President's Budget Advisory Committee

Minutes February 4, 1999

Approved by PBAC as corrected, 18 February 1999

Members Present:

Staff Present:

Members Absent:

Guests Present:

Meeting Agenda

APPROVAL OF THE AGENDA

Bernie Goldstein brought the meeting to order at 8:20 AM and asked for a motion to approve the Agenda. A motion was made by Sue Parker. A second was obtained from Rand Link. A vote was taken to approve Agenda. The agenda was approved unanimously.

APPROVAL OF THE MINUTES: 12-10-98

Goldstein asked for a motion to approve the Minutes of the December 10, 1998 meeting. A motion was made by Harris. A second was obtained from Ogg. Jim Meyer indicated Sue Parker was spelled incorrectly on the first page of the Minutes. Parker asked to see a table of the number of sections over 48 students be included in Minutes. Larry Schlereth agreed. Melinda Barnard explained she would like to see consistency in name format throughout the minutes, as the Minutes were somewhat confusing. She suggested using the first initial followed by the last name. Dennis Harris indicated it was standard form to use first and last names the first time a name is used and only the last name in subsequent namings. The Minutes as modified were approved unanimously.

BUDGET UPDATES

CMS

Schlereth briefed the Members on the progress of the CMS project. A steering committee has been appointed and will be meeting. For the Sonoma campus, Judith Hunt and Edna Nakamoto are working on the prototype Human Resource module that is expected to be ready in December 1999. Larry Lin has been hired by this campus as CMS Project Manager to implement the system. He previously worked in the Chancellor’s Office and will be joining us on March 1, 1999. Schlereth presented the following budget, which the CMS Steering Committee developed (reproduced below):


SONOMA STATE UNIVERSITY
CMS IMPLEMENTATION COSTS
Excludes Desk Top Replacements
  98-99 99-00 00-01 01-02 02-03 03-04 2004-?
Software Maintenance $ 0 $ 94 $ 94 $ 94 $ 94 $ 94 $ 94
Project Management $ 65 $130 $130 $130 $130 $ 130  $ 0
Contingency/Reserve $ 0 $105 $178 $ 0 $ 0 $ 0 $ 0
Consultants $150 $640 $640 $640 $480 $ 0 $ 0
Core Team Training $130 $130 $365 $ 0 $ 0 $ 0 $ 0
DBMS Training $100 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Technical Support/Interface $ 0 $160 $240 $320 $320 $ 0 $ 0
Campus Training $ 0 $100 $100 $100 $100 $ 0 $ 0
Human Resource Augment $ 0 $100 $ 0 $ 0 $ 0 $ 0 $ 0
Financial Services Augment $ 0 $ 0 $100 $ 0 $ 0 $ 0 $ 0
Admissions Augment $ 0 $ 0 $ 0 $100 $ 0 $ 0 $ 0
Financial Aid Augment $ 0 $ 0 $ 0 $ 0 $100 $ 0 $ 0
Interest, Line of Credit $ 0 $ 0 $ 70 $ 87 $ 87 $ 0 $ 0
Principle - Line of Credit $ 0 $ 0 $ 0 $ 6 $ 66 $1,253 $ 0
TOTAL $445 $1459 $1917 $1,477 $1,377 $1,477 $ 94

Funds
Source Percentage Amount
GENERAL FUND: 64.7% $5,332,000
SELF-SUSTAINING FUNDS: 35.3% $2,914,000
TOTAL: 100% $8,246,000

GENERAL FUND CMS IMPLEMENTATION FUNDING
  98-99 99-00 00-01 01-02 02-03 03-04 2004-?
General Fund 98-99 $236 $ 236 $ 236 $ 236 $ 236 $ 236 $ 236
General Fund 99-22 $ 0 $ 120 $ 120 $ 120 $ 120 $ 120 $ 120
General Fund 00-01 $ 0 $ 0 $ 100 $ 100 $ 100 $ 100 $ 100
General Fund 01-02 $ 0 $ 0 $ 0 $ 100 $ 100 $ 100 $ 100
FRS 01-02 $ 0 $ 0 $ 0 $ 60 $ 60 $ 60 $ 60
General Fund 02-03 $ 0 $ 0 $ 0 $ 0 $ 100 $ 100 $ 100
General Fund 03-04 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100 $ 100
GF Unit Assessments* $128 $ 118 $ 118 $ 118 $ 118 $ 118 $ 0
Line of Credit $ 0 $ 324 $ 800 $ 200 $ 0 $ 0 $ 0

GENERAL FUND CMS IMPLEMENTATION FUNDING - SUMMARY
SUM OF ABOVE GENERAL FUND CONTRIBUTIONS $6,054,000
LESS ENDING FUND BALANCE REBATE TO GENERAL FUND $ -722,000
GENERAL FUND CONTRIBUTION $5,332,000

*CMS GENERAL FUND UNIT ASSESSMENTS
Division 1988-1999 1999-2000 2003-2004
Executive Office 2.18% $ 2,790 $ 2,572
Academic Affairs** 86.22% $110,362 $101,740
Student Affairs 2.14% $ 2,739 $ 2,525
Administration and Finance 9.46% $ 12,109 $ 11,163
TOTAL $128,000 $118,000  

SELF-SUSTANING FUNDS
CMS IMPLEMENTATION FUNDING
Area 98-99 99-00 00-01 01-02 02-03 03-04 2004-?
Enterprises $ 55 $ 200 $ 200 $ 200 $ 200 $ 200 $ 0
Foundation $ 50 $ 160 $ 160 $ 160 $ 160 $ 160 $ 0
Housing $ 40 $ 65 $ 65 $ 65 $ 65 $ 65 $ 0
Parking $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 0
Extended Education $ 13 $ 55 $ 55 $ 55 $ 55 $ 55 $ 0
Health Center $ 4 $ 15 $ 15 $ 15 $ 15 $ 15 $ 0
Student Union $ 7 $ 18 $ 18 $ 18 $ 18 $ 18 $ 0

DERIVATION OF SELF-SUSTAINING FUNDS' CONTRIBUTION TO CMS
Area % of Budget % of Project CMS $ Contribution
Extended Education 3.50% 3.5% $ 288,000
Student Union 1.10% 1.1% $ 97,000
Health Center 0.96% 0.96% $ 79,000
ASI 0.99% 0% $ 0
Foundation 10.60% 10.3% $ 850,000
Enterprises 10.40% 12.8% $1,055,000
Housing 5.0% 4.4% $ 365,000
Parking 1.1% 2.2% $ 180,000
IRA 1.6% 0% $ 0
TOTAL 35.3% 35.3% $2,914,000

BUDGET UPDATES (Cont.)

Schlereth noted Sonoma will receive four $100,000 yearly augmentations beginning in 1999-2000 through 2002-2003. Further, the Associated Students, IRA, and the Foundation (Endowment, and Grants and Contracts) will be subsidized by other self-sustaining funds. Katie Pierce noted that, in the case of the Foundation, this subsidy amounts to 3/10ths of one percent of its total budget.

Budget Policy Development

A small Committee is looking at this. A first meeting is being arranged and should be scheduled shortly.

STATUS OF THE CAMPUS RESERVE

Schlereth indicated that the University has no reserve; however this campus currently has approximately $288,535 in items which should be absorbed by a reserve. The following is the Status of the University Reserve:

Status of the University Reserve
1998-1999
Unit Assessments

Current known reserve obligations for 1998-1999 stand at $288,535 as indicted below:

Known Reserve Obligations
Obligation Amount
Risk Pool Deductibles $ 75,000
Presidential Scholars 97-98 $ 38,500
Presidential Scholars 98-99 $ 75,000
Film Series $ 5,500
Toddler Center $ 8,000
CSU Assessment** $ 3,500
Bond Campaign** $ 10,000
Chancellor's Visit** $ 5,035
Environmental Impact Report 98-99* $ 50,000
Interest Cost - Interfund Loan from Trust, July, 99 $ 18,000
TOTAL $288,535

Unit Assessments
Unit Amount Percentage
Executive Office $ 6,287 2.18%
Office of the Provost $ 13,904 4.82%
School of Business and Economics $ 18,896 6.55%
School of Social Sciences $ 38,545 13.36%
School of Education $ 14,683 5.09%
School of Natural Sciences $ 47,028 16.30%
School of Arts and Humanities $ 48,269 16.73%
Library $ 22,647 7.85%
Information Technology $ 19,415 6.73%
Enrollment and Student Academic Services $ 25,391 8.80%
Student Affairs $ 6,175 2.14%
Administration and Finance $ 27,295 9.46%
TOTAL $288,535 100%

* Total EIR project costs are estimated at $200,000. The following funds sources have been identified:

Unit Assessments
Source Amount
Parking $ 50,000
Housing $ 50,000
Reserve 98-99 $ 50,000
Reserve 99-00 $ 50,000
TOTAL $200,000

** Non-General Funds required.

STATUS OF THE CAMPUS RESERVE (Cont.)

Members expressed a general concern regarding the lack of a reserve and its effect on the Schools. Schlereth reiterated his feeling that a reserve should be budgeted. Discussion on the matter ensued. The following points were expressed:

INDIRECT COST RECOVERY ANALYSIS

Schlereth suggested this item be deferred because Sue Parker, who suggested the analysis, was not present. The Committee had no objection.

UTILIZATION OF INSTRUCTIONAL EQUIPMENT DOLLARS

The following analysis presents the amount of money given to instructional equipment since 1994-1995 and where the money actually went:

SONOMA STATE UNIVERSITY
UTILIZATION OF INSTRUCTIONAL EQUIPMENT DOLLARS

1994-1995 $200,000
President establishes an on-going General Fund appropriation for instructional equipment. Appropriation placed in the University-Wide Budget Category. Resources to fund the appropriation were generated via the administrative Reengineering activities of the campus. The appropriation was then moved to the base budget of the Division of Academic Affairs (Provost Office) in fiscal 95-96.
1997-1998 $200,000
President increases the on-going General Fund appropriation for instructional equipment. Appropriation placed in the base budgets of the 5 schools. Resources to fund the appropriation were generated by a reduction in the base budget of the Division of Administration and Finance.
1998-1999 $165,000
The CSU Trustees provide a one-time allocation of $165,000 for instructional equipment. Appropriation placed in the University-Wide budget category.
FUND SOURCES
Source Amount Type
1994-1995 Appropriation from the President $200,000 Permanent
1997-1998 Appropriation from the President $200,000 Permanent
1998-1999 Appropriation from the Trustees $165,000 One-Time
TOTAL $565,000  

CURRENT UTILIZATION
Use Amount Type
Faculty Position - Education $ 88,529 Permanent
Administrative Position - Osborne Preserve $ 38,427 Permanent
Administrative Position - Sponsored Programs $ 71,109 Permanent
Provost's Operating Expense $ 1,935 Permanent
Ukiah Liberal Studies Program $ 62,640 Permanent
Mendocino College Building Project $ 40,000 5 years
Faculty Position - Business and Economics $ 54,000 Permanent
Partial Funding - Faculty Travel $ 43,360 Permanent
Instructional Equipment Purchases $165,000 One-Time
TOTAL $565,000  

UTILIZATION OF INSTRUCTIONAL EQUIPMENT DOLLARS (Cont.)

Many Members expressed serious concern about the use of the funds not being used for the intended purpose. Schlereth informed the Committee accountability measures have been developed to prevent this situation from occurring again. Further, Schlereth noted the Financial Services Information Group has been meeting and should help with this problem as well.

UTILIZATION OF TELEPHONE SWITCH DOLLARS

Schlereth presented the following analysis regarding the utilization of telephone switch dollars:

SONOMA STATE UNIVERSITY
UTILIZATION OF TELEPHONE SWITCH DOLLARS

1986
Campus determines it appropriate to purchase a new phone switch
Purchase made with: 1. $200,000 down-payment
2. $197,985 annual payments (lease purchase)
1986-1987
President allocates $197,985 of on-going, General Fund to CMTS (IT) from the University-Wide budget to Information Technology.
July 31, 1996
Lease purchase on the phone-switch fully paid. Funds allocated for the lease purchase payment remain in the Information Technology base budget.
UTILIZATION: 1986 - 1996
Use Amount
Lease Purchase Payments, Phone Switch $197,985

CURRENT UTILIZATION
Use Amount
Administrative Position, Information Technology $ 76,200
Additional general operating expense, Information Technology  $121,785
TOTAL $197,985

Schlereth explained Information Technology was given $197,985 yearly to pay for a phone switch, which would be fully paid on July 31, 1996. Rather than reverting to the General Fund, the money has stayed within Information Technology to pay for an administrative position and operating expense. A brief discussion ensued. Schlereth indicated much of this issue stems from budget decentralization seven years ago. While he still feels decentralization is the correct methodology, some risks are inherent.

ADJOURNMENT

Given the time, Bernie Goldstein adjourned the meeting at 10:05 AM and encouraged everyone to read their Marginal Cost document.

Minutes prepared by Neil Markley.


PBAC minutes 1998-1999
Updated 2007-12-14
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