Report 2010-105 Recommendations and Responses in 2014-041

Report 2010-105: University of California: Although the University Maintains Extensive Financial Records, It Should Provide Additional Information to Improve Public Understanding of Its Operations

Department Number of Years Reported As Not Fully Implemented Total Recommendations to Department Not Implemented After One Year Not Implemented as of 2013-041 Response Not Implemented as of Most Recent Response
University of California 3 8 7 4 3

Recommendation To: University of California

To address the variations in per student funding of its campuses, the university should complete its reexamination of the base budgets to the campuses and implement appropriate changes to its budget process. As part of its reexamination of the base budget, it should:
Identify the amount of general funds and tuition budget revenues that each campus receives for specific types of students (such as undergraduate, graduate, and health sciences) and explain any differences in the amount provided per student among the campuses.
Consider factors such as specific research and public service programs at each campus, the higher level of funding provided to health sciences students, historical funding methods that favored graduate students, historical and anticipated future variations in enrollment growth funding, and any other factors applied consistently across campuses.
After accounting for the factors mentioned above, address any remaining variations in campus funding over a specified period of time.
Make the results of its reexamination and any related implementation plan available to stakeholders, including the general public.

Response

The implementation of rebenching of State funds is in its third year and is continuing on track as planned. We estimate that it will take six years in total to complete the rebenching effort based on certain expectations of future funding levels from the State.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: 6/30/2018
  • Response Date: October 2014

Recommendation To: University of California

To help improve accountability in the university's budget process, and to help minimize the risk of unfair damage to its reputation, the university should take additional steps to increase the transparency of its budget process. Specifically, the Office of the President should update its budget manual to reflect current practices and make its revised budget manual, including relevant formulas and other methodologies for determining budget amounts, available on its Web site.

Response

Work continues on the development of the new budget manual. While we have had ongoing communication to ensure our staff are following current process, formalizing this guidance in the updated budget manual has taken longer than expected. With the implementation of two new major processes for allocation of funds, the areas that need to be covered by the budget manual have expanded considerably. At the same time, the workload in the systemwide budget office has increased dramatically, in part due to ongoing requests from the State government. It is expected that a new budget manual will now be completed in time for the 2015-16 academic year.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: 8/1/2015
  • Response Date: October 2014

Recommendation To: University of California

To increase the transparency of university funds, the Office of the President should make available annually financial information regarding its funds, including beginning and ending balances; revenues, expenses, and transfers; and the impact of these transactions on the balances from year to year.

Response

Below is a link to the 2012-13 campus financial schedules. The last page of the consolidated schedules is a new report that was added this year to respond to the State Auditor's recommendation that reserve balances should be disclosed.

http://www.ucop.edu/financial-accounting/financial-reports/campus-financial-schedules/

  • California State Auditor's Assessment of Status: Fully Implemented
  • Completion Date: January 2014
  • Response Date: January 2014

Recommendation To: University of California

To ensure that campuses do not inappropriately use revenues generated from student fees imposed by referenda, the university should ensure that it, the regents, and the campuses do not expand the uses for such revenues beyond those stated in the referenda.

Response

See prior response (over character limit for this form)

  • California State Auditor's Assessment of Status: Will Not Implement
  • Response Date: October 2013

Current Status of Recommendations

All Recommendations in 2014-041