues will be greater in the 2017-18 fiscal year than in the previous fiscal year.
- Legislative Action Current As-of: November 2017
California State Auditor's Assessment of 6-Month Status: Legislation Enacted