Report 2016-122 All Recommendation Responses

Report 2016-122: California State University: Stronger Oversight Is Needed for Hiring and Compensating Management Personnel and for Monitoring Campus Budgets (Release Date: April 2017)

Recommendation #1 To: University, California State

To improve the oversight of CSU's management personnel, the Chancellor's Office should develop a policy that requires its own divisions and departments and campuses to prepare written justifications for both the purpose and specific number of proposed additional management positions. As appropriate, these should justify the number of management personnel positions to be hired based on a workload staffing analysis and the number of people to be supervised. The Chancellor's Office should also require human resources units to maintain these justifications and make them publicly available to stakeholders when requested. No later than one year following the issuance of this new policy, the Chancellor's Office should begin monitoring its own divisions and departments and campuses to ensure that they are properly justifying all new management personnel hires.

1-Year Agency Response

On March 27, 2018, the Chancellor's Office issued Human Resources Letter 2018-04 to require written justifications for both the purpose and specific number of proposed additional management positions. The policy also provides examples of the types of information the justifications may include and provides a template the Chancellor's Office and campuses can use for monitoring compliance. A minimum three-year record retention period is specified, along with direction to make the justifications publicly available to stakeholders when requested. Further, to the extent that monitoring compliance with this requirement falls reasonably within the scope of either a remote or onsite campus review being conducted by a Chancellor's Office division or department, we will include the monitoring in the scope of work.

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

6-Month Agency Response

The Chancellor's Office is finalizing a policy that requires written justifications for both the purpose and specific number of proposed additional management positions. As appropriate, the justifications should include the number of management personnel positions to be hired based on a workload staffing analysis and the number of people to be supervised. The policy will address required archiving of the justification documents. In addition, the policy will include instructions for the campuses to conduct sample testing to ensure they are properly justifying new management personnel hires.

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

60-Day Agency Response

The Chancellor's Office is developing a policy that requires written justifications for both the purpose and specific number of proposed additional management positions. As appropriate, the justifications should include the number of management personnel positions to be hired based on a workload staffing analysis and the number of people to be supervised. The policy will address required archiving of the justification documents. We estimate the policy will be issued by January 2018.

In addition, we are developing a methodology to ensure appropriate monitoring by the Chancellor's Office is in place. We expect to begin monitoring within one year following the issuance of the new policy.

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

Recommendation #2 To: University, California State

To improve the oversight of CSU's management personnel, the Chancellor's Office should ensure that its own divisions and departments and campuses create, implement, and adhere to a written merit evaluation plan for management personnel in accordance with state regulations. Furthermore, the Chancellor's Office should monitor its own divisions and departments and campuses to ensure that they are complying with their merit evaluation plans and are granting raises to management personnel only based on merit as evidenced by current, documented performance evaluations.

1-Year Agency Response

On March 26, 2018, the Chancellor's Office issued Human Resources Letter 2018-05 to comply with Title 5, Section 42722 of the California Code of Regulations and require the creation and implementation of and adherence to a written merit evaluation plan. The policy requires campuses and the Chancellor's Office to comply with their written merit evaluation plans and grant raises to management personnel only based on merit as evidenced by current, documented performance evaluations. The policy also requires periodic monitoring and provides a template that may be used for that purpose. In addition, to the extent that monitoring compliance with this requirement falls reasonably within the scope of either a remote or onsite campus review being conducted by a Chancellor's Office division or department, we will include the monitoring in the scope of work.

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

6-Month Agency Response

The Chancellor's Office will remind Chancellor's Office and campus personnel of the requirement in the California Code of Regulations, Title 5, to develop and administer a merit evaluation plan and comply with the plan when granting raises to management personnel; raises should be based on merit as evidenced by a current, documented performance evaluation. Chancellor's Office personnel will conduct a review to determine that the Chancellor's Office and campuses develop and administer a merit evaluation plan. Further, the Chancellor's Office will send an annual reminder that the Chancellor's Office and campuses should adhere to the written merit evaluation plan. The reminder will provide guidance to the campuses for monitoring compliance with the requirement that a documented performance evaluation be on file prior to granting merit increases to management personnel.

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

60-Day Agency Response

The Chancellor's Office will direct the campuses to create, implement, and adhere to a written merit evaluation plan for management personnel. In addition, we are developing a methodology to ensure appropriate monitoring by the Chancellor's Office is in place.

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

Recommendation #3 To: University, California State

To improve the oversight of CSU's management personnel, the Chancellor's Office should work with campuses, bargaining unit representatives, the Public Employment Relations Board, and others as necessary to come to an agreement on the appropriate classification of coaches. The Chancellor's Office should take into account the concerns that San Diego State has raised about the labor market for these employees.

Annual Follow-Up Agency Response From August 2023

As noted in our previous responses, this is an issue that needs to be addressed through the collective bargaining process and cannot be unilaterally imposed. The parties have agreed to the duties and requirements of three new coach classifications to replace the existing classifications, but the parties are not in agreement on the salaries for these new classifications. Negotiations with the California Faculty Association are ongoing. The parties continue to meet and hope to resolve this issue.

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

Annual Follow-Up Agency Response From October 2022

As noted in our previous responses, this is an issue that needs to be addressed through the collective bargaining process. There have been delays in the process and shifts in focus due to the COVID-19 pandemic, but the negotiations with the California Faculty Association are ongoing. The parties continue to meet regularly and are close to resolving this issue.

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

Annual Follow-Up Agency Response From October 2021

As noted in our previous responses, this is an issue that needs to be addressed through the collective bargaining process. There have been delays in the process and shifts in focus due to the COVID-19 pandemic, but the negotiations with the California Faculty Association are ongoing. The parties are meeting regularly and are aware this issue still needs to be finalized.

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

Annual Follow-Up Agency Response From October 2020

As reported previously, for those athletic coaches who are in a bargaining unit, CSU proposed changes to the California Faculty Association (CFA) regarding the classification standards. Those were presented to CFA in April 2019 and the meet and confer process was proposed. Although the CSU proposed several possible dates, the meet and confer did not occur before the full contract collective bargaining was scheduled to begin in early 2020.

In addition, prior to starting any full contract negotiations, the COVID-19 outbreak occurred. In May 2020, a two-year extension of the existing contract was approved. CSU will again attempt to schedule a meet and confer on the topic of athletic coaches in late 2020.

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

Annual Follow-Up Agency Response From October 2019

In March 2019, the Chancellor's Office issued Human Resources Letter HR 2019-02 (policy). The policy addresses definite-term appointments for Management Personnel Plan (MPP) athletics personnel, i.e., coaches and athletic directors. The policy notes that, in general, athletic coaches are represented by the California Faculty Association (CFA). However, according to a memorandum of understanding between the California State University and the CFA, an athletic coach who supervises two or more employees is excluded from the bargaining unit and should be included in the MPP. If not, the athletic coach position is classified in a faculty unit classification. The MPP pay scale allows more flexibility to take into account the concerns raised about the challenges in the labor market.

For those athletic coaches who are in the bargaining unit, CSU proposed changes to CFA regarding the classification standards. Those were presented to CFA in April 2019 and the meet and confer process continues. However, given that full contract collective bargaining begins in January 2020, we anticipate that dialogue pertaining to the classification standards will be delayed.

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

Annual Follow-Up Agency Response From October 2018

The Chancellor's Office is currently finalizing the internal process related to the changes in position classification standards. The proposed changes will then go to the union for review as part of the meet and confer process.

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

1-Year Agency Response

The process to determine an appropriate classification for coaches continues and a draft letter regarding position classification and occupational standards was sent to campuses for review in November 2017. The advisory panel is currently reviewing campus feedback.

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

6-Month Agency Response

A new advisory panel of subject-matter experts (panel) met in June 2017. Their objective is to create a coaches series classification structure that allows the CSU to successfully recruit and retain employees. In July 2017, the panel reviewed and proposed revisions to the draft standards that were developed previously. The panel met again in August, September, and October 2017 and a final draft is under review. A salary study will be conducted once the standards are finalized. Proposed standards will be discussed with bargaining unit representatives as part of the collective bargaining process.

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

60-Day Agency Response

The CSU has initiated discussions with the relevant collective bargaining unit and is making progress to implement changes to accommodate classification and compensation needs for athletic coaches.

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

Recommendation for Legislative Action

To improve its budget oversight of CSU, the Legislature should require CSU to submit an annual report that provides information on specific activities that CSU engaged in during the previous year to meet the State's goals for student success.

Description of Legislative Action

As of April 20, 2022, the Legislature has not taken action in the 2021-22 Legislative Session to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

As of April 20, 2021, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

As of April 20, 2020, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

The Legislature has not taken any recent action to address this specific recommendation.

SB 1351 (Hernandez), was introduced during the 2017-18 legislative session and would have required on or before July 1, 2019, and every year thereafter, the CSU Chancellor's Office to submit a report to both houses of the Legislature and the appropriate fiscal and policy committees that provide information relating to specific activities that the university engaged in during the previous year to meet the State's goals for student success, among other things. This bill died in the Senate Education Committee.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

Senate Bill 1351 (Hernandez) would require on or before July 1, 2019, and every year thereafter, the CSU Chancellor's Office to submit a report to both houses of the Legislature and the appropriate fiscal and policy committees that provides information relating to specific activities that the university engaged in during the previous year to meet the State's goals for student success, among other things.

California State Auditor's Assessment of 1-Year Status: Legislation Introduced

Recommendation #5 To: University, California State

To ensure effective, consistent budget oversight at CSU campuses, the Chancellor's Office should require campuses to develop and implement budget oversight policies that define the minimum level and frequency of reviews that budget managers are required to perform, including the periodic comparison of budgets to actual spending levels, the types of corrective actions to take when they identify budget anomalies, and the retention of appropriate records of those reviews.

6-Month Agency Response

On October 13, 2017, the Chancellor's Office issued additional guidance regarding best practices for campus budget oversight. The guidance, contained in the Integrated California State University Administrative Manual, Section 2002, instructs each campus and the Chancellor's Office to establish written policies and procedures that specify the minimum level and frequency of reviews to monitor budget performance. The reviews to compare budgeted and actual revenue and expenditures must be documented, occur at least twice per year, and include any actions taken to resolve discrepancies. The documentation should be retained in accordance with campus written retention policies and should include details on the research to be conducted, a resolution plan, and expected and final completion dates.

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

60-Day Agency Response

The Chancellor's Office is developing additional guidance regarding best practices for campus budget oversight.

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

Recommendation #6 To: University, California State

To minimize concerns regarding possible conflicts of interest, the Chancellor's Office should work with the board to develop, approve, and implement an executive compensation policy that expressly prohibits the use of foundation funds to pay campus presidents.

6-Month Agency Response

At the September 2017 meeting of the Board of Trustees (board), the board approved a revision to the existing policy on presidential compensation. The revision formalized the existing practice of prohibiting the use of auxiliary organization funds to pay campus presidents and specified that, as of January 1, 2018, presidential salary can only be funded with state funds.

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

60-Day Agency Response

The Chancellor's Office is in the process of revising the existing executive compensation policy to reflect the current practice prohibiting the use of foundation funds to pay campus presidents.

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

Recommendation #7 To: University, California State

To better ensure the reasonability of the reimbursements CSU pays for relocation and moving expenses, the Chancellor's Office should, by October 2017, place an appropriate cap on the amount it will reimburse CSU executives for relocation and moving expenses, based on either a dollar amount or a percentage of base salary. If the chancellor authorizes a reimbursement amount greater than this cap, the chancellor should submit a written explanation to the board to justify the payment.

1-Year Agency Response

On December 19, 2017, the Chancellor's Office issued Human Resources Letter 2017-15 to implement updated systemwide policy guidelines for moving and relocation of individuals who change their place of residence due to the acceptance of a position with the CSU under specified circumstances. The policy establishes a monetary threshold (cap) of $75,000 for reimbursement of moving and relocation expenses. Exceptions to the cap shall be approved by the chancellor for executives and Chancellor's Office employees. In addition, the chancellor submits an Annual Report on Vice President Compensation, Executive Relocation, and Executive Transition to the Board of Trustees. This report includes a breakdown by executive of the type and amount of moving and relocation expense, and it will include a written justification if the cap was exceeded on an exceptional basis.

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

6-Month Agency Response

The Chancellor's Office is finalizing a policy that will establish a cap on the amount the CSU will reimburse for moving and relocation expenses. Exceptions to the cap shall be approved by the chancellor for executives and Chancellor's Office employee reimbursements. In addition, the chancellor submits an Annual Report on Vice President Compensation, Executive Relocation, and Executive Transition to the Board of Trustees. This report includes a breakdown by executive of the type and amount of moving and relocation expense.

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

60-Day Agency Response

The Chancellor's Office is establishing a reasonable cap on the amount the CSU will reimburse for moving and relocation expenses, with the possibility of exception as noted in the recommendation. The policy will include an accountability mechanism to document compliance.

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

Recommendation #8 To: University, California State

To better ensure the reasonability of the reimbursements CSU pays for relocation and moving expenses, the Chancellor's Office should, by October 2017, revise its policy to require campuses to place an appropriate cap on the amount they will reimburse campus staff for relocation and moving expenses, based on either a dollar amount or a percentage of base salary. If the campus president authorizes a reimbursement amount greater than this cap, the president should submit a written explanation to the chancellor to justify the payment.

1-Year Agency Response

On December 19, 2017, the Chancellor's Office issued Human Resources Letter 2017-15 to implement updated systemwide policy guidelines for moving and relocation of individuals who change their place of residence due to the acceptance of a position with the CSU under specified circumstances. Campuses are required to review and update their campus procedures to adhere to the guidelines set forth in the policy. The policy establishes a monetary threshold (cap) of $75,000 for reimbursement of moving and relocation expenses. Campus presidents are the approvers for exceptions to the $75,000 cap for campus employee reimbursements and shall submit a written explanation to the chancellor to justify the exception.

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

6-Month Agency Response

The Chancellor's Office is finalizing a policy that will establish a cap on the amount the CSU will reimburse for moving and relocation expenses. Under the new policy, for campus employee reimbursements, the campus president shall approve any necessary exceptions to the cap and submit a written explanation to the chancellor to justify the payment.

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

60-Day Agency Response

The Chancellor's Office is establishing a reasonable cap on the amount the CSU will reimburse for moving and relocation expenses, with the possibility of exception as noted in the recommendation. The policy will include an accountability mechanism to document compliance.

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

Recommendation #9 To: University, California State

To better ensure the reasonability of the reimbursements CSU pays for relocation and moving expenses, the Chancellor's Office should, by October 2017, follow up with the campuses to ensure that they have sufficiently complied with its policy regarding the adoption of thresholds and caps for reimbursing staff for relocation and moving expenses and that those thresholds and caps are reasonable. If necessary, the Chancellor's Office should provide more exact guidance to the campuses on how to establish these thresholds and caps.

1-Year Agency Response

All 23 campuses and the Chancellor's Office have sufficiently complied with the policy regarding the adoption of thresholds and caps for reimbursing staff for moving and relocation expenses and that those thresholds and caps are reasonable. A monetary cap of $75,000 was established in Human Resources Letter 2017-15, issued by the Chancellor's Office in December 2017. In addition, we verified that each campus and the Chancellor's Office has a documented policy regarding who may approve moving and relocation expense reimbursements at various dollar thresholds.

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

6-Month Agency Response

The Chancellor's Office followed up with the campuses to ensure that they have sufficiently complied with the policy regarding the adoption of thresholds and caps for reimbursing staff for moving and relocation expenses and that those thresholds and caps are reasonable. We are working with three remaining campuses to ensure they have adopted reasonable thresholds for moving and relocation expenses. If necessary, the Chancellor's Office will provide more exact guidance to the campuses on how to establish these thresholds; all campuses will be subject to the new cap for moving and relocation expenses.

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

60-Day Agency Response

The Chancellor's Office is establishing a reasonable cap on the amount the CSU will reimburse for moving and relocation expenses, with the possibility of exception as noted in the recommendation. The policy will include an accountability mechanism to document compliance.

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

Recommendation #10 To: University, California State

The Chancellor's Office should finish developing the Common Human Resources System and implement it as scheduled by December 2019.

Annual Follow-Up Agency Response From August 2023

The Common Human Resources System (CHRS) has successfully implemented a common and standard system for Talent Acquisition and Onboarding. The last phase of the project, with all other core administrative tasks, will have the first four campuses live by the end of 2023, and then we will have groups (or waves) go live in subsequent years. All twenty-three campuses and the Chancellor's Office will be live by spring 2028. The slight delay in the implementation timeframe is due to the impacts of the pandemic.

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

Annual Follow-Up Agency Response From October 2022

Implementation of the Common Human Resources System (CHRS) has achieved another major milestone: all CSU campuses are live with a module of CHRS related to recruiting. We are continuing with the plan to implement CHRS in stages or "waves" of a few campuses at a time until full implementation is achieved. Due to the challenges of the pandemic and other competing priorities, in addition to the loss of staff, the estimated date of full implementation has been delayed to December 2027.

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

Annual Follow-Up Agency Response From October 2021

Implementation of the Common Human Resources System (CHRS) has achieved a major milestone: the software development for the first release of CHRS is now 100% complete. We are continuing with the plan to implement CHRS in stages or "waves" of a few campuses at a time until full implementation is achieved. Full implementation is still estimated to occur in December 2024.

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

Annual Follow-Up Agency Response From October 2020

The Common Human Resources System project continues to move forward. Although there have been minor delays due to the COVID-19 outbreak, the first wave of full implementation is still scheduled to begin in 2020 with two campuses.

However, the estimated date for full implementation at all campuses is now December 2024. It was originally anticipated that several campuses could start implementation at the same time. However, as the project has progressed, it has become evident that we will not be able to implement more than two or three campus at a time and the full implementation at all campuses will therefore take more time than originally anticipated.

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

Annual Follow-Up Agency Response From October 2019

The CHRS project continues to move forward, and it is on time and within budget. CSU is currently implementing the recruiting solution which is a predecessor for full CHRS implementation. This recruiting and applicant-tracking program has been implemented at seven campuses and the remaining sixteen campuses are scheduled for implementation. The first wave of full CHRS implementation will begin in 2020 with two campuses. The estimated date for full implementation at all campuses is December 2022.

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

Annual Follow-Up Agency Response From October 2018

We remain on track to finish design and development of the Common Human Resources System by December 2019 and to complete full systemwide implementation by December 2022.

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

1-Year Agency Response

We remain on track to finish design and development of the Common Human Resources System by December 2019 and to complete full systemwide implementation by December 2022.

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

6-Month Agency Response

The Chancellor's Office is continuing its efforts to finish development and implementation of the Common Human Resources System (CHRS). We have revised the date for full implementation to more clearly delineate that we anticipate the design and development of CHRS will be completed by December 2019. We expect the implementation to begin immediately thereafter; however, due to the size of our 23-campus system plus the Chancellor's Office, the complexity of the changes, and the interaction with the state payroll system, we do not expect to achieve full systemwide implementation until December 2022.

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

60-Day Agency Response

The Chancellor's Office is continuing its efforts to finish development and implementation of the Common Human Resources System.

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

Recommendation #11 To: University, California State

Once it receives the results of its consultant's study on executive compensation, the Chancellor's Office should collaborate as soon as possible with interested parties, such as the LAO, to develop methodologies for future compensation comparisons that consider total compensation.

Annual Follow-Up Agency Response From October 2019

The Chancellor's Office hired a third-party consultant, Sibson, to conduct a total remuneration study for CSU presidents. As part of this study, Sibson reviewed the current comparators and presented their findings at the September 2019 Board of Trustees (board) meeting, confirming that the existing comparators remained viable. Given that this determination was made based upon IPEDS (institutional postsecondary education data) data published by the federal government, Sibson's survey of other institutions of higher education and utilization of data collected by the Chronicle for Higher Education, we determined that this met the auditor's recommendation to collaborate with outside parties. In addition, because the methodology employed by Sibson considers total remuneration and an industry standard formula for comparing salaries to market, we plan to utilize that methodology for future comparisons.

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

Annual Follow-Up Agency Response From October 2018

The Chancellor's Office recently experienced a leadership transition with the departure of the Vice Chancellor of Human Resources and appointment of her replacement on October 1, 2018. The new vice chancellor will be reviewing the process for compensation comparisons and plans to have internal dialog with Chancellor's Office representatives, the Board of Trustees, and consultants in order to solidify the California State University's compensation philosophy. Once that work is complete, the Chancellor's Office will meet with outside interested parties such as the Legislative Analyst's Office and the Department of Finance to consider methodologies for future compensation comparators.

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

1-Year Agency Response

The Chancellor's Office will schedule meetings with the Legislative Analyst's Office, the Department of Finance, and other interested parties to consider methodologies for future compensation comparators. The consultations will take place by September 2018.

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

6-Month Agency Response

The estimated completion date has been revised and is still tentative because we are reviewing the scope of work for the study. The nature and extent of any changes to the scope of work may require another revision to the estimated completion date.

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

60-Day Agency Response

The Chancellor's Office is continuing to gather the data required for consideration of institutions for compensation comparisons. As noted in our initial response, once the data is available, we will collaborate with relevant parties to consider institutions for total compensation comparisons.

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

Recommendation #12 To: University, California State

Within six months, the Chancellor's Office should revise its policy to clarify when campuses need to obtain indemnifications from management personnel who will be on paid administrative leave and should begin monitoring campuses to ensure that they are adhering to its policy.

1-Year Agency Response

On December 19, 2017, the Chancellor's Office issued Human Resources Letter 2017-14 to clarify when campuses must obtain indemnifications. Specifically, the policy for obtaining an indemnification applies only if the reassignment is voluntary, for example in situations where the management personnel employee is preparing for a faculty position or taking a professional development leave. We believe existing controls, coupled with the clarification provided in the updated policy, are sufficient and that establishing additional monitoring controls would not be an efficient use of resources. However, to the extent that monitoring compliance with this requirement falls reasonably within the scope of either a remote or onsite campus review being conducted by a Chancellor's Office division or department, we will include the monitoring in the scope of work.

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

6-Month Agency Response

The Chancellor's Office has drafted a revised policy to clarify that the policy will apply only if the paid administrative leave is voluntary. In the event of a voluntary administrative leave, campuses must obtain an indemnification from management personnel. We anticipate issuing the policy by December 2017.

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

60-Day Agency Response

The Chancellor's Office is revising the existing policy to clarify when campuses need to obtain indemnifications. We are also in the process of developing a methodology to ensure appropriate monitoring by the Chancellor's Office is in place.

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

Recommendation #13 To: University, California State

Within six months, the Chancellor's Office should begin monitoring campuses to ensure that they are complying with the faculty bargaining unit requirements for disclosing outside employment.

6-Month Agency Response

Under the Collective Bargaining Agreement (CBA), full-time faculty are required to report outside employment only under certain conditions. Because campuses are typically unaware of a faculty member's outside employment unless it is formally communicated to the campus, neither the campuses nor the Chancellor's Office has a reasonable way to audit whether faculty are complying with the CBA requirements for disclosing outside employment. However, the Chancellor's Office will send an annual email to the campuses instructing them to ensure that they are notifying full-time faculty, at least once each academic year, of the CBA requirements for disclosing outside employment. The first annual notification was sent on October 9, 2017.

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

60-Day Agency Response

The Chancellor's Office is working on a training program designed to ensure that campus faculty follow outside employment reporting requirements. We are also in the process of developing a methodology to ensure appropriate monitoring by the Chancellor's Office is in place.

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

All Recommendations in 2016-122

Agency responses received are posted verbatim.