Hilton Costa Mesa - Laguna Beach I and II Rooms

Delegate Meeting Monday, March 10, 2014, 10:00 a.m. – 2:30 p.m.

Hilton Costa Mesa - Laguna Beach I and II Rooms Please see email for remote access for call-in reports Members X Doug Wade (Bakersfield) X Josee Larochelle (San Jose) X Missy Jarnagin (Channel Islands) X Lorlie Leetham (San Luis Obispo) X Stacie Corona (Chico) X Mary Hinchman (San Marcos) Emelda Becerra (Dominguez Hills) VACANT (Sonoma) X Darrell Haydon (East Bay) X Regan Linderman for Julie Benevedes (Stanislaus) X Clinton Moffitt (Fresno) George Ashkar (Chancellor’s Office) X Sarah Song (Fullerton) X Rodney Rideau (Chancellor’s Office) (call-in) X Carol Lorentzen (Humboldt) X Jean Gill (Chancellor’s Office) X Sharon Taylor (Long Beach) Mike Redmond (Chancellor’s Office) X Mae Santos (Los Angeles) Tom Roberts (Chancellor’s Office) (call-in) X Ken Toet for Steve Mastro (California X Michelle Schlack (Chancellor’s Office) Maritime Academy) X John Fitzgibbon (Monterey Bay) Nancy Freelander-Paice (Chancellor’s Office) X Deborah Wallace (Northridge) X Lily Wang (Chancellor’s Office) X Darwin Labordo (Pomona) Sedong John (Chancellor’s Office) X Justine Heartt (Sacramento) Chair Michelle Norton for Mick McBride (Chancellor’s Office) X Ming-Tung “Mike” Lee (Sacramento) Chris Canfield (Chancellor’s Office) CABO Liaison X Monir Ahmed (San Bernardino) X Agnes Wong Nickerson (San Diego) X Franz Lozano (San Francisco)

1. Welcome and Agenda Approval – Justine Heartt

The meeting commenced at 10:10 a.m. The Delegates and subs introduced themselves.

2. Treasurer’s Financial Report (attachment) – Mary Hinchman a. Subcommittee Report March 2014 (attachment)

The ending fund balance is $162,583 and net income of $61,401. There was a lot of activity on the account during the month of February, due to the CSU 101 and the business conference. There was a deposit made for the CSU 101 last week. There is $89K projected as the year-end balance after conference payouts and activity.

Treasurer’s Sub-Committee report – reviewed background of the committee and the March 2014 report. There were two teleconferences. The group agreed to follow ICSUAM travel policy.

of 8 There was a lengthy discussion on the committee’s review and the Delegates were in consensus on the following: 1) FOA funds will remain with San Marcos versus moving to the CO, 2) Treasurer will utilize P-Cards for facilitating payments, 3) Hospitality rates will be outlined as a part of the trust agreement – using historical rates and averages on past conferences, 4) Contracts will be housed at the campus of the Delegate that chairs the conference(s). A copy of the contracts should be forwarded to the Treasurer.

There was a lengthy discussion on the hospitality rates as indicated in the Sub-Committee’s report. It was noted that rates as indicated may be low. In addition, there is complexity in dealing with multiple vendors when trying to coordinate and save dollars. The hospitality policy was not intended to cover conference meal rates. It was suggested that FOA approve a budget for the upcoming conferences and a separate hospitality policy for conferences is not warranted. It was noted that the ICSUAM states that conferences are included in the hospitality policy. Consensus: FOA should approve a written agreement and budget for upcoming conference(s).

Action: Treasurer will put together items as noted for the trust agreement and present to the Delegates for review at the next meeting.

There was a brief discussion on whether or not Delegates/campuses should be reimbursed for conference site visits. Consensus: Site visits for conferences will be reimbursed to the Delegates by the FOA Treasury.

There was a brief discussion on whether dual signatures should be required on contracts and, or having the Treasurer and Chair sign the contract. It was noted that campus contracts and purchasing and procurements officers/staff do review the contracts. Consensus: campus Purchasing and Contracts individuals should review and a dual signature is not required. It is the responsibility of the chair to make sure this happens. The Treasurer needs a copy of all contracts.

3. CABO Update – Ming-Tung “Mike” Lee (if available during CABO meeting)

The CABO group met during the FOA meeting. It was noted that there was a lot of discussion on capital funds budgeting and moving the debt service and the risks involved. With this shift, there is opportunity to bring new dollars to the campuses.

There was a brief discussion on the budget. There is $60MM left for the compensation pool and the $50MM for student success will be funded over a couple of years. The student success will be distributed on an RFP basis. The CO is looking at other ways to increase the compensation pool.

A reminder – the Governor’s plan is to increase the UC and CSU budget by 5% over the next year. A look at a tuition increase is probably not the best way to do this. The student success “voluntary” fee is being supported by the Chancellor. The CO has done an analysis and there is legal precedent for the fee.

It was noted that many of the campuses will be dealing with equity in pay increases.

It was announced that Trustee William Hauck passed away this weekend.

There was a brief discussion on the carryforward policy and a process to review the impact of the increases in the retirement benefits in the coming fiscal years.

There was discussion on the P2P and travel policies. It was noted that Interim Executive Vice Chancellor Sally Roush wants to focus on the following:

a. Travel policies and procedures - Identify a small working group of the FOA to be led by a CABO member – Brad Wells – (CSUEB), Lisa Chavez (CSULA), Deb Wallace (CSUN), Darrell Haydon, East Bay, and Monir Ahmed, San Bernardino. Page 2 of 8 The group will also review a travel module and how to make it easier for the campuses. b. P2P - Huron has been chosen to take on the project. This is a zero dollar contract. A working group should come together and identify a few strategic sourcing opportunities. The group should identify at least 5 areas of strategic sourcing opportunities that can benefit the system. There are about 1700 items that have been identified for strategic sourcing savings for the system. A catalog could be developed. Consideration should be noted for the cost of building a system. Action: Identify procurement group and FOA individuals who can best champion this project. Savings should be documented.

There was a brief discussion on the $175 maximum limit for hotel for reimbursement. Delegates noted that this limit is too low.

4. Budget Update – Ryan Storm (if available; will be presenting on Tuesday)

A review of the budget was presented at the general session on March 11, 2014. A PowerPoint presentation covered the following: 1) Current Year Finances 2) Budget Year Finances 3) Multi-Year Trends 4) CSU Support Budget 5) Governor’s Budget Proposals 6) Legislative Analyst’s Critique of Governor’s Plan 7) Next Steps in Budget Cycle 8) Future Considerations.

5. CO Financial Services Updates a. Financial Services Update – Lily Wang

George Ashkar will be presenting at the BOT at the end of March and he will report on CSU ratings and the debt service. He will ask for approval of revenue for debt for SDSU. Interim EVC Sally Roush will present a public private mixed use for SFSU. George will also report on corrective actions of the audits and A133. There was 1 audit finding and 7 Auxiliary audit findings. All campuses have completed corrective action plans. The CO has reviewed the NCAA Athletics Agreed Upon Procedures (AUP) reports for campuses. While all campuses are in compliance on the requirements, the CO will offer recommendations to strengthen the way some of the campus reports are presented.

The CO has plans to collaborate with CSUN on an eTravel module. A MOU is forthcoming.

b. Update on campus compliance with the NCAA financial reporting requirements – Lily Wang

The CO has reviewed the AUP for campuses. The CO will offer recommendations to strengthen some of the campus reports. All campuses are in compliance on the AUP.

There was discussion that the CO has plans to collaborate with CSUN on the PS eTravel module. As stated previously, a MOU is forthcoming. Utilizing this travel module will not be mandatory for campuses. Several campuses are in the process of reviewing options for travel modules and raised concern whether the PS travel module will be mandated.

Action: Lily will follow-up with George to make sure this will not be mandated and communicate the direction of the travel module.

There was a lengthy discussion on how CSU resources are used on projects. How are these prioritized with CFS? It was noted that the CSUN travel module is not a CFS initiative. It was noted that initiatives can be brought forth several ways. In addition, the data warehouse initiative for updating and enhancing was voted by CABO and put on a list, but the status is still not known.

of 8 There was lengthy discussion on how onerous the travel policy is for in-state and out-of-state travel. A draft of the revised EO 688 has been written to address inconsistencies with the travel policy. Cohasset is also working with the CO on these policies. It was noted that any document should be vetted with the FOA (subject matter experts).

Action: Lily will ask George about the status of the data warehouse initiative.

c. Procure to Pay Update – Lily Wang

The P2P item was being discussed in CABO.

d. CMS Updates – Michelle Norton (time certain 10:30 a.m.)

Report submitted via email and forwarded to FOA. a. Database FCFSPRE was ready on 3/6/14 for the post-upgrade data validation and Acceptance Testing. Campuses are expected to complete the data validation by Friday 3/7/14. b. The scheduled jobs will be activated on Monday 3/10/14. The Process Schedulers will be shut down temporarily. c. The Acceptance Testing is scheduled to be completed by Wednesday 3/26/14 and signed off by Wednesday 4/2/14. d. The Move to Production schedule has been posted and the cutoff date is 4/15/14. Campuses will perform the pre-upgrade tasks on Wednesday 4/16/14 and the final post-upgrade data validation on Monday 4/21/14. The scheduled go-live date is Tuesday 4/22/14.

6. Other CO Updates a. Procurement – Tom Roberts

Tom Roberts was attending other meetings during the conference and was unavailable.

b. Budget – Rodney Rideau

The Budget Allocation memos have been sent to campuses. There will be an additional allocation to include the 1.34% increase for salaries.

The CO is preparing for the legislative pre-hearings for the budget. The team is also preparing for the March BOT meeting which will include an update on the 14-15 budget. It was noted that there are big issues to be discussed in the pre-hearing talks, i.e., enrollment funding and the debt service transfer. LAO is using marginal costs for enrollment funding.

The Budget Office is focusing on the huge emphasis on state reporting, i.e. cost of reporting, fees, and fee revenues. The CO is working on an annual fee reporting process and responding to the audit for Continuing Education. The State is requiring that all fees be reported. The CO will request information from campuses in an effort to satisfy the audit finding. There is still discussion on how the system will report fees. As a clarification, current EO 1054 states that we should report on each fee that the campuses charge. The revised policy will state each fee within a category.

There was lengthy discussion on the topic. It was suggested that the current EO be revised to accommodate the business of the campuses.

There was a discussion on mandatory costs, enrollment and compensation. It was noted that there is not a direction from the BOT on new funds.

c. US Bank Payment Plus – Mike Redmond

of 8 It was noted that the new program will have a much better process for reconciliation, quicker payment terms and additional rebates.

There was a brief discussion on how much of a rebate can be expected for the campuses. Campuses should discount about 50% as estimated by US Bank.

d. Audit – Michelle Schlack

The audit team has completed half of the Conflict of Interest audits on the campuses. There are four Lottery Fund audits underway. It was confirmed that an audit will be done on Executive Travel. This audit will include the Auxiliaries if executive travel is funded and processed by these entities.

7. CSU 101 October 2014 Update – Lorlie Leetham

It was noted that there was a teleconference to discuss the Spring 2014 101. Feedback was positive. For the October 2014 101, there is a contract signed with Pismo Beach and a deposit has been made. The faculty from the Spring 2014 101 are being invited since there was good feedback from participants. There are still plans to invite 4 participants per campus.

Approval from the CO has been given through 2015 for the CSU 101 and the Business Conference.

8. CSU Business Conference 2014 update – Sharon Taylor

The chair thanked the group for their efforts in planning the conference.

9. CSU Business Conference 2015 update – Josee Larochelle

Debbie Brothwell will be assisting with the conference planning. It was noted that the planning will leverage this year’s conference. The group is looking for conference locations for the next 3 years even though the CO approval is only for 2015, maybe a termination cause can be included in the hotel contract. Volunteers are needed for the planning committee. CSUN and East Bay volunteered.

Action: A note will be sent to the delegates asking for volunteers. Volunteers can also be staff. Brian Cotham will lead the sponsorships and vendors effort. It was noted that the planning model include FOA as chair and PSSOA members continue to be a part of the committee.

There was a brief discussion on the topic for organizing the next meeting and inclusion of the affinity groups. It was noted that the affinity groups probably do not want to help in the planning. PSSOA is very engaged with the planning.

10. Spending “Academic and Student Success Dollars” in 485 – Stacie Corona

The group discussed the funding received this year from the Academic & Student Success new 485 funding that is in conflict with financial policy, i.e. the travel policy and hospitality policy. There was a brief discussion on how Finance can be involved in the process of being notified. It was noted that the student success fee reporting will go through Academic Affairs. It was suggested that a class code could be added to track. It was noted that the FNAT route is not beneficial.

Action: Rodney will review.

11. Proposed $2 CSAA “Student Involvement and Representation Fee” (attachment) – Justine Heartt

The proposed $2 voluntary fee will be discussed as an information item at the BOT in March and action will be taken in May. The Delegates noted that to administer waivers would be an administrative burden. The proposal would be effective 2015. It was noted that it would be costly to modify the student system Page 5 of 8 and campuses would be expected to charge back for their services. The Delegates discussed whether or not the fee can be covered with financial aid and the potential political ramifications with increasing fees.

It was noted that CSSA was established as a student representation group. The group receives an augmentation from the CO. CSSA wants to collect the $2 voluntary fee to support additional funds for advocacy purposes.

There was a brief discussion on whether this voluntary fee would replace the ASI fee.

12. Carry-Forward Expenditure Plan calculation (two attachments) – Justine Heartt a. Compares Projected Budget and GAAP Amounts – should it be Final Budget vs. Actuals in Legal?

There was discussion about the need for the carry-forward expenditure plan. It was noted that the carry-forward policy was reactivated due to the CERF audit by the Bureau of State Auditors. The carry-forward expenditure plan worksheet memo was discussed. There should be a consideration on how the amounts are being asked to be reported. It was suggested that student health services be left out of the 485 since it is a self-support entity. Health is a mandatory fee. It was noted that the original reason it was moved is that health employees are state funded. At RMP, all health was moved.

There was a brief discussion on Health services fee balances. When responding to the threshold, the Health services fee will be minimal in the overall number of the balance.

It was noted that the CO is having additional discussion on the 3% in excess of the general fund as an acceptable percentage for campuses.

The group discussed the supplemental health fee in 485.

There was discussion on the Legal versus GAAP in the carry-forward formula.

Action: Interest earnings are not calculated in the excess balance. Rodney will follow-up.

There was lengthy discussion on how to answer the “expenditure plan”. An encumbrance does not count. POs that roll over into the next year are also not included.

b. Should the Student Health Center be in 485 and in these numbers; or in own CSU Fund with a specific reserve policy?

See above.

13. Liaison Reports a. Accounts Payable (AP) – Justine Heartt

The group is meeting today. It was noted that the IRS is waiving fees for 2012 for the 1098- T penalties.

b. Student Accounts Receivable (SAR) including CashNet – Lorlie Leetham

The group has discussed the proposed $2 CSSA fee and is meeting during the conference.

c. Purchasing (PSSOA) – Clint Moffitt

The group is meeting during the conference. PSSOA chair will change to Missy Jarnagin.

of 8 d. Budget – Missy Jarnagin

The group is meeting during the conference.

e. Sponsored Programs – Sharon Taylor

The group met to discuss revising CFS, the grants module and the process. The group decided that it would be prudent to bring up the grants module and look at efficiencies, i.e. billing and building a template. This will probably be a two-year process. The group is meeting today and the discussion will include this process and improvements.

f. CFS Advisory Committee – Josee Larochelle

No report.

14. Introducing Your New Officers for 2014/2015 – Justine Heartt Vice Chair, Secretary and 2-Year Member-At-Large

The following are the new officers for 2014/15:

1. Vice Chair – Deborah Wallace 2. Secretary – Mae Santos 3. 2-Year Member-At-Large – Darrell Haydon 4. Lorlie Leetham becomes the new one-year member-at-large.

15. Future FOA Delegate Meetings April 16, 2014 Wed 9:00 am – 11:30 am Teleconference May 15, 2014 Thurs 9:00 am – 11:30 am Teleconference June 18, 2014 Wed 9:00 am – 2:00 pm LAX Crowne Plaza Proposed Dates and Locations: July 16, 2014 Wed 9:00 am – 11:30 am Teleconference August 20, 2014 Wed 9:00 am – 11:30 am Teleconference September 10, 2014 Wed 9:00 am – 2:30 pm LAX Crowne Plaza October 15, 2014 Wed 9:00 am – 11:30 am Teleconference November 12, 2014 Wed 9:00 am – 2:30 pm LAX Crowne Plaza December 10, 2014 Wed 9:00 am – 11:30 am Teleconference

It was noted that dates are tentative and have not been confirmed with Crowne Plaza.

There was additional discussion on volunteers for the travel committee. The group needs to review the $175 maximum reimbursement limit policy. In addition, there should be a consideration for meals per diem using IRS location and rates and come up with options that will work best for the system as a whole.

There was a brief discussion on the 5 areas of strategic sourcing workgroup. The group should be a blended PSSOA, FOA effort. Volunteers: From FOA: Darwin Labordo, Pomona and Clinton Moffitt, Fresno; From PSSOA: Kathleen Prunty, Pomona, Dru Zachmeyer, SLO and Cathy Garcia, San Diego.

The group should also consider current catalogs already available that would integrate well with our campuses.

The group discussed whether or not there should there be an affinity payroll group. It was noted that payroll is more of a process and an HR function.

of 8 There was a brief discussion on athletic scholarships being allowed in lottery funds. It was confirmed that this is allowed in the CA Govt. Code and expenses are allowable.

The meeeting adjourned at 2:41 p.m.