A MESSAGE FORM THE EXECUTIVE
Mr. Patrick Lenz will be joining the staff of Business and Finance next month as the Assistant
Vice Chancellor for Budget Development. He replaces John Richards, who retired as the Budget
Director in December 2001, after serving the CSU for 33 years. Patrick will be responsible for
development of the annual Trustees budget, allocations to campuses, and advocacy of the system's
funding needs with representatives in Sacramento. He will split his time between Long Beach and
Sacramento, depending on the status of state budget deliberations.
Mr. Lenz comes to the CSU from the chancellor's office of the California Community Colleges system,
where he held the position of Executive Vice Chancellor. Prior to that he was the Deputy Director
for the Senate Budget and Fiscal Review Committee for eleven years.
He is an alumnus of San Jose State, where he
received his BA in 1978. Patrick brings a wealth of knowledge, about
both budget development and the process in Sacramento, which will
truly be an asset for the system. Please join me in welcoming
Patrick when he joins the CSU in mid-August.
FROM THE DEPARTMENTS
PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice
Quality Improvement (QI)
The Customer Satisfaction Multi-Campus Survey Report for the Spring 2002
Survey will be available at the end of July on the QI Website. Over 23,000
surveys were administered on 11 campuses covering 13 functional areas.
Performance Measurement 2002 will begin in the fall, and function groups will be
working to refine their measures and to align those measures with individual campus
initiatives and strategies. In addition, the data capture tool to the pbviews
performance management system is being upgraded. This will not only provide a simple
web-based data entry portal for users but will also allow function representatives to
immediately view graphs on their measures, and in their own Balanced Scorecards, as soon
as the data is entered.
Support services have been expanded to assist campuses with their pbviews implementations.
There is now a listserve for System Administrators, as well as a listserve for pbviews users.
The first CSU pbviews User Group meeting was recently conducted, which brought together system
administrators from across the CSU to discuss system enhancements and coordinate implementation
systemwide. To date, representatives from 11 campuses have been trained in pbviews. In addition,
a team of Institutional Research directors are crafting a model in pbviews to track measures for WASC
Mark Your Calendars! The 5th Annual CSU Quality Improvement Symposium will be held on November 8, 2002
at the Crowne Plaza Hotel in Foster City, just minutes from the San Francisco Airport. This year's program
will feature expanded breakout sessions, in three tracks: "Assessment and Effectiveness," "Process Improvement,"
and "Performance Measurement." In addition, our keynote speaker will be Michael Josephson, syndicated radio
commentator and author who will address the topic: Quality Takes Character. Don't miss this opportunity to
see how QI practitioners across the system are making a difference for the CSU.
John Sanders, Manager
Dennis Hordyk, Assistant Vice
In April, the first Systemwide Revenue Bond (SRB) sale was completed, which took seven projects out of commercial
paper (CP). This created the opportunity to analyze some of the realized savings that accrued because of this
new program. Each project in the CP/SRB program will have a different saving rate depending on many factors, and
the analysis of any one project is very complex. However, the first two projects put into CP last February show
a present value savings of $394,000 based on a total project cost value of $25.1 million. This represents a savings
of 1.6% of the aggregate project amount achieved over a period of about 14 months in the program.
A small portion of this savings is due to the ability to spread some of the fixed issuance cost over a larger base
in the SRB program.
In this coming year, the CP program costs will be less than in the start-up year. We will also be looking at
possibilities for decreasing letter-of-credit costs as a result of the larger SRB revenue pledge, and decreasing
permanent bond financing interest rates further with use of some variable rate debt when the program fully
converts from the old housing indenture.
Richard Leffingwell, Senior Director
SYSTEMS STANDARDS AND REPORTING
FIRMS Data integrity Update
A CABO task force has been formed to recommend actions to improve the integrity of CSU's systemwide financial data. The committee,
chaired by Dennis Hordyk, was established after a number of inconsistencies were noted in data extracted from the Financial
Information Records Management System (FIRMS) while responding to recent data requests from constituencies. To address these
issues, the task force recommended the following:
A memo from Richard West dated April 26, 2002 was sent out to all campus Chief Financial Officers to provide information on the
new data integrity edits which will become effective with the last quarter submission of the 2001/2002 fiscal
year. These changes are applicable to all quarterly FIRMS submissions, including accounting data for the university and the
auxiliary organizations. Please refer to the summary of changes in FIRMS reporting requirements and the revised section 2.2 of the FIRMS Manual.
Please forward questions to Laleh Graylee at firstname.lastname@example.org@calstate.edu
- Provide annual training on FIRMS.
- Require campuses to reconcile the year-end FIRMS data submitted to the Chancellor's Office with all reports
submitted at year-end to the State Controller's Office. Establish a certification process.
- Re-enforce the deadlines for submission of FIRMS data. The Chancellor's Office will inform CABO members promptly
if their campus misses a deadline.
Improve the definitions of "object categories" in FIRMS.
- Revisit the issue of central support for FIRMS Program derivation rules in the PeopleSoft software.
- Develop policies/guidelines for reporting encumbrances, reserves or carry-forwards at year-end.
- Request that campuses perform a variance analysis by functional program to compare year-to-year data.
- Request that external auditors use FIRMS as a starting point to conduct GAAP audits.
- Require campuses to report all GAAP adjustments in the FIRMS format.
Capital Assets Inventory &
Deloitte's team will use the "Capital Assets Guide" developed by the Financial Standards Advisory Committee (FSAC) as the basis for determining the asset classifications, depreciation, and standard life for each specific asset class.
Deloitte will utilize the existing systemwide information relating to real properties provided by Systemwide Capital Planning, Design and Construction (CPDC) as the starting point to capture information that will be required to complete the asset inventory and audit for each campus.
The project deliverables will include campus detail reports and a systemwide summary, and will be completed by August 12th in order to allow the results to be included in this year's financial statements.
The Capital Assets Inventory and Valuation contract was awarded to Deloitte & Touche LLP.
This contract outsources the capital assets inventory, infrastructure valuation, componentization, and depreciation schedules for all capitalized assets exceeding the designated threshold amount of $5000 for year ending June 30, 2002, to assist campuses in complying with GASB 34/35.
The GAAP manual has been revised to incorporate GASB 34/35 requirements. The revised GAAP manual was provided at the June 5th GAAP Year-end Reporting Workshop.
For more information, contact Lily Wang at email@example.com.
Update on the IPEDS Finance Survey
Public institutions using GASB standards for reporting financial data will be required to implement the new GASB 34/35 standards
sometime in the next three years. NCES has developed a new finance form to accommodate the change to GASB 34/35 - a draft of this
form can be found on the IPEDS website at: http://www.nces.ed.gov/ipeds/web2000/GASB.asp. This form will be available for reporting
FY2003 finance data; the "old" form will also be available until all institutions have converted to the new standards.
To review data submitted for your campus during either the Spring 2001 or Fall 2001 collection, you can access the following site:
http://188.8.131.52/fall2001/Welcome.asp. Log in with your current ID and password; go to TOOLS, choose Select SurveyID, choose either collection and click on select. This will provide you access to your Spring or Fall 2001 survey screens and allow you to view and/or print your submission.
Please forward questions to Sedong John at firstname.lastname@example.org.
Laleh Graylee, Director
CONTRACTS SERVICES AND PROCUREMENT
Executive Order 824
This EO, released June 27, 2002, provided interim guidelines for the acquisition of goods and services while a
Governor's Task Force reviews the State's California Multiple Award Schedule (CMAS) and competition policies.
Executive Order 824 affects the way CSU makes orders off State contracts and has added a requirement to obtain at least three offers
when competition is otherwise required (i.e., over bid thresholds). Additionally, sole source requests now require a higher level of
The main impact to CSU is in the use of CMAS and State Master Agreements. Orders off those vehicles now require at least three bids
and are capped at a maximum dollar limit of $500k for IT, $100k for non-IT goods and, $250k for non-IT services. Policies regarding
the use of CSU Master Enabling Agreements remain unchanged. The State's Task Force activities will be monitored and CSP will
continue to advocate for cost effective and efficient State discount ordering vehicles.
The following new systemwide licenses have been released:
SFX Ex Libris is a one-of-a-kind library product for navigation and discovery in delivering powerful linking services in
the scholarly information environment. SFX is the only product of its kind that provides uniform, vendor-independent measures of
use-critical information for effective management of WEB resources. This product is available to all CSU campuses.
Macromedia is a set of products that allow the rapid development of rich Internet applications with integrated tools that leverage
leading web server technologies and device platforms. These products are available to all CSU campuses.
Microsoft Select Agreement. The CSU has entered into a Microsoft Select agreement through ASAP Software under which all
campuses may purchase Microsoft licenses. This agreement is in addition to the CSU Enterprise Agreement, which is currently being
renegotiated for renewal. The new Select agreement is not intended to replace the Enterprise Agreement. The Enterprise Agreement
covers Office Pro, the Windows Pro desktop operating system, and client access licenses for various Server products. The Select
agreement, allows campus faculty and staff to purchase other Microsoft products, including Server licenses and add on products
such as Visio and Project at discounted pricing. For more information on software contracts and licenses, go to
Pat Dayneko, Director
The Office of Risk Management is pleased to announce that the property insurance renewal was successfully negotiated
and bound on June 27, 2002 holding the overall increase to 38% - which was close to what was estimated last fall and less
than other institutions have experienced. Campuses were invoiced for their property premium as well as liability, workers'
compensation and IDL/NDI/UI insurance premiums on June 21, 2002. This latest insurance renewal will not change the current
The insurance market continues to experience heavier than expected losses. This trend began before last September
and was exacerbated by the events of 9/11/01. It is expected that this "hardening" of the insurance market will continue
for at least another two years.
There is also a continued deterioration in workers' compensation insurance coverage in the State of California. We will
continue to approach excess markets to maintain the highest level of coverage available.
Charlene Minnick, Director
Karen Yelverton, Assistant Vice
Copies of CSU Legislative Reports and other
legislative information pertaining to the CSU are
available on the OGA website at: http://www.calstate.edu/oga
David Ernst, Assistant Vice
CSU will be investigating a network management tool for 4CNet. Involved in the pilot are the companies providing aspects
of the TII infrastructure, including SBC (regional telephone operating company) and Cisco. The Sonoma campus will pilot
the tool set in July/August and new SUN servers will also be installed at the Dominguez Hills and San Bernardino campuses
to host SMARTS and CiscoWorks. These campuses will act as beta sites in September. System-wide rollout is expected to
begin in November and continue through March 2003.
Infrastructure Asset Management System (NIAMS)
CSU signed a contract with Planet Associates, Inc., of Iselin, New Jersey, to provide CSU campuses with that firm's
PLANET PNM infrastructure asset management software. The software is seen as an important tool for prudent
management of the major investment in technology infrastructure created through the TII build-out program.
The Chancellor's Office is providing funding for the acquisition of the software, for staff training, and for the
first year of software maintenance. After a brief prototyping activity at two volunteer campuses (Sonoma and
San Marcos), to test the planned techniques for Stage 1 and Stage 2 data collection and to establish appropriate
PLANET PNM linkages with CiscoWorks and Remedy, the package will be made available to campuses on a schedule
consistent with local TII project development and campus staff availability
CSU hopes to use the asset management software as an adjunct to the Standard Operating Environment (SOE)
software toolkit provided through SBC for network management.
TII Infrastructure Buildout
Bids were recently received at Chico (June 4) and Los Angeles (July 2) for the Stage 1 infrastructure upgrades.
In both instances, the low bid amount was well within the engineer's estimate for the project. These apparent
successes bring to ten the total number of campuses that have passed this important milestone in their Stage 1
implementation, with several others expecting to achieve the same status in the next few weeks. If all goes as
currently projected, all Phase 1 and Phase 2 campuses should be under contract by the early fall months of 2002.
The Infrastructure Terminal Resources Project took a major step in implementing system-wide training by installing
and piloting a web-based tool for creating Individual Learning Plans for each participant. This on-line tool should
be available for use for selected participants, primarily information technology professionals responsible for the
infrastructure on campus, by the end of July. Additionally, we are continuing to provide training classes for Cisco,
Sun, Concord, and SMARTS software for campuses whose projects are at critical installation milestones.
Mark Crase, Senior Director
CSU is investigating a knowledge management software product from ServiceWare, as a tool for keeping IT
professionals and others current on various technology issues associated with TII. If the project is successful,
the software can be used for a variety of topics beyond information technology. Training on the software occurred
on June 17-19. CO staff are developing best practices and procedures for those people who will be entering TII
related topics into the system. Once this is complete, a production environment will be established, with the
expectation that the system will go live in September.
COMMON MANAGEMENT SYSTEM
Web Registration Live!
Sonoma will offer the same web-based registration functionality for their students in early August.
The Fresno campus activated web-based student registration for fall 2002 classes using the PeopleSoft 8.0
software on July 8. The first student to access the system did so 36 seconds after it was up and running.
According to Bernie Vinovrski, assistant vice president for enrollment services, "Now, whether they are at
home or on vacation anywhere in the world, Fresno students can simply go online to check the schedule of courses,
their financial aid status and their other campus financial accounts, and then sign up for classes in about
2nd Wave Campuses Live on HR and Finance
Finance 8.4 Upgrade Campuses have identified new deployment dates for PeopleSoft Finance 8.4 based on the availability of the
CMS baseline software next summer. Approximately half of the CSU campuses will begin implementing 8.4 in July 2003.
Hilary Baker, Senior Director
Monterey Bay's Foundation operation is live on Finance 7.5. By the end of July, Chico and Channel Islands will be
live with HR 8.0 and Finance 7.5, and San Marcos will go live on the HR 8.0 Administrative Workforce functionality.
TECHNOLOGY SERVICES (ATS)
The Pharos project staff continues to conduct campus orientation and training visits in preparation for fall
implementation of the Pharos 1.0 version which includes an online catalog of combined library holdings, user-initiated
interlibrary loan, and unified search interface features.
There is a collaborative project between MERLOT, EDUCAUSE, NACUBO, higher ed attorneys, and LCX to create the MERLOT Digital
Marketplace for the e-commerce transactions and agreement to partner on a National Science Foundation proposal.
The MERLOT project continues to grow in national and international reputation, bringing greater value to the CSU.
MERLOT is developing multiple levels of participation within the higher education cooperative and member
Academic Technology (SWAT) Procurement & Dissemination
The SWAT Team has become a forum for inter-segmental collaboration between ITAC, ATAC, COLD, CO Procurement Dept, SEIR, CSU Faculty
Development Council, CATS, Directors of Academic Computing Centers, and Campus Bookstores on academic technology software and
Gerard Hanley, Senior Director
Services for consortium procurement and dissemination of academic technologies are being implemented. Planning
consortium negotiations with WebCT & Blackboard are continuing. Systemwide review of Turnitin plagiarism detection
services was completed. Staff is meeting with McGraw Hill on eLearning resources and consortium procurement.