UC to Tighten Auditing Rules After Santa Barbara Case

The University of California is planning to tighten its internal financial auditing procedures in the wake of a scandal at its Santa Barbara campus.

Until now, each of the nine UC campuses had a lot of autonomy in deciding which areas of its operation should be audited each year. Under a plan approved by a UC Regents committee meeting at UCLA on Thursday, the central UC administration will have more say in the audits.

“With the Santa Barbara experience, we feel a need to tighten up the internal auditing process,” said Stanley K. Sheinbaum, chairman of the Regents’ Audit Committee.

Case in Santa Barbara

He was referring to allegations that the former chancellor of UC Santa Barbara, Robert A. Huttenback, and Huttenback’s wife illegally used $174,000 in university funds to remodel their off-campus home. The Huttenbacks, who deny the allegations, are awaiting trial on charges of embezzlement, tax evasion and insurance fraud.

Details of an improved audit system are to be worked out by July. One expected change is to have the office budgets of the nine chancellors audited by UC’s central administration, rather than by each campus’ bookkeepers as is now done, Sheinbaum said.

Officials stressed that auditing will continue to be mainly decentralized but with more oversight and more comparisons among the campuses.

OK Building Projects

In other business, the regents on Thursday tentatively approved several new building projects, including a $67-million Graduate School of Management at UCLA.

The regents will request at least $25 million for that UCLA school to supplement the $26 million in private donations and the $10 million more hoped for. Appointed architects in a joint venture for the building were internationally known I. M. Pei & Partners of New York and Leidenfrost/Horowitz & Associates of Los Angeles.

Also approved were final designs for two big projects at UC San Diego: a $32-million plan to modernize and enlarge the in-patient tower at the Medical Center in the Hillcrest area and a $36-million, mainly underground addition to the central library on the main campus.

Library at San Diego

UC San Diego Chancellor Richard C. Atkinson said the design of the library annex has been one of the most controversial issues on campus because students and faculty consider the existing, futuristic-looking library to be the symbol of the school and do not want views of it blocked. The proposed addition would be built into three sides of the surrounding canyon with only skylights visible to passers-by. Several regents expressed concern that the building and books might be damaged by water runoff but architects from Buss Silvers Hughes & Associates of San Diego assured that them waterproofing would prevent that.

All actions taken by their committees on Thursday are expected to be ratified by the full Board of Regents today.

Royalty Income Rises

In addition, the regents were told that royalty income from patents on discoveries and inventions made at UC labs increased the last academic year to $5.4 million, 58% more than the previous year and three times the total of five years before. That money helps finance further research.

Ronald W. Brady, UC senior vice president for administration, said that he hoped such success will continue with the recent increase in staff size at the university’s Patent, Technology and Copyright Office.