Business and Finance


NEWS FROM THE DEPARTMENTS

July 2000

 


 

NEWS FROM THE DEPARTMENTS

 

BUDGET OFFICE, 
John Richards, Director

2000/01 Final Budget
The governor signed the Final Budget on June 30, 2000. Highlights of the budget include: 4.5% enrollment growth (12,577 FTES), a 6% compensation pool for all employees, $19.9 million to reduce fees for all matriculated students in summer-session, for-credit extension courses, $10 million in one-time funds for CSU academic programs that support California's workforce, and $5.2 million for fire repair at Hayward. The budget also includes $21.2 million for Governor's initiatives related to teacher recruitment, teaching fellowships and K-12 education technology training. The budget settles outstanding funding issues associated with the CSU Stanislaus-Stockton Center ($11.3 million) and provides $10 million for CSU Channel Islands campus planning. The table below provides a comparison of the Board of Trustees' request and the Final Budget.

20001/01 Budget Plan - BOT Budget Plan vs the Final Budget


Board of Trustees

Final Budget

Mandatory Costs

Employee Benefits
New Space
1999/2000 General Employees Compensation Increase
1999/2000 Faculty Collective Bargaining Agreement
1999/2000 Full-Year Service-based Comp. Increases

$7,136,000
5,765,000
3,600,000
6,800,000
2,500,000

$8,507,700
6,414,300
3,600,000
6,800,000
2,500,000

Enrollment - 4.5% Increase; 12,577 FTE Students

Marginal Cost for Instruction
State University Grant Increase

81,901,000
4,390,000

81,744,000
4,317,000

Compensation    1

98,320,000

113,240,000

Monterey Bay

2,290,000

2,290,000

Long-Term Budget Need

            Technology
            Libraries
            Deferred Plant Maintenance

15,000,000
3,000,000
3,300,000

15,000,000
3,000,000
2,813,000

Subtotal, CSU Operations and Enrollment Growth

$234,002,000

$250,226,000

State Investments:
            Governor' Initiatives:

CALTEACH Recruitment
Governor's Teacher Fellowships
Community Service Learning
Education Technology Training
       Total, Governor's Initiatives

$9,000,00
3,500,000
2,200,000
6,500,000
$21,200,000

Channel Islands Campus Fixed Costs
Off-Campus Center Support - Coachella Valley
Summer Session Extension Course Fee Buy Down for
Matriculated Students
Center for California Studies
Stanislaus-Stockton Center (one-time)
Strategic Program Capacity: CA workforce initiative
(one-time)
Legislative Initiative-San Bernardino (one-time)
CalTeach Documentary (one-time)
Hayward Fire Repair (one-time)
LA Perf. Arts Center/St. Vibiana's Cathedral (one-time)
      Total, State Investments

10,000,000
380,000









_________
$10,380,000

10,000,000
380,000

19,900,000
287,000
11,300,000

10,000,000
250,000
1,000,000
5,160,000
4,000,000
$83,477,000

Total, 2000/01 CSU Budget Plan

$244,382,000

$333,703,000

Capital Budget Items-Funded by General Fund (one-time)

Telecom. Infrastructure Acceleration - Sonoma & Chico
Pomona Ctr. for Animal and Veterinary Sci. Educ., Phase IA
San Diego/Otay Mesa Off-Campus Center Acquisition
Total, Capital/General Fund Items

19,034,000
2,000,000
1,000,000
22,034,000

1   BOT Request included 4% compensation pool for all employees and an additional 2%
     compensation supplement supplement for faculty. The Final Budget includes the equivalent of a 6% pool
     for all employees


The Budget Office is in the process of compiling the final budget allocation letter which will provide a detailed summary of campus allocation increases for 2000/01. Campus final budget submissions will be due in the Budget Office on or before August 15, 2000.

 

 

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

YRO Update

As reported in the Budget Office update, the state budget includes $19.9 million to buy down extended education summer fees for matriculated students to the state university fee level. Analyses are currently being performed to establish an allocation methodology of these funds and develop a strategy to obtain full marginal cost funding for summer enrollments that transition from extended education to state support status. In addition to the funds to buy down fees, the 2000/01 base budget also includes $2.2 million in YRO planning funds. An approach for the disbursement of these funds is also being formulated.

Quality Improvement (QI) Programs

Annual QI Symposium: The 3rd Annual Quality Improvement Symposium, "Leading the Engaged and Accountable University," will be held on November 16 at the Sheraton Gateway, San Francisco Airport. Chancellor Reed will address the symposium in the morning and Tom Chapeaux of the Effectiveness Institute will be the keynote speaker in the afternoon. The symposium will also feature a presentation by CSU Northridge highlighting their efforts to implement the Balanced Scorecard. This year's symposium will be held in conjunction with the National Consortium for Continuous Improvement, which will host its event on November 15. For additional information about the November QI Symposium and registration for both events, visit the QI website at http://www.calstate.edu/qi/.

Performance Measurement 2000: Functional groups are continuing to define performance measures for their areas. Those function groups developing their own instruments will focus on the development of a few key performance measures that are critical to their success and align with their division's or campus' strategic goals. A website has been developed to allow participants to interact via live chat rooms and through message-posting forums. The performance measure development effort will be followed by data collection, analysis and reporting of the results and recommendations in fall 2000.

Process Mapping: Process mapping groups from around the system are in the process of completing Workshop III and publishing their outcomes and final process maps. Some campus functional groups, such as Parking and Transportation Services at Long Beach, have also utilized Orion Development Group to conduct individual training sessions on their campus. A second train-the-trainer session will be held on August 29 and 30 in San Francisco for those campuses interested in having trainers on their campus. Those interested should contact Ron Ashcroft at
562) 951-4556 or by e-mail at rashcroft@calstate.edu.

Customer Satisfaction Surveys: Analyses of the customer satisfaction surveys conducted during the spring by the University Police and Parking Services groups have been completed. The draft reports will be distributed to the individual campuses and to the functional groups at their respective meetings in August. The Student Health functional group is in the process of finalizing a survey instrument and work is continues on updating survey documents for other previously-surveyed areas for use in spring 2001.

Staff Addition: Matt Ceppi has joined the Quality Improvement Programs staff as a QI Programs Specialist. Matt had previously been an active contributor in the QI effort at Cal Poly San Luis Obispo and will begin immediately to assist campus functional groups in evolving and sharing best practices.

 

CAPITAL PLANNING, DESIGN AND CONSTRUCTION
J. Patrick Drohan, Assistant Vice Chancellor

SUAM, Section XII - Construction Management for Public Works Contracts

Section XII of SUAM has been revised to address certain 1998-1999 audit recommendations relating to change order mark-ups, claims negotiations, the Construction Claims Program Policy and Procedure, and land records. Copies of the updated text can be accessed on the Construction Management web page at www.calstate.edu/ppd/cm/. Notification of the changes has also been transmitted directly to the Executive Deans and Procurement Officers.

Cliff Hahn, Chief of Construction Management

Capital Training Program 2000

Joint Venture Capital Projects-August 11, 2000

The next offering in the Capital Projects Training Program is "Joint Venture Capital Projects (Focus on Housing)." The program will be held on August 11, 2000 at the Chancellor's Office. Interested parties may register through the CPDC website at www.calstate.edu/ppd/ (Capital Projects Training Programs).

CPDC Due Dates for CPB&G Agenda Items (September 19-20, 2000 Trustees' Meeting)

Master Plan Revisions:

July 18, 2000

All Other Items:

August 1, 2000

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

2001 CSU Facilities Planning

CPDC will be sponsoring the 2001 CSU Facilities Planning and Management Conference in San Jose on October 7th through 9th. This dynamic, systemwide conference will renew, challenge and strengthen CSU facilities management staff.

Linda Burke, Director of Trustees/Legislative/Capital Training Programs

Facilities Planning Due Dates Schedule

2001/02 Minor Capital Outlay Program

August - November 2000

Scope visits scheduled with the Department of Finance and Legislative Analyst's Office.

2001/02 Minor Capital Outlay Program

August - October 2000

Open window for the campuses to update their Space and Facilities Data Base. The updates will be used to develop capacity information for lecture, lab, faculty office and other campus space in conjunction with the capital program request

On-Going Maintenance Costs

Currently, $6.45/GSF (gross square foot) is budgeted for the maintenance of new buildings. In light of changes in labor and utility costs, CPDC will work with the Directors of Physical Plant to evaluate the adequacy of this amount. This maintenance cost evaluation will be undertaken following the updates of the projected cyclical facility renewal/scheduled maintenance needs and the deferred maintenance backlog for state-supported buildings which will be completed soon.

New Facility Planners Join Staff

Mr. Richard Davalos and Mr. Roger Jaeckel have joined the CPDC staff. Mr. Davalos has extensive experience working with FEMA and has a land development background. Richard will have planning responsibilities in connection with the Humboldt, Monterey Bay, Pomona, San Francisco and San Marcos campuses.

Mr. Jaeckel comes to CPDC from the Los Angeles Unified School District where he worked for a number of years in planning, design and construction of K-12 projects. Roger has been assigned to work with the Bakersfield, Chico, Los Angeles, San Diego, and San Luis Obispo campuses.

Elvyra F. San Juan, Chief of Facilities Planning

 

FINANCIAL SERVICES
Brad Wells, Assistant Vice Chancellor

ACCOUNTING

The Non-Resident Alien (NRA) Tax Workgroup continues to meet regularly to address NRA issues. Currently, the workgroup is developing a comprehensive manual and training programs to assist campus meet legal requirements.

The Financial Standards Advisory Committee is working with the system auditors, KPMG, to streamline the implementation of GASB 34/35 which dramatically alters financial reporting for state universities. Campuses have been participating in fact-finding teleconferences that will help shape the process. A CSU-specific two-day GASB 34/35 workshop is being planned for January 2001 to discuss technical changes and the impact on campuses. Details will be made available in the near future.

Questions may be directed to Bill Musselman at (562) 951-4610 or wmusselman@calstate.edu.

Bill Musselman, Acting Director

 

CONTRACT SERVICES AND PROCUREMENT (CS&P)

Long Distance Service RFP

An RFP was released on July 7, 2000 to solicit proposals for the selection of industry partner(s) to provide the delivery and implementation of a full range of long distance campus telephone services and associated business calling card services. Proposals are due July 31st, 2000. Contract award is estimated for early September. For information contact Eddie Choy at (562) 951-4591.

Procurement and Support Services Meeting

The quarterly PSSO meeting is scheduled for July 27th and 28th at Ontario Mills Suites. The meeting is being hosted by Cal Poly Pomona. A one-day workshop to identify priority benchmark indicators for the purchasing function will precede the meeting on July 26th.

Procurement Card Policy

In response to expressed audit concerns, a new executive order is under development. The E.O. will address new and revised Trustee policy governing the administration and management of the campus procurement card program. An initial draft of the E.O. was reviewed at the last CABO meeting and the final version will be released in September.

Inacom - Volume Pricing Agreement for Desktop Computers

The department has become aware of the pending reorganization of this supplier and the potential closure of Inacom's desktop support service depot. Until requirements for a replacement agreement are fully explored, including analysis of existing warranty and service obligations, campuses are advised to use either of the two State master agreements (i.e., Computer Store or CMAS) to fulfill PC and desktop hardware requirements. For further information contact Tom Roberts at (562) 951-4583.

Pat Dayneko, Director

 

FINANCIAL SYSTEMS, STANDARDS AND REPORTING

Electronic Interface with SCO

The Chancellor's Office has participated in a joint pilot project with the SCO to implement electronic interfaces via FTP.

The first phase of this project focuses on establishing a framework/environment for electronic file transfers. In this phase, the claims audit file is transmitted electronically via FTP to the SCO Audit Division. This eliminates the need for mailing claim audit disks to the SCO. Pilot testing for Phase I has been completed by the Chancellor's Office. Five campuses have volunteered to test this process for three months before it is rolled out to the other campuses.

The second phase of the pilot project is currently being tested at the Chancellor's Office and focuses on electronic fund transfers between the CSU and the SCO of revolving fund reimbursements. Please forward any questions to Laleh Graylee at lgraylee@calstate.edu

Laleh Graylee, Director

 

FINANCING AND TREASURY

During the conceptual planning of construction projects, the department of Financing and Treasury can assist campuses in preparing financial plans for future bond issuances. For assistance with Private/Public projects, please contact Richard K. Leffingwell. For other projects, please contact Rosa H. Renaud at (562) 951-4570.

The Financing and Treasury department also has an ongoing inter-campus loan program for short term financing needs. For further details, contact Shahenaz Churiwala at (562) 951-4570.

Richard K. Leffingwell, Director

 

RISK MANAGEMENT

The CSURMA now has a web site, www.csurma.org. Information is being added to the website daily. Please contact Risk Management at (562) 951-4580 if you have suggestions for future additions.

Charlene Minnick, Director

 

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/oga/>.

 

INFORMATION TECHNOLOGY SERVICES
David Ernst, Assistant Vice Chancellor

CMS Status Report

System testing is now underway for both the HR and Finance baseline systems. The eleven 1st wave campuses are working with SOSS to thoroughly test the system processes prior to the release of the baseline software in September. Planning is also in progress for several days of functional and technical Baseline Walkthrough Workshops in September. The workshops, which will describe the baseline deliverables, will be presented in tracks to allow the 1st wave campus participants to attend multiple sessions. Jeanine Lussier is the new CMS Training and Documentation Project Director. Jeanine joins us following two years as Academic Dean at Victor Valley College and the previous 13 years at the Florida International University as the Assistant Director of Instructional Technology. Jeanine is currently coordinating the Baseline Walkthrough Workshops and working with the 1st wave campuses on their end user training.

Min Fruto has joined the CSU as the CMS SOSS Human Resources Project Director. Min was formerly the IT Project Manager at 20th Century Fox responsible for HR/Benefits using PeopleSoft software.

The Student Administration (SA) Function team has developed a detailed project plan for the immediate tasks needed to start the implementation of the SA modules. An interim Student Administration Project Director has been hired to provide project support over the next few months, including helping to select an SA implementation partner.

The CSU evaluation team continues its evaluation of the IBM and Unisys responses to the CMS Hardware Operations and Support Services (HOSS) RFP. A Notice of Intent to Award is planned for early August.

Sheila Bickham has accepted the CMS HOSS Director position. Shelia will be responsible for managing the outsourced CMS Data Center and will officially begin work on July 17th. Sheila joins the CMS team from CSU San Bernardino where she has been the Director, Data Center Services since 1996. Prior to joining the CSU, Sheila worked for a data center provider where she managed data center operations for 40 financial institutions throughout the West Coast.

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 James Francel at (562) 951-4547 or jfrancel@calstate.edu.