Public Universities are, by name alone, supposed to be public. Nothing should go on behind closed doors. Nonprofits have however been providing cover for public officials (like Fuomo in Philadelphia) serving as a vehicle for passing money to themselves and others who may prove helpful.
It appears that this deviance in the public sector is not just for personal gain and not conducted singularly by publicly elected officials. The California University System has enough related experience particularly in the form of public University auxiliary organizations that the State Legislators have created a law that will mandate transparency.
It's troublesome that this had to be mandated. It's also troublesome that the Universities had to go to these extremes to "hide" sources of money which are presumably in the best interest of the students. And, it's troublesome that nonprofits and the boards that oversee these institutions don't have higher standards for how their organizations should behave. Transparency shouldn't need to be mandated by law. Transparency should be a practice that builds positive relationships, loyalty and support.
To learn more about this new law, see the LA Times.