The Report from the California State Auditor (2002-110) on
the Common Management System (CMS)
AS-2609-03/FA - May 6-7, 2003
ATTACHMENT 1 TO
AS-2609-03/FA
ATTACHMENT 2 TO AS-2609-03/FA
RESOLVED: That the Academic Senate of the California State University
(CSU) call upon the CSU to allow individual campuses to defer implementation
of CMS applications where an existing 'legacy system' is operable until
- The recommendations of the March 2003 report of the California State
Auditor (2002-110) are implemented by the CSU, and
- The creation of a business plan and accompanying cost-benefit analysis
that compares costs, benefits and functionality of proceeding with the
present CMS against a range of alternatives. Such alternatives would include
campus adoptions of other systems so long as they deliver commonly required
information; and be it further
RESOLVED: That the Academic Senate CSU urge the Chancellor to direct
those campuses that do not defer implementation to proceed in a cost-effective
manner; and be it further
RESOLVED: That the Academic Senate CSU urge that subsequent proposed
Trustee Budgets specify funding requests for CMS expenditures so that they
will not be funded via reallocation of resources intended for instruction;
and be it further
RESOLVED: That the Academic Senate CSU urge the Board of Trustees
and the Chancellor-prior to embarking on new projects-to adhere to fundamental
planning principles, articulated in the State Auditor's report, that would
include (but may not be limited to) such matters as
- Developing supplemental funding sources for new systemwide projects
- Building in oversight mechanisms
- Conducting thorough cost benefit analyses, sharing the results widely,
and consulting with representatives of system constituencies
- Building in mechanisms to detect and address conflicts of interests;
and be it further
RESOLVED: That copies of this resolution be sent to Chancellor
Charles Reed; Executive Vice Chancellor Richard West; the CSU Board of
Trustees, campus presidents, and campus senate chairs.
RATIONALE: Report #2002-110 of the California State Auditor,
entitled "California State University: Its Common Management System Has Higher
than Reported Costs, Less Than Optimal Functionality, and Questionable
Procurement and Conflict-of-Interest Practices," released in March 2003,
concludes that
- The university did not establish a business case for CMS to define its
intended benefits and associated costs and ensure that the expenditure of
university resources is worthwhile
- Problems exist that cast doubt on whether CMS will achieve all the
objectives intended, or offer what could have been achieved from a
systemwide project.
- Although the university followed recommended procurement practices to
acquire data center services, its procurements for software and consultants
on the project raise questions about the fairness and competitiveness of
the university's practices.
- The university did not do enough to prevent or detect apparent conflicts
of interest on CMS-related procurements (Audit Highlights).
CSU administration does not dispute the factual findings of the audit and has
stated that it accepts almost all its recommendations. The conclusions of the
audit were the subject of a hearing by the Joint Legislative Audit Committee
on April 3, 2003, at which several prominent members of the Legislature,
Democrats and Republicans, strongly criticized CSU administration for its
handling of this project and at which the Chancellor indicated willingness
to develop a business plan for CMS.
From the time when CMS was first proposed, faculty leaders-including the
California Faculty Association and the Academic Senate CSU-have cautioned
the Chancellor's Office that the project was too costly and should be funded
outside of the general University budget. In addition, both faculty and
staff on many CSU campuses expressed strong reservations about the viability
of the CMS system. These problems are now exacerbated by the state's budget
crisis, which has severely limited state funding for the CSU and threatens
the University's ability to maintain high-quality academic programs. In this
context it is essential that all available funding be directed to the core
mission-instruction of students-and that implementation of CMS be suspended
in accordance with the conditions defined in this resolution. It is also
appropriate that administrators responsible for what the auditor's report
characterizes as flawed decision-making, haphazard business strategies,
breaches of ethical conduct, and potential financial waste documented in
the audit be held accountable.
APPROVED UNANIMOUSLY -- May 8-9, 2003 |
