California State Auditor Elaine Howle has released a scathing audit of the University of California’s Office of the President. If you or your employer did the stuff exposed by the audit, the FBI would nail you for it. It’s frightening and it’s a crime.
The examination had been requested by legislators who have complained for years that the UC system is not transparent with its finances.
Some of the key findings of the audit include tens of millions of dollars in budget reserve funds weren’t disclosed. 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.
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.
Pensions were spiked, salaries padded. The money flowed like water to a select few elites.
State officials including Lt. Gov. Gavin Newsom have rightly called on UC to reverse its tuition hike. That would be a good first step before criminal charges are brought.
The list of financial wrongdoing and self-dealing by UC administrators is long.
Read the whole story in the LA Times