Report 2016-130 Recommendation 36 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 #36 To: University of California

To ensure that its staffing costs align with the needs of campuses and other stakeholders, by April 2020 the Office of the President should reallocate funds to campuses when adjustments to its salaries and benefits result in savings.

Annual Follow-Up Agency Response From April 2019

The methodology for narrowing the salary ranges went through extensive stakeholder review as described in the update on the salary range recommendation. In the case of the workstream focused on narrowing the salary ranges, no savings were identified from this work.

In the case of employee benefits, all savings have been realized in the FY18-19 budget. Because UCOP is on a direct appropriation of State general funds which is reimbursement based, UCOP cannot accumulate unspent funds and therefore has no surplus funds to reallocate.

Reallocation of funds follows the Fund Reallocation Guidelines and decision tree that are located in UCOP's Operating Budget Manual located here, https://ucop.edu/ucop-budget/ucop-operating-budget-manual.pdf. Should there be savings in the future when UCOP has returned to campus assessment funding, the Fund Reallocation Guidelines provide a clear methodology for evaluating surplus funds, for reallocation.

  • Completion Date: April 2019

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

We are rating this recommendation as pending due to the concerns we expressed in recommendation 23 regarding the 8 percent salary range increase that the Office of the President applied which negated the impact of our recommendation. We will reevaluate any steps the Office of the President takes to resolve our concerns when assessing its April 2020 response to this recommendation.


1-Year Agency Response

The Office of the President has initiated efforts to track savings from employee reimbursement policy changes.

An update on the implementation of this recommendation will be dependent on actions taken in response to the April 2019 recommendations.

  • Estimated Completion Date: April 2020
  • Response Date: April 2018

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 related recommendations due April 2019.


6-Month Agency Response

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

  • Estimated Completion Date: April 2020
  • Response Date: October 2017

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 related recommendations due April 2018 and April 2019.


60-Day Agency Response

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

Any potential savings from this process will either be reallocated to campuses or used for programs and areas that further support and benefit the campuses.

  • Estimated Completion Date: April 2020
  • Response Date: June 2017

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 related recommendations due April 2018 and April 2019. The impact of this recommendation will vary based on the Office of the President's funding situation in April 2020; however, we are still concerned that the Office of the President indicates in its response that it does not plan to directly reallocate these funds to campuses. We look forward to the Office of the President's 6-month response to determine the level of campus input on these spending decisions.


All Recommendations in 2016-130

Agency responses received are posted verbatim.