Delegate Meeting

Wednesday, August 21, 2013, 9:00 a.m. – 2:00 p.m. at LAX Crowne Plaza https://join.loopup.com/2sV3zdw (CO and Guest Speaker Access Code 0210048#)

Members X Doug Wade (Bakersfield) Call-in X Josee Larochelle (San Jose) 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) X Rodney Rideau (Chancellor’s Office) X Carol Lorentzen (Humboldt) X 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 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 Jessie Lum (Chancellor’s Office) X Ming-Tung “Mike” Lee (Sacramento) X Michelle Norton for Mick McBride CABO Liaison (Chancellor’s Office) X Deletta Anderson (San Bernardino) Chris Canfield (Chancellor’s Office) X Lorretta Leavitt (San Diego) X Gloria Tseng for Agnes Wong Nickerson (San Francisco)

Welcome 1. Agenda Approval

Meeting commenced at 9:00 a.m. No additional items to be added to the agenda.

Chair Justine Heartt reminded the group to send a representative if they are unable to attend the in- person meetings.

2. Treasurer’s Report – Lorretta Leavitt

Lorretta Leavitt reported that the FOA fund balance was approximately $100,000. As the new FOA treasurer, she noted that the funds were just transferred as of Monday.

3. CABO Update – Ming-Tung “Mike” Lee

of 9 Ming-Tung “Mike” Lee reported that CABO met May 18, 2013 for in-person meeting. The next meeting will be held at the CO on 9/18/13. Mike thanked the Delegates for their continued support and noted that he is looking forward to working with the group.

4. Budget Update – Robert Turnage (Time certain at 9:30 a.m.)

Mr. Turnage reported that the CSU is in the early stages of putting together a budget for 2014-15. He noted there will be two steps along the way with the BOT. First, an information item will be presented in September that will give the Board a general sense of the environment and revenue outlook. In November, the CO will put together the support budget book that will go to the BOT as an action item in November. Once the Board approves, the information goes to the DOF and the Governor’s office with an official CSU request, with the hope of a positive influence on the Governor’s January budget. This month the CO is in the first stages of gathering input for the BOT. Last week the System wide Budget Advisory Committee met and the CO met with the 23 Presidents on the potential priorities and available revenues.

Turnage noted that this coming cycle will be in the context of the Governor’s multi-year plan for the UC and CSU. The Governor’s 14-15 plan calls for an increment in the base funding of $142m for both the UC and CSU. As a reminder, in 13-14 both the UC and CSU received $125m for a programmatic increase, again, consistent with the Governor’s plan. From the $125m to $142m it gives the system a little extra, but there are still challenges with meeting priorities. In 13-14 mandatory cost increases chewed up the $48.2m of the $125.1m increase. There is not a precise estimate of the 14-15 mandatory cost increases; however, there is a ballpark of about $20m, which would free up about $28m for real improvements, such as a potentially larger compensation pool, or more enrollments.

Mr. Turnage opened the discussion for questions.

1. Compensation for the current year? Mr. Turnage noted that compensation for the current year is budgeted at a cost of $38m. If spread evenly across all employees this would be a 1.34% increase. The CO won’t know the final numbers until the collective bargaining is completed. Turnage noted that the process is going smoothly and an announcement is forthcoming.

2. Clarification of the $142m? Mr. Turnage noted that the Governor’s plan is 5% in 14-15 and another 5% the following year. The $142 million is a result of calculating 5% of the UC base. The CSU will get an identical amount versus an identical percentage, which works in favor of the CSU. The Governor’s plan also puts forward an expectation that there be no tuition increase. The Governor’s plan has not been agreed to by the UC or CSU. Both systems have been careful not to agree with a multi-year freeze; but instead to approach fees on a year-to-year basis. The CSU does not have a plan to put forth a fee increase in 14-15 and any such action would be dead on arrival in the current climate.

3. Fee structure changes? Mr. Turnage noted that the Governor’s position is not to have any changes in the structure. On the longer term, the CSU has not forgotten that improvements to the fee structure are worthy of review as ways to benefit the university and its students. However, any discussion about a fee structure change in 14-15 would be premature.

4. Cost of % increases on CSU employer contributions to PERS retirement benefits? Mr. Turnage noted that the first impact will be realized in the 15-16 budget year and may be marginal/gradual with the potential of an increase of a few million dollars system wide. This won’t be easy to calculate and additional information will come from the PERS actuaries. These costs will have to be treated as mandatory costs.

Justine congratulated Mr. Turnage on his retirement. Robert noted that the Chancellor is posting the position next month in hopes of some time for overlap for sharing information. Mr. Turnage noted that he still has 4 months to help set the budget in motion.

of 9 5. CSU 101 Update – Justine Heartt

Justine Heartt reported that a CSU 101 flyer was sent and posted to the CSYou website. Registration will commence in September 2013 and the current price to attend is $1,100, which includes lodging and meals. Participants are encouraged not to park in downtown San Francisco due to the expense. As a reminder, the host hotel is the Wyndham Parc 55 in San Francisco and the conference is slated for January 26-29. Faculty members are set to participate and include Debbie Brothwell, formerly of the Eastbay campus, as a visiting instructor. Other new faculty include key staff from the Chancellor’s Office. Presentations by faculty are due to the committee by October 18, 2013.

6. CSU Business Conference Update – Sharon Taylor

Sharon Taylor reported that the conference is slated for March 10-12, 2014. A draft of the agenda has been submitted to the Delegates for review. The registration will be handled through the CO program. She also noted that there will be time to change sessions since there is quite a bit of lead time. Several interesting workshops are planned, including Sponsored Programs and the Huron Company will be speaking to the group. The price will be determined once all sponsors are reserved. Currently, $300 to $350 seems to be in the ballpark for the price. There was discussion by the conference committee and there is hesitation on charging a daily rate. The room max for participants cannot exceed 400.

Sharon noted that CABO will be meeting that morning from 10:00 a.m. to 2:00 p.m. There has not been a firm commitment on the Chancellor’s availability to speak. Action: It was agreed that CABO members could attend if space is available. This allowance may have to be on a first come, first serve basis due to the room maximum of 400. CABO representatives would need to register in an effort to get a good count. The members would also have to indicate if they are attending the sessions, or just dinner.

Sharon commented that the Affinity groups were asked if they wanted sessions. To date, there were no special sessions agreed upon.

Action: Delegates were encouraged to send comments/suggestions on the conference to Sharon Taylor by September 6, 2013.

7. IRS Penalties for 1098-T – Letitia Coate

Letitia Coate reported that Sonoma has been assessed a fee for not having completed TIN’s on the 1098’s. Several campuses also received notice of penalty. Letitia noted that IRS reg’s suggest that campuses are not/should not be responsible for verifying the accuracy of the TINs. This interpretation should be confirmed with the CO’s Tax Office. NACUBO has also published something in this regard. Justine noted that several issues/mismatches arose at her campus, specifically, DBA, and typos. The CO tax department has been contacted.

A lengthy discussion continued on the issue. Highlights of the discussion included: Is it advantageous for the system to respond as a whole to the letters? As far as the process, are there some technical things that could be implemented to avoid penalties? Action: George Ashkar will take the matter into consideration as to whether the CO should take the lead on the issue.

It was noted that there are over 400 universities contacted about the issue. Only 4 in the CSU have received letters. It appears that there are gray areas on the issues. George noted that the CO will have to formulate a plan. In the past, the tax departments were contacted at the campuses and it seemed to have worked in our favor. There may be some benefit as suggested to a more coordinated effort. George asked that the Delegates please keep the CO informed. There may be no formal response to the IRS until the CO has had a chance to review.

of 9 Stanislaus, Eastbay, Sonoma, Sacramento have received letters. There is a 45-day limit to respond to the IRS notice. Justine noted that her AP person attended a conference and campuses should defend their positions first, prior to paying any penalties.

Campuses need to attempt “annually” to show good faith in getting valid TIN’s? Justine suggested that the 4 campuses and their tax departments meet with the CO, work up drafts, and have a coordinated phone conference. Action: George will make sure a meeting is held.

On a related note, Letitia added that Sonoma received a letter from the State Board of Equalization, stating “we would like to stop by for an informational visit”. The letter noted that they could drop by any day. Letitia suggested that sales permits be posted in a visible place if the SBE is coming to your campus for a visit.

Sharon Taylor noted that LB is in the midst of a CE/EE state audit and inquired about the limits of the carry forwards for budgets. Rodney Rideau noted that the CO policy on carryforward balance is still valid. “The EVC will continue to review excess balances and the system should not anticipate ‘suspending’ the carryforward balance”.

On another note, Lily stated that the RMP implementation documents have been migrated into the Legal manual.

8. CashNet Update – Josee Larochelle

Josee reported that CashNet has a single relationship manager. This individual is responsible for garnering input from the campuses. There hasn’t been additional work done since the last FOA report. The dissemination of information has moved forward. It was suggested that a separate sub-committee not continue.

George Ashkar noted that in the past there were real communication problems, but all of these problems have been resolved with the data centers. There is a ticket process with Mick McBride and there is good communication. Back in Dec. 2011 the committee was looking at the fees and the Master Pricing Agreement (MPA) 30937 and the MPA did not provide for sufficient payment of the turnover of the cash. The MPA was modified and CashNet revised all systems to make payments after the next day of receipt. There is still an issue with the transactions fees being excessive (2.95%). The legislature is in tune as well. The next step is to modify the agreement to develop a reasonable fee as well as provide CashNet a reasonable profit. The CO wants to incorporate into the MPA, a fee of 2.75%. There should be a phrase that says “the fee should be reasonable.”

Josee clarified that the group is not looking at consolidating contracts. The group was looking at getting better communication, and has not engaged in discussions regarding fees. Note: the CashNet/Higher One contract can be found by searching on the CSU Contract Store: https://csyou.calstate.edu/groups/csp/contractstore/Lists/contracts/currentcontracts.aspx

Action: George will go back to CABO and request that FOA be assigned to review the fee issue in the various contracts. George would like to see the issue resolved on the MPA side.

Carol (Humboldt) noted that the fee is a zero sum game for the vendor. The more we reduce the percentage for the students, the more we may be charged. This is the same premise with the credit card rebates.

Action: It was suggested that the SAR group report on this agenda item in the future. Josee will let the group know to report any issues or concerns to Karen Wall and she will bring to FOA in her SAR report.

9. CFS Data Warehouse Phase II Update - Discussion of Report (attached) – Josee Larochelle

of 9 Josee reported that the CFS Data Warehouse priority list was presented to FOA in April (recommendation of priorities). The committee (very large group of about 20 people) met via phone, and a few versions of the report were discussed and a survey was done. The outcome was a recommendation of the priorities. At this point, the recommendations/priorities were sent to FOA.

If FOA concurs, the list will move to CABO for further discussion, then to the Steering Committee, then to the workgroup. A part of the recommendation is that FOA participate in the design.

Consensus: The group agreed that the report is ready to go to CABO.

10. PeopleSoft 9.2 new functionality selections – Clinton Moffitt

Clint Moffitt asked for clarification on new functionality (ex. Supplier onboarding) and what has been evaluated.

Michelle Norton noted that that new functionality will not be added at this time during the retrofit. During the training in November and December campuses can review the functionality. Campuses can also evaluate some baseline modifications that they have not been using.

The question was raised about the proposed timeline. Michelle noted that currently direction is taken from the management. George Ashkar noted that in the past, CMS executive committee would weigh in. This issue about the new functionality may be discussed at CMS Exec and go up to the EVC.

There was lengthy discussion on the process and how the functionality is chosen.

Action: George Ashkar will present the information to Dr. Quillian on Friday (8-23-13) and suggest a direction. The end result should prioritize a methodology for quantifying benefits and allowing campuses an opportunity to review.

11. Chancellor’s Office Update a. CFS & CHRS Update – Michele Norton/Karen Wall

Michelle Norton reported that the 2nd Thursday of each month from 11-12 p.m. will be the monthly status meetings. Meeting minutes will be posted on the CFS update page. A special call will be held on 8/29/13 with discussions on campus Project Plan Template and development work, which will include security, migration, and interfaces such as CashNet.

Next monthly call will be on Thursday, September 12, 2013 from 11 a.m.-12 p.m.

Karen Wall reported that the CHRS group had an open forum call on 8-14-13. The team reported the changes to group. The implementation will be modeled around Finance.

The first wave campuses have been selected, SAC, Sonoma and Fresno. In early spring there will be training for the campuses and will be limited to key users. The design team will be sending a template to identify changes and what each campus differences are. The date for the submission will be determined. All campuses should participate in the open forums. A video will be provided to share with staff that are unable to attend the trainings.

There was a lengthy discussion on how new functionality will be incorporated into the project. The 2nd and 3rd waves have not been determined at this point.

Justine reported on a lessons learned being a Wave 1 campus. She noted that communication within their campus had been difficult due to employee turnover. SAC is getting a project lead to move things forward. Karen Wall suggested that campus academic affairs staff be heavily involved with the implementation.

of 9 b. Financial Services Update – George Ashkar –

George Ashkar continued the discussion on the IRS penalty letters (#7 on the agenda) and asked that if campuses receive tax letters to please contact Roberta McNeil.

George also noted that Grant Thornton (CO) is conducting a sales tax, NRA and UBIT workshop in November. The workshop will be 2 days to handle the various topics. Roberta McNeil will be sending a notice to the campuses. Due to the budget crunch, the CO has not done a workshop on tax in a while. The workshop will be done at the CO. Since the IRS is taking a look at UBIT, George suggested the system be ahead of the game.

Karen Wall suggested that training also be done on the Glacier system. Action: George will make a note on the request for additional training.

In addition, George noted that the year-end close went very well. Everything Legal was closed on time. The CO got the pass down entries a little earlier to the campuses. The first version of the reporting package (GAAP) is due August 26.

c. Employee AR SW Guideline (Draft) - Kristina Randig/Lily Wang a.i. Summarize feedback and possibly finalize the guideline

Kristina thanked the FOA for their updates and noted that the AR SW is a guideline and not a policy. The intent is that the guideline will reside in the ICSUAM 3131.01.-AR Collections

Kristina reviewed the other comments from the campuses and noted that the CO didn’t make a decision to create a threshold on the recovery amount in an effort to give the campuses some flexibility. There are several options and one recommended option in the guideline since each campus is doing their AR’s differently.

Darrell (Eastbay) noted that they treat employee AR as regular AR for consistently across campus. Justine noted that there is sometimes an employee AR created when individuals serve jury duty…federal and state. Action: Lorretta recommended that we speak to HR on the process. Is there a cost benefit to trying to collect for federal jury duty ($40 per day)?

Action: Kristina will review the comments (from Chico) to see if these should be incorporated in the guideline.

Action: Absent any further comments (2 week timeline) the guideline will be incorporated in the ICSUAM.

d. ICSUAM 3250.02 Disposition of Unclaimed Negotiable Instruments - Kristina Randig/Lily Wang d.i. Update on whether unclaimed property needs to be returned or reported to the State d.ii. Unclaimed Property Holder Handbook (attached) Refer to page 12 Who and What Must be Reported, and page 49 Compliance-

Kristina Randig reported that she has researched the unclaimed negotiable instruments policies and various websites and could not find anything regarding the CSU need to report to the State. Sharon (LB) noted that there is a requirement to report to the SCO. Action: Sharon will send Kristina the reference that supports the requirement.

Darrell (East Bay) noted that the CSU can claim unclaimed property for student scholarships as stated in ICSUAM policy 3250.01 - Disposition of Lost, Unclaimed or Abandoned Property.

There was lengthy discussion on the topic that warrants additional review.

of 9 Action: Mike Redmond suggested that questions be articulated and reviewed due to the potential legal issues. Lily Wang said the suggestion from the OGC is to not report. Reference (ICSUAM 3520.02). Action: Lily will have a progress report at the next meeting and get answers to the following as suggested by Mike. a.i.1. Decision on whether to submit to SCO? a.i.2. If not, how long to retain the outstanding list? a.i.3. Make list internal or publish to web?

e. Budget – Rodney Rideau

No additional information on budget.

Rodney reported that allocations for ‘bottleneck’ courses will be coming out soon. Compensation allocations will be sent after the bargaining units discuss the package. Academic Affairs will send accountability reports to campuses within the coming weeks.

f. Procurement – Tom Roberts

No report.

g. Procure to Pay Initiative and UC/CSU Shared Services Conference Update – Mike Redmond

Mike Redmond reported on the success of the UC/CSU Shared Services Conference and noted that it was a collaborative effort. The next steps include putting together a collaborative site to share information. The presentations from the conference will go on the site.

P2P update – Mike noted that the initiative is in a “holding pattern”. The Executive Steering Committee was put together by Dr. Ben Quillian. A project team has also been selected. Some to the group consists of Mary Stephens (LB), Brad Wells (East Bay), Co-Chairs, Cindy Matson (Fresno) and Harry Hellenbrand, provost at CSUN, Lisa Chavez, Mike Berman (CSUCI IT) Glen Brodowsky (faculty at CSUSM), Dr. Ashish Vaidya (CSULA, Provost). The co-chairs are meeting on October. 17. The next steps include, selecting a vendor to do the detailed implementation. The Executive Director position will not be filled until the Executive group meets with the consultant. Mike also reiterated that shared services are not necessarily “synchronization”. The goal is to create a useful model of shared services. There also has to be an ROI investigation.

Justine noted that AP should still be incorporated in the discussion on the P2P.

Mike Lee (who is also a part of the committee) reported that all constituencies need to be involved.

Action: Mike Redmond will get the list of committee names to Deborah Wallace to be incorporated in the notes.

h. ICSUAM – Mike Redmond

In response to a number of questions he had received recently, Mike clarified that ICSUAM policies only apply to auxiliary organizations when the policy specifically says it applies to auxiliary organizations. If it doesn’t say it, it doesn’t apply. The CO is trying to develop a system wide auxiliary organization compliance manual. Mike would like a small group of FOA volunteers for the next step of the rollout. The FOA Delegates that volunteered include: Darrell (East Bay), Lorlie (SLO), Stacie (Chico), Lorretta (San Diego). If others are interested, please send Mike an email.

of 9 The new ICSUAM is based in SharePoint and currently in the migration stage. Again, Mike would like an FOA focus group to discuss. Several issues need to be addressed, including: When is an ICSUAM applicable to the Auxiliaries? Where does SAM fit in? Next steps: 1) Take a look at the site and fine tune comments, 2) Develop and FAQ for the site. Mike will get information from the group for the FAQ using the SNAP survey tool. The auxiliaries may also participate in the survey.

Mike thanked Justine for her work with the draft development of the student clubs ICSUAM.

George Ashkar reported that the trust policy is being reviewed by the Presidents.

i. Audit – Michelle Schlack

Michelle Schlack reported on the status of the 2013 audits. Those that have been completed include the International Programs, Credit Cards, Centers and Institutes and Data Center Operations audits. In progress right now is the Hazardous Materials Management (pilot has been completed) audit. The audit team is looking at the Sponsored Programs post award function of that area (pilot completed). Also, the pilot of the Student Health Centers audit is in progress. The last audit currently in process and nearing completion is the Sensitive Data Security and Protection.

In the next 4-6 weeks the risk assessment survey will be sent to the campuses. The survey should be shared and vetted among campus cabinet members, including student affairs, in an effort to establish a more comprehensive risk assessment. After the completion of the surveys, the overall audit plan will be announced at the BOT in January 2014.

Michelle reminded the Delegates about the Audit Advisory Services as offered by the Audit Department. The service is free and at the President’s request. The audit team has completed two projects for two campuses with great success. There is no audit report generated, but a memo to the department and the campus President. In order to take advantage of this service; please have your campus President contact Larry Mandel.

12. Liaison Reports a. Accounts Payable (AP) – Brian Jenkins

Brian Jenkins noted that there was not a lot to report. A couple of items were noted on the list serve, including a survey regarding a check sealer and travel authorizations. There is no P2P follow-up, but Brian noted that it is still good to hear that Accounts Payable will have some input in the discussion.

b. Student Accounts Receivable (SAR) – Karen Wall

Karen Wall noted that she will share the information with the group regarding the CashNet discussion today.

c. Purchasing (PSSOA) – Clint Moffitt

Clint Moffitt reported that there is no new information. A meeting of the group is scheduled tomorrow at Maritime.

d. Budget – Missy Jarnagin

Missy Jarnagin was unable to attend the meeting. No report.

e. Sponsored Programs – Letitia Coate

of 9 Letitia Coate reported that during the last meeting the group talked about using the Oracle/PeopleSoft product for Sponsored Programs and identified deficiencies with AR/billing and hoping to get improvements. In addition, there was discussion of the integration of auxiliaries and those on the Oracle/PeopleSoft system and maybe some enhancements that could be made. Effort reporting is/was a big issue with the group. Additional information will be forthcoming.

Letitia announced that she will be retiring in January 2014. George Ashkar thanked Letitia for her efforts on this committee.

Action: Sharon Taylor volunteered to serve on the committee and noted that the demonstration of the grants module took place in July 2013.

Sharon noted that a survey is forthcoming on the sponsored programs and the grants functionality.

f. CFS Advisory Committee – Josee Larochelle

No report.

13. Future FOA Delegate Meetings October 2, 2013 9:00 am – 11:30 am Teleconference November 13, 2013* 9:00 am – 2:00 pm LAX Crowne Plaza December 11, 2013* 9:00 am – 11:30 am Teleconference January 12, 2014 12:00 noon – 5:00 pm AOA Conference, Sheraton Sacramento February 19, 2014 9:00 am – 11:30 am Teleconference March 10, 2014 10:00 am – 2:30 pm CSU Business Conference, Hilton Orange County April 9, 2014** 9:00 am – 11:30 am Teleconference May 14, 2014** 9:00 am – 11:30 am Teleconference June 18, 2014 9:00 am – 2:00 pm LAX Crowne Plaza

* Overlaps with CHRS Teleconference 9-10 a.m. ** Dates may need to be changed when CABO schedule is finalized

Action: It was agreed to cancel the September 11th meeting. For the remaing meetings, there are a couple of conflicts with CABO. The group will revisit those dates after the CABO finalizes their meeting schedule.

Next meeting: Oct. 2, 2013. Teleconference

Meeting adjourned at 1:38 p.m.