The UC Board of Regents has agreed to implement the recommendations to make budgeting practices of the president's office more transparent after a state audit revealed $175 million in a reserve fund.
During a state audit of the University of California, State Auditor Elaine Howle said she found UC President Janet Napolitano's office has squirreled away more than $175 million in a secret reserve fund.
Napolitano denies that her office improperly stashed money away. The state audit prompted California Govenor Jerry Brown to withhold $50 million from the UC system's budget to "hold their feet to the fire."
The state auditor told board members on Thursday that the audit was not meant to criticize Napolitano's leadership, but to instead assess the health and status of the office's budgeting process. Howle said that the board and office needs to set a reserve amount that is based on a clear and transparent policy.
The UC Board of Regents took time on Thursday to praise Napolitano, saying that the president was a strong visionary and an asset for the 10-campuses scattered across California.
Additionally, the board will consider a proposal that will cap undergraduate out-of-state enrollment at 18 percent.