Report 2012-113 Recommendation 30 Responses

Report 2012-113: California State University's Extended Education: It Is Unclear Whether Supplanting Occurred, and Campuses Did Not Always Document Their Adherence to Laws, Policies, and Procedures (Release Date: December 2013)

Recommendation #30 To: Long Beach, California State University

To strengthen its oversight of payments made from the CERF trust account, CSU Long Beach should immediately take the following action: review and document the appropriateness of the campus partners' allocation percentages using current data and, if needed, adjust the percentages.

1-Year Agency Response

Pre-audit, the campus partners shared a percentage of revenue to offset the indirect cost they incurred to support a program.

Based on the audit Recommendation #9, we now have a revised cost allocation plan. The campus partner indirect costs incurred to support a program are now contained within an indirect cost pool (called Campus Partner Overhead) and assigned to a program using the auditor's recommended direct cost allocation method.

Supporting Documentation: Attachment B

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

Corrective action still in progress.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

The CCPE is currently reviewing campus partner allocation percentages to ensure that the rates are appropriate. A draft analysis will be completed in the coming months. Numerous meetings will need to be conducted with partners to conclude the final analysis and agreement on potential adjustments.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2012-113

Agency responses received are posted verbatim.