President's Budget Advisory Committee

Minutes October 8, 1998

Approved by PBAC, November 5, 1998

Members Present:

Staff Present:

Members Absent:

Guests Present:

Meeting Agenda

INTRODUCTIONS

Bernie Goldstein brought the meeting to order at 8:10 AM and asked the Members to introduce themselves and the group they represented. Following introductions, Goldstein welcomed the Members to the PBAC and expressed his appreciation for the anticipated hard work of the Committee in the months ahead.

YEAR-END FINANCIAL REPORT

Larry Furukawa-Schlereth then presented the Year-End Financial Report for 1997-1998 referencing materials contained with the Agenda Packet (Packet) and reproduced below:

SONOMA STATE UNIVERSITY
YEAR-END FINANCIAL REPORT
JUNE 30, 1998
AREA ONE-TIME SURPLUS ONE-TIME DEFICIT
Executive Office $15,890  
Student Affairs $39,214  
Administration and Finance $119,629  
Academic Affairs    
Office of the Provost   $-158,492
Business and Economics $74,022  
Social Sciences $31,286  
Education   $-245,726
Natural Sciences $88,756  
Arts and Humanities $66,709  
Library $63,511  
Information Technology $53,240  
Admissions and Records   $-473,378
Student Academic Services   $-15,040
Don Farish Vacation Accrual   $-44,000
Additional Need - Osborne Preserve   $-50,000
TOTAL SURPLUS UNITS $552,257  
TOTAL DEFICIT UNITS   $-986,636
STRATEGIES ADOPTED TO ELIMINATE DEFICITS
Item Amount
Revenue Above the Base $395,000
CSU Reimbursements, IT, A&R $274,926
Loan from Library * $183,400
Loan from Equipment $0
Provost's State Indirect Cost Recovery $133,310
TOTAL $986,636

* Repaid in three equal annual installments of $61,134 from Academic Affairs.

Informational questions regarding the Year-End Report were answered by Goldstein and Schlereth.

PRESIDENT'S FINAL BUDGET: 1998-1999

Schlereth then outlined the President's Final Budget for fiscal 1998-1999 referencing materials contained in the Packet and reproduced below. He specifically commented on the differences between the budget projection developed in May, 1998 and the final budget approved in September, 1999.

SONOMA STATE UNIVERSITY
FINAL BASE GENERAL FUND BUDGET 1998-1999

NEW BASE REVENUE
  Source May, 1998 Final
NEW BASE REVENUE New Enrollment Money $1,073,000 $1,073,600
New Revenue, Deferred Maintenance $88,000 $88,000
New Reimbursed Revenue $308,000 $259,615
New Revenue Workers Compensation $120,000 $116,000
New Revenue, Space Management $200,000 $194,000
New Revenue, Base Technology $100,000 $111,920
TOTAL $1,889,000 $1,843,135
NEW EXPENSE Common Management Systems $236,000 $236,000
Land Acquisition $380,000 $485,000
Executive Compensation $20,000 $23,920
Off-The Top Maintenance $88,000 $88,000
Off-The-Top Technology $100,000 $76,920
Off-The Top Technology/DRC $0 $35,000
Risk Pool Premium Increase $0 $63,000
CSU Audit Assessment $0 $17,500
CSU Placement Assessment $0 $12,500
Scholarship Coordinator $0 $55,000
President's Operating Expense $0 $40,000
Athletics Deficit $0 $60,000
Off-The Top, Provost $0 $128,000
TOTAL $824,000 $1,320,840
ALLOCATIONS
Division Percentage $1,065,000 $522,295
Executive Office 2.18% 23,217 11,386
Academic Affairs 86.22% 918,243 450,323
Student Affairs 2.14% 22,791 11,177
Admin/Finance 9.46% 100,749 49,409
TOTAL   1,065,000 522,295

Notes

  1. Interfund Loan Payments to Parking will be made by Administration and Finance via the Bad Debt Collection Program.
  2. Reserve Items will be financed from savings in the University-Wide Budget Category, Revenue Above the Base, and as necessary, allocated to the Divisions based on the marginal cost formula.
  3. Risk Pool Deductible Charges and the costs of the Presidential Scholars Program will accrue in the Reserve.
  4. Surplus Revenue above the Base will be allocated to the Divisions based on the marginal cost formula once all deficits are financed in the University-Wide budget category.

Schlereth also outlined one-time money the campus had received for fiscal 1998-1999 and the President's allocations in this regard. These allocations were included in the Packet and are reproduced below:

One-Time Revenues and Allocations
  Item Amount
NEW ONE-TIME REVENUE:
1998-1999
Library $183,400
Technology Support $415,800
Deferred Maintenance $522,000
Teacher Preparation $206,300
Scholarly Activity $53,781
Instructional Equipment* $165,000
TOTAL $1,546,281
ALLOCATED FOR Library $183,400
Technology Support $415,800
Deferred Maintenance $522,000
Teacher Preparation $206,300
Scholarly Activity $53,781
Instructional Equipment* $165,000
TOTAL $1,546,281

*40,000 of this appropriation is being held for instructional equipment at the SSU Mendocino College site which will be available to each of the schools within Academic Affairs.

Informational questions regarding the Final Budget were answered by Goldstein and Schlereth. Schlereth then outlined a variety of accountability measures established by the President for the 1998-1999 budget (reproduced below) and responded to questions regarding the measures.

FINANCIAL ACCOUNTABILITY MEASURES, 1998-1999

DIRECT INSTRUCTION: The Provost shall allocate at least $450,000 of new resources provided to Academic Affairs for direct instruction above the current base budget provided for this purpose. The Provost shall prepare a report for the President by March 1, 1999 indicating how these funds were utilized in support of direct instructional efforts.

INSTRUCTIONAL EQUIPMENT: The Provost shall prepare a report for the President by March 1, 1999 reflecting the specific purchases made with $200,000 of base budget and $165,000 of one-time budget allocated for instructional equipment.

LIBRARY: The Provost shall prepare a report for the President by March 1, 1999 reflecting how one-time resources of $183,400 provided to the Library are being utilized.

TEACHER PREPARATION: The Provost shall prepare a report for the President by March 1, 1999 illustrating the specific nature of expenditures associated with teacher preparation.

BASELINE ASSURED TECHNOLOGY: The Provost and the Vice-President for Administration and Finance shall jointly prepare a comprehensive strategic and financial plan associated with campus technology incorporating compliance with BATS, the impact of CMS and the CSU Technology Infrastructure Project on Information Technology, and funding gaps associated with the Schulz Information Center. As part of the report, the Provost and Vice-President for Administration and Finance, in consultation with the campus Information Resource Manager and the Library and Information Technology Committee shall prepare budget allocation recommendations for the President associated with new base and one-time resources provided by the CSU for technology support.

DEFERRED MAINTENANCE: The Vice-President for Administration and Finance shall prepare a report for the President by March 1, 1999 reflecting how $442,000 of base budget and $ 522,000 of one-time budget is being utilized in support of maintenance and repair activities.

LAND ACQUISITION: The Vice-President for Administration and Finance shall provide quarterly reports to the President, the President's Budget Advisory Committee, the Vice-President for Academic Affairs Budget Advisory Committee and the Campus Reengineering Committee regarding the financial status of the campus land acquisition program.

COMMON MANAGEMENT SYSTEMS: The Vice-President for Administration and Finance shall provide quarterly reports to the President, the President's Budget Advisory Committee, the Vice-President for Academic Affairs Budget Advisory Committee and the Campus Reengineering Committee regarding the financial status of the Common Management Systems implementation at SSU.

FINANCIAL CONTROLS: The Vice-President for Administration and Finance shall immediately evaluate and as appropriate, establish appropriate financial, payroll, and human resource control mechanisms that prohibit the campus from encountering a deficit in any campus budget including auxiliary corporations. The Vice-President for Administration and Finance shall prepare a report for the President in this regard by December 1, 1998.

FINANCING THE UNIVERSITY RESERVE

Discussion then turned to a discussion of the University Reserve. Schlereth explained that consistent with past practice, a Reserve was not held at the University level. He noted that as Reserve items were identified and approved by the President, they would be financed with possible savings in the University-Wide budget category, primarily utilities and benefits. If revenue was insufficient from this category, any "revenue above the base" would be tapped. If funds were still needed, the cost of the Reserve would be allocated to the Divisions based on the marginal cost formula.

Schlereth indicated that he did not expect savings to be realized in the University-Wide category in 1998-1999 and that "revenue above the base" was not likely in FY 98-99. Consequently, Reserve items would more than likely be allocated to the Divisions. He also explained that several items had already been funded by the Reserve and that, for planning purposes, the Divisions should be holding resources for this purpose. The following data was provided to the Members in this regard:

Current known reserve obligations for 1998-1999 stand at $169,000 as indicted below:

Reserve Obligations
Item Amount
Risk Pool Deductibles $75,000
Presidential Scholars $75,000
Film Series $5,500
CSU Assessment** $3,500
Bond Campaign** $10,000
TOTAL $169,000

** Non-General Funds required.

 Un-funded items in the Reserve will more than likely grow by June 30, 1999.

Division Assessments for the Reserve will equal at least $169,000:

Division Assessments
Item Amount

Executive Office

$3,684

Academic Affairs

$145,711

Student Affairs

$3,617

Admin/Finance

$15,988

TOTAL

$169,000

Academic Affairs will assess that units within the Division for any Reserve obligations as reflected below:

Academic Affairs Assessments
Area Percentage Amount
Provost 5.6% $8,160
Business 7.6% $11,074
Social Sciences 15.5% $22,585
Education 5.9% $8,597
Natural Sciences 18.9% $27,539
Arts and Humanities 19.4% $28,268
Library 9.1% $13,260
Information Technology 7.8% $11,365
SAS 10.2% $14,863
TOTAL 100% $145,711

Discussion regarding the Reserve then ensued with Members and Guests noting the lack of Reserves at the Division level. Schlereth indicated that this was an on-going problem at SSU and urged Division budget managers to follow good business and financial practice and budget for Reserve items.

FINANCING COMMON MANAGEMENT SYSTEMS

Schlereth then provided the members with campus plans with respect to the funding of the CSU mandated Commons Management Systems (CMS). The following information was discussed:

Schlereth indicated that CMS cost estimates continued to be fluid but that he did expect a final estimate to be available in the near future. He indicated this information would be shared with the PBAC.

FALL PBAC AGENDA

Members then reviewed the preliminary agenda topics for the Fall Semester including:

ITEMS FOR THE GOOD OF THE ORDER

Several items were raised for the Good of the Order. These included:

ADJOURNMENT

Goldstein then adjourned the meeting at approximately 9:50 AM, thanked the Members for their attendance and reminded them of the November meeting date.

Minutes prepared by Larry Furukawa-Schlereth.


PBAC minutes 1998-1999
Updated 2007-12-14
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