Approved by PBAC, November 5, 1998
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.
Larry Furukawa-Schlereth then presented the Year-End Financial Report for 1997-1998 referencing materials contained with the Agenda Packet (Packet) and reproduced below:
|AREA||ONE-TIME SURPLUS||ONE-TIME DEFICIT|
|Administration and Finance||$119,629|
|Office of the Provost||$-158,492|
|Business and Economics||$74,022|
|Arts and Humanities||$66,709|
|Admissions and Records||$-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|
|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|
* 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.
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.
|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|
|NEW EXPENSE||Common Management Systems||$236,000||$236,000|
|Off-The Top Maintenance||$88,000||$88,000|
|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|
|President's Operating Expense||$0||$40,000|
|Off-The Top, Provost||$0||$128,000|
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:
|NEW ONE-TIME REVENUE:
*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.
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.
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:
|Risk Pool Deductibles||$75,000|
** 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:
Academic Affairs will assess that units within the Division for any Reserve obligations as reflected below:
|Arts and Humanities||19.4%||$28,268|
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.
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.
Members then reviewed the preliminary agenda topics for the Fall Semester including:
Several items were raised for the Good of the Order. These included:
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