Business and Finance News

NEWS FROM THE DEPARTMENTS

September 2000


NEWS FROM THE DEPARTMENTS

BUDGET OFFICE, 
John Richards, Director

2000/01 Final Budget
Budget Office coded memorandum B 00-04 dated July 13, 2000, requested campus budget submissions by August 15, 2000. All adjustments to the 2000/01 final budget as provided in

B 00-04 were to be included in the submission. Campuses were to allocate funding increases and decreases to budget areas as appropriate. State University Grants and EOP Grants allocations were restricted to specified minimums. In addition to allocating to state and traditional funds, campuses took advantage of legislation effective January 1999, which permits allocations to/from certain auxiliary funds (continuing education, parking, lottery) and Student Health Services and Facilities Fees in local trust accounts.

All campus budget submittals in the FIRMS format have been received and reviewed by the Budget Office. The data collected will assist in preparation of the 2001/02 CSU Support Budget and Governor's Budget.

The California State University 2000/01 Final Budget highlights and summary will be distributed at the September meeting of the Board of Trustees. Copies will be available through the Budget Office by calling (562) 951-4560 and will also be posted to the Budget Office webpage.

CSU Student Fee Policy -- Annual Fee Report

The CSU Student Fee Policy, Executive Order 740, requires that each campus provide the Chancellor with a complete inventory of all fees charged to students and the total revenues collected for each fee for the most recently completed fiscal year. This information is due to the Budget Office by September 20, 2000. A summary of the 2000 fee report will be presented at the November Board meeting to allow the Trustees to review the level and range of fees charged to students.

In the future, the fee report may be web-enabled which would allow data entry and reporting to be performed via a web browser. This will eliminate the current data entry via an Excel spreadsheet and provide campuses with direct access to the fee database. In preparation for this process, campuses should answer the questions posed in the August letter from the Budget Office with regard to future PC availability to determine requirements for web-enabled reporting.

Budget Process for 2001/2002

The budget process for FY 2001/02 has begun. The August FIRMS submissions from the campuses provide the foundation for all calculations in support of the 2001/02 budget. The Executive Council and the System Budget Advisory Committee reviewed a preliminary planning estimate in early September. The Board of Trustees will review and discuss preliminary budget proposals at their September 19-20, 2000 meeting. Approval of the budget by the Board is scheduled for a special meeting on October 26, 2000.

Instructional Equipment Inventory Survey

A key component in CSU budget calculations is the annual inventory of instructional equipment provided by the campuses. The 1999 Instructional Equipment Inventory survey was due from campuses by September 1, 2000. This information is used to derive annual depreciation, which is one of the seven major cost factors determining the CSU's marginal cost per FTES. The depreciation derived from the inventory reports is also used to identify instructional equipment funding deficiencies, to make cost comparisons with the University of California concerning relative support budget needs and to explain funding requests to the Department of Finance.

CSU Student Fee Waiver Data Collection

Campuses were requested to report the number of annualized fee waivers provided during the 1999/2000 Academic Year and the Summer term (if applicable) by fee waiver category. These fee waiver reports were due by August 25, 2000. This data is required to prepare the 2001/02 Support Budget fee revenue calculation. This will be the last year that fee waiver data is collected manually. The fee waiver data needed in future years will be extracted from the Enrollment Reporting System Student (ERSS), an Analytic Studies database.

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

Quality Improvement (QI) Programs

Performance Measurement 2000: :A demonstration of the interactive Performance Measurement website was presented to CABO at their August meeting in San Francisco. The website, still under development, will offer discussion boards, live chat rooms, and the capability for online data submission. The site can be viewed at http://csupm.csulb.edu/pm2000/. Accounts Payable, Financial Aid, Mail Services, Parking, Procurement, Student Accounts Receivable, Student Health, and the University Police function groups are in the process of developing data definitions for the selected performance measures. Based on timelines provided by these functions, data collection for Performance 2000 is scheduled to take place from September through January. Career Centers, Environmental Health and Safety, Facilities Services, and Human Resources are using national instruments administered through their respective national organizations.

Process Mapping: A second train-the-trainer session was held on August 29th and 30th in San Francisco. Campuses interested in support or training in connection with a process mapping effort, including support for CMS process mapping, should contact Ron Ashcroft at rashcroft@calstate.edu. As campuses develop process maps, the Quality Improvement Program plans to publish the maps developed by various function teams to demonstrate and share the successes of process mapping.

Customer Satisfaction Surveys: The draft report of the Parking Services survey has been distributed to individual campuses for review. A final report is scheduled to be released during October. Additional functional groups including Accounts Payable, Career Services, Environmental Health and Safety, Facilities Services, Financial Aid, Human Resources, Libraries, Mail Services, Parking, Procurement, Student Accounts Receivable, Student Health, and University Police are in the process of developing surveys that will be conducted in 2001.

3rd Annual QI Symposium: Registration is continuing for The 3rd Annual Quality Improvement Symposium, "Leading the Engaged and Accountable University." The symposium will be held on November 16th at the Sheraton Gateway Hotel, near the San Francisco Airport. Chancellor Reed will address the symposium in the morning and Tom Champoux of the Effectiveness Institute will be the keynote speaker in the afternoon. The National Consortium for Continuous Improvement is also continuing to take registration for their 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.

Balanced Scorecard Orientation and Development Program: Assistance in implementing the Balanced Scorecard framework is available through the Chancellor's Office. This assistance includes training, facilitation, consulting, and other support for integrating strategic plans into the Balanced Scorecard framework. For more information, contact Matthew Ceppi at mceppi@calstate.edu.

YRO Update

The FY 2000/01 budget included $19.9 million to support the conversion to state-supported Year Round Operations. Initially, the majority of these funds will be used to ensure that matriculated students taking self-support, for-credit, summer courses pay no more for those courses than the applicable State University Fee (SUF) for the units taken. For campuses declaring an intent to fully convert to state-supported summer operations, marginal cost funding for enrollments not already converted will be requested through the normal budget process. The presidents discussed YRO implementation timing at the September Executive Council meeting and discussions with DOF on funding models are underway.

CAPITAL PLANNING, DESIGN AND CONSTRUCTION

J. Patrick Drohan, Assistant Vice Chancellor

CPUC Ruling on the "Summer 2000 Energy Efficiency Initiative"

In Decision (D.) 00-07-017, the California Public Utilities Commission (CPUC) directed the utilities to make available $73 million of energy-efficiency funds to implement demand-reduction strategies for summer 2000 and 2001.

The University of California and California State University prepared a list of projects for a joint submission totaling $38.5 and $45.8 million respectively. These projects were considered viable, but currently lacked the funding to go forward. In aggregate, the UC and CSU projects could contribute 18,700 to 20,700 kW and 41 million in kWh of savings by summer 2001.

The CPUC announced that of the funds available, the CSU and UC would receive $8 million divided as shown below:

CPUC Funds

Division of Funds (Millions)

Available

CSU
UC

PG&E

$2.5 million

$1.375
$1.125

SCE

$3.5 million

$3.500

SDG&E

$2.0 million

$0.875
$1.125


Total

$8.0 million

$5.750
$2.250

Discussions are underway with participating campuses to establish the final project list.
Robert C. Schulz, Chief

 

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

September 19, 2000
January 10, 2001
February, 2001

Board of Trustees approval.
Governor's Budget released.
Legislative Analyst's Office Analysis of the Budget Bill published.

2002/03 - 2006/07 Major Capital Outlay Program and Five-Year Capital Improvement Program

The schedule below represents changes to the historical capital outlay program schedule due to the legislative requirement (AB 1473, Hertzberg) for a statewide 5-year infrastructure plan beginning in 2002/03.

October 2000

Executive Council reviews the draft Categories and Criteria.

November 2000

Board of Trustees approves the Categories and Criteria.

November 30, 2000

Campuses submit Draft Capital Outlay Budget Change Proposals.

January 2001

Campuses submit Final Capital Outlay Budget Change Proposals.

February 2001

Executive Council reviews the draft priority list for the 2002/03 Capital Outlay Program, and Five-Year Capital Improvement Program. CPDC submits final COBCPs and equipment lists to DOF.

March 2001

Board of Trustees approves the 2002/03 Capital Outlay Program, and the Five-Year Capital Improvement Program.

CPDC Due Dates for CPB&G Agenda Items (January 23-24, 2001 Trustees' Meeting)

Master Plan Revisions:

November 21, 2000

All Other Items:

December 5, 2000

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

 Elvyra F. San Juan, Chief

FINANCIAL SERVICES
Brad Wells, Assistant Vice Chancellor

ACCOUNTING

Non Resident Alien Tax (NRAT) Compliance

The NRAT committee is scheduled to meet in late September to review the draft manual prepared by KPMG on behalf the committee. Campus feedback will be solicited on the draft manual for incorporation in the final document. Seminars to review the manual are being scheduled for this winter. Question regarding the activities of the NRAT committee should be directed to Bill Musselman at (562) 951-4625 or via e-mail to wmusselman@calstate.edu.

Direct Vendor Pay

Legislation is being drafted to permanently authorize the ability of the CSU to pay vendors directly. In support of the proposed legislation, which will be presented for approval by the Board of Trustees in January, campuses will be contacted to solicit letters of support from vendors that do business with the CSU. In addition, campuses will be asked to assist in the development of supporting documentation that quantifies the improvement in timeliness of payments and the reduction in transaction costs. For information regarding the direct vendor payment legislation or suggestions on how to support the legislation, please contact Mark Osborne in the Chancellor's Office Accounting Department at (562) 951-4637 or via e-mail to mosborne@calstate.edu.

Bill Musselman, Acting Director

CONTRACT SERVICES AND PROCUREMENT (CS&P)

Contract Services and Procurement is assuming responsibility for new functions associated with the support of grants and agency contracts. CS&P will be providing grant administration services for grants administered by the Chancellor's Office and for Chancellor's Office personnel who have received grants from either public or private sources. Support services offered by CS&P will include pre- and post- award fiscal, record management and compliance activities. For information concerning Chancellor's Office grant activity, please contact Carmen Peak at cpeak@calstate.edu.

Additionally, in concert with the realignment of the CSU Institute, the Office of University Services in Sacramento will be closing effective September 30, 2000. CS&P will assume support for agency contracts previously administered through University Services. These contracts are typically used by state agencies wishing to access CSU campus resources in support of research or other service needs. For information concerning state agency contract activity, please contact Jackie Baird at jbaird@calstate.edu.

Pat Dayneko, Director

FINANCING AND TREASURY

Commercial Paper Program Status

In August the CSU Institute approved additional exploration of a commercial paper program for the CSU. An information item on the program will be reviewed at the September meeting of the Board of Trustees. As conceived, this program would initially be designed to assist with the financing of major capital outlay for Dormitory Revenue Fund projects. If the exploratory process concludes the potential for savings and if approved by the CSU Institute and the Trustees, the program could be implemented early in 2001. Questions regarding the program should be directed to Rick Leffingwell at (562) 951-4570 or via e-mail to rleffingwell@calstate.edu.

Bond Rating Increase

The Trustees revenue bond program received a rating upgrade from Standard and Poor's on September 11, 2000. Housing bonds are now rated AA-, and student unions, parking, and headquarters bonds are rated A+. Ratings increases will assist in lowering the CSU's borrowing costs on upcoming bond sales. Pending approval by the Board of Trustees in September, sales of parking bonds for San Diego and housing bonds for San Bernardino are anticipated in early October.

Richard K. Leffingwell, Director

RISK MANAGEMENT

In conjunction with Cal Poly Pomona, CSURMA will be hosting an all day Workers' Compensation Technical Training Workshop on October 4, 2000 at the Ontario Hilton. For additional information regarding the workshop, please contact Kim Melchiori at (562)951-4586 or by e-mail to kmelchiori@calstate.edu.

The CSURMA now has a website, http://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.

The next meeting of the Risk Managers Affinity group will be on Thursday, October 26, 2000 at the Chancellor's Office.

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 http://www.calstate.edu/ga/.

INFORMATION TECHNOLOGY SERVICES
CMS:
The Human Resources Information System (HRIS) and Finance Information System (FIS) baseline software were made available to 1st wave campuses on September 1st as planned. Meeting this milestone date was a significant achievement attributable to the dedication, hard work and collaboration of hundreds of people from the 1st wave campuses, the Chancellor's Office, the CMS staff and consultants.

Deployment of the baseline HRIS and FIS systems followed system testing with the first wave campuses and acceptance of the baseline software by the Implementation Steering Committee (ISC). The baseline applications were deployed on 9/1/00 utilizing existing hardware at the West Ed facility with a transition to the Hardware Operations and Support Services (HOSS) data center anticipated this fall. On August 2, 2000, the CSU issued a Notice of Intent to Award the HOSS contract to IBM. Subsequently Unisys filed a Letter of Protest. After a formal review process, the Notice of Intent to Award to IBM was upheld. Final contract negotiations with IBM are underway.

Over 250 attendees from the 1st wave campuses attended Baseline Walkthrough Workshops from September 11-14. These workshops provided an overview of the FIS and HRIS baseline system deliverables, including sessions in planning, development, business process design, testing, and support and maintenance. Richard West was the keynote speaker at the workshop.

A new CMS help desk to provide support for the delivery of the baseline applications to the campuses was also successfully implemented on 9/1/00. The CMS help desk is the central point of contact for HOSS and Software Operations Support Services (SOSS) related problems and requests.

Hilary Baker, Senior Director

 

Academic Technology Services: MERLOT, Multimedia Educational Resources for Learning and On-Line Teaching, is one of the most successful projects to emerge from the ITS Center for Distributed Learning, located on the Sonoma campus. The MERLOT website (www.merlot.org) lists over 3,000 learning materials from a variety of disciplines. Learning materials typically include components of courses, such as a laboratory simulation, rather than a complete web-based course. In addition, the website gives learning materials a rating between one and five stars based on recommendations from a faculty peer-review panel. It also offers advice about how to create student assignments, and allows users to post comments.

MERLOT has grown from its CSU roots to include participating universities from 22 states. Six Canadian Universities are also members. The MERLOT project is organizing faculty into "peer-review panels" to review specific disciplines. Work is already underway to review materials in physics, biology, teacher education and business. Additional disciplines and fields will be selected in the near future. Eventually, Center staff expect that institutions will incorporate the MERLOT contributions, rankings and evaluations into their faculty promotion and tenure processes. Publishers have also expressed interest in the MERLOT site as a way to identify materials for potential commercialization.

Gerard Hanley, Senior Director

TECHNOLOGY INFRASTRUCTURE INITIATIVE: The build out of the campus infrastructures is proceeding on schedule. Campuses have agreed to adopt and maintain an "end-to-end" certified system for inter and intra-building cabling. This will ensure greater reliability and ease of operation.

Four vendors have been pre-qualified to bid on the TII Hardware and Electronics. The Final RFP was on September 15th to IBM, SAIC, Verizon and Pacific Bell. Proposed network solutions will be judged based on their ability to meet the CSU's technical specifications and improve operational efficiencies. In keeping with the philosophy of certified end-to-end cabling, the campus CIOs have agreed to install the same infrastructure at each campus.

IT DATA COLLECTION/ACCOUNTABILITY: As part of its accountability for the state funds invested in the Integrated Technology Strategy - Telecommunications Infrastructure Initiative (ITS-TII), the CSU agreed to report implementation results annually to the legislature for the next 8 years. CSU baseline data will be reported this year, FY 2000/01.

As part of this activity, CSU has coordinated all of the information technology data gathering activities into a coherent multi-year plan. Activities include institutional surveys (the first of which were completed by campuses this summer), usage/satisfaction surveys (information competence and staff surveys which were also undertaken this year) and systemwide data collection activities (which are in progress). For a detailed explanation of the data collection/accountability issue, as well as a schedule of activities, readers are directed to the website at http://www.calstate.edu/infotech/DataCol-Rep.shtml.

Mark Crase, 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.