Audit: University Of California Had Up To $175M In Secret Reserve
SACRAMENTO (KCBS) – California's auditor says top University of California administrators had a secret budget account that hid upwards of $175 million from public view.
In a scathing report released Tuesday, State Auditor Elaine Howle said the office of UC President Janet Napolitano created an undisclosed budget over four years to spend the hidden money with little or no oversight.
During that time, the UC system raised tuition and asked the legislature for more money.
Napolitano denies the audit's claim. She argues the true amount of money in reserves is $38 million, or about 10 percent of the system's operating and administrative budget.
The UC president said that is a modest amount to stash away for unexpected expenses.
