University of California hid $175,000

while raising tuitions

An audit of the University of California, mid April 2017, revealed that the university President and former Obama Secretary of Homeland Security Janet Napolitano raised tuitions 2.7% while her office hid $175 million.

The audit found that the UC spent $32.5 billion on expenses during the 2015-16 school year to fund 10 campuses, five medical centers, and its Office of the President headquarters. Although the UC states that its “fundamental missions are teaching, research and public service,” the UC only spent “$6.7 billion (21 percent) on teaching, “$4.6 billion (14 percent) on research” and “$630 million (2 percent) on public service.” The other $20.6 billion (63 percent) was spent on non-fundamental activities.

In addition, State Auditor Howle’s audit found the “Office of the President has amassed substantial reserve funds, used misleading budgeting practices, provided its employees with generous salaries and atypical benefits, and failed to satisfactorily justify its spending on system wide initiatives.”

Howle ominously added that the “Office of the President intentionally interfered with our audit process. Auditing standards require that we disclose this interference and prohibit us from drawing valid conclusions from this portion of our work.” Napolitano apologized for actions in her office during an audit in which she hid $175 million from state while demanding more money.

Abuse of taxpayer money: Napolitano’s office spent more than $4,000 on one employee’s retirement party and thousands more on other going-away, staff-appreciation and holiday parties, perks that are not typically seen in the public sector and that raise questions about lavish spending practices as the university increases tuition and fees on students. money that lawmakers said should have been disclosed to the public and the Board of Regents, which oversees the 10-campus university system. Napolitano's office blocked the auditor from more findings however; The itemized records that were produced show that Napolitano’s office spent generously on employee retirement parties — including more than $4,200 on a retirement party in 2015 for Laine Farley, who was then the director of the UC’s California Digital Library. The Chronicle identified 20 parties for departing employees that cost more than $500 between 2014 and 2016. Ten of those were more than $1,000.

Among the documents the auditor says UC never fully produced were those detailing foreign and out-of-state travel, catering, airfare and entertainment expenses. UC said auditors failed to ask for the right budget codes in making their request. The records that were turned over to auditors show that the president’s office paid for employees to attend meetings and conferences in Bermuda, Iceland, Germany, China, India, Australia, France, Italy, Mexico and many other destinations.

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