Wednesday April 3, 2013, Conference Call

Delegate Meeting

Wednesday April 3, 2013, Conference Call 9:00 a.m. – 11:30a.m. https://my.loopup.com/Conferences/join.aspx?ACCESSCODE=0210048

Members X Eva Hebebrand for Doug Wade (Bakersfield) X Nancy Hayes (San Francisco) CABO Liaison X Missy Jarnagin (Channel Islands) X Agnes Wong Nickerson (San Francisco) Chair X Stacie Corona (Chico) X Josee Larochelle (San Jose) X Karen Wall (Dominguez Hills) X Lorlie Leetham (San Luis Obispo) X Debbie Brothwell (East Bay) X Mary Hinchman (San Marcos) X Clinton Moffitt (Fresno) X Letitia Coate (Sonoma) X Brian Jenkins (Fullerton) X Julie Benevedes (Stanislaus) Carol Lorentzen (Humboldt) X George Ashkar (Chancellor’s Office) X Laurinda Fuller for Sharon Taylor (Long Beach) X Rodney Rideau (Chancellor’s Office) X Jose Gomez (Los Angeles) X Jean Gill (Chancellor’s Office) X Steve Mastro (California Maritime Academy) X Mike Redmond (Chancellor’s Office) X John Fitzgibbon (Monterey Bay) Tom Roberts (Chancellor’s Office) X Deborah Wallace (Northridge) X Michelle Schlack (Chancellor’s Office) X Darwin Labordo (Pomona) Nancy Freelander-Paice (Chancellor’s Office) X Kendal Chaney-Buttleman for Justine Heartt X Lily Wang (Chancellor’s Office) (Sacramento) X Deletta Anderson (San Bernardino) X Sedong John (Chancellor’s Office) X Lorretta Leavitt (San Diego) Jessie Lum (Chancellor’s Office) X Michelle Norton for Mick McBride (Chancellor’s Office) Chris Canfield (Chancellor’s Office)

1) Welcome

Meeting commenced at 9:01 a.m.

2) Agenda Approval

Agnes noted a follow up item from the previous meeting for “Tracking Employee AR”. Per Lily Wang, a draft of the system wide guideline is slated to be distributed by June 19, 2013.

3) Treasurer’s Report – Mary Hinchman

Mary Hinchman reported a fund balance of $104,684.01.

4) CABO Update – Nancy Hayes

Nancy Hayes reported that CABO had a day- long meeting after the Procure-to-Pay (P2P) joint meeting of March 12, 2013. There was follow-up on the P2P Phase II report with particular emphasis on communication. Additional items discussed at the meeting are included on the FOA agenda.

of 5 5) FOA Election – Karen Wall

Karen Wall thanked the committee members and those who accepted nominations. The new officers are: Jose Gomez (LA) -Vice-Chair, Lorretta Leavitt (SD) –Treasurer and Lorlie Leetham (SLO) is the Member-at-Large. Congratulations to the new officers.

6) CSU 101 Update – Agnes Wong Nickerson

Agnes reported that the hotel agreement has been signed with the Parc 55 Wyndham in San Francisco. In addition, the agreement with the downtown campus has been signed for the use of the classrooms for the training.

7) FOA Conference Update – Sharon Taylor

Sharon Taylor was unable to attend. The item was tabled for the next FOA meeting.

8) Budget Update – Robert Turnage (Time certain at 10 am)

Robert Turnage reported that there was a long meeting with the budget committee staff on yesterday. The meeting focused on the Governor’s proposal of capital funding being folded into the CSU support budget. There are a lot of implications to this proposal. It was clear that the LAO office is skeptical of the overall proposal. This meeting was one of many held at the staff level in preparation for a hearing. This issue will be heard on April 25th in the Senate budget sub-committee. On April 24th it will be heard in the Assembly budget sub-committee along with other issues pertaining to the CSU support budget. The Governor must release the May revise by 5-14-13. The May revise is critical to understanding the state’s revenue forecast.

A very important discussion was held at the March 19 and 20th BOT meeting regarding how the CSU will pare down the list of high priority needs that the Board adopted and match these to the Governor’s proposals. There would have to be a lot of triage with the proposed and it was determined that $1 out of every $3 can be accommodated in the Governor’s proposed $125.1 million programmatic increase. The Chancellor felt that the BOT is comfortable with the basic approach of the division of the funds. The CO will work earnestly on developing the budget allocation memo to be submitted within a week.

9) Follow up Items from Previous Meeting: i) Update on CASHNet - Josee Larochelle

Josee reported 3 items: 1) Higher One relationship manager for the CSU campuses. There was no objection from the committee for one manager. May 1, 2013 is the transition date for campuses to be assigned to the manager. Eight schools are already on board with manager Darryl Sykes. There are 13 other schools to transition. 2) The legislative issues as mentioned in the last meeting by George Ashkar with respect to Higher One services in California. AB1162 is related to student financial aid debit cards and the one disburse business process. Higher One is working diligently to help ensure the bill does not pass. 3) HUG Conference (April 28 – May 2, 2013) at Doubletree by Hilton, Berkley Marina. There will be a specific CSU breakout meeting April 30, 2013. Discussions will include the use of the VISA card, training and synergy efforts. Action: Josee will share the tentative agenda with the FOA.

10) Procure to Pay Update/Webinar for Procurement and AP Staff ? – Mike Redmond

Agnes noted that there was a suggestion to offer a webinar for the Procurement group in an effort to open up the discussion on the P2P initiative. Mike Redmond reported that there was a good meeting recently with the PSSOA group. There was also discussion to incorporate the AP group. Per Lauri Reilly, the AP group does not meet often due to cost. Mike agreed to follow-up with Brian Jenkins (Fullerton), AP Liaison, and Lauri Reilly to see when a meeting for the group could be arranged. Mike noted that the PSSOA, FOA and AP groups will be pivotal to the success of the P2P initiative.

An RFP is out for the P2P implementation and a preliminary look at the companies has been completed. Mike reported that the CO received 7 or 8 responses to the RFP. A committee, which may include some faculty advisors will be established to review the responses to the RFP.

Mike also noted that the CSU Synergy website http://www.calstate.edu/synergy/ has been updated. Page 2 of 5 A question was raised regarding the potential impact of the P2P initiative with the Auxiliaries. Mike noted that we need to gather information on how campuses integrate processes with Auxiliaries. The goal at this point is to enable strategic procurement.

There was a lengthy discussion on the webinar proposal for P2P. Mike suggested that the face-to-face meeting approach seems to be more effective. A review of the potential costs of hosting such an event needs to be discussed. Again, Mike will touch base with Brian (Fullerton). Mike noted that transparency and communication is key, and not to overstate or hide impacts of the initiative. By December, or next January, more of the change management issues should be answered.

11) How Campuses Deal with Establishment of and Control Over Satellite Cashiering Sites?

Deletta Anderson (SB) wanted to know if campuses experience control issues over satellite cashiering sites. She asked if there are procedures available from other campuses that Delegates would be willing to share. Agnes and Lorlie offered to share their current policies on the subject. There was a brief discussion on the matter.

12) Travel Policy Discussion– Per diem and New Hotel Rate – George Ashkar

See notes under Item #16, Chancellor’s Office Update - Financial Services – George Ashkar

13) CFS DW Phase II List/ Develop Priorities for CFS Data Warehouse – Lily Wang

The CFS Executive and Steering Committees would like FOA to review the Phase II list, prioritize the items and make a recommendation to CABO for the next phase data warehouse implementation. There was a brief discussion on the topic. Steve (Maritime) noted that he would be interested in working with a group to determine priorities. The categories are broad and it was suggested that sub topics be developed that pertain to the activities listed on the handout. Debbie Brothwell (Eastbay) also noted that the design team prioritized the list a few years ago. Action: The CFS Advisory group will establish a sub-committee to prioritize the items. Josee will send a note to FOA and ask for volunteers for assistance. The current advisory team members are: Josee, Letitia, Debbie Brothwell, Carol Terry and Sharon Taylor.

14) Phase II GAAP Basis Edit – Sedong John

Sedong reported that the purpose of the Phase II GAAP combo edit is to improve accuracy and consistency of GAAP financial data across the campuses and assist campuses with correcting errors prior to GAAP closure. Like the legal edit combo in CFS to detect incorrect combinations in the legal ledger, a GAAP combo edits table based on the GAAP manual has been added this year to identify invalid combinations of net asset categories, CSU fund, GAAP account, and program code in the GAAP ledger.

Sedong thanked the 4 campuses (FU, LA, PO, and SA) involved in the initial testing. In the next round of testing, campuses are divided into two groups so that the testing is done in an orderly fashion and the CO responds to the results in a timely manner. However, if your campus is in the second group (campus names starting with N through S) but want to do the test in April rather than May due to concerns about the workload in May, it was agreed that those campuses can test in April. Sedong noted that if too many campuses submit the test results in the same period, it may delay the CO analysis and response. The edit table itself is currently available in the CFS test instance and should be accessible by all campuses. Campuses should send feedback directly to Su Chen and Roberta McNeil. Action: An email will be sent to update the campus GAAP coordinators.

15) Upcoming Webcasts - Lily Wang  WASC – 04/09

This webinar will discuss the annual survey each campus needs to complete. KPMG is hosting.

 IRM – 04/11

The webinar will discuss the upcoming financial statements in an effort to ensure that KPMG can place reliance on our system controls. In the past this training was done in May, which was a little late to prepare for the audit. The email invitations have been sent to the campuses.

of 5  CE/EE Reserve – Tentatively 04/23

This training relates to the document Kelly Cox sent to FSAC and FOA on the Continuing Education reserve. The training is tentatively scheduled for April 23, but may be subject to change.

16) Chancellor’s Office Update  CFS & CHRS Update – Michele Norton/Karen Wall

Michelle reported that the MP4.4 will be released May 2, 2013. On May 6, 2013 there will be a review call with campuses. Campus testing will begin May 6, 2013 and continue through May 17, 2013. Campus sign-off will be Monday, May 20, 2013, with the package being moved to production, Wednesday, May 22.

Karen reported that CHRS design team is no longer meeting. The design documents have been turned over to the consultants and they are prototyping for the modules to the system. The design team will continue to work with consultants over the next year and review the functionality of the 9.1 and 9.2 to explore what can be incorporated in the design mods.

 Financial Services – George Ashkar

George reported that there will be a memo coming out shortly related to the dates of the upcoming audit. This will be an official announcement in writing. The memo includes a timeline, PBC’s, and reduction of the PBCs. The main change is the due date of the reporting packages from September 6, 2013 to August 26, 2013. September 20, 2013 is the due date for the Auxiliary organizations reporting packages.

Travel – A memo will be released shortly. The memo will align with EO688 and the delegations to provide flexibility to delegate down and continuity. The policy change in travel was posted 3-29-13. The main change is the approval of travel for exceptions on the hotel rates. There is also a change in the mileage rates with other minor changes also noted.

The Bureaus of State Audits (BSA) audit is moving forward at the campuses.

Jean Gill noted that Sharon Taylor would like to develop a committee to talk about a per diem for meals in the system.

George would like to know if campuses are experiencing a high level of exceptions on the lodging max rate of $175. George is willing to go back to Dr. Quillian and discuss reconsideration of the rate for cost of living increases, etc. Mike Redmond reported that Dr. Quillian has asked CABO to keep an ad hoc report of the rate for future discussion. Nancy reported that CABO would keep informal notes of the exceptions to be reported to George and the FOA. Action: FOA will do ad hoc tracking and report exceptions to George in June 2013.

 Budget – Rodney Rideau

No report.

 Procurement – NA

No report.

 ICSUAM – Mike Redmond

Mike Redmond thanked Justine Heartt, Lily and the student affairs team in forging ahead with the development of the student club fund policy, which is in progress. Once a working draft of the policy is available, FOA will be notified.

The ICSUAM 1401.00 Campus Legal and Regulatory Compliance policy has been drafted and available for review on the on the website. The comment period is open until 4-12-13.

of 5 Mike noted that his team is working on an update of the ICSUAM website. The CSYou will house an improved version of the ICSUAM; this should be available in the next couple of months.

 Audit – Michelle Schlack

Michelle reported that the team is completing the Credit Card and International Program audits and continuing with the Sensitive Data audits. In a couple of weeks the pilots will begin for the Hazardous Materials Management and the Centers and Institutes audits. Lastly, the OUA just completed the second Advisory Services project.

17) Liaison Reports  Accounts Payable (AP) – Brian Jenkins

Brian reported that the AP group is in the process of planning a preliminary agenda for next year’s annual business conference. He will be following up with Mike Redmond on getting the group together to discuss the P2P initiative.

 Student Accounts Receivable (SAR) – Karen Wall

Karen reported that the SAR group has been sending out emails to engage campuses to get feedback on when campuses disenroll for non-payment. Some of the questions that came out of those emails related to; when do campuses turn on tuition calculation, do campuses give lead times prior to drops for non- payment, etc.

Several topics have also been discussed for the upcoming conference, namely, disenrollment, 1098-T’s, Return to Title IV, and the financial aid component of Perkins Loans. The group will decide on some overarching topics/placeholders to be presented.

 Purchasing (PSSOA) – Darwin Labordo

Darwin reported that the P2P initiative was the highlight of the last PSSOA meeting. The new chair of the PSSOA is Brian Cotham (Fresno). In turn, Clint will become the PSSOA representative for FOA.

 Budget – Missy Jarnagin

No report.

 Sponsored Programs – Letitia Coate

Letitia reported that the user group will be meeting on April 25, 2013. The meeting will be all day and take place at Sonoma State. The discussions will include topics to be presented at the next FOA conference and the enhancement of the module.

 CFS Advisory Committee – Josee Larochelle

No report.

Meeting adjourned at 10:47 a.m.