UC Audit Finds Irregularities, Lack Of Transparency

SAN FRANCISCO (KCBS) – A 15-month review of the books at the University of California uncovered irregularities in how some expenses are listed

The audit called for by State Senator Leland Yee, a San Francisco mayoral candidate, found no evidence of major fiscal malfeasance in the 10-campus system, but raised concerns about a lack of transparency in some areas of its budgeting.

One example is an item in the Office of the President’s budget entitled miscellaneous services that lists about $1 billion annually in expenses without detailing what the money is being spent on.

“The first order of business now is that UC needs to change its accounting procedure so there is a lot more clarity and specificity as to what the expenses are for,” Yee said.

KCBS’ Chris Filippi Reports:

The audit also called on UC to explain why some campuses get more money per student than others.

The University of California has been criticized in recent years for offering high salaries to its administrators while student fees and tuition have steadily climbed.

State auditors warned the UC system could lose public trust if it doesn’t provide more details on where it spends its money, but the audit found no evidence of waste, fraud or abuse.

“We were shown to be exemplary in almost all of our practices,” said Diane Klein, a spokeswoman for the Office of the President.

“We look at this as an affirmation of our practices.”

Klein said the university has already implemented some of the recommended accounting reforms.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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