New Audit Reveals Secret $175 Million Stashed Away by California Universities

A report released by state auditor Elaine Howle on Tuesday revealed that the University of California amassed over $175 million in secret funds.

According to the San Francisco Chronicle, the exorbitant sum was acquired in part by overestimating the amount the university system needed and then spending less than budgeted from 2012 to 2016.

Fox News reported that the audit also revealed the system tampered with confidential surveys. Howle reportedly said answers that were critical of university president Janet Napolitano were deleted or changed. She said:

“I've never had a situation like that in my 17 years as state auditor. My attorneys are looking at whether any improper government activities occurred.”

Before assuming her position as university president, Napolitano served as secretary of Homeland Security under former President Barack Obama from 2009 to 2013.

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In a statement, she denied the $175 million amount and claimed it was closer to $38 million, which she categorized as a “modest amount” considering the size of the organization.

The statement explained that the $38 million, which accounts for roughly 10 percent of the budget, is set aside for “unexpected expenses.” Unexpected expenses like “support for undocumented students.”

However, since the funds were accrued at the cost of tuition hikes and taxpayer money, the board of regents doesn't seem to care whether it was $38 million or $175 million.

As Fox News reported, the board voted in January to increase the cost of tuition and fees from $12,294 to $12,630, the first spike in six years.

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Lt. Gov. Gavin Newsom (D-CA) is a member of the board and said in a statement:

It is outrageous and unjust to force tuition hikes on students while the UC hides secret funds, and I call for the tuition decision to come back before the Board of Regents for reconsideration and reversal.

In addition to an upset board of regents, California's employees don't seem pleased, either.

Kathryn Lybarger, president of California's largest employee union, blasted the university president's office for “operating a slush fund” that hides “hundreds of millions of public dollars from public scrutiny.” A statement posted on the website said:

UCOP's interference in the State Auditor's investigation is like trying to keep two sets of books — and reflects a continuing pattern of deception towards the Legislature in order to justify tuition hikes, skyrocketing executive pay, and continued exploitation of low wage contractors.

According to USA Today, the audit revealed that after adjusting for the cost of living, Napolitano's top 10 executives earned $700,000 more than their highest-paid counterparts statewide.

Lybarger expressed gratitude to the state auditor and demanded “real reform” because “our students, patients, and colleagues deserve better.”

Napolitano's statement said that her office has "taken [the] recommendations seriously and are committed to their implementation.

However, according to Fox News, Howle claimed the office's interference with the audit “cast[s] doubt on whether it will make a genuine effort to change.”