Business and Finance News

NEWS FROM THE DEPARTMENTS

January 2001


NEWS FROM THE DEPARTMENTS

BUDGET OFFICE, 
John Richards, Director

2000/01 Governor's Budget
The 2001/02 budget remains consistent with the partnership agreement between Governor Davis and the California State University (CSU). It also provides some of the additional funding requested for important state investments above the partnership.

The Governor's Budget includes $203.7 million in ongoing general fund money within the partnership and $64.2 million in general fund support above the partnership. The budget also projects $23.6 million will be collected in State University fee revenue associated with enrollment growth and year round operations. In total, the Governor's Budget provides a $291.5 million increase in CSU operating support from all general fund sources. This represents an 11.8 percent increase to the state general fund appropriation and an 8.9 percent increase to the CSU operating support budget.

The Governor's Budget supports a $81.5 million increase for a 4 percent compensation pool for all CSU employees to keep salaries competitive and reward outstanding performance. The CSU had also requested an additional 2 percent compensation supplement for faculty and staff, which was not included in the Governor's Budget. We will continue to work with the Legislature and the Administration to fund this item and others that were included in the Trustees' budget request but not the Governor's Budget.

The Governor's Budget also supports the permanent funding of $10 million for the Workforce Preparation and Economic Development initiative initially funded on a one-time basis in 2000/01. This CSU initiative will expand and improve access to academic programs important to California's work force and economy, including engineering, computer science, agriculture, and nursing. Funding of $8 million is included to expand the CSU K-12 academic preparation program from 150 to 300 targeted high schools. Governor Davis added $3 million for applied research activities and one-time funding of $20 million is included for instructional equipment replacement.

2001/02 Capital Budget
The 2001/02 Capital Budget includes $207 million for the CSU. This budget will fund 7 previously approved building projects as well as undertake 5 new building projects and 15 infrastructure projects. It includes $58.5 million to fund CSU's technology infrastructure initiative capital elements.

2001/02 Lottery Revenue Budget
In October, the trustees approved the 2001/02 Lottery Budget, which supports $37.7 million in system-wide and campus instructional related programs.

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

YRO Update
As noted in the budget discussion, the Governor's Budget includes supplemental funding to convert the equivalent of 3,138 summer FTES from self-support to state-support. This level of funding will allow the expansion of state-supported summer terms on four campuses: San Diego, San Francisco, Fullerton and Long Beach. Analyses investigating the potential for using available funding to convert additional self-support summer programs to state-support on additional campuses in summer 2001 are continuing.

To support the accelerated expansion of state-supported summer terms, a system wide meeting of YRO representatives from all campuses has been planned. The meeting will be held at the Crown Plaza Hotel at LAX on January 25th. The purpose of the meeting will be to describe critical requirements for the YRO conversions, address issues that were raised by campuses and allow campuses to share their planning and conversion experiences.

Quality Improvement (QI) Programs

Customer Satisfaction Surveys 2001
The Customer Satisfaction Survey Committee in collaboration with campus vice presidents, have been requested to appoint a lead person from their campus to facilitate the survey process. The surveys this year will be compiled in a booklet in which general instructions are provided and recipients will reply to demographic questions. Inserted in the booklet are questionnaires for each area the campus has decided to survey. Campuses will distribute the surveys to students, faculty, and staff members in March or April 2001. Survey results will be available to the campus lead by June 2001 with a system wide report to follow. Areas that campuses could survey include: career centers, environmental health and safety, facilities, financial aid, human resources, mail, parking, procurement, student accounts receivable, student health, and university police.

Performance Measurement 2000
Function groups are in the final stages of determining the measurements and data elements for this year's performance measurement effort. University Police, Parking Services, Mail Services, Student Accounts Receivable, and Financial Aid are completing their data collection. Completed workbooks of the measures and data elements are available at the QI website: http://csupm.csulb.edu/pm2000.

Spring Training Series
San Bernardino will host the Quality Improvement Spring Training Series on March 14th and 15th. Day one will be tailored to individuals who are new to QI initiatives and will include a session on roles and responsibilities as well as hands-on training with the APQC ConnectEd Best Practice Database. Day two will have sessions for both new and experienced QI professionals. The training will take place at the campus with lodging at the San Bernardino Hilton. More information will be distributed to Quality Improvement facilitators and campus representatives during January.

For more information on Quality Improvement Programs, contact Ron Ashcroft, QI Program Manager, at (562) 951-4556 or rashcroft@calstate.edu. Information is also available at: www.calstate.edu/tier3/qi.

CAPITAL PLANNING, DESIGN AND CONSTRUCTION

J. Patrick Drohan, Assistant Vice Chancellor

SUAM Update: Section XII--Construction Management for Public Works Contracts
CPDC has recently updated the State University Administrative Manual (SUAM), Section XII-Construction Management for Public Works Contracts, primarily in response to the 1999-2000 construction audit recommendations. A listing of the specific changes was transmitted to university officials responsible for Facility Management (Executive Deans). All SUAM manual holders are encouraged to download a copy of Section XII and replace the copy in their SUAM manuals.

Supplementary Contract General Conditions effecting major, minor, job order, and design-build contracts were issued in November 2000. Campus contracts and procurement officers are encouraged to check our website for the latest regulatory specifications for contracts prior to preparing any construction contract for bids. Contract General Conditions are currently targeted for January 2001 updates/revisions.

W. Clifford Hahn, Chief

CPDC Due Dates for CPB&G Agenda Items (May 15-16, 2001 Trustees' Meeting)

Master Plan Revisions:

March 13, 2001

All Other Items:

March 27, 2001

A complete listing of 2000 due dates for CPB&G agenda items is located at CPDC website http://www.calstate.edu/PPD/Executive/index.shtml

FINANCIAL SERVICES
Brad Wells, Assistant Vice Chancellor

ACCOUNTING

Notice of CSU Specific GASB 34/35 Training
A two-day seminar will be held on February 12th and 13th to cover the new Governmental Accounting Reporting Requirement, Statements No. 34 and 35, which go into effect for the CSU with the July 1, 2001 fiscal year. Mary Fischer, Professor at University of Texas, Tyler, who's also a NACUBO faculty member, will conduct the training.

Some major changes affected by these new GASB 34/35 standards are: the addition of a Management Discussion and Analysis that accompanies the statements, a direct method Statement of Cash Flows, new reporting requirements for capital assets and infrastructure, including depreciation of capital assets, tuition discounting and reporting by major segments.

The training will include discussion and illustrations of each of the new financial statement models, including a hands-on case preparation of actual cash flow statements during the afternoon of the second half of the day (bring your 10-digit calculator).

The audience for this training will be members of the Financial Standards Advisory Committee, Financial Officers, Accounting Directors, Accounting personnel directly involved with the GAAP financial statements, Financial Officers of Auxiliary Organization, Grant and Contracts Administrators, and Fixed Asset Managers.

Registration for the workshop and information on registering for hotel accommodations can be found on the web at: http://www.calstate.edu/acct/GAAP/gaap.shtml

Bill Musselman, Director

CONTRACT SERVICES AND PROCUREMENT (CS&P)

Compaq Computer Purchases
Campuses of the CSU may now buy Compaq computer products in any quantity through the Compaq direct sales channel. Competitive bidding requirements for those purchases have now been met through an action by the Department of General Services signing an Addendum to the Western States Contracting Alliance (WSCA) purchasing contract. This Department of General Services action allows California government or education entities to purchase Compaq Computers at established WSCA discounts. Campuses working with authorized Compaq resellers must order directly through Compaq but can identify the reseller in the order to Compaq for reseller commission purposes. CSU Auxiliaries may also buy at WSCA prices. Faculty, staff and students may buy for personal use at WSCA prices via credit card.

For additional information regarding this service please visit the CSU website at: http://www.calstate.edu/tier3/cs+p/Bulletins/00-10.pdf

To obtain Compaq contact information and price lists, the CSU specific web site is: http://www.compaq.com/education/csu.

 

CSU Awards New Contract for Procurement Credit Cards
The Procurement Support and Services Officers (PSSO) have agreed to pursue a contract award to Paymentech for procurement credit card services. This recommendation is the result of an extensive competition of available providers and an analysis of the State of California program offering. Participation in the new program will remain the option of each campus.

The existing State administered credit card program expires in March 31, 2001. As a result, campus procurement card administrators will need to reissue new cards to authorized card users. In anticipation of the contract expiration, the PSSO group undertook an RFP in September 2000 to solicit a new service provider. Out of the seven proposals received by Brian Kritzell, Director of Procurement at CSULA, the evaluation team overwhelmingly selected Paymentech as the best solution.

The selection was based upon the excellence of Paymentech's web software tool for reconciliation, total cost benefit to the CSU, and the company's overall ability to support a system wide program. The group also invited State Department of General Services (DGS) procurement card administrators to present the State's program with U.S. Bank. Although the new program eliminates all user fees and charges, their program does not at this time offer on-line reconciliation nor does their web-based product have the robustness and functionality offered by Paymentech.

An implementation team comprised of campus procurement card administrators and financial services staff will be meeting with Paymentech in January to finalize the implementation plan. Further meetings with program administrators will be held at both northern and southern locations to introduce the new program. Campuses will have the option of contracting with Paymentech to develop an interface or "mapping" to the financial system general ledger.

Questions or further information concerning the CSU's procurement card program may be directed to Jackie Baird at (562) 951-4582 or at: jbaird@calstate.edu

GOVERNMENTAL AFFAIRS,

Karen Yelverton, Assistant Vice Chancellor

Copies of CSU Legislative Reports and other legislative information pertaining to the CSU are available on the OGA website at www.calstate.edu/tier3/GA/.

INFORMATION TECHNOLOGY SERVICES
David Ernst, Assistant Vice Chancellor

Common Management System
This should be a very significant year for the CMS project. This is the year that the first CMS campuses will go live with the PeopleSoft baseline software. The first campus, California Maritime Academy, is scheduled to bring their key HR users live in early February followed by the San Bernardino campus in April.

CMS Article in PeopleTalk Magazine
The current issue of PeopleSoft PeopleTalk magazine has an article about the CMS project. The web link is: http://www.peopletalkonline.com/en/new/peopletalk/dec2000/news/CSUkickoff.html

Student Administration Pilot
The evaluation team has selected The Hunter Group as the implementation partner for the SA pilot project. Contract negotiations are now underway. The Sonoma and Fresno and SOSS implementation teams are attending PeopleSoft training.

Human Resources
HR is working on three areas of development. A PeopleSoft extract with information to use for employee salary projections by budget will be ready for coding after final review of the requirements on January 8, 2001. We are currently testing the work-study audit report that will be used to track federal work-study awards. The Positive Pay Reconciliation design is completed and we are in the process of testing the panels and report, and coding the SQR. Leave accounting functionality continues to be piloted by the Long Beach and San Luis Obispo campuses. The workflow pilot at Fresno has been deferred until later this quarter.

Finance
The testing efforts for SAM and FIRMS continue in conjunction with the Fresno and San Bernardino campuses and is planned to be included in the January baseline release to the campuses. Due to some problems in Claims, an extensive analysis to the original design was performed and SOSS has decided that the Claims module must be redesigned. The Financial Users Group (FUG) is developing a functional specification for review later this month.

HOSS Data Center
We have terminated negotiation of the Agreement by which IBM would perform and manage hardware operations and support services for the CMS project. This termination is based upon irreconcilable differences in pricing and scope. We are initiating our temporary contingency plan to expand data center operations at West Ed in Los Alamitos to provide operations support for the campus CMS implementations through June 30, 2001.

Derinda Williams Interview
An interview with Derinda Williams, SOSS Director at the Chancellor's Office plus CMS Project Director at the San Bernardino campus, is available at: http://cms.calstate.edu/communications/communications.htm

End User Training Vendor Selected
Signature Training has been selected as the vendor for the development of a system-wide end user training product. The product will include an online help system that is customized to include all Financial Information System (FIS) and Human Resources Information System (HRIS) modules as delivered with the CMS Baseline, as well as the training materials and databases used to conduct end user training courses. Campuses participated in the initial design meeting on January 4, 2001.

2nd Wave Campus Workshops
127 people attended the 2nd Wave Implementation Workshops on November 17, 2000. The focus of the workshops was to provide 2nd wave campuses with an overview of the first steps involved in baseline implementation and provided highlights of project planning, team structure and engagement. A demo of the baseline software is scheduled for the 2nd wave campuses on February 2, 2001.

New CMS Positions Available
Several new student administration and technical positions are now available. For more information, please visit the web site at: http://cms.calstate.edu/Homepage/CMSPositionsAvailable/CMSPositionsAvailable.htm

Hilary Baker, Senior Director

The Business and Finance Newsletter is accessible from the Chancellor's Office website http://www.calstate.edu/BF/. Questions related to receiving the B&F newsletter or changes in e-mail addresses should be directed to Mia Martinez at (562) 951-4554 or mmartinez@calstate.edu.