This IS the CSU

Transcription

This IS the CSU

This IS the CSU
CSU 101 January 26-29, 2014
San Francisco
Lori Erdman, Director, Special Projects
CSU East Bay
Agenda
 Higher Education in the State of California
 State Government and Agencies
 Facts about the California State University
 Comparing CSU to other Institutions
 How the CSU is Organized and Governed
 Policies, Advice and Where We Go From Here
2
Higher Education in
California
3
Master Plan for
Higher Education
 Organized the functions
and governance for public
higher education into 3
“tiers”
 Established principle of
universal access within
certain admissions
requirements
 Transfer function is an
essential component of
the commitment to access
 Reaffirmed commitment to
principle of tuition-free
education
University of
California
California
Community
Colleges
California State
University
4
CSU’s Mission
 Primary mission is undergraduate and graduate
education, with emphasis on “applied” fields and
teacher education
– 2005 CSU got authority to offer independent Ed.D
– 2010 added doctorates in nursing practice and
physical therapy
 CSU admits the top 3rd of CA high school
graduates
 Faculty research consistent with the primary
function of instruction
5
CSU – UC
Comparison
CSU
 Quasi-independent state
agency
 Faculty represented by a union
 Policy centralization
 23 campuses
 $2.3 B state support in 2013-14
plus $2.08 B in student fees
 370,000 FTE students
 22,000 faculty headcount
 Emphasis on applied research
University of California
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Constitutional autonomy
No faculty collective bargaining
Highly decentralized campuses
9 campuses (with 5 medical
centers) + 3 national
laboratories
$2.9 B state support in 2013-14
222,000 FTE students
58,000 academic employees
Emphasis on basic research
6
California Community
Colleges
 2 year institutions that offer both academic and
vocational programs
 Academic programs focus on transfer to a 4-year
institution
 Grant the Associates degree
 112 colleges in 72 districts
 1,200,000 full-time students
 Focus on workforce improvement, remedial
education, ESL instruction
7
State Government and
Agencies
8
State Agencies
Higher
Education
Health &
Human
Services
K-12
General
Govt
Corrections
Executive
Legislative
Judicial
Business,
Transportat
ion
& Housing
Labor &
Workforce
Dev.
State &
Consumer
Srvs
Resources
Environment
Protection
9
Primary Interface
Financial
 State Controller’s Office
(SCO)
 Department of Finance
(DOF)
 State Treasurer’s Office
Education
 Superintendent of Public
Instruction
 Teacher Credentialing
 Student Aid Commission
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Employment
Public Employment
Relations Board (PERB)
Public Employees
Retirement System
Labor and Workforce
Development
Capital
Public Utilities
Commission
State Architect
 Etc., etc., etc.
10
CSU Facts
11
The 23 Campuses
of the CSU
12
Campus Founding
Timeline
1887-99
Chico, San Diego &
San Francisco
1901
San Luis Obispo
1857
San Jose State
1911-13
Fresno & Humboldt
1957-60
Fullerton, East Bay, Stanislaus,
Northridge, Sonoma, San Bernardino,
& Dominguez Hills
1947-49
Los Angeles,
Sacramento &
Long Beach
1938/1966
Pomona
2002
Channel Islands
1929/1994
Maritime Academy &
Monterey Bay
1988
San Marcos
World War II
San Francisco
Earthquake
1965
Bakersfield
Y2K
Stock Market Crash
13
Unique Campus
“Facts”
1887-99
Chico, San Diego &
San Francisco
1901
San Luis Obispo
1857
San Jose State
1911-13
Fresno & Humboldt
1957-60
Fullerton, East Bay, Stanislaus,
Northridge, Sonoma, San Bernardino,
& Dominguez Hills
1947-49
Los Angeles,
Sacramento &
Long Beach
1938/1966
Pomona
2002
Channel Islands
1929/1994
Maritime Academy &
Monterey Bay
1988
San Marcos
World War II
San Francisco
Earthquake
1965
Bakersfield
Y2K
Stock Market Crash
14
Size of the System
2.6 Million
Degrees
Awarded
437,000
Students
1 , 600 Degree
Programs
23
Campuses
22 ,000
Faculty
240 Subject
Areas
15
Budget and Enrollment Trends
357,222
360,000
$4.00
350,000
$3.75
342,000
341,280
340,000
est.
340,302
$3.50
336,510
Target
331,353
330,000
$3.25
328,155
$2.97
320,000
$3.00
321,339
310,000
$2.68
$2.73
$2.68
$2.60
300,000
290,000
$2.75
$2.50
$2.33
$2.45
$2.25
$2.48
$2.25
$2.06
280,000
270,000
281,782
$2.00
$2.00
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
Full Time Equivalent Students (FTES), California Resident
CSU State Allocation (in billions)
$1.75
Student Profile
(Fall 2012)
 Total enrollment was 437,000 (FTES = 370,000)
 58% Women; 42% Men
 22% were first time freshmen
 Mean age of undergraduates is 23
 92% are commuters
 Nearly 1 in 4 have dependents
 3 of 4 have jobs, and 18% work 30 hours or more
 35% are the first generation in their family to
attend college
17
Impact of Education
Prosperous Regional Economies and State Economy
Competitive Knowledge-Based Industries
Operational
and Alumni
Spending
Educated
Professional
Workforce
Advanced
Technology
Quality
of Life
Strong Public University System
18
CSU’s Economic
Impact
IN FACT:
•
For every $1 the state
invests in the CSU, the
CSU returns $5.43
•
The CSU sustains more
than 150,000 jobs in
the state
•
CSU-related expenditures create $17 billion in economic activity
19
California’s economic drivers are mainly
knowledge-based industries that thrive in the state
because of the quality of its skilled workforce:
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Agriculture, Food & Beverages
Business and Professional Services
Life Sciences and Biomedicine
Engineering, Information Technology, and Technical
Media, Culture and Design
Hospitality and Tourism
Education
Criminal Justice
Social Work
Public Administration
20
Work Force
Percent of California Bachelor’s degrees awarded by CSU in key
industries, 2007
64%
62%
54%
44%
45%
Media, Culture &
Design
Engineering
44%
Hospitality &
Tourism
Health/Medicine
Business
Agriculture
Comparisons
22
Size Comparisons
(Fall 2012)
University
Campuses
Enrollment
State
Appropriation
Employees
SUNY
64
463,000
$3.2B
90,000
CSU
23
437,000
$2.0B
44,000
Texas
15
215,000
$1.9B
68,000
23
Comparison
Institutions
 Used a list of comparison colleges from across the
country developed in consultation with state coordinating
commission (CPEC)
– Student tuition fees
– Faculty salaries
– Presidential salaries
 CPEC disbanded, so developing unique comparison
institutions for different groupings of CSU campuses
– San Diego
– Maritime Academy
24
Organization and
Governance
25
Governance
Board of Trustees
(appointed by the
Governor)
Chancellor
Timothy P. White
(appointed by the Trustees)
Campus Presidents
(appointed by the Trustees)
Chancellor’s Office
Administration
26
Board of Trustees
 Develop broad administrative policy for the campuses;
 Oversee the efficient management of funds, property,
facilities and investments by the system and the
campuses;
 Provide broad direction and coordination to campus
curricular development;
 Appoint the Chancellor and Vice Chancellors for the
system, and the Presidents for the campuses as chief
executives with certain delegated responsibilities; and
 Communicate to the people of California an
understanding and appreciation of the current
effectiveness and the future needs of the California State
University.
27
Council of Presidents
 Composed of the presidents from each of the
CSU campuses
 Meet approximately every 6 weeks
 Discuss issues that will impact all campuses
 Review policy proposals prior to finalization
28
Who is your
campus president?
1
4
7
10
2
5
8
11
3
6
9
12
29
Who is your
campus president?
13
16
19
22
14
17
20
23
15
18
21
24
30
Faculty Leadership
 Faculty founded and governed the very first
universities ever established
 The faculty continue to play a critical role in the
governance of any university and make this type
of institution unique in its operations, including in
business and financial affairs
 Each CSU campus has an elected faculty
governance group, which recommends academic
policy to the President
31
Organization
Timothy White
Chancellor
Framroze
Virjee
General
Counsel
Larry Mandel
University
Auditor
Sally Roush
Interim Vice
Chancellor
Business and
Finance
Ephraim
Smith
Executive
Vice
Chancellor
CAO
Gail Brooks
Vice
Chancellor
Human
Resources
Garrett Ashley
Vice
Chancellor
University
Relations &
Advancement
32
Sample Campus
Organization
Campus President
Student Services
Academic Affairs
Business & Finance
Advancement
Financial Aid
Institutional Research
Financial Mgmt.
Alumni Relations
Housing
Faculty Affairs
Facilities
Community Relations
Admissions
Library
Human Resources
Planned Giving
College Deans
Information Tech.
33
Organizational
Hierarchy
Board of Trustees
Campus Presidents
Chancellor
CABO
Executive Vice
Chancellor/
Chief Financial
Officer
FOA
Chancellor's Office
Business & Finance
Staff
34
Subject Matter
Groups
 Business/Finance
– FOA
– FSAC
– PSSO
 Capital
– Facilities Officers
– Plant Managers
 HR Directors
 AOA
– Research
 Health and Safety
–
–
–
–
EH&S
Risk Managers
Public Safety
SWEPT
 Technology
–
–
–
–
–
–
TSC
ITAC
ISO
ATA
COLD
CMS-PAC
35
Policies, Advice and Where
We Go From Here
36
Policy Hierarchy
Policy Hierarchy
Law
Federal Constitution
Federal Statutes
Federal Code of Regulation
State Constitution
State Codes (Education, Govt, Corporate)
California Code of Regulations (Title 5)
Board of Trustees Resolutions
Standing Orders of the Trustees
Executive Orders of the Chancellor
ICSUAM (Coded Memoranda)
Manuals
•
•
•
•
•
•
System
Policy
Campus
Policies/
Procedures
•
•
•
•
•
37
Where to find policy
statements
 Board Resolutions –
www.calstate.edu/BOT/resolutions
 Executive Orders - www.calstate.edu/eo/
 ICSUAM http://www.calstate.edu/icsuam/sections/index.sh
tml
 Manuals - foa.calstate.edu
38
Functions (selective)
 Develops systemwide budget and advocates for
funding from the governor and state legislature
 Advises and assists campuses in adhering to
systemwide policies
 Bargains agreements with employee unions
 Provides legal counsel for campuses
 Manages funding of capital program and assists
campuses with capital development projects
39
Business and
Finance
Vi San Juan
Capital
Planning
Bruce
Briggs
Information
Technology
Sally Roush
Interim Vice
Chancellor
Ryan Storm
Budget
Zachary
Gifford
Risk
Management
George
Ashkar
Financial
Services
40
CO Business and
Finance
Financial
Services
Information
Technology
Budget
Capital Planning
Budget
Development
Facilities Planning
Debt and Cash
Management
Applications
Budget Allocation
Architecture &
Engineering
Contracts and
Procurement
Data Warehouse
Student Fee
Policy
Construction
Management
Financial
Reporting and
Accounting
Information
Security and
Identity Mgmt
Utilities and
Energy
Sponsored
Programs
Administration
Infrastructure and
Network
41
Where to go for
help?
Financial Srvs.
www.calstate.edu/
FinancialServices/
(562) 951-4540
Budget
www.calstate.edu/
budget/
(562) 951-4560
QI Programs
www.calstate.edu/
QI/
(562) 951-4551
www.calstate.edu
Financing/Treasury
www.calstate.edu/
FT/
(562) 951-4570
?
ITS
www.ITS.calstate.
edu/
Capital
www.calstate.edu/
CPDC/
(562) 951-4100
Contracts
www.calstate.edu/
CSP/
(562) 951-4590
42
CSU 101 Goals
 Ground you in this organization
– This IS the CSU
– Chancellor’s Office organization
 Provide an overview of functions at the University
– Budget
– Banking, Cash and Investments
– Funding and Chart of Accounts
– Accounting
– Tax
– Human Resources
– Procurement
43
Goals (con’t)
 Understand the bigger picture and other activities
– Audits and Ethics
– Capital Projects
– Auxiliaries
 Establish a network of people you can turn to
with questions
44
Contact Info
• Lori Erdman
• [email protected]
• 510-885-3938
45
Governing the CSU
CSU 101 January 26-29, 2014
San Francisco
Brad Wells, Vice President and Chief Financial Officer
Administration and Finance, Cal State East Bay
In the beginning…
 April 14, 1960-Governor Pat Brown signs the
Donahoe Higher Education Act (also known as
"The Master Plan”)
 Unites the University of California, the California
State University, and the California Community
Colleges system
 Differentiates the missions of each
 The California State University is a creation of
the State of California and is governed by statute,
codes, regulations, and policies
2
Governance
Source and Flow
Constitution
Articles
Legislature
Governor
Codes
Board of
Trustees
Regulation
Resolution
Chancellor
Campus
President
Executive
Orders
University
3
Policies
Articles of the State
Constitution
ARTICLE III
ARTICLE IV
ARTICLE V
ARTICLE VII
ARTICLE XII
ARTICLE XIII
ARTICLE XIV
ARTICLE XV
ARTICLE XVI
ARTICLE XX
ARTICLE XXII
State of California
Legislative
Executive
Public Officers and Employees
Public Utilities
Taxation
Labor Relations
Usury
Public Finance
Miscellaneous Subjects
Architectural and Engineering Services
Link to full text:
http://www.leginfo.ca.gov/const-toc.html
4
State Codes
• California law organized in 29 “subject area”
codes
• Subject areas range from vehicles to
corporations, from insurance to fish and game,
from water to business and professions
• The codes that most directly affect the CSU
include the:
• Education Code
• Government Code
• Public Contract Code
Full text of California Codes
http://leginfo.legislature.ca.gov/faces/codes.xhtml
5
1960 Donahoe Act
• The Donahoe Act of 1960 created the Board of
Trustees and the California State University
• Education Code 89000
• “As used in this division, "trustees" means the
Trustees of the California State University,
created under Section 66600”
• Education Code 89001 (a)
• “The California State University includes the
institutions for higher education whose locations
or designations are listed in this section”
6
Board of Trustee
Title 5 Regulations
• The Board of Trustees establishes regulations in
the California Code of Regulations
• Published by the Office of Administrative Law
• Over 200 state agencies publish regulations in
compliance with Administrative Procedure Act
• The Board of Trustees regulations are contained
in Title 5, Division 5, Chapter 1 of the California
Code of Regulations
Link to full text:
http://weblinks.westlaw.com/toc/
7
Resolution of the
Board of Trustees
Link to resolutions
http://www.calstate.edu/bot/Resolutions/
8
Executive Orders of
the Chancellor
• Assign authority, responsibility, and
accountability to campus
Link to executive orders
http://www.calstate.edu/eo/subject_index.shtml
9
Campus Policies by
the President
At Cal State East Bay, the
President Issues University
Executive Directives
11-01
11-03
11-04
11-05
11-06
11-07
11-09
Subpoenas and Lawsuits
10-20-2011
Reimbursement of Hospitality
10-20-2011
Expenses
Reconsideration Request Procedures 10-20-2011
Time, Place and Manner
10-20-2011
04-01-2012
FERPA
Camping on University Property
10-20-2011
Management Personnel Plan
05-16-2012
Criminal Records Check Guidelines 04-16-2012
12-01
Special Consultant Appointment
11-02
10-29-2012
10
http://www20.csueastbay.edu/policies/index.html
The World is not
Perfect!
• A challenge for administration is how to apply
structured rules to unstructured reality
• Interpretation is always necessary – and
sometimes helpful
• Circumstances affect policy application
• Delegation of authority is not always explicit
• Judgment is required – but not in isolation
• One of the great advantages of the California
State University is that there are 23 others in
exactly the same position – ask!
11
Contact Info
• Brad Wells
• 510-883-3803
12
Reporting
CSU 101 January 26-29, 2014
San Francisco
Cheryl Kwiatkowski
Director, Business Intelligence/Data Warehouse
Why Reports?
CSU serves many customers and stakeholders.
Reports are an essential part of providing
information to make informed decisions about:
•
•
•
•
•
•
Financial condition of CSU
Budget planning
Salary and benefits
Financial aid
Student enrollment
Capital planning
2
CSU Data Trivia
There are currently over 20 reporting data base applications managed
by the Chancellor’s Office.
The data are collected in various ways:
• Pulled from the campus Student, Finance and HR administrative
applications
• Pushed by the campuses
• Entered online by the campuses
Data are collected monthly, quarterly, at census date, yearly
The data must pass all “critical” edits
Some historical data goes back over 40 years
3
Financial Information Record
Management System (FIRMS)
Purpose
• Fulfill systemwide financial reporting requirements from campus-collected data
• Report end-of-period accounting data and submit budget proposals
Request
• California State Offices and Legislature Offices (SCO, BSA, GO, DOF, LAO)
• CSU Board of Trustees
• Chancellor’s Office Executives and Management
• CSU Campus Presidents and Management
• National Center for Education (NCE)
 Systemwide Financial Reports
 Governor’s Budget
 Schedule 10 (Appropriation and Expenditures Report)
 Schedule 7A (Salaries and Wages Spreadsheet)
 Lottery Fund Report
 Integrated Postsecondary Education Data System (IPEDS) Finance Survey
Steward
• Systemwide Financial Standards & Reporting
4
TM1 Year End
System (YES)
Purpose
• Collect campus GAAP (Generally Accepted Accounting Principles) financial
reporting packages
• Consolidate CSU GAAP financial statements
Request
• State Controller’s Office (SCO)
• Federal Award Agencies
• Rating Agencies
• NCE
 Consolidated CSU GAAP Financial Statements
 Consolidated A-133 Federal Awards Single Audit Report
 Executive Management Reports
 IPEDS Finance Survey
Steward
• Systemwide Financial Standards & Reporting
5
Employee Salary
Projection (ESP) System
Purpose
• Collect employment and payment history, and data relative to
CSU positions, compensation, and benefits.
• Estimate compensation increase and benefit costs for budget
planning and collective bargaining negotiation.
Request
• Chancellor’s Office Executive and Management (Budget
Development)
• Systemwide Human Resources/Employee Relations Office
• Collective Bargaining Units
 Ad hoc reports to cost state support salary and benefit increases
 Ad hoc reports for collective bargaining purposes
Steward
• CSU Budget Office
6
Student Fee Report
Purpose
• Collect campus student fees data into a systemwide database
• Campus can view, download, and analyze its data or mandatory
fees data for all campuses
Request
• EO 1054 CSU Fee Policy
• NCE
• Western Interstate Commissions for Higher Education (WICHE)
 Summary Level Report
 IPEDS Survey
Steward
7
Instructional Equipment
Report (IER)
Purpose
• Collect campus’ inventory of instructional equipment.
Request
• California State Offices (DOF, GO)
• Chancellor’s Office
 Depreciation derived from inventory report is used to identify
CSU instructional equipment marginal cost per full-time
equivalent student, funding deficiencies, and explain funding
requests to the DOF.
Steward
8
Community Service
Learning
Purpose
• Review community service activities funded by grants and state
funds
• Management planning and reporting
Request
 Report used for program plans, goals and objectives
 Measure program success
 Campus service learning budgets and expenditures
Steward
• Community Service Learning
9
Financial Aid
Database (FADB)
Purpose
• Store financial aid student eligibility and award data and limited student
demographic data for financial aid applicants, as reported by the campus
financial aid offices for each award year.
Request
• Department of Finance
• Legislative Analyst’s Office
• NCE
 State University Grant (SUG) allocations for CSU campuses
 Institution Prices and Student Financial Aid (IPSFA) survey
 Integrated Post Secondary Education Data System surveys
 Student Financial Aid Survey
 Institutional Characteristics Survey
 CSU Statistical Abstract
 Voluntary System of Accountability (VSA)
Steward
• Student Academic Support
10
Enrollment Reporting
Systems (ERS)
Request
• Legislative Analyst’s Office
• California Post-Secondary Education Commission (CPEC)
• NCE
 Integrated Postsecondary Education Data System (IPEDS)
 Institutional Characteristics Survey
 Graduation Rates
 Fall Enrollment
 Student Financial Aid Survey
 Proficiency & Remediation Reporting
 Financial Aid projections
 Statistical Reports
 Ad-hoc Reports
Steward
• Analytic Studies
11
ERS (con’t)
12
ERS (con’t)
Applicant (ERSA)
• Provides information on each applicant, as of census date, on each
applicant during the college year whether or not the applicant enrolled
in a CSU.
• Information used for enrollment projection and student financial need
projections.
• Source for changes in admissions criteria.
Degree (ERSD)
• Provides information on each degree awarded to all students by any of
the CSU campuses during a single college year.
• Information can be obtained on degree recipients on the basis of sex,
ethnicity and age.
Off-Campus (ERSO)
• Provides information on all units taken at designated off-campus centers
of the CSU.
13
ERS (con’t)
Student (ERSS)
• Provides enrollment data for each matriculated state supported student
each term of the college year.
• Support state budget requests, respond to federal information request
and support research requirements.
Teachers (ERST)
• Provides information on teaching credentials granted to students
enrolled in CSU professional education preparation program.
System Special Sessions (SERSS)
• Provides data for each student enrolled within a non-state supported
degree program.
• Continuation (ERSC) Combines enrollment and degree data to provide
information on student continuation and graduation rates, by freshman
and transfer cohort.
14
Academic Planning
Database (APDB)
Purpose
• Provides information, as of census date, on all persons who are compensated
from instructional budget accounts and persons having teaching responsibilities
in the CSU regardless of funding sources.
• Information on each class section that is offered and the resources used to teach
these courses each term.
Request
• Federal and State Agencies
• Chancellor’s Office Executive and Management
• NCE
 Integrated Postsecondary Education Data System
 Annual studies of facility utilization
 Faculty workload analyses
 Support requests for new facilities or major changes using capital outlay funds
Steward
• Analytic Studies
15
Space and Facilities
Database (SFDB)
Purpose
• Provides information about facilities and rooms within the facilities on
campus.
• Campus supplied annual data is maintained at CPDC, which provides
information about: (1) facilities and (2) rooms within the facilities.
• Serves as the campus’ official record of existing spaces.
Request
• State Agencies
 Annual Studies of facility utilization
 Support requests for new facilities or major changes using capital outlay
funds
 Reports used in the analysis of the capital outlay budget change
proposals, space needs, space utilization, and other space and facility
related issues and reports
Steward
• Capital Planning, Design, and Construction (CPDC)
16
Special and Minor
Capital Outlay
Purpose
• Manage minor capital, special repair, energy, and other projects
funded through the Chancellor’s Office.
Request
• Department of Analyst’s Office
 Ad hoc reports for review, consideration, and approval of
projects
 Ad hoc reports to track funding and expenditures
Steward
• CPDC
17
Contact Info
• Cheryl Kwiatkowski
• 562-951-4270
18
Human Resources
CSU 101 January 26-29, 2014
San Francisco
Denise Needleman, Consultant,
Human Resources, East Bay
Human Resources in
the CSU
 Recruiting and Selection
 Orientation and On-Boarding
 Benefits Administration and Retirement
Planning
 Training, Development & Performance
Management
 Compensation and Classification
 Employee and Labor Relations
 Payroll and HR Data Management
 Worker’s Compensation and Wellness
 Internal Consulting: Succession Planning and
Recognition Programs
2
Employee Groups
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











Unit 1 – Physicians (UAPD)
Unit 2 – Health Care Support (CSUEU)
Unit 3 – Faculty (CFA)
Unit 4 – Academic Support (APC)
Unit 5 – Operations & Support Services (CSUEU)
Unit 6 – Skilled Crafts (SETC)
Unit 7 – Clerical & Administrative Support Services (CSUEU)
Unit 8 – Public Safety (SUPA)
Unit 9 – Technical & Support Services (CSUEU)
Unit 10 – Int’l Union of Op. Engineers (Cal Maritime)
Unit 11 – Instruct. Student Assistants, GA’s, TA’s (UAW)
Unit 13 – ESL Teachers (CSU LA)
Excluded Groups: MPP, Confidential, Others
3
Who is covered?
Percentage of CSU Workforce
1%
CFA (Unit 3)
14%
2%
CSUEU (Units 2, 5, 7, 9)
4%
41%
SETC (Unit 6)
APC (Unit 4)
28%
UAW (Unit 11)
Other Units
4
Key Roles and
Responsibilities
Management
Staff
Lead Staff
 Significant
responsibilities for
formulating or
administering
policies and
programs (HEERA)
 Establish broad
goals and
objectives
 Performance
assessment based
upon
accomplishments
 Nature and scope of
work is defined within
Systemwide
Classification
Standards
 Work is assigned
and monitored for
completion
 Performance is
assessed based
upon assigned
projects and quality
and quantity of work
performed within the
position.
 Monitor conduct and
performance related
issues and make
recommendations for
action to an MPP
manager
 Evaluate performance
if directly observed
 Make daily work
assignments based
upon operational goals
established by a
manager, schedule
work and monitor
attendance, and
evaluate performance
of staff members if
directly observed
5
Labor Relations 101








Hiring/Appointment Process and Contracting Out
Reassignment /Reclassification and Work Schedules
Corrective Action and Disciplinary Actions
Due Process Rights: Grievances/Complaints/Weingarten
Rights
Probation/Permanency/Seniority/Layoff
Performance Development and Reviews
Health and Safety
Compensation
6
Grievance Process





Informal
First Level Manager (or appropriate administrator)
Human Resources Officer (LR/ER designee)
Third Party Binding Arbitration
7
Probation and
Performance Reviews





Opportunity for evaluation from BOTH parties
Recurring, consistent, timely feedback during probation
Process for annual evaluation – goals/expectations
Opportunity for training on/off working hours
Career planning
8
Progressive Discipline
 Informal Disciplinary Actions: Verbal/Written Warnings,
Performance Improvement Plans, Written Reprimands
 Formal Disciplinary Actions: Suspension, Demotion,
Termination
 Appeal Rights: Skelly Review, State Personnel Board
9
Safety




Work environment
Work Practices
Workplace Injury
Equipment
10
Employee Protection
(UED, UEO)
 Discrimination
 Harassment
 Whistleblower
11
CSU Benefits
 Fee Waiver Program
 http://www.thesource.calstate.edu/
─E-learning
─Classroom learning
12
Campus Benefits






Cultural Events
Sporting Events
Community Services/ Volunteer Opportunities
Recreation
Work/Life Programs
Professional Development Courses
13
Questions
14
Contact Info
• Denise Needleman
• 510-885-3634
15
Finance Infrastructure
CSU 101 January 26-29, 2014
San Francisco
Debbie Brothwell
Deputy Vice President, Finance
CSU East Bay
(Retired)
Justine Heartt
AVP Financial Services
CSU, Sacramento
State/Government Flow of
Authority
2
SOURCE, FLOW, AND SCOPE OF STATE GOVERNMENT AUTHORITY AND REGULATIONS
(Exclusive of case law, local governments, and Federal law)
September 2005
ARTICLE IV
THE CONSTITUTION OF CALIFORNIA
Our Operating “Rules”
DONOHOE ACT OF 1960
CREATES
THE CSU BOARD OF TRUSTEES
AND CAL STATE SYSTEM OF CAMPUSES
(EDUCATION CODE)
Article III: State of California
Article IV: Legislative
Article V: Executive
Article VII: Public Officers and
Employees
Article XII: Public Utilities
Article XIII: Taxation
Article XIV: Labor Relations
Article XVI: Public Finance
Article XX, §3, §20, §23
Article XXI: Architectural and
Engineering Services
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
Division 5. Board of Trustees of the
California State University
Chapter 1. California State University
RESOLUTIONS AND
ORDERS
ACTIONS OF THE BOARD
RESOLUTIONS AND
RULES
Subchapter 1. Definitions
Subchapter 2. Educational Program
Subchapter 3. Admission Requirements
Subchapter 4. Student Affairs
Subchapter 5. Administration
Subchapter 6. Auxiliary Organizations
Subchapter 7. Employees
Subchapter 8. Environmental Quality
Subchapter 9. Contracts and Purchases
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
Budget Act
Business and Professions Code
Code of Civil Procedure
Corporations Code
Elections Code
Fish and Game Code
Government Code
Health and Safety Code
Labor Code
Penal Code
Public Contract Code
Public Utilities Code
Streets and Highway Code
Vehicle Code
Welfare and Institutions Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Food and Agricultural Code
Harbors and Navigation Code
Insurance Code
Military and Veterans Code
Probate Code
Public Resources Code
Revenue and Taxation Code
Unemployment Insurance Code
Water Code
STATUTES AND
APPROPRIATIONS OF FUNDS
THE CALIFORNIA LEGISLATURE
STATE SENATE AND STATE ASSEMBLY
State laws that govern CSU
operations:
CSU Board of
Trustees
Selected constitutional
articles and sections that
affect CSU:
CAMPUS
PRESIDENT
3
September 2005
ARTICLE IV
DONOHOE ACT OF 1960
CREATES
(EDUCATION CODE)
Employees
Article XX, §3, §20, §23
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
RESOLUTIONS AND
ORDERS
RESOLUTIONS AND
RULES
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
Budget Act
Corporations Code
Elections Code
Fish and Game Code
Government Code
Labor Code
Penal Code
Vehicle Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Insurance Code
Probate Code
Water Code
STATUTES AND
operations:
Title 5: Education
Board of Trustees
of the CSU
affect CSU:
CAMPUS
PRESIDENT
4
September 2005
ARTICLE IV
Budget Act
Corporations Code
Elections Code
Fish and Game Code
Government Code
Labor Code
Penal Code
Vehicle Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Insurance Code
Probate Code
Water Code
DONOHOE ACT OF 1960
CREATES
(EDUCATION CODE)
Employees
Article XX, §3, §20, §23
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
RESOLUTIONS AND
ORDERS
operations:
STATUTES AND
RESOLUTIONS AND
RULES
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
Public Contract
Code
Education Code
Budget Act
affect CSU:
CAMPUS
PRESIDENT
5
September 2005
ARTICLE IV
DONOHOE ACT OF 1960
CREATES
(EDUCATION CODE)
Employees
Article XX, §3, §20, §23
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
RESOLUTIONS AND
ORDERS
RESOLUTIONS AND
RULES
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
Budget Act
Corporations Code
Elections Code
Fish and Game Code
Government Code
Labor Code
Penal Code
Vehicle Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Insurance Code
Probate Code
Water Code
STATUTES AND
operations:
Chancellor of the
CSU
affect CSU:
CAMPUS
PRESIDENT
6
September 2005
ARTICLE IV
DONOHOE ACT OF 1960
CREATES
(EDUCATION CODE)
Employees
Article XX, §3, §20, §23
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
RESOLUTIONS AND
ORDERS
RESOLUTIONS AND
RULES
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
Budget Act
Corporations Code
Elections Code
Fish and Game Code
Government Code
Labor Code
Penal Code
Vehicle Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Insurance Code
Probate Code
Water Code
STATUTES AND
operations:
Campus Presidents
(EO 1000)
affect CSU:
CAMPUS
PRESIDENT
7
Authorities are very
specific
 We are granted authority as to….
–
–
–
–
what we can charge
for what services
where we deposit funds
how to use these funds
8
Our Authority for how we use
funds
 Sample Authority – Parking Fines and
Forfeitures
– Education Code 89701.5
 Gives us authority to give citations
 Authorizes the Use of
– Alternate Modes of Transportation
 Bus to BART
 Zip Cars
– Administration of Citations
 Tells us we can give the citation and what we can
do the money
– Also tells us where we can deposit the funds
9
State University Trust Fund
 CSU has been authorized to deposit various activities into
State University Trust Fund over the years
–
–
–
–
–
Donations
Housing
Parking
Continuing Ed
And most recently
 Student Fees
 All this activity is accounted for in unique CSU Funds
within the State Controller’s Fund (SCO) 0948
 All funds within SCO Fund 0948 are managed by the
CSU Bank (Wells Fargo) as opposed to the State
Treasurer
10
Funding Hierarchy
 Meet the PeopleSoft Fund Chartfield
– He knows the State Controller’s Fund value
– He knows the CSU Fund Value
– He knows the Education Code or Budget Act that
enabled the funds he is spending
– He knows how he will be reported to the CSU in
FIRMS
I’m
really
– He knows how he will be reported in GAAP
SMART!
– He ALWAYS knows these things
!!
 He knows all this–the challenge is teaching
You
it to you
need
me!
11
Transaction Flow
I’m on every
transaction
– along with
some other
Chart Fields
– They need
me!
12
EO 1000 – Delegation of Fiscal Authority to Campus
13
Executive Order 1000 – Delegation
for Fiscal Authority Summary
 President shall ensure:
–
–
–
–
–
–
–
–
–
Compliance
Expenditures do not exceed available resources
Internal controls
Appropriate accounting processes
Sufficient reserves for contingencies
Timely year-end close
GAAP
Propriety of all expense & integrity of Auxiliary Org
Cost incurred by the CSU Operating Fund are
appropriately recovered
14
Executive Order 1000
Delegation
 …may be revoked
 Authority delegated by this Executive Order
may be revoked in whole or in part if in the
judgment of the Chancellor the campus
President has not complied substantially with
provisions of this Executive Order.
15
EO 1000 – Table A
 Table A of EO 1000 defines funds established
and regulated by the CSU (on deposit within
SCO Fund 0948)
– These funds are managed by the CSU Bank
– These funds are accounted for by CSU Funds
– These CSU Funds are categorized by EO 1000
I know
 Proprietary -Enterprise
 Proprietary - Internal Service Fund
 Fiduciary - Investment Trust Fund
 Fiduciary - Private Purpose Fund
 Fiduciary - Agency Fund
this
stuff
too!!!
16
EO 1000 – Table B
 Table B of EO 1000 defines categories for funds
established and regulated by the State (on deposit
with the State Treasurer)
– These funds also have CSU Fund values but they are
maintained at the State Controller by the SCO Fund
value
– These funds are categorized by EO 1000





Governmental – General Fund
Governmental – Special Revenue Funds
Governmental – State Capital Outlay Funds
Proprietary – Enterprise Funds
Fiduciary – Trust and Agency Funds
17
State University Trust – Split
Personality
 The State of California classifies 0948 – State
University Trust as a Fiduciary Trust and Other
Agency Fund
 The CSU categorizes the activity within this fund
by CSU Fund which are defined in Table A of EO
1000
18
Sample of how PeopleSoft
Keeps Track of all this…..
Remember, I
know the SCO
Fund, CSU
Fund and
GAAP NAC
19
Funding Sources
20
Main Operating Fund
 General Fund/Student Fee Revenue
– CSU Operating Fund
– The primary purpose of the CSU Operating Fund
is to record revenues and expenditures for statesupported instruction.
 Used to record state tax revenue and student
fees. The state tax revenue portion, which is
annually allocated by the California Legislature to
the CSU, is the main source of funds for the
University operating budget. A secondary source
of funds is student fees such as the CSU Tuition,
Non-Resident Tuition, Application Fee, Health
Services fee, and other fees.
 CSU Fund 485
21
IRA (Instructionally Related
Activities)
 Funding source are fees collected for the mandatory IRA Fee and
or revenue generated by the IRA program itself
 CSU Fund 463
I know this is
CSU Fund 463
- I help keep it
separate..I
know ALL the
CSU funds
22
Lottery Education Fund
 Funding source
– Cash generated from the sale of California State
Lottery tickets, a portion of which is allocated to
CSU campuses
 Departments are allocated Lottery Funds by an
annual budget allocation
 CSU Fund 481
23
Lottery Guidelines
24
Housing Operations
 Funding Source
– Revenues are generated from license fees paid
by dormitory residents and must be used
exclusively for the self-supporting housing
program
 CSU Fund 531
25
Parking Operations
 Funding Source
– Parking revenue is generated from the sale of
parking permits and fines paid for citations
issued.
 Parking Fines and Forfeitures – CSU Fund 471
 Parking Fees – CSU Fund 472
26
Continuing Education
Revenue Fund (CERF)
 Funding Source
– These sources are generated by student fees for
enrollment in Continuing Education courses.
– Funds must be used for self-supporting
instruction in the Continuing Education program.
 CSU Fund 441
 CSU Fund 444
– Denotes funds under the management of
Academic Colleges. Purpose funds can be used
for does not change
27
Campus Union Operations
 Funding Source
– Revenues are generated from the mandatory
University Union fee.
– Exclusively for the self-supporting Campus
University Union facilities and related programs.
 CSU Fund 534
28
ASI
 Associated Student Fee
 ASI is a separate legal entity
 Established by EC 89720- 89724
 CSU Fund 461
29
Capital Outlay
 Funding Source
– There are two sources of funds for CSU capital
outlay programs
 state tax revenues appropriated by the state
legislature
– Student Services and Administration Building
 the proceeds from the sale of bonds.
– Rec and Wellness Center
– The funding must be used for the construction
projects specified.
30
Auxiliaries
 Options for Financial Operations
– Agency Fund on Campus Books
 CSU Fund 436 – Other Agency
– Auxiliaries operates within PS with their staff
– University Accounting processes Auxiliary Activity
within a unique Business Unit within PS
– Auxiliary is completely separate – accounting
system and staff
31
Chart of Accounts
32
ChartField Overview
I need the other
chartfields too!
Fund – Tied to a specific purpose (Trial
Balance)
DeptID – Campus Organization (Same in HR)
Account – Type of Expenditure
Program – On Going Revenue & Expense
Project – Time specific Revenue & Expense
Class – Dept level information Rev & Expense
33
FUND
Identifies funding that
has a specific defined
purpose
Hi
again!
34
Department
A unique department within the
University organization
– Can also be used to identify a major
program within a department, example:
Utilities
35
Account
Identifies Assets, Liabilities, Expense
and Revenue
– Campus departments will most often use
Expense and Revenue Accounts
 Expense accounts begin with a 6
 Revenue accounts begin with a 5
– Sample:
 660003 = Supplies and Service
 606001 = Travel
 619001 = Equipment
36
Program
 Identifies major on-going activity
 Example:
– Defines IRA Programs
 IA003 – Art Gallery
 IA013 – Music Jazz Studies
37
Project
 Defines activity with a start and end date
– Capital Outlay projects
– Continuing Education
– Faculty Support Grants
38
Class
 Defines minor on-going activity
– This activity is often related to a specific
department – not a major activity
39
ChartField Review
Fund – Tied to a specific purpose (Trial
Balance)
DeptID – Campus Organization (Same in HR)
Account – Type of Expenditure
Program – On Going Revenue & Expense
Project – Time specific Revenue & Expense
Class – Dept level information Rev & Expense
40
Sample Chart of Accounts
Fund
CSU01
HSG01
PKG01
TRT01
IRA01
CRF01
Program
PG001
PG002
PG003
PG003
Description
CSU Operating Fund
Housing Fund
Parking Fund
Trust Fund
IRA Fund
CERF Fund
DeptID
11370
11300
11650
12740
14500
11000
12560
Description
Finance Dept
Athletics
Theatre Dept
Housing Services Dept
Facilities Dept
Central Activity
College of Engineering
Description
Football
Accreditation
Conference Fees
On-line Courses
Project
PRJ-001
PRJ-002
PRJ-003
PRJ-004
Description
New Student Service Build
Utility Infrastructure
Cohort #24
Road Repair
Account
606001
660003
619001
601300
605001
501001
Class
CL001
CL002
CL003
Description
Travel
Supplies
Equipment
Payroll
Utilities - Electric
Tuition Fee Revenue
Description
Fall Semester
Guys and Dolls
Tires
41
Fund
CSU01
HSG01
PKG01
TRT01
IRA01
CRF01
Program
PG001
PG002
PG003
PG003
Description
CSU Operating Fund
Housing Fund
Parking Fund
Trust Fund
IRA Fund
CERF Fund
DeptID
11370
11300
11650
12740
14500
11000
12560
Description
Finance Dept
Athletics
Theatre Dept
Facilities Dept
Central Activity
Description
Football
Accreditation
Conference Fees
On-line Courses
Project
PRJ-001
PRJ-002
PRJ-003
PRJ-004
Description
Cohort #24
Road Repair
Account
606001
660003
619001
601300
605001
501001
Class
CL001
CL002
CL003
Description
Travel
Supplies
Equipment
Payroll
Tuition Fee Revenue
Description
Fall Semester
Guys and Dolls
Tires
The Theatre Dept is buying supplies for the upcoming
play - Guys and Dolls
42
Fund
CSU01
HSG01
PKG01
TRT01
IRA01
CRF01
Program
PG001
PG002
PG003
PG003
Description
CSU Operating Fund
Housing Fund
Parking Fund
Trust Fund
IRA Fund
CERF Fund
DeptID
11370
11300
11650
12740
14500
11000
12560
Description
Finance Dept
Athletics
Theatre Dept
Facilities Dept
Central Activity
Description
Football
Accreditation
Conference Fees
On-line Courses
Project
PRJ-001
PRJ-002
PRJ-003
PRJ-004
Description
Cohort #24
Road Repair
Account
606001
660003
619001
601300
605001
501001
Class
CL001
CL002
CL003
Description
Travel
Supplies
Equipment
Payroll
Tuition Fee Revenue
Description
Fall Semester
Guys and Dolls
Tires
Equipment needs to be purchased by the Facilities
Dept to help maintain the parking lots
43
Questions
44
How the CSU uses PeopleSoft for Finance
45
CSU Uses THREE Business
Units to process Financial
Information
XXCMP
XXCSU
XXGAP
I have a
different
purpose in
each
Business
Unit
46
Transaction Types recorded
in each Business Unit
You have to
choose the
correct value on
the original
transaction or
LOTS of things
can go wrong…I
don’t like it.
47
Sample Transaction Analysis
for medium size campus
Whew! Am I
busy in the
Campus
Business Unit!
48
PeopleSoft Chartfield Values
used in each Business Unit
My value stays the
same in the CSU
Business Unit but it
changes to Net Asset
Category in the GAAP
Business Unit
49
Reporting Generated from
each Business Unit
I use the State
Controller’s fund
value and the CSU
fund value and the
Net Asset Category
for all this reporting
– I know a lot!
50
Contact Information
 Justine Heartt
– Sacramento State
 916-278-7461
 [email protected]
 Debbie Brothwell
– Retired
 805-441-0030
51
Planning and Financing for Capital
Projects
CSU 101
January 26-29, 2014
San Francisco
Brad Wells, Vice President Administration and Finance and
Chief Financial Officer, Cal State East Bay
Topics
 Capital Plans
 CSU Capital Financing Options
– State Facilities
– Non-State Facilities
 Financing Constraints and Conditions
– Economic Constraints
– Policy Conditions
 Recent Developments
Master Plan
 Existing and anticipated facilities
– for a specified enrollment
– at an estimated target date
 Generally revised every 10 years
– 2 - 3 year process
– Requires Environmental Impact Report (EIR)
– Requires Board of Trustees’ approval
Five-Year Capital
Outlay Plan
 Annually campuses submit a proposed schedule
for its Campus Master Plan implementation for a
five-year period
 Includes both State and Non-State projects
 Amendments/Revisions are allowed with Trustee
approval
Financing Options
 Financing for State and Non-State Facilities
– State Facilities
 General Obligation Bonds
 Public Works Lease Revenue Bonds
 Leased Asset Transfer Revenue Bonds
– Non-State Facilities
 Systemwide Revenue Bonds
 Commercial Paper
 Public/Private Partnerships
State Financing History
State CSU Debt
Bond
Outstanding
2013-14 Debt
Payment
Highest Annual
Payment
General Obligation
$4.8 billion
$198.1 million
$232.7 million
Lease Revenue
$1.7 billion
$90.5 million
$113.3 million
Total
$6.5 billion
$288.6 million
$346.0 million
Historically, the State has paid General Obligation debt and appropriated
funds to the CSU to pay lease revenue bond debt
Constraints and
Conditions
 General obligation bonds require voter approval
 Last GO bond approved in 2006
 Lease revenue bonds used beginning in 2008/09
to finance CSU capital
 Unlikely that significant additional State GO or
lease revenue bonds will be issued in the near
term
 State bond sales are controlled by the
Department of Finance and the State Treasurer
and all educational segments are considered
together
Non-State Financing
 Systemwide revenue bonds
– Issued pursuant to authority the State University
Revenue Bond Act of 1947
– Bonds totaling $3.1 billion have been issued
 Commercial Paper is also used to provide interim
financing for projects that will eventually be
financed with revenue bonds and to finance
equipment purchases
 Public/Private partnerships can also be used to
finance certain development and utility projects
Non-State Facilities
 Student Housing
 Parking Structures
 Student Unions/Recreation Centers
 Health Centers
 Continuing Education
 Auxiliary Organization Projects
 Public/Private Developments
 Most often owned by the State (e.g. housing,
parking, student unions) but financed on a self
support basis
Constraints and
Conditions
 Policy for Financing & Debt Management
– Trustees Resolution RFIN 03-02-02
– Executive Order 994
 Debt Service Coverage Ratios
 Gross revenues are cross pledged
 Reserves
 Tax exempt or taxable, variable and fixed rate
 Ratings exceed State of California
 IRS restrictions
Systemwide
Revenue Bonds
Public Private Projects
 Governed by Executive Order 747
 Private entities utilize campus land for continued
support of the campus mission
 Projects reviewed by the Land Development
Review Committee
– Campus land is leased to an Auxiliary
Organization
– Auxiliary Organization sub-leases land to a
private entity
– Private entity develops land and provides a lease
payment
Recent Developments
 March 2013 budget trailer bill language proposed
to expand authority to pledge general fund
support appropriation and other revenues for
capital financing and incorporate debt service in
annual operating budget
 UC used expanded authority to refinance state
revenue bonds to free up cash flow allowing
additional financing
 CSU has proposed similar authority for 2014/15
and Trustees have requested $45 million over
three years to fund $750 to $800 million for
capital infrastructure
GO/LR Debt Service
Future Financing
 Expand CSU Systemwide Revenue Bonds with
pledge of fees and appropriations
– Requires revised Board of Trustees policies
– Allocation of debt capacity as a strategic resource
 Use State Public Works Board Lease Revenue
Bonds, State Leased Asset Transfer Revenue
Bonds, and State GO Bonds where available
 Continue to use Public/Private partnerships,
equipment, and energy financing where
appropriate
CFS Reporting:
Data Warehouse
CSU 101 January 26-29, 2014
San Francisco
Cheryl Kwiatkowski
Director, Business Intelligence/Data Warehouse
Sherry Pickering
Director, Fiscal Services
CSU, East Bay
Data Warehouse
2
Data Warehouse
OVERVIEW
 CSU Finance Data Warehouse
 Source: PeopleSoft Finance Data Base
 Common Financial System
 Tool: Oracle Business Intelligence Extended
Edition (OBIEE)
CMO and Accounting Team
 The data is 1 day old
3
Data Warehouse
OVERVIEW
 The data warehouse is built by pulling data from CFS
 The data pulled includes ledger summary data and the
corresponding detailed transaction data
• Campus data marts:
•
•
•
•
•
•
Actuals
Budgets
Encumbrances
Pre-Encumbrances
Summary
Sponsored Programs (if exists)
• FIRMS/Legal data marts
• Actuals
• Budgets
• Encumbrances
• Summary
• GAAP data mart
• Actuals
4
CSU Data Warehouse
 ORACLE OBIEE reporting tool
– Summarized reports by all ChartFields with drill down
– Open PO’s with drill down
– Transactions by “posted date”
– Department Hierarchy
 Report by Division, by College, by Department
– Can select by one and report at lower level
5
CSU Data Warehouse
Home Page
6
Data Warehouse
OVERVIEW
 The Finance data warehouse includes five dashboards:
 FIRMS – GAAP
 Manage My Budget
 Management Reporting
 Operations
CMO
and Accounting
 Sponsored
Programs
Team
7
Data Warehouse
8
Data Warehouse
OVERVIEW
• Ledger Reporting
• Organization
• Actual Trial Balance
• Projects
• Cash
Fund Balance
CMO ••and
Accounting
Actual Transactions
• Budget Transactions
• Open PO’s
• PO Transactions
• Open Reqs
• Req Transactions
Team
9
Data Warehouse
OVERVIEW
10
Organization Page – 3 Columns
“FILTERS”
11
“Column Selectors”
12
Operations Dashboard –
13
“Views”
14
15
Drill to transactions
16
Drill to pivot
17
Download and Print
 Download to Excel
 Download to PowerPoint
 Download to Excel 2000
 Download to Data
 Download to HTML
 Print to PDF
 Print to HTML
18
Download
19
Print
20
Page Options
 Save Current Selection
– Save with user supplied name
 Apply Saved Selection
– Choose a saved selection
 Clear Selection
21
Page Options
22
Review Terminology
 Dashboards
 Pages
 Filters
 Column Selectors
 Views
 Drills
 Print Options
 Download Options
 Page Options
23
Data Warehouse
24
Data Warehouse
Accounting Lines Feed into Campus
Actuals Detail Table
Data Warehouse
• Transaction Detail
Voucher
Acct Lines
CSU Acct
Lines
AR Acct
Lines
Billing Acct
Lines
HR Acct
Lines
SF
Accounting
Year End
Obligation
Manual
Journals
25
Hierarchy
 SCO Fund -> CSU Fund -> PS Fund
 Account Type -> Account Category ->FIRMS
Object Code -> PS Account
 Dept Level 1 –> Dept Level 2 -> Dept Level 3 ->
Dept Level -> 4 Dept Level 5 -> Department
26
Data Warehouse
FIRMS - GAAP
GAAP Summary
GAAP Actuals
FIRMS Summary
27
Data Warehouse
MANAGE MY BUDGET
Single Value Reports
Department, Fund, Program, Class & Project
Multiple Value Reports
Organization
Purchasing
Open PO
Open Reqs
28
Data Warehouse
MANAGEMENT REPORTING
 Fund Attribute Reporting
 Actuals by Month
 Board Summary
 Performance Report
29
Data Warehouse
OPERATIONS
 Operation Pages
 Ledger Reporting
 Organization
 Actuals Trial Balance
 Projects
 Cash
 Fund
CMO
andBalance
Accounting Team
 Transactions: Actuals, Budget, PO & Reqs
 Open PO and Open Reqs
 Unlike the Manage My Budget dashboard, the Operations
dashboard is not limited to Revenue and Expense.
30
Data Warehouse
OPERATIONS
 There are multiple Transactions page that display transaction
activity based on the selected report filters.
 Actuals
 Budget
 PO
CMO
and Accounting
 Reqs
Team
31
Data Warehouse
OPERATIONS
 Open POs & Requisitions
 Open Purchase Orders (Column Selectors)
 Additional Report Layouts
32
Open PO Page
33
Fund Balance Page
34
Project Page
35
Ledger Reporting - Page
36
CSU Data Warehouse
Home Page
37
Resources
 CSU Training Materials
 https://csyou.calstate.edu/Divisions-Orgs/busfin/it/BI-DW/CFSDW/Pages/BI-DW-SupportingDocuments.aspx
38
Updates and Things to
Come
 OBIEE 11g updates to tool and look and feel
 CHRS DW – July 2014
39
Contact Info
 Cheryl Kwiatkowski
 562-951-4270
 Sherry Pickering
 510-885-7363
40
Cash, Investments & Banking
CSU 101 January 2014
San Francisco
Kelly Cox
Associate Director of Accounting
Office of the Chancellor
Lorlie Leetham
Assistant Vice President,
Fiscal Services & Aux Reporting
Cal Poly San Luis Obispo
Cash, Investments & Banking
From the Chancellor’s Office
Kelly Cox
Associate Director of Accounting
2
Agenda
• Agenda
– Bank of CSU Overview
– CSU Investments
– Daily Cash Positioning
– Bank of CSU online & Statements
– Cash Posting Orders (CPO) Process
– Consolidated Investment Earnings
– The Team
3
Bank of CSU Overview
BANK OF CSU Overview
– 273
– 412
– $5.2B
– $3.7B
– 730K
– 632K
4
Investments
SWIFT (Systemwide Investment Funds – Trust)
• Objectives—In Order of Priority
1) Safety of Principal
2) Liquidity
3) Earnings / Return
• Background



Established in July 2007
Invests in securities allowed by State government
code
Investments further guided by the CSU SWIFT
Investment Policy
5
Investments
SWIFT
• Roles
 Custody Bank - US Bank
 Hold assets in safekeeping
 Manage deposits to and redemptions from
SWIFT
 Collect interest income from assets
 Arrange settlement of buys and sells
 Report on assets
6
Investments
SWIFT
• Roles
 Investment Managers
– US Bancorp Asset Management
– Wells Capital Management
 Manage Investments—Buy/Sell decisions
– per Investment Policy
– per ongoing communication with CSU
 Contributions/Redemptions split 50/50
7
Investments
SWIFT
• Roles
–Financing and Treasury - Chancellor’s Office
• Review Investment Managers’ performance
• Review SWIFT portfolio alignment against
Investment Policy
• Performance Reporting
 Quarterly SWIFT Investment Reports
 Annual Investment Report to Board of Trustees
8
Investments
SWIFT
• Size and Performance
–
–
–
–
$2.5 Billion as of June 30, 2013
$3.0 Billion as of September 30, 2013
0.40% return -12 months ended June 30, 2013
0.42% return -12 months ended September 30, 2013
9
Investments
SWIFT
• Portfolio Characteristics – September 30, 2013
– Liquidity
• 10% of portfolio matures within 3 months
– Quality / Safety
• 68% of securities are rated at least AA/Aa2 or A1+/P-1
• 54% invested in cash, U.S. Government or U.S.
Agency securities
• 39% invested in high – grade corporate securities
10
Investments
SMIF
• Size and Performance
– $344 Million as of September 30, 2013
– 0.27% return -12 months ended September 30, 2013
11
Investment Earnings
ACCOUNTING FOR INVESTMENT EARNINGS
• Investment Earnings are allocated to the SWIFT
campus accounts
 Allocated on quarterly basis
 Campus records allocation in Pooled Investment
Fund (CSU Fund 541) based on the CPO instructions
 Income is allocated internally within campus funds
according to that campus’ allocation policy
 Net Income in the Pooled Investment Fund is zero at
end of fiscal year
• “no fund balance”
 GAAP entry will be made to record Q4 earnings and
classify appropriately
12
Investment Earnings
• Campus investment earnings allocation are net
of charges
 Allowable Charges in the Pooled Investment Fund
(CSU Fund 541)
• Wells Fargo Bank charges
• Investment Services
• Chancellor’s Office Indirect support
13
Investment Earnings
• Consolidated Distribution of Earnings
– Includes the earnings from SWIFT and SMIF
• Quarterly interest distributions
–
–
–
–
1St Quarter = July, August & September
2nd Quarter = October, November & December
3rd Quarter = January, February & March
4th Quarter = April, May & June
• Distribution is made on or about the 20th of the
month following the quarter end.
14
Banking
Banking
 The campus’ cash management is centralized by
using one bank
 Wells Fargo Bank (WFB)
 The surplus cash at the bank is invested
 Systemwide Investment Fund – Trust (SWIFT)
 Campuses benefit from the availability of better
banking and investment services
 Lower Fees
 Safety: Wells Fargo: Aa3/AA- credit rating
 Consistent reporting & service across all campuses
15
Banking
WELLS FARGO BANK
Each Campus has been assigned 3 WFB accounts
 Deposit account
• Checks, Currency, Coin
• Wires
• ACH
 Electronic Disbursement account
• Wires
• ACH
 Paper Disbursement account
• Checks
16
Banking
WELLS FARGO BANK
 Deposit Account
 A Campus may create sub-accounts to facilitate
reporting and reconciliation
 Campuses deposit currency and coin at local
WFB Cash Vaults
 Campuses are encouraged to use ACH debit
blocks to restrict unauthorized account access
17
Banking
WELLS FARGO BANK
•
Disbursement Accounts
 Electronic
•
•
Wires
ACH (Automated Clearing House)
 Paper
•
•
•
•
•
Positive Pay File
Controlled Disbursement
Perfect Presentment
Full Account Reconcilement
Image Retrieval
18
Banking
CONSOLIDATION TO THE CONCENTRATION ACCOUNT
Bakersfield
Channel Islands
Chico
Dominguez Hills
East Bay
Fresno
Fullerton
Humboldt
Long Beach
Los Angeles
Maritime
Monterey Bay
Northridge
Pomona
Sacramento
San Bernardino
San Diego
San Francisco
San Jose
San Luis Obispo
San Marcos
Sonoma
Stanislaus
Systemwide
CSURMA
Master Depository Account
XXXX-XXXXXXX
ZBA
Bakersfield
Channel Islands
Chico
Dominguez Hills
East Bay
Fresno
Fullerton
Humboldt
Long Beach
Los Angeles
Maritime
Monterey Bay
Northridge
Pomona
Sacramento
San Bernardino
San Diego
San Francisco
San Jose
San Luis Obispo
San Marcos
Sonoma
Stanislaus
Systemwide
CSURMA
Master ACH Disbursement Account
XXXX-XXXXXXX
ZBA
Bakersfield
Channel Islands
Chico
Dominguez Hills
East Bay
Fresno
Fullerton
Humboldt
Long Beach
Los Angeles
Maritime
Monterey Bay
Northridge
Pomona
Sacramento
San Bernardino
San Diego
San Francisco
San Jose
San Luis Obispo
San Marcos
Sonoma
Stanislaus
Systemwide
CSURMA
Master Paper Disbursement Account
XXXX-XXXXXXX
ZBA
Concentration Account
XXXX-XXXXXXX
19
Banking
CASH POSITIONING

Calculation of Surplus or Shortage of available
money






Wells Fargo Bank
 Prior day closing balance
 Intraday check presentment
Net systemwide cash needs
Shortage
Redemption from US Bank
Surplus
Investment to US Bank
Daily communication Treasury Operations – US
Bank
Target balance should provide safety cushion
while maximizing invested funds for the CSU
20
Banking
OUR CASH MANAGEMENT ROLES
• Cash Management at the Campus
 Campus Cash Management Agents
• Depository Agent
• Disbursement Agent
• Cash Management at the CO (Treasury Ops.)




Management of banking operations
Daily cash positioning
Calculating quarterly SWIFT earnings to campuses
Forecasting short term & long term cash requirements
21
Cash Posting Orders
(CPO)
CASH POSTING ORDER (CPO)
• Mechanism to move SWIFT dollars between
campuses and the CO
• Examples:
–
–
–
–
–
Redemption/Investment in SWIFT (Cash Positioning)
Charge for a product or service
Reimbursement of expenditures
Systemwide Allocation Transfer (SWAT)
Request for Cash Transfer Order (RCTO)
22
Cash Posting Orders
(CPO)
Checks
23
Online and Statements
BANK OF CSU STATEMENT
• Campus WFB Balance and SWIFT Activity
 For WFB Reconciliation
• The WFB Statement is used for transactions
reconciliation
• The Bank of CSU is used for balance verification
 For SWIFT Reconciliation
• The Bank of CSU statement is used for both
transaction and balance verification.
 Distribution
• Campuses receive Bank of CSU statements by the
5th business day of the following month
24
BANK OF CSU STATEMENT
Campus SWIFT Balance
 CSU Bank Statements
 CPOs
 ADNOATs
 Allocation Orders
 SWATs
 SWIFT Earnings Report
25
Bank of CSU Online
26
Bank of CSU Online
27
The Team
The Teams
28
The Team
Treasury Operations www.calstate.edu/FT
 Robert Eaton, Senior Director, Financing and Treasury
([email protected])
 Colleen Zenger, Senior Financial Manager
([email protected])
– Investment Management and Reporting
– Cash Management/Banking program administration
– Pooled investment earnings distribution
 Lisa Tran, Assistant Manager ([email protected])
– Investment Operations
 Open position
– Banking Operations
Financing and Treasury General Phone Number: (562) 951-4570
29
The Team
Financial Services - Accounting Team
www.calstate.edu/acct/
 Kelly Cox, Associate Director, Financial Services Accounting
([email protected])
 Andre Eubanks, General Accounting Manager
([email protected])
– Primary Campus Contact
– CPO Administrator
– Bank of CSU Accounting Responsibilities
 June Cacho, Trust Fund Accountant ([email protected])
– Systemwide General Fund and Trust Fund Responsibilities
 Terri Porter, Assist Trust Fund Accountant ([email protected])
– CPO Processing
30
Cash, Investments & Banking a Campus Perspective
Lorlie Leetham
Assistant Vice President,
Fiscal Services & Aux Reporting
31
Agenda
Agenda
 General overview
 Wells Fargo CEO
 Cashiering Office, cash and banking
 Accounts Payable and payment processing
 Student Financials, receipts and payments
 Bank reconciliation – not your mama’s bank
account!
 Campus investment distribution – IDA
 Summary
32
Campus overview
Centralized banking and investments
 Campus does not need dedicated cash or
investment manager
 Exceptions: auxiliaries for endowments, other special
cases
 Sweep handles move of cash to SWIFT and back
 Campus cash is fully invested
 Campus does need to review cash balances,
understand cash flow, investment balance trends
33
Wells Fargo CEO portal
Wells Fargo CEO
• CEO stands for Commercial Electronic Office
• On-line web tool for bank account
administration, transactions and reporting
• Self-Administration for controlling access and
ensuring segregation of duties
34
Wells Fargo CEO
 Campus designated administrators:
 Create and disable users
 Assign and adjust product access using secure
tokens and dual approval
 Set dollar limits for wire transfers, reset passwords,
and more
 Event messaging for critical transaction information
35
Wells Fargo CEO
• CEO provides specific access and control over:
–
–
–
–
–
–
–
ACH deletes and reversals, fraud filters, or inquiry
Cash Vault
Event Messaging
Image Positive Pay
Statements and Notices
Treasury Information Reporting
Wire Transfers
36
Cashiering Office
Campus Cashiering Office:
 Previous day composite report or intra-day
report for daily reconciliation process
 Critical due to multiple system feeds, EFT activity
 Resolve discrepancies quickly
 Search images function – very useful!
 Cash Vault - Place cash orders to replenish
petty cash or for change funds
37
Cashiering Office
Cashiering Office and campus cash:
 Cashiering functions have to be authorized by
campus CFO, or designee
 Satellite cashiering
 Oversight responsibility retained centrally
 Security in custody and transfer is important
 Transfer receipts or logs used
38
Cashiering Office
Cashiering Office and campus cash:
 Example: Parking meter coin
 From parking meter to deposit bags in cashiering
without being touched.
 Transported to bank by armed courier
 Counted at bank
 On-campus deposits transmitted with two
people in locked bags.
 Over $500, must be brought to cashiers daily
 Campus policy
 Over $2500, police escort required
 CSU policy.
39
Accounts Payable Office
Accounts Payable and payment processing:
At Cal Poly – medium sized campus:




$140 million a year in AP disbursements
Check Cycle twice a week
Two different cycles: Regular and EFT
Almost all EFT disbursements through AP are
employees
 Exception: U.S. Bank pre-payments (Pro-card)
 Some campuses may have setup EFT for regular
vendors
40
Accounts Payable Office and payment
processing:
 Non-payroll EFT for employees:
 Staff expense reimbursements, travel advances, travel
claim reimbursements
 Employee sign up is through the campus portal
 Campus mod
 Payment hits bank account quickly
 EFT payment cycle process is more efficient than the
regular check cycle
 Employees love it –
 No check to pick up or deposit
 Email notification generated
41
Accounts Payable Office, positive pay file:
 Regular Paycycle
 Includes CSU Positive Payment step
 Generates file for transmission to Wells Fargo
 EFT Paycycle includes transmission of an EFT
file to Wells Fargo
 No positive pay file step needed
 Positive pay file advises the bank of specific
pieces of check information
42
Accounts Payable Office, positive pay file:
 Discrepancies on file cause exception when
check is presented at bank for payment.
 Bank notifies campus of exceptions daily
 Campus personnel review exceptions in CEO
and determine whether to reject or accept.
 Cancelled check/stop payment information
also transmitted on positive pay file
43
Accounts Payable Office, payments and
banking
 CEO sends email notifications and alerts to campus
banking personnel
 Positive pay file notification after paycycle
completes and bank receives file
 Daily transaction totals email
 Exception alert email, with rejects and stops
44
banking:
 In CEO, electronic payments can be made via wire
transfer.
 Security for wire initiation and approval segregated
 Payment information recorded in PeopleSoft AP
separately.
 CEO direct wire not integrated into the PS AP module.
 Wires useful for foreign vendor payments such as
international travel
 Notification is sent to the CMO for electronic
disbursements in excess of $200k
45
banking:
Wires transfers
 At Cal Poly, we wire cash weekly to auxiliary for
student dining payments
 Free form or wire templates vary by domestic or
international
 Limits set by administrator, with dual approval
required to change
 Email notifications sent to all administrators
46
Accounts Payable Office and CEO tools:
 Check status, to see if a check has cleared
 Wire reports with date ranges, other criteria
 Exception reports and review
 Daily transaction reports
 On-line EFT reversal.
47
Student Financial Services
Student Financials and payments:
 Majority of payments received are from student
activity
 Disbursements to students are done through ACH
and AP checks
 Electronic payments-in account for 88% of
transactions, 75% of those are ACH (echeck)
 ACH payments-out (Direct Deposit) to students
account for 80% of transactions
 Notification is sent to the CMO for electronic
receipts or disbursements in excess of $200k
48
The Bank Reconciliation
Campus Bank Reconciliation – “Not your
momma’s bank recon”
 Complex due to volume of activity and varied types of
inflows and outflows
 27 plus distinct types of feeds or inflows, thousands of
transactions
 10 plus distinct types of disbursements or outflows,
thousands of transactions
 Cal Poly bank reconciliation checklist currently has 46
major steps, many with multiple sub-steps
49
Campus Bank Reconciliation – “Not your
momma’s bank recon”
• Separate accounts for different types of transactions
facilitates reconciliation
• Cal Poly has twelve sub-accounts, in addition to the
three primary WFB accounts
• Debit blocks are also utilized to restrict unauthorized
access
• Bank reconciliation can take up to one full week to
complete
50
Campus Bank Reconciliation
 Begins with Wells Fargo bank file load, for checks only.
 Rest of activity is reconciled using PS queries,
spreadsheets, WF bank statements, Bank of CSU info
 12 different PeopleSoft queries used in the bank recon
process, plus ad hoc when needed
 Reconciling factors related to receipts are typically the
most difficult to resolve
 Manual journal entries can also wreak havoc
51
52
Campus Investments
Campus role in investment process
 Operating bank account funded according to
checks presented that day for payment
 Movement between investment and operating
account managed at systemwide level
 Campus accounting personnel manage
investment distribution according to campus
policy
 CSU developed mod in PS allows for flexibility
in distributing investment earnings
53
Campus Investments
Campus investment distribution
 Campus SWIFT earnings distributed via CPO
 Posted to CSU Fund 541, Pooled Investment
Fund
 WF bank charges, investment fees, and CO
CMO costs paid with earnings
 Net amount available for distribution by
campus
54
Campus Investments
Campus investment distribution
 Campus earnings distributed and spent
according to campus policy, with some
caveats:
 Fund 485 earnings must be recorded in unique
FNAT in 485
 Certain funds must receive benefit of earnings, by
CSU or other policy
 Other
55
Campus Investments
Investment Distribution Allocation module
 Calculates average daily cash balance in a
fund
 Allows for distribution of earnings to the fund
that earned them, or to a beneficiary fund.
 Campus administrative charge can be taken
off the top and the net earnings distributed.
 Endowments can designate their earnings to a
particular scholarship fund.
56
Campus Investments
 Earnings available for spending can be limited
 creation of excess/minus reserve
 Module uses industry standard for Average
Daily Balance (ADB).
 Example, endowment fund cash balance used
for ADB calculation
 receives investment earnings revenue
 transfers earnings out to scholarship fund
 Scholarship fund records transfer in
57
Campus Investments
 IDA generates file for the accounting entries in
order to record the interest distribution.
 Can be run without posting to test and look at
the results
 Ensure all new funds are setup and that setup is
correct
 Ensure funds are inactivated timely
 Allows for considerable flexibility at the
campus level
58
Investment Distribution
59
Investment Distribution
60
Campus Specific:
Investment Report
YTD Investable Trust Cash
M onth:
Average Daily
Cash Balance
4th Quarter (April, May, June) Distribution
SWIFT
M onthly SM IF M onthly SWIFT Earnings
Rate of Return
Earnings
Earnings
Adj
Total
Cam pus
CSU Fund Fund
Fund Description
Jul-12
159,465,152
0.0819%
6,518.52
124,129.25
-
130,647.77
403
Aug-12
163,646,143
0.0803%
6,400.42
124,941.77
-
131,342.19
431
Sep-12
189,317,623
0.0762%
6,904.67
137,403.97
-
144,308.64
433
MJ%
Campus Student Loans Trust
Oct-12
175,278,726
0.0823%
6,318.22
137,905.85
-
144,224.07
435
NK%
Miscellaneous Financial Aid - Unrestricted
Nov-12
167,447,372
0.0859%
6,243.84
137,558.24
-
143,802.08
441
MK%
Extended Education
MB001
Perkins Loans
MH% & MI% Campus Scholarships and Grants Trust
Avg Daily
Cash Balance
4th Qtr
Earnings
Distribution
YTD Earnings
Distribution
2,085,961
3,080.85
14,000.27
3,330,219
4,918.55
33,839.94
1,899,820
2,805.93
15,196.90
35,404
52.29
277.45
6,198,410
9,154.71
38,411.66
Dec-12
180,699,924
0.0783%
6,644.77
134,779.73
-
141,424.50
452
ML%
Facility Revenue Fund-Health Services Fees
1,717,809
2,537.11
13,054.25
Jan-13
195,650,115
0.0796%
5,416.67
150,329.95
-
155,746.62
461
MN%
Associated Student Body Trust
5,480,712
8,094.71
40,567.86
Feb-13
193,271,177
0.0678%
4,983.10
126,687.51
(551.29)
131,119.32
463
MO%
Instructionally Related Activities Trust
3,881,330
5,732.51
31,202.54
Mar-13
204,514,475
0.0787%
5,462.56
155,459.04
-
160,921.60
466
MQ%
Endowment Trust
3,597,216
5,312.89
28,365.25
Apr-13
196,872,300
0.0723%
5,513.51
136,811.37
-
142,324.88
471
MS%
Parking Revenue Fund-Fines and Forfeitures
4,225
6.24
60.46
May-13
187,973,659
0.0548%
5,370.13
97,731.25
-
103,101.38
472
MT001
11,060,392
16,335.59
81,169.11
Jun-13
172,011,028
0.0417%
5,337.15
66,438.21
-
71,775.36
481
485
Total:
YTD Annualized Rate of Return:
0.8798%
0.8798%
71,113.57
1,530,176.13
(551.29) 1,600,738.41
MY%
Parking Revenue Fund-Parking Fees
SL% & MR% CSU Operating Fund
843,105
1,245.22
5,796.03
65,642,671
96,950.61
443,859.73
24,234,810
35,793.48
211,071.19
2,327,257
3,437.23
23,845.17
491
MW%
Special Projects Fund-Special Projects
496
MX%
Miscellaneous Trust
531
NC%
Housing-Operations and Revenue
38,256,281
56,502.42
295,640.92
21,459,087
31,693.89
164,136.82
2,762,798
4,080.50
21,575.97
194,817,508
287,734.73
1,462,071.52
534
NH%
Campus Union-Operations and Revenue
542
NG%
Capital Project Management
541
MZ200
Pooled Investment Fund
Total Investment Earnings, Less:
Wells Fargo Bank Charges
CO Cash Management
Investment Services' Charges
Total 12-13 Net Investment Earnings
41,160.90
31,758.01
65,747.98
1,462,071.52
Total 1st Quarter (Jul, Aug, Sep) Distributio
(370,198.60)
Total 2nd Quarter (Oct, Nov, Dec) Distributi
(394,050.65)
Total 3rd Quarter (Jan, Feb, Mar) Distributi
(410,087.54)
Total 4th Quarter (Apr, May, Jun) Distribution
287,734.73
61
Summary
Campus cash, banking and investments
• Cash and investments managed centrally
– Campuses need to monitor cash overall and at the
fund level, know their trends
• Wells Fargo CEO streamlines bank account
administration, access and reporting
• Bank account reconciliation process can be
complex
• Earnings distribution according to campus policy
– PeopleSoft IDA module provides flexibility to meet
campus needs
62
Cash Investments and
Banking
• Questions?
63
Contact Info
• Kelly Cox
• (562) 951-4611
• Lorlie Leetham
• (805)756-5421
64
Accounting
CSU 101 January 26-29, 2014
San Francisco
Kelly Cox
Associate Director, Financial Services
Sherry Pickering
Director, Fiscal Services
CSU, East Bay
Reporting Hierarchy
GAAP
Legal
Campus
2
Chartfields
Campus
Legal
GAAP
Fund = Campus Fund
Fund = Campus Fund
Fund = Net Asset Category
DeptID = Campus Dept
DeptID = Not applicable
Account = Campus Account
Account = Natural Classification
Program = Campus Program
Program = Derived NACUBO
Program = Derived Prog Group
Project = Campus Project
Project = Not applicable
Class = Campus Class
Class = Derived CSU Fund
3
Learning Objective
• Why GAAP Reporting?
• Reporting Package / Financial Statements
• Understanding GAAP Chartfields
• Where and How do the information get to GAAP?
• Hot Topics
4
Why GAAP?
• Campuses maintain their financial records on the
legal basis of accounting required by the State of
California. The legal basis of accounting is not
consistent with U.S. generally accepted
accounting principles (GAAP).
• AB (Assembly Bill) 2613 requires audited
financial statements be presented in accordance
with GAAP.
5
September 2005
affect CSU:
Budget Act
Corporations Code
Elections Code
Fish and Game Code
Government Code
Labor Code
Penal Code
Vehicle Code
Civil Code
Commercial Code
Education Code
Evidence Code
Financial Code
Insurance Code
Probate Code
Water Code
DONOHOE ACT OF 1960
CREATES
(EDUCATION CODE)
Employees
Article XX, §3, §20, §23
CALIFORNIA CODE OF
REGULATIONS
TITLE 5. Education
RESOLUTIONS AND
ORDERS
operations:
STATUTES AND
RESOLUTIONS AND
RULES
CHANCELLOR
OF THE CSU
EXECUTIVE ORDERS,
DELEGATIONS OF
AUTHORITY, AND
POLICIES
State Legislature
ARTICLE IV
Our Operating
“Rules”
CAMPUS
PRESIDENT
6
CSU Reporting Package
• Statements
• Three basic financial statements
• Footnotes
• Disclosure for consolidated financial statements
TM1 / YES (Year End System)
7
Financial Statements
Provides audited financial information to users of such information for making economic
decisions; demonstrates accountability and stewardship of management; and
evaluates university performance.
• STATEMENT OF NET POSITION
This statement reports the university’s assets, liabilities and equity (net position) similar to the
traditional balance sheet. Tells story of university’s position at a point in time.
• STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
This statement is the operating statement of the university. It is used to show how resources are
used.
• STATEMENT OF CASH FLOWS
This statement classifies cash activities into four categories – operating activities, noncapital
financing activities, capital financing activities, and investing activities. It illustrates the
strength of university’s cash position.
• NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial statements provide additional information that is essential to the full
understanding of the financial statements.
8
YES / TM1
• Year End System (YES) is a separate application using the TM1 tool
to facilitate the systemwide consolidation and issuance of published
audited financial statements.
• GAAP financial statement data is collected, inclusive of footnote
disclosures, in the format agreed upon annually with the external
auditors.
• Data from PSoft GAAP ledger are entered manually by each campus
and the Chancellor’s Office.
Reports from PSoft
GAAP Ledger
Entered into YES
Reporting Package
Published Financial
Statements
9
Statement of Net Position
Assets and Liabilities
are based on the GAAP
natural classification
attribute on the
PeopleSoft Account
Chartfield
Deferred Outflows and
Inflows of Resources
are new this year!
Net Position fund
balances are based on
the GAAP net position
category attribute on
the PeopleSoft Fund
Code Chartfield
10
Statement of Revenues, Expenses
and Changes in Net Position
Revenues are
based on the
GAAP natural
classification
attribute on the
PeopleSoft
Account
Chartfield
Expenses are
based on the
NACUBO
program group
on the
NACUBO
program
derivation
11
Cash Flows
12
Footnotes
13
GAAP (CAFR) at
State
14
GAAP Attributes
15
Transaction Flow
I’m on every
transaction –
along with
some other
Chart Fields
– They need
me!
16
Transaction Types recorded in
each Business Unit
You have to
choose the correct
value on the
original transaction
or LOTS of things
can go wrong…I
don’t like it.
17
Reporting Generated from
each Business Unit
I use the State
Controller’s fund
value and the CSU
fund value and the
Net Asset Category
for all this reporting –
I know a lot!
18
GAAP Manual
https://csyou.calstate.edu/Divisions-Orgs/bus-fin/Financial-Services/sfsr/
19
Hot Topics
• Systemwide issuance by October 15
• Preparation schedule compressed
• Auxiliary Audits must complete earlier by 9/20
• GAAP Edit
• Adds a dimension to routine entries
• Tuition Discounting
• Agency Transaction
• GASB 60 Ongoing review of Contracts for
Service Concession Agreements
20
Reporting Hierarchy
GAAP
Legal
Campus
21
Chartfields
Campus
Legal
GAAP
Fund = Campus Fund
Fund = Campus Fund
22
Learning Objective
• Campus Legal Reporting Requirements
• SCO
• How the CSU meets the state reporting
requirements
• Relationship between the legal and GAAP data
23
State Controller’s
Office (SCO)
• Budgetary/Legal Reporting
• Transaction Processing
• SCO GAAP Reporting – Comprehensive Annual
Financial Report (CAFR)
24
Agency Recon.
Report [Tab Run]
25
SAM99
26
Hard Copy Reports
27
Legal Manual
http://www.calstate.edu/sfsr/Y-E-R_Instructions/2010-2011/LegalManual/index.shtml
28
Legal Fund Type =
G
29
Legal Fund Type <>
G
30
FIRMS
F
I
R
M
S
31
CO Legal Hard
Copy Reports +
• Submitted through SharePoint
• Identical set of reports sent to the SCO
• FIRMS Data Integrity Certification Form
32
Other Required
Data Submissions
http://www.dof.ca.gov/budget/historical/2011-12/salaries_and_wages/view.php
33
Reporting
Requirements
• Is the data the same for Legal and GAAP?
34
Legal vs GAAP
Legal
GAAP
Components:
Components:
•Budget
•Actuals - Dollars & FTE
•Actuals - Dollars
•Encumbrances
Attribute Level : State Fund
Attribute Level : Net Assets
Basis: Modified Accrual
Basis: Full Accrual
Audience: State
Audience: External
35
Legal vs GAAP
• Permanent Differences
• Temporary Accruals
36
Legal vs. GAAP
• Designated Fund Balance
• Restricted Fund Equity
37
SCO GAAP
Reporting
• State CAFR is reported on a GAAP basis
• Governmental
• Fund Financial Statements
• Campus Data Provided
• GAAP Reporting Packages
• GAAP FIRMS Submission
• Supplemental Schedules
38
What is the role of
Accounting?
GAAP
Legal
Campus
39
Chartfields
Campus
Legal
GAAP
Fund = Campus Fund
Fund = Campus Fund
40
Learning Objective
• Discover YOUR importance in the
Accounting Equation
• Understand the CSU and your campus
Chart of Accounts
• Understand the Importance of Campus Reporting
• Reconciling – Why it Matters
• Learn the current Hot Topics
41
Why YOU Matter
• Many roles are represented in this room and in
Financial and Support Services; including …
Accounting Staff
Accounts Payable Technician
Auxiliary Accounting Staff
Budget Staff
Buyer
Cashier
Collector
Student Financial Services
Manager
Payroll Technician
Receiving Clerk
Supervisor
42
You touch many of the
Accounting Transactions
• The items you process/review make up the Campus accounting
records that feed the Legal and GAAP reporting required of the CSU.
Accounting Staff - Journal Entries,
Reconciling, Financial Reporting
AP Techs - Invoices, Direct
Payments, Travel Claims
Auxiliary Accounting Staff - Grants
and Student Fees
Budget Staff - Baseline Budget,
Transfers, Special Allocations,
Position Management and Labor
Cost Distribution
Buyers - Requisitions, Contracts
Cashiers - Student Fees, 3rd Party
Invoices
Collectors - Outstanding Fees and
Invoices
Student Financial Services –
Student Accounts, Loans and
State Awards
Managers - Support and Provide
Necessary Resources
Payroll Techs - Absence Reports
and Labor Cost Distribution
Receiving Clerks – Receipt and
Delivery of Goods, Asset ID
Supervisors - Verification and
Review
43
Transaction Flow
Do you see
your
transactions
here?
44
Transaction Types
recorded by Unit
You have to
choose the correct
value on the
original transaction
or LOTS of things
can go wrong…I
don’t like it.
45
Campus
ChartField Review
• Fund – Tied to a specific purpose (Trial Balance)
• DeptID – Campus Organization (Same in HR)
• Account – Type of Expenditure
• Program – On Going Revenue & Expense
• Project – Time specific Revenue & Expense
• Class – Dept level information Rev & Expense
46
Required Campus
Chartfields
• Attributes/Coding needs to be correct to report
correctly to the Campus, CO, SCO and on GAAP
• Fund
• Lowest Level to generate a Trial Balance
• Department ID
• Represents the Campus Organization Structure
• Important to derive correct NACUBO Program
Code
• Account
• Classifies Assets, Liabilities, Fund Equities,
Revenues and Expenses
47
A Few Questions
• What is the largest expense for the CSU?
• Where do the next largest expense items come
from for the CSU?
• Why does correct recording of transactions
matter?
• Who cares?
• How do they know?
• When do they know?
48
Campus Reporting
• CSU Finance Data Warehouse
• CFS Delivered Reports
• Queries
• Ad Hoc Reporting needs.
49
Campus Reporting
• Campus End User Financial Reporting is based
on the Organizational Structure of the Campus
represented by the Department (DeptID)
50
Management
Considerations
• Cash vs Budget
• Fiduciary Funds vs Governmental Funds
• Spending Authority vs Delegation of Authority
• Program Code – Effects Funding
51
Management
Considerations
• Good data produces good reporting
• Is the transaction correct in all of its dimensions?
• Abnormal balances
• Legal Edit
• Campus Combo Edits
52
Reconciliation is
our Friend
• Bank Reconciliation
• Negative Cash
•
•
•
•
•
•
•
HR Pay Tape to LCD
Fee Reconciliations
SAM99 Reconciliation
AM Reconciliation
AR Aging and Collections Follow Up
Open Purchase Order Review
Outstanding Check Lists and Escheat
53
Reconciliation is
our Friend
• Sample Check List
Reconciliations Check List
Description
FY 2011-2012
Preparer
Reviewer
Note: Some columns may be hidden
Reconciliation Month - Note 1
Jul
Aug
Sept
Oct
Monthly
SAM99 - Campus to SCO
Jennifer
LaVerne
8/30/11
Fund Balance Clearing - Campus to CO
WFB Bank Reconciliation
Uncleared Collections
Open Item / Revolving Fund
Accounts Receivable -SF (Student Financials)
Accounts Receivable - AR/BI
Gift Reconciliation - Advance to CMS
Asset Management to GL
Theo
Theo/Jennifer
Theo
Darnell/Hai
Robyn
Nicole
Theo
Nicole
8/26/11
8/29/11
8/11/11
8/1/11
8/12/11
8/15/11
8/11/11
8/3/11
Travel Advance Follow-Up
Reconciliation Check List
Darnell
AS & AP
Kendal
Kendal
Kendal
LaVerne
LaVerne
LaVerne
Kendal
LaVerne
Susan/
Kendal/
LaVerne
Kendal
9/14/11
FBC Rpt
until
Sep11
9/22/11
9/9/11
9/2/11
9/13/11
9/15/11
9/9/11
9/6/11
8/12/11
8/30/11
9/7/11
9/28/11
Hai
LaVerne
Robyn
Darnell
Darnell
LaVerne
LaVerne
LaVerne
Semester
Application Fees - Semi Annual
Student Registration Fees Fall due Jan/Spring
due June/Summer due Sep
CCE Fees - Open University - Sum/Fall/Spr
CCE Fees - Summer/Fall/Spring
Nov
Dec
Jan
10/11/11 11/21/11 12/12/11
10/10/11
10/26/11
10/12/11
10/3/11
10/12/11
10/13/11
10/12/11
10/14/11
11/9/11
11/18/11
11/9/11
11/1/11
11/9/11
11/10/11
11/14/11
11/14/11
12/12/11
12/15/11
12/12/11
12/1/11
12/14/11
12/9/11
12/12/11
12/2/11
10/3/11 11/2/11 12/2/11
10/28/11 11/28/11 12/22/11
10/28/11
9/12/11
9/12/11
NOTES
1) To be completed within one month. Months listed are ending dates for that particular reconciliation and it must be completed
within 30 days of the preceeding month. (e.g. October 2011 Bank Statement must be reconciled by November 30, 2011
54
Hot Topics
• 9.2 Upgrade
• Trust Fund Policy
• Legal Manual
55
Q&A
Questions?
56
Contact Info
 Kelly Cox
 562-951-4611
 Sherry Pickering
 510-885-7363
57
Budgets in the CSU
Budget
CSU 101 January 26-29, 2014
San Francisco
Debbie Brothwell
Deputy Vice President, Finance
CSU East Bay
(Retired)
Bradley Olin
System Budget Analyst
Summary
 State of California
– Revenues and Expenses
– Process & Calendar
 CSU
– Process & Calendar
– Allocation
 Campus
The Big Picture
California’s Revenues
Alcohol/Tobacco
0.95%
Estate/Gift
0.24%
Corporation
7.45%
Insurance
2.19%
Vehicle License
Fee & Gas Tax
9.74%
Sales & Use
28.04%
Personal Income
51.38%
Source: CA Department of Finance
California’s Expenses
Tax Relief
0.43%
Corrections & Natural Resources EPA
Rehabilitation
0.05%
2.21%
9.26%
Transportation
0.21%
Health & Human
Services
29.17%
Higher
Education
11.35%
Biz & Consumer
Svcs
0.67%
K-12
41.19%
Other*
5.46%
Higher Education
Student Aid
Commission
9.69%
University of
California
26.90%
Other
2.48%
Community
Colleges
36.53%
California State
University
24.39%
Source: CA Department of Finance
“Our job is the people.” – Doug Robinson, VP Student
Services, CSULB
CSU 2012-13 Operating Budget by GAAP Object
Expenditure Category
Operating
Expenses
(discretionary)
0.6%
Operating
Expenses (nondiscretionary)
14.0%
Financial Aid
14.4%
Salaries &
Benefits
$3,210
70.9%
CSU 2012-13 Operating Budget, Salaries
Management &
Supervisory
12.8%
Support Staff
33.5%
Student
Assistant, Temp
Help, & OT
3.1%
Executives
0.4%
Academic
Salaries
47.5%
Department
Chairs
2.7%
Total Operating Fund Salaries: $2.25B
Historical Patterns
Budget and Enrollment Trends
357,222
360,000
$4.00
350,000
$3.75
342,000
341,280
340,000
est.
340,302
$3.50
336,510
Target
331,353
330,000
$3.25
328,155
$2.97
320,000
$3.00
321,339
310,000
$2.68
$2.73
$2.68
$2.60
300,000
290,000
$2.75
$2.50
$2.33
$2.45
$2.25
$2.48
$2.25
$2.06
280,000
270,000
281,782
$2.00
$2.00
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
Full Time Equivalent Students (FTES), California Resident
CSU State Allocation (in billions)
$1.75
9
From whence does the
money flow?
Tuition Fees
Discount
(Revenue
Foregone),
$633M
13%
State
Appropriation
$2.3B
48%
Other Student
Fees
$136M
3%
Application &
Student Health
Fees
$107M
2%
Net Resident &
Nonresident
Tuition Fees
$1.64B
34%
Total Operating Revenue: $4.22B
Historical Patterns
100%
Gap Between State Appropriation and Tuition and Fees as a
Percentage of Funding Source has Narrowed
90%
80%
82%
79%
80%
72%
71%
70%
62%
64%
60%
55%
51%
52%
50%
49%
48%
45%
40%
38%
36%
30%
28%
29%
2005-06
2007-08
20%
20%
21%
18%
10%
0%
1998-99
2000-01
2002-03
Net Tuition and Fees
2009-10
2010-11
2011-12
State Funds
2012-13
2013-14
Marginal Cost Funding
Marginal Cost
Budget Cycle
CSU Support Budget
Cycle
Budget Calendar
Exec Council Review
Budget Advisory Com. Review
Statement of Priorities
Trustees Approve Budget
Governor's Budget Issued
Legislative Analyst Analysis
Preliminary Campus Allocations
Legislative Hearings & May Revise
Budget Signed
Jun Aug Sep Nov Jan Feb Apr May Jun
• • • • •
•
•
•
•
•
•
• •
•
CSU Web Site
Summary
 State of California Budget Calendar
–
–
–
–
–
Agency requests
Governor’s Budget
Legislative Analyst
May Revise
Final Budget
November
January
February
May
July
 CSU is a state agency – our request
– Trustees Support Budget Request
 http://calstate.edu/budget/fybudget/supportbudgets/
2013-2014 CSU Budget
CSU
System Budget
Support Budget Plan
So, what did we get?
 How much did we request?
CSU 2013-14 Budget Request
Mandatory Costs
$48,182,000
Graduation Initiative and Student Success
58,000,000
Compensation—3 Percent Increase Pool
86,259,000
5 Percent Enrollment Growth (State funds only)
85,925,000
Urgent Maintenance Needs
50,000,000
Information Technology Infrastructure Upgrade / Renewal
20,000,000
Instructional Equipment Replacement
23,000,000
Center for California Studies
Requested Priorities for State Funding
504,000
$371,870,000
2013/14 Governor’s Budget
http://www.ebudget.ca.gov/
23
2013-2014 Budget
Summary
Remember
Prop 30
First time the State of
California did not refer to
an enrollment target
obligation for the CSU
The CSU Allocates the 125M
What is your campus
share?
2013/14 CSU Campus Final Budget Allocation Totals
Tuition Fee
Revenue (before
Bakersfield
Channel Islands
Chico
Dominguez Hills
East Bay
Fresno
Fullerton
Humboldt
Long Beach
Los Angeles
Maritime Academy
Monterey Bay
Northridge
Pomona
Sacramento
San Bernardino
San Diego
San Francisco
San Jose
San Luis Obispo
San Marcos
Sonoma
Stanislaus
Campus Total
General Fund
Allocation
tuition fee
discounts)
$51,343,309
48,496,910
85,954,532
61,880,052
67,147,261
108,604,732
130,064,361
60,415,210
141,554,836
103,544,039
23,184,576
52,092,783
141,659,296
103,516,842
116,988,137
78,595,208
143,411,096
120,275,359
111,094,782
95,997,068
55,597,552
49,467,083
49,835,547
$2,000,720,571
$41,502,947
25,026,900
82,084,000
62,897,920
75,924,277
108,420,680
184,847,633
43,010,000
176,197,000
114,387,375
5,563,552
24,434,271
179,528,255
107,208,000
134,266,000
90,036,440
163,254,000
149,158,000
143,022,000
98,974,000
47,864,000
42,585,000
43,140,227
$2,143,332,477
Unadjusted
Other Fee
Revenue and
Reim.
2013/14 Gross
Budget
Allocation
$3,981,406
1,619,760
10,401,000
3,898,000
22,455,551
10,178,825
20,119,483
8,613,750
29,386,470
16,607,970
3,651,914
2,166,730
33,032,656
12,403,000
15,426,805
20,126,129
35,351,595
31,705,427
36,723,458
46,964,000
8,710,000
5,236,766
5,220,855
$383,981,550
$96,827,662
75,143,570
178,439,532
128,675,972
165,527,089
227,204,237
335,031,477
112,038,960
347,138,306
234,539,384
32,400,042
78,693,784
354,220,207
223,127,842
266,680,942
188,757,777
342,016,691
301,138,786
290,840,240
241,935,068
112,171,552
97,288,849
98,196,629
$4,528,034,598
% of Total
Budget
Allocation
2.14%
1.66%
3.94%
2.84%
3.66%
5.02%
7.40%
2.47%
7.67%
5.18%
0.72%
1.74%
7.82%
4.93%
5.89%
4.17%
7.55%
6.65%
6.42%
5.34%
2.48%
2.15%
2.17%
100%
% of GF
Allocation
2.57%
2.42%
4.30%
3.09%
3.36%
5.43%
6.50%
3.02%
7.08%
5.18%
1.16%
2.60%
7.08%
5.17%
5.85%
3.93%
7.17%
6.01%
5.55%
4.80%
2.78%
2.47%
2.49%
100%
Marginal Cost Funding
Let’s review
the marginal
cost formula
2013/14 Enrollment
Growth Funding
How Do Campuses
Budget?
Organizational View
Changing Times –
New Funding Model
Opportunities
Room for Innovation
 Allocation methodology
– Outcomes Adjustments (instead of per FTE)
– Base Funding
 Mandatory Costs
– Health (Affordable Care Act)
– Energy (Cap & Trade)
– New Space/Maintenance (Bonding)
 Recruitment/Retention of Talent
– “Other Benefits” in absence of compensation
CSU 6 Year Graduation
Rates, 2000-2006 Cohorts
Comparison Institutions
with no SUG
Campus
2013/14
Rutgers University (Newark, NJ)
$13,499
Illinois State University (Normal, IL)
$13,009
University of Connecticut (Storrs, CT)
$12,022
Wayne State University (Detroit, MI)
$12,014
University of Maryland, Baltimore County
$10,068
Comparison Average
$10,066
Arizona State University at Tempe
$10,002
Georgia State University at Atlanta
$9,928
George Mason University (Fairfax, VA)
$9,908
University of Colorado at Denver
$7,658
Cleveland State University
$9,448
University of Wisconsin at Milwaukee
$9,300
University of Texas at Arlington
$8,878
State University of New York at Albany
$9,230
North Carolina State University
$8,206
University of Nevada at Reno
$7,824
$4,973
What if we stopped
offering Tuition
Discounts…how
would we measure
up?
State University Grants
(Revenue Foregone)
SUG Awards Now Exceed $600 Million
1,600,000,000
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
$633,337,800
$474,749,000
600,000,000
400,000,000
$272,087,000
200,000,000
2007-08
2010-11
2013-14
What if?
5,000
$5,472
4,000
$3,750
Tuition
3,000
2,000
1,000
-
Tuition without SUG
What about Annual
Giving?
??
Enterprise Budgets
 Other CSU Funds – Campus specific budget
process
–
–
–
–
–
–
Housing (Ed. Code 89703/90000)
Parking (Ed. Code 89701)
Continuing Education (Ed. Code 89704)
Instructionally Related Activities (Ed. Code 89230)
Lottery (Gov’t Code 8880)
Misc. Trust (Ed. Code 89720)
Main Operating Fund
 CSU Operating Fund 485
 General Fund/Student Fee Revenue
– The primary purpose of the CSU Operating Fund
is to record revenues and expenditures for statesupported instruction.
 Used to record state tax revenue and student
fees.
IRA (Instructionally
Related Activities)
 Use of Funds
– Funding source are fees collected for the mandatory IRA Fee and or
revenue generated by the IRA program itself
– IRA funds are to be used solely for the support of instructionally related
activities as defined in Section 89230 of the Education Code and by CSU
System-wide policy. As a general rule, expenditure of IRA funds follows the
same principles and guidelines as required of CSU Operating Fund monies.
 Exception: Different Guidelines under Hospitality Policy
– If capital equipment is purchased whose use will not be restricted to IRA
programs/activities, IRA funds may be employed only in proportion to the
anticipated IRA use.
– Expenditure for awards that are the culmination of a group(s) or individual(s)
efforts through competition or as a normal part of program activities will be
allowed. Awards will normally be in the form of trophies, plaques, ribbons,
and other similar items, the value of which is primarily intangible and limited
to the recipient(s).
– Departments are allocated IRA Funds by an annual cash transfer
 CSU Fund 481
 Funding source
– Cash generated from the sale of California State
Lottery tickets, a portion of which is allocated to
CSU campuses
 Departments are allocated Lottery Funds by an
annual budget allocation
 For instructional or instructionally related
purposes only
 Limited term in nature
Housing
 CSU Fund 531
 Funding Source
– Revenues are generated from license fees paid
by dormitory residents and must be used
exclusively for the self-supporting housing
program
Parking
 CSU Fund 471–Parking Fines and Forfeitures
 CSU Fund 472 – Parking Fees
 Funding Source
– Parking revenue is generated from the sale of
parking permits and fines paid for citations
issued.
 Parking permit revenue must be used to maintain
parking lots and parking staff
 Citation income must be used for administration of
citations and alternate transportation.
Continuing Education
Revenue Fund (CERF)
 CSU Fund 441
 Funding Source
– These sources are generated by student fees for
enrollment in Continuing Education courses.
– Funds must be used for self-supporting
instruction in the Continuing Education program.
– CSU Fund 444 recently created to define CERF
Funds allocated to the Academic areas.
Campus Union
 CSU Fund 534
 Funding Source
– Revenues are generated from the mandatory
University Union fee.
– Exclusively for the self-supporting Campus
University Union facilities and related programs.
Capital Outlay
 Funding Source
– Two Sources:
 State tax revenues appropriated by the state
legislature.
 Proceeds from bond sales.
– Funding is allocated to the University as either:
 Minor Cap. (projects ≤ $600K)
 Major Cap. (projects > $600K).
– Funding restricted to specified const. projects.
Contract Information
Bradley Olin
System Budget Office
Email: [email protected]
Phone: (562) 951-4555
Auditing and Ethics in the CSU
CSU 101, January 26 – 29, 2014
San Francisco
Aysu Spruill
CSULB Director, Internal Auditing Services and
Campus Information Security Officer
CSU Audit Organization
• Board of Trustees
• Committee on Audit
• Office of the University Auditor
• Campus Internal Auditors
• External Auditor (KPMG)
2
Other Agencies
• Other Agencies Auditing CSU
• Bureau of State Audit
• Compensation, Hiring, Textbooks
• State Controller’s Office audits
• Payroll, Accounts Payable, Procurement Card
• State Board of Equalization
• Sales and Use Tax Audits
• California Student Aid Commission
• Other Federal Agencies
• IRS
3
Office of the University
Auditor
• Types of Audits done by the Office of the University
Auditor
• Auxiliary Organizations Audits – every three years
• Delegations of Authority Audits – every five years
• Subject Area Audits (based on annual risk assessment) – every
year
• Construction Audits – as needed
• Special Investigations – as needed
4
5
Audit Finding Example
BACKGROUND CHECKS
Background checks were not performed on all employees who had physical access to the information
technology services (ITS) data center.
Integrated California State University Administrative Manual (ICSUAM) §8030, Personnel
Information Security, dated April 19, 2010, states that campuses must develop procedures to conduct
background checks on positions involving access to level one information assets as defined in the CSU
Data Classification Standard.
The associate vice president (AVP) for human resources management stated that the failure to perform
background checks was due to oversight and that the existing policy was not consistently followed for
temporary employees.
Failure to screen and perform background checks on personnel who have access to sensitive data
increases the risk of potential mishandling and inappropriate disclosure of sensitive data.
Recommendation 1
We recommend that the campus ensure that background checks are performed on all employees who
have physical access to the ITS data center.
Campus Response
We concur. The campus will ensure that background checks are performed on all employees who
have physical access to the ITS data center. Corrective action on this item is complete.
6
Compliance and Ethics in
CSU
• $58,000 in box office sales revenues consisting of cash and checks was not deposited
• One faculty member had a conflict of interest when he participated in making decisions about a
specific software product because he received income from an account funded in part by the
vendor.
• A campus mechanic used parts purchased with his university procurement card in the personal
vehicles of campus employees and another individual.
• A campus mechanic used campus facilities to perform the work he did on personal vehicles and
used his state computer to facilitate the outside business.
• Special event parking revenues were not deposited and the director violated the campus
procedures for cash handling
7
CSU
• A director did not ensure that leave time was appropriately charged.
• A director used campus credit cards to make personal purchases.
• Labor costs of $624,277, which had not been approved by the principal investigator, were charged
to a grant
• Competitive bidding requirements were not followed when a $300,000 contract under a grant was
awarded.
• Payments were misrepresented as advances to student and staff training and instead used for
wedding and baby shower gifts.
• A director made false reimbursement claims for travel, entertainment, and business expenses
• An accountant ordered and authorized more than $25,000 in payments to contractors doing work at
his home.
8
Internal Controls
• What are Internal Controls?
• System of checks and balances
• Procedures to prevent and detect errors, theft or unauthorized
use
• Ways to manage and reduce risk
• Good business practices
9
Internal Controls
• Why do we need internal controls?
• Reliability and integrity of information and reports
• Compliance with
• Laws and regulations
• Policies and procedures
• Contract and grant provisions
• Safeguarding of assets
• Economical and efficient use of resources
• Accomplishment of goals and objectives
10
Principal
Internal Controls
• Segregation of duties
• No one person should control multiple steps of a transaction
 Request payment
 Approve payment
 Distribute check
• Authorization




Signature authorization
Review everything you sign
Delegation of Authority
One-up approval
• Monthly Accounting Reports
• Reconcile to department records
• Management review
• Safeguarding Assets
• Physical inventory
• Equipment use off-campus
• Cash collections
11
CSU
•
•
•
•
Ethical Conduct in Workplace
Conflicts of Interest
Records and Information Security
Purchasing and Contracts
12
CSU
Ethical Conduct in Workplace
•
•
•
•
•
•
•
•
Harassment and Sexual Harassment
Equal Opportunity/Nondiscrimination/Diversity
Americans with Disabilities Act
Use of State Property
CSU Responsible Use Policy
Copyright and Fair Use
Reporting of Fiscal Improprieties
CSU Drug-Free Workplace Policy
13
CSU
Conflicts of Interest
• Gifts and Gratuities
• Political Activity and Contributions
• Outside Employment
• Family Members (Nepotism)
• Conflict of Interest in Research
14
CSU
Records and Information Security
•
•
•
•
•
Information Security and Confidentiality
Records Retention and Disposition
FERPA rules and regulations
HIPAA rules and regulations
PCI rules and regulations
15
CSU
Purchasing and Contracts
• Delegation of authority
• Use of Procurement Card
16
Contact information
Questions?
[email protected]
562-985 4818
Thank you!
17
Buying for the CSU
From Procurement to Payment
CSU 101 January 26-29, 2014
San Francisco
Kathleen Prunty, Director Procurement & Support Services
Finance & Administrative Services – Cal Poly Pomona
Topics
1.
2.
3.
4.
5.
6.
CSU Authority & State Sovereignty
Public vs Private Procurement
Purchasing: What we buy
Solicitations
ATI and Insurance Concerns
Methods: Requisitions, P-Card, Petty Cash,
Direct Pay, and OfficeMax
2
Additional Topics
1.
2.
3.
4.
5.
6.
Travel Policy, Hospitality Policy
Spend Analytics – Spikes Cavell Tool
Procure to Pay Project (P2P)
Public Works
Contracts, Agreements, MOUs
Delegated Authority vs Budget Authority
3
CSU Authority
 Who are you, CSU?
─ CSU is the State of California acting in a higher
education capacity
─ Acts through its Trustees of the California State
University
─ Created and defined by Statute
─ A single legal entity with 23 campuses and the CO
─ Consultative governance structure
4
Constitution
Articles
Legislature
Governor
Codes
Board of
Trustees
Regulation
Resolution
Chancellor
Campus
President
Executive
Orders
University
5
Policies
State Sovereignty
 State Sovereignty is a constitutional tenet found
in the tenth Amendment to the U.S. Constitution
and also within State constitutions.
 To do business in California, businesses must
comply with state statues and requirements.
 Persons dealing with State agency are presumed
to know the law.
6
Public vs. Private
Private
• Confidential, proprietary,
secret
• Knowledge is Business
Advantage
• If it is legal it’s okay
• Survival of the fittest
• Moves very fast, decisions
made quickly
• Profit motive/incentive
Public
•
•
•
•
•
•
•
•
Open & Transparent
Inclusive & Fair process
Public Records Act
Protest of Awards
Driven by Statue & Policy
Low bid
Time required for process
Public funds
7
What We Buy
 We are small cities:
 437,000 students; 44,000 employees
 with streets, housing, buildings, utilities, clinics, etc.
 Open 24/7, 365 d/y
 CSU Combined Procurement
 FY 11-12: $1,414,219,758
 FY 12-13: $1,458,613,391
8
What We Buy
 Our faculty buy:
 Microscopes, telescopes, computers, chemicals,
animals, furniture, etc.
 Our students, clubs, and athletes charter:
 planes, busses, and boats
 Our facilities management builds and maintains:
 Buildings, Roads, Domestic Water infrastructure,
Thermal Storage Plants, Electrical sub-stations,
 Our police departments buy:
 body armor, weapons, ammo, and pursuit vehicles
9
What we buy
10
Solicitations
• Fair and Open Competition
The CSU is committed to a policy of promoting fair and open
competition.
Education Code and Public Contract Code, E.O. 775
• Bidding - to meet the requirements for the requested
goods or services; comply with legal policies and
requirements; ensure prudent use of public funds; reduce
/ eliminate favoritism, fraud, and corruption, and provide
qualified firms fair opportunity to participate
11
Solicitations
Informal – between $10K and under $50K. Award is
made after lowest quote is determined.
Formal – over $50K, Solicitation through advertising, i.e.:
BidSync, interested parties. Award is made to lowest
responsive and responsible bidder
Public Works – over $5K, formal solicitation
IT Purchases –“fair and reasonable” as documented
by: catalog/market price, historical pricing, controlled
pricing, informal or formal solicitation. Note: All
acquisitions of IT services $5,000 or more must be
advertised in BidSync
12
Accessible
Technology (ATI)
The CSU is committed to programs and services
that are accessible and usable by all, including
those with disabilities. ATI policy ensures that all
electronic and information technology products
meet recognized accessibility and usability
standards, (http://www.section508.gov/), at the
time of procurement or adoption.
ATI
includes
websites,
web
applications,
telecommunication products, video and multimedia
products, software, operating systems, self-contained,
closed products, desktop and portable computers.
13
Insurance
Requisitions for onsite services require specific
insurance coverage and documentation before
order can be generated.
General Liability, Business Automobile Liability,
and Workers Compensation insurance are
required with specific limits.
Procurement certifies that the insurance carrier
holds a current A.M. Best’s rating of A:VII and is
authorized to conduct business in California.
14
Methods
Requisitions
A requisition form is a request to the
Procurement Office to purchase supplies,
equipment or services on behalf of the University
for the requesting department.
Low Value Purchases
Methods to obtain low-value commodities through
expedited processes or payment cards.
15
Methods
Low Value Purchases
Direct Pay: Acquisitions identified on the Authorized Direct
Pay list may be processed (books, subscriptions, permit
fees, postage fees, etc)
Petty Cash: reimbursement through cashier’s office ($50)
OfficeMax Online Ordering: CSU master contract with
online ordering – procurement office can issue access
Procurement Card: Departments are encouraged to use
the P-Card for routine, day-to-day commodity purchases to
achieve cost savings and improve processing time.
16
Travel & Hospitality
 Travel Procedures & Regulations.
 http://www.csupomona.edu/~fas/uas/docs/CSU%20Travel%20Pr
ocedures%20G-001%20Final%202013.pdf




Personal Liability Cards
Authorization to Travel on State Business
Special approvals: out of state, international
Specific Limits for hotel, meals, etc.
 Hospitality Expenses – ICSUAM 1301.00
 CSU policy: hospitality expenses may be paid if
expenses are necessary, appropriate to the occasion,
reasonable in amount & serve a purpose consistent
with the mission & fiduciary responsibilities of the
CSU.
17
Spend Analytics
 Common Financial System
 Spikes Cavell:
Spend Analysis: Find where to make savings,
aggregate spend, and compare to other similar
organizations.
18
Collaborate
SPEND ANALYTICS
19
Spend Analytics
20
Spend Analytics
21
Procure2Pay
The CSU seeks … efficiently use its resources in …
procurement and payment for goods and services, and …
seeks to streamline current processes… . The Procure-toPay (P2P) Shared Services effort intends to improve the
quality of processes, reduce costs, simplify the user
experience, maintain campuses' ability to meet compliance
requirements, and enable shared services. Implementing
such changes in conjunction with the Strategic Sourcing
Initiative will save million of dollars annually.
22
Procure2Pay
• Future State Business Process Design
23
Public Works
Capital Outlay and Public Works Contracts
Public works project is defined as the erection,
construction, alteration, painting, repair, or improvement of
any state structure, building, road, or other state
improvement of any kind, regardless of total cost.
• Public Works Construction Contracts
• Architectural, Engineering, Planning, Testing
• General Feasibility Studies
• Special Repairs
Construction:
$395,037,036 / $490,550,562
24
Other Contracts
Contracts & Agreements
•Clinical Internships: Teaching, Nursing, etc
•Memorandum of Understanding (MOU)
•Inter-agency & Intra-agency
•Capital Equipment Leases
•Real Property Leases (Ground or Facility)
•Tax-Exempt Financing
•Emergency Agreements
•Auxiliary
Signature authority is delegated by the President
25
Delegation of
Authority
Authority to sign purchase orders, contracts, interagency
agreements, and to certify contractual documents is
limited to Procurement Officers and Administrators who
have been duly delegated in writing by the Campus
President or designee.
Examples of committing state funds:
• Authorizing a purchase or service without approved
purchase order
• Signing any contractual agreement, i.e. license
agreement, MOUs
• Picking up merchandise without approved purchase
order
26
Resources
 U.S. Constitution – Bill of Rights (10th Amend)
http://www.archives.gov/exhibits/charters/bill_of_rights_transcript.html
 Donahoe Act 1960
http://content.cdlib.org/view?docId=hb5b69n9fm;NAAN=13030&doc.view=fram
es&chunk.id=div00001&toc.depth=1&toc.id=div00001&brand=calisphere
 California Law (29 Codes)
http://www.leginfo.ca.gov/calaw.html
 California Code of Regulations
http://www.leginfo.ca.gov/calaw.html
27
Resources
 Executive Orders
http://www.calstate.edu/EO/
 ICSUAM
http://www.calstate.edu/icsuam/
 CO Contract Services & Procurement site
http://www.calstate.edu/csp/
 Capital Planning Design & Construction
http://calstate.edu/cpdc/
 Auxiliary Organizations of the CSU
http://auxiliary.calstate.edu/
28
Resources
 Reporting Transparency (contract award by
campus)
http://www.calstate.edu/transparency/
 CSU Synergy
http://www.calstate.edu/synergy/
 Spikes Cavell
http://www.spikescavell.com/
 Spikes Observatory (login required)
https://login.spikescavell.net/?ProductURL=https://observatory.spikescavell.net/
login.ashx?ReturnUrl=%2f&theme=observatory
 OfficeMax (login required)
http://www.officemaxworkplace.com/
29
Resources
 Risk Management
http://www.calstate.edu/risk_management/
 Off Campus Academic Activities
http://www.calstate.edu/acadaff/offcampus/faq.shtml#Internship-faqs

Accessible Technology Initiative (ATI)
http://www.calstate.edu/accessibility/
 Public Records Act Manual
http://www.calstate.edu/gc/documents/RecordsAccessManual.pdf
30
Resources
 NIGP Institute for Public Procurement
http://www.nigp.org/eweb/StartPage.aspx?Site=NIGP&webcode=abt_mvv
 National Procurement Institute (NPI)
https://www.npiconnection.org/home/index.asp
 National Association of Educational Procurement
(NAEP)
http://www.naepnet.org/iMIS15_PROD/
 Institute for Supply Management (ISM)
http://www.ism.ws/about/content.cfm?ItemNumber=4790&navItemNumber=4896
 Education & Institutional Cooperative Purchasing
https://www.eandi.org/Default.aspx?
31
Contact Info
Kathleen Prunty
Director, Procurement &
Support Services
Cal Poly Pomona
[email protected]
909-869-3380
32
CSU Auxiliaries 101
CSU 101 January 26-29, 2014
San Francisco
Prepared by Auxiliary Organizations Association
Taren Mulhause
Executive Director, Associated Students, Inc. – CSU Bakersfield
Auxiliary Organizations
Overview
• What Are They?
• What Are They NOT?
• Why Were They Created?
• What Are Their Authorized Roles?
2
• Types of Auxiliary Organizations and Activities
• How Do They Operate?
• Advantages of Auxiliary Organizations
• Current Issues
• Auxiliary Organizations Association Resources
3
Mission Statement
We are a consortium of diverse,
entrepreneurial, service-oriented
California State University auxiliary
organizations whose purpose is to
assist in exemplary services, programs,
and facilities that further the educational
mission of each campus.
4
What Are They?
• Separately organized legal entities (currently 85) created to
perform services and authorized support functions of
benefit to the campuses
• 501 (c)(3) nonprofit public benefit corporations
• First auxiliary established in 1922 – the Fresno State
College Association
5
6
Typical Auxiliary Organizations
& Revenue Sources
 Associated Student Body Organization Programs
• Revenues from student body fees
 Student Unions
• Revenues from student union fees
and operations in the facility
 Sponsored Programs, Research & Special Education Projects
• Externally funded grant and contract activity
conducted by faculty and staff
7
(Typical Auxiliary Organizations – continued)
 Commercial Services
• Revenue from bookstore sales, food services,
child care centers, and other commercial activities
• Gifts, Endowments, Trusts, and Fundraising
• Funds come from external entities intended to support specific activity
and other university operations, and typically 90% of donations are
restricted as to use
•Real and Personal Property
• Auxiliaries can incur debt to purchase property
and/or engage in partnership projects to
develop property
8
1. An Auxiliary Organization
Structure
• Authorized under the provisions of the Education Code
(Ed. Code Sections 89006, 89300-304 and 89900 et seq.)
• The Ed Code delegates to the CSU Board of Trustees the authority
to implement more detailed regulations – these are established in
Title 5
• Title 5, in turn, delegates to the Chancellor and campus presidents
authority to establish operational and oversight policies
9
(Structure continued)
•May only provide functions designated and approved by the Trustees
of the California State University (CCR, Title 5, Section 42500)
•Must have an Operating Agreement with the CSU defining approved
activities for each auxiliary
•Need a written MOU with the campus to establish scope of operations
and address other contractual issues
10
•Must be fiscally viable (with adequate reserves)
•Commercial services must be self-supporting
•Advantage: Provides additional operational flexibility and support
to the university
11
Governance as an Auxiliary Organization
•
•
•
•
Education Code
Title 5
CSU and Campus Policy and Practices:
The University President and CFO are accountable for all
auxiliary organization activity
•
•
•
•
Compliance
Annual Budgets
Expenditures
Programs
12
2. A Tax Exempt Organization
Structure
• Authorized under Internal Revenue Code as 501(c)(3) nonprofit
organizations and 509(a)(3) supporting organizations, operated for
exempt purposes as a “public charity” under California and federal
law
• Advantage: Generally exempt from tax on the income and gifts they
receive, and can offer donors charitable tax deductions for their
contributions
13
Governance as a Tax Exempt Organization
•Must file IRS Form 990
•Information on mission, activities, financial status, directors, and
operational policies
•Fundraising solicitations must meet federal and state standards
•Nonprofit Integrity Act of 2004
•Operational and financial standards
•UBIT
•Activity unrelated to the entity’s exempt purpose can result in tax liability
on unrelated business income – or, when extensive, loss of tax-exempt
status
14
3. A Nonprofit Public Benefit Corporation (NPBC)
Structure
• Authorized under California Corporations Code Sections 5110 et seq.
• Articles of Incorporation filed with Secretary of State
• citing the general governance features of the entity
• Bylaws adopted by Board
• to set internal governance structure
15
•Intended activities restricted to public/charitable purposes – in this case,
supporting the university
•Corporate powers to acquire property, enter into contracts, carry on a business
•Advantage: Entity functions within clear but flexible statutory norms
•Oversight: California Attorney General
16
Governance as a NPBC
• Powers and affairs must be exercised by Board or under Board direction
• Institutional control through board appointment
• Each auxiliary governing board must approve amounts and purpose for
expending auxiliary funds
• Includes funds for auxiliary operations as well as amounts and purpose of
expenditures to augment State appropriations
• Board members must review and approve executive compensation
• Review and approve an annual budget
• Nonvoting directors prohibited
17
Even though auxiliary organizations may be
organized as corporations, they are first and
foremost auxiliary organizations of the CSU and
must therefore operate pursuant to the specific
statutes and regulations applicable to auxiliary
organizations.
18
The Ladder:
Tier One – Statutory:
•Corporations Code
•Education Code
•Revenue and Taxation Code
Tier Two – Regulations:
•California Code of
Regulations (Title 5)
Tier Three – CSU
Policy/Practices:
•Trustee Resolutions
•Chancellor’s Executive Orders
•Coded Memoranda
•ICSUAM
Tier Four – Campus Policy/Practices
Tier Five – Auxiliary Governance & Management
Policy/Practices
19
What Are They NOT?
Auxiliary Enterprises or Services
• Auxiliary organizations are NOT “auxiliary enterprises” or “auxiliary
services” which are functions or operations that are departments of the
university – not separate legal organizations. Examples are:
•
Housing – Dormitory Revenue Fund
•
Parking Fund
•
Continuing Education Fund (CERF)
•
Student Health Center
20
Auxiliary Enterprises or Services (Continued)
• Auxiliary Enterprises are authorized under separate statutory
authority (Ed Code, § 90000 et seq.) and have the following
characteristics:
• Managed by the State and the funds are deposited with
the State
• Generally operated as self-support with fees directly
related to, although not necessarily equal to, the cost of
the facilities, goods or services
• The funds are deposited in separate university Enterprise
or Trust Funds and are governed by State rules (which
can be restrictive)
21
How a function is organized determines whether it
is an Auxiliary Organization
or
an Auxiliary Enterprise
Auxiliary organizations are self-supporting entities,
while auxiliary enterprises are self-supporting activities
22
Activity
CSU Trustees/Chancellor’s Office
Auxiliary Organization
Auxiliary Enterprise
Separate Legal Entity
Operates as Department
Ed Code
Title 5
Operating Agreement
Cal. Corporations Code
Nonprofit Public Benefit Corp. Law
Articles of Incorporation & Bylaws
Oversight of Governing Board
Ed Code
Title 5
State rules for
funds, employees
23
Why Were They Created?
The purpose of CSU auxiliary organizations is:
• “To provide instructional and service aids not normally furnished by the State
budget;” and
•
•
•
•
•
•
Facilitate essential services and activities
Enhance budgetary flexibility
Shield against liability
Manage risk and exposure
Increase investment opportunities
Purchase and sell real estate
24
Auxiliaries can do lots of things
25
Authorized Functions of Auxiliary Organizations
(Title 5, Section 42500)
 Student body organizations
 Bookstores, food services, and campus services
 Housing (e.g., faculty and staff for-sale housing)
 Student Unions and Recreation Centers
 Supplementary health services
 Loans, scholarships, grants-in-aids, stipends and related financial assistance
26
(Authorized Functions – continued)
•Externally funded projects including research, workshops, conferences and
institutes
•Instructionally-related programs (e.g., radio, athletics, etc.)
•Alumni programs (not alumni associations)
•Gifts, bequests, endowments, trusts
•Public relations, fundraising, fund management and development
•Acquisition, development, sale and transfer of real and personal property,
including financing transactions
27
(Authorized Functions – continued)
•Many of these activities can be performed by either the university or an
auxiliary, as long as authorized and with an operating agreement in place
•Most campuses have traditionally provided these functions through auxiliaries
28
How Do They Operate?
•No state funds (General Fund appropriations)
•Good private sector business practices (an alternative to governmental
standards and state procedures), which enhance university capabilities
•Flexibility and adaptability make auxiliaries useful to their universities
•Auxiliaries held accountable, but subject to a different standard
•Subject to different laws and regulations – e.g., different Wage & Hour
provisions, different Open Meeting laws, different Records Disclosure
requirements
•Comparability of salary and benefits for similarly classified positions
•“Comparable” does not mean “the same”
29
“Utilization of Campus Auxiliary Organizations”
•Campus establishes which of the permissible functions and activities will
operate in its auxiliaries (Operating Agreement, MOU’s, contracts for
service)
•Governing concept in making a decision about proper placement of funds
is Ownership –
30
Ownership:
•Authority to sign related contracts
•Risk of business loss
•Legal responsibility and liability exposure
•Fiduciary duty
•Policies that will govern the conduct of the program
•Administrative control over expenditures
31
Ownership of an activity is NOT necessarily evidenced by
which entity:
•Pays the employee or has signatory for the program
•Owns the facility where the activity occurs
•Has programmatic (i.e., subject matter) control over
expenditures
It does not matter if university employees, facilities or other
resources are involved in the activity, so long as the state
General Fund is reimbursed per the campus Cost Allocation
Plan
32
“Delegation of Fiscal Authority and Delegation”
•Pay for direct costs plus an allocable portion of indirect costs
associated with facilities, goods, and services provided by the
University funded from the General Fund (CSU Operating fund)
•Costs are determined in accordance with a written cost allocation
plan approved annually by the campus CFO
•University can recover costs with cash and/or a documented
exchange of value and in-kind consideration.
•Auxiliary funds can transfer to the University, but University funds
cannot be transferred to the auxiliary
•Auxiliary employees’ time can be donated to the University, but the
cost of University employees must be reimbursed
33
Auxiliaries cannot, due to current CSU policy:
•Hold state funds appropriated to CSU through legislative process
•Hold tuition fee revenue
•Hold most other mandatory student fees required for registration
•Own or sponsor instructional programs awarding academic credit
or Continuing Education Units
34
A perspective on perspectives
35
Advantages of Auxiliary Organization
Activities – A General Perspective
•Operate on a self-support basis
•Diversify resources by generating net revenues from commercial
enterprises, contract and grant management, and gift administration
•Offer “private-sector” efficiency and flexibility
•Offer reduced operating costs and alternative employment
relationships
•Accept entrepreneurial and special program risk exposures not
appropriate for the public entity
36
(Advantages of Auxiliary Organization Activities– continued)
•Manage endowment funds outside State investment restrictions (e.g.,
invest in equities to maximize returns)
•Purchase and dispose of property; provide seed money or loans for
development of university projects
•Enter into public/private partnerships that support the university (shift of
project risk and debt issuance)
•Facilitate certain types of financing, and add debt capacity
•Engage in statewide education bond campaigns
•Manage risk exposure
37
Current Issues
• What is the role and distinctive value of auxiliaries at the university in the
current environment? Has it changed?
• Changes in Stateside capability (e.g., what can be done in Trust accounts)
• Over the years some rule changes have given CSU greater flexibility.
• However, during the same period university operations have gotten
more complex
• Governance training for board members
38
(Current Issues– continued)
•Synergy initiative; search for efficiencies; eliminate duplication of effort
•Achieving the right balance of campus oversight and Board governance
•(Oversight vs. Management)
•Maintain distinction between campus and auxiliary employment
•Public relations exposure: public sees auxiliaries and campuses as one entity
39
The Balancing Act
• “Separate But Related”
• Private Entities operating within a public framework
• Separate from the public entity, yet its sole purpose is to serve it
• Board authority vs. Presidential/campus authority
• Transfer of assets requires Board authorization
• President’s veto power over an auxiliary program or expenditure
• The need for public disclosure and transparency, but without being
inaccurately characterized as a “state agency”
• Assume additional risk on behalf of campus – yet can’t expose the deep
pocket
40
AOA Resources
• Website Resources (www.csuaoa.org)
• Information sharing
• Membership directory
• Legislative and legal updates
• Library of resource materials
• Sample policies, procedures and forms
41
(Resources– continued)
•AOA Annual Conference
•AORMA - Group insurance and pooled benefit programs (cost savings,
and millions returned in dividends)
•Access to legal counsel
•Standing Committee resources and programs (e.g., AS/SU,
Research, Financial Services, Human Resources)
•Professional development programs
42
Resources (Continued)
•Meetings and workshops for membership
•Assist in creation of resources for member auxiliaries:
Multi-employer VEBA Trust
•Act as a forum/resource for resolution of common issues
•Represent interests of auxiliaries to policy-making groups
•Point of contact with Chancellor’s Office, CABO, FOA
…a partnership with the intent to seek joint solutions to common issues
43
Contact Info
Taren Mulhause
Executive Director, Associated Students, Inc. – CSU Bakersfield
2014 AOA President
[email protected]
661-654-2741
44
CSU 101 Tax Presentation
CSU 101 January 26-29, 2014
San Francisco
Marc Benadiba
Director, Payroll, Accounts Payable & GAAP
CSU Tax Discussion
• Contrary to popular belief, there are
significant tax issues on CSU
campuses.
• While CSU campuses are not subject
to federal and state income tax, there
are other taxes that do apply.
• Since most of you will not be primarily
focused on tax, this presentation will
provide an overview of the different
tax issues that arise on CSU
campuses.
2
Agenda
 Campus and auxiliary tax status
 Common payment types and related tax issues
 CSU tax responsibilities
– Sales and use tax
– Out of state tax withholdings on service
providers
– Non Resident Alien (NRA) taxes
– Unrelated Business Income Tax (UBIT)
 University provided housing issues
 Sample frequently asked tax questions
3
Campus Tax Status &
Filing Requirements
 Using my campus as an example, Cal Poly
SLO is exempt from federal and state income
taxes based on Title 26 of the IRS code,
section 115, which states:
– Gross income does not include… income
derived from any public utility or the
exercise of any essential governmental
function.
4
Campus Tax Status &
Filing Requirements
 Cal Poly is not a 501C-3 and as a result is not
required to file a form 990, which is filed by
organizations exempt from income tax under
section 501 of the Internal Revenue Code.
5
Auxiliary Tax Status and
Filing Requirements
 What is an auxiliary organization?
– An auxiliary is a separate legal entity,
usually on your campus, with a separate
taxpayer identification number and legal
status.
– The auxiliary’s primary purpose is to
support the university and is exempt from
federal and state taxes under IRS code
section 501.
– As a result of it’s 501(c) status, auxiliaries
are required to file an Organization Exempt
From Income Tax 990 Form.
6
Why Do I Care About Auxiliary
Organization Tax Obligations?
 Ultimately any underreported or underpaid tax
liability that arises from one of your auxiliaries
is the responsibility of the President of the
University.
7
Can Payments Issued by an
Auxiliary Receive “Special
Treatment”?
 The simple answer is….NO.
 Departments on campus will sometimes
assume that running a transaction thru one of
the auxiliaries instead of the University will
enable an individual to be compensated with
little to no tax implications.
 Employee and independent contractor
payments have the same tax withholding
requirements whether payments are issued by
an auxiliary, or the University.
8
Common Non-Wage or
Salary Payment Types:
 Allowances
 Reimbursements
 Independent Contractor payments
 Honorariums/Stipends
9
Allowances
 An allowance is a payment made to an
individual that compensates them for a certain
type of expenditure they have incurred,
including:
– Housing
– Car
– Cell Phone
– Meals
 Allowances do not require the submission of
receipts by the payee and are recurring
(usually monthly).
10
Allowances
 Housing and car allowances must be
approved in writing by the Chancellor’s Office
in order to be granted, are relatively rare, and
are fully taxable.
 Recommended treatment for allowances is
that they be issued as a separate check from
the Payroll office and then be flat taxed based
on the current federal and state tax rates in
effect.
11
Reimbursements
 Reimbursements can be issued for a variety of
different purposes:
– Travel (including meals and airfare)
– Supplies and equipment purchased
– Moving and relocation
– Conference registration
 Reimbursements are not taxable as long as
they meet the accountable plan rules.
12
Reimbursements
 To be an accountable plan, your University’s
reimbursement or allowance arrangement
must include all three of the following rules.
– Your expenses must have a University
connection - that is, you must have paid or
incurred these expenses while performing
services as an employee of the University
– You must submit receipts
– You must return any excess
reimbursement within a reasonable period
of time
13
Independent Contractor
Payments
 First ensure that the individual can indeed be
considered an independent contractor:
– An independent contactor is someone that
the employer has the right to control or
direct only the result of the work and not
the means and methods of accomplishing
the result.
– Faculty are the only class of employee that
may independently contract with the CSU.
14
CSU Tax
Responsibilities
 Sales and use tax
 Out of state tax withholdings on service
providers
 Non Resident Alien (NRA) taxes
 Unrelated Business Income Tax (UBIT)
 Excise taxes for fuel
15
Sales and Use Tax
 Sales and Use tax are generally only applied
to purchases of tangible goods (equipment,
furniture, etc.).
 Sales and Use tax are applied at the same
percentage rate
 Vendors (usually) include sales tax on their
invoices for the purchase of tangible goods.
 If the vendor does not charge the University
sales tax for the purchase, then it is the
responsibility of the University to apply use tax
to the purchase. This includes purchases
16
made by Procurement Card.
Sales Taxes on
Labor
 In general, sales taxes are not applied to
stand alone labor charges. However, some
labor charges in relation to taxable sales may
be subject to sales tax. For example;
– Fabrication Labor is considered taxable
 Manufacturing a new piece of machinery
 Sizing and engraving a ring you are
selling
 Cutting metal or lumber being provided
to a customer
 Altering a new suit to better fit the buyer
17
Non Sales Taxable
Types of Labor
• Sales tax generally does not apply to charges for
installation labor. For example; tax would not apply
to your itemized charges for installing a car stereo.
• Sales tax generally does not apply to repair labor.
Repair labor is work performed on a product to
repair or restore it to its intended use. For example:
• Repairing a broken keypad on a cell phone
• Replacing a hard drive in a used computer
• Repairing damaged paint on your car
18
Use Tax Example
 An employee purchases books from Amazon
using the University Procurement (credit) card.
The receipt provided to the employee does not
include sales tax.
– Accounts Payable records and pays the
charges for the books purchased, charges
the department use tax and remits the use
tax to the State Board of Equalization.
Please note:
Purchases made with the Procurement Card
(campus credit card) can generate a
significant amount of use tax that must be
accrued and remitted on a monthly basis.
19
Out of State Tax
Withholdings
 Vendors coming from out of state to provide
services will have 7% in state taxes withheld
from their payment, once their total payment
received exceeds $1,500.
– Exception: If the vendor has a business
office or physical presence in the state of
California, then they do not have income
taxes withheld from their pay.
20
Out of State Tax
Withholdings
 Example 1: Software programmer comes from
Nevada to your campus to provide services and
submits an invoice for $1,400. The programmer has
no physical presence in California:
– Result: no taxes withheld from their payment
 Example 2: Same as above, but submits an invoice
for $1,600:
– Result: 7% is withheld from the entire $1,600
 Example 3: Same as example 1, but submits an
invoice for $1,400 followed by an invoice for $300 in
the same calendar year:
– Result: 7% is withheld from $300 ($300 payment
puts total calendar year payment over $1,500)
21
Non Resident/Resident
Alien
 As defined by the IRS
– An alien is any person who is not a United States
citizen. The Internal Revenue Service (IRS)
classifies aliens as either nonresidents or
residents. A nonresident alien(NRA) is an alien
who does not meet either the IRS's green card
test (i.e. a lawful permanent resident) or
substantial presence test. These test are
discussed further in IRS Publication 519.
– Resident aliens(RA) are taxed the same as a
U.S. citizen.
– Non resident alien tax withholding and reporting
requirements are complex.
22
Making the NRA vs. RA
Determination
 Each campus has a Non Resident Alien
Taxation (NRAT) specialist that does the
analytical work to make the determination.
 Most campuses are using a third party
software product, either Glacier or Windstar,
to assist with the determination.
 Glacier (used by Cal Poly SLO) provides a
detailed web-based intake process that leads
the Non U.S. Citizen thru a series of
questions to gather information necessary in
order to determine the appropriate immigration
status for tax purposes.
23
Differences Between
an NRA and RA
 Resident aliens receive the same tax treatment as a U.S.
Citizen.
 Payments to a resident alien independent contractor
do not require federal taxes to be deducted.
 Resident alien employees may adjust their payroll tax
withholdings (within IRS guidelines) as they see fit.
 Non resident aliens are taxed differently than U.S. citizens.
 Payments to a non resident alien independent
contractor must have 30% federal and 7% state
taxes withheld and remitted to the IRS and Franchise
Tax Board.
 Non resident alien employees generally must claim
Single and 1 exemption on their W-4 (EAR).
24
Tax Treaties
 There are tax treaties that are in effect between
the U.S. and other countries.
 Under these tax treaties, a campus may grant
the right for the employee or independent
contactor to claim an exemption from taxes
subject to the limitations listed in each treaty
(different for each country).
 Alternatively, the University has the legal right to
not honor the tax treaty at the time of payment
and instead have the payee file a tax return at
year end to claim back any taxes withheld that
they are allowed to have returned based on IRS
guidelines and the appropriate tax treaty.
25
Non Resident Alien
Tax Filing
 In March of each year all NRA tax related
activity is compiled and used to prepare the
form 1042 Annual Withholding Tax Return for
U.S. Source Income of Foreign Persons.
 This tax return will summarize the tax liabilities
accrued vs. tax payments made and reflect
any over or underpayments made for the
calendar year.
26
Unrelated Business
Income (UBI) Tax
 UBI is defined as any trade or business which
is regularly carried on and which is not in
furtherance of the purpose for which the entity
was granted their tax exempt status.
 Examples of activities on your campus that
may generate UBIT include:
– Rental income, in conjunction with other
services
– Sponsorships
– Research
– Summer camps
27
Unrelated Business
Income Tax
 IRS rules used to determine UBI and calculate
the potential tax are complex.
 The individual responsible for UBI on your
campus has to constantly engage with
University personnel and departments to
proactively assess potential UBI situations.
 University personnel and departments don’t
generally offer information about potential UBI
scenarios, and usually don’t have any idea
that they may be engaging in an activity that
will create a tax liability for the University.
28
University Provided
Housing
 Campuses often want to provide on campus
housing on a temporary basis for select
employees:
– Can the campus provide housing?
– Will there be a tax consequence to the
recipient?
– Will there be a tax consequence or tax
liability assumed by the University as a
result?
29
University Provided
Housing


The University can provide housing without the
individual or the University incurring tax liabilities as
long as the housing is provided in accordance with
IRS Code Section 119 which states:
– The value of lodging furnished to an employee by
the employer is excluded from the employee’s
gross income if three tests are met
1. The lodging is furnished on the employer’s
premises
2. The lodging is furnished for the convenience of
the employer
3. The employee is required to accept the lodging
as a condition of employment
Please note: These three criteria should be
incorporated into the employee’s offer letter.
30
Current Tax News
 Governor Brown’s ballot initiative to raise taxes in order to
avoid “drastic cuts” to public education passed in 2012.
Proposed increases are as follows:
 State income taxes have been temporarily increased
for individuals making > $250K per year
 Sales taxes have been temporarily increased by a half
cent
 More content on it’s way
31
Sample Tax FAQ’s
 Question:
– My department will be providing a $5,000 travel
allowance for a “volunteer” that is traveling
overseas for one quarter to assist with teaching
a class, are there any tax consequences?
 Answer:
– Yes and No. If the volunteer incurs the expense
and then submits receipts for the amount
expended then there is no tax consequence. If
the volunteer submits a travel claim form with no
receipts, then the volunteer would receive a
1099 for the $5,000 and be required to report
the amount on their tax return.
32
Sample Tax FAQ’s
 Question:
– My department will be providing a housing
allowance for a dean or faculty member,
are there any tax consequences?
 Answer:
– An employee that receives a housing
allowance will require authorization from
the Chancellor’s Office and will be paid
thru the payroll system with the appropriate
amount of payroll taxes deducted from
each payment.
33
Sample Tax FAQ’s
 Question:
– A couple of campus employees regularly
sell T-shirts to the local community in order
to raise money for their college to be able
to send faculty members on a sabbatical.
Are there any tax issues that I should be
aware of?
 Answer:
– Since this appears to be a business that is
regularly carried on and the proceeds are
not used in furtherance of the University’s
purpose, there would most likely be UBI
tax implications.
34
Useful Tax Links
 Tax withholding on out of state service providers:
– http://www.ftb.ca.gov/individuals/wsc/agent_decision.
shtml#WhReq
 Moving and relocation expense Tech Letter:
– http://www.calstate.edu/HRAdm/pdf2009/TLBEN2009-01.pdf
 CSU travel policy:
– http://www.calstate.edu/icsuam/sections/3000/3601.0
1.shtml
 Independent Contractor Determination:
– http://www.irs.gov/businesses/small/article/0,,id=999
35
21,00.html
Contact Information
 Marc Benadiba
 Phone:
805-756-5864
 Email:
[email protected]
 Campus: Cal Poly San Luis Obispo
36

This IS the CSU

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