Budget Office


Contract Services and Procurement

Financing and Risk Management

Governmental Affairs

Information Resources and Technology

Physical Planning and Development

Planning and Analysis




Hope Scholarship Reporting/Vendor Conference

Several campuses have expressed an interest in exploring the possibility of outsourcing the reporting requirements associated with the Taxpayer Relief Act of 1997 (TRA97). To facilitate the discovery phase of this process, the Chancellor's Office is organizing a vendor conference in which interested third party contractors can present their approaches and competency in addressing TRA97 solutions.

Although the conference is in the planning stage, we have reserved the auditorium at the Chancellor's Office for three days beginning Monday, August 31. Campus TRA97 coordinators and others interested in attending should plan their schedules accordingly. Mark Osborne in the Chancellor's Office is the contact person for this conference and can be reached at (562) 985-2886 or

President's Spouse/Voluntary Employee Status

The issue has come up recently where the State Controller's Office refused to reimburse a campus for travel costs related to a President's spouse. The travel was done on University related business. While a campus may get criticized by the SCO for these kinds of reimbursements, the ultimate problem was that the University did not have the President's spouse signed up as a voluntary employee. Given the role and duties that many presidential spouses perform in support of the president and on behalf of the university, appointment into the "voluntary employee" category is appropriate. Having the President's spouse designated as a voluntary employee also provides for coverage under our worker's compensation program in the event of an injury or other occurence and extends the institutional legal liability coverage to them.

Safeguarding State Property/Inventory Control

The issue of inventory controls is noted frequently in FISMA audits. In February 1996, Executive Order No. 649 delegated to each campus president the authority to establish and maintain a system of internal controls to safeguard state property. This executive order states that the president may elect to continue to follow the State Administrative Manual (SAM) guidelines (Section 8651 et al) or they may institute a policy more appropriate to the university's environment. Guidelines for the development of a campus policy are outlined in the executive order. The State Administrative Manual (SAM) Section 8652 requires that campuses make a physical count of all property and reconcile the count with the accounting records at least once every three years. SAM also delineates other inventory control requirements. Each campus should review their inventory/property control procedures to ensure compliance with these requirements.

George Pardon, Director


Final Budget Allocations

Campuses received Pre-Final Budget allocations on July 31, 1998, in coded memorandum B 98-04. Budget submissions based on these allocations were due in the Budget Office August 17, 1998. The Governor and legislative leaders have reached agreement on outstanding budget issues for 1998/99 and any modifications to campus pre-final budget allocations required by the budget will be made in accordance with the guidelines set forth in B 98-04. Any questions concerning Final Budget allocations should be made to Rodney Rideau at (562) 985-2712.

John Richards, Director


Summary of Target Reporting and Procurement Card Statistics

The CSU continues to achieve significant dollar savings through lower prices as a direct result of using our combined leverage to achieve better unit pricing by negotiating systemwide agreements. During FY 1997/98 the CSU spent over $775,000 on Microsoft licenses and saved over $1.5 million. Under the Apple Direct agreement, $12 million was expended with savings in excess of $908,000. Recently negotiated commodity agreements implemented with Office Depot and Fisher Scientific have resulted in purchases in excess of $451,000 for Fisher; with savings over $246,000, and Office Depot purchases totaled over $726,000; with savings of almost $750,000. Agreements for the purchase of Claris software products, medical supplies for health centers, Steelcase furniture, and Meeting Maker software licenses also have resulted in significant savings for the CSU.

In addition, systemwide usage of the CSU-sponsored procurement card continues to expand each quarter. Twenty-one campuses and the Chancellor's Office have implemented the use of procurement cards with annual purchases of over $10 million, consisting of approximately 2,000 transactions.

CS&P Systemwide Training Initiative

The National Association of Purchasing Management, (NAPM) has recorded and scored the Focus Assessments administered systemwide. The CSU had 100% compliance from its campuses. The systemwide data analyzed by the CSU Curriculum Training & Development Team, (CTDT) was synthesized into the top ten areas that were identified as areas necessitating curricula development. The CTDT will be co-venturing with external and internal curriculum providers to develop and implement self-sustaining training modules for CSU contracts and procurement staff. Plans are also underway to include the UC contracts and procurement staff in the training.

Electronic Commerce

The Electronic Commerce project team and the Campus Procurement Officers are currently reviewing functional specifications to be included in an RFP to select an Electronic Commerce provider. The RFP should be issued by the end of August with responses due in September. Three vendors remain in the competition for campus pilot programs and the project teams is dovetailing its efforts for timely pilot projects with the Collaborative Management Systems initiative. Visit the project web site for recent project information, team member contacts. Information requests should be sent to Tom Roberts at

Pat Dayneko, Director



Student Union Program

As campuses and unions work together on construction projects, all parties should consider that bond-funded projects have certain U.S. Federal tax spend-down requirements. In order to avoid potential tax penalties, construction projects must move forward as expediently as possible. Please feel free to contact Rosa H. Renaud at (562) 985-2790 to request further information and/or to have a copy of the tax certificate, which outlines the spend-down requirements, forwarded to your office.

Risk Management

Save these dates: Nov 4-6, 1998. The second annual "Risk Management: Fitting the Pieces" Conference will be held at the Newark/Fremont Hilton (just north of San Jose).

Special guest speaker Richard Pimentel will address a general session on "Return to Work and Disability Case Management." Richard is a nationally recognized speaker and assists employers in developing effective programs.

Jeff Chasen from United Educators has also agreed to speak. Jeff is litigation counsel to United Educators, a mutual insurance company founded and owned by several universities and colleges. Jeff's session will cover student field trips and volunteers.

Other sessions planned include liability case study, unemployment claims processing, an update from our third party administrator, environmental health and safety issues, a preview of the disability case management program that is in development, auxiliary organizations risk management issues, and updates from our service providers: Sedgwick, ORIM, and SCIF to name a few.

For further information regarding this conference, please contact Marti Lopez or Charlene Minnick at (562) 985-2080.

Richard Leffingwell, Director


For copies of CSU Legislative Reports or other legislative information pertaining to the CSU, please visit our website at

Karen Yelverton, Chief Professional Officer


For information related to technology projects within the CSU, please visit our website at

Tom West, Assistant Vice Chancellor


Society of College and University Planners (SCUP-33)

The CSU was well represented at the 33rd Annual Society of College & University Planners Conference in July. Presentations were made by Jay Bond, CSUF; J. Handel Evans, CSUCI; David Rosso, CSU; Maureen Shideh and Deborah Wylie, CSUN; Dell Felder and David Salazar, CSUMB; Stephen Daigle, Gordon Smith and David Ernst, CSU; Tony Fulton and Larry Piper, SDSU; Cher Thomas, CSU; along with several conveners from the CSU campuses. Over 1,000 international attendees had the opportunity to learn of the various CSU endeavors. Several architectural and engineering firms featured CSU projects in their portfolio presentations.

Update: Construction Lawsuits

The last lawsuit remaining from projects started in 1991 and 1992 has been successfully mediated. Terms of the settlement preclude the general contractor and the major subcontractor to the suit from bidding any CSU work for the next five years. This term has been incorporated into two other settlements involving different general contractors and two major subcontractors. This settlement requirement was a major factor in a fourth settlement where both the general and major subcontractor withdrew their claim rather that agreeing to the no-bid clause.

Five-Year Capital Outlay Program

The draft five-year capital outlay program was presented to the Board of Trustees in July with the final version scheduled to be released for the September BOT meeting. Once again the total campus requests far exceed the anticipated level of funding and priority setting will continue to be critical.

Capital Projects Training Program: The Law of Design and Construction in The California State University

In July, the above-referenced seminar was presented to campus staff in northern and southern California sessions. It was prepared and presented by Deputy General Counsel, Bruce Richardson. Additionally, Lee Rydalch, Bob Schulz, Cliff Hahn, and Jim Corsar served on the panel. This provided an excellent one-day course in the laws governing the CSU's authority to design and construct projects. Another sesson will be scheduled for this fall.

Electronic Project Management Tools

A two-day, hands-on education program for university capital projects managers and administrators will be held at the Long Beach Renaissance Hotel on September 24-25, 1998. The Facilities Management Institute, CSU Office of the Chancellor, the Project Management Institute, and UC Office of the President will present this program. Registration information will be mailed shortly to all campuses.

Design/Build Process and Contractor Prequalification

Two seminars (northern and southern California) are being planned for October 16 and 23, 1998, on the above-referenced subject. The presentations are designed to bring the campus capital projects managers up to date on the most recent revisions to CSU procedures, current laws relating to the topic of design/build project construction, and issues of contractor prequalification. More details will be forthcoming.

PPD Due Dates for CPB&G Agenda Items (November 10-11, 1998 Trustees' Meeting)

Master Plan Revisions:
All Other Items:

September 8, 1998
September 22, 1998

J. Patrick Drohan, Deputy Senior Director



Collaborative Management Systems (CMS) Project

In June, the CMS Task Force transmitted their work product and recommendations to the Commission on Information Management and Information Technology (CIMIT) and the Executive Council. The Task Force recommended selection of PeopleSoft to supply the integrated administrative information software suite that would be supported by the campus collaborative. On July 10, 1998, the Chancellor issued a memorandum and supporting documents to campus presidents to confirm the discussion and decision at their Executive Council Retreat in June to move forward with the Task Force recommendation and proceed to negotiate a final service agreement with PeopleSoft. Contract negotiations with PeopleSoft are commencing in mid-August.

Also in June, the CIMIT was presented with a draft conceptual HR/Payroll model and recommendations from the Task Force workgroup regarding the CSU HR/payroll interface strategies with the implementation of the SCO 21st Century project. The Task Force workgroup is working closely with the HR consultant to finalize the model and recommendations during August. If you have any questions concerning CMS, please contact Lawrence Lin at (562) 985-2705 or Project Director John Miller at (562) 985-9607.


The "Partnerships for the Improvement of Campus Operations, Student Services, and Academic Services Program" (PICOSAS) Committee evaluated 59 campus proposals and agreed to fund five proposals for a total of $610,000. All funded proposals have begun implementing their projects and will be submitting periodic progress reports regarding their activities. If you have any questions about PICOSAS, please contact Lawrence Lin at (562) 985-2705 or e-mail: for additional information.

Benchmarking Project

Functional Chairs presented the results of the benchmarking effort and customer satisfaction surveys to the Benchmarking Task Force on July 30 and 31, 1998. The final report will be issued in September.

Plans are underway for a limited benchmarking data collection effort in the fall for several functional areas, including libraries, mail services, and student health centers. Follow-up meetings for further data analysis and an executive level seminar on uses of the information are scheduled for mid-November.

Customer Satisfaction Survey

Members of the Customer Satisfaction Survey Subcommittee are actively engaging the input of the functional groups to further refine the existing survey questions for that function (e.g., facilities, accounts payable, financial aid) relating to the benchmarking measures. Completion and testing of the new instrument is scheduled for Fall 1998, with administration of the survey anticipated in the spring of 1999.

If you have any questions concerning benchmarking or customer satisfaction surveying, contact Ron Ashcroft by e-mail: for additional information. telephone at (562) 985-2706, fax (562) 985-2710).

Process Mapping

KPMG was selected as the consultant to conduct a process mapping/activity based costing study of the Distribution/Delivery services at four campuses (Chico, Long Beach, Pomona and San Jose). The study begins in August and will be completed in early 1999. If you have questions regarding this project, contact Glenn Ducat at (562) 985-2721.

Year 2000 Embedded Systems

In cooperation with IRT, development of a demonstration project dealing with embedded microchips that may be subject to functional problems associated with date changes during 1999 and into the year 2000 is in progress. CSU, Long Beach has agreed to jointly sponsor an on-campus effort that is intended to serve as a process template for other campuses to use in performing their own inventory, assessment, and remediation activities to address this problem. With Parsec Automation Corporation as the contractor, the project commenced on August 10 and will be completed by the end of September. The results will be shared with all campuses. Glenn Ducat is the Chancellor's Office contact on the project.

Lenore Rozner, Senior Director

The Business and Finance Newsletter is now accessible from the Chancellor's Office website:

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: