Report 2016-125.2 All Recommendation Responses

Report 2016-125.2: The University of California Office of the President: Increasing Costs and Scheduling Delays Have Hampered the UCPath Project and Originally Anticipated Savings Are Unlikely to Materialize (Release Date: August 2017)

Recommendation #1 To: University of California Board of Regents

To ensure that they are able to exercise necessary oversight for the university's significant IT projects, the regents should develop status reporting standards for the Office of the President and all university locations to follow by December 2017. Such reporting standards should apply to all university IT projects with more than a specified cost and, at a minimum, should establish the frequency with which the Office of the President and all university locations must report to the regents. Such updates should occur at least three times per calendar year and coincide with regents' meetings to allow for oral discussion.

60-Day Agency Response

The University will develop a policy for large IT projects of $25M or greater that will establish (1) the frequency with which the Office of the President and all university locations report project status to the regents, (2) the types of disclosures the Office of the President and all university locations must present about each IT project to the regents, and (3) the types of significant project risks the Office of the President and all university locations must disclose and steps being taken to mitigate the risks on significant IT projects. Regental approval for the new policy is targeted for November 2017.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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


Recommendation #2 To: University of California Board of Regents

To ensure that they are able to exercise necessary oversight for the university's significant IT projects, the regents should develop status reporting standards for the Office of the President and all university locations to follow by December 2017. Such reporting standards should apply to all university IT projects with more than a specified cost and, at a minimum, should establish the types of disclosures the Office of the President and all university locations must present about each IT project including, but not limited to, changes in scope, projected cost, and schedule.

60-Day Agency Response

The University will draft a policy for large IT projects of $25M or greater that will establish (1) the frequency with which the Office of the President and all university locations report project status to the regents, (2) the types of disclosures the Office of the President and all university locations must present about each IT project to the regents, and (3) the types of significant project risks the Office of the President and all university locations must disclose and steps being taken to mitigate the risks on significant IT projects. Regental approval for the new policy is targeted for November 2017.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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


Recommendation #3 To: University of California Board of Regents

To ensure that they are able to exercise necessary oversight for the university's significant IT projects, the regents should develop status reporting standards for the Office of the President and all university locations to follow by December 2017. Such reporting standards should apply to all university IT projects with more than a specified cost and, at a minimum, should establish the types of significant project risks the Office of the President and all university locations must disclose. The updates should also describe the actions the Office of the President and all university locations are taking to mitigate the risks and the potential effects of those risks on a project's cost, schedule, and scope.

60-Day Agency Response

The University will draft a policy for large IT projects of $25M or greater that will establish (1) the frequency with which the Office of the President and all university locations report project status to the regents, (2) the types of disclosures the Office of the President and all university locations must present about each IT project to the regents, and (3) the types of significant project risks the Office of the President and all university locations must disclose and steps being taken to mitigate the risks on significant IT projects. Regental approval for the new policy is targeted for November 2017.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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


Recommendation #4 To: University of California

To ensure that it fully reports the cost of the IT projects, the Office of the President should develop the cost reporting guidelines by December 2017 for UCPath and other significant IT projects across all university locations. These cost guidelines should identify cost categories at both the Office of the President and university locations to ensure that the estimates capture and communicate all development and implementation costs. In addition, the Office of the President should produce cost reports to share with stakeholders at least quarterly.

60-Day Agency Response

The University will develop cost reporting guidelines using internal best practices and review of the State's IT manual. Once finalized we will publish as part of a new IT project "handbook" to be distributed to locations, centrally posted on our UC-IT portal & referenced in UC-IT staff and manager meetings.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has not yet developed the recommended cost reporting guidelines or cost reports.


Recommendation #5 To: University of California

To ensure that it consistently follows best practices related to project management, the Office of the President should develop and implement guidelines for IT project development by June 2018. The guidelines should apply to all IT projects undertaken by any university location with a cost estimate of at least $5 million or more and should include a means to assess schedules for reasonableness, and requirements for the creation and maintenance of an integrated schedule and resource plan for each project.

60-Day Agency Response

In consultation with the UC Regents, the University will use a threshold of $25M budget as the definition for significant IT projects for which new guidelines for IT project development will apply. We will use UCPath, campus and California State practices as guidance to develop a high-level IT project methodology for projects to follow describing the methodology, guidelines and practices.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has consulted with the regents and decided on a project level threshold, but it has not developed and implemented the recommended guidelines for IT project development. In addition, we have a concern that the Office of the President is intending to apply a threshold that is too high, $25 million rather than the $5 million that we recommended, which could result in many significant IT projects not being subject to the IT project development guidelines.


Recommendation #6 To: University of California

To ensure that it consistently follows best practices related to project management, the Office of the President should develop and implement guidelines for IT project development by June 2018. The guidelines should apply to all IT projects undertaken by any university location with a cost estimate of at least $5 million or more and should include requirements for rigorous change management processes that establish a means of assessing the implications of changes to a project's scope, cost, and schedule.

60-Day Agency Response

In consultation with the UC Regents, the University will use a threshold of $25M budget as the definition for significant IT projects for which new guidelines for IT project development will apply. The University will develop change management process guidelines using internal best practices and review of the State's IT manual. Once finalized we will publish as part of the new guidelines for IT project development to be distributed to locations, centrally posted on our UC-IT portal and referenced in UC-IT staff and manager meetings.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has consulted with the regents and decided on a project level threshold, but it has not developed and implemented the recommended guidelines for IT project development. In addition, we are concerned that the Office of the President is intending to apply a threshold that is too high, $25 million rather than the $5 million that we recommended, which could result in many significant IT projects not being subject to the IT project development guidelines.


Recommendation #7 To: University of California

To ensure that it consistently follows best practices related to project management, the Office of the President should develop and implement guidelines for IT project development by June 2018. The guidelines should apply to all IT projects undertaken by any university location with a cost estimate of at least $5 million or more and should include procedurally sound requirements for identifying, reviewing, and resolving risks to a project.

60-Day Agency Response

In consultation with the UC Regents, the University will use a threshold of $25M budget as the definition for significant IT projects for which new guidelines for IT project development will apply. The University will develop risk management process guidelines using internal best practices and review of the State's IT manual. Once finalized we will publish as part of the new guidelines for IT project development to be distributed to locations, centrally posted on our UC-IT portal and referenced in UC-IT staff & manager meetings.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has consulted with the regents and decided on a project level threshold, but it has not developed and implemented the recommended guidelines for IT project development. In addition, we are concerned that the Office of the President is intending to apply a threshold that is too high, $25 million rather than the $5 million that we recommended, which could result in many significant IT projects not being subject to the IT project development guidelines.


Recommendation #8 To: University of California

To ensure that it consistently follows best practices related to project management, the Office of the President should develop and implement guidelines for IT project development by June 2018. The guidelines should apply to all IT projects undertaken by any university location with a cost estimate of at least $5 million or more and should include IV&V to oversee the technical aspects of project development.

60-Day Agency Response

In consultation with the UC Regents, the University will use a threshold of $25M budget as the definition for significant IT projects for which new guidelines for IT project development will apply. It is the University's current and proposed continued practice to use diligent governance as a way to identify and bring in IV&V third-parties for specific topics and situations as appropriate or necessary. We will include in new guidelines for IT project development factors to consider in determining the need for IV&V on an IT project.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has consulted with the regents and decided on a project level threshold, but it has not developed and implemented the recommended guidelines for IT project development. In addition, we are concerned that the Office of the President is intending to apply a threshold that is too high, $25 million rather than the $5 million that we recommended, which could result in many significant IT projects not being subject to the IT project development guidelines.


Recommendation #9 To: University of California

The Office of the President should require that all university locations follow best practices by ensuring that each location creates a deliverable expectations document for each IT contract similar to the documents the State's management framework describes. The Office of the President should establish this requirement by December 2017. The deliverable expectations document should, at a minimum, identify the deliverables for each milestone and define the scope, content, entrance criteria, acceptance criteria, and development schedule for each deliverable.

60-Day Agency Response

In consultation with the UC Regents, the University will use a threshold of $25M budget as the definition for significant IT projects for which new guidelines for IT project development will apply. The University will utilize existing "deliverable expectations documents" from existing significant IT projects to develop a guideline outlining what should be in the document and how it should incorporated into the UC-vendor contract template. Once finalized we will publish as part of the new guidelines for IT project development to be distributed to locations, centrally posted on our UC-IT portal and referenced in UC-IT staff and manager meetings.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

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

The Office of the President has consulted with the regents and decided on a project level threshold, but it has not developed and implemented the recommended guidelines for IT project development. In addition, we are concerned that the Office of the President is intending to apply a threshold that is too high, $25 million rather than the $5 million that we recommended, which could result in many significant IT projects not being subject to the IT project development guidelines.


All Recommendations in 2016-125.2

Agency responses received are posted verbatim.


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