An examination of the University of California’s finances began Wednesday as part of a state audit, according to a statement from the UC Office of the President.
The audit, which was requested by Sen. Leland Yee, will determine how the university has spent its state appropriations, student fees and funds from the federal government.
Approved unanimously by the Joint Legislative Audit Committee, the audit was requested in response to several improprieties and poor decision-making by UC executives, said Adam Keigwin, a spokesman for Yee, in a statement.
The main issues that triggered the audit request include student fee increases, exorbitant executive compensation hikes and poor pension plan management, Keigwin said.
The UC will cooperate fully with the audit and plans to make all financial data available and accessible, said Nathan Brostrom, executive vice president for business operations at the UCOP, in a statement.
He added that the UC already cooperates with various federal, state and local agencies and regularly opens its books for review.
To comply with the request, UC officials have shared the past five years of reports, audits and financial statements with the state auditors, according to the statement from UCOP.
“We truly welcome the opportunity to illuminate our work,” said Steve Montiel, a UCOP spokesman.
“Transparency is our friend, and the more the people know about the UC and our finances, the more likely the Californians will help us make the case for reversing the state’s disinvestment in higher education.”
Although the information that will be provided to state auditors is already available on the UC Web site, the audit will make the university’s finances even more accessible, Montiel said.
The process is expected to continue for the next eight months, Montiel said.