Summary

rotiduA etatS ainrofilaC S T I D U A E T A T S F O U A E R U B University of California: Stricter Oversight and Greater Transparency Are Needed to Improve Its Compensation Practices May 2006 2006-103 The first five copies of each California State Auditor report are free. Additional copies are $3 each, payable by check or money order. You can obtain reports by contacting the Bureau of State Audits at the following address: California State Auditor Bureau of State Audits 555 Capitol Mall, Suite 300 Sacramento, California 95814 (916) 445-0255 or TTY (916) 445-0033 OR This report is also available on the World Wide Web http://www.bsa.ca.gov The California State Auditor is pleased to announce the availability of an on-line subscription service. For information on how to subscribe, please contact the Information Technology Unit at (916) 445-0255, ext. 456, or visit our Web site at www.bsa.ca.gov Alternate format reports available upon request. Permission is granted to reproduce reports. C S A ALIFORNIA TATE UDITOR ELAINEM.HOWLE STEVENM.HENDRICKSON STATEAUDITOR CHIEFDEPUTYSTATEAUDITOR May 2, 2006 2006-103 The Governor of California President pro Tempore of the Senate Speaker of the Assembly State Capitol Sacramento, California 95814 Dear Governor and Legislative Leaders: As requested by the Joint Legislative Audit Committee, the Bureau of State Audits presents its audit report concerning the compensation practices of the University of California (university). This report concludes that the Corporate Personnel System (CPS) used by the university’s Office of the President (president’s office) to track the pay activity of university campuses contains inconsistencies and overly vague categories that did not allow us to determine the reliability of various compensation and funding source classifications contained within it and that limit its usefulness as an oversight tool. Despite the data reliability problems we found, the CPS is the most detailed and complete centrally maintained source of information, and in fiscal year 2004–05 it reflects that university employees earned approximately $9.3 billion, comprised of $8.9 billion in regular pay and $334 million in additional compensation. CPS also indicates that the 4,071 university employees earning more than $168,000 from all funding sources received 10 percent of total regular pay, but 26 percent of the additional compensation. Further, the regular granting of exceptions to university compensation policy by the president’s office may weaken the credibility of the compensation policies it issues and create a culture of noncompliance. Indeed, in our review of 100 highly compensated employees we found that some university campuses circumvented or violated university policy, resulting in a significant overpayment to one employee, questionable forms of compensation provided to others, and improper increases to some employees’ retirement-covered compensation. In addition, we found that the university did not consistently disclose its officers’ nonsalary compensation, such as housing allowances, to the Board of Regents as required by policy. Respectfully submitted, ELAINE M. HOWLE State Auditor BUREAU OF STATE AUDITS 555 Capitol Mall, Suite 300, Sacramento, California 95814 Telephone: (916) 445-0255 Fax: (916) 327-0019 www.bsa.ca.gov ConTenTS Summary 1 Introduction 7 Audit Results Lack of Consistency Within the Corporate Personnel System Limits Its Usefulness 17 Summary of Employee Compensation at the University 20 Summary of the Compensation of University Employees Receiving the Most Funds From State and Student Sources 22 The President’s Office Regularly Granted Exceptions to Compensation Policy 25 The Circumvention of Policy Caused a Significant Overpayment and Inappropriate Increases in Retirement-Covered Compensation 27 The University Consistently Violated Policies the Regents Established to Ensure Adequate Review of Executive Compensation 35 Our Survey of Compensation Practices at Comparable Universities Showed That They Generally Did Not Disclose More Information Than the University of California 40 Recommendations 41 Appendix A Compensation for the 100 Highest-Paid University Employees From Funding Sources Made Up Entirely or Partially of State and Student Sources 45 Appendix B Survey Results on the Compensation Programs and Disclosure Policies of Institutions Comparable to the University of California 93 Appendix C Reconciliation of the $871 Million in Additional Pay the San Francisco Chronicle Reported to the $334 Million Reported in This Audit 111 Appendix D Summary of the Numerous Funding Sources for University of California Employees’ Compensation 113 Appendix E University of California Compensation Descriptions Compared to the Descriptions We Use in This Report 117 Response to the Audit University of California 135 SUMMARY RESULTS IN BRIEF The University of California (university) is a public, state- supported land grant institution with a mission to teach and conduct research in a wide range of disciplines and Audit Highlights . . . to provide public services. The university is administered by a 28-member Board of Regents (regents), which has delegated Our review of the compensation overall policy development, planning, and resource allocations practices of the University of to the Office of the President (president’s office). Beginning in California (university) revealed November 2005, numerous articles published in various media the following: criticized the university for providing undisclosed additional  The Corporate Personnel compensation in the form of bonuses, administrative stipends, System (CPS) used by and relocation packages to faculty and administrators while at the university’s Office of the President (president’s the same time increasing student fees. The university responded office) to track the pay to the controversy created by the issues and allegations raised by activity of university the media by providing additional information and explanations campuses contains to the public, by implementing fact-finding efforts, and by inconsistencies and overly vague categories that did establishing new compensation-related policies. not allow us to determine the reliability of various We were asked to identify systemwide compensation totals for compensation and funding source classifications the university by type and funding source to the extent that contained within it and data are centrally maintained and consistent among campuses. that limit its usefulness as To accomplish this we used the university’s Corporate Personnel an oversight tool. System (CPS), which is a reporting system that provides  Despite these problems, the management and staff in the president’s office with demographic, CPS is the most detailed personnel, and pay activity data on employees paid at the and complete centrally university’s campuses and laboratories. Our review found that maintained source of information, and in fiscal inconsistencies in how campuses classify compensation and year 2004–05 it reflects funding sources limit the system’s usefulness as an oversight tool that university employees for the president’s office. Because of the data inconsistencies we earned approximately found, we were unable to determine the reliability of various $9.3 billion—comprised of $8.9 billion in regular compensation and funding source classifications contained pay and $334 million in within it. Although we found inconsistencies, we provide data additional compensation. from the CPS in the Audit Results of this report because it is the  The president’s office most detailed and complete centrally maintained source of this appears to regularly information. According to the CPS, university employees received grant exceptions to $9.3 billion in total compensation during fiscal year 2004–05. university compensation Regular compensation totaled over $8.9 billion, with the remaining policy. In a sample of 100 highly paid university $334 million going toward additional types of compensation. employees, 17 benefited CPS data indicate that in fiscal year 2004–05 the 4,07 university from an exception to compensation policy. continued on next page . . . 1 This includes two nonvoting members from the university faculty. California State Auditor Report 2006-103 1  Appendix A presents the employees earning $68,000 or more received 0 percent of the compensation, exceptions regular compensation total but about 26 percent of the additional to policy, and additional compensation total. employment inducements received by a sample of 100 highly compensated We were also asked to identify the compensation of highly paid university employees. individuals receiving the most funds from state appropriations and  Some university campuses student tuition. The compensation for 662 individuals receiving circumvented or violated at least $68,000 in fiscal year 2004–05 from these sources totaled university policy, resulting in $58 million. Appendix A presents the compensation received by a $130,000 overpayment the top 00 of these employees. While reviewing the compensation to an employee and of these 00 employees, we found that the president’s office improper increases to others’ retirement-covered regularly granted these individuals exceptions to university compensation. compensation policy. University policy authorizes the president’s  The university did not office to approve policy exceptions that provide employees with consistently disclose benefits for which they otherwise would not be eligible. Seventeen its officers’ nonsalary of the 00 individuals in our sample benefited from an exception compensation, such as to policy. housing allowances, to the Board of Regents as required by policy. For example, the president’s office granted a dean at the University of California at Riverside (Riverside) a housing allowance of $87,500 at a time when policy limited such allowances to no more than $53,300. In addition, the president’s office granted six executives in our sample who held academic appointments, including four chancellors and a campus provost, exceptions permitting them to participate in the university’s senior management severance pay plan. By doing so, the university agreed to contribute the equivalent of 5 percent of the employee’s salary into an interest bearing account that they receive when they leave the university. We also found that some campuses circumvented and in some cases violated university policies, resulting in an overpayment to a university employee and inappropriate increases to other employees’ retirement-covered compensation. In an instance involving an employee at the University of California at San Diego (San Diego), a president’s office official proposed a pay arrangement that circumvented policy and, because of San Diego’s faulty monitoring of the arrangement, resulted in an overpayment to the employee of $30,000 between November 200 and January 2006. In a second case, the University of California at Los Angeles advanced a law professor $75,000 in future summer compensation and classified this payment as a housing allowance in the campus’s payroll system. In a third instance, despite being on sabbatical for much of fiscal year 2004–05, a San Diego vice chancellor continued to receive a $68,00 administrative stipend for a position she had vacated and also an $8,900 auto 2 California State Auditor Report 2006-103 allowance. University policy states that senior managers’ sabbatical compensation shall be based solely on their administrative salary, which would not include a stipend or auto allowance. Our review also revealed that some campuses violated the university’s retirement plan policy by including inappropriate forms of compensation, such as housing and auto allowances, in individuals’ retirement-covered compensation, a percentage of which they may receive when they retire. For instance, Riverside included housing allowances, each totaling $53,300, in two officials’ retirement-covered compensation, and the University of California at Irvine included $4,800 in auto allowance payments and $42,373 in profit associated with basketball camps in a coach’s retirement-covered compensation. The president’s office indicated that it is looking into these and the other apparent violations of policy that we found. The regents’ policies require them to approve all forms of compensation for officers of the university. However, although the university consistently obtained regents’ approval for the salaries of officers, it did not consistently disclose to the regents officers’ nonsalary compensation, such as housing and auto allowances, as required by university policy. In a sample of 0 officers, the university violated its executive compensation policy by not disclosing to the regents eight auto allowances, four housing allowances (two related to one officer), two transfers of sabbatical credits, and an acceleration of health insurance contributions at the time the regents considered the individuals’ appointment. For example, although the university agreed to provide an incoming provost with a $25,000 housing allowance, it did not disclose this allowance to the regents when they were deciding on the provost’s salary. Consequently, the regents increased the new provost’s salary to $380,000 without knowing she was receiving a $25,000 housing allowance. Information about salary and nonsalary compensation to university officers was disclosed in the university’s annual report on compensation for fiscal year 2004–05. However, the usefulness of this report is limited because it contained inaccuracies and because the president’s office did not submit this report to the regents until eight months after the close of the fiscal year, March 2006, at which time it also submitted the report for fiscal year 2003–04. Finally, although university policy does not mandate disclosure of the compensation of employees who are not officers, five of the 0 employees in our sample who were not officers were provided significant housing and/or relocation allowances ranging from California State Auditor Report 2006-103 3 $00,000 to $270,000. Except for one relocation allowance, these allowances were not disclosed to the regents when they approved the five employees’ salaries. Consequently, we question whether the regents’ and university’s policies provide the transparency necessary to ensure effective oversight of compensation by the regents. Appendix B presents the results of our survey of compensation programs and disclosure policies of comparable universities. In this appendix we present the responses we received from the University of California and seven other universities in California and other states. Although the seven responding universities did not fully complete our survey, their responses show that they generally do not disclose more about the details of employee compensation to the public than the University of California. RECOMMENDATIONS To improve its ability to monitor campus compliance, the president’s office needs to issue clear directives prescribing consistent use of the CPS. These directives should include a requirement that campuses consistently classify compensation into standard categories that best describe the compensation provided to employees. Also, the president’s office should standardize the categories that can be included in retirement- covered compensation and restrict the use of classifications that are too vague to allow the president’s office to ensure that the compensation complies with university policy. To preserve the integrity of the compensation policies it issues, the president’s office needs to limit the number of exceptions to policy it allows. This objective could be accomplished by the regents requiring the university to track and annually report exceptions to compensation policy that the president, provost, vice chancellor of academic affairs, campus chancellors, and other university officials grant during a fiscal year and provide justification for each exception. To preserve the integrity of the compensation policies it issues, the president’s office needs to improve its oversight of campuses’ compliance with those policies. One mechanism it should use to improve oversight is to annually use CPS data to identify unauthorized exceptions to policy, such as housing and relocation allowances paid above allowable limits and auto allowances being granted to individuals who do not qualify.  California State Auditor Report 2006-103 The president’s office should determine if it is appropriate to require repayment of university funds for the instances we identified in which a university employee received compensation in violation of university policy, and if so, develop a repayment plan with each employee. To eliminate inappropriate compensation included in employees’ retirement earnings, the president’s office should remove the amounts we identified from the employees’ retirement earnings and establish a mechanism to detect, on at least an annual basis, compensation that campuses have incorrectly classified as retirement covered. To increase transparency as it relates to the compensation of highly paid university employees, the regents should require the president’s office to disclose all forms of compensation for university officers and for all employees whose compensation exceeds an established threshold. This disclosure should occur when the regents approve the employees’ salaries and at least annually in a report to the regents. If the president’s office continues to submit its annual report on compensation to the regents, it should ensure that it is accurate and timely. AGENCY COMMENTS The university accepts the findings in our report and indicates that it will combine our recommendations with those of other efforts currently underway to make improvements to the university’s compensation programs and disclosure practices. n California State Auditor Report 2006-103  Blank page inserted for reproduction purposes only. 6 California State Auditor Report 2006-103 InTRoDUCTIon BACKGROUND The University of California (university) is a public, state- supported land grant institution with a mission to teach and conduct research in a wide range of disciplines and to provide public services. The university consists of nine general campuses and a 0th campus in San Francisco devoted to the health sciences. The university offers undergraduate, graduate, and professional education at all its campuses; has five medical schools and three law schools; and manages three national laboratories. During the fall of 2005, it served 208,000 students on its campuses and 333,000 students through its extension program. The California Constitution designates the university as a public trust administered by its 28-member Board of Regents (regents).2 The regents maintain full power of organization and government, subject only to limited control by the Legislature, and have delegated a broad range of authority and responsibility to the president of the university. A central Office of the President (president’s office) heads the university’s administrative structure, with the president responsible for overall policy development, planning, and resource allocations. The chancellor at each campus has primary responsibility for managing campus resource allocations and administrative activities. The university receives its funding from several sources. Of the university’s $9.4 billion in revenues for fiscal year 2004–05, the State’s contributions, including state grants and contracts, totaled $3 billion, while revenue from student tuition and fees was $.6 billion. According to the university’s audited financial statements, state appropriations and student tuition and fees are the core components supporting the instructional mission of the university, while grants and contracts provide opportunities for students to participate in research activities. In contrast to the $4.6 billion in state and student contributions, funds received by the university from the operation of its medical centers and the national laboratories it manages totaled more than $8. billion in fiscal year 2004–05, of which $7.7 billion went toward the expenses associated with those functions. 2 This includes two nonvoting members from university faculty. California State Auditor Report 2006-103  As indicated in the Figure, for fiscal year 2004–05 the salary and benefits of university employees, including employees at medical centers but not national laboratories, totaled more than $8.9 billion and represented 48 percent of the university’s operating expenses. FIGURE University of California Operating Expenses Fiscal Year 200–0 (Dollars in Millions) Other operating expenses $2,237 (12%) National laboratories Salaries and wages (all expenses, including $7,441 (40%) salaries and wages) $4,112 (22%) Depreciation and amortization $955 (5%) Supplies and materials Benefits $1,707 (9%) $1,483 (8%) Utilities Scholarships and $311 (2%) fellowships $363 (2%) Source: University of California annual financial report, fiscal year 2004–05. COMPENSATION CONTROVERSY AND THE UNIVERSITY’S RESPONSE Beginning in November 2005, numerous articles issued by various media faulted the university for providing certain faculty and administrators with undisclosed compensation beyond their base salaries, including bonuses, administrative stipends, relocation packages, and other forms of cash compensation, at the same time it was increasing student fees. Additional issues raised by the media articles included the cost of housing the university provided to its president and chancellors, a refusal by the university to release to the public a written proposal to allegedly  California State Auditor Report 2006-103 boost top executives’ salaries, a widening salary gap between low- and high-paid employees, and the postresignation compensation packages provided to two high-ranking university administrators. In response to the controversy created by the issues and allegations raised in the media articles, the university provided information and explanations to the public; embarked on fact-finding efforts, including the creation of a compensation task force charged by the regents with reviewing the university’s current disclosure policies and practices; and implemented new compensation policies. On a new Web site dedicated solely to compensation, the university published a list of questions raised by the compensation controversy and the university’s corresponding answers. In addition, the university’s Web site included a December 2005 open letter in which the president said he believed the articles raised some important issues about university compensation but failed to present those issues in context, such as a recognition that salaries for faculty and staff across the university are significantly less than those offered at comparable institutions. The university also indicates that it has developed a practice to ensure a more timely release to the public of salary items approved by the regents, including interim actions. According to a September 2005 study prepared for the university by a consultant, the average cash compensation among university employees lagged the average market salary by 5 percent, but because of favorable health and retirement benefits offered at the university, overall compensation was at market level. However, the consultant’s study indicated that continuing increases in health care costs and the likelihood that the university would reinstate employee pension plan contributions would necessitate increases in salaries in the coming years. In February 2006 two legislative committees called on the university president and some of the regents to answer questions regarding the university’s compensation policies. In written testimony prepared for these meetings and published on the university’s Web site, the university president and the chair of the regents (chair) admitted that the regents had not been informed of the compensation arrangements of the two high-ranking university administrators and other executives in violation of the university’s disclosure policies. The university president took responsibility for the fact that the university had not always met its obligations to the public in matters of compensation and compensation disclosure. The president and chair also discussed a number of actions the university was taking to address the problems identified by the recent controversy. In March 2006 the chair announced that the regents and president California State Auditor Report 2006-103  will be assessing how to best organize the president’s office and will be creating an independent compliance Selected Types of Compensation Provided by the University officer reporting directly to the regents. Table  summarizes the efforts of the university to review its • Auto allowance: Use of a university-provided auto, a past compensation disclosure practices and improve monthly cash allowance in lieu of an auto, or payment for using an employee’s personal auto for business use. oversight of compensation matters in the future. • By agreement: A broad category in which the university groups various sorts of compensation items. • Clinical pay: A term used in our report to refer to OVERVIEW OF THE UNIVERSITY’S Health Sciences Compensation Plan pay and other medical-related payments. COMPENSATION POLICY • Differential pay: Premium paid to employees, mostly at the university’s medical centers, for performing non- The university provides various types of overtime work on an evening, night, weekend, holiday, compensation and benefits to its employees, as or “on-call” shift. shown in the text box. In addition to regular base • Housing allowance: Payment to provide support for housing costs. pay, university employees may earn overtime, • Lump-sum payments: A broad category in which the differential pay, and stipends for additional work university groups various sorts of compensation items. performed. They are also eligible for several other • Mortgage Origination Program loan: Home loan made forms of compensation, including incentive through a university-sponsored program at below-market interest rates designed to recruit and retain faculty and awards, bonuses, and compensation for performing senior managers. teaching and research duties beyond their regular • Moving expenses: Payment for expenses associated assignments, such as teaching summer classes or with moving household goods and personal effects to a residence at or near a new job site. additional classes. The university provides most employees with medical, vision, dental, retirement, • Relocation allowance: Payment to a new employee intended to offset higher living costs in a new location. disability, and life insurance benefits. University • Sabbatical leave: Paid extended leave of absence. employees are also eligible for numerous types of • Severance pay: Payment under the Senior Management leave, including sick leave, vacation leave, and Severance Pay Plan to an eligible senior manager administrative leave. Some academic personnel are who separates from employment and was funded by university contributions at either 3 percent or 5 percent eligible for sabbatical leave. of an employee’s salary per year. In 2005, this plan was replaced, and the university’s contributions now go to the eligible employee’s defined compensation plan. Believing that it needs to compete with other • Stipend: Compensation for undertaking temporarily universities for candidates for senior management assigned responsibilities that are outside the scope of or key academic positions, the university may an employee’s regular responsibilities and usually of a higher-level position. offer candidates incentives such as housing and • Supplemental Home Loan Program: Secondary home relocation allowances, eligibility for the Mortgage loan made available to qualified employees at below- Origination Program and the Supplemental market rates. Home Loan Program, reimbursement for moving Sources: Various university policies, procedural manuals, expenses and travel, and the costs associated with brochures, and fact sheets. relocating to their new positions. The university may also offer other incentives, like discretionary research funding; guarantees of spousal employment; capital improvements to university-provided housing, offices, and laboratories; and budget supplements to the candidate’s future academic department. 10 California State Auditor Report 2006-103 TABLE 1 Actions Taken by the University of California to Respond to the Compensation Controversy Fact Finding Efforts Efforts to Improve Oversight New Policies Audit of compensation practices: The Compensation committee: The Separation agreements: In January 2006 the regents Board of Regents (regents) in concurrence regents created a special committee adopted an interim policy requiring all separation with the Office of the President retained on compensation that will review agreements for designated officers of the university PricewaterhouseCoopers, LLP, to examine and make recommendations to and for all other employees involving consideration compensation for University of California the regents on all matters related of $100,000 or more to be submitted to the regents (university) employees who hold or have to university compensation and for approval. held 32 senior management positions benefits, including all matters from 1996 through 2005. requiring regental action. The committee can conduct any studies or audits as necessary. Compensation task force: The regents Ethics training: In April 2006 Exceptions to policy: In February 2006 the assembled a task force of state and the university said that it will president announced an interim policy requiring national figures to review university implement mandatory ethics all employment-related exceptions (including compensation, accountability, and training for all its employees. The compensation) for senior managers to be acted on transparency. The task force, assisted university president recommended by the president in consultation with the regents by Deloitte Consulting, is reviewing the that training be expanded for and the committee on compensation. university’s current disclosure policies senior managers to include a focus and practices. on compliance requirements. Internal audit: The university’s auditor is Information systems: To meet its Delegation of salary approval: In January 2006 conducting a review of the compensation obligation of public accountability, the regents approved a salary structure in which all for all members of the university’s senior the university announced in designated senior management and other high- management group, excluding the April 2006 that it will invest in level administrative positions with salaries above 32 positions already being examined by the first-phase development of a the indexed compensation level are placed in salary PricewaterhouseCoopers, LLP. comprehensive human-resources ranges. The policy gives the university president information system that will allow the authority to raise salaries within these ranges it to quickly analyze compensation without prior approval by the regents subject to data. The university president certain limitations. The regents will approve the total said that the focus will first be on budgetary funding available for salary increases for capturing senior management the entire senior management group. For the top compensation information starting 32 designated positions, the regents maintain the in October 2006. authority for all compensation actions. In addition, the regents will continue to approve all salary increases in excess of 15 percent of base salary that result in a salary above the salary grade midpoint or above the salary range maximum for the employee’s position. For fiscal year 2005–06, the regents must approve all total compensation in excess of $200,000 and all salary increases exceeding 7.5 percent for senior managers. Renovation and remodeling of chancellors’ residences and offices: In March 2006 the president approved a policy that will require all minor and major capital projects (i.e., projects costing $25,000 to $5 million, inclusive) involving chancellorial residences or offices to have prior approval of the president. Sources: Bureau of State Audits’ summary of information available on the university’s Web site and information provided by the university auditor. California State Auditor Report 2006-103 11 Senior managers are eligible for additional benefits, including special severance pay (changed to contributions to a senior manager’s defined compensation plan in 2005) and life insurance plans, salary continuation during disability, and increased business travel accident insurance. In addition, senior managers who hold academic titles that qualify them for accrual of sabbatical leave credit continue to accrue such credit while in an administrative position. Certain senior managers are also eligible for auto allowances, and the university provides the president and chancellors with university-owned homes. Medical school or center employees receive clinical pay that is covered by separate compensation plans. SCOPE AND METHODOLOGY The Joint Legislative Audit Committee (audit committee) requested that the Bureau of State Audits review the compensation practices of the university. Specifically, the audit committee asked us to determine the extent to which the university used various benefit programs to compensate employees by performing the following analysis: • To the extent data are centrally maintained and reasonably consistent among campuses, identify systemwide compensation by type and funding source. • Subject to the same limitations, categorize by type and funding source the compensation of highly paid individuals receiving the most funds from state appropriations and student tuition and fees. • For the same highly paid individuals, determine whether any additional compensation or employment inducements not appearing in the university’s centrally maintained records have been recorded in any employment agreements with the university. The audit committee also asked us to determine the extent to which certain aspects of university compensation programs are disclosed to the regents and to the public, including the types of programs that exist, their size and cost, and the benefits that participants receive. To the extent that this information is available and is not publicly disclosed, the audit committee asked us to include these items in our report. Finally, we were 12 California State Auditor Report 2006-103 asked to survey selected major universities to identify their disclosure practices related to compensation programs and the number of participants and expenses for those programs. To identify systemwide and individual compensation by type and funding source, we obtained data from the Corporate Personnel System (CPS) for all employees of the university during fiscal year 2004–05. This system consolidates information from the payroll systems of each university campus and the national laboratories. To understand the CPS and the consolidation of data, we interviewed university staff and reviewed relevant documentation. To present systemwide information in a concise form, we recategorized the compensation classifications provided by the president’s office. To do so, we reviewed campus-level compensation classifications and general categorizations created by the president’s office, and when necessary we obtained clarifying information from the president’s office staff. After doing so, the president’s office reviewed our categorizations and agreed that they were reasonable. We obtained information from the CPS and president’s office staff that allowed us to identify state appropriations and student tuition funding sources. However, the president’s office was unable to assign eight fund groups, and a portion of a ninth, to the funding sources we identified because the source is either not represented in the categories we defined or is a mixture of the categories we identified. Because it was not feasible to individually evaluate each fund contained within these fund groups—which numbered 3,000—we included the fund groups in our selection of highly compensated individuals to avoid excluding relevant individuals. For the reasons described above, we present the “Other” funds discretely in each of our tables. The standards from the U.S. Government Accountability Office (GAO) require us to assess the reliability of computer-processed data. The GAO asserts that data are reliable when accurate, reflecting the data entered from source documents, and complete, containing all data elements and records necessary for the audit. Although we conducted procedures to attempt to ensure the reliability of the data we reviewed as required by GAO standards, we were unable to fulfill data reliability requirements to ensure the completeness of the information in the CPS. We are aware that to some extent the compensation for any given fiscal year is not entirely complete because it does not include adjusting payroll entries that occur after the president’s office closes the CPS for the fiscal year, which occurs after campuses California State Auditor Report 2006-103 13 submit their July data, according to a university analyst. For example, we found that CPS data for fiscal year 2004–05 did not include a $40,500 performance bonus that was paid after the CPS was closed in October 2005 to an employee for work performed in fiscal year 2004–05. To determine the extent to which the CPS was not complete, we would need to reconcile the CPS with its audited financial statements. We requested that the president’s office provide the information necessary for us to reconcile the figures in the CPS to the wage and salary figures in its audited financial statements. However, the president’s office informed us that such a reconciliation would take substantial time and resources because each campus generally uses a different general ledger system and chart of accounts, which would require us to visit each campus to obtain the understanding and information necessary to perform this work. Given the short time frame available to us, we were not able to obtain this information and complete this work. In addition, as noted earlier, we were unable to obtain information from the university on the funding sources for some of the fund groups in the “Other” category. Further, as noted in the Audit Results, we found inconsistencies in how the president’s office and the campuses classified compensation within the CPS. We were not able to determine the extent to which certain compensation categories and funding sources would need to be adjusted to precisely present the university’s compensation information. Consequently, we concluded that the systemwide data totals from the CPS that we present in Tables 2, 3, and 4 in the Audit Results are of undetermined reliability. However, the university indicates that the CPS is the most detailed and complete data source available for presenting systemwide compensation for its employees; therefore, we believe that it is relevant to include the data contained in Tables 2, 3, and 4. Further, to obtain assurance on the accuracy of CPS data, we performed data reliability tests on the compensation provided to a sample of employees, as described later in this section. Our systemwide summaries of compensation by type and funding source include university campuses and medical centers, the three national laboratories it manages, and the Hastings College of the Law (Hastings). However, the national laboratories and Hastings are otherwise excluded from the scope of our audit because, according to the university, funding for the laboratories comes from federal sources and because a separate board governs Hastings. 1 California State Auditor Report 2006-103 To determine whether highly compensated university employees received any additional employment inducements beyond what is recorded in the CPS, we examined the personnel files of the 00 university employees receiving the greatest percentage of their compensation from funding sources made up entirely or partially of state and student sources. Of the 00 employees selected, 54 held administrative positions and 46 held academic positions. Of the 54 administrators selected, 5 were part of the university’s senior management group, 2 of which are or were members of the top 32 administrative positions in the university. By selecting our sample using state- and student-sourced funding as a basis, we do not imply that we are less concerned with how the university manages its use of funds from other sources. On the contrary, because the university exists as a constitutionally based public trust, it is an entity of the State; as such, all university funds are state funds and should be expended with similar regard for the university’s responsibilities as a public trust. However, we selected our sample in this manner because the audit committee asked us to focus on individuals receiving the most funds from state and student sources. For further verification of the reliability of CPS data, we chose 30 of the 00 employees and determined whether payroll or personnel records outside the CPS supported the compensation data for those employees. In each case we found compensation amounts to be accurate. However, as discussed in the Audit Results, some forms of compensation appeared to be misclassified. In addition to testing data reliability using the sample of 30 employees, we performed a limited review of the appropriateness of the compensation they received. Specifically, for those compensation types and amounts that we determined needed additional review, we obtained relevant documentation to determine that the compensation provided was consistent with university policy and asked the university to explain why certain employees received particular compensation items. Our review was limited by the short time frame in which the audit committee asked us to report our results. We judgmentally selected the sample of 30 employees to achieve a spread among campuses, administrators, and academic staff. Finally, to test the university’s disclosure practices for employees receiving compensation in fiscal year 2004–05, we reviewed regents’ minutes for meetings concerning a sample of 20 university employees, including 0 officers, chosen from the 00 university employees listed in Appendix A. We determined California State Auditor Report 2006-103 1 whether salary and nonsalary compensation provided to university employees was approved by the regents under appropriate circumstances. The university provided us with access to confidential information relating to personnel decisions; however, state law prohibits us from releasing detailed information. Also, to compare the public disclosure policies of the university with those of comparable institutions, we selected a sample of 5 universities and asked them to complete a survey. Specifically, we asked business officers at the 5 universities recently surveyed by the task force to provide information about their disclosure practices regarding various types of compensation and benefit programs they offered, including the amount of annual program expenses, the number of participants in each program, and means of disclosure for the benefits individual participants receive. Additionally, we asked the university to complete the survey. We present the responses of the university and the seven responding universities in Appendix B. n 16 California State Auditor Report 2006-103 AUDIT ReSULTS LACK OF CONSISTENCY WITHIN THE CORPORATE PERSONNEL SYSTEM LIMITS ITS USEFULNESS The personnel information reporting system used by the University of California (university), the Corporate Personnel System (CPS), contains inconsistencies and overly vague categorizations. Therefore, we could not determine the reliability of the amounts recorded in various compensation and funding source classifications contained within the CPS. In addition, the weaknesses of the CPS limit its usefulness as an oversight tool for the Office of the President (president’s office) to monitor campuses’ compliance with compensation policies. We were asked to identify university systemwide compensation by type and funding source to the extent that data is centrally maintained and is reasonably consistent among campuses. Although we found inconsistencies within the CPS, we provide the data in the tables of the next two sections because the CPS is the most detailed and complete centrally maintained source of this information. The CPS provides management and staff in the president’s office with demographic, personnel, and pay activity data on employees paid at the university’s campuses and laboratories. Established in 983, the CPS contained the records of more than 250,000 university employees for fiscal year 2004–05. The CPS uses two types of compensation descriptions: campus-specific categories and general categories maintained by the president’s office. While the president’s office manages the CPS, individuals at various university campuses and laboratory sites perform data entry on payroll systems that feed into the CPS. The current university practice is to allow campuses to both establish their own unique codes for classifying compensation and to assign them to general categories of compensation maintained by the SSppeecciifificc ttyyppeess ooff ppaayymmeennttss president’s office. tthhaatt aarree iinntteennddeedd ttoo bbee sseeppaarraatteellyy aaccccoouunntteedd In addition, as discussed later in the report, university policy ffoorr,, ssuucchh aass ssaabbbbaattiiccaall allows campuses to assign funding sources to the various fund lleeaavvee oorr aauuttoo aalllloowwaanncceess,, groups the president’s office has established. However, we found wweerree ssoommeettiimmeess ppllaacceedd problems with the classification of compensation to each of wwiitthhiinn ootthheerr ccaatteeggoorriieess,, the two types of compensation descriptions. First, we found ssuucchh aass rreegguullaarr ppaayy.. specific types of payments that are intended to be separately accounted for, such as sabbatical leave or auto allowances, were California State Auditor Report 2006-103 1 sometimes placed within other categories, such as regular pay. This precluded us or the university from computing an exact total paid for these categories. Second, we found specific campus categories inconsistently spread among various general categories in the CPS that precluded us from using the general categories in our analyses and minimizes the usefulness of the CPS to the president’s office in fulfilling its responsibility to monitor campuses’ compliance with compensation policy. One example of vague categorization that we found is the use by the president’s office and university campuses of the “By Agreement” category for numerous types of compensation, including payments related to the Health Sciences Compensation Plan, fellowships and scholarships, relocation incentives, housing allowances, bonuses, and certifications. In addition, campuses are inconsistent in the assignment of specific categories into general categories. For example, some housing allowances were assigned to the general categories of “Employment Allowances,” “Perquisites,” and “By Agreement.” In addition, the general categories of “Sabbatical Leave” and “By Agreement” contained sabbatical leave payments while the “Regular Pay” category contained “Sabbatical Leave Supplements,” which are payments to provide a recipient of a sabbatical leave at less than full salary with additional salary for research. Consequently, to present a concise overview of compensation by type and funding source, we had to recategorize the CPS information provided to us by the president’s office to ensure similar payments were grouped together. However, because of inconsistencies and overly vague compensation descriptions in BBeeccaauussee ooff iinnccoonnssiisstteenncciieess both specific and general categories as discussed above, it is difficult aanndd oovveerrllyy vvaagguuee to precisely quantify some types of compensation using the CPS. ccoommppeennssaattiioonn ddeessccrriippttiioonnss iinn bbootthh ssppeecciifificc aanndd ggeenneerraall Although these practices offer campuses a flexibility that may ccaatteeggoorriieess,, iitt iiss ddiifffificcuulltt ttoo be more convenient for gathering the information they need, pprreecciisseellyy qquuaannttiiffyy ssoommee we observed that the practices also create inconsistency and ttyyppeess ooff ccoommppeennssaattiioonn uncertainty when data from the campuses are combined. This uussiinngg tthhee CCPPSS.. occurs because campuses may use the same compensation classification code but sometimes include items that do not relate to that code. For example, as discussed later, the University of California at Irvine (Irvine) inappropriately classified its basketball coach’s $4,800 auto allowance as regular pay, and the University of California at Los Angeles (Los Angeles) inappropriately classified $75,000 from future summer compensation as part of a professor’s housing allowance. We also found that some campuses made errors in the classification of some compensation. For instance, 1 California State Auditor Report 2006-103 the University of California at Davis incorrectly classified $60,500 of sabbatical leave as regular pay, and Irvine incorrectly classified $00,000 of clinical pay as a stipend. In addition, we found that campuses may classify a compensation item under a general category even though greater transparency could have been obtained had they classified the compensation under a more specific classification code available to them. For example, despite specific categories within the CPS for these items, the University of California at San Diego (San Diego) classified its dean of medicine’s clinical pay of $95,000 and incentive pay of $47,000 under the “By Agreement” category. As discussed later, using a complex arrangement that resulted in an overpayment to this dean, the university increased the dean’s clinical pay to essentially allow him to retain external earnings. Although having his clinical pay coded in the CPS correctly likely would not have prevented the eventual overpayment, this case highlights the lack of transparency that sometimes exists within the CPS and the difficulty facing the president’s office in using the CPS as an oversight tool. Similarly, campuses have assigned certain funds within the CPS to the “Other” category of funds, though in some cases they seem relevant to more specific fund groups. Each item of employee compensation in the CPS is charged to a particular fund that is subsequently combined with similar types of funds into a fund group. University campuses are responsible for assigning funds to the appropriate fund groups as defined by the president’s office. Although most fund groups clearly indicate the sources of their funding, some salary expenditures were charged to fund groups classified as “Other.” Some of these designations may be appropriate because the funding source may not fit within the categories we defined; however, the president’s office was unable to assure us that others did not contain state appropriations or student tuition and fees. Furthermore, after reviewing a list of ,200 funds included in TThhee aassssiiggnnmmeenntt ooff ddiiffffeerreenntt one fund group described as “Current Funds–Other Sources ttyyppeess ooff ffuunnddiinngg ttoo aa Other,” we found that it appears to include medical-related ssiinnggllee ggeenneerriicc ffuunndd ggrroouupp revenue, fees, and contract and grant funds, which would seem ddeeccrreeaasseess tthhee uusseeffuullnneessss to relate to specific fund groups already established for these ooff tthhee CCPPSS aass aa ttooooll ffoorr types of activities. The assignment of different types of funding rreevviieeww aanndd oovveerrssiigghhtt bbyy to a single generic fund group decreases the usefulness of the tthhee pprreessiiddeenntt’’ss oofffificcee.. CPS as a tool for review and oversight by the president’s office. Furthermore, we found entries with invalid codes in the data provided to us. For example, 327 payments totaling about $95,000 did not include one of the fund-group designations California State Auditor Report 2006-103 1 noted in Appendix D. The president’s office informed us that this information was missing because some of the payments were erroneously charged to invalid fund numbers. In addition, we identified title codes that were not recognized by the CPS and which cause an invalid entry in the personnel program field, both of which indicate employees’ eligibility for certain TThhee cchhaarrggiinngg ooff types of pay and benefits. These errors have implications for CPS eexxppeennddiittuurreess ttoo iinnvvaalliidd data. For example, the charging of expenditures to invalid funds ffuunnddss pprreesseennttss aa ccoonncceerrnn presents a concern that other expenditures may be charged tthhaatt ootthheerr eexxppeennddiittuurreess to incorrect funds. The university should consider developing mmaayy bbee cchhaarrggeedd ttoo additional automated controls and edits, such as only allowing iinnccoorrrreecctt ffuunnddss.. the entry of information considered valid for the field in question or ensuring that expenditures are charged to the proper fund, to help avoid the possibility of such errors. SUMMARY OF EMPLOYEE COMPENSATION AT THE UNIVERSITY Table 2 summarizes the systemwide compensation for university employees by funding source, based on data from the CPS. The top portion of the table contains items considered regular compensation, which totaled about $8.9 billion of the $9.3 billion paid to university employees during fiscal year 2004–05. These include base pay in the form of hourly or salary compensation, payments for the university’s Health Sciences Compensation Plan and other medical-related services, differential payments, and the payout of accrued leave on an employee’s separation from the university. The remainder of the table—roughly $334 million— contains items considered additional pay above an employee’s regular compensation. Forms of compensation in this category include additional teaching or research, such as summer classes; housing and auto allowances; and stipends for performing duties outside the normal requirements of the position held. Of the four funding source categories shown in Table 2, the source of the largest amount of funds is the category comprising federal and other grants and contracts, endowments, and other auxiliary operations. Income from state sources and student tuition and fees represent the second and third most significant sources, respectively. Funding that the president’s office was unable to assign to any of the categories appears in the column labeled “Other.” To provide perspective on the amounts of various types of compensation received by employees in different income levels within the university, we calculated the percentages of the 20 California State Auditor Report 2006-103 TABLE 2 Systemwide Compensation by Funding Source, Fiscal Year 200–0 (in Thousands) Subtotal of State Federal and Other Student Appropriations, Grants and Contracts, State Tuition Student Tuition and Endowments, and Appropriations and Fees Other* Fees, and Other Auxiliary Operations Totals Regular Pay Base pay† $1,565,165 $779,994 $755,871 $3,101,030 $4,815,101 $,16,131 Off-scale/non-base pay‡ 5,102 2,085 1,812 8,999 2,267 11,266 Health Sciences Compensation Plan and other medical-related pay§ 65,171 24,931 63,429 153,531 528,293 61,2 Fellowship and scholarshipll 916 984 149 2,049 18,993 21,02 University extension# 378 23,813 1,202 25,393 395 2, Overtime, compensation time, and call-back pay 5,083 2,817 12,512 20,412 114,352 13,6 Differential pay 1,377 543 2,058 3,978 51,924 ,02 Leave 2,003 796 1,090 3,889 43,179 ,06 Leave payout 7,035 3,651 4,739 15,425 31,169 6, Subtotals of Regular Pay 1,62,230 3,61 2,62 3,33,06 ,60,63 ,0,3 Additional Pay Sabbatical leave 29,007 11,005 491 40,503 3,695 ,1 Additional teaching and research 22,171 28,436 4,656 55,263 70,447 12,10 By agreement** 6,976 10,489 11,327 28,792 29,172 ,6 Stipend 9,763 4,581 3,297 17,641 8,502 26,13 Tips, honoraria, and continuing education 91 475 200 766 1,632 2,3 Bonus 3,737 2,945 7,714 14,396 31,464 ,60 Hiring, referral, and retention incentives 41 20 59 120 1,323 1,3 Relocation incentive 1,320 529 298 2,147 489 2,636 Other miscellaneous payments 3,848 1,515 304 5,667 3,282 , Lump-sum payments 903 346 989 2,238 5,091 ,32 Housing allowance†† 2,228 1,688 576 4,492 3,223 ,1 Moving expense reimbursement 40 11 39 90 91 11 Automobile allowance 22 8 103 133 413 6 Other perquisites 13 31 1,308 1,352 483 1,3 Perquisite deductions‡‡ (226) (110) (1,324) (1,660) (5,330) (6,0) Severance pay 884 557 1,512 2,953 2,965 ,1 Senior management group severance pay 104 190 1,650 1,944 631 2, Subtotals of Additional Pay 0,22 62,16 33,1 16,3 1,3 33,10 Totals $1,33,12 $02,330 $6,061 $3,11,3 $,63,26 $,2, Source: Bureau of State Audits’ review of data from the Corporate Personnel System (CPS) of the University of California (university). Note: As mentioned in the Scope and Methodology, because of concerns with the data in the CPS, we concluded that the data in it that we present in this table is of undetermined reliability. * The Office of the President (president’s office) was unable to assign the eight fund groups and a portion of a ninth that are included in the “Other” category to the funding sources we identified because the source of funding is either not in the categories we defined or is a mixture of the categories. † This category includes workers’ compensation payments and deductions for the Staff and Academic Reduction in Time Program, an arrangement whereby employees accrue their regular benefits and leave, but pay is reduced by a percentage equal to a negotiated reduction in work hours. ‡ According to the president’s office, a significant amount of off-scale compensation is contained within the “Base Pay” category; however, we were unable to identify these amounts and only present the amounts charged as a separate category by the campus. § According to the president’s office, this figure represents base, negotiated, and incentive pay to faculty in the Health Sciences Compensation Plan (plan), staff physicians and dentists, and to faculty who do not qualify for the plan because their appointment is at 50 percent or less. ll According to the president’s office, the university acts as a fiscal pass-through for some individuals receiving fellowships and scholarships. The university receives the funds on behalf of these individuals and pays them from the funds received. # According to the president’s office, the compensation in this category represents money paid to individuals who are primarily employed at the university extensions. However, it is possible that there may be some compensation paid to individuals who are primarily employed at a university campus and are providing additional instruction at an extension. ** Although the president’s office informed us that this category may contain base salaries for some individuals, for example, it stated that the funds in this category paid to individuals with a title code relating to medical positions should be categorized as plan compensation, because we found that campuses use this category for many different types of compensation, and because of inconsistencies in the title code field, we have chosen not to adjust the campus “By Agreement” categories. †† This category does not include the value of some university-owned housing provided to employees. ‡‡ According to the president’s office, this category is an offset for nonmonetary and nontaxable perquisites such as housing and meals provided at the convenience of the university. For tax purposes, the value of the benefit, which is recorded in other categories, is subsequently offset by this perquisite deduction to reduce the tax liability of an employee. California State Auditor Report 2006-103 21 compensation totals paid to employees in three income brackets in fiscal year 2004–05. As shown in Table 3, the 4,07 university TThhee 44,,007711 uunniivveerrssiittyy employees earning $68,000 or more received 0 percent of eemmppllooyyeeeess eeaarrnniinngg the total regular pay in fiscal year 2004–05 while receiving $$116688,,000000 oorr mmoorree rreecceeiivveedd about 26 percent of the total additional compensation in that 1100 ppeerrcceenntt ooff tthhee ttoottaall same year. Moreover, these employees received most of the rreegguullaarr ppaayy iinn fifissccaall yyeeaarr compensation for auto allowances and much of the pay for 22000044––0055 wwhhiillee rreecceeiivviinngg relocation incentives and moving expenses. Conversely, these aabboouutt 2266 ppeerrcceenntt ooff tthhee employees received little of the pay for bonuses; hiring, referral, aaddddiittiioonnaall ccoommppeennssaattiioonn and retention incentives; and lump-sum payments. ttoottaall iinn tthhaatt ssaammee yyeeaarr.. SUMMARY OF THE COMPENSATION OF UNIVERSITY EMPLOYEES RECEIVING THE MOST FUNDS FROM STATE AND STUDENT SOURCES We were asked to categorize by type and funding source the compensation of highly paid individuals receiving the most funds from state appropriations and student tuition. Table 4 on page 24 summarizes the compensation for 662 individuals receiving at least $68,000 from those funding sources.3 These individuals received $38 million of the $3.5 billion, or 4 percent, of the total state appropriations, student fees, and other sources shown in Table 2. However, these individuals received a much greater percentage of their total from additional compensation than did all other university employees: 8 percent compared with 4 percent. We chose $68,000 as a threshold for defining a highly paid individual because, prior to the recent policy change described in Table , it was the threshold the regents used to determine whether a salary would need their approval. For a sample of the highly paid individuals represented in Table 4, we were asked to determine whether any additional compensation or employment inducements not appearing in the university’s centrally maintained records have been recorded in any employment agreements with the university. In our sample of the 00 employees receiving the most compensation from funding sources made up entirely or partially of state and student sources, we found that an employment agreement did not exist for each employee. Rather, many employees in our sample received offer letters outlining the initial compensation packages offered to them, and an assortment of other documents in their personnel files collectively represented the university’s employment agreements with the individuals. Also, we frequently 3 A compact disc containing detailed information for the 662 university employees earning more than $168,000 from state and student sources will be available shortly after the release of this report from the Bureau of State Audits on request. 22 California State Auditor Report 2006-103 TABLE 3 Systemwide Compensation by Income Bracket Fiscal Year 200–0 (Dollars in Thousands) Employees Receiving Total Compensation of: Number of $,000 Between $,000 $16,000 Category Participants Totals or Less and $16,000 or More Number of Employees 2,23 230,36 2,66 ,01 Regular Pay Base pay* 243,959 $7,916,131 64.7% 29.9% 5.4% Off-scale/non-base pay† 1,023 11,266 28.3 52.6 19.1 Health Sciences Compensation Plan and other medical-related pay‡ 6,924 681,824 9.0 29.6 61.3 Fellowship and scholarship§ 1,293 21,042 99.9 0.1 0.0 University extensionll 5,489 25,788 92.7 4.6 2.7 Overtime, compensation time, and call-back pay 51,751 134,764 68.1 31.3 0.6 Differential pay 32,588 55,902 75.5 24.2 0.3 Leave 7,726 47,068 84.3 14.6 1.1 Leave payout 19,307 46,594 77.0 16.3 6.8 Subtotals of Regular Pay ,0,3 60. 2.6 . Additional Pay Sabbatical leave 1,025 44,198 20.4 58.1 21.4 Additional teaching and research 8,981 125,710 22.6 46.9 30.5 By agreement# 14,734 57,964 57.3 13.7 29.0 Stipend 6,563 26,143 32.4 41.2 26.4 Tips, honoraria, and continuing education 3,511 2,398 60.4 23.6 16.0 Bonus 44,118 45,860 63.7 29.1 7.2 Hiring, referral, and retention incentives 1,049 1,443 74.9 18.8 6.3 Relocation incentive 77 2,636 4.9 36.5 58.6 Other miscellaneous payments 7,994 8,949 14.3 56.8 28.9 Lump-sum payments 7,626 7,329 71.3 23.5 5.2 Housing allowance** 256 7,715 6.9 57.1 36.1 Moving expense reimbursement 125 181 43.1 15.5 41.4 Automobile allowance 72 546 1.1 16.3 82.6 Other perquisites 1,063 1,835 99.7 0.3 0.0 Perquisite deductions†† 4,690 (6,990) 99.8 0.2 0.0 Severance pay 511 5,918 47.9 28.6 23.4 Senior management group severance pay 31 2,575 3.8 25.4 70.9 Subtotals of Additional Pay 33,10 3. 3. 2. Totals $,2, .% 2.% 10.1% Source: Bureau of State Audits’ review of data from the Corporate Personnel System (CPS) of the University of California (university). Note: As mentioned in the Scope and Methodology, because of concerns with the data in the CPS, we concluded that the data in it that we present in this table is of undetermined reliability. Percents may not add to 100 percent due to rounding. * This category includes workers’ compensation payments and deductions for the Staff and Academic Reduction in Time Program, an arrangement whereby employees accrue their regular benefits and leave, but pay is reduced by a percentage equal to a negotiated reduction in work hours. † According to the Office of the President (president’s office), a significant amount of off-scale compensation is contained within the “Base Pay” category; however, we were unable to identify these amounts and only present the amounts charged as a separate category by the campus. ‡ According to the president’s office, this figure represents base, negotiated, and incentive pay to faculty in the Health Sciences Compensation Plan (plan), staff physicians and dentists, and to faculty who do not qualify for the plan because their appointment is at 50 percent or less. § According to the president’s office, the university acts as a fiscal pass-through for some individuals receiving fellowships and scholarships. The university receives the funds on behalf of these individuals and pays them from the funds received. ll According to the president’s office, the compensation in this category represents money paid to individuals who are primarily employed at the university extensions. However, it is possible that there may be some compensation paid to individuals who are primarily employed at a university campus and are providing additional instruction at an extension. # Although the president’s office informed us that this category may contain base salaries for some individuals, for example, it stated that the funds in this category paid to individuals with a title code relating to medical positions should be categorized as plan compensation, because we found that campuses use this category for many different types of compensation, and because of inconsistencies in the title code field, we have chosen not to adjust the campus “By Agreement” categories. ** This category does not include the value of some university-owned housing provided to employees. †† According to the president’s office, this category is an offset for nonmonetary and nontaxable perquisites such as housing and meals provided at the convenience of the university. For tax purposes, the value of the benefit, which is recorded in other categories, is subsequently offset by this perquisite deduction to reduce the tax liability of an employee. California State Auditor Report 2006-103 23 TABLE  Compensation for Individuals With More Than $16,000 in State and Student Tuition and Fee Income by Funding Source Fiscal Year 200–0 (in Thousands) Student Subtotals of State Federal and Other Grants State Tuition Appropriations, Student and Contracts, Endowments, Category Appropriations and Fees Other* Tuition and Fees, and Other and Auxiliary Operations Totals Regular Pay Base pay† $58,857 $25,482 $16,588 $100,927 $6,330 $10,2 Off-scale/non-base pay‡ 596 312 10 918 57  Health Sciences Compensation Plan and other medical-related pay§ 2,192 1,385 9,380 12,957 6,146 1,103 University extensionll — 3 442 445 2  Differential pay 42 16 1 59 4 63 Leave 188 71 80 339 18 3 Leave payout 447 167 202 816 88 0 Subtotals of Regular Pay 62,322 2,36 26,03 116,61 12,6 12,106 Additional Pay Sabbatical leave 1,661 703 27 2,391 161 2,2 Additional teaching and research 2,924 3,683 1,186 7,793 4,530 12,323 By agreement# 195 951 1,557 2,703 693 3,36 Stipend 1,283 663 339 2,285 255 2,0 Tips, honoraria, and continuing education — 12 9 21 4 2 Bonus 14 34 993 1,041 161 1,202 Relocation incentive 514 222 267 1,003 212 1,21 Other miscellaneous payments 930 349 34 1,313 156 1,6 Lump-sum payments 34 13 2 49 208 2 Housing allowance** 765 299 275 1,339 286 1,62 Moving expense reimbursement 4 1 35 40 29 6 Automobile allowance 18 7 99 124 213 33 Severance pay — — 503 503 — 03 Senior management group severance pay 86 183 1,133 1,402 91 1,3 Subtotals of Additional Pay ,2 ,120 6, 22,00 6, 2,006 Total $0,0 $3,6 $33,162 $13,6 $1,6 $1,112 Source: Bureau of State Audits’ review of data from the Corporate Personnel System (CPS) of the University of California (university). Note: As mentioned in the Scope and Methodology, because of concerns with the data in the CPS, we concluded that the data in it that we present in this table is of undetermined reliability. * The Office of the President (president’s office) was unable to assign the eight fund groups and a portion of a ninth that are included in the “Other” category to the funding sources we identified because the source of funding is either not in the categories we defined or is a mixture of the categories. † This category includes workers’ compensation payments and deductions for the Staff and Academic Reduction in Time Program, an arrangement whereby employees accrue their regular benefits and leave, but pay is reduced by a percentage equal to a negotiated reduction in work hours. ‡ According to the president’s office, a significant amount of off-scale compensation is contained within the “Base Pay” category; however, we were unable to identify these amounts and only present the amounts charged as a separate category by the campus. § According to the president’s office, this figure represents base, negotiated, and incentive pay to faculty in the Health Sciences Compensation Plan (plan), staff physicians and dentists, and to faculty who do not qualify for the plan because their appointment is at 50 percent or less. ll According to the president’s office, the compensation in this category represents money paid to individuals who are primarily employed at the university extensions. However, it is possible that there may be some compensation paid to individuals who are primarily employed at a university campus and are providing additional instruction at an extension. # Although the president’s office informed us that this category may contain base salaries for some individuals, for example, it stated that the funds in this category paid to individuals with a title code relating to medical positions should be categorized as plan compensation, because we found that campuses use this category for many different types of compensation, and because of inconsistencies in the title code field, we have chosen not to adjust the campus “By Agreement” categories. ** This category does not include the value of some university-owned housing provided to employees. 2 California State Auditor Report 2006-103 found that to identify additional employment inducements, we could not rely solely on a centrally maintained personnel file on each campus but had to view documentation from the various schools and departments in which the individuals worked. Because this information was in several locations, we are uncertain that we identified all additional employment inducements for our sample. Consequently, we obtained additional information from the university’s fiscal year 2004–05 annual compensation report for the university officers and high-level administrators included in our sample. Appendix A presents the compensation and additional employment inducements provided to the 00 university employees in our sample. Among the inducements we found were the granting of low-interest home loans, allocation of research and administrative funds, transference of sabbatical credits from former employers, reduction in normal teaching loads, spousal appointments, and improvements in either the facilities or operating budgets of the incoming employees’ departments. THE PRESIDENT’S OFFICE REGULARLY GRANTED EXCEPTIONS TO COMPENSATION POLICY It appears that the president’s office has regularly granted exceptions to university compensation policy. Of the 00 highly compensated TThhee pprreessiiddeenntt’’ss oofffificcee employees whose personnel files we reviewed, 7 benefited from ggrraanntteedd eexxcceeppttiioonnss ttoo such exceptions. University policy authorizes the president’s office ppoolliiccyy tthhaatt aalllloowweedd aa ddeeaann to approve exceptions that provide employees with benefits for aatt LLooss AAnnggeelleess ttoo rreecceeiivvee which they otherwise would not be eligible. For example, the aa $$227700,,000000 hhoouussiinngg president’s office has the authority to grant a university employee a aalllloowwaannccee aanndd aa ddeeaann housing allowance exceeding the limit established by policy. In two aatt RRiivveerrssiiddee ttoo rreecceeiivvee particular instances from our sample, the president’s office granted aa $$118877,,550000 hhoouussiinngg exceptions that allowed a dean at Los Angeles to receive a $270,000 aalllloowwaannccee aatt aa ttiimmee housing allowance and a dean at the University of California at wwhheenn ppoolliiccyy lliimmiitteedd ssuucchh Riverside (Riverside) to receive a $87,500 housing allowance aalllloowwaanncceess ttoo nnoo mmoorree at a time when policy limited such allowances to no more than tthhaann $$5533,,330000.. $53,300. In addition, the president’s office granted auto allowances of $8,96 to a senior vice chancellor and a medical school dean as exceptions to the university policy that limits such allowances to the president, chancellors, laboratory directors, vice presidents, principal vice chancellors, vice chancellors for university relations, hospital directors, principal officers of the regents, and the associate treasurer of the regents. California State Auditor Report 2006-103 2 The president’s office also approved an exception to policy for a senior vice chancellor at San Diego to restore 220 hours of accrued vacation leave she lost under a university personnel policy that requires employees to schedule time off within six months of accruing the maximum number of vacation days. Moreover, the president’s office granted six executives in our sample who held academic appointments, including four chancellors and a campus provost, exceptions permitting them to participate in the university’s senior management severance pay plan. By doing so, the university agreed to contribute the equivalent of 5 percent of the employees’ salary into an interest bearing account that they receive when they leave the university. For three of these executives, the exceptions were requested because the university inadvertently informed them during the recruitment process they could participate in the severance plan. The president’s office also granted the University of California at Berkeley (Berkeley) chancellor exceptions to policy to reduce the number of years he needed to qualify for increased health care contributions provided by the university and obtained approval from the regents to have his retirement income calculated based on his full salary of $390,000 rather than on the earnings limit of $205,000 dictated by the Internal Revenue Service (IRS) code. According to a July 2004 meeting of the regents, if the university does not obtain approval from the IRS to use an employee’s entire base salary in the calculation of retirement benefits, the university will pay the enhanced retirement benefit to the Berkeley chancellor from its own funds. Frequently granting policy exceptions that allow certain employees to receive additional compensation and benefits can undermine the credibility of the policy and create an FFrreeqquueennttllyy ggrraannttiinngg ppoolliiccyy environment of noncompliance. The findings in the next section, eexxcceeppttiioonnss ccaann uunnddeerrmmiinnee that university policies were circumvented to benefit particular tthhee ccrreeddiibbiilliittyy ooff tthhee ppoolliiccyy employees, highlights the need for an environment demanding aanndd ccrreeaattee aann eennvviirroonnmmeenntt compliance to established thresholds and procedures. By regularly ooff nnoonnccoommpplliiaannccee.. granting policy exceptions, the president’s office weakens its oversight of the university campuses. As described in Table  on page , the president announced in February 2006 that on an interim basis all exceptions for senior managers would be acted on by the president in consultation with the regents. This type of high-level attention to exceptions should help increase overall compliance. However, the university will need to develop a permanent exception approval process to ensure that exceptions to policy do not become commonplace. 26 California State Auditor Report 2006-103 THE CIRCUMVENTION OF POLICY CAUSED A SIGNIFICANT OVERPAYMENT AND INAPPROPRIATE INCREASES IN RETIREMENT-COVERED COMPENSATION Some university campuses circumvented and in some cases violated university policy, resulting in an overpayment to an employee and inappropriate increases to other employees’ retirement-covered compensation. Although we were not specifically asked to review the appropriateness of the compensation paid to university employees, as discussed in the Scope and Methodology, we performed a limited review of the appropriateness of compensation for a sample of university employees as part of our work to determine whether the data in the CPS is reliable. Our review revealed two examples of campuses creating complex compensation arrangements that circumvented policy, which in one case caused an employee to receive overpayment of approximately $30,000, and one example in which a university included questionable forms of compensation in a vice chancellor’s sabbatical pay. Additionally, we found that some campuses included inappropriate forms of compensation, such as housing and auto allowances, in individuals’ retirement-covered compensation, which could result in employees receiving retirement pay at a rate higher than they are entitled to receive. San Diego Approved a Compensation Arrangement That Circumvented University Policy and Resulted in a Significant Overpayment to an Employee To avoid directly violating university policy by permitting its dean of medicine (dean) to retain certain external earnings, San Diego approved a complex arrangement that circumvented university policy and eventually resulted in an overpayment to the dean. In August 200 San Diego asked the president’s office for advice on obtaining an exception to allow the dean to retain, in violation of the university’s Health Sciences Compensation AA pprreessiiddeenntt’’ss oofffificcee Plan (plan), the value of stock received as compensation for aassssiissttaanntt vviiccee pprreessiiddeenntt service on a scientific advisory board. Under the plan in effect at wwaass ssuuppppoorrttiivvee ooff tthhee the time, the value of any stock that a plan member received as eexxcceeppttiioonn bbuutt ppooiinntteedd oouutt compensation for services provided to a for-profit entity had to tthhaatt tthhiiss ssppeecciiaall ttrreeaattmmeenntt pass through the university, which retained a percentage of the wwoouulldd ppuutt tthhee ddeeaann iinn outside earnings for overhead expenses. ““aa ddiifffificcuulltt ssppoott iinn tteerrmmss ooff iimmppoossiinngg tthhee PPllaann In October 200 a president’s office assistant vice president pprroovviissiioonnss oonn tthhee indicated that she was supportive of the exception to allow SScchhooooll ffaaccuullttyy..”” the dean to retain his outside earnings but pointed out to the then-chancellor of San Diego (chancellor) that the dean California State Auditor Report 2006-103 2 would be getting special treatment not available to other plan members, and this special treatment would put the dean in “a difficult spot in terms of imposing the Plan provisions on the School faculty.” Instead, the assistant vice president proposed that San Diego increase the dean’s clinical pay by the estimated value of the stock and then have the dean use this increase in compensation to “pay into the Plan the value of the stock . . . just like any other faculty member.” The assistant vice president then suggested that, to avoid “a big financial burden [on the dean] to come up with the money,” San Diego authorize a payment schedule that would not start immediately and would allow the dean to pay into the plan slowly over time. Subsequently, San Diego increased the dean’s clinical pay by $5,000 per month, starting in November 200 and continuing to the present. San Diego deducted $5,000 per month from his salary from October 2002 through October 2004, with a final deduction RRaatthheerr tthhaann vviioollaattee iittss of $,35 occurring in November 2004. These deductions totaled ppoolliiccyy bbyy aalllloowwiinngg tthhee $26,35, which was the estimated value of the stock that the ddeeaann ttoo kkeeeepp tthhee vvaalluuee dean needed to pay into the plan. Although the arrangement was ooff tthhee ssttoocckk,, SSaann DDiieeggoo intended to compensate the dean only for the amount he had cciirrccuummvveenntteedd tthhee ppoolliiccyy to pay into the plan, as of January 2006 the dean had received aanndd uusseedd uunniivveerrssiittyy $255,000 related to the increase in clinical pay and was continuing ffuunnddss ttoo ppaayy tthhee ddeeaann to receive $5,000 per month despite the ending of deductions aann eexxttrraa $$112288,,664499.. apparently designed to offset that increase. Consequently, rather than violate its policy by allowing the dean to keep the value of the stock, San Diego circumvented the policy and used university funds to pay the dean an extra $28,649 ($255,000 minus $26,35). In February 2006 we informed San Diego’s Audit and Management Advisory Services (auditors) of the apparent failure to discontinue the additional pay of $5,000 per month to the dean. In March 2006 San Diego sent a letter informing the president’s office that its auditors had reviewed the dean’s records and concluded that the dean had received a salary overpayment of approximately $30,000 and that the increase in his clinical pay was not properly disclosed to the regents. In the letter San Diego agreed that “policy and procedures were not handled appropriately in this transaction” but argued that the resulting total compensation would still be warranted based on the dean’s performance and based on a salary comparison with deans at three of the university’s other medical schools. The campus then argued that, despite the conclusion of its auditors that there was an overpayment, it would be inappropriate to penalize the dean by asking for repayment because the problem 2 California State Auditor Report 2006-103 was related to a series of university administrative errors in which the dean played no role. Further, San Diego asserted that it was inappropriate to discontinue paying the dean the additional $5,000 per month as doing so would place his salary well below that of his peers. As of April 2006, the president’s office indicates it is reviewing this matter. Los Angeles Created a Complex Compensation Package That Circumvented Policy and Obscured the Nature of the Eventual Compensation Received In the summer of 2004 an interim dean of the law school at Los Angeles proposed a compensation package that would allow an incoming law professor to receive in his first year of employment a $75,000 advance payment for the summer research compensation he was authorized to receive in 2005 and 2006. The interim dean proposed that this $75,000 be paid as an additional housing allowance, on top of the housing allowance of $53,300 that Los Angeles had already agreed to provide the AAfftteerr tthhee aarrrraannggeemmeenntt wwaass incoming professor. After the arrangement was approved by aapppprroovveedd bbyy tthhee ccaammppuuss’’ss the campus’s vice chancellor of academic personnel, the law vviiccee cchhaanncceelllloorr ooff aaccaaddeemmiicc professor received a total housing allowance of $28,300 as part ppeerrssoonnnneell,, tthhee llaaww pprrooffeessssoorr of his initial compensation package. rreecceeiivveedd aa ttoottaall hhoouussiinngg aalllloowwaannccee ooff $$112288,,330000 According to the audit manager at Los Angeles (audit manager), aass ppaarrtt ooff hhiiss iinniittiiaall although university policy does not specifically allow for an advance ccoommppeennssaattiioonn ppaacckkaaggee.. payment to an employee for future summer research compensation, the audit manager determined that all elements of this compensation arrangement were within university policy. However, if paying summer compensation in advance is within university policy, we question why the campus would include the advance within the housing allowance payment instead of classifying the payment in the payroll system as summer compensation. In addition, the policy in effect at the time limited housing allowances to $53,300 unless the president’s office approved an exception. A June 2004 letter speaks to a verbal approval obtained from an assistant vice president in the president’s office, but Los Angeles was not able to provide anything in writing to that effect. By choosing to pay summer compensation in advance, but categorizing it as a housing allowance payment that then exceeded housing allowance limits, the Los Angeles law school circumvented, if not violated, existing policy and obscured the nature of this professor’s compensation. Further, university policy should not have to specifically state that an individual is not to receive advance payments for work that California State Auditor Report 2006-103 2 may or may not occur in the future. Even if the employee agrees to repay the money if work is not performed, a promise that appears to have been made in this case, this does not adequately ensure that the university’s interests are protected because under various circumstances the campus may not be able to obtain repayment should that become necessary. In addition, in June 2005 the Los Angeles law school paid $7,460 to the professor to cover the cost of health insurance premiums and dental expenses, including a four-month advance payment of health insurance premiums, plus estimated taxes that he would have to pay for being reimbursed for those premiums. Reimbursement of dental expenses, estimated health insurance premiums, and estimated taxes were not part of the school’s agreement with the professor. As of April 2006, the president’s office indicates that it is reviewing this compensation arrangement. San Diego Included Questionable Forms of Compensation in a Vice Chancellor’s Sabbatical Pay Despite being on sabbatical for much of fiscal year 2004–05, San Diego’s vice chancellor of academic affairs (vice chancellor) continued to receive a $68,00 administrative stipend for a DDeessppiittee aa ppoolliiccyy tthhaatt ssttaatteess position she had vacated and also an $8,900 auto allowance. tthhaatt sseenniioorr mmaannaaggeerrss’’ In October 2003 the vice chancellor was appointed to acting ssaabbbbaattiiccaall ccoommppeennssaattiioonn chancellor of San Diego until the appointment of a new chancellor sshhaallll bbee bbaasseedd oonn tthheeiirr could be accomplished. The vice chancellor’s previous base salary aaddmmiinniissttrraattiivvee ssaallaarryy,, tthhee of $22,600 and auto allowance of $8,900 were continued and vviiccee cchhaanncceelllloorr aallssoo rreecceeiivveedd an additional administrative stipend of $68,00 was granted aa $$6688,,110000 ssttiippeenndd aanndd aann to compensate her for being acting chancellor. As indicated in $$88,,990000 aauuttoo aalllloowwaannccee the Introduction, a stipend is compensation for undertaking dduurriinngg tthhee ssaabbbbaattiiccaall.. temporarily assigned responsibilities that are outside the scope of an employee’s regular responsibilities and usually those of a higher- level position. In June 2004 the university completed its recruitment for a new chancellor at San Diego. In a July 2004 letter, the university’s former provost agreed to pay the vice chancellor $280,700 (both the $22,600 base salary and the $68,00 stipend) during her sabbatical, which was to begin at the start of the new chancellor’s appointment in August 2004 and end one year later in August 2005. Consequently, despite a policy that states that senior managers’ sabbatical compensation shall be based on their administrative salary, the vice chancellor received the 30 California State Auditor Report 2006-103 stipend throughout her sabbatical. The campus also allowed her to continue to receive her $8,900 auto allowance during the sabbatical. As a result of our inquiries, San Diego stated in an April 2006 letter to the president’s office that university policy is silent on whether sabbatical compensation would include either a stipend or an auto allowance; it pointed out, however, that special circumstances should be considered when evaluating these payments. San Diego noted that the vice chancellor traveled to and from San Diego to assist with administrative matters throughout her sabbatical. The campus also said that in 200 a base salary increase to $250,000 for the vice chancellor had been approved but deferred due to budget constraints and would have been received in September 2004 had she not been scheduled for a sabbatical. San Diego argued that it was therefore reasonable to view a significant portion of the stipend received during her sabbatical as the deferred compensation that she would have received had she not taken the sabbatical. San Diego also concluded that because the former provost’s July 2004 letter stated the sabbatical compensation as outlined was “in accordance with policy,” it would not be appropriate to question the payment of the stipend at this time. San Diego further concluded that in retrospect it would not seem appropriate to permit an auto allowance in the calculation of sabbatical compensation. Despite San Diego’s conclusion that it would not be appropriate to question the stipend payment, we found that the payment is questionable for a number of reasons. First, university policy should not have to specifically disallow every form of compensation that is not to be included in sabbatical pay. If a stipend or auto allowance is not part of the definition of an administrative salary, IItt wwaass kknnoowwnn tthhaatt tthhee vviiccee then it should not be included in sabbatical pay. In a discussion cchhaanncceelllloorr wwoouulldd nnoott bbee of administrative personnel that take administrative leave in lieu of rreettuurrnniinngg ttoo tthhee aaccttiinngg sabbatical, the university’s personnel manual indicates that cchhaanncceelllloorr ppoossiittiioonn aafftteerr administrative leave pay would include an administrative stipend hheerr ssaabbbbaattiiccaall.. TThheerreeffoorree,, if the individual will return immediately following the leave to wwee qquueessttiioonn wwhhyy tthhee the administrative position associated with the stipend. This same ccaammppuuss wwoouulldd ccoonnttiinnuuee principle would seem to apply to administrative personnel, such as ttoo ppaayy aa ssttiippeenndd tthhaatt iiss the vice chancellor, that take sabbatical. oosstteennssiibbllyy ffoorr ssoommeeoonnee ttoo aacctt iinn tthhee ppllaaccee ooff aa In this case, it was known that the vice chancellor would not be cchhaanncceelllloorr wwhheenn iitt hhaadd returning to the acting chancellor position after her sabbatical aallrreeaaddyy fifilllleedd tthhaatt ppoossiittiioonn.. because the campus had already appointed a chancellor. Therefore, we question why the campus would continue to pay a stipend that is ostensibly for someone to act in the place California State Auditor Report 2006-103 31 of a chancellor when it had already filled that position. As of April 2006, the president’s office indicates that it is currently evaluating the sabbatical pay provided to the vice chancellor to determine whether it was appropriate. Some University Campuses Violated Policy by Including Inappropriate Forms of Compensation in the Retirement Calculations of Certain Individuals By improperly including compensation such as housing and auto allowances in retirement-covered compensation, the university risks inflating retirement payments for its employees. Retirement payments are calculated based on a percentage of the average of an employee’s 36 highest monthly salary payments, less certain contributions, such as Social Security. The percentage is based on the employee’s service credit and age at retirement. The university’s retirement plan and accounting manual specify that certain forms of compensation may not be included in retirement-covered compensation. As shown in the text box, regular base pay, most types Retirement-Covered Compensation of differential pay, administrative stipends, and several types of leave are included in retirement- Includes: covered compensation, while other types of • Regular base pay compensation, including housing and auto • Differential pay (except on-call pay) allowances, are specifically excluded. In addition, • Administrative stipends the IRS code sets a limit for annual earnings • Sabbatical leave pay on which retirement benefits may be based. For employees joining the university’s retirement • Vacation, sick, and military leave pay plan on or after July 994, the limit is $205,000; Excludes: for those who joined the plan before July 994, • Overtime the limit is $305,000. • Additional teaching and research pay • Housing and auto allowances We identified four instances from our sample of • Consulting fees and honoraria 00 highly paid employees in which excluded types • Senior management severance pay of compensation were improperly included in an employee’s retirement-covered compensation. Two • Relocation incentives officials at Riverside, the vice chancellor of research • Bonuses and incentive awards and the executive vice chancellor and provost, • Terminal vacation pay received housing allowances of $53,300 each in Source: University of California Retirement Plan and fiscal year 2004–05 and, according to data contained Accounting Manual. within the CPS, the allowances were included in the individuals’ retirement-covered compensation. Another example is the men’s basketball coach at Irvine, who received $4,800 in auto allowance payments and $42,373 in profit associated with basketball camps he coordinated on campus. In the CPS, Irvine classified 32 California State Auditor Report 2006-103 the auto allowance as regular pay and the basketball camp profits as a stipend and included both items in the coach’s retirement-covered compensation. Finally, $5,53 in auto IIrrvviinnee ccllaassssiififieedd aann aauuttoo allowance payments received by the former acting chancellor at aalllloowwaannccee aass rreegguullaarr ppaayy the University of California at Santa Cruz were classified as aanndd bbaasskkeettbbaallll ccaammpp a stipend and were inappropriately included in his retirement- pprroofifittss aass aa ssttiippeenndd aanndd covered compensation. iinncclluuddeedd bbootthh iitteemmss iinn aa ccooaacchh’’ss rreettiirreemmeenntt-- In each of these examples, the respective university campus ccoovveerreedd ccoommppeennssaattiioonn.. agreed that the compensation items should not have been included. The university’s retirement policy director (retirement director) also agreed, indicating that his initial assessment was that these items do not appear to be appropriate forms of retirement-covered compensation. The retirement director said that he would pursue this matter further with the campuses. Because only the highest 36 consecutive monthly salary payments enter into the university retirement calculation and because of the federally imposed limits described earlier, amounts inappropriately included in an employee’s retirement- covered compensation do not always impact the eventual retirement benefit the employee receives. Except for possibly the coach (depending on the results of the university’s retirement policy review), the employees’ salaries in the examples above already exceeded the $205,000 limit. Therefore, under current policy their retirement benefits would not have been affected by the inclusion of additional types of compensation, appropriate or not. However, the university is currently seeking approval from the IRS to remove the limits of $205,000 and $305,000 on retirement-covered compensation. Therefore, if not corrected, the amounts inappropriately included in retirement-covered compensation in the examples above could have an impact on these individuals’ retirement benefits in the future. In addition, the examples we found in our review are instructive because they indicate a lack of adequate control over the classification of retirement-covered compensation. According to the retirement director, the university occasionally audits data input into the retirement membership system and issues retirement-related guidance when it becomes aware of practices inconsistent with policy. For example, the university auditor conducted audits related to retirement plan membership in November 2003 and the compensation of retired annuitants in September 2004. According to an audit director, the California State Auditor Report 2006-103 33 university auditor is currently conducting an audit of service credits, and plans on conducting an audit of retirement-covered compensation in fiscal year 2006–07. Also, in May 2004 the president’s office, in response to some campus administrative decisions that were inconsistent with retirement policy, issued a letter reminding university administrators that any liability incurred as a result of a deviation from retirement policy will be charged back to the appropriate location. However, the retirement director agreed that the university does not currently use data from campuses, which feed into the CPS and other corporate information systems, to determine on an annual or otherwise periodic basis whether campuses are complying with retirement policies. Rather, the university reviews each individual’s retirement- covered compensation in detail when the employee retires if its information system related to retirement generates any warning messages concerning an individual’s retirement-covered compensation. For example, the retirement director indicated that the coach’s compensation generated three warning messages that would have required a review. Conducting a detailed review when an individual retires is certainly appropriate, but this practice would not catch mistakes until years later. A more effective approach would find errors up front to avoid perpetuating them into the retirement-covered compensation of other employees. For instance, had the HHaadd tthhee uunniivveerrssiittyy university reviewed the data contained in the CPS for housing rreevviieewweedd tthhee ddaattaa allowances being included in retirement-covered compensation, ccoonnttaaiinneedd iinn tthhee CCPPSS ffoorr it would have found the two examples we uncovered at hhoouussiinngg aalllloowwaanncceess,, iitt Riverside. It also would have found an additional total of aallssoo wwoouulldd hhaavvee ffoouunndd $52,560 in housing allowances included as retirement-covered aann aaddddiittiioonnaall $$5522,,556600 compensation for five different employees at Riverside and iinncclluuddeedd aass rreettiirreemmeenntt-- another $3,875 of the same at Berkeley. ccoovveerreedd ccoommppeennssaattiioonn aatt RRiivveerrssiiddee aanndd aannootthheerr However, the overly vague classifications and the misclassification $$1133,,887755 aatt BBeerrkkeelleeyy.. of compensation in the CPS, as discussed earlier, would have limited the university’s use of CPS data as an oversight tool. If the university were to improve its oversight of retirement- covered compensation, it would need to standardize campuses’ use of compensation classifications, ensuring that only certain defined codes are used for retirement-covered compensation. The university would also have to eliminate or severely restrict the use of classifications, such as “By Agreement,” that do not clearly express the exact nature of the compensation. 3 California State Auditor Report 2006-103 THE UNIVERSITY CONSISTENTLY VIOLATED POLICIES THE REGENTS ESTABLISHED TO ENSURE ADEQUATE REVIEW OF EXECUTIVE COMPENSATION The regents’ policies require them to approve all forms of compensation for officers of the university. Although the university consistently complied with this policy by obtaining regents’ approval of each officer’s salary, it did not always submit officers’ nonsalary compensation, such as housing and auto allowances, to the regents for consideration as required by university policy. Further, even though the president’s office prepares an annual report on compensation, it did not submit BBeeccaauussee tthhee rreeggeennttss aarree the fiscal year 2003–04 and 2004–05 reports to the regents rreeqquuiirreedd ttoo aapppprroovvee until March 2006. Because of their lateness and because of nnoonnssaallaarryy ccoommppeennssaattiioonn inaccuracies we found, the usefulness of the reports is limited. oonnllyy ffoorr oofffificceerrss,, tthheeyy Also, because the regents are required to approve nonsalary aarree nnoott iinnffoorrmmeedd ooff compensation only for officers, they are not informed of aalllloowwaanncceess pprroovviiddeedd allowances provided to other university employees whose ttoo ootthheerr uunniivveerrssiittyy salaries they must approve. Consequently, we question eemmppllooyyeeeess wwhhoossee ssaallaarriieess whether the regents’ and the university’s policies provide tthheeyy mmuusstt aapppprroovvee.. the transparency necessary to ensure effective oversight of compensation by the regents. Summary of the University’s Disclosure Policies The regents’ policies require them to approve all forms of compensation for officers of the university, including the university president, senior vice presidents, vice presidents, associate vice presidents, and assistant vice presidents; chancellors and vice chancellors; laboratory directors and deputy directors; hospital directors, university auditor, and controller; and principal officers of the regents, including the treasurer, general counsel, and secretary. In addition, regents approve rates of compensation and subsequent changes in rates of compensation for other university administrators with salaries of at least $68,000. This threshold for regents’ approval does not apply to academic employees unless they hold administrative titles as well. However, the regents did not and still do not have to approve nonsalary compensation for any employee who is not an officer. Earlier this year, the regents approved a new pay structure authorizing the president to raise the salaries of university employees, other than the university’s top 32 officers, within broad salary ranges without prior approval of the regents if individual salary increases do not exceed 5 percent and if total salary remained within the salary budget. California State Auditor Report 2006-103 3 The full Board of Regents is required to meet in open session when taking final action on compensation for specified officers of the university. However, the regents’ finance or compensation committee may consider and recommend compensation for these officers in closed session. The regents are not required to meet in open session when taking final action on compensation for other university employees. The university’s compensation disclosure survey response presented in Appendix B shows the methods it uses to disclose employee compensation. The University Violated Policy by Not Disclosing All Forms of Officers’ Compensation Although the university consistently obtained regents’ approval for the salaries of officers and other employees at the levels required in policy, it did not consistently disclose officers’ nonsalary compensation to the regents as required by university policy. To test the university’s disclosure practices for employees receiving compensation in fiscal year 2004–05, we reviewed regents’ minutes for a sample of 20 university employees, including 0 officers, chosen from the 00 university employees listed in Appendix A. We determined whether salary and nonsalary compensation provided to these 20 university employees was disclosed to the regents when their salaries were approved as required by university policy. Of the 20 employees, the university obtained regent approval of salaries for all officers and for any other university employee whose salary exceeded the appropriate threshold. In addition, for the 0 officers in our sample, the university appropriately obtained approval from the regents for four relocation allowances and, in one instance, an increased retirement benefit. However, for these 0 officers, the university violated its executive compensation policy by not disclosing to the FFoorr 1100 oofffificceerrss wwee rreevviieewweedd,, regents a total of eight auto allowances, four housing allowances tthhee uunniivveerrssiittyy vviioollaatteedd iittss (two related to one officer), two transfers of sabbatical credits, eexxeeccuuttiivvee ccoommppeennssaattiioonn and an acceleration of university-provided health insurance ppoolliiccyy bbyy nnoott ddiisscclloossiinngg contributions at the time the regents considered the individuals’ ttoo tthhee rreeggeennttss eeiigghhtt aauuttoo appointments. The university’s Office of the General Counsel aalllloowwaanncceess,, ffoouurr hhoouussiinngg (general counsel) agreed that such allowances “should have aalllloowwaanncceess,, ttwwoo ttrraannssffeerrss been disclosed to the Board of Regents at the time the Office of ooff ssaabbbbaattiiccaall ccrreeddiittss,, aanndd the President was seeking approval of compensation for those aann aacccceelleerraattiioonn ooff hheeaalltthh individuals.” In addition, the general counsel stated that under iinnssuurraannccee ccoonnttrriibbuuttiioonnss.. university policy “every element [of compensation] should be reported [to the regents] at the time approval is sought.” 36 California State Auditor Report 2006-103 In one instance, the president of the university agreed to grant an incoming university provost a housing allowance TThhee pprreessiiddeenntt ooff tthhee of $25,000 and then, during a regents’ meeting less than a uunniivveerrssiittyy aaggrreeeedd ttoo ggrraanntt week later, failed to disclose it. In a June 2004 letter to the aann iinnccoommiinngg uunniivveerrssiittyy incoming provost, the president stated that he had agreed on pprroovvoosstt aa hhoouussiinngg February 7, 2004, to provide her a $25,000 housing allowance aalllloowwaannccee ooff $$112255,,000000 to be paid over a period not to exceed four years. Because the aanndd tthheenn,, dduurriinngg aa rreeggeennttss’’ amount of the allowance exceeded the then-current maximum mmeeeettiinngg lleessss tthhaann aa wweeeekk amount established by university policy—$53,300—the llaatteerr,, ffaaiilleedd ttoo ddiisscclloossee iitt.. president later authorized an exception to policy to grant the allowance. In addition, he authorized an exception to policy to provide the incoming provost temporary housing in Oakland for six months or until she made a permanent decision about her living arrangements (policy limits this benefit to one month). On February 23, 2004, six days after the president had agreed to provide the provost with the above-mentioned items, he proposed a base salary of $380,000 for the incoming provost to the regents. Although this represented a 4 percent increase in salary and a significant increase over the previous university provost’s salary, there is no documentation that the regents, who were responsible to make the salary approval decision, were ever told about either the housing allowance or the temporary housing allowance features of the compensation package. The regents approved the $380,000 salary the president recommended; the provost received the $380,000 salary and both housing allowances. The university provided the following statement in regard to this example: “The UC President advised that the $25,000 was not a housing allowance, but was a relocation allowance under the faculty housing assistance program.4 He has acknowledged that although it is his recollection that the Senior Vice President-Business & Finance had disclosed the relocation allowance of $25,000 for the provost to the board committee considering her compensation, the practice at that time was not to include all elements of compensation in the documents provided and that the disclosure may have been in informal conversation with some but not all of The Regents involved. He noted that he has personally committed to and already begun implementation of disclosure of all elements of compensation in each and every case where The Regents 4 For the purposes of the audit, we defined payments under this program, which is known as the Faculty Recruitment Allowance Program, as housing allowances. California State Auditor Report 2006-103 3 are called upon for approval and that UC is developing the processes and documentation standards to fulfill this commitment in the future.” Information about salary and nonsalary compensation to officers was retroactively provided to the regents in the university’s annual report on compensation. However, the president’s office did not TThhee pprreessiiddeenntt’’ss oofffificcee present the annual reports for fiscal years 2003–04 and 2004–05 to ddiidd nnoott pprreesseenntt tthhee the regents until March 2006, and the reports included a number aannnnuuaall rreeppoorrttss ffoorr fifissccaall of inaccuracies. In the case of the incoming university provost yyeeaarrss 22000033––0044 aanndd described earlier, it was not until March 2006, more than two years 22000044––0055 ttoo tthhee rreeggeennttss after her appointment and salary were approved by the regents and uunnttiill MMaarrcchh 22000066,, aanndd more than four months after she resigned from the university, that tthhee rreeppoorrttss iinncclluuddeedd aa the regents were informed of the now-former provost’s housing nnuummbbeerr ooff iinnaaccccuurraacciieess.. allowances in a footnote to the university’s fiscal year 2004–05 annual report on compensation. Further, the report that was eventually presented to the regents inaccurately stated that while in office the provost received the $25,000 housing allowance in 48 installments of $2,600 each. In fact, she received it as a lump- sum payment of $25,000 in fiscal year 2004–05. In addition, the report incorrectly stated that the provost did not receive an auto allowance, when she actually received an annual auto allowance of $8,96. The report also failed to note that two officers at Riverside received Mortgage Origination Program loans of $675,000 and $350,000, respectively. However, we did not perform a review of the report’s accuracy to determine whether other errors exist. The inaccuracies and lateness of these annual compensation reports limit their usefulness because they do not provide timely and accurate notification to the regents of compensation matters. According to the president’s office, both of these reports were late “principally due to the fact that the HR [Human Resources] unit responsible for this report lost staff at the same time as their workload increased. This is also the unit responsible for coordinating and processing senior management actions, including hirings and retirements, which contributed to the significant increase in workload.” University Policy Does Not Require the Regents to Consider All Forms of Compensation Provided to Employees When Approving Salaries Since the regents are required to approve nonsalary compensation only for officers, they are not always informed of allowances provided as nonsalary compensation to other university employees 3 California State Auditor Report 2006-103 whose salaries they must approve. The six employees in our sample who were not officers but earned salaries exceeding the level requiring regent approval, all received some form of nonsalary compensation. Although university policy does not mandate disclosure of the compensation of employees who are not officers, five of these six employees were provided significant housing and/or relocation allowances ranging from $00,000 to $270,000. The president’s office did not disclose these allowances to the regents when they approved four of the five employees’ salaries. Providing the regents with details about all compensation these individuals receive would allow the transparency necessary to ensure effective oversight. In other instances, spouses of employees were granted permanent or temporary academic appointments that the university funded. For instance, in a letter to an incoming vice chancellor, Riverside agreed to loan $6,800 in permanent funding to the College of Humanities, Arts, and Social Sciences for his wife’s appointment as a professor in the Department of Anthropology. The $6,800 was intended to fund her salary, benefits, and support costs. Although the university indicates that the hiring of a spouse or partner is an accepted practice at most private-sector corporations and other academic institutions, there is an associated cost with this practice that the regents may consider relevant. The president’s office indicates that it is implementing new compensation disclosure practices to provide more information to the regents when they review salaries. Specifically, the university is developing a form to disclose detailed information TThhee pprreessiiddeenntt’’ss oofffificcee about all forms of compensation, including salary and other iinnddiiccaatteess tthhaatt iitt iiss cash payments, benefits and perquisites, one-time payments iimmpplleemmeennttiinngg nneeww and reimbursements, future benefits, and other compensation, ccoommppeennssaattiioonn ddiisscclloossuurree as part of the action item presented to the regents at the time pprraaccttiicceess ttoo pprroovviiddee mmoorree of an employee’s appointment. This form, which would be iinnffoorrmmaattiioonn ttoo tthhee rreeggeennttss completed for all officers and administrative employees earning wwhheenn tthheeyy rreevviieeww ssaallaarriieess.. salaries in excess of a specific threshold, would allow the regents to be informed about all forms of compensation an employee is receiving or will be receiving when they are asked to approve the individual’s compensation. The president’s office states that this form would not be completed for faculty who hold only academic titles, which is consistent with the regents’ current practice of approving compensation for highly paid faculty only if they hold both academic and administrative titles. California State Auditor Report 2006-103 3 OUR SURVEY OF COMPENSATION PRACTICES AT COMPARABLE UNIVERSITIES SHOWED THAT THEY GENERALLY DID NOT DISCLOSE MORE INFORMATION THAN THE UNIVERSITY OF CALIFORNIA To compare the public disclosure policies of the University of California with those of comparable Universities We Surveyed institutions, we selected a sample of 5 universities and asked them to complete a survey. Although we Respondents: received a limited number of responses, and the California Institute of Technology ones we did receive were incomplete, our survey Duke University revealed that other universities do not disclose University of Illinois more information about employee compensation Massachusetts Institute of Technology than does the University of California. Of (including Lincoln Laboratory) the 5 universities to which we sent surveys, University at Buffalo, seven responded, including three public and four the State University of New York private institutions. Seven universities chose not to Stanford University respond, citing the short time frame within which University of Washington to complete the survey,5 the detail of information Nonrespondents: requested, and other campus priorities, while one University of Colorado at Boulder institution, the University of Wisconsin, provided only the salaries and benefits of its senior executives Harvard University along with information about the benefits available University of Michigan to executive staff (which discussed benefits that University of North Carolina would appear to be available to all employees, such University of Texas System as health insurance) and also referred us to its Web University of Virginia site for further information about its compensation University of Wisconsin practices. The University of California’s response and Yale University the seven universities’ responses are documented in Appendix B. The text box summarizes which of the 5 universities chose to respond. Most of the seven universities responding to our survey offered only limited information. However, the information about compensation disclosure practices that these seven universities provided did not reflect that they were more proactive than the University of California in disclosing compensation information to their governing boards or the public. All seven indicated whether they offered the compensation or benefit items we asked about to their employees, but only the Massachusetts Institute of Technology, the University at Buffalo, the State University of New York (SUNY Buffalo), and Duke University gave us partial information on the number of participants and annual expenditures on these items. 5 We requested responses by February 24, 2006, two weeks after we delivered the surveys. However, we accepted responses until April 4, 2006. 0 California State Auditor Report 2006-103 Although several universities responded that they proactively disclose certain compensation information to their governing boards, others said they make such information available to the public on request, in accordance with disclosure statutes. For example, Stanford University (Stanford), a private institution, indicated that it releases individual employee compensation on the IRS Form 990, which requires organizations that are exempt SSeevveerraall uunniivveerrssiittiieess from income tax to disclose the compensation of current officers, rreessppoonnddeedd tthhaatt tthheeyy directors, trustees, and key employees. Stanford also indicated that a pprrooaaccttiivveellyy ddiisscclloossee committee of its board of trustees approves the salaries and benefits cceerrttaaiinn ccoommppeennssaattiioonn of the most senior and highly compensated faculty members and iinnffoorrmmaattiioonn ttoo tthheeiirr employees. Some universities post compensation information on ggoovveerrnniinngg bbooaarrddss;; ootthheerrss their Web sites or in their annual reports. SUNY Buffalo stated ssaaiidd tthheeyy mmaakkee ssuucchh that it provides electronic disclosure to its board on most types of iinnffoorrmmaattiioonn aavvaaiillaabbllee compensation and benefits for individual employees. ttoo tthhee ppuubblliicc oonn rreeqquueesstt,, iinn aaccccoorrddaannccee wwiitthh In contrast, the University of California responded more ddiisscclloossuurree ssttaattuutteess.. completely to our survey, withholding only certain expenditure and participation information. The university did provide more detail on its disclosure practices, which we discussed earlier in this section. In general, the university indicated that it did not proactively disclose details about individuals’ compensation and benefits, but it noted that most of this information would be released in response to a Public Records Act request. RECOMMENDATIONS To improve its ability to monitor campus compliance, the president’s office needs to issue clear directives prescribing consistent use of the CPS. These directives should include a requirement that campuses consistently classify compensation into standard categories that best describe the compensation provided to employees. Also, the president’s office should standardize the categories that can be included in retirement-covered compensation and restrict the use of classifications, such as “By Agreement,” that are too vague to allow the president’s office to ensure that the compensation complies with university policy. The president’s office should consider developing additional automated controls and edits within the CPS, such as only allowing the entry of information considered valid for the field in question or ensuring that expenditures are charged to the proper fund, to help avoid the possibility of errors. California State Auditor Report 2006-103 1 To preserve the integrity of the compensation policies it issues, the president’s office needs to limit the number of exceptions to policy it allows. This objective could be accomplished by the regents requiring the university to track and annually report exceptions to compensation policy that the president, provost, vice chancellor of academic affairs, campus chancellors, and other university officials grant during a fiscal year and provide justification for each exception. To preserve the integrity of the compensation policies it issues, the president’s office needs to improve its oversight of campuses’ compliance with those policies. One mechanism it should use to improve oversight is to annually identify unauthorized exceptions to policy, such as housing and relocation allowances paid above allowable limits and auto allowances being granted to individuals who do not qualify. The president’s office should determine if it is appropriate to require repayment of university funds for the instances we identified in which a university employee received compensation in violation of university policy, and if so, develop a repayment plan with each employee. To eliminate inappropriate compensation included in employees’ retirement earnings, the president’s office should remove the amounts we identified from the employees’ retirement earnings and establish a mechanism to detect, on at least an annual basis, compensation that campuses have incorrectly classified as retirement covered. To increase transparency as it relates to the compensation of highly paid university employees, the regents should require the president’s office to disclose all forms of compensation for university officers and for all employees whose compensation exceeds an established threshold. This disclosure should occur when the regents approve the employees’ salaries and at least annually in a report to the regents. If the president’s office continues to submit its annual report on compensation to the regents, it should ensure that it is accurate and timely. 2 California State Auditor Report 2006-103 We conducted this review under the authority vested in the California State Auditor by Section 8543 et seq. of the California Government Code and according to generally accepted government auditing standards. We limited our review to those areas specified in the audit scope section of this report. Respectfully submitted, ELAINE M. HOWLE State Auditor Date: May 2, 2006 Staff: John Baier, CPA, Audit Principal Benjamin M. Belnap, CIA Gregory B. Harrison, CIA Jonnathon D. Kline Richard J. Lewis Jasdeep Uppal California State Auditor Report 2006-103 3 Blank page inserted for reproduction purposes only.  California State Auditor Report 2006-103 APPenDIX A Compensation for the 100 Highest‑Paid University Employees From Funding Sources Made Up Entirely or Partially of State and Student Sources Table A on the following pages details the compensation of the 00 most highly paid University of California (university) employees during fiscal year 2004–05 and the funding sources for their compensation. As described in the Scope and Methodology, these 00 university employees received the most compensation from funding sources made up entirely or partially of state and student sources. Although other university employees may have received more compensation, the compensation they received from state and student sources was less than that of the 00 employees in Table A. For example, one coach earned almost $.6 million during fiscal year 2004–05, but none of his pay was funded from state or student sources. The compensation items listed in Table A for each employee are those contained in the university’s Corporate Personnel System (CPS). The campuses used approximately 800 different descriptions in fiscal year 2004–05, and many descriptions are not entirely clear, such as “SELF SUPPORT PROG-BYA 20,” which represents compensation for teaching additional classes. To help readers interpret the compensation descriptions included in Table A, we have included in Appendix E a list of the descriptions used by campuses and the equivalent categories we used to classify each compensation item. In addition, when we were able to obtain more specific information from the employees’ personnel files, the footnotes to Table A explain the nature of certain compensation items. For example, the university includes a wide range of compensation items in the “By Agreement” category, even though more specific categories exist. Further, we described other benefits or additional incentives provided to these employees, such as loans, research funding, or sabbatical credits for time at other universities, when our review of personnel files revealed them. California State Auditor Report 2006-103  We did not include in Table A some types of benefits or employment inducements that are standard to all employees or employees of a certain category. For instance, we did not include the payment of moving expenses, even if they occurred in fiscal year 2004–05, because this inducement is available to most new hires who are managers, professionals, or academic appointments. Also, university employees who are members of the senior management group are eligible for additional benefits, including salary continuation during disability and increased business travel accident insurance. Senior managers who hold academic titles do not qualify for the special severance pay but rather accrue sabbatical leave credits. However, as noted in Table A, some senior managers received exceptions to participate in the special severance pay plan as well as accrue sabbatical credits under their academic titles. Based on CPS data and information from the president’s office, we also list the life insurance provided to these individuals and note whether they participate in the special severance pay plan, which is funded with university contributions. Finally, the president’s office and campuses reviewed the content of Table A and suggested changes to improve its accuracy. We made changes to Table A when they were able to provide us appropriate evidence to do so. As noted in the Scope and Methodology section, although we conducted procedures to ensure the accuracy of the data, we conclude that the data is of undetermined reliability. Specifically, we could not confirm that the data was complete. 6 California State Auditor Report 2006-103 TABLE A BERDAHL,ROBERT M CHANCELLOR’S IMMEDIATE OFFICE SENIOR MANAGEMENT GROUP Berkeley FORMER CHANCELLOR Federal, Grants,* Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY† $20,652 $213,513 $80,067 $3,495 $31,2 R Total $20,62 $213,13 $0,06 $3, $31,2 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Due to an administrative oversight, Mr. Berdahl was informed during the recruitment process that he could participate in the Senior Management Severance Pay Plan (plan), despite the dual academic title, which prohibited his participation. Consequently, the university granted an exception to allow him to participate in the plan. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Provided with a leased vehicle for business use until November 2004. Received a $165,000 Mortgage Origination Program loan at an interest rate of 3.8 percent in April 2004 (currently at 3.7 percent). Additional Incentives (Not Personal Compensation) Granted $10,000 for university-related travel and expenses during his sabbatical in fiscal year 2004-05, and each year thereafter until his retirement. Received $5,000 in research funding and scheduled to receive an additional $5,000 per year in fiscal year 2005-06 and 2006-07. † This compensation was coded in the CPS as regular pay despite the fact that the former chancellor was on sabbatical starting in November 2004. His pay includes a $2,127 overpayment for which the campus indicates it has asked for reimbursement. He returned as a faculty member in January 2006 at a salary of $130,900 with approval to receive two months of summer salary for three years. BIRGENEAU,ROBERT J CHANCELLOR’S IMMEDIATE OFFICE SENIOR MANAGEMENT GROUP Berkeley CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $20,357 $210,459 $78,922 $3,445 $313,13 R RELOCATION INCENTIVE PYMT 6,338 65,519 24,570 1,073 ,00 EXEC AUTOMOBILE ALLOWANCE 7,160 — — — ,160 Total $33, $2, $103,2 $,1 $1,3 Other Benefits Because he was given an exception that allowed him to receive retirement benefits on his full salary rather than the federally imposed limit of $205,000, all of the cumulative total of lines marked with an “R” is considered relevant for the purpose of calculating his retirement. Employee receives a life insurance policy of $780,000. Exception to policy granted to allow participation in the Senior Management Severance Pay Plan. He also earns sabbatical credits. Received one and one-half years of sabbatical credit to account for sabbatical leave accrued at previous employment. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Received an exception to policy that allowed him to receive accelerated annuitant health and dental insurance contributions from the university. Additional Incentives (Not Personal Compensation) Received a commitment that the university would move his laboratory from previous employment location to the Berkeley campus. The university indicated no costs were incurred as of March 15, 2006. Offered $150,000 per year in discretionary research funding. Eligible for a Mortgage Origination Program loan when he steps down as chancellor. * These funding sources are the same as the “Federal and Other Grants and Contracts, Endowments, and Auxiliary Operations” funding sources shown in Tables 2 and 4 in the Audit Results. California State Auditor Report 2006-103  EDLEY,CHRISTOPHER SCHOOL OF LAW SENIOR MANAGEMENT GROUP Berkeley DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $18,200 $188,160 $70,560 $3,080 $20,000 R Total $1,200 $1,160 $0,60 $3,00 $20,000 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $560,000. Given an exception to policy to receive a $100,000 housing allowance in fiscal year 2003-04. Granted funds for a half-time position for his spouse for a period of up to three years, until a suitable position is found for her. Received a $1,000,000 Mortgage Origination Program loan at an interest rate of 3.6 percent in 2004. Additional Incentives (Not Personal Compensation) Granted a budget supplement of $100,000 per year for three years to bring faculty candidates to the law school. Granted a one-time incentive of $75,000 in discretionary research funds and promised $25,000 per year for summer salary or research purposes following his term as dean. Granted a short-term loan of an amount to be determined later and an allocation of $50,000 per year for three years to strengthen law school development activities. Allocated $50,000 per year for three years to strengthen administrative support for his position as dean. JONES,VAUGHAN FREDERIC MATHEMATICS ACADEMIC Berkeley PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $15,600 $161,280 $60,480 $2,640 $20,000 R SUMMER SESSION - RETIR — — 19,668 — 1,66 ADDL COMP-SUMMER RESEARCH 63,157 — — — 63,1 Total $, $161,20 $0,1 $2,60 $322,2 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $150,000 Mortgage Origination Program loan at an interest rate of 11.2 percent in 1985 (rate is currently 3.45 percent). Additional Incentives (Not Personal Compensation) Granted $500,000 in research funding to be paid out over a 10-year period, beginning in fiscal year 2004-05.  California State Auditor Report 2006-103 SHORTELL,STEPHEN M SCHOOL OF PUBLIC HEALTH SENIOR MANAGEMENT GROUP Berkeley DEAN Federal,Grants, Compensation Contracts,Etc. State Tuition Other Total REGULAR PAY $17,290 $178,752 $67,032 $2,926 $266,000 R UNEX PAYMENT-AMOUNT — — — 3,500 3,00 ADDL COMP-SUMMER RESEARCH 20,152 — — — 20,12 Total $3,2 $1,2 $6,032 $6,26 $2,62 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Granted $1,072,636 in additional support for Berkeley’s School of Public Health including debt forgiveness and renovation of space. Promised support for the return of three faculty positions in Berkeley’s School of Public Health. Granted $225,000 per year for five years to support Berkeley’s Center for Health Research. Granted $250,000 per year for five years in discretionary funds to launch new initiatives. Granted $50,000 per year to provide a salary for his research assistant while he is dean. GRIFFIN,PAUL A, DR GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Davis PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total OFF SCALE COMPENSATION $ 5,376 $ 55,574 $ 20,840 $ 910 $ 2,00 R REGULAR PAY* 3,932 40,656 15,246 666 60,00 R SABB. LEAVE-NOT IN RES 3,932 40,656 15,246 666 60,00 R ADDL COMP RESEARCH — — 31,889 — 31, ADDL COMP RES BYA — — 18,378 — 1,3 Total $13,20 $136,6 $101, $2,22 $23,6 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * $60,500 of the $121,000 he received during his sabbatical leave in fiscal year 2004-05 was miscoded in CPS as regular pay. California State Auditor Report 2006-103  HINSHAW,VIRGINIA S OFFICES OF CHANCELLOR/PROVOST SENIOR MANAGEMENT GROUP Davis PROVOST Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $16,166 $167,126 $62,672 $ 2,736 $2,00 R EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total $16,166 $16,126 $62,62 $11,62 $2,616 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $498,000. Granted an exception to participate in the Senior Management Severance Pay Plan after the president’s office incorrectly notified her that she was eligible for the program. This exception was granted nearly 20 months after her appointment as Provost and her account was credited retroactively. Also earns sabbatical credits. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. ROSENQUIST,C J* MEDICAL: DIAGNOSTIC RADIOLOGY ACADEMIC Davis PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total SEVERANCE-HLTH SCI COMP — — — $215,820 $21,20 REGULAR PAY $49,536 $36,086 $13,532 591 , R TERMINAL VACATION PAY 8,399 3,871 1,452 63 13, MED COMP PLAN SCALE 8 37,600 — — — 3,600 R HSCP BY AGREE-RET (T) 16,100 — — — 16,100 R MED COMP PLAN DIFF 21,100 — — — 21,100 HSCP BY AGREE (NO RET) 10,920 — — — 10,20 Total $13,6 $3, $1, $216, $1,00 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Retired on December 31, 2004. Recalled to active duty at the Davis Medical Center effective February 1, 2005, at 43 percent time. 0 California State Auditor Report 2006-103 VANDERHOEF,LARRY N OFFICES OF CHANCELLOR/PROVOST SENIOR MANAGEMENT GROUP Davis CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $18,246 $188,630 $70,736 $ 3,088 $20,00 R EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total $1,26 $1,630 $0,36 $12,00 $2,616 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $562,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had a $85,400 maintenance budget in fiscal year 2004-05. Additional Incentives (Not Personal Compensation) Received an administrative fund allocation of $31,100. CESARIO,THOMAS C COLLEGE OF MEDICINE SENIOR MANAGEMENT GROUP Irvine DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $18,967 $196,090 $73,534 $3,210 $21,01 R STIPEND* 6,500 67,200 25,200 1,100 100,000 R Total $2,6 $263,20 $,3 $,310 $31,01 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $584,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Although coded as a stipend, this compensation is actually Health Sciences Compensation Plan pay. California State Auditor Report 2006-103 1 CICERONE,RALPH J THE CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Irvine CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $18,176 $187,915 $70,468 $ 3,076 $2,63 R SEVERANCE PAY-EXECUTIVE — — — 152,492 12,2 TERMINAL VACATION PAY 2,739 28,321 10,620 464 2,1 PERSONAL USE OF AUTO 195 2,020 757 33 3,00 Total $21,110 $21,26 $1, $16,06 $,26 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $562,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had an $86,400 maintenance budget in fiscal year 2004-05, according to the university’s annual compensation report for fiscal year 2004–05. Additional Incentives (Not Personal Compensation) Granted an annual research allowance of $25,000. Provided an annual allocation from the administrative fund for official entertainment and other purposes ($31,100 in fiscal year 2004-05). CLAYMAN,RALPH V DEPARTMENT OF UROLOGY ACADEMIC Irvine PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR BASE $ 7,580 $ 78,362 $29,386 $1,283 $116,611 R HSCP NEGOTIATED 65,669 30,122 11,296 493 10,0 HLTH SCI Z (CONSULTING) — — — 33,200 33,200 HEALTH SCIENCE Z PAYMENT — — — 31,500 31,00 HSCP DIFF DPT 24,905 11,424 4,284 187 0,00 R HSCP DIFF COV 21,371 9,803 3,676 160 3,010 R HLTH SCI Z (TEACHING/CME) — — — 2,000 2,000 Total $11,2 $12,11 $,62 $6,23 $366,01 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. 2 California State Auditor Report 2006-103 CURRIM,IMRAN S GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Irvine PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $4,580 $47,348 $ 60,031 $ 775 $112,3 R ADD’L COMP-RESEARCH — 12,721 41,932 — ,63 SABBATICAL-FULL PAY 3,664 37,878 14,204 620 6,366 R ADD’L COMP-UNEX AMOUNT — — 51,800 — 1,00 Total $,2 $, $16,6 $1,3 $2,3 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. DOUGLASS,JOSEPH P ATHLETICS MANAGER AND SENIOR PROFESSIONAL Irvine HEAD COACH-INTERCOLLEGIATE ATHLETICS Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total STIPEND* — — $125,244 $42,373 $16,61 R REGULAR PAY — — 95,256 — ,26 R LUMP SUM PAYMENT — — — 200 200 Total — — $220,00 $2,3 $263,03 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Retains profits from basketball camps and receives free use of campus facilities. Eligible to retain all net income from athletic apparel contracts. Receives bonuses if team reaches or is invited to certain tournaments. Receives $1,500 for each men’s basketball player he recruits who subsequently graduates within five years. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Stipend includes $42,373 in basketball camp profits and regular pay includes a $4,800 automobile allowance; both amounts were included in retirement-covered compensation. California State Auditor Report 2006-103 3 JORION,PHILIPPE GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Irvine PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,035 $114,083 $ 58,215 $ 1,867 $1,200 R ADD’L COMP-RESEARCH — — 62,816 — 62,16 ADD’L COMP-UNEX AMOUNT — — 40,600 — 0,600 UNEX-AMOUNT* — — — 34,725 3,2 Total $11,03 $11,03 $161,631 $36,2 $323,31 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for teaching additional executive education classes and for teaching a class at the Berkeley campus. KIESTER,P DOUGLAS ORTHOPEDIC SURGERY ACADEMIC Irvine CLINICAL PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HLTH SCI Z (CONSULTING) — — — $150,000 $10,000 HSCP NEGOTIATED — — — 82,992 2,2 HSCP DIFF DPT — — — 54,912 ,12 R HSCP DIFF COV $ 958 — — 22,634 23,2 R REGULAR BASE 56,966 — — 21,538 ,0 R HEALTH SCIENCE Z PAYMENT 73,724 — — — 3,2 Total $131,6 — — $332,06 $63,2 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. LINSKEY,MARK E NEUROSURGERY ACADEMIC Irvine ASSOCIATE PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP NEGOTIATED — — — $424,112 $2,112 REGULAR BASE $4,796 $49,586 $18,595 812 3, R HEALTH SCIENCE Z PAYMENT — — — 30,000 30,000 HSCP DIFF COV — — — 22,100 22,100 R HSCP DIFFERENTIAL - 3 84 — — —  R Total $,0 $,6 $1, $,02 $0,0 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files.  California State Auditor Report 2006-103 POLICANO,ANDREW JOHN GRADUATE SCHOOL OF MANAGEMENT SENIOR MANAGEMENT GROUP Irvine DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $16,385 $169,400 $63,525 $ 2,773 $22,03 R FACULTY HOUSING ALLOWANCE* 530 5,477 2,631 91,363 100,001 Total $16,1 $1, $66,16 $,136 $32,0 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $552,000. Received a $375,000 Mortgage Origination Program loan at an interest rate of 3.6 percent in August 2004 (rate is currently 3.8 percent). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Consists of a $53,300 housing allowance and a $46,700 relocation incentive. SCOTT,CARLTON H GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Irvine PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $6,776 $70,056 $ 61,021 $1,147 $13,000 R ADD’L COMP-UNEX AMOUNT — — 60,000 — 60,000 ADD’L COMP-RESEARCH — — 47,146 — ,16 Total $6,6 $0,06 $16,16 $1,1 $26,16 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. SWANSON,JAMES M PEDIATRICS ACADEMIC Irvine PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR BASE $ 8,906 $92,070 $34,526 $ 30,837 $166,33 R HSCP DIFF DPT 34,240 — — 66,603 100,3 R HSCP DIFF DPT-A — — — 27,420 2,20 R HSCP DIFF COV — — — 13,699 13,6 R Total $3,16 $2,00 $3,26 $13, $30,301 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103  ABRAMS,NORMAN LAW SENIOR MANAGEMENT GROUP Los Angeles INTERIM DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $1,071 $11,071 $185,377 $ 181 $1,00 R SEVERANCE PAY-EXECUTIVE — — — 120,428 120,2 ADD’L COMP-RESEARCH 975 10,079 3,780 165 1, STIPEND 238 2,458 922 40 3,6 R Total $2,2 $23,60 $10,0 $120,1 $336, Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. ATKESON,ANDREW GRANGER ECONOMICS ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $13,650 $141,120 $52,920 $ 2,310 $210,000 R ADD’L COMP-RESEARCH — — — 60,667 60,66 Total $13,60 $11,120 $2,20 $62, $20,66 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $711,000 Mortgage Origination Program loan at an interest rate of 6.4 percent in 2000 (rate is currently 3 percent). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. BERNARDO,ANTONIO E GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles ASSOCIATE PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $10,465 $108,192 $ 40,572 $ 1,771 $161,000 R ADD’L COMP-RESEARCH — — 53,667 — 3,66 BY AGREEMENT PAYMENT* — — — 33,625 33,62 SELF SUPPORT PROG-BYA 120† — — 32,200 — 32,200 Total $10,6 $10,12 $126,3 $3,36 $20,2 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Allocated $5,000 for a research account and $2,000 for operating expenses. * This compensation was for executive education lectures. † This compensation was for an additional class taught beyond this professor’s required teaching load. 6 California State Auditor Report 2006-103 CARNESALE,ALBERT SENIOR MANAGEMENT GROUP Los Angeles CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $20,514 $212,083 $79,531 $3,472 $31,600 R EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $2,30 $212,03 $,31 $3,2 $32,16 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $632,000. Due to an administrative oversight, Mr. Carnesale was informed during the recruitment process that he could participate in the Senior Management Severance Pay Plan (plan), despite the dual academic title, which would have prohibited his participation. Consequently, the university granted an exception to allow him to participate in the plan. Also accrues sabbatical credits. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. CREEM,MITCHELL R VICE CHANCELLOR MEDICAL ASERVI SENIOR MANAGEMENT GROUP Los Angeles DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $152,775 — — $187,425 $30,200 R RELOCATION INCENT-SPTAX* 75,000 — — 75,000 10,000 NON EXCL MOVE EXP-PAY† 28,249 — — 26,700 , Total $26,02 — — $2,12 $,1 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $800,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Was guaranteed in his offer letter that he would receive an $83,160 “performance-based incentive bonus” for fiscal year 2004-05. The payments on this bonus do not appear above because they did not start until after fiscal year 2004-05. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Received a relocation allowance of $150,000 as an exception to the policy that limits such allowances to no more than 25 percent of base salary. † This compensation was for moving expenses and temporary housing allowances received from December 2004 through June 2005. The Los Angeles chancellor granted an exception to policy to extend the usual time frame for paying these allowances. California State Auditor Report 2006-103  ERICKSON, CHRISTOPHER L GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 8,775 $ 90,720 $ 34,020 $ 1,485 $13,000 R SELF SUPPORT PROG-BYA 120* — — 52,000 — 2,000 ADD’L COMP-RESEARCH 975 10,080 33,780 165 ,000 BY AGREEMENT PAYMENT† 7,605 — — 34,639 2,2 STIPEND — — 27,000 — 2,000 R Total $1,3 $100,00 $16,00 $36,2 $301,2 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Allocated $10,000 in his research account and a $2,000 operating expenses account. * This compensation was for teaching additional classes. † This compensation was for executive education lectures. GRADY,MARK LAW ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $14,625 $151,200 $56,700 $2,475 $22,000 R BY AGREEMENT HOUSE ALLOW 3,465 35,817 13,432 586 3,300 STIPEND* 2,275 23,520 8,820 385 3,000 R ADD’L COMP-RESEARCH 1,950 20,160 7,560 330 30,000 Total $22,31 $230,6 $6,12 $3,6 $33,300 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Sabbatical credits from former employer can be transferred and translated into university sabbatical credits. Additional Incentives (Not Personal Compensation) Granted a faculty support account of $2,500 per year. * Compensation for his appointment as the director of newly-established Center for Law and Economics.  California State Auditor Report 2006-103 HAYN,CARLA GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles ASSOCIATE PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total SELF SUPPORT PROG-REG* — — $ 86,400 — $6,00 R REGULAR PAY $3,744 $38,707 14,515 $634 ,600 R ADD’L COMP-RESEARCH 1,040 10,752 36,032 176 ,000 BY AGREEMENT PAYMENT† — — — 35,500 3,00 SELF SUPPORT PROG-BYA 120‡ — — 25,000 — 2,000 Total $, $, $161, $36,310 $22,00 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Allocated $3,000 in a research account and $2,000 in operating expenses account. * Compensation appearing in this line represents that portion of her $144,000 ($86,400 plus $57,600) base pay that was paid for classes she taught in the Fully Employed MBA program. † This compensation was for executive education lectures. ‡ This compensation was for teaching an additional class beyond the normal course load. LEVEY,GERALD S DEAN’S OFFICE-SCHOOL OF MEDICINE SENIOR MANAGEMENT GROUP Los Angeles DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $20,898 $216,048 $81,018 $ 3,537 $321,01 R HS-TEMP-DELTA-BYA-N — — — 207,000 20,000 EXEC AUTOMOBILE ALLOWANCE* — — — 8,916 ,16 Total $20, $216,0 $1,01 $21,3 $3,1 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $644,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Received a $350,000 Mortgage Origination Program loan at an interest rate of 6.4 percent in 1997 (rate is currently 3.95 percent). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Received an exception to university policy to receive an executive automobile allowance. California State Auditor Report 2006-103  LEWIN,DAVID GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles ASSOCIATE DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 8,645 $ 89,376 $33,516 $ 1,463 $133,000 R BY AGREEMENT PAYMENT* — — — 106,326 106,326 ADD’L COMP-RESEARCH 1,153 11,917 22,202 195 3,6 STIPEND 2,275 23,520 8,820 385 3,000 R SELF SUPPORT PROG-REG† — — 26,600 — 26,600 R ADD’L COMP-ADMINISTRATIVE 1,153 11,917 4,469 195 1,3 Total $13,226 $136,30 $,60 $10,6 $3,12 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) For being awarded a chair position, this individual received a three-course teaching load, was granted an allocation of $10,000 a year in research support, and was guaranteed three-ninths summer support (valued at $53,200 in fiscal year 2004-05). * This compensation was for 18 executive education lectures. † Compensation appearing in this line represents that portion of his $159,600 base pay that was paid for classes he taught in the Executive MBA program. LONGSTAFF,FRANCIS A GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 9,620 $ 99,456 $37,296 $1,628 $1,000 R ADD’L COMP-RESEARCH 23,228 27,627 10,360 452 61,66 SELF SUPPORT PROG-REG* — — 37,000 — 3,000 R BY AGREEMENT PAYMENT† 2,405 24,864 9,324 407 3,000 Total $3,23 $11, $3,0 $2, $23,66 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) For being awarded a chair position, this individual received a reduced teaching load from four to three classes; was granted an allocation of no less than $10,000 a year in research support; and was guaranteed three-ninths summer support (valued at approximately $61,667 in fiscal year 2004-05) for three years, with an additional three-year extension if performance is satisfactory. * Compensation appearing in this line represents that portion of his $185,000 base pay that was paid for classes he taught in the Fully Employed MBA program. † This compensation was for an additional class he taught at Berkeley during the summer. 60 California State Auditor Report 2006-103 MAMER,JOHN W GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,375 $117,600 $ 44,100 $1,925 $1,000 R SELF SUPPORT PROG-BYA 120* — — 42,500 — 2,00 ADD’L COMP-RESEARCH 1,264 13,067 24,344 214 3, STIPEND 650 6,720 2,520 110 10,000 R Total $13,2 $13,3 $113,6 $2,2 $266,3 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Allocated $10,000 in his research account and $2,000 in operating expenses account. * This compensation was for teaching classes beyond the required teaching load. MC LAREN,EDWARD A DENTISTRY MANAGER AND SENIOR PROFESSIONAL Los Angeles SENIOR DENTIST Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $151,992 $11,2 R BY AGREEMENT PAYMENT* — — — 92,135 2,13 Total — — — $2,12 $2,12 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for teaching continuing education classes. NETANEL,NEIL W LAW ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,700 $120,960 $45,360 $1,980 $10,000 R BY AGREEMENT HOUSE ALLOW* 8,340 86,217 32,332 1,411 12,300 ADD’L COMP-RESEARCH 21,528 15,800 5,925 259 3,12 Total $1,6 $222, $3,61 $3,60 $31,12 Other Benefits Received sabbatical credit for sabbatical accrued at the University of Texas and teaching at New York University. Offered reimbursement of up to $18,000 over a three-year period for out-of-pocket expenses related to special medicine and health insurance. Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Received a faculty support account in the amount of $2,500 per year. Reimbursed up to $2,000 each year for travel expenses in connection with his research travel. * As noted in the Audit Results, this housing allowance includes $75,000 for future summer research compensation. The campus claims it received an exception to university policy to advance these funds. California State Auditor Report 2006-103 61 NEUMAN,DANIEL M CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Los Angeles VICE CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $17,154 $177,341 $66,503 $2,903 $263,01 R EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $26,00 $1,31 $66,03 $2,03 $22,1 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $528,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Provided funding of $35,000 annually for research activities. PARK,NO-HEE DENTISTRY SENIOR MANAGEMENT GROUP Los Angeles DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $14,196 $146,765 $ 55,037 $2,402 $21,00 R BY AGREEMENT PAYMENT* — — 66,500 — 66,00 ADD’L COMP-RESEARCH 14,642 — — — 1,62 Total $2,3 $16,6 $121,3 $2,02 $2,2 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $438,000. Additional Incentives (Not Personal Compensation) Granted $85,000 in temporary funding for five years to hire a research collaborator. * This compensation was Health Sciences Compensation Plan pay. ROBINSON,ALAN G, MD MEDICINE-DEPARTMENT ADMINISTRATION ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HS-TEMP-DELTA-N — — — $144,343 $1,33 HS-TEMP-BASE-11MO-T $9,671 $ 99,985 $37,494 1,637 1, R HS-TEMP-ADDL BASE>.3-T — — — 52,077 2,0 R HS-TEMP-ADDL BASE TO.3-T — — — 44,593 ,3 R STIPEND 637 6,586 2,470 108 ,01 R Total $10,30 $106,1 $3,6 $22, $3,601 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. 62 California State Auditor Report 2006-103 RUMELT,RICHARD P GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $8,684 $ 89,779 $ 33,667 $1,470 $133,600 R ADD’L COMP-RESEARCH 1,206 12,469 41,787 204 ,666 SELF SUPPORT PROG-BYA 120 — — 33,400 — 33,00 SELF SUPPORT PROG-REG* — — 33,400 — 33,00 R Total $,0 $102,2 $12,2 $1,6 $26,066 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Compensation appearing in this line represents that portion of his $167,000 base pay that was paid for classes he taught in the Fully Employed MBA program. SARIN,RAKESH K GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles ASSOCIATE DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,720 $121,162 $45,436 $1,983 $10,301 R ADD’L COMP-ADMINISTRATIVE 2,604 26,925 10,097 441 0,06 SELF SUPPORT PROG-BYA 120* — — 36,060 — 36,060 STIPEND 1,040 10,752 4,032 176 16,000 R ADD’L COMP-RESEARCH 20,033 — — — 20,033 Total $3,3 $1,3 $,62 $2,600 $22,61 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for teaching an additional class beyond the required teaching load. SCHILL,MICHAEL H LAW SENIOR MANAGEMENT GROUP Los Angeles DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total BY AGREEMENT HOUSE ALLOW* $17,550 $181,440 $ 68,040 $2,970 $20,000 REGULAR PAY 17,279 178,640 66,990 2,924 26,33 R Total $3,2 $360,00 $13,030 $, $3,33 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $850,000 Supplemental Home Loan Program interest-only housing loan at an interest rate of 3 percent in 2004. Additional Incentives (Not Personal Compensation) Granted $50,000 annually in research support as dean for a maximum of five years. * Received an exception to policy to receive a housing allowance over the $53,300 limit. California State Auditor Report 2006-103 63 STABILE,BRUCE E SURGERY-GENERAL ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HS-TEMP-DELTA-N — — — $147,296 $1,26 HS-TEMP-BASE-11MO-T $7,578 $78,342 $29,378 1,282 116,0 R BY AGREEMENT PAYMENT — — — 27,525 2,2 HARBOR-OV/VA-N — — — 5,000 ,000 Total $, $,32 $2,3 $11,103 $26,01 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. STEVENSON,RICHARD G, III DENTISTRY ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total BY AGREEMENT PAYMENT* — — — $300,000 $300,000 HS-TEMP-BASE-11MO-T $ 5,428 $56,115 $21,043 919 3,0 R STIPEND — — 5,060 — ,060 R HS-TEMP-ADDL BASE TO.3-T 19,669 — — 3,934 23,603 R HS-TEMP-ADDL BASE>.3-T 12,051 — — 3,643 1,6 R HS-DELTA-Z-N 2,646 — — — 2,66 Total $3, $6,11 $26,103 $30,6 $30,0 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation is related to the teaching of continuing education classes. STONE,KATHERINE LAW ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $12,584 $130,099 $48,787 $2,130 $13,600 BY AGREEMENT HOUSE ALLOW 3,465 35,817 13,432 586 3,300 ADD’L COMP-RESEARCH 3,348 34,615 12,981 567 1,11 Total $1,3 $200,31 $,200 $3,23 $2,11 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Sabbatical credits from former employer can be transferred and translated into university sabbatical credits. Additional Incentives (Not Personal Compensation) Granted an annual research, conference, and travel expense fund of $10,000. 6 California State Auditor Report 2006-103 TABBUSH,VICTOR C GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total SELF SUPPORT PROG-REG* — — $135,000 — $13,000 R BY AGREEMENT PAYMENT† $28,980 — — $52,801 1,1 SELF SUPPORT PROG-BYA 120‡ — — 45,000 — ,000 STIPEND 50,000 — 10,800 — 60,00 R Total $,0 — $10,00 $2,01 $322,1 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * As Director of Los Angeles’ Fully Employed MBA program (program), this compensation is his regular salary funded 100 percent from program funds. † This compensation was for executive education lectures. ‡ This compensation was for additional teaching beyond the required teaching load. TANG,CHRISTOPHER SIU GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $12,642 $130,704 $ 49,014 $2,140 $1,00 R ADD’L COMP-RESEARCH 1,405 14,523 48,668 238 6,3 SELF SUPPORT PROG-BYA 120* — — 37,500 — 3,00 Total $1,0 $1,22 $13,12 $2,3 $26,3 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Awarded an allocation of $10,000 per year in research funding for being named to a chair position in the business school. For being awarded a chair position, he was granted a three course teaching load rather than the four that others have. * This compensation was for additional Executive MBA program classes he taught. California State Auditor Report 2006-103 6 TRUEMAN,BRETT MICHAEL GRADUATE SCHOOL OF MANAGEMENT ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $8,741 $ 90,371 $ 33,889 $1,479 $13,0 R ADD’L COMP-RESEARCH 1,214 12,551 42,062 205 6,032 SELF SUPPORT PROG-BYA 120* — — 33,620 — 33,620 SELF SUPPORT PROG-REG† — — 33,620 — 33,620 R BY AGREEMENT PAYMENT‡ — — — 1,463 1,63 Total $, $102,22 $13,11 $3,1 $2,21 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Allocated $5,000 in his research account and a $2,000 operating expenses account. * This compensation was for additional teaching in the program beyond the required teaching load. † Compensation appearing in this line represents that portion of his $168,100 base pay that was paid for classes he taught in the Fully Employed MBA program. ‡ This compensation was for executive education lectures. VINUELA,FERNANDO RADIOLOGICAL SCIENCES ACADEMIC Los Angeles PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HS-TEMP-DELTA-N $165,406 — — $189,208 $3,61 HS-TEMP-BASE-11MO-T 9,805 $101,367 $38,013 1,659 10, R HS-TEMP-ADDL BASE>.3-T 52,067 — — — 2,06 R HS-TEMP-ADDL BASE TO.3-T 42,475 — — — 2, R Total $26,3 $101,36 $3,013 $10,6 $600,000 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. TOMLINSON-KEASEY,CAROL A CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Merced CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — $253,600 — — $23,600 R EXEC AUTOMOBILE ALLOWANCE $8,916 — — — ,16 Total $,16 $23,600 — — $262,16 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had a $35,700 maintenance budget in fiscal year 2004-05. Additional Incentives (Not Personal Compensation) Allocated an annual administration fund for official entertainment and other purposes, which for fiscal year 2004-05 was $21,400. 66 California State Auditor Report 2006-103 BERGGREN,MARIE N President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office INTERIM TREASURER Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $223,300 $223,300 R LOCAL EMPLOYEE AWARD* — — — 108,644 10,6 Total — — — $331, $331, Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $448,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Granted an annual allowance of 21 vacation days and one personal day rather than the 18 days of vacation a year incoming staff members normally accrue. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This is a performance bonus the regents approved for employees in the university’s Office of the Treasurer. BIRELY,JOHN H President’s LABORATORY MANAGEMENT SENIOR MANAGEMENT GROUP Office ASSOCIATE VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $284,083 $2,03 R RELOCATION INCENTIVE PYMT — — — 22,776 22,6 Total — — — $306, $306, Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $560,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103 6 BLAGDEN,ROBERT B President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office MANAGING DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $220,000 $220,000 R LOCAL EMPLOYEE AWARD* — — — 54,067 ,06 Total — — — $2,06 $2,06 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $440,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This is a performance bonus the regents approved for employees in the university’s Office of the Treasurer. BOLAND,LYNN M President’s HUMAN RESOURCES & BENEFITS MANAGER AND SENIOR PROFESSIONAL Office CHIEF NEGOTIATOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $140,000 $10,000 R EMPLOYEE HOUSING ALLOWANCE* — — — 66,326 66,326 BY AGREEMENT PAYMENT — — — 20,000 20,000 STIPEND — — — 18,057 1,0 R Total — — — $2,33 $2,33 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * According to information contained in the personnel file for this individual, this compensation was reimbursement for housing, car, subsistence, and other expenses associated with an assignment at one of the university’s national laboratories. 6 California State Auditor Report 2006-103 DARLING,BRUCE B President’s UNIVERSITY AFFAIRS SENIOR MANAGEMENT GROUP Office SENIOR VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 8,743 $90,384 $33,894 $135,980 $26,001 R EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $1,6 $0,3 $33, $13,0 $2,1 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $540,000. Received a $573,750 Mortgage Origination Program loan at an interest rate of 6.5 percent in 1997 (rate is currently 3.7 percent). The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($20,700 in fiscal year 2004-05), according to the university’s annual compensation report for fiscal year 2004-05. DRAKE,MICHAEL VINCENT President’s OFFICE OF HEALTH AFFAIRS SENIOR MANAGEMENT GROUP Office VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $27,795 $105,799 $39,675 $176,732 $30,001 R EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $36,11 $10, $3,6 $16,32 $3,1 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Participates in the Senior Management Severance Pay plan as an exception to policy, according to the university’s annual compensation report for fiscal year 2004–05. Appointed chancellor of University of California, Irvine, effective July 1, 2005. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($4,900 in fiscal year 2004-05), according to the university’s annual compensation report for fiscal year 2004-05. California State Auditor Report 2006-103 6 DYNES,ROBERT C President’s OFFICE OF THE PRESIDENT SENIOR MANAGEMENT GROUP Office PRESIDENT OF THE UNIVERSITY Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 9,628 $99,540 $37,328 $248,504 $3,000 R EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $1, $,0 $3,32 $2,0 $03,16 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $792,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had a $31,150 maintenance budget in fiscal year 2004-05, according to the university’s annual compensation report for fiscal year 2004–05. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($46,600 in fiscal year 2004-05), according to the university’s annual compensation report for fiscal year 2004-05. Receives a driver for work-related transportation. FOLEY,S ROBERT, JR President’s LABORATORY MANAGEMENT OFFICE SENIOR MANAGEMENT GROUP Office VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $356,033 $36,033 R EXEC AUTOMOBILE ALLOWANCE $8,916 — — — ,16 Total $,16 — — $36,033 $36, Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $702,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Received an $850,000 Mortgage Origination Program loan at an interest rate of 3.6 percent in 2004 (rate is currently 3.8 percent). Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($5,100 in fiscal year 2004-05), according to the university’s annual compensation report for fiscal year 2004-05. 0 California State Auditor Report 2006-103 GALLIGANI,DENNIS J President’s STUDENT ACADEMIC SERVICES SENIOR MANAGEMENT GROUP Office ASSOCIATE VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $7,280 $75,268 $ 28,225 $62,567 $13,30 R SEVERANCE PAY-EXECUTIVE — — 150,645 — 10,6 TERMINAL VACATION PAY 835 8,636 3,238 141 12,0 Total $,11 $3,0 $12,10 $62,0 $336,3 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $348,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. GREENWOOD,M.R.C. President’s ACADEMIC AFFAIRS SENIOR MANAGEMENT GROUP Office PROVOST AND SENIOR VICE PRESIDENT Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 7,410 $76,608 $28,728 $267,254 $30,000 R RELOCATION INCENTIVE PYMT* — — — 125,000 12,000 NON EXCL MOVE EXP-PAY — — — 6,153 6,13 EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $16,326 $6,60 $2,2 $3,0 $20,06 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $762,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Received a $559,150 Mortgage Origination Program loan at an interest rate of 3.6 percent in 2004 (paid off in January 2006). Received 6 months of temporary housing assistance as an exception to policy, at a cost of $17,950 according to the president’s office. Provided with transportation between Davis and Oakland on an as-needed basis. Received sabbatical credits for unused sabbatical leave. Granted three months paid administrative leave by former university president at time of her choosing. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($14,800 in fiscal year 2004-05). Granted research support for two years after her resignation as provost. * This relocation incentive payment was actually a housing allowance that required the granting of an exception to university policy. California State Auditor Report 2006-103 1 GURTNER,WILLIAM H President’s CLINICAL SERVICES DEVELOPMENT SENIOR MANAGEMENT GROUP Office VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $395,000 $3,000 R BY AGREEMENT PAYMENT* — — — 75,000 ,000 EXEC AUTOMOBILE ALLOWANCE $3,715 — — — 3,1 Total $3,1 — — $0,000 $3,1 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $792,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($5,200 in fiscal year 2004–05), according to the university’s annual compensation report for fiscal year 2004–05. * This compensation is incentive pay authorized by the university president (as authorized by the Board of Regents on December 4, 1995). HOLST,JAMES E President’s OFFICE OF THE GENERAL COUNSEL SENIOR MANAGEMENT GROUP Office GENERAL COUNSEL AND VP Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 9,422 $97,406 $36,527 $146,544 $2, R EXEC AUTOMOBILE ALLOWANCE 6,333 — — — 6,333 Total $1, $,06 $36,2 $16, $26,232 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $580,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($8,100 in fiscal year 2004–05), according to the university’s annual compensation report for fiscal year 2004–05. 2 California State Auditor Report 2006-103 MULLINIX,JOSEPH PHILIP President’s BUSINESS & FINANCE SENIOR MANAGEMENT GROUP Office SENIOR VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,375 $117,600 $44,100 $176,925 $30,000 R BYA WITH FIXED TAXES* — — — 20,000 20,000 RELOCATION INCENTIVE PYMT — — — 2,250 2,20 EXEC AUTOMOBILE ALLOWANCE 8,916 — — — ,16 Total $20,21 $11,600 $,100 $1,1 $31,166 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $700,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($10,400 in fiscal year 2004–05), according to the university’s annual compensation report for fiscal year 2004–05. * This compensation is a performance award to be granted annually based on an assessment from the university president. ODELL,JAMES NELLIS President’s OFFICE OF THE GENERAL COUNSEL SENIOR MANAGEMENT GROUP Office MANAGING COUNSEL Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $5,145 $53,188 $19,946 $ 80,020 $1,2 R SEVERANCE PAY-EXECUTIVE — — — 147,498 1, TERMINAL VACATION PAY 869 8,988 3,371 13,522 26,0 Total $6,01 $62,16 $23,31 $21,00 $332, Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $318,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Received a $400,000 Mortgage Origination Program loan at an interest rate of 3.6 percent in 2004 (paid off in 2005). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103 3 PHILLIPS,JESSE L President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office MANAGING DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $200,000 $200,000 R LOCAL EMPLOYEE AWARD* — — — 91,102 1,102 Total — — — $21,102 $21,102 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $400,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Local employee award is a regent-approved incentive plan for employees in the university’s Office of the Treasurer. RUSS,DAVID H President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office TREASURER AND VP FOR INVESTMENTS Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $293,342 $23,32 R LOCAL EMPLOYEE AWARD* — — — 127,113 12,113 EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total — — — $2,31 $2,31 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $560,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) The regents approved an incentive pay target of up to 100 percent of base salary for him, effective June 1, 2005, according to the university’s annual compensation report for fiscal year 2004-05. Provided an annual allocation from the administrative fund for official entertainment and other purposes ($6,700 in fiscal year 2004–05), according to the university’s annual compensation report for fiscal year 2004–05. * Local employee award is a regent-approved incentive plan for employees in the university’s Office of the Treasurer.  California State Auditor Report 2006-103 STANTON,MELVIN L President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office ASSISTANT TREASURER Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $225,700 $22,00 R LOCAL EMPLOYEE AWARD* — — — 102,811 102,11 Total — — — $32,11 $32,11 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $452,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Local employee award is a regent-approved incentive plan for employees in the university’s Office of the Treasurer. VAN NESS,ROBERT President’s LABORATORY MANAGEMENT OFFICE SENIOR MANAGEMENT GROUP Office ASSISTANT VICE PRESIDENT Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $284,083 $2,03 R Total — — — $2,03 $2,03 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $560,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103  WEDDING,RANDOLPH E President’s OFFICE OF THE TREASURER SENIOR MANAGEMENT GROUP Office MANAGING DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $207,100 $20,100 R LOCAL EMPLOYEE AWARD* — — — 82,987 2, Total — — — $20,0 $20,0 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $416,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Local employee award is a regent-approved incentive plan for employees in the university’s Office of the Treasurer. BANKER,RAJIV D CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Riverside DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $16,250 $168,000 $63,000 $2,750 $20,000 R RELOCATION INCENTIVE PYMT* — — 29,167 — 2,16 Total $16,20 $16,000 $2,16 $2,0 $2,16 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a life insurance policy of $502,000 through February 2005. Granted an exception to policy for a $187,500 housing allowance to be paid over five years. Additional Incentives (Not Personal Compensation) Offered a tenured faculty position at 133.33 percent of his professorial salary upon resignation or termination of his appointment as dean. Offered $75,000 per year in discretionary funding and granted $25,000 for a graduate student assistant. He resigned in January 2005 and was appointed as a special assistant to the chancellor, continuing with the same regular pay. * This payment was seven months of a combined housing and relocation allowance of $250,000 that was to be paid over five years. 6 California State Auditor Report 2006-103 CORDOVA,FRANCE A CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Riverside CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $17,498 $180,902 $67,838 $ 2,961 $26,1 R EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total $1, $10,02 $6,3 $11, $2,11 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $540,000. Participates in the Senior Management Severance Pay Plan as an exception to policy. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had a $83,100 maintenance budget in fiscal year 2004–05. Additional Incentives (Not Personal Compensation) Provided with up to $50,000 one-time research start up funds and up to $80,000 annually in research funding starting in fiscal year 2002–03. Provided with an annual administrative fund allocation, which totaled $25,800 in fiscal year 2004-05. LOUIS,CHARLES FRANCIS VICE CHANCELLOR - RESEARCH SENIOR MANAGEMENT GROUP Riverside VICE CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $13,650 $141,120 $52,920 $2,310 $210,000 R HOUSING ALLOWANCE-TAXABLE* 3,465 35,817 13,432 586 3,300 R Total $1,11 $16,3 $66,32 $2,6 $263,300 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $420,000. Received a $350,000 Mortgage Origination Program loan at an interest rate of 3.7 percent in 2004 (rate is currently 3.8 percent). $116,800 of permanent funding was loaned to the College of Humanities, Arts, and Social Sciences for his wife’s appointment as professor until she vacates the position. Additional Incentives (Not Personal Compensation) Granted $200,000 in matching funds for contracts and grants and allocated up to $210,120 for contract and grants analysts (both annual). Granted up to $75,000 to purchase equipment and provided with 900 square feet of laboratory space. * The University of California at Riverside improperly included his $53,300 housing allowance as retirement-covered compensation. California State Auditor Report 2006-103  WARTELLA,ELLEN A CHANCELLOR’S OFFICE SENIOR MANAGEMENT GROUP Riverside EXECUTIVE VICE CHANCELLOR AND PROVOST Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $15,177 $156,912 $58,842 $2,569 $233,00 R RELOCATION INCENTIVE PYMT 3,794 39,228 14,711 642 ,3 HOUSING ALLOWANCE-TAXABLE* 3,465 35,817 13,432 586 3,300 R EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total $22,36 $231, $6, $12,13 $3,01 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $468,000. Received a $675,000 Mortgage Origination Program loan at an interest rate of 3.7 percent in 2004. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Housing allowance was improperly included as retirement-covered compensation. WEBSTER,C MICHAEL VICE CHANCELLOR - ADMINISTRATION SENIOR MANAGEMENT GROUP Riverside VICE CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,419 $118,051 $44,269 $ 10,659 $1,3 R SEVERANCE PAY-EXECUTIVE — — — 147,631 1,631 TERMINAL VACATION PAY 2,161 22,340 8,377 366 33,2 Total $13,0 $10,31 $2,66 $1,66 $36,23 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $372,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files.  California State Auditor Report 2006-103 BAKER,TIMOTHY S CHEMISTRY ACADEMIC San Diego PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $11,375 $117,600 $44,100 $1,925 $1,000 R RELOCATION INCENTIVE PYMT* 9,750 100,800 37,800 1,650 10,000 ASC - RESEARCH (21,913) 26,105 9,789 427 1,0 ASC AGENCY CAP 43,925 — — — 3,2 Total $3,13 $2,0 $1,6 $,002 $33,333 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Granted a $1.5 million startup package: $1 million for a research support account; $350,000 for facility renovations; and $150,000 for a relocation incentive payment (as shown above). * Although it was coded as a relocation incentive payment by the campus, the president’s office approved an exception to allow this individual to receive a housing allowance above the $100,000 maximum allowance. CHANDLER,MARSHA ALPERT VICE CHANCELLOR-ACADEMIC AFFAIRS SENIOR MANAGEMENT GROUP San Diego SENIOR VICE CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total SABBATICAL LEAVE $12,144 $125,551 $47,081 $2,055 $16,31 R STIPEND* 4,427 45,763 17,161 749 6,100 R REGULAR PAY 1,675 17,317 6,494 283 2,6 R EXEC AUTOMOBILE ALLOWANCE* 8,916 — — — ,16 Total $2,162 $1,631 $0,36 $3,0 $2,616 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $426,000. Received a $650,000 Mortgage Origination Program loan at an interest rate of 6.5 percent in 1997 (rate is currently 3 percent). In October 2004, she received exception from the president’s office that restored 220 hours of vacation lost because she exceeded the allowable limit. Additional Incentives (Not Personal Compensation) Original 1997 offer letter provided for a $15,000 research account per year in support of her research program. * As noted in the Audit Results, she received a full stipend and automobile allowance despite being on sabbatical leave for over ten months in fiscal year 2004–05. California State Auditor Report 2006-103  FOX, MARYE ANNE CHANCELLORS OFFICE SENIOR MANAGEMENT GROUP San Diego CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 19,993 $206,692 $77,509 $3,383 $30, R BY AGREEMENT 364 3,762 1,411 62 , EXEC AUTOMOBILE ALLOWANCE 7,835 — — — ,3 RELOCATION INCENTIVE PYMT 87,500 — — — ,00 Total $11,62 $210, $,20 $3, $0,11 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $702,000. University-provided housing had a $112,300 maintenance budget in fiscal year 2004-05. Provided with temporary housing while the chancellor’s house was being repaired. Secured a tenured position for husband. Granted transfer of sabbatical credits from previous employment. Additional Incentives (Not Personal Compensation) Provided an annual allocation from the administrative fund for official entertainment and other purposes ($31,100 in fiscal year 2004–05), according to the university’s annual compensation report for fiscal year 2004–05. Receives allocation of $30,000 per year to support her research. GRAHAM,RONALD L COMPUTER SCIENCE & ENGINEERING ACADEMIC San Diego PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 7,748 $80,098 $30,037 $113,811 $231,6 R ASC - RESEARCH 40,818 13,283 4,981 217 ,2 Total $,66 $3,31 $3,01 $11,02 $20,3 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Received an annual endowment of $24,695 for discretionary use to support teaching, research, and service activities. 0 California State Auditor Report 2006-103 HOLMES,EDWARD WARREN SCHOOL OF MEDICINE SENIOR MANAGEMENT GROUP San Diego DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $20,189 $208,723 $78,271 $3,417 $310,600 R BY AGREEMENT* 195,000 — — 46,978 21, SALARY DISC, OTHER (1,388) (14,348) (5,380) (235) (21,31) Total $213,01 $1,3 $2,1 $0,160 $31,22 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $622,000. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation is made up of Health Sciences Compensation Plan negotiated ($195,000) and incentive pay ($46,978). As mentioned in the Audit Results, $60,000 of the $195,000 included in this category represents additional compensation ($5,000 per month) he received in fiscal year 2004-05 from a complex arrangement that circumvented policy. MCAFEE,THOMAS VARDON UC SAN DIEGO HEALTH SCIENCES SENIOR MANAGEMENT GROUP San Diego PHYSICIAN IN CHIEF Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $324,997 $32, R RECOGNITION AWARD* — — — 49,157 ,1 Total — — — $3,1 $3,1 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $650,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) Granted an annual expense account of $5,000. * Bonus from the Clinical Enterprise Management Recognition Plan for fiscal year 2003-04, awarded in August 2004. California State Auditor Report 2006-103 1 MCCUBBINS,MATHEW D POLITICAL SCIENCE ACADEMIC San Diego PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $13,325 $137,760 $51,660 $2,255 $20,000 R ASC - RESEARCH 4,442 45,920 17,220 752 6,33 Total $1,6 $13,60 $6,0 $3,00 $23,33 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) Granted $15,000 per year in support of a particular research project. Granted $80,000 research fund given annually for ten years starting in 2003. MOOSSA,ABDOOL RAHIM SURGERY ACADEMIC San Diego PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total NEGOTIATED Y — — — $167,785 $16, HSCP X/BASE $11,031 $114,040 $42,765 1,890 16,26 R HSCP/ADD’L COV COMP — — — 84,910 ,10 R HSCP-RETIREMENT — — — 50,880 0,0 R MSCCP Z-COMPONENT 122,452 — — — 122,2 Total $133,3 $11,00 $2,6 $30,6 $,3 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. SAKAI,DAVID ICHIRO HEALTHCARE CFO SENIOR MANAGEMENT GROUP San Diego FINANCIAL OFFICER Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY — — — $293,280 $23,20 R BY AGREEMENT* — — — 44,530 ,30 BONUS LEAVE PAYOUT — — — 2,256 2,26 ADD’L COMP AMT UNEX/CME $3,330 — — — 3,330 Total $3,330 — — $30,066 $33,36 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $590,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Bonus from the Clinical Enterprise Management Recognition Plan for fiscal year 2003-04, awarded in August 2004. 2 California State Auditor Report 2006-103 SEND,UWE PHYSICAL OCEANOGRAPHY ACADEMIC San Diego PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total RELOCATION INCENTIVE PYMT* $ 8,450 $ 87,360 $32,760 $1,430 $130,000 REGULAR PAY 7,053 72,912 27,342 1,194 10,01 R ASC - RESEARCH — — — 36,167 36,16 Total $1,03 $160,22 $60,102 $3,1 $2,66 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $900,000 Mortgage Origination Program loan at an interest rate of 3.8 percent in October 2005. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * Although it was coded as a relocation incentive payment by the campus, the president’s office approved an exception to allow this individual to receive a housing allowance above the $100,000 maximum allowance. SMARR,LARRY L CA INSTITUTE TELECOM/INFO TECHNOLOGY ACADEMIC San Diego DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $3,970 $224,267 $15,391 $672 $2,300 R Total $3,0 $22,26 $1,31 $62 $2,300 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $1,000,000 Mortgage Origination Program loan at an interest rate of 6.1 percent in 2000 (rate is currently 3.7 percent). Additional Incentives (Not Personal Compensation) Original 2000 offer letter granted $510,000 to purchase equipment and supplies, pay staff salaries, and make renovations to his office or laboratory. ARENSON,RONALD L RADIOLOGY ACADEMIC San Francisco PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — — $263,067 $263,06 REGULAR PAY $ 9,951 $102,879 $38,580 1,713 13,123 R HSCP REG COMP-RET (T) — — — 45,945 , R HEALTH SCIENCE DIFF-RATE — — — 30,616 30,616 R BY AGREE NOT SUBJ TO RET — — — 15,960 1,60 BY AGREE HSCP INCENTIVE 4,000 — — — ,000 Total $13,1 $102, $3,0 $3,301 $12,11 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103 3 BARCLAY,STEPHEN J FINANCE AND ADMINISTRATIVE SERVICES SENIOR MANAGEMENT GROUP San Francisco SENIOR VICE CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $17,550 $181,440 $68,040 $2,970 $20,000 R EXEC AUTOMOBILE ALLOWANCE* — — — 8,916 ,16 Total $1,0 $11,0 $6,00 $11,6 $2,16 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $540,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. In 1998, received a $312,750 Supplemental Home Loan Program loan at an interest rate of 3 percent and a $350,000 Mortgage Origination Program loan at an interest rate of 6.5 percent, which were paid off in March 2006 with the loan described below. Granted a loan of $500,000 in 1998 from the campus chancellor’s discretionary funds to purchase a home near campus. Terms of the loan included no principal and interest due or payable during the term of the loan; simple interest calculated on the loan rate to which the chancellor and the individual agreed; principal and deferred interest due at selling of the residence; and the university agreed to purchase the residence at fair market value and assume all the costs associated with the sale, which it did in December 2004, purchasing the home for $630,000 and incurring $13,000 in closing costs. Received a Supplemental Home Loan Program loan in March 2006 of approximately $1,200,000 at an interest rate of 3 percent with a term of 40 years to pay off prior university loans, pay off another personal loan, and to make approximately $573,000 in renovations to a home in Sonoma. Paid a fiscal year 2004-05 performance bonus of $40,500 under the Clinical Enterprise Management Recognition Plan in October 2005. According to a university analyst, this compensation did not appear in the CPS data because the pay date occurred after the CPS had been closed for the fiscal year. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * An exception to university policy was granted to provide him with an executive automobile allowance. BERTOLAMI,CHARLES N SCHOOL OF DENTISTRY SENIOR MANAGEMENT GROUP San Francisco DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $15,723 $162,557 $60,959 $ 2,661 $21,00 R BY AGREEMENT RTMT C — — — 43,500 3,00 Total $1,23 $162, $60, $6,161 $2,00 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $484,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. To counter another university’s employment offer, San Francisco agreed in July 2001 to refinance his $616,000 Mortgage Origination Program (MOP) loan with an interest rate of 6.5 percent into two separate $308,000 loans: one a MOP loan at an interest rate of 6.4 percent and the other a Supplemental Home Loan Program loan at 3 percent interest rate. Additional Incentives (Not Personal Compensation) To counter another university’s employment offer, San Francisco agreed in July 2001 to several budgetary improvements to the School of Dentistry, including an additional $600,000 in faculty salary funding, $385,000 for environmental health and safety improvements, and $2,000,000 in grant matching funds. * This compensation was Health Sciences Compensation Plan pay.  California State Auditor Report 2006-103 BISHOP,JOHN M CHANCELLOR’S IMMEDIATE OFFICE SENIOR MANAGEMENT GROUP San Francisco CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $23,328 $241,181 $90,443 $3,948 $3,00 R Total $23,32 $21,11 $0,3 $3, $3,00 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $718,000. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. DEBAS,HAILE T GLOBAL HEALTH SCIENCES ACADEMIC San Francisco EXECUTIVE DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 10,407 $107,596 $40,349 $ 1,761 $160,113 R HSCP ADD’L COMP-RET (C) 100,005 — — 115,992 21, HEALTH SCIENCE DIFF-RATE — — — 55,980 ,0 R STIPEND — — — 50,000 0,000 R HSCP REG COMP-RET (T) — — — 48,010 ,010 R Total $110,12 $10,6 $0,3 $21,3 $30,100 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. DIECKMANN,RONALD A EMERGENCY SERVICES, SF GEN HOSPITAL ACADEMIC San Francisco PROFESSOR OF CLINICAL MEDICINE Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — — $ 99,482 $ ,2 REGULAR PAY — — — 98,348 ,3 R HSCP REG COMP-RET (T) — — — 29,515 2,1 R HEALTH SCIENCE DIFF-RATE — — — 19,664 1,66 R BY AGREE HSCP MISC* — — — 9,533 ,33 HONORARIUM — — $100 — 100 Total — — $100 $26,2 $26,62 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for professional witness fees minus department and dean’s office overhead. California State Auditor Report 2006-103  GELB,ALAN M EMERGENCY SERVICES, SF GEN HOSPITAL ACADEMIC San Francisco DIVISION CHIEF Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — — $132,798 $132, REGULAR PAY — — — 98,987 , R BY AGREE HSCP MISC* — — — 33,179 33,1 HSCP REG COMP-RET (T) — — — 29,704 2,0 R HEALTH SCIENCE DIFF-RATE — — — 19,803 1,03 R HONORARIUM — — $200 — 200 Total — — $200 $31,1 $31,61 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for professional witness fees minus department and dean’s office overhead. HOLLAND,MARTIN C SOM NEUROLOGICAL SURGERY ACADEMIC San Francisco ASSOCIATE CLINICAL PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) $28,768 — — $173,073 $201,1 REGULAR PAY — — — 67,167 6,16 R TERMINAL VACATION PAY — — — 48,719 ,1 HEALTH SCIENCE DIFF-RATE — — — 23,576 23,6 R HSCP REG COMP-RET (T) — — — 20,107 20,10 R Total $2,6 — — $332,62 $361,10 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. 6 California State Auditor Report 2006-103 KING,TALMADGE E, JR MEDICINE, SF GENERAL HOSPITAL ACADEMIC San Francisco PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) $ 33,352 — — $126,738 $160,00 REGULAR PAY 19,202 $26,120 $9,795 61,490 116,60 R HSCP REG COMP-RET (T) — — — 35,004 3,00 R BY AGREE HSCP MISC 63,821 — — — 63,21 Total $116,3 $26,120 $, $223,232 $3,22 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $625,000 Mortgage Origination Program loan at an interest rate of 6.4 percent in 1997 (rate is currently 3.95 percent). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for professional witness fees minus department and dean’s office overhead. MACKERSIE,ROBERT C, DR SURGERY ACADEMIC San Francisco PROFESSOR IN RESIDENCE Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total BY AGREE HSCP INCENTIVE $36,060 — — $ 94,650 $130,10 REGULAR PAY 0 — — 91,293 1,23 R HSCP ADD’L COMP-RET (C) 28,921 — — 50,371 ,22 HEALTH SCIENCE DIFF-RATE 0 — — 31,910 31,10 R HSCP REG COMP-RET (T) 0 — — 27,404 2,0 R BY AGREE HSCP MISC 7,613 — — — ,613 Total $2, — — $2,62 $36,222 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. California State Auditor Report 2006-103  MANLEY,GEOFFREY NEUROLOGICAL SURGERY ADMINISTRATOR ACADEMIC San Francisco ASSOCIATE PROFESSOR IN RESIDENCE Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — — $273,564 $23,6 BY AGREEMENT PAYMENT — — — 37,304 3,30 R HEALTH SCIENCE DIFF-RATE — — — 23,187 23,1 R HSCP REG COMP-RET (T) $10,894 — — 9,112 20,006 R REGULAR PAY 28,663 — — 527 2,10 R Total $3, — — $33,6 $33,21 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a $1,000,000 Mortgage Origination Program loan at an interest rate of 5.75 percent in 2002 (rate is currently 3.65 percent). Received a $150,000 Supplemental Home Loan Program loan in 2002 with a 30 year term at an interest rate of 3 percent and no payments for one year. Additional Incentives (Not Personal Compensation) Granted $500,000 in startup money for a laboratory. Granted up to $8,000 per year to cover dues, licensure, travel to meetings, and other expenses. NEIGHBOR,MARTHA EMERGENCY SERVICES, SF GEN HOSPITAL ACADEMIC San Francisco CLINICAL PROFESSOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — — $102,470 $102,0 REGULAR PAY — — — 99,006 ,006 R HSCP REG COMP-RET (T) — — — 29,689 2,6 R HEALTH SCIENCE DIFF-RATE — — — 19,801 1,01 R BY AGREE HSCP MISC* — — — 5,699 ,6 Total — — — $26,666 $26,666 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was for professional witness fees minus department and dean’s office overhead.  California State Auditor Report 2006-103 WALL,SUSAN SOM GRADUATE MEDICAL EDUCATION ACADEMIC San Francisco SPECIAL ASSISTANT TO THE DEAN Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total HSCP ADD’L COMP-RET (C) — — $150,132 $13,648 $163,0 REGULAR PAY $6,168 $63,770 27,663 1,385 ,6 R HSCP REG COMP-RET (T) — — 27,221 2,475 2,66 R HEALTH SCIENCE DIFF-RATE — — 18,147 1,650 1, R BY AGREE HSCP INCENTIVE 16,800 — — — 16,00 Total $22,6 $63,0 $223,163 $1,1 $32,0 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. WASHINGTON,A EUGENE OFFICE OF EXECUTIVE VICE CHANCELLOR SENIOR MANAGEMENT GROUP San Francisco EXECUTIVE VC AND PROVOST Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $16,900 $174,720 $65,520 $2,860 $260,000 R EXEC AUTOMOBILE ALLOWANCE 580 5,992 2,247 98 ,1 BY AGREEMENT RTMT C* 147,000 — — — 1,000 BY AGREE HSCP MISC† 5,235 — — — ,23 Total $16,1 $10,12 $6,6 $2, $21,12 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $522,000. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * This compensation was Health Sciences Compensation Plan pay. † This compensation was for outside professional activities not related to patient care. California State Auditor Report 2006-103  GROSS,DAVID INSTITUTE OF THEORETICAL PHYSICS ACADEMIC Santa Barbara DIRECTOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $13,663 $141,254 $52,970 $2,312 $210,1 R ADD’L COMP-RESEARCH 11,530 42,954 16,108 703 1,2 STIPEND 1,518 15,695 5,886 257 23,36 R HONORARIUM — — — 500 00 Total $26,11 $1,03 $,6 $3,2 $30,30 Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Received a Mortgage Origination Program loan at an interest rate of 6.4 percent in 1997 (rate is currently 3.95 percent). Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. YANG,HENRY T CHANCELLOR SENIOR MANAGEMENT GROUP Santa Barbara CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $18,246 $188,630 $70,736 $ 3,088 $20,00 R EXEC AUTOMOBILE ALLOWANCE — — — 8,916 ,16 Total $1,26 $1,630 $0,36 $12,00 $2,616 Other Benefits Up to $305,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. Employee receives a life insurance policy of $562,000. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. University-provided housing had a $71,700 maintenance budget, according to the university’s annual compensation report for fiscal year 2004–05. Additional Incentives (Not Personal Compensation) Received an administrative fund allocation of $31,300, according to the university’s annual compensation report for fiscal year 2004-05. 0 California State Auditor Report 2006-103 CHEMERS,MARTIN M SENIOR MANAGEMENT GROUP Santa Cruz ACTING CHANCELLOR Federal, Grants, Compensation Contracts, Etc. State Tuition Other Total REGULAR PAY $ 6,554 $ 67,753 $25,407 $1,109 $100,23 R STIPEND* 4,668 48,262 18,098 790 1,1 R LEAVE WITH PAY 3,340 34,525 12,947 565 1,3 R SAB LEAVE-BYA(T) 3,295 34,067 12,775 558 0,6 R TERMINAL VACATION PAY 1,941 20,070 7,526 329 2,66 Total $1, $20,6 $6,3 $3,31 $30, Other Benefits Up to $205,000 of the cumulative total of all lines marked with an “R” is considered relevant for the purpose of calculating retirement. The university contributed 5 percent of the employee’s retirement-covered compensation to the individual’s Senior Management Severance Pay Plan account. Original 1995 offer letter included a one-year half-time visiting faculty appointment for his spouse. Additional Incentives (Not Personal Compensation) No additional incentives identified from review of personnel files. * An auto allowance of $5,513, which was never approved by the president’s office as required by policy, was erroneously coded as a stipend and included as retirement-covered compensation. California State Auditor Report 2006-103 1 Blank page inserted for reproduction purposes only. 2 California State Auditor Report 2006-103 APPenDIX B Survey Results on the Compensation Programs and Disclosure Policies of Institutions Comparable to the University of California To compare the compensation practices and disclosure policies of the University of California (university) with those of other universities, we selected a sample of 5 universities and asked them to complete a survey. We attempted to identify the disclosure practices for compensation at these universities, including the existence of programs and the size of annual program expenses, as well as the number of participants, the program benefits individual participants receive, and how they disclose this information to their governing board and the public. We requested that this data be for fiscal year 2004–05, or the most recent fiscal year for which data was available. We asked the University of California to complete the same survey. Seven of the 5 universities responded to our survey, including three public and four private institutions. The University of California also responded. These responses are documented in Tables B. through B.8 on the following pages. The seven remaining universities did not respond, citing the short two-week time frame within which to complete the survey, the detail of information requested, and other campus priorities. Finally, rather than completing our survey, the University of Wisconsin directed us to visit Web sites at www.uwsa.edu/ budplan/redbook/index.html and www.uwsa.edu/hr/benefits for its compensation practices, and also provided us the salaries of its senior executives and its benefits policy. California State Auditor Report 2006-103 3  California State Auditor Report 2006-103 1.B ELBAT xirtaM erusolcsiD noitasnepmoC ainrofilaC fo ytisrevinU esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR ,smeti adnegA cilbuP ARP *463,931 ARP 0.042,8$ ARP seY yap esaB ,etis beW ,stroper launna sesaeler sserp yaP laitnereffiD ARP ARP ARP ARP tfihs ni dedulcnI ARP seY llac-no/kcab-llaC ARP ARP ARP ARP 5.0 ARP seY yap noitacfiitreC ARP ARP ARP ARP ARP seY ffo emit yrotasnepmoC ARP ARP ARP ARP 0.411 ARP seY emitrevO ARP ARP ARP ARP 0.07 ARP seY laitnereffid tfihS oN levarT evaeL ARP ARP ARP ARP ARP seY evael evitartsinimdA ARP ARP ARP ARP ARP seY evael yratiliM ARP ARP ARP ARP ARP seY evael lacitabbaS ARP ARP ARP ARP ARP seY evael kciS ARP ARP ARP ARP ARP seY evael ssenisub noinU ARP ARP ARP ARP 0. 64 ARP seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA ARP ARP ARP ARP 0.151 ARP seY hcraeser dna gnihcaet lanoitiddA ,smeti adnegA cilbuP ARP ARP 0.85 ARP seY drawa ecnamrofrep laiceps/drawa evitnecni/sunoB troper launna )snalp dna slaudividni niatrec( ,smeti adnegA )GMS( cilbuP ARP ARP 5.84 ARP seY yap tnemeerga yB troper launna troper launnA )X$ >( cilbuP ARP ARP 0.754 ARP seY yap lacinilC ARP ARP ARP ARP ARP seY tnemesrubmier noitacude/reviaw eeF ,smeti adnegA )GMS( cilbuP ARP ARP ARP seY evitnecni noitacoler/sunob gniriH troper launna )sesnepxe gnivom edulcni ton seod( ARP ARP ARP ARP 0.1 ARP seY airaronoH ,smeti adnegA )GMS( cilbuP ARP ARP ARP seY evitnecni noitneter/sunob larrefeR troper launna ,smeti adnegA )GMS( cilbuP ARP ARP 0.92 ARP seY dnepitS troper launna yaP noitisnarT/ecnareveS ARP ARP ARP ARP 0.8 ARP seY yap ecnareveS oN yap noitisnarT California State Auditor Report 2006-103  esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT setisiuqreP ARP ARP ARP ARP 5.0 $ ARP seY ecnawolla otuA ARP ARP ARP ARP ARP seY spihsrebmem/seud bulC ARP ARP ARP ARP ARP seY stneve citelhta/tnemniatretnE ARP ARP troper launnA †253 cilbuP 5.8 cilbuP seY ecnawolla gnisuoH ARP ARP troper launnA 214 cilbuP 0 cilbuP seY naol tseretni-woL ARP ARP ARP ARP ARP seY esnepxe gnivoM tnemeriteR ARP ARP troper launnA 246,421 cilbuP 7.0 cilbuP seY snalp tfieneb denfieD ARP ARP troper launnA 482,231 cilbuP 1.4 cilbuP seY snalp noitubirtnoc denfieD ARP ARP troper launnA 595,7 cilbuP 0 cilbuP )nalP 754( seY snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI ARP ARP ARP 075,46 ARP 0 ARP )diap eeyolpme( seY ecnarusni tnemrebmemsid dna htaed latnediccA ARP ARP ARP 089,711 ARP 9.39 ARP seY ecnarusni latneD ARP ARP ARP 321,911 ARP 8.076 ARP seY ecnarusni htlaeH ARP ARP ARP 973,821 ARP 2.7 ARP seY ecnarusni efiL oN erac mret-gnoL ARP ARP ARP 753,48 ARP 0 ARP )diap eeyolpme( seY ecnarusni ytilibasid mret-gnoL ARP ARP ARP 451,811 ARP 1.91 ARP seY erac noisiV stfieneB dna noitasnepmoC )GMS( ylnO-evitucexE tropeR launnA cilbuP ARP 582 ARP 4.2 ARP seY margorp tfieneb latnemelppuS ARP ARP ARP 343 ARP ARP seY )000,052$( ecnarusni levart ssenisuB troper launnA cilbuP ARP 44 ARP 4.0 ARP seY ecnawolla otuA troper launnA cilbuP ARP 11 ARP ARP seY gnisuoh dedivorp-ytisrevinU ARP ARP ARP 343 ARP ARP seY ecnarusni ytilibasid mret-gnol tnemeganam roineS troper launnA cilbuP ARP 343 ARP ARP seY ecnarusni efil tnemeganam roineS ARP ARP ARP ARP ARP seY evael evitartsinimda laicepS troper launnA cilbuP troper launnA 76 cilbuP 1.2 cilbuP seY nalp noitingocer tnemeganam esirpretne lacinilC detsiL toN ARP ARP ARP 352,1 ARP 9.2 ARP seY nalp noitarotser BD )m(514 —)000,001$( ecnarusni levart ssenisuB ARP ARP ARP ARP ARP seY srollecnahc fo setaicossa dna GMS-non tseuqer nopu tsixe sdrocer tnetxe eht ot atad noitasnepmoc laudividni ro etagergga esolcsid seod )ytisrevinu( ainrofilaC fo ytisrevinU eht ,tcA sdroceR cilbuP eht ot tnausrup tub ,desolcsid ylevitcaorp ton era smeti noitasnepmoc ynaM = ARP :setoN .)seeyolpme yb snoitceles tfieneb laudividni rof tpecxe( puorG tnemeganaM roineS = GMS .cilbup eht ot elbaliava osla era dna stneger eht ot og osla sesac tsom ni stroper launnA .cilbup eht ot elbaliava edam era stneger eht yb snoitca dna ,)stneger( stnegeR fo draoB eht ot og smeti adnegA = cilbuP .stnelaviuqe emit-lluF * .tnuoc daeH † .seirotarobaL ygrenE fo tnemtrapeD morf airaronoh sedulcnI ‡ 6 California State Auditor Report 2006-103 2.B ELBAT xirtaM erusolcsiD noitasnepmoC ygolonhceT fo etutitsnI ainrofilaC esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR ni gniteem launnA evitucexE ’seetsurT eht ot ylnO ni gniteem launnA † * seY yap esaB noisses evitucexe eettimmocbuS noitasnepmoC noisses evitucexe yaP laitnereffiD evoba eeS seY llac-no/kcab-llaC oN yap noitacfiitreC oN ffo emit yrotasnepmoC evoba eeS tpmexe-non rof( seY emitrevO )seeyolpme evoba eeS seY laitnereffid tfihS oN levarT evaeL oN seY evael evitartsinimdA evoba eeS seY evael yratiliM tseuqer yam ytlucaf( oN evael lacitabbaS )evael evitartsinimda evoba eeS seY evael kciS A/N evael ssenisub noinU evoba eeS seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA oN hcraeser dna gnihcaet lanoitiddA evoba eeS denfied ,detceles ni( seY /drawa evitnecni/sunoB )snoitautis drawa ecnamrofrep laiceps oN yap tnemeerga yB A/N yap lacinilC evoba eeS lairosseforp rof( seY tnemesrubmier noitacude/reviaw eeF roines dna ytlucaf )srotartsinimda evoba eeS seY edulcni ton seod( evitnecni noitacoler/sunob gniriH )sesnepxe gnivom oN airaronoH evoba eeS seY evitnecni noitneter/sunob larrefeR evoba eeS )spihswollef rof ylno( seY dnepitS yaP noitisnarT/ecnareveS evoba eeS seY yap ecnareveS oN yap noitisnarT California State Auditor Report 2006-103  esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT setisiuqreP oN ecnawolla otuA ‡seY tnediserp eht rof ylnO spihsrebmem/seud bulC oN stneve citelhta/tnemniatretnE ‡seY lairosseforp rof ylno( seY ecnawolla gnisuoH roines dna ytlucaf )srotartsinimda ‡seY rebmun llams a rof( seY naol tseretni-woL )ytlucaf detceles fo oN seY esnepxe gnivoM tnemeriteR oN snalp tfieneb denfieD §seY seY snalp noitubirtnoc denfieD §seY tsehgih ni esoht rof( seY snalp noitasnepmoc derrefed defiilauQ )yap tcerid fo tnecrep 5 ecnarusnI oN )diap-eeyolpme( seY ecnarusni tnemrebmemsid dna htaed latnediccA §seY seY ecnarusni latneD §seY seY ecnarusni htlaeH §seY seY ecnarusni efiL oN erac mret-gnoL §seY seY ecnarusni ytilibasid mret-gnoL htlaeh fo trap a sa( seY erac noisiV )ecnarusni stfieneB dna noitasnepmoC ylnO-evitucexE ‡seY yb derevoc esohT smaxe lacisyhP snoitcnas etaidemretni ‡seY tsovorp dna tnediserP dedivorp esuoH ‡seY ytlucaf roines detceleS noitasnepmoc derrefed defiilauqnoN srotartsinimda dna ‡seY roines detceleS snaol noitacoleR srotartsinimda .noitapicitrap laudividni dna tsoc no noitamrofni deliated edivorp ot elbanu saw ti detacidni )hcetlaC( ygolonhceT fo etutitsnI ainrofilaC ehT :etoN .stnemele yap laudividni eht tuo kaerb ton seod hcetlaC .)seetsurT( seetsurT fo draoB eht ot detroper dna tnuoma elgnis a otni pu dellor era stnemele noitasnepmoc tcerid llA * lennosrep rehto llA .noitalsigel snoitcnas etaidemretni yb derevoc slaudividni eht fo hcae rof eettimmocbuS noitasnepmoC evitucexE ’seetsurT eht ot tnemele yb noitapicitrap dna tsoc gnidulcni noitamrofni noitasnepmoc deliated sesolcsid hcetlaC † .eettimmoC ecnaniF dna ssenisuB s’eetsurT eht ot sisab ssorg a no detroper era stsoc .eettimmocbuS noitasnepmoC evitucexE ’seetsurT eht ot noitamrofni siht sesolcsid hcetlaC ‡ .eettimmoC ecnaniF dna ssenisuB ’seetsurT eht ot noitamrofni siht sesolcsid hcetlaC §  California State Auditor Report 2006-103 3.B ELBAT xirtaM erusolcsiD noitasnepmoC ytisrevinU ekuD esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR AN oN AN 063,72 oN AN seY seY yap esaB yaP laitnereffiD AN oN AN AN oN 2.2 $ oN seY llac-no/kcab-llaC AN oN AN 281,5 oN AN oN seY yap noitacfiitreC AN oN AN AN oN AN oN seY *ffo emit yrotasnepmoC AN oN AN AN oN 3.8 oN seY emitrevO AN oN AN AN oN 0.02 oN seY laitnereffid tfihS AN oN AN AN oN AN oN seY *levarT evaeL AN oN AN AN oN AN oN oN evael evitartsinimdA AN oN AN AN oN AN oN seY evael yratiliM AN oN AN AN oN AN oN seY evael lacitabbaS AN oN AN AN oN AN oN seY evael kciS AN oN AN 6 oN AN oN seY evael ssenisub noinU AN oN AN AN oN AN oN seY evael diap rehto/noitacaV AN oN AN AN oN AN oN seY †ALMF noitasnepmoC lanoitiddA AN oN AN AN oN AN oN seY hcraeser dna gnihcaet lanoitiddA AN oN AN AN oN AN oN * *drawa ecnamrofrep laiceps/drawa evitnecni/sunoB AN oN AN AN oN AN oN oN yap tnemeerga yB AN oN AN AN oN AN oN oN yap lacinilC AN oN AN AN oN AN seY seY tnemesrubmier noitacude/reviaw eeF evitnecni noitacoler/sunob gniriH AN oN AN AN oN AN seY seY )sesnepxe gnivom edulcni ton seod( AN oN AN AN oN AN oN * airaronoH AN oN AN AN oN AN oN * evitnecni noitneter/sunob larrefeR AN oN AN AN oN AN oN * dnepitS yaP noitisnarT/ecnareveS AN oN AN AN oN AN draoB ,seY seY yap ecnareveS AN oN AN AN oN AN oN oN yap noitisnarT AN oN AN AN oN 0.003,1 oN †yap latoT California State Auditor Report 2006-103  esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT setisiuqreP AN oN AN AN oN AN draoB ,seY * ecnawolla otuA AN oN AN AN oN AN draoB ,seY * spihsrebmem/seud bulC AN oN AN AN oN AN oN oN stneve citelhta/tnemniatretnE AN oN AN AN oN AN draoB ,seY oN ecnawolla gnisuoH AN oN AN AN oN AN oN * naol tseretni-woL AN oN AN AN oN AN oN * esnepxe gnivoM tnemeriteR ecnarusnI dna htaed latnediccA AN oN AN AN oN diap eeyolpmE oN seY ecnarusni tnemrebmemsid AN oN AN 334,71 oN diap eeyolpmE oN seY ecnarusni latneD AN oN AN 002,62 oN 0.09 $ oN seY ecnarusni htlaeH AN oN AN 000,52 oN 35.0 oN seY D&DA dna ecnarusni efiL AN oN AN 533,1 oN diap eeyolpmE oN seY erac mret-gnoL AN oN AN 000,61 oN 5.3 oN seY ecnarusni ytilibasid mret-gnoL AN oN AN 770,4 oN diap eeyolpmE oN seY erac noisiV stfieneB dna noitasnepmoC ylnO-evitucexE AN oN AN AN ‡099 mroF ylno esolcsiD 0.8 ‡099 mroF ylno esolcsiD * bulc ,srac rof stnemegnarra laudividni laudiser owT noitamrofni noitamrofni yrev ;noitacoler dna ,naol egagtrom ,pihsrebmem rebmun detimil .knalb tfel era dna rennam siht ni derutpac ton era smeti eseht fo ynaM :etoN elbacilppa toN = AN .secnatsmucric detimil nI * .enil siht dedda ytisrevinU ekuD † .xaT emocnI morF tpmexE noitazinagrO fo nruteR ,099 mroF SRI ‡ 100 California State Auditor Report 2006-103 .B ELBAT xirtaM erusolcsiD noitasnepmoC sionillI fo ytisrevinU esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR ll * § † ‡ † * seY yap esaB yaP laitnereffiD seY llac-no/kcab-llaC seY yap noitacfiitreC seY ffo emit yrotasnepmoC seY emitrevO seY laitnereffid tfihS oN levarT evaeL seY evael evitartsinimdA seY evael yratiliM seY evael lacitabbaS seY evael kciS oN evael ssenisub noinU seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA seY hcraeser dna gnihcaet lanoitiddA oN drawa ecnamrofrep laiceps/drawa evitnecni/sunoB seY yap tnemeerga yB seY yap lacinilC seY tnemesrubmier noitacude/reviaw eeF edulcni ton seod( evitnecni noitacoler/sunob gniriH oN )sesnepxe gnivom seY airaronoH seY evitnecni noitneter/sunob larrefeR seY dnepitS yaP noitisnarT/ecnareveS oN yap ecnareveS oN yap noitisnarT setisiuqreP oN ecnawolla otuA seY spihsrebmem/seud bulC seY stneve citelhta/tnemniatretnE seY ecnawolla gnisuoH California State Auditor Report 2006-103 101 esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT oN naol tseretni-woL oN esnepxe gnivoM tnemeriteR seY snalp tfieneb denfieD seY snalp noitubirtnoc denfieD oN snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI dna htaed latnediccA seY ecnarusni tnemrebmemsid seY ecnarusni latneD seY ecnarusni htlaeH seY ecnarusni efiL seY erac mret-gnoL seY ecnarusni ytilibasid mret-gnoL seY erac noisiV stfieneB dna noitasnepmoC ylnO-evitucexE :srollecnahc dna tnediserP ecnawolla gnisuoh/esuoh elbaliava rac loop rotom a evah srecfifo ytisrevinU keew a syad neves ,yad a sruoh 42 sunob noitneter :rollecnahC CUIU dna tnediserP ,revewoH .ecalp ni margorp ycilop stfieneb/noitasnepmoc evitucexe cfiiceps a evah ton seod ytisrevinu ehT .noitalupop eeyolpme )ytisrevinu( sionillI fo ytisrevinU eritne eht gninrecnoc ycilop no desab era nmuloc dnoces eht ni sesnopser ehT :setoN s’tnediserP eht ni evil ot deriuqer si tnediserp ehT .noitamrofni cilbup si dna seetsurT fo draoB eht yb devorppa dna ot detneserp si noitasnepmoc riehT .seud bulc dna ,sevitnecni noitneter ,secnawolla gnisuoh evah srollecnahc dna tnediserp eht ylno .supmac anabrU eht no detacol esuoH .rennam evitisnes a ni noitamrofni lennosrep lla staert ytisrevinu ehT .tseuqer nopu )cilbup ,.e.i( stneutitsnoc lanretxe ot elbaliava si troper ehT .seetsurT fo draoB eht ot troper launna na sedivorp ytisrevinu ehT * .seirogetac cfiiceps eseht otni nwod noitamrofni eht kaerb ton seod ytisrevinu ehT .elbaliavanu si noitamrofni ehT † .noitamrofni cilbup si dna seetsurT fo draoB eht yb devorppa dna ot detneserp si noitamrofni lacitabbaS .tseuqer nopu )cilbup ,.e.i( stneutitsnoc lanretxe dna seetsurT fo draoB eht ot scitsitats yrammus sedivorp ytisrevinu ehT ‡ .tseuqer nopu )cilbup ,.e.i( stneutitsnoc lanretxe dna seetsurT fo draoB eht ot scitsitats yrammus sedivorp ytisrevinu ehT § .supmac hcae no yrarbil ytisrevinu eht aiv cilbup eht ot elbaliava si troper ehT .stnelaviuqe emit-lluf dna ,seiralas ,seltit ,tnemtraped ,seman htiw ffats cimedaca lla fo seetsurT fo draoB eht ot troper a sedivorp ytisrevinu ehT ll 102 California State Auditor Report 2006-103 .B ELBAT xirtaM erusolcsiD noitasnepmoC ygolonhceT fo etutitsnI sttesuhcassaM )yrotarobaL nlocniL sedulcnI( esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR AN rehtieN draoB eht ot tropeR 004,01 draoB 0.445$ draoB seY yap esaB yaP laitnereffiD rehtieN elbacilppA toN rehtieN rehtieN seY llac-no/kcab-llaC rehtieN elbacilppA toN rehtieN rehtieN seY yap noitacfiitreC oN ffo emit yrotasnepmoC rehtieN elbacilppA toN rehtieN 5.8 rehtieN seY emitrevO rehtieN elbacilppA toN rehtieN rehtieN seY laitnereffid tfihS oN levarT evaeL rehtieN elbacilppA toN rehtieN rehtieN seY evael evitartsinimdA rehtieN elbacilppA toN rehtieN rehtieN seY evael yratiliM rehtieN elbacilppA toN rehtieN 0.6 rehtieN )ylno supmac( seY evael lacitabbaS rehtieN elbacilppA toN rehtieN 3.71 rehtieN seY evaeL kciS evael ssenisub noinU rehtieN elbacilppA toN rehtieN 8.77 rehtieN seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA rehtieN elbacilppA toN rehtieN rehtieN seY hcraeser dna gnihcaet lanoitiddA rehtieN elbacilppA toN rehtieN 0.331 rehtieN yranoitercsid( seY drawa ecnamrofrep laiceps/drawa evitnecni/sunoB )ylno supmac–sesunob oN yap tnemeerga yB oN yap lacinilC rehtieN elbacilppA toN rehtieN 4.2 rehtieN seY tnemesrubmier noitacude/reviaw eeF edulcni ton seod( evitnecni noitacoler/sunob gniriH oN )sesnepxe gnivom rehtieN elbacilppA toN rehtieN rehtieN seY airaronoH oN evitnecni noitneter/sunob larrefeR rehtieN elbacilppA toN rehtieN rehtieN seY dnepitS California State Auditor Report 2006-103 103 esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP noitisnarT/ecnareveS rehtieN elbacilppA toN rehtieN rehtieN seY yap ecnareveS oN yap noitisnarT setisiuqreP oN ecnawolla otuA oN spihsrebmem/seud bulC oN stneve citelhta/tnemniatretnE oN ecnawolla gnisuoH oN naol tseretni-woL )ylno ytlucaf( seY esnepxe gnivoM tnemeriteR †099 SRI †099 SRI *0055 mroF cilbuP deriuqer oN cilbuP seY snalp tfieneb denfieD noitubirtnoc †099 SRI †099 SRI *0055 mroF rehtieN 4.23 $ cilbuP seY snalp noitubirtnoc denfieD oN snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI rehtieN *0055 mroF cilbuP cilbuP seY ecnarusni tnemrebmemsid dna htaed latnediccA rehtieN *0055 mroF cilbuP ni dedulcnI cilbuP seY ecnarusni latneD ecnarusni htlaeh rehtieN *0055 mroF cilbuP 0.54 cilbuP )latned sedulcni( seY ecnarusni htlaeH rehtieN *0055 mroF cilbuP 0.1 cilbuP levart sedulcni( seY ecnarusni efiL )tnedicca rehtieN elbacilppA toN rehtieN diaP eeyolpmE rehtieN seY erac mret-gnoL rehtieN *0055 mroF cilbuP 9.3 cilbuP seY ecnarusni ytilibasid mret-gnoL oN erac noisiV stfieneB dna noitasnepmoC ylnO-evitucexE defiitnedi enoN .nalP tfieneB eeyolpmE fo tropeR/nruteR launnA ,0055 mroF )SRI( ecivreS euneveR lanretnI * .xaT emocnI morF tpmexE noitazinagrO fo nruteR ,099 mroF SRI † 10 California State Auditor Report 2006-103 6.B ELBAT xirtaM erusolcsiD noitasnepmoC ytisrevinU drofnatS esolcsiD ytisrevinU ruoY seoD fo snaeM ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC tsoC rof erusolcsiD fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE noitapicitraP dna /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR seY yap esaB yaP laitnereffiD llac-no/kcab-llaC yap noitacfiitreC ffo emit yrotasnepmoC emitrevO laitnereffid tfihS levarT evaeL seY evael evitartsinimdA seY evael yratiliM ylno ytlucaf ,seY evael lacitabbaS seY evael kciS evael ssenisub noinU seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA seY hcraeser dna gnihcaet lanoitiddA seY drawa ecnamrofrep laiceps/drawa evitnecni/sunoB seY yap tnemeerga yB seY yap lacinilC seY tnemesrubmier noitacude/reviaw eeF evitnecni noitacoler/sunob gniriH seY )sesnepxe gnivom edulcni ton seod( seY airaronoH yltnerruc toN evitnecni noitneter/sunob larrefeR seY dnepitS yaP noitisnarT/ecnareveS seY yap ecnareveS yap noitisnarT California State Auditor Report 2006-103 10 esolcsiD ytisrevinU ruoY seoD fo snaeM ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC tsoC rof erusolcsiD fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE noitapicitraP dna /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT setisiuqreP yllamron toN ecnawolla otuA oN spihsrebmem/seud bulC oN stneve citelhta/tnemniatretnE seY ecnawolla gnisuoH seY naol tseretni-woL seY esnepxe gnivoM tnemeriteR desolc nalp ,seY snalp tfieneb denfieD seY snalp noitubirtnoc denfieD seY snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI seY ecnarusni tnemrebmemsid dna htaed latnediccA seY ecnarusni latneD seY ecnarusni htlaeH seY ecnarusni efiL seY erac mret-gnoL seY ecnarusni ytilibasid mret-gnoL seY erac noisiV stfieneB dna noitasnepmoC ylnO-evitucexE defiitnedi enoN tnediserp eht rof snalp tnemeriter latnemelppus era sedivorp drofnatS stfieneb lanoitidda ylno eht ,stfieneb dna noitasnepmoc ylno-evitucexe ot tcepser htiW .ylno seeyolpme tpmexe rof era srewsna eht taht setacidni laicfifo )drofnatS( ytisrevinU drofnatS A :setoN taht ,4002 roF .seetsurT fo draoB eht ot dedivorp dna elbaliava ylcilbup si hcihw ,troper launna sti ni deniatnoc si seeyolpme sti rof noitasnepmoc no sdneps drofnatS tnuoma latot ehT .srecfifo roines rehto eht fo emos rof snalp noitasnepmoc derrefed dna tsovorp dna derahs osla si noitamrofni sihT .ytisrevinu eht ni slaudividni detasnepmoc ylhgih tsom evfi eht dna ytisrevinu eht fo srecfifo eht fo ,stfieneb gnidulcni ,noitasnepmoc eht stsil hcihw ,099 mroF sti si erusolcsid cilbup rehto ylno s’drofnatS .noillib 4.1$ tuoba saw rebmun .slaudividni 001 revo srebmun hcihw ,drofnatS fo seeyolpme dna ytlucaf detasnepmoc ylhgih dna roines tsom fo stfieneb dna seiralas eht sevorppa dna sweiver seetsurT fo draoB eht fo eettimmoC noitasnepmoC ehT .seetsurT fo draoB eht htiw 106 California State Auditor Report 2006-103 .B ELBAT xirtaM erusolcsiD noitasnepmoC )YNUS( kroY weN fo ytisrevinU etatS ,olaffuB ta ytisrevinU esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 193,6 draoB 7.342$ draoB seY yap esaB yaP laitnereffiD draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY llac-no/kcab-llaC oN yap noitacfiitreC ARN draoB ARN draoB seY ffo emit yrotasnepmoC draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 532,3 draoB 1.2 draoB seY emitrevO draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 051 draoB 50.0 draoB seY laitnereffid tfihS draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY levarT evaeL draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 42 draoB ARN draoB seY evael evitartsinimdA draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 41 draoB ARN draoB seY evael yratiliM draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 56 draoB ARN draoB seY evael lacitabbaS draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 482 draoB ARN draoB seY evael kciS ARN rehtieN ARN rehtieN seY evael ssenisub noinU draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY hcraeser dna gnihcaet lanoitiddA draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY drawa ecnamrofrep laiceps/drawa evitnecni/sunoB draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY yap tnemeerga yB draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY yap lacinilC draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY tnemesrubmier noitacude/reviaw eeF edulcni ton seod( evitnecni noitacoler/sunob gniriH oN )sesnepxe gnivom draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE ARN draoB ARN draoB seY airaronoH oN evitnecni noitneter/sunob larrefeR draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 761 draoB 2.1 draoB seY dnepitS yaP noitisnarT/ecnareveS oN yap ecnareveS oN yap noitisnarT California State Auditor Report 2006-103 10 esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD rof erusolcsiD fo snaeM laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD raeY lacsiF latoT launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE laudividnI ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP erutidnepxE ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG )snoilliM( ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT setisiuqreP oN ecnawolla otuA oN spihsrebmem/seud bulC oN stneve citelhta/tnemniatretnE oN ecnawolla gnisuoH ARN rehtieN ARN rehtieN seY naol tseretni-woL oN esnepxe gnivoM tnemeriteR draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 089,1 draoB ARN draoB seY snalp tfieneb denfieD draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 007,2 draoB ARN draoB seY snalp noitubirtnoc denfieD oN snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI oN ecnarusni tnemrebmemsid dna htaed latnediccA draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 002,4 draoB ARN draoB seY ecnarusni latneD draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 002,4 draoB ARN draoB seY ecnarusni htlaeH oN ecnarusni efiL oN erac mret-gnoL draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 523,3 draoB ARN draoB seY ecnarusni ytilibasid mret-gnoL draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 002,4 draoB ARN draoB seY erac noisiV stfieneB dna noitasnepmoC ylnO-evitucexE draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 1 draoB ARN draoB seY ecnawolla gnisuoH draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 52 draoB ARN draoB seY ecnawolla otuA draoB ot cinortcelE draoB ot cinortcelE draoB ot cinortcelE 54 draoB 1.0 draoB seY sesnepxe gnivoM .elbaliava ylidaer toN = ARN 10 California State Auditor Report 2006-103 .B ELBAT xirtaM erusolcsiD noitasnepmoC notgnihsaW fo ytisrevinU erusolcsiD fo snaeM esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD laudividnI rof laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP ralugeR cilbuP :tseuqer nopu( seY ,decudorp si troper a fI detroper toN si ti ,decudorp si troper a fI ta detroper toN ti ,decudorp si troper a fI seY yap esaB notgnihsaW ni waL erusolcsiD rednu elbasolcsid si ti ralunarg siht ta fo etatS eht rednu elbasolcsid level ralunarg siht eht rednu elbasolcsid si )siht seriuqer notgnihsaW fo etatS eht level wal erusolcsiD cilbuP notgnihsaW cilbuP notgnihsaW fo etatS wal erusolcsiD cilbuP wal erusolcsiD yaP laitnereffiD seY seY llac-no/kcab-llaC seY seY yap noitacfiitreC seY seY ffo emit yrotasnepmoC seY seY emitrevO seY seY laitnereffid tfihS )tnemesrubmier ylno( oN )tnemesrubmier ylno( oN levarT evaeL seY seY evael evitartsinimdA seY seY evael yratiliM seY seY evael lacitabbaS seY seY evael kciS seY seY evael ssenisub noinU seY seY evael diap rehto/noitacaV noitasnepmoC lanoitiddA seY seY hcraeser dna gnihcaet lanoitiddA )tcartnoc no desab( seY )tcartnoc no desab( seY drawa ecnamrofrep laiceps/drawa evitnecni/sunoB )tcartnoc no desab( seY )tcartnoc no desab( seY yap tnemeerga yB yap lacinilC seY seY tnemesrubmier noitacude/reviaw eeF edulcni ton seod( evitnecni noitacoler/sunob gniriH seY seY )sesnepxe gnivom seY seY airaronoH oN oN evitnecni noitneter/sunob larrefeR seY seY dnepitS California State Auditor Report 2006-103 10 erusolcsiD fo snaeM esolcsiD ytisrevinU ruoY seoD ytisrevinU ruoY seoD ytisrevinU ruoY seoD laudividnI rof laudividnI rof noitasnepmoC erusolcsiD fo snaeM fo rebmuN esolcsiD ytisrevinU ruoY seoD launnA latoT esolcsiD fo epyT sihT reffO eeyolpmE ro cilbuP ot seeyolpmE dna tsoC rof /stnapicitraP ro cilbuP ot ataD noitapicitraP raeY lacsiF latoT ro cilbuP ot erutidnepxE ro noitasnepmoC noitasnepmoC ?draoB gninrevoG ataD noitapicitraP stneipiceR ?draoB gninrevoG erutidnepxE ?draoB gninrevoG ?tfieneB tfieneB ro noitasnepmoC fo epyT yaP noitisnarT/ecnareveS seY seY yap ecnareveS oN oN yap noitisnarT setisiuqreP seY ecnawolla otuA spihsrebmem/seud bulC seY stneve citelhta/tnemniatretnE seY ecnawolla gnisuoH naol tseretni-woL seY esnepxe gnivoM tnemeriteR oN laicnanfi launna–seY seY snalp tfieneb denfieD stnemetats oN laicnanfi launna–seY seY snalp noitubirtnoc denfieD stnemetats oN seY snalp noitasnepmoc derrefed defiilauqnoN ecnarusnI oN laicnanfi launna–seY seY ecnarusni tnemrebmemsid dna htaed latnediccA stnemetats oN laicnanfi launna–seY seY ecnarusni latneD stnemetats oN laicnanfi launna–seY seY ecnarusni htlaeH stnemetats oN laicnanfi launna–seY seY ecnarusni efiL stnemetats oN erac mret-gnoL oN laicnanfi launna–seY seY ecnarusni ytilibasid mret-gnoL stnemetats oN laicnanfi launna–seY seY eraC noisiV stnemetats stfieneB dna noitasnepmoC ylnO-evitucexE seY seY )tsovorp dna tnediserp( ecnawolla otuA seY seY )tnediserp( dedivorp esuoH )tnediserp( ecnanetniam esuoH )tsovorp dna tnediserp( noitasnepmoc derrefeD Blank page inserted for reproduction purposes only. 110 California State Auditor Report 2006-103 APPenDIX C Reconciliation of the $871 Million in Additional Pay the San Francisco Chronicle Reported to the $334 Million Reported in This Audit In its coverage of employee compensation issues at the University of California (university), the San Francisco Chronicle (the Chronicle) referred to $87 million as additional compensation that was distributed to university employees. The Chronicle based its figure on fiscal year 2004–05 payroll data it received from the university. In a response to the Chronicle, the university stated on its Web site that the $87 million was misleading and asserted that its senior managers received only $7 million of that amount. In particular, the university pointed out that the $87 million included $600 million of compensation paid to health sciences faculty for treating patients or conducting research and to campus faculty for additional teaching and research performed during the summer. Using the same payroll data from the university, Table 2 on page 2 shows that using our definitions of regular and additional pay we concluded that additional compensation paid to university employees totaled $334 million during fiscal year 2004–05. This figure represents additional compensation above the compensation that we considered regular pay. For example, we classified the Health Sciences Compensation Program pay of $443 million as regular pay because this is primarily pay that university medical employees received for teaching and clinical services. We also considered differential pay—pay related to items such as working a different shift—and leave and leave payouts as regular pay because this compensation is related to an individual’s employment rather than compensation above their regular duties. Our analysis also identified additional pay items totaling $46 million that were not included in the Chronicle’s $87 million figure. The largest of these additional compensation items was sabbatical leave pay of $44 million, which is pay that a faculty member receives while taking time off from teaching to study or to perform research. Table C on the following page shows all the reconciling compensation items between the Chronicle’s reported additional compensation of $87 million and our figure of $334 million. California State Auditor Report 2006-103 111 TABLE C Reconciliation of Additional Pay Reported by the San Francisco Chronicle to That Reported in This Audit (in Thousands) $1 million identified as additional pay by the San Francisco Chronicle (Chronicle) $0,1 Items included in the $1 million considered regular pay by the Bureau of State Audits (bureau) Deductions from base pay for Staff and Academic Reduction in Time (START) Program and Workers’ Compensation* $ 15,818 Off-scale/non-base pay (2,998) Differential pay (49,774) Fellowship and scholarship (10,007) Health Sciences Compensation Plan and other medical-related pay (442,944) Leave (384) Leave payout (45,942) Overtime, compensation time, and call-back pay (20,542) University extension (25,788) Subtotal of items identified as additional pay in the university data provided to the Chronicle but considered regular pay by the bureau (2,61) Additional pay excluded by the University of California (university) Additional income items at Hastings and Associated Students of the University of California at Los Angeles (ASUCLA) 1,176 Items excluded by the university because the record did not contain a name 152 Additional compensation items excluded by the university for postdoctorates 110 Deductions excluded by the university for employees whose regular pay was offset to zero (345) Other miscellaneous payments (617) Other perquisites 41 Sabbatical leave 44,128 Severance pay 118 Tips, honoraria, and continuing education 1,291 Subtotal of items excluded by the university but considered additional pay by the bureau 6,0 Total bureau-identified additional pay $33,10 * This item was subtracted from the Chronicle’s additional pay figure. Because we considered it to be part of base pay, we added it to reverse the effect. 112 California State Auditor Report 2006-103 APPenDIX D Summary of the Numerous Funding Sources for University of California Employees’ Compensation Table D on the following page summarizes the 52 fund groups, comprising approximately 3,000 funds, that the University of California (university) uses to pay its employees. We worked with the university’s Office of the President (president’s office) to determine the source of funding for each fund group and to classify the funding source under one of the seven types listed in Table D. According to the president’s office, the “Other” funding source category is a mixture of funding from the other six sources or is not represented in our designations of funding sources. We attempted to identify the funding for nine fund groups in the “Other” category. However, the president’s office indicated to us that the titles of the funds within some of these fund groups were not sufficiently descriptive to allow it to assign sources of funding, nor could it assure us that these fund groups did not receive funding from state appropriations or student fees. Because there were numerous funds within these fund groups—for example, the fund group “Current Funds–Other Sources Other” had total funding of $365 million from about ,200 funds—it was not feasible for us to do the analysis necessary to identify the funding sources. However, we observed that the compensation of several highly paid university employees came from the “Other” funding source. For instance, more than 60 percent of the university president’s compensation of $395,000 is funded by the “Current Funds–Other Sources Other” fund group. Therefore, as noted in the Scope and Methodology, we considered the “Other” funding source category to be relevant for our analysis. California State Auditor Report 2006-103 113 11 California State Auditor Report 2006-103 D ELBAT seeyolpmE ainrofilaC fo ytisrevinU fo noitasnepmoC eht rof gnidnuF fo secruoS morf emocnI -lacideM ,stnarG ,stfiG etavirP laredeF tnedutS fo rebmuN sralloD latoT yrailixuA detaleR dna ,stcartnoC dna stnarG noitiuT etatS eht ni sdnuF )sdnasuohT ni( rehtO snoitarepO emocnI stnemwodnE stcartnoC seeF dna snoitairporppA noitpircseD puorG dnuF puorG dnuF 090,01 $ X sdnuf ycnegA 28 445,873,2 )%1.1( X )%5.6( X )%2.52( X )%2.76( X sdnuf lareneG 581 870,58 X seef noitartsiger—seef dna noitiuT 9 624,3 X seef lanoitacude—seef dna noitiuT 51 52 X eef loohcs lacidem/wal—seef dna noitiuT 1 633,41 X seef wal—seef dna noitiuT 5 359,21 X eef enicidem—seef dna noitiuT 7 640,1 X eef yrtsitned—seef dna noitiuT 3 183 X eef enicidem yraniretev—seef dna noitiuT 1 860,61 X eef tnemeganam/noitartsinimda ssenisub—seef dna noitiuT 6 035 X eef gnisrun—seef dna noitiuT 2 862,1 X eef ycamrahp—seef dna noitiuT 2 839 X eef yrtemotpo—seef dna noitiuT 1 956 X eef retaeht—seef dna noitiuT 1 147,9 X ABM—deyolpme ylluf/rosseforp gnikrow/gninevE 7 511 X ABM evitucexe erac htlaeh dna ABM evitucexE 1 386,73 X seef tneduts rehto—seef dna noitiuT 131 870,72 X noisses remmuS 62 636,19 X noisnetxe ytisrevinU 33 365,32 X noitairporppa etats cfiiceps dnuf lareneG 87 260,41 X snoitairporppa etats laicepS 111 351,79 X stnemeerga evitarepooc dna ,stnarg ,stcartnoc etatS 754,1 003,89 X stnemeerga evitarepooc dna ,stcartnoc ,stnarg ,snoitairporppa lacoL 245 888,2 X snoitairporppa tnemnrevog .S.U—sdnuf tnerruC 23 656,797 X stnemeerga evitarepooc dna stnarg laredeF 084,01 560,29 X stcartnoc laredeF 990,1 343,34 X emocni sdnuf tnemwodne—sdnuf tnerruC 428 dna ytinutroppo gnidulcxe—detairporppa lapicnirp tnemwodnE 653,2 X sdnuf lanoitacude 91 California State Auditor Report 2006-103 11 morf emocnI -lacideM ,stnarG ,stfiG etavirP laredeF tnedutS fo rebmuN sralloD latoT yrailixuA detaleR dna ,stcartnoC dna stnarG noitiuT etatS eht ni sdnuF )sdnasuohT ni( rehtO snoitarepO emocnI stnemwodnE stcartnoC seeF dna snoitairporppA noitpircseD puorG dnuF puorG dnuF 955,13 $ X dnuf ytinutroppo—detairporppa lapicnirp tnemwodnE 05 588,9 X dnuf lanoitacude—detairporppa lapicnirp tnemwodnE 41 497,3 X stfig detcirtsernu stcartnoc dna ,stnarg ,stfig etavirp—sdnuf tnerruC 34 822,521 X stfig detcirtser stcartnoc dna ,stnarg ,stfig etavirp—sdnuf tnerruC 208,3 932,611 X stnarg detcirtser stcartnoc dna ,stnarg ,stfig etavirp—sdnuf tnerruC 177,3 etavirp stcartnoc dna ,stnarg ,stfig etavirp—sdnuf tnerruC 816,4 833,141 X stcartnoc detcirtser 456,71 X slairt gurd lacinilC 210,1 331,7 X cinilc latned—ytivitca lanoitacude fo secivres dna selaS 11 171,52 X HPN—ytivitca lanoitacude fo secivres dna selaS 3 936,8 X nalp noitasnepmoc latned—ytivitca lanoitacude fo secivres dna selaS 12 918,556 X nalp noitasnepmoc lacidem ecivres dna selas—sdnuf tnerruC 462 333,191 X rehto ecivres dna selas—sdnuf tnerruC 169 178,774,1 X latipsoh gnihcaet ecivres dna selas—sdnuf tnerruC 91 927,402 X sesirpretne yrailixua ecivres dna selas—sdnuf tnerruC 502 037,08 X sesirpretne ecivres secruos rehto—sdnuf tnerruC 321 46 X daehrevo stnarg dna tcartnoc laredef secruos rehto—sdnuf tnerruC 1 dna pmoc ygrenE fo tnemtrapeD .S.U secruos rehto—sdnuf tnerruC 8 879 X dnuf laicfieneb 598,57 X ecivres tnalp secruos rehto—sdnuf tnerruC 21 137,92 X pot-eht-ffo tnarg dna tcartnoc laredef—secruos rehtO 21 923 X eef tnemeganam ygrenE fo tnemtrapeD .S.U—secruos rehtO 1 491,563 X rehto secruos rehto—sdnuf tnerruC 391,1 270,21 X sevreser—sdnuf tnerruC 74 63 X tnemecalper dna lawener rof sevreseR 2 783,038,1 *puorg dnuf knalB ,2,$ 33,13 latoT .000,591$—sdnuf dilavni dna ;noillim 2.61$—ALCU fo stnedutS detaicossA ;noillim 6.81$—waL fo egelloC sgnitsaH ;noillib 8.1$—seirotarobal lanoitan :smeti gniwollof eht fo pu edam era puorg dnuf a tuohtiw seirtnE * Blank page inserted for reproduction purposes only. 116 California State Auditor Report 2006-103 APPenDIX e University of California Compensation Descriptions Compared to the Descriptions We Use in This Report Table E on the following page compares compensation descriptions University of California (university) campuses use to those we use in Tables 2, 3, and 4 on pages 2, 23, and 24, respectively. In addition, this list shows how the university’s descriptions from Table A on page 46 fit into the compensation categories we use. Table E is organized alphabetically, first by campus and then by the compensation description contained in the Corporate Personnel System. Each description includes the total fiscal year 2004–05 compensation that the university paid to its employees. In some cases the compensation paid is a negative amount, which simply represents an offset to other compensation items. At the end of Table E are reconciling items for several entities that contract with the university for payroll services and for the payroll of the Department of Energy National Laboratories, whose employees we excluded from Appendix A, as noted in the Scope and Methodology. California State Auditor Report 2006-103 11 TABLE E Compensation Descriptions Used by the University of California Compared With Categories Used in This Audit for Tables of Systemwide Compensation Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures Berkeley ACAD HOUSING ALLOWANCE Housing allowance $ 1,904,291 ADDITIONAL COMPENSATION Other miscellaneous payments 38,362 ADDL COMP-ADMIN-SUM SR Other miscellaneous payments 765,454 ADDL COMP-SUMMER RESEARCH Additional teaching and research 23,417,221 BY AGREEMENT By agreement 1,578,676 BY AGREEMENT-NO RTMT By agreement 9,911,424 CERTIFICATION PAY POLICE Differential pay 119,688 CLIN NURSE II/III DIFF Differential pay 2,370 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 164,529 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 18,305 EXTENDED SICK LEAVE GROSS Leave 359,544 HEALTH SCI COMP Health Sciences Compensation Plan (HSCP) and other 52,000 medical-related pay HOLIDAY PREMIUM PAY Differential pay 468 HONORARIUM Tips, honoraria, and continuing education 119,524 LUMP SUM NOT COVERED COMP Lump-sum payments 1,056,064 LUMP SUM PAYMENT Lump-sum payments 1,800 NRA PDS FELLOW/SCHOLAR Fellowship and scholarship 1,374,314 OVERTIME DOUBLE Overtime, comp time, and call-back pay 72,207 OVERTIME HALF Overtime, comp time, and call-back pay 254 OVERTIME PREMIUM Overtime, comp time, and call-back pay 883,782 OVERTIME STRAIGHT Overtime, comp time, and call-back pay 2,377,718 PAY IN LIEU OF NOTICE Severance pay 2,232 PDS-FELLOW/SCHOLAR DIFF Fellowship and scholarship 68,924 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 2,894,995 PERQ DED-MEALS/HOUSE Perquisite deductions (1,532,946) PERQ-MEMO-HSG-MEALS Other perquisites 123,768 PERQ-MEMO-MEALS Other perquisites 144,633 POSTDOC FRGN INSUR OFFSET Fellowship and scholarship 49,486 POSTDOC NRES INSUR OFFSET Fellowship and scholarship 13,968 POSTDOC RES INSUR OFFSET Fellowship and scholarship 120,028 POST-DOC RESIDENT Fellowship and scholarship 2,362,868 REDUCTION IN TIME PROGRAM Base pay (3,787,816) REG PAY-ASST PROF-STAFFNG Base pay 13,141,273 REG-NOT SUBJ RTMT/FICA Base pay 9 REGULAR PAY Base pay 704,318,966 REGULAR PAY RETRO Base pay 3,704 RELOCATION INCENTIVE PYMT Relocation incentive 167,735 SAB LV-IN-RESIDENCE Sabbatical leave 449,616 SAB LV-NOT-IN-RESIDENCE Sabbatical leave 10,927,862 SAFETY WRKRS CMP-TX EXMPT Base pay 23,792 11 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures SEVERANCE PAY Severance pay $ 511,045 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 405,989 SHIFT DIFFERENTIAL Differential pay 349,242 SHIFT DIFFERENTIAL LEAD Differential pay 12,599 SHIFT DIFF-NO RTMT/Y FICA Differential pay 35,563 SMG HOUSING ALLOWANCE Housing allowance 13,875 SPECIALTY PAY-POLICE Differential pay 38,090 STIPEND Stipend 3,165,828 SUMMER DIFF-STIPEND Stipend 56,666 SUMMER SESSION Additional teaching and research 3,302,174 SUMMER SESSION-RETIR Additional teaching and research 1,408,007 SUMMER STIPEND Additional teaching and research 114,714 TERMINAL TRIP BONUS PAY Leave payout 2,020 TERMINAL VACATION PAY Leave payout 3,595,339 TIME ON CALL Overtime, comp time, and call-back pay 57,714 UNEX PAYMENT-AMOUNT University extension 5,450,312 WORKERS COMP REFUND Base pay (552,977) Davis ADD’L COMP AMOUNT-UNEX Additional teaching and research 6,371 ADDL COMP RES BYA Additional teaching and research 1,212,772 ADDL COMP RESEARCH Additional teaching and research 8,525,233 ADD’L COMP UNEX-RATE Additional teaching and research 285,242 BY AGREEMENT PAYMENT By agreement 5,779,989 CERTIFICATION DIFFERENT Differential pay 695,591 CLIN ENTERPRISE INCENT PR Bonus 1,634,444 CLIN NURSE DIFFERENTIAL Differential pay 112,497 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 397,222 CONSULTING-AMOUNT By agreement 16,750 EMPLOYEE RECOGNITION AWD Bonus 1,362,980 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 35,664 EXTENDED SICK LEAVE GROSS Leave 158,612 FY 11 MO FACULTY REG Base pay 7,692,480 FY 11 MO OFF SCALE Off-scale/non-base pay 578,293 HONORARIUM Tips, honoraria, and continuing education 218,138 HSCP BY AGREE (NO RET) HSCP and other medical-related pay 4,089,438 HSCP BY AGREE-RET (T) HSCP and other medical-related pay 14,493,523 HSCP REG COMP-RET (T) HSCP and other medical-related pay 11,815,924 HSCP SALARY DISCLOS-RET/N HSCP and other medical-related pay (166,722) INTERN BY AGREEMENT HSCP and other medical-related pay 296,950 LUMP SUM PAYMENT-N Lump-sum payments 992,932 LUMP SUM PAYMENT 0 S/T Lump-sum payments 371,796 MED COMP PLAN DIFF HSCP and other medical-related pay 38,947,477 MED COMP PLAN SCALE 4 HSCP and other medical-related pay 1,630,610 MED COMP PLAN SCALE 5 HSCP and other medical-related pay 1,405,381 MED COMP PLAN SCALE 6 HSCP and other medical-related pay 2,448,812 MED COMP PLAN SCALE 7 HSCP and other medical-related pay 44,885 continued on the next page California State Auditor Report 2006-103 11 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures MED COMP PLAN SCALE 8 HSCP and other medical-related pay $ 1,361,474 MED COMP PLAN SCALE 9 HSCP and other medical-related pay 215,000 MIN CALL BACK 1.5X O/T Overtime, comp time, and call-back pay C599,458 MIN CALL BACK-1X O/T Overtime, comp time, and call-back pay 54,365 MIN CALL BACK-REGULAR Overtime, comp time, and call-back pay 64,787 NIGHT SHIFT DIFFERENTIAL Differential pay 4,036,785 NRA PDS FELLOW/SCHOLAR Fellowship and scholarship 527,538 OFF SCALE COMPENSATION Off-scale/non-base pay 7,682,228 OTHER FELSHP/NON-REPTBLE Fellowship and scholarship 1,565,741 OTHER FELSHP/REPORTABLE Fellowship and scholarship 1,065,202 OVERTIME AT DOUBLE Overtime, comp time, and call-back pay 740,832 OVERTIME AT HALF Overtime, comp time, and call-back pay 1,197,102 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 11,187,417 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 4,445,548 PDS-FELLOW/SCHOLAR DIFF Fellowship and scholarship 8,797 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 1,749,787 PERQ HORSE BOARDING* Other perquisites 5,940 PERQUISITE-DEDUCTION Perquisite deductions (1,323,962) PHYSICIAN NON-BASE HSCP and other medical-related pay 1,170,794 POSTDOCTORAL FELLOWSHIP Fellowship and scholarship 413,175 REDUCTION IN TIME PROGRAM Base pay (1,445,370) REDUCTION IN TIME-SHIFT Base pay (4,731) REFERRAL BONUS Hiring, referral, and retention incentives 10,500 REGULAR PAY Base pay 1,025,680,081 RELIEF LUNCH PAYMENT Overtime, comp time, and call-back pay 108,201 SABB. LEAVE-NOT IN RES Sabbatical leave 7,504,692 SABBATICAL LEAVE-IN RES Sabbatical leave 571,882 SAFETY DISABILITY BYA Base pay 1,907 SEVERANCE PAY Severance pay 140,625 SEVERANCE-HLTH SCI COMP Severance pay 504,298 SEVERENCE PAY-EXECUTIVE Senior management group severance pay 51,007 SHIFT DIFFERENTIAL Differential pay 3,282,305 SHIFT OVERTIME PREMIUM Overtime, comp time, and call-back pay 611,399 SHIFT OVERTIME STRAIGHT Overtime, comp time, and call-back pay 197,708 SIGN-ON BONUS Hiring, referral, and retention incentives 220,750 SPECIAL PERFORMANCE AWARD Bonus 571,198 SPECIALTY PAY-POLICE Differential pay 18,842 STIPEND Stipend 5,117,901 SUMMER SESSION BY AGREEMT Additional teaching and research 1,406,074 SUMMER SESSION STP Additional teaching and research 783,727 SUPPLEMENTAL MILITARY PAY Leave 55,626 TERMINAL TRIP BONUS PAY Leave payout 4,541 TERMINAL VACATION PAY Leave payout 7,486,753 TIME ON CALL RATE 1 Overtime, comp time, and call-back pay 1,852,283 TRANSCRIPTIONISTS By agreement 52,947 TRANSITIONAL HSG ALLOWNCE Housing allowance 1,802,267 * According to the university, this item pertains to two equestrian instructors who board their horses at the Davis campus. 120 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures TRAVEL OF INDEFINITE DUR Differential pay $ 33,413 UNEX PAYMENT-AMOUNT Additional teaching and research 2,624,170 UNION BUSINESS LEAVE Leave 48,040 UNION BUS-LV DIFFERENTIAL Differential pay 29 WEEKEND SHIFT DIFF. Differential pay 911,617 WORKER’S COMP-DIFFERENT’L Base pay 822 WORKERS COMPENSATN REFUND Base pay (710,748) WORKER’S COMP-SAFETY Base pay 143,929 Irvine ADDL COMP ADMIN-BY AGREE By agreement 8,500 ADD’L COMP ADMINISTRATIVE Other miscellaneous payments 887,159 ADDL COMP RSCH CAP-BYA Additional teaching and research 7,289 ADD’L COMP-MISC Other miscellaneous payments 315,407 ADD’L COMP-RESEARCH Additional teaching and research 10,268,206 ADD’L COMP-UNCOVERED Other miscellaneous payments 6,452 ADD’L COMP-UNEX AMOUNT Additional teaching and research 464,012 BEREAVEMENT Leave 191,641 BONUS LEAVE TAKEN Leave 323,182 BY AGREE RET=NO HSCP and other medical-related pay 545 BY AGREEMENT By agreement 928,251 BY AGREEMENT WRITING PROJ By agreement 265,485 CALL BACK PREM Overtime, comp time, and call-back pay 202,864 CALL BACK STRAIGHT Overtime, comp time, and call-back pay 88 CERTIFICATION DIFF Differential pay 167,346 CERTIFICATION DIFF-OCRS Differential pay 831 CERTIFICATION PAY POLICE Differential pay 57,007 CHARGE NURSE DIFFERENTIAL Differential pay 334,599 CHARGE NURSE DIFF-OCRS Differential pay 4,163 COMP TIME PAID Overtime, comp time, and call-back pay 84,209 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 227,790 EDUCATION-CONTINUING Tips, honoraria, and continuing education 362,657 EDUCATION-OFFSITE Tips, honoraria, and continuing education 524,496 EDUCATION-ONSITE Tips, honoraria, and continuing education 403,676 EVENING SHIFT Differential pay 1,257,573 EVENING SHIFT BEN Differential pay 3,952 EVENING SHIFT-OCRS Differential pay 7,925 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 8,916 EXTRA PAYMENT BONUS Bonus 228,422 EXTRA SHIFT DIFFERENTIAL Differential pay 511,200 FACULTY HOUSING ALLOWANCE Housing allowance 1,236,534 FLOATING HOLIDAY Leave 453,038 HEALTH SCIENCE Z PAYMENT HSCP and other medical-related pay 11,290,234 HLTH SCI Z (ADMIN) HSCP and other medical-related pay 831,002 HLTH SCI Z (AWARDS) HSCP and other medical-related pay 15,586 HLTH SCI Z (CONSULTING) HSCP and other medical-related pay 441,170 HLTH SCI Z (RESEARCH) HSCP and other medical-related pay 46,474 continued on the next page California State Auditor Report 2006-103 121 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures HLTH SCI Z (TEACHING/CME) HSCP and other medical-related pay $ 159,522 HOLIDAY PAY Differential pay 6,060,267 HONORARIUM Tips, honoraria, and continuing education 33,365 HSCP DIFF COV HSCP and other medical-related pay 9,556,112 HSCP DIFF COV-A HSCP and other medical-related pay 423,700 HSCP DIFF DPT HSCP and other medical-related pay 7,689,075 HSCP DIFF DPT-A HSCP and other medical-related pay 494,194 HSCP DIFFERENTIAL-1 HSCP and other medical-related pay 41 HSCP DIFFERENTIAL-3 HSCP and other medical-related pay 129 HSCP DIFFERENTIAL-5 HSCP and other medical-related pay (82) HSCP NEGOTIATED HSCP and other medical-related pay 23,705,751 HSCP NEGOTIATED HSCP and other medical-related pay 17,520 HSCP NEGOTIATED-A HSCP and other medical-related pay 852,532 INCENTIVE AWARD Bonus 1,896,372 JURY DUTY Base pay 127,339 LEAVE WITH PAY-OTHER Leave 381,084 LUMP SUM PAYMENT Lump-sum payments 894,918 LUMP SUM PAYMENT Lump-sum payments 30,255 MC TERM VAC PAYOFF Leave payout 14,222 MILITARY LEAVE Leave 13,441 NIGHT SHIFT Differential pay 1,534,197 NIGHT SHIFT BEN Differential pay 5,291 NIGHT SHIFT-OCRS Differential pay 9,799 NON-PRODUCTIVE TIME Base pay 169,423 ON CALL 20% Overtime, comp time, and call-back pay 57,078 ON CALL 25% Overtime, comp time, and call-back pay 25,006 ON CALL FLAT RATE Overtime, comp time, and call-back pay 42,554 ON CALL/CALL BACK PREM Overtime, comp time, and call-back pay 4,296 ORIENTATION Base pay 1,583,654 OTS-HOLIDAY PREMIUM Overtime, comp time, and call-back pay 659,313 OVERTIME AT DOUBLE Overtime, comp time, and call-back pay 607,886 OVERTIME AT HALF Overtime, comp time, and call-back pay 18,503 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 8,528,392 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 2,900,668 PAY IN LIEU OF NOTICE Severance pay 13,217 PDS-EMPLOYEE SUPPLEMENT Other perquisites 41,547 PERQUISITE-DEDUCTION Perquisite deductions (672,246) PERSONAL USE OF AUTO Automobile allowance 6,119 PRIVATE PRACTICE PAYMENT HSCP and other medical-related pay 1,036,472 PRIZE-NON WORK RELATED Bonus 60 PTO-SCHEDULED Leave 1,011,394 PTO-UNSCHEDULED Leave 144,497 RECREATION PROG INSTRUCT By agreement 268,512 REDUCTION IN TIME PROGRAM Base pay (1,355,169) REE-WEEK DAY-DAY Base pay 4,093,189 REE-WEEK DAY-EVENING Base pay 1,276,338 122 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures REE-WEEK DAY-NIGHT Base pay $ 467,047 REE-WEEKEND-DAY Base pay 795,122 REE-WEEKEND-EVENING Base pay 305,639 REE-WEEKEND-NIGHT Base pay 299,045 REG PAY-RECALL Base pay 1,455,393 REGULAR BASE Base pay 41,019,621 REGULAR BASE-A By agreement 357,181 REGULAR PAY Base pay 473,961,532 REGULAR PAY Base pay 1,913,992 REGULAR PAY-POST MD HSCP and other medical-related pay 23,097,770 RELOCATION INCENTIVE PYMT Relocation incentive 29,169 SABB LEAVE SUPPLEMENT Sabbatical leave 20,482 SABBATICAL-FULL PAY Sabbatical leave 3,466,704 SABBATICAL-IN RESIDENCE Sabbatical leave 405,540 SABBATICAL-PARTIAL PAY Sabbatical leave 560,232 SEVERANCE PAY Severance pay 259,872 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 176,248 SHIFT DIFFERENTIAL Differential pay 91,415 SHIFT DIFFERENTIAL-OCRS Differential pay 326 SHIFT OVERTIME PREMIUM Overtime, comp time, and call-back pay 1,125 SHIFT OVERTIME STRAIGHT Overtime, comp time, and call-back pay 21 SICK FAMILY UNSCHEDULED Leave 357,194 SICK FMLA FAMILY Leave 5,707 SICK FMLA SELF Leave 18,363 SICK LEAVE EXTENDED Leave 231,986 SICK LEAVE-FAMILY Leave 344,247 SICK LEAVE-SCHED Leave 1,150,118 SICK LEAVE-UNSCHED Leave 2,270,861 SICK LEAVE-WKRS COMP Leave 3,043 SIGNING BONUS PAYMENT Hiring, referral, and retention incentives 156,263 SPECIALTY PAY-POLICE Differential pay 19,104 STAFF PHYSICIAN NEGO HSCP and other medical-related pay 643,781 STAFF PHYSICIAN NEGO HSCP and other medical-related pay 181,759 STIPEND Stipend 2,196,590 STIPEND-POST MD Stipend 18,467 SUMMER DIFFERENTIAL STIP Stipend 63,983 SUMMER SESSION-‘C’ Additional teaching and research 640,531 SUMMER SESSION TEACHING Additional teaching and research 1,796,382 SUPPLEMENTAL MILITARY PAY Leave 26,383 TAIL INSURANCE PAYMENT HSCP and other medical-related pay 32,002 TAXABLE REMOVAL EXPENSE Moving expense reimbursement 27,331 TELECOMMUTING Base pay 103,976 TERMINAL TRIP BONUS PAY Leave payout 1,914 TERMINAL VACATION PAY Leave payout 3,527,577 TIME ON CALL Overtime, comp time, and call-back pay 595,848 TIP INCOME Tips, honoraria, and continuing education 6,744 continued on the next page California State Auditor Report 2006-103 123 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures TRAVEL ADVANCE WRITEOFF Differential pay $ 1,240 TRAVEL OF INDEFINITE DUR Differential pay 36,180 TRIAL REGULAR PAY Base pay 111,921 UNEX-AMOUNT University extension 2,624,986 UNION BUSINESS LEAVE Leave 11,634 VACATION TIME OFF Leave 6,897,361 WEEKEND DIFFERENTIAL Differential pay 507,917 WEEKEND DIFFERENTIAL-OCRS Differential pay 3,204 WORKERS COMP Base pay 295,256 WORKERS’ COMP REFUND Base pay (251,040) Los Angeles, Merced, and the Office of the President ADD’L COMP AMOUNT-UNEX University extension 8,270,243 ADD’L COMP-ADMINISTRAVIVE Other miscellaneous payments 3,988,813 ADD’L COMP-RESEARCH Additional teaching and research 21,485,793 ADD’L COMP-SELF SUPP Additional teaching and research 53,805 ADD’L COMP-TEACHING Additional teaching and research 399,155 AT .50 NIGHT-CNA Differential pay 235 AT .50 OT-CNA Overtime, comp time, and call-back pay 488 AT .50 REGULAR-CNA Differential pay 8,832 AT .50 SHIFT-CNA Differential pay 16 ATHLETICS AUTO ALLOWANCE Automobile allowance 143,623 BY AGREEMENT HOUSE ALLOW Housing allowance 2,299,700 BY AGREEMENT PAYMENT By agreement 9,061,008 BYA WITH FIXED TAXES By agreement 787,783 BYA WITH RETIREMENT (U) By agreement 128,146 CALL BACK .50 REG Overtime, comp time, and call-back pay 262,495 CALL BACK .50-NIGHT Overtime, comp time, and call-back pay 4,854 CALL BACK .50-SHIFT Overtime, comp time, and call-back pay 2,591 CERTIFICATION DIFF. Differential pay 385,453 CERTIFICATION PAY POLICE Differential pay 113,025 COMP TIME PAY MED CTR. Overtime, comp time, and call-back pay 162,073 COMP TIME PAY-OFF Overtime, comp time, and call-back pay 325,214 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 7,242 CONSECUTIVE DAY PREMIUM Differential pay 505,916 CONSECUTIVE HOURS PAY Differential pay 45,816 DUAL EMP EXEMPT EE Overtime, comp time, and call-back pay 11,180 DUAL EMP STRAIGHT Overtime, comp time, and call-back pay 451,715 DUAL EMPLOYMENT 1 1/2 TIM Overtime, comp time, and call-back pay 463,937 EMP TIPS REPORTED Tips, honoraria, and continuing education 168 EMP. TIPS BY AGREEMENT Tips, honoraria, and continuing education 97,779 EMPLOYEE HOUSING ALLOWANC Housing allowance 162,690 EMPLOYEE REFERRAL BONUS Hiring, referral, and retention incentives 248,500 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 193,581 EXTENDED SICK LEAVE GROSS Leave 725,465 EXTRA SHIFT DIFFS @ $120 Differential pay 85,020 EXTRA SHIFT DIFFS @ $180 Differential pay 235,100 12 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures EXTRA SHIFT DIFFS @ $200 Differential pay $ 61,600 HARBOR-OV/VA-N HSCP and other medical-related pay 400,732 HOLIDAY PAY MED CTR Overtime, comp time, and call-back pay 2,141,446 HOLIDAY PREMIUM PAY Differential pay 329 HS-DELTA-Z-N HSCP and other medical-related pay 26,591,384 HS-SB LV-PT-ADL BSE TO .3 HSCP and other medical-related pay 1,257 HS-SB LV-PT-BASE 11MO-T HSCP and other medical-related pay 7,016 HS-TEMP-ADDL BASE TO.3-T HSCP and other medical-related pay 26,480,261 HS-TEMP-ADDL BASE>.3-T HSCP and other medical-related pay 14,016,324 HS-TEMP-BASE-11MO-T HSCP and other medical-related pay 102,969,338 HS-TEMP-BASE-BYA-N HSCP and other medical-related pay 23,750 HS-TEMP-DELTA-BYA-N HSCP and other medical-related pay 9,200,399 HS-TEMP-DELTA-N HSCP and other medical-related pay 60,776,994 HS-TEMP-DELTA-RET-T HSCP and other medical-related pay 155,093 HS-TEMP-DELTA-SFT-T HSCP and other medical-related pay 44,204 HS-TEMP-REG-BYA-T HSCP and other medical-related pay 411,325 INCENTIVE AWARD PROGRAM Bonus 2,567,923 INCHARGE PAY Differential pay 803,433 LEAVE WITH PAY Leave 863,420 LOCAL AWARD ACADEMIC Bonus 136,210 LOCAL EMPLOYEE AWARD Bonus 4,421,395 LUMP SUM-BASE PAYMENT Lump-sum payments 395,270 LUMP SUM PAYMENT Lump-sum payments 36,532 LUMP SUM POLICE Lump-sum payments 39,567 MANAGEMENT PERFORMANCE PL Bonus 40,880 MILITARY LEAVE-SPEC PAY Leave 48,929 NIGH SHIFT DIFF. OT. STR. Overtime, comp time, and call-back pay 285,218 NIGHT AT .50-ADMIN Differential pay 54,158 NIGHT OT .50-ADMIN Overtime, comp time, and call-back pay 2,846 NIGHT SHIFT DIFF. Differential pay 6,373,400 NIGHT SHIFT DIFF.OT.PREM Differential pay 110,491 NON EXCL MOVE EXP-PAY Moving expense reimbursement 153,468 NON-BASE PAY Off-scale/non-base pay 124,770 NON-CASH AWARDS Other perquisites 14,400 NURSES .50 NIGHT Differential pay 7,090 NURSES .50 REG Differential pay 510,307 NURSES .50 SHIFT Differential pay 7,072 NURSES RETENTION PROGRAM Hiring, referral, and retention incentives 130,000 ONE-ELEVENTH PAYMENT-N Additional teaching and research 97,388 OT .50 NIGHT-CNA Overtime, comp time, and call-back pay 15 OT AT .50 ADMIN Overtime, comp time, and call-back pay 89,332 OT AT DOUBLE W/RTRMNT Overtime, comp time, and call-back pay 652,093 OT NURSES .50-DAY Overtime, comp time, and call-back pay 12,549 OT NURSES .50-NIGHT Overtime, comp time, and call-back pay 119 OT NURSES .50-SHIFT Overtime, comp time, and call-back pay 234 OT ON CALL NIGHT .50 Overtime, comp time, and call-back pay 2,498 continued on the next page California State Auditor Report 2006-103 12 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures OT ON-CALL DAY .50 Overtime, comp time, and call-back pay $ 153,135 OT ON-CALL SHIFT .50 Overtime, comp time, and call-back pay 1,160 OVERTIME AT DOUBLE Overtime, comp time, and call-back pay 165,582 OVERTIME AT HALF Overtime, comp time, and call-back pay 79,120 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 16,508,453 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 6,368,167 PERQUISITE-FREE MEAL Other perquisites 5,867 PERQUISITE-DEDUCTION Perquisite deductions (1,615,067) REDUCTION IN TIME PROGRAM Base pay (3,260,120) REDUCTION IN TIME-SHIFT Base pay (30) REG AT .50 ADMIN Differential pay 1,360,797 REGULAR PAY Base pay 1,469,810,326 REGULAR PAY-ASST PROF Base pay 12,586,754 RELOCATION INCENTIVE PYMT Relocation incentive 347,632 RELOCATION INCENT-SPTAX Relocation incentive 281,147 SABBATICAL LEAVE-44% Sabbatical leave 364,639 SABBATICAL LEAVE-50% Sabbatical leave 193,053 SABBATICAL LEAVE-78% Sabbatical leave 93,823 SABBATICAL LEAVE-84% Sabbatical leave 62,651 SABBATICAL LEAVE-89% Sabbatical leave 151,884 SABBATICAL LEAVE-2/3 Sabbatical leave 642,806 SABBATICAL LEAVE-IN RES Sabbatical leave 59,675 SABBATICAL LV-SUPPLEMENT Sabbatical leave 93,690 SABBATICAL LV-SUPPLEMENT Sabbatical leave 245,692 SELF SUPPORT PROG-BYA 120 By agreement 1,032,702 SELF SUPPORT PROG-REG Base pay 2,649,276 SEVERANCE PAY Severance pay 1,308,072 SEVERANCE PAY Severance pay 14,404 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 934,982 SHIFT AT .50-ADMIN Differential pay 6,115 SHIFT DIFF. BYA Differential pay 3,300 SHIFT DIFF.-OVERTIME-PREM Overtime, comp time, and call-back pay 35,356 SHIFT DIFF.-OVERTIME-STRT Overtime, comp time, and call-back pay 91,819 SHIFT DIFF.-WEEKEND Differential pay 2,227,157 SHIFT DIFFERENTIAL Differential pay 2,130,611 SHIFT OT. 50 ADMIN Overtime, comp time, and call-back pay 588 SHIFT-PERM OT-WEEKEND Overtime, comp time, and call-back pay 110,484 SHIFT-STRAIGHT-OT-WEEKEND Overtime, comp time, and call-back pay 257,090 SPECIAL PERFORMANCE AWARD Bonus 501,035 SPECIALITY PAY-POLICE Differential pay 40,650 STIPEND Stipend 5,046,083 SUMMER SESSION Additional teaching and research 2,246,982 SUMMER SESSION VISITING Additional teaching and research 3,195,380 SUPPLEMENTAL MILITARY PAY Leave 64,260 TERMINAL TRIP BONUS PAY Leave payout 1,703 TERMINAL VACATION MED CTR Leave payout 1,705,656 126 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures TERMINAL VACATION PAY Leave payout $ 8,035,833 TIME ON CALL Overtime, comp time, and call-back pay 3,074,211 TRAVEL OF INDEFINITE DUR Differential pay 37,140 UNION BUSINESS LEAVE Leave 57,508 UNIVERSITY RELATIONS BONU Bonus 116,778 WEEKEND SHIFT STIPEND Stipend 33,900 WORKER’S COMP-SERVICES Base pay 44,953 WORKERS COMP REFUND Base pay (1,240,454) Riverside ADD’L COMP AMOUNT-UNEX Additional teaching and research 125 ADD’L COMP-RESEARCH Additional teaching and research 4,681,665 ADD’L COMP-TEACHING Additional teaching and research 1,107,354 ASST PROFESSOR Base pay 9,656,421 BY AGREEMENT PAYMENT By agreement 2,049,719 CERTIFICATION PAY POLICE Differential pay 44,650 COACHES-PHY ED Base pay 1,688,997 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 61,882 CONSULTING-RATED By agreement 13,343 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 24,654 EXTENDED SICK LEAVE GROSS Leave 146,101 HONORARIUM Tips, honoraria, and continuing education 24,697 HOUSING ALLOWANCE-TAXABLE Housing allowance 159,160 HSCP ADDL COVD (NO BEN) HSCP and other medical-related pay 125,621 HSCP WITH RET(NO BENEFIT) HSCP and other medical-related pay 17,695 INCENTIVE AWARD PROGRAM Bonus 3,000 INDIVIDUAL INCENTIV AWARD Bonus 618,063 LUMP SUM PAYMENT-ST Lump-sum payments 22,083 LUMP SUM PAYMENT-N Lump-sum payments 27,426 NRA PDS FELLOW/SCHOLAR Fellowship and scholarship 15,249 ON CALL TIME Overtime, comp time, and call-back pay 32,030 OVERTIME AT HALF Overtime, comp time, and call-back pay 4 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 264,360 OVERTIME STRAIGHT Overtime, comp time, and call-back pay 750,178 PDS-FELLOW/SCHOLAR DIFF Fellowship and scholarship 22,755 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 9,369 PERQUISITE-DEDUCTION Perquisite deductions (63,030) PROF DEVELOPMENT AWARD Bonus 1,130 REC PROGRAM INSTRUCTOR Base pay 97,520 REDUCTION IN TIME PROGRAM Base pay (722,867) REDUCTION IN TIME-SHIFT Base pay (264) REGULAR PAY Base pay 191,874,819 RELOCATION INCENTIVE PYMT Relocation incentive 87,542 SABB. LEAVE-NOT IN RES Sabbatical leave 2,400,993 SABBATICAL LEAVE-IN RES Sabbatical leave 248,397 SEVERANCE PAY Severance pay 547,190 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 190,883 continued on the next page California State Auditor Report 2006-103 12 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures SHCP BY-AGREE-NO RET HSCP and other medical-related pay $ 258,375 SHIFT DIFFERENTIAL Differential pay 116,887 SPECIAL PERFORMANCE AWARD Bonus 89,093 SPECIALTY PAY-POLICE Differential pay 13,700 STIPEND Stipend 1,178,228 STU HEALTH SERV-SPECIAL Base pay 13,170 SUMMER DIFFERENTIAL STIP Stipend 4,800 TEAM INCENTIV AWARD Bonus 53,835 TERMINAL TRIP BONUS PAY Leave payout 39,824 TERMINAL VACATION PAY Leave payout 1,235,057 TRAVEL OF INDEFINITE DUR Differential pay 57,399 UNEX PAYMENT-AMOUNT University extension 2,952,547 UNION BUSINESS LEAVE Leave 18,400 WORKERS COMP REFUND Base pay (117,142) Santa Barbara ACTIVE SRVC-MOD DUTIES Base pay 227,592 ADD’L COMP ADMINISTRATIVE Other miscellaneous payments 404,387 ADD’L COMP FELLOWSHIP Additional teaching and research 44,356 ADD’L COMP-RESEARCH Additional teaching and research 10,312,495 ADD’L COMP-TEACHING Additional teaching and research 2,519,664 ADD’L COMP-TEACHING-AMT Additional teaching and research 1,964,631 BY AGREEMENT PAYMENT By agreement 3,727,004 CERTIFICATION PAY POLICE Differential pay 44,363 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 469,029 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 26,748 EXTENDED SICK LEAVE GROSS Leave 50,506 HONORARIUM Tips, honoraria, and continuing education 12,885 INCENTIVE AWARD PROGRAM Bonus 2,156,902 LEAVE WITH SALARY Leave 701,994 LEAVE-CHILD BEARING Leave 6,071 LUMP SUM PAYMENT Lump-sum payments 11,263 OVERTIME AT STRAIGHT OVTM Overtime, comp time, and call-back pay 744,638 OVERTIME AT TIME & 1/2 OV Overtime, comp time, and call-back pay 184,578 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 20,867 PERQUISITE-DEDUCTION Perquisite deductions (124,789) REDUCTION IN TIME PROGRAM Base pay (1,692,149) REDUCTION IN TIME-SHIFT Base pay (347) REGULAR PAY Base pay 282,082,315 SABB LEAVE SUPPLEMENT Sabbatical leave 44,890 SABB. LEAVE-NOT IN RES Sabbatical leave 5,243,975 SABBATICAL LEAVE-IN RES Sabbatical leave 315,327 SAFETY W C CERT PAY POLIC Base pay 275 SAFETY WORKERS’ COMP Base pay 6,649 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 20,423 SEVERANCE PAY-NON EXEC Severance pay 146,185 SHIFT DIFFERENTIAL Differential pay 32,326 12 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures SHIFT DIFFERENTIAL-STAFF Differential pay $ 58,233 SPECIALTY PAY-POLICE Differential pay 14,700 STIPEND Stipend 2,359,798 SUPPLEMENTAL MILITARY PAY Leave 7,452 TERMINAL VACATION PAY Leave payout 1,103,914 TIME ON CALL RATE 1 Overtime, comp time, and call-back pay 95,207 TRAVEL OF INDEFINITE DUR Differential pay 40,351 UNEX PAYMENT-AMOUNT University extension 950,483 UNION BUSINESS LEAVE Leave 50,484 WORKERS COMP REFUND Base pay (142,998) Santa Cruz ADDL COMP-ADMIN Other miscellaneous payments 118,074 ADDL COMP-ADMIN-BYA By agreement 65,109 ADD’L COMP-RESEARCH Additional teaching and research 3,875,453 ADD’L COMP-TEACHING Additional teaching and research 28,870 ADD’L COMP-TEACHING-AMT Additional teaching and research 273,386 BY AGREEMENT By agreement 2,246,567 CERTIFICATION PAY POLICE Differential pay 24,425 COMMUNITY SERVICE-LIT TUT Base pay 2,277 COMMUNITY SERVICE-MATH TU Base pay 75,045 COMMUNITY SERVICE-MATH TU Base pay 18,239 COMMUNITY SERVICE-READ TU Base pay 35,578 COMMUNITY SERVICE-SCI TUT Base pay 15,011 COST SHARING-EMF Base pay 184,700 EDUCATION ABROAD DIRECTR Base pay 165,300 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 12,319 EXTENDED SICK LEAVE GROSS Leave 3,958 FACULTY AWARD PROGRAM Bonus 2,350 GENERAL COMMUNITY SVC W-S Base pay 11,709 GENERAL COMMUNITY SVC W-S Base pay 119,844 HOLIDAY PREMIUM PAY Differential pay 32,098 HOLIDAY TIME Differential pay 37,410 HONORARIUM Tips, honoraria, and continuing education 9,110 HOUSING ALLOWANCE Housing allowance 68,876 INCENTIVE AWARD PROGRAM Bonus 634,462 LEAVE WITH PAY Leave 972,242 LECTURER-THREE YEAR Base pay 5,139 LOCAL AWARD PROGRAM Bonus 648,055 LUMP SUM PAYMENT Lump-sum payments 12,657 OVERTIME AT HALF Overtime, comp time, and call-back pay 1,420 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 816,477 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 204,507 OVERTIME STR EXMPT EMPLEE Overtime, comp time, and call-back pay 15,095 PAY IN LIEU OF NOTICE Severance pay 41,599 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 88,810 PERQ-MEMO-HOUSING Housing allowance 68,315 continued on the next page California State Auditor Report 2006-103 12 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures PERQUISITE-DEDUCTION Perquisite deductions $ (24,337) REDUCTION IN TIME PROGRAM Base pay (623,071) REG CARPENTER Base pay 159,179 REG CARPENTER SPECIALIST Base pay 215,070 REG CARPENTER, LEAD Base pay 53,388 REG ELECTRICIAN Base pay 190,101 REG ELECTRICIAN SPECIALST Base pay 219,032 REG ELECTRICIAN, LEAD Base pay 58,368 REG HVAC MECHANIC Base pay 248,435 REG HVAC SPECIALIST Base pay 397,816 REG HVAC, LEAD Base pay 58,368 REG LOCKSMITH Base pay 50,580 REG LOCKSMITH, LEAD Base pay 47,165 REG PAINTER Base pay 147,834 REG PAINTER SPECIALIST Base pay 55,638 REG PAINTER, LEAD Base pay 51,322 REG PLUMBER Base pay 150,414 REG PLUMBER, LEAD Base pay 13,254 REG PLUMBER, SPECIALIST Base pay 119,460 REG POWER PLANT OP, LEAD Base pay 58,368 REG POWER PLANT OP, SPL Base pay 59,730 REG POWER PLANT OPERATOR Base pay 173,018 REGULAR PAY Base pay 199,583,088 RELOCATION INCENTIVE PYMT Relocation incentive 16,446 SAB LEAVE-BYA(T) Sabbatical leave 69,515 SABBATICAL LEAVE SUPP Sabbatical leave 8,470 SABBATICAL LV NOT RESID Sabbatical leave 3,289,838 SAFETY WORKERS COMP Base pay 14,619 SEVERANCE PAY Severance pay 164,389 SHIFT DIFFERENTIAL Differential pay 44,312 SHIFT DIFFERENTIAL SUB 1 Differential pay 102,088 SPECIALTY PAY-POLICE Differential pay 5,400 STIPEND Stipend 1,739,308 STUDENT AWARD PROGRAM Bonus 4,000 STUDENT BONUS PAYMENT Bonus 16,424 TERMINAL TRIP BONUS PAY Leave payout 821 TERMINAL VACATION PAY Leave payout 995,068 TRAVEL OF INDEFINITE DUR Differential pay 30,778 UNEX-AMOUNT University extension 2,074,076 UNION BUSINESS LEAVE Leave 60,992 WORKERS COMP REFUND Base pay (85,633) San Diego ADD’L COMP AMT UNEX/CME Additional teaching and research 473,947 AGENCY CAP X/BASE/REG HSCP and other medical-related pay 4,060,269 AGENCY CAP/Y PRIME HSCP and other medical-related pay 921,265 ASC-RESEARCH Additional teaching and research 10,964,742 130 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures ASC-RESEARCH-AMT Additional teaching and research $ 69,043 ASC-TEACHING Additional teaching and research 865,209 ASC AGENCY CAP Additional teaching and research 579,152 B/A-X/BASE AGENCY SUPPL Additional teaching and research 1,663,709 B/A-XP/BASE AGENCY PRIME Additional teaching and research 813,267 B/A-Y/DIFF AGENCY SUPPL HSCP and other medical-related pay 1,359,655 BONUS (HIRING & REF) Hiring, referral, and retention incentives 646,605 BONUS LEAVE PAYOUT Leave payout 359,815 BY AGREE SHIFT DIFF Differential pay 12,778 BY AGREEMENT By agreement 6,499,636 CERTIFICATION DIFF Differential pay 329,918 CERTIFICATION PAY POLICE Differential pay 66,251 CHAIR STIPEND Stipend 225,214 CHARGE NURSE DIFF Differential pay 542,396 CHG-NURSE DIFF OT PREMIUM Overtime, comp time, and call-back pay 14,937 CHG-NURSE DIFF OT STRT Overtime, comp time, and call-back pay 40,874 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 43,195 EXTENDED SICK LEAVE GROSS Leave 167,106 FELSHP/SCHLP Fellowship and scholarship 666,366 HEALTH SCIENCES DIFF-BYA HSCP and other medical-related pay 418,544 HSCP ADD’L COMP Y/DIFF HSCP and other medical-related pay 57,560 HSCP X/BASE HSCP and other medical-related pay 53,691,190 HSCP/ADD’L COV COMP HSCP and other medical-related pay 6,173,389 HSCP-RETIREMENT HSCP and other medical-related pay 12,306,814 INCENTIVE AWARD PROGRAM Bonus 3,874,069 INTERCAMPUS PAYMENT Other miscellaneous payments 20,468 LIEU OF NOTICE PAYMENT Severance pay 105,374 LUMP SUM-BASE PAYMENT Lump-sum payments 11,596 LUMP SUM PAYMENT Lump-sum payments 3,245,935 MSCCP Z-COMPONENT HSCP and other medical-related pay 25,990,933 NEGOTIATED DIFF HSCP and other medical-related pay 189,939 NEGOTIATED Y HSCP and other medical-related pay 14,252,019 NIH CAPX/BASE PRIME HSCP and other medical-related pay 2,190,555 NRA PDS FELLOW/SCHOLAR Fellowship and scholarship 4,956,458 ON CALL HALF OVERTIME Overtime, comp time, and call-back pay 43,408 ON CALL HALF REGULAR Overtime, comp time, and call-back pay 86,969 OVERTIME AT HALF Overtime, comp time, and call-back pay 4,914 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 11,272,119 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 3,369,069 OVERTIME DOUBLE Overtime, comp time, and call-back pay 337,896 PDS-FELLOW/SCHOLAR STP Fellowship and scholarship 3,047,559 PERQ-DED-OFFSET Other perquisites 1,499,905 PERQUISITE-DEDUCTION Perquisite deductions (1,574,610) RECOGNITION AWARD Bonus 5,375,217 RECREATION PAYMENTS By agreement 1,260,095 REDUCTION IN TIME PROGRAM Base pay (1,526,678) continued on the next page California State Auditor Report 2006-103 131 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures REGULAR PAY Base pay $762,349,851 REGULAR PAY ASST PROF Base pay 10,192,069 RELOCATION INCENTIVE PYMT Relocation incentive 1,705,505 REMOTE LOCATION ALLOWANCE Differential pay 481,685 SABBATICAL LEAVE Sabbatical leave 6,502,765 SABBATICAL LV SUPPLEMENT Sabbatical leave 258,965 SALARY DISC, OTHER HSCP and other medical-related pay (21,351) SETTLEMENT PAY Severance pay 82,078 SEVERANCE PAY Severance pay 517,893 SEVERANCE PAY EXEC Senior management group severance pay 344,971 SHIFT DIFF OVERTIME PREM Overtime, comp time, and call-back pay 77,454 SHIFT DIFF OVERTIME STRT Overtime, comp time, and call-back pay 242,819 SHIFT DIFFERENTIAL Differential pay 3,733,645 SPECIAL LUMP SUM Lump-sum payments 150,760 SPECIALITY POLICE PAY Differential pay 9,683 STIPEND Stipend 1,127,660 SUMMER REGULAR PACULTY Additional teaching and research 1,070,775 SUMMER VISITING FACULTY Additional teaching and research 453,855 SUPPLEMENTAL MILITARY PAY Leave 1,975 TERMINAL TRIP BONUS PAY Leave payout 2,303 TERMINAL VACATION PAY Leave payout 5,821,663 TIME ON CALL-TC1 Overtime, comp time, and call-back pay 1,722,237 UNEX BY AGREEMENT University extension 3,464,328 UNION BUSINESS LEAVE Leave 24,754 WEEKEND DIFF Differential pay 918,686 WKEND DIFF OT PREMIUM Overtime, comp time, and call-back pay 28,813 WKEND DIFF OVERTIME STRT Overtime, comp time, and call-back pay 88,592 WORKERS COMP REFUND Base pay (808,754) Y/DIFF AGENCY CAP HSCP and other medical-related pay 3,503,727 San Francisco BY AGREE EVENING SHIFT Differential pay 269,084 BY AGREE HSCP INCENTIVE HSCP and other medical-related pay 15,873,443 BY AGREE HSCP MISC HSCP and other medical-related pay 3,608,669 BY AGREE MSP PHYSICIAN HSCP and other medical-related pay 1,011,552 BY AGREE MSP PHYSN SHIFT HSCP and other medical-related pay 1,809 BY AGREE NIGHT SHIFT Differential pay 103 BY AGREE NOT SUBJ TO RET By agreement 5,128,464 BY AGREEMENT PAYMENT By agreement 2,908,260 BY AGREEMENT PAY-SPECIAL Bonus 1,090,236 BY AGREEMENT RTMT C By agreement 3,683,894 CERTIFICATION DIFF NURSES Differential pay 148,504 CERTIFICATION PAY POLICE Differential pay 50,300 CHARGE NURSE DIFFERENTIAL Differential pay 500,706 COMPENSATORY TIME PAID Overtime, comp time, and call-back pay 3,240 CONSECUTIVE PAY PREMIUM Differential pay 109,012 DOUBLE OT EVENING SHIFT Overtime, comp time, and call-back pay 23,115 132 California State Auditor Report 2006-103 Fiscal Year 200–0 Campus Description of Service Bureau of State Audits’ Category Expenditures DOUBLE OT NIGHT SHIFT Overtime, comp time, and call-back pay $ 81,480 EMPLOYEE REFERRAL BONUS Hiring, referral, and retention incentives 31,000 EXEC AUTOMOBILE ALLOWANCE Automobile allowance 26,748 EXTENDED SICK LEAVE GROSS Leave 1,118,989 HALF OT EVENING SHIFT Overtime, comp time, and call-back pay 117,076 HEALTH SCIENCE DIFF-BYA HSCP and other medical-related pay 208,086 HEALTH SCIENCE DIFF-RATE HSCP and other medical-related pay 11,095,614 HOLIDAY PREMIUM PAY Differential pay 984,864 HONORARIUM Tips, honoraria, and continuing education 584,138 HSCP ADD’L COMP-RET (C) HSCP and other medical-related pay 87,628,004 HSCP BY AGREE-RET HSCP and other medical-related pay 848,427 HSCP REG COMP-RET (T) HSCP and other medical-related pay 36,472,885 HSCP SALARY DIS-RATE/’C’ HSCP and other medical-related pay (50,498) INCENTIVE AWARD PROGRAM Bonus 9,797,082 LUMP SUM PAYMENT Lump-sum payments 19,260 MSP PHYSICIAN SHIFT HRLY HSCP and other medical-related pay 229,900 NON-BASE PAY Off-scale/non-base pay 2,879,752 ON CALL TIME Overtime, comp time, and call-back pay 108,451 OVERTIME AT DOUBLE Overtime, comp time, and call-back pay 586,284 OVERTIME AT HALF Overtime, comp time, and call-back pay 498,760 OVERTIME AT STRAIGHT Overtime, comp time, and call-back pay 9,466,561 OVERTIME AT TIME & 1/2 Overtime, comp time, and call-back pay 2,190,541 PAY IN LIEU OF NOTICE Severance pay 61,557 PERQUISITE-DEDUCTION Perquisite deductions (58,745) PREM OT EVENING SHIFT Overtime, comp time, and call-back pay 245,014 REDUCTION IN TIME PROGRAM Base pay (945,743) REG PAY ASST PROF STAFFNG Base pay 741,162 REG SHIFT DIFF-NIGHT Differential pay 7,164,329 REG SHIFT DIFF-EVENING Differential pay 2,915,272 REGULAR PAY Base pay 955,100,901 SAFETY WORKERS COMP Base pay 208 SEVERANCE PAY-EXECUTIVE Senior management group severance pay 449,436 SPECIAL LUMP SUM Lump-sum payments 8,575 SPECIAL PERFORMANCE AWARD Bonus 858,201 SPECIALTY PAY-POLICE Differential pay 7,125 STIPEND Stipend 1,357,255 STIPEND WITH E/D FOR STAF Stipend 107,185 STRT OT EVENING SHIFT Overtime, comp time, and call-back pay 214,558 TERMINAL TRIP BONUS PAY Leave payout 1,401 TERMINAL VACATION PAY Leave payout 5,887,850 TIME ON CALL Overtime, comp time, and call-back pay 3,427,520 UNEX PAYMENT-AMOUNT University extension 1,500 WKEND SHIFT DIFFERENTIAL Differential pay 1,314,099 WORKERS COMP REFUND Base pay (1,125,611) Expenditures at other entities (Department of Energy National Laboratories, Hastings College of Law, Associated Students of the University of California at Los Angeles) $1,30,12,2 Total University of California Personnel Expeditures for Fiscal Year 200–0 $,2,,2 California State Auditor Report 2006-103 133 Blank page inserted for reproduction purposes only. 13 California State Auditor Report 2006-103 Agency Comments provided as text only University of California Office of the President 1111 Franklin Street Oakland, California 94607-5200 April 21, 2006 Ms. Elaine M. Howle State Auditor Bureau of State Audits 555 Capitol Mall, Suite 300 Sacramento, California 95814 Dear Ms. Howle: Thank you for the opportunity to review and comment on the audit report, “University of California: Stricter Oversight and Greater Transparency Are Needed to Improve Its Compensation Practices.” The Bureau of State Audits has conducted a professional review of the University’s compensation programs and disclosure practices, and we appreciate the extensive work involved to arrive at a constructive report. Together with the conclusions and recommendations from the Task Force on UC Compensation, Accountability and Transparency, and the other audits conducted on these issues, our efforts at compensation and disclosure reform will be well informed and guided by many useful recommendations. We accept the findings in your report. They are consistent with many of the observations recently reported by the Task Force and our own assessment of circumstances brought to light over the last several months. We agree with the Bureau on the need for and importance of stricter oversight and greater transparency, and we have already launched a number of efforts towards these ends. We appreciate the Bureau including in Table 1 a summary of these efforts to assist the readers of your report in putting the findings into a current context. We also appreciate the Bureau’s efforts in Table 2 and Appendix C to add clarity to amounts reported in the media that have been characterized as additional compensation received by University employees. We continue to be concerned about elements of compensation that have been mischaracterized in the media as bonuses, or hidden compensation, when in fact many of the elements are viewed within the University as regular pay for teaching and research, including during the summer or while on sabbatical, carrying out the core mission of the University and in compliance with compensation practices common to higher education. The Bureau’s reporting, while California State Auditor Report 2006-103 135 Ms. Elaine M. Howle April 21, 2006 Page 2 not completely aligned with the University treatment of all elements of compensation, is a step in the right direction in improving the public understanding of UC’s complex environment and resulting compensation programs. We accept the premises underlying the recommendations contained in the audit report. As discussed with BSA management and staff, they will be combined with recommendations flowing from the various efforts underway all of which will be addressed in an integrated manner to ensure that revised policies, procedures, and practices are coordinated, clear, and not contradictory. We will inform you about additional actions taken and the progress being made in responding to these recommendations through the follow-up process. I am confident you will find that the actions we take, whether or not they implement the recommendation precisely as stated in the report, will be fully responsive to the spirit and principle behind your recommendations. I have made the University’s commitment, and my personal commitment to improving the University’s compensation and disclosure practices very clear, and as you are aware, our Regents have been very much engaged in these matters. In closing, I want to express again our appreciation to the management and staff of the Bureau of State Audits for their diligent and professional efforts in conducting this audit. Sincerely, (Signed by Robert C. Dynes) Robert C. Dynes 136 California State Auditor Report 2006-103 cc: Members of the Legislature Office of the Lieutenant Governor Milton Marks Commission on California State Government Organization and Economy Department of Finance Attorney General State Controller State Treasurer Legislative Analyst Senate Office of Research California Research Bureau Capitol Press California State Auditor Report 2006-103 13