Sunday, August 7, 2011

Yee Responds To UC Audit Findings

here is Yee's response on the UC Audit:
State Audit Reveals Lack of Transparency, Misappropriation, and Disparity in Campus Funding in the UC System
Thursday, July 28, 2011
SAN FRANCISCO – Today, the California State Auditor released its audit of the University of California identifying instances of misappropriation of funds, disparities in funding for campuses with a higher-than-average proportion of students from underrepresented racial or ethnic groups, and opaque accounting for $1 billion in annual expenses.

“The audit released today by the California State Auditor of the University of California (UC) identifies numerous issues related to the accounting and expenditure transparency of the UC and calls into question some funding priorities,” said Yee. “I am deeply concerned by some of these findings and it is my hope that the UC will immediately address the many issues raised in the audit and provide sufficient rationales to both the Legislature and the public at large.”

The State Auditor specifically cited that the Office of the President of UC “… uses only a single accounting code, Miscellaneous Services, to account for an average of about $1 billion in annual campus expenses."

The Miscellaneous Services funding category in the UC Budget accounts for nearly $6 Billion over the past five fiscal years. According to the UC Internal Accounting Manual, these expenses are generally for consulting or advertising services for individual contracted through campuses.

“While the UC Office of the President knows how to pay lip-service to the goals of accountability and transparency, the state audit demonstrates how UC is falling down on the job in practice. The fact that the UC Office of the President uses a single accounting code titled 'Miscellaneous Services' to track $1 Billion in annual spending speaks volumes about how far UC needs to go to truly be accountable to Californians,” said Lakesha Harrison, President, AFSCME Local 3299.

Of significant concern is also the disparity identified by the audit is the less than average funding provided to campuses with a higher than average percentage of students from underrepresented racial or ethnic groups.

Specifically, four campuses with a higher than average percentage of students from underrepresented racial or ethnic groups all received less funding than they would have received if each campus received the same amount per student.

“For years, the University of California has resisted greater oversight and efforts to improve transparency,” said Yee, who is a UC graduate. “It is clear that there remain many significant problems with the way UC operates and this audit clearly illustrates both new and ongoing problems.”

The Audit also identified the misappropriation of $23 million in student funding to pay for two capital projects on the Los Angeles campus. As of April 2011 one of the projects has been cancelled but $5.2 million of this funding for one of the projects has already been expended.

“This audit is only a first step towards more transparency at the University of California. California’s middle class and working class families are counting on the University and the legislature to never allow UC’s finances to go back into a black box of secrecy again,” said Bob Samuels, President, UC-AFT. “The University of California is our University and must be held accountable to all of us.”

Yee, as Chair of Select Committee on California's Public Records & Open Meeting Laws, has long fought for greater accountability and transparency at the UC. In 2007, Yee passed SB 190 to end the Regents’ practice of making executive compensation decisions behind closed doors without public comment or disclosure.

Also in 2007, Yee passed legislation to require greater public oversight of the UC Retirement Plan. However, the Regents have ignored the resolution and refuse to give workers and retirees a voice on their pensions.

In 2006, Yee passed a bill to provide greater speech and journalism protections for UC students, and in 2008, he passed another bill to extend such protections to employees. However, the Regents did not officially adopt the speech protection policies until last year.

In 2009, the Legislature overwhelmingly approved three bills authored by Yee to freeze executive pay during bad budget years, subject campus auxiliary organizations to the California Public Records Act, and provide legal protections to employees who report waste, fraud, and abuse. Governor Arnold


Contact: Adam Keigwin,


our comment: "consulting and advertising" -- that might include the PR, media relations, dev. external relations etc. people, that might include the Bain Operational Exodus people, it also might include many who said they were "retiring" but who are still receiving a pay check as 'consultant'...reminiscent of this sort of thing going around.

Governor Brown talks about ...everything.-- including many comments on the university, higher ed.

1 comment:

  1. University of California Berkeley (Cal) picks the pockets of foreign, out-of-state, Californian students and their parents clean. UC Berkeley shouldn’t come to the Governor or public for support. (The author has 35 years’ consulting experience, has taught at Cal where he observed the culture, way senior management work)

    University of California Berkeley Chancellor Birgeneau ($500,000 salary) has forgotten that he is a public servant, steward of the public money, not overseer of his own fiefdom. These are not isolated examples: Cal tuition, fee increases exceed national average rate of increase; recruits (using California tax $) out of state $50,600 students who displace qualified Californians from Cal; spends $7,000,000 + for consultants to do his senior management work (prominent East Coast university accomplishing same 0 cost); pays ex Michigan governor $300,000 for lectures; in procuring $3,000,000 consulting firm he failed to receive proposals from others; Latino enrollment drops while out of state jumps 2010 (M Krupnick Contra Costa Times); ranked # 70 USA best universities Forbes; tuition to Return on Investment drops below top 10; QS academic ranking falls below top 10; only 50 attend Birgeneau all employees meeting; visits down 20%; absence Cal. senior management control NCAA places basketball program on probation.
    It’s all shameful. There is no justification for violations by a steward of the public trust. Absolutely none.
    Birgeneau’s irregularities continue. Governor Brown, UC Board of Regents Chair Lansing must vigorously enforce stringent oversight over Chancellor Birgeneau who uses the Cal. as his fiefdom.