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MESSAGE FROM THE EXECUTIVE VICE CHANCELLOR
MESSAGE FROM THE EXECUTIVE VICE CHANCELLOR
MESSAGE FROM THE EXECUTIVE VICE CHANCELLOR Brad Wells has rejoined the CSU as Assistant Vice Chancellor for Financial Services overseeing activities in Financing and Risk Management, Contract Services and Procurement, Accounting and Treasury. NEWS FROM THE DIRECTORS
BUDGET OFFICE,John Richards, Director Systemwide Budget Meeting
Campus financial staffs were briefed on the 1999/2000-budget allocation process on May 18th at a Budget Office meeting convened at the request of campuses. Detailed explanations were provided on the methodologies used to determine campus base budget adjustments, budget year expenditure increases, State University Fee and Nonresident Tuition revenue adjustments, and the policy proposal to fund increases in campus mandatory waivers. Campuses were also advised of several considerations that should be made when submitting Final Budget allocations in August, including compensation adjustments that will be required in the 1999/2000 fiscal year. The briefing was well attended and participant feedback was very positive. Final Budget
The Governor signed the Budget Act of 1999 (Final Budget) on June 29, 1999, the first time in six years that the state budget has been enacted before the July 1st deadline. The Final Budget includes $2.25 billion in General Fund support for the California State University and $749.4 million in projected receipts for revenue and reimbursements (after adjusting nonresident tuition revenue and mandatory fee waivers). The increase in CSU's General Fund support is $225.4 million, of which $24.2 million is provided to reduce State University Fee rates by 5% for the academic year. The Final Budget supports the Board of Trustees October request for increased mandatory costs, 3% enrollment growth, and the majority of a 4% compensation pool. It also provides a framework for developing a new higher education budget partnership with the state. Based on Final Budget appropriations, the CSU budget plan for 1999/2000 provides $213.2 million in new expenditure increases. It funds a 3.8 percent compensation pool ($69.8 million) for all employees and an additional 2 percent compensation supplement ($19.5 million) to address the CPEC-based faculty salary lag with CSU comparison institutions. Funds will be provided from one-time sources to permit a 4% compensation pool for all employees. The budget plan also funds a 3 percent increase in enrollment growth ($52.5 million) and ongoing support for plant maintenance ($12 million). The CSU's technology initiatives received $10 million. The Final Budget also specifies General Fund support totaling $9.3 million for applied agricultural and biotechnology research, Channel Islands campus support, and special legislative requests for campus-based programs. State matching funds of $2.4 million are also provided in the Final Budget for earthquake-related restoration of Verducci Hall at the San Francisco campus. General Fund support for outreach programs to improve student access to higher education ($14.4 million) is included in the Final Budget. This appropriation will fund student learning assistance, faculty alliances between university professors and high school teachers, and expanded support for CSU equal opportunity grants, precollegiate academic assistance and the California Academic Partnership Program. The Supplemental Report of the 1999 Budget Act reflects statements of legislative intent that were adopted by the conference committee on the 1999 Budget. A summary of the final requirements follows:
Nonresident Tuition (1999/2000 Budget)
The Governor's January budget reflected an additional $6 million in fee revenue that was to have been derived from an approximate 10 percent increase in nonresident tuition. In the May Revise and Final Budget, the Governor increased the CSU General Fund support to eliminate the need for any increase in nonresident tuition to finance the CSU budget plan. Therefore, there will not be an adjustment to nonresident fees in 1999/2000. Five Percent Reduction in State University Fee (SUF)
The final 1999/2000 budget includes funding to support a 5 percent reduction in the undergraduate and graduate SUF ($24.2 million). The Board of Trustees passed a resolution adopting a new fee schedule at the July 8, 1999, board meeting. The new annual SUF rate for regular, undergraduate students (6.1 or more units) will be $1,428, and for limited, undergraduate students (0 to 6 units), $828. The new annual SUF for regular, graduate students will be $1,506 and for limited, graduate students, $876. The revised fee schedule is posted on the Budget Office website. Final Budget Submission and Instructions
Final Budget allocations for 1999/2000 were issued to the campuses on July 15, 1999. As in past years, campuses will receive four amounts via the FTP server: (1)State University Grants, Campuses are requested to submit their budgets for all funds, including auxiliaries, to the Budget Office in the FIRMS format by August 12, 1999. It should be noted that SUG and EOP grants must be posted to the appropriate FIRMS object code while the remaining funds may be spread as deemed appropriate by the local administration. The requirement to budget specifically for EOP Grants, in addition to State University Grants, is a new provision of the Budget Act this year. As in the past, campuses have the flexibility (except as noted) to adjust their budget submissions to reflect their best estimate of the 1999/2000 campus budget plan. Lottery
The Lottery Review Committee has met twice and made a series of recommendations, which will be included in the final report to the System Budget Advisory Committee (SBAC). The final report is currently in draft. After sign-off by committee members, it will be released to all interested parties. It should be noted that the committee has not recommended any fiscal or programmatic changes in 1999/2000. CAPITAL PLANNING, DESIGN AND CONSTRUCTION,J. Patrick Drohan, Sr. Director Capital Outlay Program Status Report
The following is an update of the general status of the ongoing and future CSU capital outlay program:
CPDC Due Dates for CPB&G Agenda Items (November 16-17, 1999 Trustees' Meeting)
CPDC Due Dates for CPB&G Agenda Items (November 16-17, 1999 Trustees' Meeting)
A complete listing of 1999 and 2000 due dates for CPB&G agenda items is located at CPDC website http://www.calstate.edu/PPD/Executive/index.shtml Capital Projects Training Program
The next scheduled training opportunity will again concentrate on construction contract claim recognition and mitigation. The seminar is scheduled for August 10, 1999, in San Francisco and August 17, 1999, in Pomona and will be facilitated by Mr. Jeff Defeo of Pinnacle One. This training will include the following: DELAY ABUSES: REALITY v. RIP-OFF Ms. Nancy Garcia is handling registration and coordination. She can be reached at (562) 951-4130 or by fax at (562) 951-4922. FINANCIAL SERVICES,JBrad Wells, Assistant Vice Chancellor The campuses and Chancellor's Office are in the midst of closing out fiscal year 1998/99. The following table provides significant reporting deadlines for legal, FIRMS, GAAP, and IPEDS reporting. Questions related to this reporting should be directed to Ruth Stipp at (562) 951-4615 or by email to rstipp@calstate.edu. Bill Musselman, Acting Director CONTRACT SERVICES AND PROCUREMENT (CS&P), Procurement Training Development Library (PTDL)
On June 30, 1999, CS&P took possession of the first installment of audio-visual and text material for the PTDL. These, and additional materials to be obtained in the future, will serve as a resource for contracts and procurement personnel to augment their skill-sets and pursue their personalized National Association of Procurement Management (NAPM) Focus Assessments career development goals. The currently-available reference materials and the procedure for obtaining them are posted on the department website noted at the end of this section. PSSO Initiative
The PSSO executive committee is undertaking a multi-part initiative to explore legislative vehicles for updating CSU contracting authority to be consistent with other higher education institutions in California. Aspects of the project include efforts to increase formal bid thresholds for commodities and reviewing the CSU policy manual for contracting and procurement with a view toward updating to current best practice models. This initiative will be monitored to ensure consistency with similar CPDC efforts in the public works arena. Additionally the CSU may benefit directly from current legislation sponsored by DGS to raise existing statutory bid thresholds. Master Enabling Agreements
Two master enabling agreements have been executed. The first encompasses services with four firms (Charles Abbott and Associates, Esgil Corporation, PC Associates and Willdan Associates) to provide plan check services. Campus and the Chancellor's Office may engage the services of these firms by executing a Service Order in accordance with the provisions of the master agreement. The second Master Enabling Agreement is with The Gordian Group for the development of a fully functional Job Order (unit price) Contracting system. These agreements, and other information regarding CSU contracting activities, are available online at: www.calstate.edu/csp. Any questions on this subject should be directed to: Haaziq Muhammad at (562) 951-4591, or via e-mail at hmuhammad@calstate.edu. Pat Dayneko, Director Auxiliary Organizations
Housing Program
Interest in campus student housing projects has increased in the last few months. Any campus contemplating a new housing project is encouraged to contact the Office of Financing and Risk Management to coordinate the development of a calendar that includes key events and system requirements including a review by the Housing Proposal Review Committee. Coded Memorandum FRM 99-04 provides details about the process and is available on the above mentioned website. Student Union Program
The budget submissions for the student unions are currently under review. Assuming all operating agreements and leases are current, student union operators are expected to receive their operating funds in August. Should you have any questions, please contact Rosa H. Renaud, at (562) 951-4570 or via email rrenaud@ca,state Parking Program
To ensure that parking projects are included in the Non-State Funded Capital Outlay Program, several critical steps must be completed. This process entails the completion and submission of a parking study prepared by an independent consultant for bond-funded projects and a viable financial plan prepared by the campus administration. The Office of Financing and Risk Management can provide assistance in understanding the requirements that are contained in the instructions for the annual capital outlay submission and facilitate the successful sale of parking system bonds, should that be needed. If you have any questions on these parking program issues or need assistance in preparing a financial plan, please contact Rosa H. Renaud at (562) 951-4570 or via email at rrenaud@calstate.edu. Workers' Compensation Claims Administration Update
In anticipation of replacing the State Compensation Insurance Fund for workers' compensation claim administration services, a request for proposal was released on May 3, 1999. Nine responses were received by the deadline June 11, 1999. An evaluation committee composed of campus and Chancellor’s Office staff reviewed the nine proposals and selected six semi-finalists for site visits and interviews. The interviews will take place on July 26 and 27, 1999. The CSU and State Compensation Insurance Fund transition teams have continued to meet to make final preparations for the phased withdrawal of CSU claims beginning August 30, 1999. The transition will be completed by September 30, 1999. Dates for Board of Trustees Items
Agenda items for the September 14th Board of Trustees meeting are due to the Office of Financing and Risk Management by August 6, 1999. November agenda items are due on October 8, 1999. Richard Leffingwell, Director GOVERNMENTAL AFFAIR,Karen Yelverton, Senior Director Copies of CSU Legislative Reports and other legislative information pertaining to the CSU is available on the OGA website at http://www.calstate.edu/oga. INFORMATION TECHNOLOGY SERVICES,David Ernst, Assistant Vice Chancellor CMS Status Report
CMS is a CSU wide collaborative project to implement and support PeopleSoft's human resource, financial and student administration system software on the 23 CSU campuses plus the Chancellor's Office. The project will be completed over the next 5 &endash; 7 years. Much of the CMS project effort to date has occurred in the Human Resources area. Prototyping sessions have been in process for several months, starting with the workforce administration, time and labor, and base benefit processes. In the prototyping sessions, the team members review the PeopleSoft functionality and evaluate whether it will meet the requirements of the CSU. Modifications to the delivered PeopleSoft software are being kept to a minimum; most modifications identified to date are in response to CSU or State policy requirements. Prototyping for a portion of the student administration system has begun to define aspects of the student campus community processes that integrate with the human resource processes. More detailed project planning for the student administration system implementation is due to begin this summer. We are also working on a document that should help articulate the benefits of the CMS project that are expected to accrue to students, faculty and staff. Planning is currently underway to begin prototyping for the PeopleSoft financial processes next month. The chart of accounts prototyping will begin in August followed by general ledger, accounts payable and purchasing. CMS status reports will be made regularly in the B&F Newsletter to record progress of the project. Hilary Baker, Senior Director PLANNING AND ANALYSIS,Lenore Rozner, Senior Director Quality Improvement (QI) Programs
Questions concerning the QI programs, frameworks, benchmarking, satisfaction surveys or process mapping, should be directed to Ron Ashcroft at (562) 951-4552 or to rashcroft@calstate.edu. CSU Mentor Credit Card
The process of choosing an Internet credit card servicer for the CSUMentor Program is almost complete. Informed Decisions, CyberSource and CyberCash were vendors that provided information regarding the services they could provide to handle the Internet credit card process. All three vendors reviewed were found to have creative solutions. Vendor processes and the campus costs associated with each vendor's process are currently under review. It is anticipated that the vendor will be selected and the credit card application process re-activated by the end of July. Y2K - Embedded Systems Evaluation
Seven campuses participated in a follow-on to the embedded systems pilot project conducted on the Long Beach campus. The campuses developed inventories of physical-plant-related embedded system which were provided to Parsec Automation Corporation. The contractor then performed a compliance assessment using its equipment database, vendor websites and other sources. Participating campuses were provided with summary reports in June documenting the compliance status of known equipment and highlighting those pieces of equipment for which additional inventory documentation is required. Campuses also received vendor contact information to continue their own equipment evaluations.
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