Report 2016-130 Recommendation 26 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 #26 To: University of California

To ensure that its staffing costs align with the needs of campuses and other stakeholders, by April 2019 the Office of the President should create a plan for reallocating funds that it saves to campuses as it reduces its staffing costs.

Annual Follow-Up Agency Response From April 2019

UCOP finalized a reallocation plan for net savings which includes a decision tree and budget manual guidance that define how net operating budget savings will be reviewed for reallocation and reallocated if appropriate. The plan has been reviewed by internal stakeholders, the Executive Budget Committee campus and Academic Senate members, and Sjoberg|Evashenk.

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

We have rated this recommendation as fully implemented based on the Office of the President's completion of a reallocation plan that considers reallocating funds to campuses. This reallocation plan outlines the Office of the President's planned steps depending on which revenue source the savings are generated from. For example, if the Office of the President identifies savings and the funding source is the campus assessment, according to the reallocation plan, it will reduce next fiscal year's campus assessment or credit the funds back to the campuses.

1-Year Agency Response

The Office of the President has initiated efforts to implement this recommendation and will provide a status update on its progress at the next reporting milestone.

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

The status of this recommendation is pending the Office of the President's implementation of our staffing recommendations due by April 2019.

6-Month Agency Response

Implementation of this recommendation will be dependent on actions taken in response to the April 2018 recommendations.

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

The status of this recommendation is pending the Office of the President's implementation of our staffing recommendations due by April 2019.

60-Day Agency Response

Implementation of this recommendation is dependent on actions taken in response to the April 2018 recommendations.

A work group has been formed for the two projects related to staff salary ranges (OP and system). The work group members are compensation experts from OP and four campuses/medical centers. Meetings occur weekly. An additional work group has been formed to address the project related to the review of leadership salary ranges (Market Reference Zones), systemwide. The work group members are compensation and Human Resource experts from OP and campuses/medical centers. Meetings occur twice monthly.

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

The status of this recommendation is pending the Office of the President's implementation of our staffing recommendations due by April 2019.

All Recommendations in 2016-130

Agency responses received are posted verbatim.