Wednesday June 19, 2013, Conference Call

Delegate Meeting

Wednesday June 19, 2013, Conference Call 9:00 a.m. – 11:30 a.m. https://my.loopup.com/Conferences/join.aspx?ACCESSCODE=0210048

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) X Karen Wall (Dominguez Hills) X Letitia Coate (Sonoma) X Darrell Haydon (East Bay) X Julie Benevedes (Stanislaus) X Clinton Moffitt (Fresno) X George Ashkar (Chancellor’s Office) X Brian Jenkins (Fullerton) Rodney Rideau (Chancellor’s Office) X Carol Lorentzen (Humboldt) Jean Gill (Chancellor’s Office) X Sharon Taylor (Long Beach) X Mike Redmond (Chancellor’s Office) X Jose Gomez (Los Angeles) Tom Roberts (Chancellor’s Office) X Steve Mastro (California Maritime X Michelle Schlack (Chancellor’s Office) 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) Jessie Lum (Chancellor’s Office) X Matias Farre for Deletta Anderson (San X Michelle Norton for Mick McBride Bernardino) (Chancellor’s Office) X Lorretta Leavitt (San Diego) Chris Canfield (Chancellor’s Office) X Nancy Hayes (San Francisco) CABO Liaison X Agnes Wong Nickerson (San Francisco) Chair

1) Welcome

2) Agenda Approval

3) Treasurer’s Report – Mary Hinchman

Mary Hinchman reported a fund balance of $101,183.15. Mary noted that for the past two years the fund balance has allowed us to waive Delegate fees/dues. She recommended that we waive the fees for the 13-14 fiscal year. Darrell Haydon (East Bay) seconded. Motion passed unanimously.

4) CABO Update – Nancy Hayes

of 6 Nancy Hayes reported that the recent CABO conference call focused on the state wide budget. In addition, Bruce Briggs and Dr. Quillian reviewed a potential decision on OBIEE. There is conversation for a $2m+ commitment of software for students. This discussion will go back to the President’s Council and will be discussed in detail at the ITAC meeting slated for tomorrow. Agnes announced that Nancy is retiring the end of June. Nancy thanked FOA for their commitment.

5) Budget Update – Robert Turnage (Time certain at 9:30 am)

Robert Turnage reported that there is good budget news for the first time in years. The budget bill passed last Friday and a bunch of trailer bills passed Saturday, including a higher education trailer bill. The Legislature approved all of the elements and dollar amounts as proposed by the Governor in the January budget, specifically, the $125m backfill of fee revenue loss and the $125.1m for the programmatic increase. The CSU plan for spending remains as discussed at the March BOT meeting and as described in the budget allocation memo. In addition, there is policy proposal embedded in the January proposal that were put aside, turned down or modified in ways that were favorable to the CSU. Most importantly, the proposal to merge the capital outlay and support budgets and force the CSU to absorb debt service costs on future state bonds was turned down by the Legislature. The UC was pushing this scheme very aggressively and stood to benefit from the creative refinancing. In the end, the Governor and the Legislature voted to allow the UC to restructure their state debt service and the CSU was left out of the proposal. This was a very favorable outcome, with the CSU dodging a bullet. As a long term issue, how does the CSU handle the lingering problems with funding the capital outlay projects if the state has to pay the debt service on bonds? This is a long term issue that needs to be sorted out.

The administration is supporting the addition of $76.5m of lease revenue bonds from the state for a seismic safety project at Cal Poly Pomona. This was a welcomed outcome of the Budget Conference Committee since this project has been delayed for quite some time.

With respect to PERS, the administration had proposed a change in the way the calculation was made for the annual adjustment and the employer contributions. The way it has been calculated in the past, if PERS raises its employer contribution rate, then a calculation is made to make a positive adjustment to the CSU budget to hold us harmless. Similarly, if the rates go down in any given year, then our appropriation is reduced by the DOF through an Executive Order. The adjustment as proposed in January by the administration was to change how the future calculation is done by locking into place the 12-13 aggregate payroll of the system. As adjustments are made in future years the 12-13 would be the base. The effect is that very gradually, over time; begin to shift the impact of the rate changes on the CSU budget. At the request of the CSU, the Legislature ended up voting to use the 13-14 year as the locking point.

There was a big push for an augmentation above and beyond the Governor’s proposed amount for additional enrollment growth. The demand is there and the issue made it to the Budget Conference Committee, but did not survive against all the other competing budget augmentations. Part of the final budget deal between the Governor and the Legislative leadership was for the Legislature to accept the Governor’s more pessimistic revenues estimates for the state instead of the LAO revenue budget estimate, which was about a $4b difference. After much insistence by the Governor and after the acceptance of the Legislature of the lower revenue rates, additional enrollment growth fell off of the table. However, a few items of particular personal interest to the Speaker and Senate President pro tem made it through, specifically, the Middle Class Scholarship proposal. The Speaker had been campaigning for this idea for the last couple of years, falling short a couple of votes last year. The proposal ended up in the higher education trailer bill passed by the Legislature on Saturday. There is no impact to 13-14 for the Middle Class Scholarship but in 14-15 it will start to be implemented. In 14-15 there will be a capped appropriation of $107m and over the next four years that capped appropriation will gradually rise to an ultimate amount of $305m. The recipient of these grants will be UC and CSU students whose family incomes are less than $150K per year and don’t receive Cal grants or SUG. The Student Aid Commission will be administering the program and developing regulations during fy 13-14. The grants will probably be difficult for the CSU to administer, but at least we have a year to prepare.

of 6 In addition, the Governor has until 6-27-13 to sign the legislation and use his line item veto. Turnage suspects the Governor will sign in the next few days.

6) CSU101 Update – Justine Heartt

Justine Heartt reported that all faculty have been assigned for the CSU101 in 2014. There have been regular meetings to put the schedule together. The CSU101 is slated for January 26-29, 2014 at the San Francisco downtown campus. The Wyndham Parc 55 is the host hotel. There will be 3 slots available per campus and the committee will be sending out the request to attend.

7) FOA Conference Update – Sharon Taylor

Sharon Taylor reported that great progress has been made on the FOA Conference 2014. A core outline has been developed. The committee will be working with the affinity groups to define sessions. Registration online will begin in August. Brian Jenkins is in charge of working with the sponsors and booth rentals. A motivational speaker from the Disney Institute will be there to address attendees. All of the CO team will be available to join the discussions. FOA and CABO will be running concurrently on Monday. Vendor night is Monday evening, followed by dinner. A full day of activities and workshops are slated for Tuesday and half- day on Wednesday.

8) Procure to Pay Initiative Update/UC/CSU Shared Services Conference – Mike Redmond

Mike Redmond announced that the Procure-to-Pay (P2P) Initiative went through the CO executive leadership for discussion in developing clarity and vision. Certain Executive Steering Committee members will be contacted to serve on the review committee and Dr. Quillian has reached out to specific individuals at the campuses. The first order of business is selecting a consultant. The committee will look at aligning the workflow and imaging functionality with the initiative. Mike also noted that the open position (Shared Services Director) is in recruitment, but on hold until the campus perspective and representatives are consulted.

Mike briefly covered the vision for the upcoming Shared Services Conference in July. He noted that one of the goals is to discuss CFS with the UC. The conference is intended for individuals who are actually working on the shared services, but it may be a valuable experience for anyone in FOA. The expectation is that the CSU and UC will be more collaborative. One of the outcomes of the conference is to introduce a collaborative website as a place to share ideas and for building communication.

Mike announced that it is still important to have a future meeting with the AP group to discuss the P2P.

9) CashNet Update - Josee Larochelle

Josee reported that the Higher One Users Group (HUG) conference went well last month with a good response from participants. In addition, Josee announced that all campuses are set up and can accept VISA payments through CashNet. There was a lengthy discussion about fees being accepted at the cashier’s windows. It was noted that merchant fees should be a part of the merchant agreement. Action: Further research will be done on the subject for a review next meeting.

10) CFS Data Warehouse Phase II Update – Josee Larochelle

Josee reported that the committee had a few calls and conducted a survey of the participating campuses. The committee is in the process of formulating a recommendation to be submitted to the FOA.

11) Employee AR SW Guideline (Draft) - Lily Wang

This is an action item update where Lily reported that she was charged with drafting a system wide guideline for the Employee AR. A draft was presented today to the Delegates for review. To accommodate year end

of 6 close, comments may be sent to Kristina Randig at the CO until early August for discussion at the August meeting.

12) Use of Delegation of Authority Functionality in CFS (Pros and Cons?) – Deborah Wallace

The Delegates briefly discussed a few examples of how campuses have used the Delegation of Authority module in CFS. Humboldt began using some of the components of the module but did not find it very functional. Long Beach uses the feature. Action: Deborah Wallace will send the Delegates a white paper from CSUN which outlines a recommendation to make the module more functional. Sharon Taylor agreed to send the information from Long Beach that may be helpful to the Delegates if they are considering using the module at their campus.

13) ICSUAM – Disposition of Unclaimed Negotiable Instruments – Agnes Wong Nickerson

Agnes asked why there was a change in the ICSUAM 3250.02 and why it cannot be used for scholarships. Kristina Randig from the CO explained that the interpretation came from campus feedback and by Legal. There was a brief discussion on the matter. Action: Kristina Randig will look into whether all unclaimed properties need to be returned or reported to the State.

Mike Redmond suggested Delegates also go to the attorney general’s website for guidance. Delegates should send in remarks and comments on the draft ICSUAM to Kristina.

14) July FOA Call

Action: Due to the year-end close and the accelerated audit timeline, the group agreed to cancel the meeting in July and reconvene at the in-person meeting in August 2013.

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

Michelle Norton reported that the CFS 9.2 Upgrade timeline was communicated to campuses during the meetings in May for the FOA, TUG and CHRS Forum. The Upgrade Team is currently performing the Pass 1 upgrade, while the Application Team is working on retrofitting the development. The Training/Documentation Team is working on building the CFS 9.2 Upgrade site. CMS is planning on scheduling the monthly Upgrade calls and releasing the Demo and a couple of other databases to campuses after YE close, possibly late July or August timeframe.

Karen Wall reported that the CHRS prototypes for the mods are still with the consultants. The group is still participating in calls.

 Financial Services/CERF for Scholarships – George Ashkar

George Ashkar reported that the CO is preparing for an upcoming bond refunding sale in the amount of $700m and noted that market rates are up by approximately 56 basis points. There was a conference call yesterday to discuss the matter.

George announced that the RFP for the audit is still moving forward. His team is working with trustees to coordinate next steps.

There is an Auxiliary training webinar this Tuesday on year-end.

of 6 Mike and George attended a meeting at the UC to discuss an RFP for food services. The UC spend is much greater, but there is an opportunity for synergy with food services across the two systems. The structure of representation and voting on the project was discussed.

George announced that a draft policy that addresses the issue of using CERF for scholarships has been sent by Robyn Pennington and presented to CABO. The draft can be shared with FOA Delegates.

 Budget – Rodney Rideau

No report.

 Procurement – Tom Roberts

No report.

 ICSUAM – Mike Redmond

Mike announced that a draft of the ICSUAM for student club accounts will be made available this summer. He thanked Justine Heartt for all of her work on the project. Marlene Jones, OGC, is working on a compilation of Auxiliary policies and procedures and sound business practices. Mike’s team is continuing its work on a newer version of the ICSUAM for the CSYou. He announced that there may be webinar to launch the new version.

 Audit – Michelle Schlack

Michelle reported that they have completed the International Programs and Credit Cards audits and the team is drafting the system wide report. In the last few weeks, the team completed the Hazardous Materials Management and Centers and Institutes pilot audits. The Sensitive Data audits are almost complete and there are two more campus audits to complete this year, namely Sponsored Programs – Post Award and the Student Health Centers audits.

The Audit Advisory Services group recently completed two projects and other projects are in the pipeline. This is a new service offered based on Presidential request, where a consulting review is done and the campuses are provided recommendations in memo form as opposed to an audit report that is posted to the audit website. So far, the service has been received very well and the product is very high quality. If campuses are interested in the service, they can contact Mike Caldera, Senior Director at the CO.

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

Brian reported that there hasn’t been much activity on the list serve.

 Student Accounts Receivable (SAR) – Karen Wall

Karen reported that group members responded to a question on the list serve regarding a fee for lost and replacement student identifications.

 Purchasing (PSSOA) – Clint Moffitt

Clint reported that the PSSOA recently had a short meeting.

of 6  Budget – Missy Jarnagin

No report.

 Sponsored Programs – Letitia Coate

Letitia reported that there will be a meeting with several individuals who are working on the SF mod for faculty release time for the CHRS implementation. There were no details of the meeting date and time. Letitia will keep the group posted.

 CFS Advisory Committee – Josee Larochelle

No report.

No meeting in July. August will be an in-person meeting at Crowne Plaza LAX.

Meeting adjourned at 10:59 a.m.