Here’s what you need to know about the state’s audit of the University of California
April 25, 2017
State Audit of the University of California President
California State Auditor Elaine Howle on Tuesday released a scathing audit of the University of California’s Office of the President.
The examination had been requested by legislators who have complained for years that the semi-independent UC system is not transparent with its finances.
Here are some of the key findings of the audit:
Tens of millions of dollars in budget reserve funds weren’t disclosed
The state audit found that the UC Office of the President failed to disclose to the University of California Board of Regents, the Legislature and the public that it had $175 million in budget reserve funds. UC President Janet Napolitano disputes that the money was hidden, and said it was committed to programs to improve the UC system.
$32 million that could’ve been spent on students wasn’t
The reserve included $32 million in unspent funds from an annual charge levied on the UC schools — money that the campuses could have spent on student services if they kept it, Howle said. The money comes from a fund that is used for programs including cybersecurity, food for poor students and making campuses carbon neutral. Howle and state legislators said the money should be sent back to campuses.
Pay in UC’s Office of the President is higher than comparable salaries
The UC Office of the President’s executive and administrative salaries are significantly higher than comparable state employee salaries. This is a longstanding complaint by legislators, union leaders and students.
Administrative salaries amounted to a combined $2.5 million more than the maximum annual salaries for comparable state employee positions, auditors found.
Millions were spent on benefits that public employees typically don’t receive
During a five-year period, the Office of the President spent at least $21.6 million on employee benefits, some of which are not typical for the public sector, such as supplemental retirement contributions, the audit found.
The UC system, like other state agencies, provides a standard retirement plan, but Napolitano’s office also offered its executives a retirement savings account, contributing up to 5% of the executives’ salaries. Those contributions have totaled about $2.5 million over the last five years, the audit found.
UC administrators weren’t able to justify how money was spent
The Office of the President failed to satisfactorily justify its spending on systemwide initiatives, the audit found, and did not evaluate the programs’ continued priority or cost. Auditors said the Office of the President was unable to provide a complete listing of the systemwide initiatives, their costs or how they benefit the university system.
Administrative spending is high compared to other university systems
Spending in the Office of the President has increased and annual budget and staffing levels for the Office of the President are higher than administrations at other comparable public universities, the report found.
Read the article HERE.
Janet Ann Napolitano served as Arizona Attorney General, 21st Governor of Arizona, and US Secretary of Homeland Security until 2013 under President Barack Obama. She became president of the University of California system in 2013, shortly after she resigned as Secretary of Homeland Security under a cloud of controversy. As a curious fact, the audit cover letter specifically noted they audited for four years. The exact same number of years as Napolitano’s tenure.
Sounds like a LOT of Core Math as been applied at the University in the last four years. But then she came off as totally incompetent at times as Sec of DHS soooo……
To be fair though, apparently Napolitano has been battling cancer and is right now in the last phase of treatments. It Might be possible that she was not overseeing during the years and that is all I am going to say on that.
The rise in all problems found at universities across the US has been on the increase for ohhhh say eight years or about the time the Obama appointed Dept of Education guy started ramping up socialist agendas. However, having universities in financial fiascos is nothing new. There have been a few who stepped down over some issue or other in the past.
It does not surprise me that a liberal who was caught up in controversy under Obama’s administration would now also be under scrutiny by an auditor for activities in their new high profile position. Nor does it surprise me that a liberal university has gotten so out of hand that students run the show and decide what people can or can not do or are allowed to speak about. Even Frankenstein learned the hard way that creations can come back to bite their creators.
Perhaps an audit of all Jerry Brown’s work would also be in order since allegations have been circulating for a few years on discrepancies.