joining me now is bay area news group higher education reporter emily dury. nice to have you here. >> thanks for having me. >> how significant is this audit? >> it's fairly huge. i mean, explosive is a word that has come up. they found that there's $1 75 million in what the auditor at one point called a slush fund. secret reserves that weren't disclosed fully to the board of regents that oversees the u.c. system. you have people saying where is this money going, why are you raising tuition, what's going on here? >> so then the reaction among parents and students, i would imagine, is they're pretty upset. >> you have people really upset. you have students coming forward and saying that the tuition increase, about 3%, raises in-state tuition from about $12,300 to $12,600. you have students saying that's hard for some people in? families. >> this on top of another audit this year showing that thousands of out-of-state students with lower grades and test scores than the in-state students were being admitted, primarily to raise cash for the u.c. system. >> right.