Report 2016-130 Recommendation 6 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 #6 To: University of California

To determine the amount of money that it can reallocate to campuses and to ensure that it publicly presents comprehensive and accurate budget information, by April 2018 the Office of the President should increase opportunities for campus stakeholder involvement in the budget development process by reconvening the campus budget committee and establishing an agreed-upon charter that describes the committee's scope, role, and protocol for reviewing and providing comments on the Office of the President's annual budget.

6-Month Agency Response

President Napolitano has reconvened and expanded the scope of the UCOP budget Executive Budget Committee (EBC). The EBC has completed its charter describing the committee's role and protocol for reviewing and providing input on the Office of the President's annual budget. In its critical advisory capacity to the President, the EBC consists of leaders from every campus, Academic Senate representatives, and UCOP leadership . The EBC met in August and September and plans to continue meeting regularly, with meetings occurring monthly for the remainder of 2017.

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

The Executive Budget Committee Charter (charter) establishes a process in which the Office of the President and campus representatives are engaged in the Office of the President budget process. Specifically, the charter requires the Executive Budget Committee (committee) to review, advise, and make recommendations to the President on the development of the Office of the President's budget including the budget process and presentation. The charter requires monthly meetings during the budget development process and the committee must report on its activities at least annually.

60-Day Agency Response

A budget process work group has been formed and meets regularly. In connection with this recommendation, UCOP did conduct a review of the FY17-18 budget with campus stakeholders (VCPBs) on May 5th, prior to the May Regents presentation. Moving forward, the work group is focused on (1) expanding the involvement of key stakeholders, (2) documenting processes, and (2) formalizing governance for UCOP budget development.

The President has reconvened and expanded the scope of the UCOP budget Executive Budget Committee (EBC), and a charter is being developed to include governance of the UCOP budget. The EBC consists of campus leaders from every campus, Academic Senate representatives, and UCOP leaders, and will serve in an advisory capacity to the President. Its first meeting is being scheduled for August 2017.

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

The status of this recommendation is pending the Office of the President's development of a charter for the Executive Budget Committee. The current Executive Budget Committee charter provided by the Office of the President does not adequately define the committee's scope, role, and protocol for reviewing and providing comments on the Office of the President's annual budget.

All Recommendations in 2016-130

Agency responses received are posted verbatim.