Report 2018-127 All Recommendation Responses

Report 2018-127: California State University: It Failed to Fully Disclose Its $1.5 Billion Surplus, and It Has Not Adequately Invested in Alternatives to Costly Parking Facilities (Release Date: June 2019)

Recommendation for Legislative Action

To ensure transparency about CSU's available financial resources, the Legislature should require the Chancellor's Office to do the following, effective September 1, 2019:

- Beginning in 2019 and no later than November 30 each year, provide relevant parties, including the Department of Finance and the Joint Legislative Budget Committee, with the current balance of the discretionary surplus that CSU has accumulated in its outside investment account that is attributable to its operating fund and to any other funds that are relevant to CSU's budget requests; the balances of the surplus amounts in those funds at the end of the prior fiscal year; the projected balances of the surplus amounts expected to remain in those funds at the end of the current fiscal year; and the amount of, justification for, and safeguards over any funds that CSU deems a reserve for economic uncertainty.

- Include in the capital improvement plans it submits annually to the Legislature information about the current balance of the surplus in CSU's outside investment account that is attributable to its operating fund or other funds that hold operating revenue from tuition, as well as the projected balance of the surplus amounts expected to remain in those funds at the end of the current fiscal year.

- Include in its consultations with the student association the full amount of the discretionary surplus CSU has accumulated to date in its outside investment account that is attributable to its operating fund and any other funds that hold tuition revenue; the rate of growth of these surplus amounts over the last three fiscal years; an estimate of the portion of the surplus amounts that came from tuition; the dollar amount to date that CSU is obligated to spend to pay for goods and services it has already received or expenses that are tied to existing contracts; a projection of the dollar amount of the surplus that will be available for campuses to spend at their discretion at the end of the current fiscal year; and the amount of, justification for, and safeguards over any funds that CSU deems a reserve for economic uncertainty.

Description of Legislative Action

As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.

Description of Legislative Action

As of June 20, 2021, the Legislature has not taken action to address this specific recommendation.

AB 1836 (Quirk-Silva, 2020) would have required the Chancellor's Office to, on or before November 30 of each year, report to the Legislature the current balance and projections of the surplus the CSU has accumulated for discretionary spending on operations and instruction, and an estimate of how much tuition has contributed to the surplus. This bill died in the Assembly Higher Education Committee.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

AB 1836 (Quirk-Silva) would require the Chancellor's Office to, on or before November 30 of each year, report to the Legislature the current balance and projections of the surplus the CSU has accumulated for discretionary spending on operations and instruction, and an estimate of how much tuition has contributed to the surplus. As of June 20, 2020, this bill is pending in the Assembly Higher Education Committee.

California State Auditor's Assessment of 1-Year Status: Legislation Introduced

Description of Legislative Action

As of December 2019, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

The Legislature has not taken any action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #2 To: University, California State

To improve CSU's financial transparency with students and other stakeholders, the Chancellor's Office, with the approval of the trustees, should revise CSU policy by October 2019 to require that it publish information about CSU's discretionary surplus. At a minimum, the Chancellor's Office should do the following:

- Identify the full amount of discretionary surplus that CSU has accumulated to date in its outside investment account that is attributable to its operating fund or other funds that hold tuition revenue, an estimate of the portion of the surplus amounts that came from tuition, and the dollar amount to date that CSU is obligated to spend to pay for goods and services it has already received or expenses that are tied to existing contracts.

- Report this information to the trustees when it presents them with a summary of CSU's reserves, at least annually.

- Ensure that this information is easily accessible on CSU's website and publicly available to all stakeholders, along with the information CSU provides about tuition rates and policies.

6-Month Agency Response

At the September 24-25, 2019 Board of Trustees meeting, the trustees were presented with information on the operating fund designated balances and reserves, which included a breakdown of total amounts related to short term obligations, capital, and operating activities. The information was presented again at the November 19-20, 2019 meeting, and estimated the portion of reserves that came from tuition by stating that the designated balances and reserves were accumulated primarily from tuition. Because state statutes require that we spend the general fund appropriation throughout the year, any designated balances or reserves available on June 30 of each year are derived primarily from tuition and fee revenue. The information presented also noted that the reserve policy was revised. The revised policy requires that the designated balances and reserve information be shared with the trustees at least annually and included on the CSU's transparency portal so it is publicly available to stakeholders. Further, included in the 2020-2021 Tuition Proposal Prepared for the California State Student Association is a discussion about the use of operating fund designated balances and reserves as one of the alternatives for addressing a potential operating budget shortfall. This discussion further demonstrates the California State University's commitment to financial transparency.

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

During CSU's September 2019 Committee on Finance meeting, the Chancellor's Office provided the trustees with information about its operating fund designated reserves, including a breakdown of amounts set aside for short-term obligations, capital projects, and designated reserves for operations. The Chancellor's Office has included information about the designated balances and reserves in its 2020-21 Operating Budget, which the trustees reviewed and approved in November 2019. During the November 2019 Committee on Finance meeting, the Chancellor's Office also presented information to the trustees stating that if funding is not secured for the operating budget request through state general fund or new tuition resources, campuses would have to redirect funding from designated balances and reserves, among other things. It has also included information about the designated balances and reserves in its online Financial Transparency Portal. Further, the Chancellor's Office revised its reserve policy in November 2019 to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders.

60-Day Agency Response

The Chancellor's Office is drafting policy updates to implement the recommendation. We anticipate being able to update our policy and website by October 2019 and make a report to the trustees at the November 2019 meeting.

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

Recommendation #3 To: University, California State

To improve CSU's financial transparency with students and other stakeholders, the Chancellor's Office, with the approval of the trustees, should revise CSU policy by October 2019 to require that it publish information about CSU's discretionary surplus. At a minimum, the Chancellor's Office should revise its reserve policy to establish and justify a minimum sufficient level of reserve for economic uncertainty and require the Chancellor's Office to provide additional oversight to ensure that CSU maintains that level. This oversight should include monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty.

Annual Follow-Up Agency Response From September 2023

The Chancellor's Office continues to assert this recommendation is fully implemented (as of August 2020). We have incorporated additional policy changes requiring campuses to notify the Chancellor's Office of planned uses of reserves during the budget year.

In addition, the Chancellor's Office continues to notify the Board of Trustees of uses of the reserve for economic uncertainties.

Moreover, details regarding designated balances and reserves continue to be published on the CSU's financial transparency portal.

We believe these steps, along with those we have reported in prior responses, are sufficient to satisfy appropriate oversight responsibilities and we do not plan to take any further action.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

We continue to assess this recommendation as partially implemented. We stand by our recommendation that it should include in its policy additional monitoring and oversight of the reserve for economic uncertainty. In November 2019, the Chancellor's Office revised its reserve policy to establish that reserves for economic uncertainty should accumulate a minimum of three months, and a maximum of six months of the annual operating budget. It also revised its policy to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders. However, it did not include additional oversight to ensure that CSU maintains the minimum sufficient level of reserve for economic uncertainty.

The executive order that the Chancellor's Office references in its prior response states that campus presidents shall ensure that sufficient reserves are established for funds operated outside the state treasury system, in accordance with CSU policies, standards, and definitions. Hence, the Chancellor's Office could update its policy to provide additional oversight of the reserve, including monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty. The Chancellor's Office should also obtain approval from the trustees for the revised policy.

Annual Follow-Up Agency Response From October 2022

The Chancellor's Office continues to assert this recommendation is fully implemented. We have incorporated additional policy changes requiring campuses to notify the Chancellor's Office of planned uses of reserves during the budget year.

In addition, the Chancellor's Office continues to notify the Board of Trustees of uses of the reserve for economic uncertainties.

Moreover, details regarding designated balances and reserves continue to be published on the CSU's financial transparency portal.

We believe these steps, along with those we have reported in prior responses, satisfy appropriate oversight responsibilities.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

We continue to assess this recommendation as partially implemented. We stand by our recommendation that it should include in its policy additional monitoring and oversight of the reserve for economic uncertainty. In November 2019, the Chancellor's Office revised its reserve policy to establish that reserves for economic uncertainty should accumulate a minimum of three months, and a maximum of six months of the annual operating budget. It also revised its policy to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders. However, it did not include additional oversight to ensure that CSU maintains the minimum sufficient level of reserve for economic uncertainty.

The executive order that the Chancellor's Office references in its prior response states that campus presidents shall ensure that sufficient reserves are established for funds operated outside the state treasury system, in accordance with CSU policies, standards, and definitions. Hence, the Chancellor's Office could update its policy to provide additional oversight of the reserve, including monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty. The Chancellor's Office should also obtain approval from the trustees for the revised policy.

Annual Follow-Up Agency Response From October 2021

The Chancellor's Office continues to assert this recommendation is fully implemented. We have incorporated additional policy changes requiring campuses to notify the Chancellor's Office of planned uses of reserves during the budget year.

In addition, the Chancellor's Office continues to notify the Board of Trustees of uses of the reserve for economic uncertainties. For example, in the first several months of the pandemic, the California State University (CSU) drew upon the reserves on a one-time basis to maintain operations in programs impacted by COVID-19. The 2020-21 year-end balances and explanatory detail were provided to the Board of Trustees in written and presentation form at their September 2021 meeting.

Moreover, details regarding designated balances and reserves continue to be published on the CSU's financial transparency portal.

We believe these steps, along with those we have reported in prior responses, satisfy appropriate oversight responsibilities.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although CSU provided us with meeting minutes showing that it provided the trustees with information about the campuses' use of designated balances and reserves for economic uncertainty, we continue to assess this recommendation as partially implemented. We stand by our recommendation that it should include in its policy additional monitoring and oversight of the reserve for economic uncertainty. In November 2019, the Chancellor's Office revised its reserve policy to establish that reserves for economic uncertainty should accumulate a minimum of three months, and a maximum of six months of the annual operating budget. It also revised its policy to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders. However, it did not include additional oversight to ensure that CSU maintains the minimum sufficient level of reserve for economic uncertainty.

The executive order that the Chancellor's Office references in its response states that campus presidents shall ensure that sufficient reserves are established for funds operated outside the state treasury system, in accordance with CSU policies, standards, and definitions. Hence, the Chancellor's Office could update its policy to provide additional oversight over the reserve, including monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty. The Chancellor's Office should also obtain approval from the trustees for the revised policy.

Annual Follow-Up Agency Response From November 2020

We have highlighted policy changes requiring campuses to notify the Chancellor's Office of planned uses of reserves during the 2020-2021 budget year and beyond. Campus budget submittals pursuant to these policy changes are reviewed by the systemwide budget office and approved by the chief financial officer at the Chancellor's Office.

Furthermore, as noted in our previous responses, Executive Order 1000- Delegation of Fiscal Authority and Responsibility requires that campus presidents provide effective oversight of all state funds held by the campuses and all funds held in a fiduciary capacity, including approval of the use of reserves for economic uncertainty.

With regard to the California State University's commitment to financial transparency, each year the Chancellor's Office provides a tuition proposal report to the California State Student Association that includes a discussion about operating fund designated balances and reserves, including the reserves for economic uncertainty, and designated balances and reserves are listed as one alternative for addressing any potential operating budget shortfall.

We believe the steps above enforce appropriate oversight responsibilities recommended by the California State Auditor that do not contradict existing Standing Orders of the Board of Trustees delegating authority and responsibility to the Chancellor and presidents for oversight of business and financial affairs of the 23 campuses. Further, these oversight actions avoid unnecessary and redundant work at the systemwide level to monitor transactions that are already reviewed by the chief financial officer of the California State University annually, reported in the annual audited financial statements, and published on the CSU Financial Transparency website. We respectfully request that the State Auditor consider reassessing this recommendation as fully implemented based on the information provided.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

We continue to assess this recommendation as partially implemented. In its annual update, the Chancellor's Office provided a copy of campus budget submission instructions for fiscal year 2020-21. The instructions included information about budget codes campuses can use to identify that they are balancing revenues and expenditures in the CSU operating fund by drawing on their reserves for economic uncertainty. However, the Chancellor's Office did not indicate that it will use the budget information to notify the board of trustees about CSU's use of reserves. We maintain that there is a need for additional oversight from the board of trustees regarding CSU's accumulation and use of reserves. Specifically, we stand by our recommendation that the Chancellor's Office obtain the trustees' approval of CSU's reserve policy and notify the trustees of uses of the reserves for economic uncertainty.

1-Year Agency Response

The Chancellor's Office continues to assert this recommendation is fully implemented. We disagree that additional monitoring and oversight of the reserve for economic uncertainty is necessary. As noted previously, with regard to approval for the use of reserves for economic uncertainty, Executive Order 1000, issued pursuant to the Standing Orders of the Board of Trustees (BOT) and the California Education Code, delegates authority to the campus presidents for effective oversight of all state funds held by the campuses and all funds held in a fiduciary capacity. In addition, campuses prepare an annual budget submission that includes information about their reserves for economic uncertainty and this information is reviewed by the systemwide budget office and must be approved by the chief financial officer at the Chancellor's Office.

Moreover, each year since 2016, the Chancellor's Office has provided a tuition proposal report to the California State Student Association. The proposal includes a discussion about the use of operating fund designated balances and reserves, including the reserves for economic uncertainty and further demonstrates the California State University's commitment to financial transparency. The designated balances and reserves are listed as one alternative for addressing a potential operating budget shortfall.

We believe these steps satisfy appropriate oversight responsibilities. The additional monitoring and oversight recommended contradicts the Standing Orders of the BOT delegating authority and responsibility to the Chancellor and presidents. In addition, the recommendation would result in significant and unnecessary work at the systemwide level to monitor such transactions, which are already reported in the audited financial statements, on the CSU Financial Transparency website and reviewed by the Chief Financial Officer of the California State University annually in response to the CSU policy on designated balances and reserves.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

We continue to assess this recommendation as partially implemented. We stand by our recommendation that it should include in its policy additional monitoring and oversight of the reserve for economic uncertainty. In November 2019, the Chancellor's Office revised its reserve policy to establish that reserves for economic uncertainty should accumulate a minimum of three months, and a maximum of six months of the annual operating budget. It also revised its policy to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders. However, it did not include additional oversight to ensure that CSU maintains the minimum sufficient level of reserve for economic uncertainty.

The executive order that the Chancellor's Office references in its response states that campus presidents shall ensure that sufficient reserves are established for funds operated outside the state treasury system, in accordance with CSU policies, standards, and definitions. Hence, the Chancellor's Office could update its policy to provide additional oversight over the reserve, including monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty. The Chancellor's Office should also obtain approval from the trustees for the revised policy.

6-Month Agency Response

The Chancellor's Office revised the reserve policy to require the publication of information about the designated balances and reserves and include information about a minimum sufficient level for reserves for economic uncertainty. The policy was presented at the November 2019 Board of Trustees meeting. Oversight of the reserve balances is achieved via the annual reporting requirements and sharing the information with the trustees annually. With regard to approval for the use of reserves for economic uncertainty, Executive Order 1000, Delegation of Fiscal Authority and Responsibility, issued pursuant to Standing Orders of the Board of Trustees and the California Education Code, delegates authority to the campus president for effective oversight of all state funds held by the campus and all funds held in a fiduciary capacity. In addition, campuses prepare an annual budget submission that includes information about their reserves for economic uncertainty and this information is reviewed by the systemwide budget office and must be approved by the chief financial officer at the Chancellor's Office.

Moreover, each year since 2016, the Chancellor's Office has provided a tuition proposal report to the California State Student Association. The proposal includes a discussion about the use of operating fund designated balances and reserves, including the reserves for economic uncertainty and further demonstrates the California State University's commitment to financial transparency. The designated balances and reserves are listed as one alternative for addressing a potential operating budget shortfall.

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

In November 2019, the Chancellor's Office revised its reserve policy to establish that reserves for economic uncertainty should accumulate a minimum of three months, and a maximum of six months of the annual operating budget. It also revised its policy to specify that the Chancellor's Office will annually share information about designated balance and reserve levels with trustees and other stakeholders. The Chancellor's Office should update its policy to provide additional oversight over the reserve, including monitoring, approving, and notifying the trustees of any uses of the reserve for economic uncertainty. The Chancellor's Office should also obtain approval from the trustees for the revised policy.

60-Day Agency Response

The Chancellor's Office is drafting policy updates to implement the recommendation.

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

Recommendation for Legislative Action

To ensure that students have equitable access to campus and that campuses provide the most cost-effective mix of parking and alternate transportation options, the Legislature should require the Chancellor's Office to include the following information related to transportation, by campus, in its comprehensive five-year capital improvement plan:

- The number of parking facilities each campus intends to construct over the next five years and the alternate transportation strategies that the campus considered and implemented in determining the need for those parking facilities.

- The total annual cost for each alternate transportation strategy the campuses considered and implemented compared to the annual cost of constructing, operating, and maintaining a new parking facility.

- The cost per student served by those alternate transportation strategies compared to the cost per student of constructing, operating, and maintaining a new parking facility.

- The number of students served by each of those alternate transportation strategies compared to the number of students to be served by a new facility.

- Information on whether and to what extent alternate transportation strategies have decreased parking demand in the last three years and whether the campus has demonstrated that the parking demand justifies a new parking facility.

- A cost-benefit analysis showing the appropriate mix of transportation strategies to ensure that the campus provides students with the most cost-effective access.

Description of Legislative Action

As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

As of September 1, 2022, the Legislature has not taken action to address this specific recommendation.

Description of Legislative Action

As of June 20, 2021, the Legislature has not taken action to address this specific recommendation.

AB 1836 (Quirk-Silva, 2020) would have required the CSU Board of Trustees to include in the CSU Five-Year Capital Plan specified information relating to the costs and usage of its parking facilities and of alternative transportation strategies considered by campuses in determining the need for those parking facilities. This bill died in the Assembly Higher Education Committee.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

AB 1836 would require the CSU Board of Trustees to include in the CSU Five-Year Capital Plan specified information relating to the costs and usage of its parking facilities and of alternative transportation strategies considered by campuses in determining the need for those parking facilities. As of June 20, 2020, this bill is pending in the Assembly Higher Education Committee.

California State Auditor's Assessment of 1-Year Status: Legislation Introduced

Description of Legislative Action

As of December 2019, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

The Legislature has not taken any action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #5 To: University, California State

To ensure that campuses thoroughly investigate and consider alternate transportation strategies, the Chancellor's Office should immediately enforce its policy and require campuses to submit the following information when they request to build new parking facilities:

- Up-to-date master plans and transportation management plans that include as key components their plans for implementing alternate transportation strategies.

- Information on whether and to what extent their alternate transportation strategies have decreased parking demand and evidence that projected parking demand justifies building a new parking facility.

Annual Follow-Up Agency Response From October 2020

The Chancellor's Office previously provided two examples demonstrating implementation of this recommendation. Since our last response, the Chancellor's Office received a request from a campus to make parking lot improvements as part of a larger project. The request did not include required information such as an up-to-date master plan and transportation management plan, or information on whether and to what extent their alternative transportation strategies have decreased parking demand and evidence that projected parking demand justifies the improvements. The Chancellor's Office informed the campus that its submission lacked required information and the campus subsequently removed the parking improvements from the scope of work.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

During its 60-day response, the Chancellor's Office demonstrated that it was taking steps to implement the recommendation. For one campus requesting to build a new parking structure, the Chancellor's Office provided information on to what extent their alternate transportation strategies decreased parking demand. The Chancellor's Office also provided evidence that it followed up with another campus to provide additional information related to parking demand and alternate transportation. In its October 2020 annual follow up response, the Chancellor's Office provided one additional example that it enforced the Transportation and Parking policy when a campus requested to reconstruct parking lots as part of a campus project. The Chancellor's Office informed the campus that it did not provide a required parking feasibility study, and ultimately the campus did not move forward with plans to reconstruct the parking lots.

1-Year Agency Response

The Chancellor's Office continues to assert that this recommendation is fully implemented. Since our previous response, the Chancellor's Office issued a new Transportation and Parking Policy in March 2020 that requires campuses to submit the information recommended by the State Auditor when requesting to build a new parking facility. In addition, we will continue the practice of enforcing the policy requirements, as we did in the two examples provided in our 60-day response, but there have been no additional submissions from campuses requesting to build new parking structures. Moreover, given the current environment surrounding COVID-19 and the likelihood that more courses may be offered online in the future, we believe it is unlikely that campuses will be submitting requests to build new parking structures in the near future. We respectfully request that the State Auditor consider reassessing this recommendation as fully implemented based on the examples provided previously as well as the new policy issued in March 2020.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

During its 60-day response, the Chancellor's Office demonstrated that it is taking steps to implement the recommendation. For one campus requesting to build a new parking structure, the Chancellor's Office provided information on to what extent their alternate transportation strategies decreased parking demand. The Chancellor's Office also provided evidence that it followed up with another campus to provide additional information related to parking demand and alternate transportation. In its six-month and 1-year responses, the Chancellor's Office did not provide additional examples because there had not been additional requests from campuses. We will assess the Chancellor's Office's actions to implement this recommendation during its next 1-year response.

6-Month Agency Response

The Chancellor's Office continues to assert that this recommendation is fully implemented. We will continue the practice of enforcing the policy requirements, but there have been no additional submissions from campuses requesting to build new parking structures and we do not know when any future submissions may occur.

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

During its 60-day response, the Chancellor's Office demonstrated that it is taking steps to implement the recommendation. For one campus requesting to build a new parking structure, the Chancellor's Office provided information on to what extent their alternate transportation strategies decreased parking demand. The Chancellor's Office also provided evidence that it followed up with another campus to provide additional information related to parking demand and alternate transportation. In its six-month response, the Chancellor's Office did not provide additional examples because there had not been additional requests from campuses. We will assess the Chancellor's Office's actions to implement this recommendation during its 1-year response.

60-Day Agency Response

In July 2019, Chancellor's Office representatives met with campus parking directors to discuss the implementation of the audit recommendations. In addition, the CSU's division of Capital Planning, Design and Construction (CPDC) has taken steps to ensure more meticulous implementation of CSU policy. For example, for a proposed parking structure at the Fullerton campus, CPDC notified campus representatives of the additional information they needed to provide in order to proceed with the process. Further, for a proposed parking structure at the Dominguez Hills campus, CPDC sent a detailed memo to the campus interim vice president outlining additional issues the campus must address before proceeding further with the project.

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

The Chancellor's Office has demonstrated that it is taking steps to implement the recommendation. For one campus requesting to build a new parking structure, the Chancellor's Office provided information on to what extent their alternate transportation strategies decreased parking demand. The Chancellor's Office also provided evidence that it followed up with another campus to provide additional information related to parking demand and alternate transportation. The Chancellor's Office should continue this practice and provide additional examples in its six-month response to our recommendations.

Recommendation #6 To: University, California State

The Chancellor's Office should update its policy by October 2019 to require campuses to submit the following information when requesting to build a new parking facility:

- The total annual cost to implement each alternate transportation strategy compared to the annual cost of constructing, operating, and maintaining a new parking facility.

- The cost per student served by those strategies compared to the cost per student of constructing, operating, and maintaining a new parking facility.

- The number of students served by each of those strategies compared to the number of students served by the new facility.

- Information, including participation data, on how the campuses have implemented alternate transportation strategies during the last three years.

1-Year Agency Response

The Chancellor's Office issued a new Transportation and Parking Policy in March 2020. The policy includes a Parking Feasibility Study Scope of Work Template that addresses each of the elements outlined in the recommendation.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The Chancellor's Office issued a new Transportation and Parking Policy, which references a Parking Feasibility Scope of Work Template and states that the information requested is considered sufficient to comply with the requirements of the policy. The template addresses each of the elements listed in our recommendation.

6-Month Agency Response

The Chancellor's Office has drafted a revised policy to address the recommendation. The draft policy is undergoing review and is expected to be finalized by the end of January 2020. In addition, the division of Capital Planning, Design, and Construction at the Chancellor's Office has hired a transportation analyst whose primary job duty is to analyze the effectiveness of campus transportation and parking programs and promote the lowest cost/preferred alternatives.

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

60-Day Agency Response

The Chancellor's Office has drafted and communicated for review policy updates to implement the recommendation with the primarily affected campus staff and their management. Comments on the policy were solicited to ensure the feasibility of the specific requirements in the drafted policy. Final adoption of the policy is expected in October 2019.

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

Recommendation #7 To: University, California State

The Chancellor's Office should not approve any request to build a new parking facility unless the requesting campus has submitted this information (recommendations 5 and 6) and the Chancellor's Office has reviewed and approved it.

Annual Follow-Up Agency Response From October 2020

As originally reported in August 2019, the CSU's division of Capital Planning, Design and Construction (CPDC) has taken steps to ensure more meticulous implementation of existing CSU policy, as demonstrated in examples provided to the State Auditor at that time. In addition, the Chancellor's Office issued a new Transportation and Parking Policy in March 2020 that requires campuses to submit the information recommended by the State Auditor when requesting to build a new parking facility.

Since our last response, the Chancellor's Office received a request from a campus to make parking lot improvements as part of a larger project. The request did not include required information such as an up-to-date master plan and transportation management plan, or information on whether and to what extent their alternative transportation strategies have decreased parking demand and evidence that projected parking demand justifies the improvements. The Chancellor's Office informed the campus that its submission lacked required information and the campus subsequently removed the parking improvements from the scope of work.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

In its annual update response, the Chancellor's Office provided an example that it is has implemented this recommendation. The Chancellor's Office received a request for a campus to reconstruct parking facilities as part of a campus project. The Chancellor's Office informed the campus that it did not provide a required parking feasibility study, and ultimately the campus did not move forward with plans to reconstruct the parking lots.

1-Year Agency Response

As originally reported in August 2019, the CSU's division of Capital Planning, Design and Construction (CPDC) has taken steps to ensure more meticulous implementation of existing CSU policy, as demonstrated in examples provided to the State Auditor at that time. In addition, the Chancellor's Office issued a new Transportation and Parking Policy in March 2020 that requires campuses to submit the information recommended by the State Auditor when requesting to build a new parking facility.

California State Auditor's Assessment of 1-Year Status: Pending

The Chancellor's office has not received any requests to build new parking facilities since creating its updated policy in March 2020. We will assess the Chancellor's Office's actions to implement this recommendation in its next annual response.

6-Month Agency Response

The Chancellor's Office previously provided examples of follow up with two campuses to request additional information before the Chancellor's Office would approve requests to build new parking facilities. Since that time, the Chancellor's Office has drafted a revised policy to further address the information campuses must provide when requesting to build a new parking facility. The draft policy is undergoing review and is expected to be finalized by the end of January 2020.

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

60-Day Agency Response

The Chancellor's Office is already requiring the information outlined in recommendation 5 and has used those experiences to draft and circulate updated policy in response to recommendation 6. Once the draft policy and programs have been reviewed and accepted, we will formalize all of the new requirements for requests to build a parking facility.

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

Recommendation #8 To: University, California State

To ensure that campuses' alternate transportation committees are consistent systemwide, the Chancellor's Office should adopt systemwide policies, by October 2019, to detail the following:

- The frequency of required meetings. The policy should require meetings at least biennially.

- The composition of committee members. The policy should require that the committees include student representatives.

- The committees' responsibilities. These responsibilities should include the assessment of alternate transportation programs based on participation data and recommendations in the campuses' transportation studies.

1-Year Agency Response

The Chancellor's Office developed the Alternative Transportation Committee Charter Template for campuses to use to comply with the requirements of the CSU Transportation and Parking Policy, issued in March 2020. The template outlines the frequency of required meetings (at least once per semester), the composition of committee members (including student representatives), and the committees' responsibilities (including the assessment of alternative transportation programs).

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The Chancellor's Office issued a new Transportation and Parking Policy, which references an Alternative Transportation Committee Charter Template and states that the information requested is considered sufficient to comply with the requirements of the policy. The template addresses each of the elements listed in our recommendation.

6-Month Agency Response

The Chancellor's Office has drafted a revised policy to address the recommendation. The draft policy is undergoing review and is expected to be finalized by the end of January 2020.

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

60-Day Agency Response

The Chancellor's Office is drafting policy updates to implement the recommendation and will notify campuses of the new requirements once the policies are in place.

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

Recommendation #9 To: University, California State

The Chancellor's Office should require that, by October 2019, the campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites.

Annual Follow-Up Agency Response From September 2023

The Chancellor's Office developed an Alternative Transportation Committee Charter Template (template) for campuses to use which outlines the composition of committee members (including student representatives). By doing so, the Chancellor's Office is ensuring that campuses' alternative transportation committees are consistent systemwide. The template notes that regular meetings of the committee will occur at least once per semester and other meetings may be called as needed. The template also suggests that the chairperson assign a committee member the responsibility of recording meeting minutes. We believe these steps are sufficient and will not take any further action. We consider this recommendation resolved.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

The Transportation and Parking Policy and the Alternative Transportation Committee Charter Template do not require that campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites. The Chancellor's Office should revise its policy to require that campuses post these items on their websites.

Annual Follow-Up Agency Response From October 2022

The Chancellor's Office developed an Alternative Transportation Committee Charter Template (template) for campuses to use which outlines the composition of committee members (including student representatives). By doing so, the Chancellor's Office is ensuring that campuses' alternative transportation committees are consistent systemwide. The template notes that regular meetings of the committee will occur at least once per semester and other meetings may be called as needed. The template also suggests that the chairperson assign a committee member the responsibility of recording meeting minutes. We consider this recommendation resolved.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

The Transportation and Parking Policy and the Alternative Transportation Committee Charter Template do not require that campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites. The Chancellor's Office should revise its policy to require that campuses post these items on their websites.

Annual Follow-Up Agency Response From October 2021

The Chancellor's Office developed an Alternative Transportation Committee Charter Template (template) for campuses to use which outlines the composition of committee members (including student representatives). By doing so, the Chancellor's Office is ensuring that campuses' alternative transportation committees are consistent systemwide. The template notes that regular meetings of the committee will occur at least once per semester and other meetings may be called as needed. The template also suggests that the chairperson assign a committee member the responsibility of recording meeting minutes. We consider this recommendation resolved.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

The Transportation and Parking Policy and the Alternative Transportation Committee Charter Template do not require that campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites. The Chancellor's Office should revise its policy to require that campuses post these items on their websites.

Annual Follow-Up Agency Response From October 2020

The Chancellor's Office developed an Alternative Transportation Committee Charter Template (template) for campuses to use which outlines the composition of committee members (including student representatives). By doing so, the Chancellor's Office is ensuring that campuses' alternative transportation committees are consistent systemwide. The template notes that regular meetings of the committee will occur at least once per semester and other meetings may be called as needed. The template also suggests that the chairperson assign a committee member the responsibility of recording meeting minutes. We consider this recommendation resolved.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

The Transportation and Parking Policy and the Alternative Transportation Committee Charter Template do not require that campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites. The Chancellor's Office should revise its policy to require that campuses post these items on their websites.

1-Year Agency Response

The Chancellor's Office developed an Alternative Transportation Committee Charter Template (template) for campuses to use which outlines the composition of committee members (including student representatives). By doing so, the Chancellor's Office is ensuring that campuses' alternative transportation committees are consistent systemwide. The template notes that regular meetings of the committee will occur at least once per semester and other meetings may be called as needed. The template also suggests that the chairperson assign a committee member the responsibility of recording meeting minutes. We consider this recommendation resolved.

California State Auditor's Assessment of 1-Year Status: No Action Taken

The Transportation and Parking Policy and the Alternative Transportation Committee Charter Template do not require that campuses publish the names of the alternate transportation committee members, the committee meeting minutes, and the committee meeting schedule on their parking and transportation services websites. The Chancellor's Office should revise its policy to require that campuses post these items on their websites.

6-Month Agency Response

The Chancellor's Office has drafted a revised policy to address the recommendation. The draft policy is undergoing review and is expected to be finalized by the end of January 2020.

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

60-Day Agency Response

The Chancellor's Office is drafting policy updates to implement the recommendation and will notify campuses of the new requirements once the policies are in place.

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

Recommendation #10 To: University, California State

To ensure that campuses have a stable source of funding for investing in alternate transportation programs, the Chancellor's Office should update its policy by October 2019 to require campuses to include in their master plans or transportation management plans the potential revenue streams they will explore to secure a stable source for funding these programs. Examples of such revenue streams could include parking fees that they have reprioritized for alternate transportation, a stand-alone student transportation fee, local government partnerships or grants, or surplus parking revenue.

1-Year Agency Response

In March 2020, the Chancellor's Office issued a new Transportation and Parking Policy which includes a requirement for campuses to include in their transportation demand management plans the potential revenue streams for implementing alternative transportation programs.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The Chancellor's Office has drafted a revised policy to address the recommendation. The draft policy is undergoing review and is expected to be finalized by the end of January 2020.

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

60-Day Agency Response

The Chancellor's Office is drafting policy updates to implement the recommendation and will notify campuses of the new requirements once the policies are in place.

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

All Recommendations in 2018-127

Agency responses received are posted verbatim.