Report 2016-122 Recommendation 6 Responses

Report 2016-122: California State University: Stronger Oversight Is Needed for Hiring and Compensating Management Personnel and for Monitoring Campus Budgets (Release Date: April 2017)

Recommendation #6 To: University, California State

To minimize concerns regarding possible conflicts of interest, the Chancellor's Office should work with the board to develop, approve, and implement an executive compensation policy that expressly prohibits the use of foundation funds to pay campus presidents.

6-Month Agency Response

At the September 2017 meeting of the Board of Trustees (board), the board approved a revision to the existing policy on presidential compensation. The revision formalized the existing practice of prohibiting the use of auxiliary organization funds to pay campus presidents and specified that, as of January 1, 2018, presidential salary can only be funded with state funds.

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

60-Day Agency Response

The Chancellor's Office is in the process of revising the existing executive compensation policy to reflect the current practice prohibiting the use of foundation funds to pay campus presidents.

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

All Recommendations in 2016-122

Agency responses received are posted verbatim.