Delegate Meeting
Wednesday March 6, 2013, Conference Call
9:00 a.m. – 11:30a.m.
https://my.loopup.com/Conferences/join.aspx?ACCESSCODE=0210048
Members
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Doug Wade (Bakersfield)
Missy Jarnagin (Channel Islands)
Stacie Corona (Chico)
Karen Wall (Dominguez Hills)
Debbie Brothwell (East Bay)
Clinton Moffitt (Fresno)
Brian Jenkins (Fullerton)
Carol Lorentzen (Humboldt)
Sharon Taylor (Long Beach)
Jose Gomez (Los Angeles)
Steve Mastro (California Maritime Academy)
John Fitzgibbon (Monterey Bay)
Deborah Wallace (Northridge)
Darwin Labordo (Pomona)
Justine Heartt (Sacramento)
Deletta Anderson (San Bernardino)
Lorretta Leavitt (San Diego)
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1)
Welcome
2)
Agenda Approval
3)
Treasurer’s Report – Mary Hinchman
Nancy Hayes (San Francisco) CABO Liaison
Agnes Wong Nickerson (San Francisco) Chair
Josee Larochelle (San Jose)
Lorlie Leetham (San Luis Obispo)
Mary Hinchman (San Marcos)
Letitia Coate (Sonoma)
Julie Benevedes (Stanislaus)
George Ashkar (Chancellor’s Office)
Rodney Rideau (Chancellor’s Office)
Jean Gill (Chancellor’s Office)
Mike Redmond (Chancellor’s Office)
Tom Roberts (Chancellor’s Office)
Michelle Schlack (Chancellor’s Office)
Nancy Freelander-Paice (Chancellor’s Office)
Lily Wang (Chancellor’s Office)
Sedong John (Chancellor’s Office)
Jessie Lum (Chancellor’s Office)
Michelle Norton for Mick McBride (Chancellor’s
Office)
Chris Canfield (Chancellor’s Office)
Mary Hinchman reported a fund balance of $104,815.06. The change in net income was attributed to the Delegate meetings.
4)
CABO Update – Nancy Hayes
Nancy Hayes noted that there were no updates from the last CABO call.
5)
CSU 101 – Justine Heartt
Justine Heartt reported that plans are underway for the CSU 101 slated for January 26-29, 2014 at the San Francisco downtown
center. Each campus will be allowed three participants with registration to begin in September 2013. A reception is planned for
Sunday the 26th, with the training ending at noon on Wednesday the 29th. The downtown center is very accessible and within
walking distance of BART transportation. For those participants using private vehicles, parking rates are very high.
FOA Executive Committee * Chair, Agnes Wong Nickerson * Vice Chair, Justine Heartt * Secretary, Deborah Wallace * Treasurer, Mary
Hinchman * One year Member at Large, Doug Wade * Two year Member at Large, Julie Benevedes * Past Chair, Karen Wall
The committee may also recommend that the downtown center become a permanent location for the training because of
accessibility, the amenities of the center and nice hotels close by. The Parc 55 Wyndham, the host hotel, is charging a rate of
$149 for guests for the 2014 training.
6)
FOA Conference – Sharon Taylor
Sharon Taylor reported that one planning meeting has been held to discuss the FOA conference. The conference is slated for
March 10-12, 2014 at the Costa Mesa, Hilton, at $125 per night + tax. The agreement has been signed with the hotel, but it was
noted that these dates conflict with the 2014 HEUG conference. It was determined that if this date doesn’t conflict with a BOT
date, the conference should be able to move forward. In the interim, please send any issues via email to Sharon Taylor. Sharon
noted that based on the survey, there appears to be around 300 participants with most staying in Costa Mesa. Sharon will have
additional information at the next meeting.
7)
FOA Election – Karen Wall
Karen Wall reported that the FOA election committee has been established. The committee includes, Doug Wade, Stacie Corona
and Karen Wall. There are 3 positions open, Vice-Chair, Treasurer and Member-at-large. There have been quite a few names
submitted for the open positions. Karen has contacted the persons nominated. She will send out the ballot today after the
meeting. Within a week voting should be finalized, afterwards, the tally will be finalized. All Delegates are expected to
participate in the voting process. New officers will be announced at the next meeting.
8)
Follow up Items from 2/13 Meeting:
i) Update on Tracking Employee AR – No update
No report.
ii) Update on CASHNet - Josee Larochelle
Josee reported that there will be a Higher One User Group (HUG) conference in Berkeley this April. All CSU participants
will receive a 50% discount on the registration. The CashNet committee is working on a breakout session. Also, the
committee has had conversation with CashNet Higher One regarding relationship managers. CashNet Higher One has
assigned a relationship manager to the campuses by region. There may be a benefit for a manager at each campus in order
to provide good service.
Action: Each Delegate should speak with their bursar’s offices to see if one representative will suffice and report back to
Josee. Josee will send an email to the Delegates for input.
Josee also reported on the service level agreement. The agreement is on a high level. George followed up by noting that a
few changes had been made to the agreement with respect to CMS. The agreement will become a part of the master
enabling agreement.
George also reported that there is new legislation that is very anti-Higher One. He will channel this information to Agnes
to be distributed to the Delegates. Action: George will forward the two proposals/opposing legislature to Agnes. George
reported that the CO is also exploring other options/companies. The discussion to consider other companies may go to the
Council of Presidents.
9)
Procure to Pay - Letitia Coate
Letitia Coate reported that the report has been distributed to FOA and PSSOA. The next step is a presentation on Tuesday,
March 12, 2013. The presentation is expected to take about 3 hours. There will be opportunities at the meeting for questions. A
PowerPoint will be presented that ties back to the final P2P report and includes parts from Phase I and II. A big part of the report
discusses the future state, which focuses on strategic sourcing. The next steps will depend on the leadership, the President’s and
Dr. Quillian.
Mike Redmond reported that the Presidents have said that the information from the report will be utilized to guide some expert
consultants on an implementation plan. There is an RFP out for consultants. Bob O’Leary is the Oracle consultant working with
the CO on this project. Additional information can be found at www.calstate.edu/synergy. Essential to the process will be the
alignment of FOA and PSSOA.
10) US Bank Personal Liability Cards – Tom Roberts
Tom Roberts reported that CSU rebates are received on the US Bank Personal Liability cards. The issue/question is the bad debt
on these accounts and writing off the account. The amount charged off becomes a deduction on the rebates after 180 days. This
rebate is much smaller than the one on the P-Card program and hits the state rebate versus the individual campuses.
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11) GASB 61 Implementation - Sedong John
Sedong John reported that if auxiliaries following FASB standards need to be blended with the university under GASB 61, the
decision to follow FASB standards should be reexamined since “blended” means it is treated like part of the university and it
does not seem logical to have a blended component unit that is using FASB standards when the CSU is using the GASB
standards. Auxiliaries should follow the GASB rules as a blended component unit. There was also a question about the meaning
of the blending criteria in Question 9 of the survey questionnaire, especially regarding whether or not the component unit
provides services entirely, or almost entirely, to the CSU or otherwise exclusively, or almost exclusively, benefits the CSU.
Examples from the implementation guide suggest students are not considered to be the same as the university itself. The CO is
researching and waiting for clarification from KPMG on these questions.
12) Division I & II NCAA Audit Requirements and Reports - George Ashkar
George reported that the NCAA has certain rules for Division I & Division II. Action: George asked that campuses complete
the following questions and submit to Agnes for compilation. George would like the information by next week.
i)
Which Campuses have completed?
ii) Which auditor was used?
iii) Date of last report?
13) 12/13 Audit - George Ashkar
i)
Timeline
George reported that the audit report is due by 10-15-13, per the State Controller’s Office. The SCO was audited and a
comment was made that the CSU needs to get its financial statements in on time, which is another reason why we need to
make a concerted effort to comply. The CO wants to be realistic as to how the report is being completed by the campuses.
After much discussion with KPMG, it was decided that August 26, 2013 is the due date for the campuses’ financial
reports. PBC’s and materiality levels have been reduced significantly. This will be discussed later in more detail. PBC’s
will be reduced from 105 to 85; some of these were specific to San Diego. There is also a consideration that the Payroll
reviews be completed at the interim in May. These may be done system wide versus at the campus level. This is still being
discussed. Pass down entries will also be reviewed, with most work being done at the CO centrally. Auxiliary reports will
be due by September 20, 2013. Final draft reports are acceptable, if these reports have not been approved by the
governing boards of the auxiliaries. This is being addressed with the AOA executive committee. A timeline will be
provided by the end of next week.
George and Larry Mandel were acknowledged for their efforts in working with the Delegates and audit committee to
ensure that no financial audits are conducted during the compressed deadline of the 2013 audit.
ii) List of campuses to be visited by KPMG
George reported that 10 campuses plus the CO will be visited by KPMG for the 2013 audit. The campuses include:
Fresno, San Bernardino, Los Angeles, Northridge, Fullerton, Cal Poly SLO, San Diego, San Jose, San Francisco and Long
Beach.
14) Chancellor’s Office Update
 CFS & CHRS Update – Michele Norton/Karen Wall
No report on CFS.
Karen Wall reported that the CHRS design committee has completed their work. The documents have been turned over to
the consultants. One of the largest modules that the consultants will have to design is the full-time/part-time faculty
module. The open forum calls will continue and invitations will be sent for participation on these calls.

Financial Services – George Ashkar
George Ashkar reported that he will report two updates to the Finance Committee at the March BOT meeting: 1) CSUN
Housing project, 2) SRB debt report. He will also update the Board on the audit, status of the A133 finding, and the 5
findings in the Auxiliary area.
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There will be a Legal and GAAP in-person training on May 29th & 30th. Lily Wang will be sending out the invite to the
campuses. Tentative arrangements have been made at LAX Crowne Plaza for the training.
George has been tasked with reporting to the Academic Senate on issues such as: fee structure, financials, etc.
There are a couple of policy changes: 1) Maximum lodging amount of $175, excluding taxes, 2) Mileage revision – from
50 cents to 56.5 cents. This rate now coincides with the federal allowable.
Delegates asked if the Chancellor had considered going back to a per diem/per meal reimbursement in an effort to reduce
process inefficiencies with checking receipts over $25. Action: George will put this on his priority list for review. Mike
Redmond will also work on this item in an effort to align with the P2P project.
Action: George is going to review the memo that was dated 2/26/13: Maximum Limits for Reimbursing the Cost of
Lodging. The memo states, “rates in excess of this amount must be pre-approved by a campus vice president or
designees…” George will let FOA know the intent of the memo, since this seems to conflict with the current CSU Travel
Policy.

Budget – Rodney Rideau
No report.

Procurement – Tom Roberts
No report.

ICSUAM – Mike Redmond
No report.

Audit – Michelle Schlack
Michelle Schlack reported that the audit group is continuing with the International Programs, Credit Cards and Sensitive
Data audits. In early April, the pilot audit of the Hazardous Materials Management will begin and mid-April the pilot audit
for Centers and Institutes.
There was discussion on the continuing education programs audits being conducted by the Bureau of State Audits (BSA)
at three campuses, Sacramento, SJSU and Long Beach. Josee reported that the auditors have been at SJSU over a month.
There will be a system wide report issued with the individual campuses information redacted.
15) Liaison Reports
 Accounts Payable (AP) – Brian Jenkins
Brian Jenkins reported that some campuses are exploring the CFS delegation of fiscal authority module.

Student Accounts Receivable (SAR) – Karen Wall
Karen Wall reported that the SAR group has raised tax questions for NRA’s. However, the Chancellor’s Office tax
department has been very helpful in addressing these concerns.

Purchasing (PSSOA) – Darwin Labordo
Darwin Labordo reported that there will be a PSSOA in-person meeting March 21, 2013 at Crowne Plaza. The
changeover of the new chair (Brian Cotham) will be done at this meeting. There was also a teleconference last week.

Budget – Missy Jarnagin
Missy Jarnagin reported that there will be an in-person meeting on April 11, 2013 to discuss the budget proposal that is on
the agenda at the March BOT meeting.

Sponsored Programs – Letitia Coate
No report.
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
CFS Advisory Committee – Josee Larochelle
No Report.
Agnes reported that the next meeting will be a joint FOA/CABO meeting at the Chancellor’s Office, March 12, 2013 to
discuss the shared services Phase II report.
Meeting adjourned at 11:28 a.m.
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