Report 2012-113 Recommendation 30 Responses

Report 2012-113: California State University's Extended Education: It Is Unclear Whether Supplanting Occurred, and Campuses Did Not Always Document Their Adherence to Laws, Policies, and Procedures (Release Date: December 2013)

Recommendation #30 To: Long Beach, California State University

To strengthen its oversight of payments made from the CERF trust account, CSU Long Beach should immediately take the following action: review and document the appropriateness of the campus partners' allocation percentages using current data and, if needed, adjust the percentages.

Agency Response*

Pre-audit, the campus partners shared a percentage of revenue to offset the indirect cost they incurred to support a program.

Based on the audit Recommendation #9, we now have a revised cost allocation plan. The campus partner indirect costs incurred to support a program are now contained within an indirect cost pool (called Campus Partner Overhead) and assigned to a program using the auditor's recommended direct cost allocation method.

Supporting Documentation: Attachment B

  • Response Type†: 1-Year
  • Completion Date: December 2014
  • Response Date: December 2014

California State Auditor's Assessment of Status: Fully Implemented

Agency Response*

Corrective action still in progress.

  • Response Type†: 6-Month
  • Estimated Completion Date: December 10, 2014
  • Response Date: June 2014

California State Auditor's Assessment of Status: Partially Implemented

Agency Response*

The CCPE is currently reviewing campus partner allocation percentages to ensure that the rates are appropriate. A draft analysis will be completed in the coming months. Numerous meetings will need to be conducted with partners to conclude the final analysis and agreement on potential adjustments.

  • Response Type†: 60-Day
  • Estimated Completion Date: June 1, 2014
  • Response Date: February 2014

California State Auditor's Assessment of Status: Partially Implemented

All Recommendations in 2012-113

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.

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