T. Bennett, SUBOA President called the meeting to order at 1:00 pm. New members and guests were welcomed.

Legal Affairs Report - A. Edwards & R. Scrodanus
T. Bennett introduced session. R. Scrodanus passed out 3 OSC bullentins-G2-19, G2-20, and G2-21.

G2-19 is the consolidation of Executive Order 127 requirement from the Governor's office. If a contract is bid for the lowest price, no Exec 127. If OGS, only will come into play if have a multi-bid situation. R. Scrodanus has a checklist, but will email to us. OSC is getting very critical about what is in package. MUST HAVE CHECKLIST FOR EXECUTIVE ORDER 127. OSC mandatory form. If don't have it will kick it back to you.

Bulletin G2-20. This is for third party contracts who buy for the State. Your foundation and ASCs are pertinent. The RF was instrumental in negotiating by or for. Any time third party is contracting by or for the campus, acting as agent, then State procurement rules would apply. Examples are very good in bulletin, and details when the contracts must be followed. Please work with your campus counsel or call RS. OSC has been gracious about giving advice. Tell them ahead of the time and don't drop the mess in their lap. A. Edwards mentioned there are some vast gray areas. Must be careful when take a historical SUNY function and now try to pay for it with 3rd party funds. K. Levison asked about "subject to OSC approval," and how that would work procedurally? A. Edwards will have to evaluate on a case by case basis. B. Stenson discussed meeting wherein it was decided that ASC food service, bookstores, etc, are not subject to this bulletin. B. Stenson indicated it is arguable that this legislation is aimed at items that should be in State Budget.

Bulletin G2-21. R. Scrodanus indicated this is a pandora's box in some way. This bulletin is about vendor responsibility, to make sure that the business is viable-subject to campus thresholds. The bulletin generally says that each agency should make up its own criteria, but there are many open holes. There are no minimums, except anything that goes to OSC for approval, must comply. Exemption to lowest bids, and OGS lowest contract bids. This should go into all RFPs. Criteria to be looked at must include vendor viability-last several years of financials, copies of certificate of corporation, letter of good standing or certificate of authority. Check for tax filings. Unfortunately there is no specific place for non-responsible bidders. R. Scrodanus would recommend that you set up graduated criteria, and how important the procurement is to campus. K.Cline inquired if there was a specific list for SUNY. R. Scrodanus suggested to check Lycos and Google type searches. Must make a risk assessment. SUNY could develop a default list. Vendors who are found non-responsible are entitled to a hearing. I.Litnzer indicated this procedure is unworkable for a hospital. If can't move to next lowest bidder, when is this workable? He suggested that the state look at Vendex. J. Fazoli said that they are pushing Vendex, so that the same vendor is not looked at over and over. B. Stenson noted that it is extensive in application, all the way down to the purchase order, including the procurement card. This just came out of the blue, out of left field. One of the areas, you look at are integrity and moral. This opens up all kinds of questions. R. Scrodanus suggests that you put fiscal requirements in RFP. Has list of items. This is very onerous and in-depth. You have to use your good judgment. Just be sensible, otherwise it will cripple you. The provisions of finance law says you must award to responsible and lowest bidder. The Controller is interpreting this way. Is there authority? Now there are just guidelines, not rules. If they become rules, then must be followed.

Miscellaneous

International Travel - General question about international travel restrictions. A. Edwards answered in many cases have out of state restrictions. We need to look at on case by case basis.

A. Edwards mentioned if development officers do not know what to do when someone wants to give money to the University. SUNY Counsel's office will help them through the process. L. Hartmark asked about BOT passing of new gift policy. A. Edwards said that counsel's office will provide update.

On-line Human Resource System - C. Lloyd
C. Lloyd talked about meeting with TRS to present the case of why SUNY employees should be held harmless. They have agreed to hold harmless all our employees. These are employees who are not eligible to stay in TRS by classification, but they will allow them to stay.

The Human Resource on-line manual has been a long time coming. C. Lloyd gave a briefing and clicked on highlights of the manual. T. Bennett thanked C. Lloyd.

President's Report - T. Bennett
Optional meeting for IT and Banner topics. Good use since only needed to come if you have interest. Tomorrow's agenda includes a presentation on cash management from Controller's Office. P. Wiater is also going to provide update on student account receivable issue. D. DeMarco is going to provide an update on travel module. K. Levison and J. Homberger provided update on annual meeting. Discussion about including HR, ABB, and Physical Plant from Wednesday to Friday, with meetings and break out sessions.

ECAUBO Meeting Recap - N. Lyons
N. Lyons provided update.

Secretary's Report - K. Cline
Approved

Treasurer's Report - B. Weigman
B. Weigman provided cash and savings update. The majority of dues have been paid.

Committee Reports - J. Homburger

ABB- See report from J. VanVoorst. ABB has added specialized presentations that have been well received. Update on 5 year administrative plan, accounts payable is pushed back to next phase. Capital construction project is moving forward. Charge was to get 2 groups together to improve access to data and reporting. Trying to improve system to be updated weekly.

Discussion about improvements to recharges and system to support.
Discussion about the accounts receivable. No late payments until 38 days after the invoice date and forwarded to AG 150 days after the beginning of semester.

Mention of unclaimed checks. Make sure you look at federal money before you send back. Federal money has to go back to program.

What was the impact of TAP last year? There are rumors that this may get wider, but no confirmation yet.

ASC - J. Homberger spoke for M. Lyons. Still concerns about OSC's reluctance to provide extended contract. The renewal of a one year contract is a problem.

HR - S. Hall indicated fall conference was a success with more than 160 attendees, more than double in participation. She is very happy with the track system that has been implemented. Tracks included PERB, sexual harassment training, and other pertinent topics. The HR group is also planning a spring meeting in Buffalo.

Want to keep momentum going. There is now a monthly executive conference call. There will be a director's meeting in February.

Several folks have spoken to S. Hall about what a rough year this has been in HR. HR did a survey-50% response rate. In last 5 years, 14 new directors. Many of them have had no SUNY experience. 64% indicated they needed help in FLSA. 46% said need help in civil service, etc. Other topics, Taylor Law, design of performance systems, etc. We don't do a good job in training people. We now have a plan. We want to partner with SUBOA to help folks to grow professionally. The concept is to hold a multi-day conference to help new or renewal HR folks. This would also give you real key people to network with. As new HR folks on-line, they should be assigned a mentor. S. Hall is working with C. Lloyd. Another idea is to hold regular regional meetings.

There are a lot of system changes going on. The HRMS new system is going to be easier to work with and much more efficient. Date capture will go away.

FLSA provides some questions. Unions seem to feel that the movement to non-exempt at S. Hall's campus is a demotion.

C. Lloyd asking how many campuses allow their President's to approve vacation time or sick leave. The President's have not participated in buy-back since they do not maintain their time on timesheet. At minimum, finding there are inconsistencies. In the near future, SUNY will give us guidance.

J. VanVoorst asked for guidance on succession planning. C. Lloyd is going to provide the information to session planning.

K. Levison thanked C. Lloyd and S. Hall for making the HR On-line manual real.

Purchasing - L. Spiro volunteered to chair the SUBOA sub-committee.

Residence Hall Committee
Three handouts from T. Bennett. Discussion of Revolving Loan. Suggestion to possibly increase the amount and possibly decrease the interest rate from 5.5% to 4.5%. Suggestion to look at last DASNY bonds for interest rate comparison. This fund is generally used for smaller jobs and DASNY for larger jobs. T. Bennett will suggest that lower is better. These are generally 15 year loans.

The second document is an analysis from D. Sheppard. When you compare the charges, it looks reasonable. One piece of good news is that the insurance rates are dropping down. Looks around 2.7%. Think it would be helpful to go over this in the January meeting. K. Levison talks about DASNY is assuming control without risk. The problem is when something goes wrong, they are not held responsible. This is a problem. The relationship has to be redefined with a contract.

L. Spiro asked about whether we are paying insurance on buildings that are paid off, and what happens to the refinancing on the buildings.

R. Mann asked about bonding on cafeterias. T. Bennett will put together questions, hopefully to develop a resolution. Important to get the right people here.

T. Bennett also had a discussion on student referendum. Fredonia passed one for a recreation building. Understand can do bonding through DASNY, but assembly is hung up on students paying fees. In limbo now.
Policy Manual - T. Bennett will ask P. Wiater about manual.

SUNY Business Systems - N. Lyons indicated D. DeMarco will provide tomorrow.

SICAS - Deadline to sign up

SUNY Connect Advisory Committee-

J. Homberger reports they are very efficient and effective. They put out monthly reports, and are preparing to publish a 5 year plan. Planning a survey on behalf of students and staff.

University Center Report Topics - T. Ferrara

Research Proposal that D. DeMarco forwarded
Discussions about relationships with ASCs
Legislative Session and speculation about what we are going to hear from Budget Area
Capital Plan-is it coming back?
Utility costs and how we are managing
BAP
SICAS and discussion of using All Funds on a transactional basis

Comprehensive Colleges- J. Homberger

Above topics plus Notion of having an OM organization like SUBOA was discussed
Discussion of light duty

November 17, 2004

Finance Report - D. Richter

Current year for the comprehensive and techs who gave up money last year - up around $30M. Finding money with budget division, not at $50M, yet. Net effect is that we are up and growing.

Capital legislature have meeting this year, maybe. But doesn't have an expectation they will come back this year, next year is a different story. SUNY has made clear what it wants all on list, as well as $30-40M emergency money in lump sum.

Next year, as well as out years will be tough. The State's economy is growing, but revenues lag about 2 years. There is about a $6 « billion year gap. Target is to get down to $3-4 billion before the cuts. This is out of $46 billion taxpayer's base. There is about $19-20 billion available to cut, translating to approximately 20%. Working with the budget office to make sure base level salaries are included in base, as well as utilities. We know we will not get enrollment reflected. The base is important.

Governor will submit his budget by second week of January. We have been talking about a graduated increase in tuition. We would like to index and then freeze tuition for four years. This is important because we get predictable increases. This is only operative if we are not cut and if we do not have to absorb mandatory cost increases.

BAP- We have an advisory committee. As far as we can tell, we are pretty much done. Still some issues on performance pools. The main reason is the Board of Trustees wants us to become more performance based. The other reason is the current BAP has lost its basis. If we ran the BAP fully, then we would be $100s of millions short. We increase the BAP from enrollment, but we don't have any extra money. The new BAP allows us to be more reflective. We will be able to look at categories, like 14% goes to medical schools. This process will give us more money for undergraduate education. This gives us debating points. When will we do the BAP? Conceptually we need to get out soon. What we have now will be base for first year of BAP. Those who have $50M, it will be built in base.

Hires- We need to be careful about filling a job unless it is mandatory. Be careful, as year 2 is $7 billion dollar gap. Would encourage hiring freezes, but individually and not across the board.

Form 1- D. Sheppard. Factually there are 16 form 1s ready to go. Others will be close behind. Three to four issues are important-to improve the process-some things system can do, improvement from campuses- get some with mistakes, things we don't control-when the budget was enacted.

J. Van Voorst volunteered the budget subcommittee to help streamline the Form 1. D. Sheppard indicates a slot for Form 1 in the latter part of IT plan. Clearly the precursor is to decide what we need as content. We would appreciate the input.

L. Hartmark asking if going forward it we could preload Form 1. D. Sheppard indicated going to look at process to try to improve.

Controller's Update - P. Wiater

Three items

1. Debt collection procedures
   Working with AG and others to develop a formal debt collection process. Passed out a summary comparing old and new policies. This will go into new policy and procedures manual on the web. Signed an MOU with the AG, to straighten out what the process will be with AG, so SUNY will get 100% on $1. Used to be 78%, now 100%. The AG will charge the student 122%. Previously the AG indicated campuses were not providing data. This is important. Once everything is finalized, will tell you how to proceed. Need a few waivers, but should be soon, so just hold until campus receives directions. Discussion of late fee timing. Issues surfaced how this proposed timing would negatively affect campuses. P. Wiater will go back to B. Stenson. T. Bennett asked that a group of business officers be included. P. Wiater agreed, asked for a list.
2. State mandate internal control program-workforce and succession
3. Best practices on cash management and cash collections

Construction Fund - P. Wood & R. Haelen

Capital Plan Update-have completed all kick off meetings with campuses. Please work with program managers. Be encouraged to work on scoping and design starts.

Feedback on vetoes and matching plan. Since that time there has been no contact with legislators and budget division. Senate is coming back next week, but there is no information regarding vetoes or possible overrides. Nothing on negotiations yet.

Going to show legislators the update in Year 2, along with any changes. Long term goal is to layout 5 year projects and sequence. We have shipped for one last look. Please take a look.

Campus lets. Starting to receive MOUs regarding these. If you plan to do these lets, work with your program manager on completing these. Goal is to do these on global basis, not local or project basis. You can complete a single application for 8-10 projects. Just attach to MOU.

Procurement Update- All 31 campuses have provided names. 29 have been trained. These are defined as over $5M projects. We have completed the AE selection. Each of you will have access to 5 in your area. This should roll out soon on projects below $1M.

Planning-CF is hiring planning consultants for your use. Selections have been done and moving to contract over the next few weeks. CM selections is a goal for each region. These will be full service contracts. This is a 2 step process. It will be slightly lagging, but coming forward.

JOC- Going to contract for the Job Order Contract bid. Thus far, OSC is saying they are going to limit us to $100K, but going to try to expand. OGS received $500K. This will take some time.

Staffing - Going to add 3 additional program managers and 3 design professionals, some finance folks, procurement, etc. CF is also asking for more flexibility going forward. Construction oversight has not been added. May be ok, cause currently in design, but down the road need additional folks. May have to use CMs that will be on board by then.

R. Halen- OSC lapsed some appropriations incorrectly. Will work with SUNY to resolve in the next full weeks. Now have budget certificate for 2004. Also putting in another certificate to Division of Budget to get through April. This looks promising also.

Capital construction reporting group- broke in 2 sections-immediate and long term. CF is trying to provide additional information. Exploring using SUNY accounting system. Important to have change orders, etc. Looking for common portal.

Update on IT issues - D. DeMarco

Communication is big deal. Trying to meet with campuses-including community colleges. Had Banner meeting yesterday. Hopefully by the end of year, looking for 6-10 campuses moving over. Bringing total from 30-40. Will talk to SCT about consulting team for campus.

ITEC presentation- Most participate in ITEC. Update on 2 issues. Has a governing committee. Asked CIO, Ron Brown for direction for the future.

ITEC has been looking for sometime at disaster recovery for their campuses. This will begin by focusing on Banner issues, email, etc. Right now, most campuses just have data backed up. ITEC would vault data at least daily, maybe more often. If something happened, then would be able to access shortly the stored data.

Details are being worked out. Testing with Genesco and Oneonta now. Should be ready next fall. Also trying to open additional data system in System Admin to "back up" Buffalo State.

SUBOA IT Process Update- D. DeMarco distributed detailed schedules. One of the new advantages with new systems is workflow.

Web travel has been around for about a year. Will be function over the next couple of months. Working with State Controller's Office on making this paperless as possible. Most of these new enhancements will be operational in a few months.

Research Foundation Update - Chris Wade / Tim Jennings

C. Wade -Discussion of federal F&A rate. Some due March 2005, and others 2006. If have more than $10M in federal costs, required to do a long form proposal. Provided information for rates at all campuses. RF will drive the process, but need accurate and timely data from campus.

T. Jennings - Has visited 25 campuses and met with a good number of other campuses in a better effort to serve you. Identified the key financial indicators. Will be reaching out in December to project July 2005-06 revenues. An email will follow. Want to get input from campuses, since it is really the campus estimate. K. Levinson stressed the importance of being included.

Internal Audit - K. O'Donoghue
K. O'Donoghue wanted to come to SUBOA. Has been at SUNY for 2 years and has been looking how to make a role for Internal Audit. K. O'Donoghue indicates we have plenty of auditors. When we come to visit you, we will do many things, not one thing. We will look at Procurement, IFRs-how you manage the businesses-need accounts receivable systems.

A request was made for standardized audit programs for each of the areas that are audited in order to understand what the areas are. What are the key internal issues, and what are the key resolutions and findings? We need more specifics. K. O'Donoghue agreed to provide internal control programs so campuses can work to get better. Concern expressed that the audits not be "fishing" expedition. K. O'Donoghue indicated not the goal here. There are audit programs that should be followed.

Two other items- Item 96 which is a Fraud Reporting Mechanism. This process is very formalized with a process. There are 3-4 people in a room that is in a room to make decisions. If we send it back to you to handle, a decision has been made by several people. There is interest on audit committee in Sarbane's Oxley. They may be interest in whistle blowing mechanisms. I. Litzner showed there are some campuses with hot lines. May be better and less expensive than web based. K. O'Donoghue indicated good points.

Through KPMG, need to better coordinate audit compliance issues. They have asked for a report on ways to respond. SUBOA will be asked for response. Most of these are moving slowing. Follow up on OSC assertions about items on campus.

Legislative Update-Handout

Audit- J. Nolan, L. Davis and K.Cline will serve as liaisons to SUNY Audit.

Adjourned 12:15

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