Under the direction of Janet Napolitano, the University of California hid $175 million while demanding more money from the state, the San Francisco Chronicle reported.
Napolitano, the former Department of Homeland Security chief under President Barack Obama, was outed by a state audit that found she overestimated the cost to run the 10-campus UC system and spent less than budgeted, but asked for funding based on the inflated estimates, the Chronicle reported.
For her part, Napolitano sent a six-page response to the state auditor, Elaine Howle, disputing the amount and defending the action as being prudent.
"The report fundamentally and unfairly mischaracterizes UCOP's (University of California Office of the President) budget processes and practices," she said in the statement.
"The true amount of UCOP's available and uncommitted reserve is $38 million, a modest amount for an organization our size . . . which accounts for roughly 10 percent of UCOP's operating and administrative budget," Napolitano wrote. "Ten percent is a prudent and reasonable amount for unexpected expenses such as cybersecurity threat response and emerging issues like increased support for undocumented students."
According to the Chronicle's report of the audit, monies from the secret fund were spent on in part:
- Communications and brand management ($4.7 million).
- Napolitano's residence ($862,000).
- Nonresident recruiting ($1.8 million).
Lawmakers are expected to hold a hearing next week to go over the audit.
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