BUSINESS AND FINANCE NEWS
August 28, 1996
The California State University
Business and Finance Division
Richard P. West, Vice Chancellor
We continue to review functions within the division of Business and Finance to evaluate the degree to which our ongoing responsibilities are consistent with the overall goals of the Chancellor's Office to decentralize operational functions, provide the campuses with greater flexibility and accountability, and streamline operations to reduce duplicative or redundant functions. Key principles that are applied in reviewing functions are: 1) a desire to continue to broaden the line manager's span of control, 2) emphasize processing transactions in a timely manner, 3) establishing a single point of contact for internal and external customers, 4) providing broad access to critical information, 5) delegating authority and responsibility.
Recently, we have reorganized the construction project approval and administration process to eliminate separate and duplicative processes for major, minor, and special repair projects. We have assigned responsibility for coordinating all capital projects (major, minor, and special repair) to the campus program manager in an effort to improve service by providing a single point of contact for all construction project activity. We have also reached agreement with the Trustees on a comprehensive overarching physical plant policy framework that addresses maintenance, repair (including health and safety concerns), renovation, and growth.
Within this overall framework, we had an opportunity to more clearly define the role of the Environmental Resources department further delegating responsibility for administration of the health and safety projects and risk management to the campuses. By incorporating the review and approval process for health and safety projects into the overall project review process carried out in Physical Planning and Development and delegating responsibility to the campuses, we can eliminate several duplicative functions in the central office.
As a result of these changes, we have eliminated the department of Environmental Resources and transferred environmental health and safety responsibilities to Risk Management. Two of the positions formerly part of Environmental Resources have been retained in the department of Risk Management to provide policy oversight and to manage outside consultants hired on an as-needed basis to provide technical expertise for the administration of risk management training programs, and construction projects involving environmental health and safety specialties such as asbestos abatement, air quality management, industrial hygiene, and environmental regulation compliance.
I appreciate your help during this transition period. Please contact Ms. Charleen Minnick in the department of Risk Management if you have any questions regarding this organizational change.
Richard West, Vice Chancellor, Business and Finance
NEW FROM THE DIRECTORS
Direct Vendor Pay
On August 19, AB 2613 passed the Senate and was forwarded to the Assembly for a hearing on August 26th.
Any letters sent and calls made to your local Senators to communicate the benefits of AB 2613 would be very helpful.
Audited Financial Statements
A special meeting of the Trustees Audit Committee was held on August 2 regarding the selection of an independent audit firm for GAAP based financial statements. The Audit Committee voted to reject all bids and not have a GAAP financial statement audit conducted for fiscal year 1995/96. However, we are still required to have a Revenue Bond and Federal Funds audit conducted for 1995/96. Therefore, it is still very important that each campus prepare a balance sheet as of June 30, 1996, since this will be audited as the beginning balances for the 1996/97 fiscal year.
The new timeline is for the Trustees to appoint an audit firm at their November 1996 meeting. The audit firm will immediately begin scheduling readiness assessments for the twelve campuses that have not gone through the GAAP audit process. Please let me know if you have any questions.
The following resolution is what was adopted by the Audit Committee:
Amend last year's contract with the accounting firm of Simpson & Simpson to audit the Revenue Bond Programs for the 1995/96 fiscal year only. Amend last year's contract with the accounting firm of KPMG to audit the Federal Funds for the 1995/96 fiscal year. Skip the GAAP-based financial statement audit for 1995/96. Rebid a three year audit package that would cover all three components of the audit program (Revenue Bonds, Federal Funds, and financial statement audits) starting with fiscal year 1996/97.
George Pardon, Director
AUXILIARIES PLANNING AND BONDS
Student Union Program
The student union program budget process is almost completed. Overall, the unions submitted their budget packages in a more timely fashion than last year. As the budgets are received we begin our department's review to assure that bond covenant and operating agreement requirements are met. After this review cycle, check requests are made to fund the union operations. If you would like further details on the review process, please feel free to contact, Rosa H. Renaud at 310-985- 2790.
Vending Machine Income
The vending machine income issue is proving to be a more challenging problem than expected as additional aspects are discovered. A working group has identified an approach that would be used to apply costs to machine revenue to determine a net profit, if any. We currently are reassessing the best process for moving forward and will have additional information out to the campuses within a short time.
Richard Leffingwell, Director
New Budget Reporting System
Progress is continuing on the FIRMS budget and accounting data reporting system. At a broadly represented meeting at the WestEd facility on May 9, 1996, campuses agreed to submit their 1996/97 final budgets in the FIRMS reporting format. Accounting data reported by campuses will not be converted to FIRMS until the 1997/98 fiscal year.
A systemwide subcommittee appointed from the representatives at the May 9 meeting developed a set of guidelines and definitions to be used for converting data from the Budget Data System (BDS) to FIRMS. These changes have been incorporated in the FIRMS operations manual and were transmitted to campuses on July 5, 1996. Work is expected to continue on this project.
Budget and accounting personnel have visited 18 of the 22 campuses for personalized instruction on the FIRMS format, access to it, and the 1996/97 final budget submission. Campuses have been requested to submit their 1996/97 final budget distribution by August 23, 1996. Submission may either be electronically via the FTP file server in Business and Finance or by mail via a properly formatted disk addressed to the budget office.
All bargaining units have ratified their contracts and everything has been finalized regarding bargaining units including the performance pay pools. Campuses should have received copies of the bargaining agreements as well as a joint memorandum from Budget and Human Resources on performance pay.
1996/97 Lottery Budget
The 1996/97 Lottery Budget is scheduled for action at the Board of Trustees' September meeting. Due to CSU's conservative revenue and expenditure estimates, changes in lottery revenue projections based on recent rulings by the court and Attorney General on the Keno and Scratchers games will not have a significant impact on the budget previously presented to the Board.
John Richards, Director
CONTRACT SERVICES AND PROCUREMENT
Procurement Modeling Project
This project, sponsored by the Commission on Instructional Management and Information Technology (CIMIT), is currently in the implementation planning phase. The outcomes of the project are to: minimize cost, improve productivity, use information technology effectively, maximize volume buying, and establish accountability. The six planning tracks are as follows:
I. Staffing and Incentives
The target for presentation of the implementation plan is 10/29/96.
PSSO Council Meeting
A meeting of the systemwide council of Procurement and Support Services Officers was held at San Francisco State University on July 29th. This council has been charged with implementing CSU-planned purchasing opportunities for multi- campus and systemwide contracts in addition to conducting a regularized forum to address issues in procurement and contracting. Currently the group is working on the following multi-campus contract initiatives:
Project task groups assigned to the various initiatives will be working directly with campus program and academic staffs for requirements analysis and development. Campus staff interested in pursuing opportunities for leveraging CSU buying power are encouraged to contact the Contract Services and Procurement (CS&P) office.
CSU Planned Purchasing Activity
The following is a status report on current CS&P managed procurements; contact Jackie Baird at 310-985-2557 for further information:
SUAM Draft Revision on Contracts and Procurement
The first draft version of a complete re-write on Contracts & Procurement Policy has been completed and distributed to the PSSO Executive Committee members for comments and suggestions. The sections in SUAM that are included in this re-write are currently numbered 2400, 2500, and 2900 (appendices). Any questions may be addressed to Cliff Johnson at 310-985-2785.
Campus procurement offices are encouraged to begin preparation of their 1995/96 recycled product acquisition reports in order to meet the September 1 submittal deadline to CS&P. Also, the 1996/97 Recycled Content Procurement Plan is to be prepared and submitted directly to CIWMB prior to September 15. A copy of the campus plan should also be mailed to CS&P for our files. Questions on this subject may be addressed to Cliff Johnson at 310-985-2785.
CSU Procurement Card
A new agreement has been executed for Procurement credit cards for State Agencies including the CSU. This new agreement provides a 36-month contract for credit card services with Rocky Mountain Bank with the possibility of two additional one- year extensions.
RMBC offers a toll-free 24-hour customer service line number: 1-800-227-6736. This number is assisted with a Voice Response Unit that will assist cardholders to access information such as available balance, account limits, prior transactions, activating new cards, and reporting lost or stolen cards. The Customer Service Department is fully staffed Monday - Friday from 8 a.m. to 8 p.m. EST.
CSU campuses continue to sign up for the State of California sponsored procurement card program. Currently 15 CSU campuses are in varying stages of implementation or utilization. Recently, both CSU, Bakersfield and San Diego State University have begun to implement a procurement card program. Welcome Aboard!!
Pat Dayneko, Director
PHYSICAL PLANNING AND DEVELOPMENT
Energy Procurement under Utility Restructuring
On July 26, 1996, the Hansen, McOuat & Hamrin consultant team, commissioned under a CSU Productivity Investment Program grant, presented their preliminary report on a strategic plan for the purchasing of energy by the CSU in the newly restructured utility industry. The presentation summarized the way most of the campuses are presently purchasing energy; described current opportunities in natural gas procurement; and discussed the many ramifications of current deliberations at the California Public Utilities Commission, the California Legislature, and the Federal Energy Regulatory Commission regarding the shape and rules of the deregulation of the generation of electricity. These rules will take effect on January 1, 1998. The CABO utilities workgroup, chaired by David DeMauro, will reconvene to review the consultants report and recommendations for procurement options. After receipt of additional information from the remaining campuses, the final report should be available by September 1996.
Stockton Development Center
An ad hoc committee of the CSU Board of Trustees has been formed to consider a special campus initiative related to proposed transactions that would transfer significant state-owned real estate holdings to the CSU.
CSU, Stanislaus has recently submitted a proposal to the Department of General Services to convey the now closed 102-acre Stockton Developmental Center to the campus. This would provide a new home for the Stanislaus Off-Campus Center that is currently located at Delta Community College. This proposal envisions the development of a regional center for education and human services. Stanislaus has done an excellent job in putting together its proposal that, if successful, will lead to unique partnerships with both public and private sector development. A primary consideration for the campus is that the Center must not require funding from the California State University state funded capital budget if the Center becomes part of the CSU.
LPA Awards for the CSU Headquarters Replacement Building
On July 19, 1996, fourteen projects were acclaimed as tops at the American Institute of Architects Orange County's 21st Annual Design Awards Ceremony. LPA, Inc., architects on the new headquarters building, won six of the fourteen awards. Of particular merit was the CSU Headquarters building that won a Merit Award for an "On-the-Boards" project with particular emphasis on the efficient core layout and flexible layout of the floor plans, and the design of the energy conscious exterior skin. In addition, the jury was pleased with the integration of the history of the CSU system in the landscape design.
PPD Due Dates for CPB&G Agenda Items (November 12-13, 1996 Trustees' Meeting)
Jon H. Regnier, Senior Director
PLANNING AND ANALYSIS
CSU One-Card Initiative
The task force comprised of 14 campuses and the Chancellor's Office have moved rapidly forward in developing one of the Integrated Technology Strategies Initiative's priority projects; the One-Card Initiative. The One-Card Task Force, chaired by CSULB's Bill Griffith, issued an RFP for the CSU "One-Card" (also commonly referred to as universal, all-campus and multi-purpose school ID cards), on June 29, 1996. Twenty-nine firms attended a non-mandatory vendors conference on July 16. The deadline for submittal of conceptual design proposals for this RFP covering ID, banking services, personal and campus long-distance telephone service, and an integrator function are due on August 16. The contract award date remains on target for early November 1996 to allow for implementation in early 1997. IBM Consulting is currently making campus visits to assist the participating campuses in the development of their implementation plans. These plans will provide the basis of a generalized plan for the other CSU campuses who may wish to opt-in to the contract and implement campus cards in the future. Contact Lawrence Lin at 310-985-2705 (e-mail: firstname.lastname@example.org) for further information.
Productivity and Investment Program (PIP)
During the 1995/96 cycle, the Productivity and Investment Program (PIP) Committee awarded $879,500 to 7 proposals from multi-campus consortia. As of July 1, 1996, the PIP Committee disbursed $292,000 of these funds to the awarded campuses upon receipt of their project plans, and will disburse the remaining funds based on the submission of project reports detailing their progress. Status reports on all awarded projects (including past cycles) are available on the Chancellor's Office web site under the Business and Finance section and were most recently updated in July 1996. Lawrence Lin at 310-985-2705 (e-mail: email@example.com) is providing staff support on this program.
The 1995/96 CSU Benchmarking project is nearing completion. On July 17 the Function Chairs met with the Task Force and presented their recommendations. The Final Report currently is being compiled by Coopers & Lybrand, the project consultants, for September distribution.
Two subcommittees have been approved to support the task force in implementation of the recommendations. Both committees will be comprised of campus personnel with staff support from the Chancellor's Office. The Customer Satisfaction Survey Committee has been given the charge to develop, test, and issue customer satisfaction surveys that will coincide with the next data collection efforts scheduled for 1997/98. Also, a joint committee made up of Function Chairs and Campus Coordinators has been given the charge to analyze and plan follow-up training and implementation seminars for this year's recommendations. Participation in the follow-up efforts during 1996/97 will be open to all campuses.
Process Mapping Workers Compensation/Unemployment Insurance
The Process Map Committee met with consultants Sedgwick James on August 1 to review the Final Draft of the Process Mapping report. Drafts of the final copy will be sent in mid-August to Vice Presidents of Administration and Finance, the CSU Benchmarking Task Force, and Campus Risk Managers for comment.
CSU Collaborative Management Systems Task Force
The Task Force, chaired by SLO Vice President Frank Lebens, has met several times in the last three months to prepare a proposal for CABO on the future direction for CSU administrative systems. The proposal was presented for discussion at the August 21 CABO meeting.
This task force was also asked to be the key interface (in conjunction with the Chancellor's Office Human Resources department) with the State Controller's Office human resource information systems study currently underway. As such, the task force met with Watson Wyatt, the SCO's consultant, in July and submitted the CSU conceptual design for HRIS. Focus group meetings with the consultant will be held at task force member campuses during September and October.
Contact Ron Ashcroft at 310-985-2706 for more information on Benchmarking, Process Mapping, and the Collaborative Management Systems Task Force.
Lenore Rozner, Senior Director
The Business and Finance Newsletter is now accessible from the Chancellor's Office website: http://www.calstate.edu/BF/Newsletters/Newslet.shtml.
If you have a question or comment on a technical issue related to receiving the B&F newsletter or want to add, delete, or modify an e-mail address, please contact Suzanne Wallace at voice: 310-985-2075, fax: 310-985-2710, or e-mail: firstname.lastname@example.org.