Following a six-month review of the 51ΑΤΖζΘλΏΪ Strawberry Breeding Program, the California state auditorβs office today released recommendations β including suggestions for future funding and revenue collection β for the acclaimed program.
βThe audit addressed many of the same issues also covered in an internal 51ΑΤΖζΘλΏΪ audit of the Strawberry Breeding Program, issued in April,β said Mary Delany, executive associate dean of the College of Agricultural and Environmental Sciences.
βCampus and college leaders are pleased that the state audit confirmed many of our own findings, indicating that the program is operating well within state regulations and university policies,β she said. βWe have responded to the auditβs recommendations and will be incorporating several of its suggestions as the strawberry program moves forward under the direction of our new strawberry breeder.β
The state auditorβs report is available at and 51ΑΤΖζΘλΏΪβ internal audit report can be downloaded from an online press kit at .
State auditorβs recommendations
Below are recommendations from the state auditorβs report, with responses from 51ΑΤΖζΘλΏΪ:
* 51ΑΤΖζΘλΏΪ should ensure that the breeding program is adequately funded and consider allocating more of the university patent income directly back to the program.
In response, 51ΑΤΖζΘλΏΪ confirmed that as it plans for the continued stability of the strawberry breeding program, it is considering all funding options, including use of discretionary patent income allocated to the College of Agricultural and Environmental Sciences to support the program. However, given that the program has not operated in deficit and as of April 30 had approximately $1 million in surplus and reserve funds, there are currently no plans to alter overall campus policies that guide patent revenue distribution.
* 51ΑΤΖζΘλΏΪ should regularly reassess whether the royalty rates charged to strawberry nurseries and growers, licensed to sell patented strawberry varieties, are appropriate, and adjust the rates as needed to support the program.
In response, 51ΑΤΖζΘλΏΪ will continue to assess the strawberry programβs royalty rates, informed by input from the California Strawberry Commission, a strawberry advisory committee, licensees and other industry members, and will report those rate analyses annually. Royalty rates may be adjusted if justified by changes in market conditions and other factors. The breeding program has no plans at this time to raise royalty rates charged for licensing its strawberry varieties. The universityβs mission is not to maximize revenues from licensees but to work collaboratively with all areas of California agriculture to provide research, education and support as mandated by its land-grant origins.
* 51ΑΤΖζΘλΏΪβ Department of Plant Sciences, home to the strawberry breeding program, should prepare annual budgets specifically for the breeding program.
In response, 51ΑΤΖζΘλΏΪ confirmed that as soon as the new strawberry breeder completes his assessment of the current program and the scope of its future activities, a separate budget will be prepared specifically for the program, rather than rolling the programβs budgetary process into that of the overall department. The budget will ensure that the breeding program continues to operate in a cost-efficient manner.
* 51ΑΤΖζΘλΏΪ should in the 2015-16 fiscal year implement a program to begin accounting for the Strawberry Breeding Programβs financial activities separate from the financial activities of the programβs breeder.
This recommendation also resulted from the 51ΑΤΖζΘλΏΪ internal audit, and the campus plans to now establish separate accounting codes for the strawberry program and for the programβs breeder.
* 51ΑΤΖζΘλΏΪ should periodically review the financial records of the companies that hold licenses to grow and sell the programβs patented strawberry varieties, making sure that the university is receiving all of the royalties it is entitled to.
In response, 51ΑΤΖζΘλΏΪ will complete a cost-benefit analysis of this recommendation, using the findings to determine whether periodic auditing of its licensees is advisable or if case-by-case auditing would be more appropriate, based on licensee reporting and input from field representatives and others.
Origin of the state audit
The state audit, focusing on the programβs management and operations, was initiated in August 2014 by the Joint Legislative Audit Committee at the request of California State Assemblyman Luis Alejo of the 30th State Assembly District.
It came on the heels of a lawsuit concerning the Strawberry Breeding Program filed against the university in October 2013 by the California Strawberry Commission and a countersuit filed by the university in October 2014. The commission is a state agency charged with supporting the interests of the California strawberry industry.
Legal issues between the university and the strawberry commission were settled out of court in February of this year. The strawberry commission and 51ΑΤΖζΘλΏΪ then announced their commitment to work together to ensure a new future for the public strawberry breeding program at 51ΑΤΖζΘλΏΪ.
At the same time, 51ΑΤΖζΘλΏΪ announced the hiring of plant scientist and breeder Steve Knapp to lead the Strawberry Breeding Program following the retirement of its two former breeders. Knapp, who comes to 51ΑΤΖζΘλΏΪ most recently from Monsantoβs Vegetable Research and Development program in Woodland, brings a wealth of research experience to the breederβs position. He has served on the faculty of Oregon State University and the University of Georgia, and holds a doctoral degree in agronomy and plant breeding.
More information on the history of the 51ΑΤΖζΘλΏΪ Strawberry Breeding Program is available at: .
Media Resources
Pat Bailey, Research news (emphasis: agricultural and nutritional sciences, and veterinary medicine), 530-219-9640, pjbailey@ucdavis.edu