UC Audit

The legislature's Joint Legislative Audit Committee has just approved a request submitted by State Sen. Leland Yee to conduct an audit of the University of California finances.

Sen. Yee's request  addressed three major clusters of issues:

1. Public Funds: What are the major public sources of funding for UC? This includes money awarded by the Federal govenrment for the administration of grants.  How much of the public funding is restricted in use by the funder?  How does UC define "restricted" funds internally?  How does UC expend the indirect cost money that it receives for the administration of grants from the federal government? How is public money tracked and allocated?  How are escalator increases in grants spent if employee salaries are frozen?
2. Expenditures of State Funds and Student Fees: How does the UC spend student fees and funds from the state?  What is UC's method for tracking and adjusting non-salary expenditures and expenditure categories (such as travel, consultants, entertainment, general supplies, etc)? What is UC's method for tracking per-student expenditures for instruction?  As an annual average, how much does UC spend per undergraduate student on instruction-excluding graduate instruction and research costs?  
3. Auxiliaries: What is UC's definition of an auxiliary?  How many auxiliaries exist in the UC system?  How are auxiliary revenues being used and coded by UC?  What firewalls exist to ensure no state funds are used to backfill, supplement or guarantee projects or programs authorized by auxiliary organizations?