The California State Senate today approved Senate Bill 736, a measure authored by State Senator Anthony Cannella (R-Ceres) to streamline the California State University (CSU) system’s systemwide financial audit practices, achieving approximately $2 million in taxpayer and campus savings every year.
“SB 736 will help CSU achieve its mission of high-quality, accessible, student-focused higher education by creating millions of dollars in savings, while also upholding the system’s commitment to transparency and accountability,” said Sen. Cannella. “I’m pleased my colleagues in the Senate approved this measure, and I look forward to working with all interested parties to ensure this bill passes the Legislature.”
Currently, CSU is required to conduct a systemwide financial audit each year and to audit each of its 23 campuses every two years. However, because most financial, personnel and administrative decisions are made at the Office of the Chancellor with oversight from the Board of Trustees – not at each individual campus – campus audits reveal little new information.
Introduced in February and unanimously approved by the Senate Education Committee in April, SB 736 eliminates the biennial campus audits, but requires CSU to include any relevant campus-specific financial information in an addendum to the annual systemwide audit. Removing this duplicative audit is expected to save the CSU system approximately $2 million every year by streamlining processes and reducing redundancies.
SB 736 was approved by the State Senate with bipartisan support. The measure now goes to the State Assembly for consideration.