T. Bennett, SUBOA President called the meeting to order at 12:00 pm.
Moment of silence for Gary Moore

Legal Affairs Report - A. Edwards
Will review the DASNY MOU and advise group re: obligations.

L. Spiro asked question regarding procedure on by/for contracts. A. Edwards asked for the most frequent scenarios. L. Spiro gave analogy of DEC -used to send to RF and now DEC can only give to SUNY. A. Edwards asked to forward and would look at overall.

K. Levison offered feedback on new OSC procedure. He sent up a revenue contract and OCS sent back paperwork asking for a large amount of info. Asked legal if there was any possibility of getting them to look at the reasonableness? A. Edwards indicated there are no waivers yet.

Levison mentioned the NYC vendex program which works well. This would improve efficiency and not waste taxpayer money to revisit the same vendors. A. Edwards agreed. More efficient to check the list. D. Bowers expressed concern about added burden with less staff.

ASC - T. Bennett noted there are problems with ASC contracts not being approved. There was a presentation about ASC to ASC liaisons, and a discussion about developing a white paper. M. Lewis spoke about the fact that most campuses have ACS contracts that have expired. The awareness needs to be raised and heightened. S. Grogas from the SASC organization provided a power point. To see entire presentation, visit the SUBOA website.

J. Fazoli shared that Foundation and Alumni contracts were ok, with 5 year terms, but OSC only agreed to 1 year for ASCs. They are concerned that there has been an expansion of activities and feel they should go through the State System. OSC is concerned about capital structures and the fiscal assessment issues, and about the State assuming outstanding debt of dissolved corporations. J. Fazoli has been keeping in contact with OSC reps. SUNY took a strong stance, making arguments why ASCs should be separate. OSC will get back to us. They have expressed a heightened interest in Public Authorities. Campuses expressed concern for students. Corporations can't borrow money with 1 year contracts. Campuses could run the risk of not being able to provide services. All revenue would be held up if there is no contract.

President's Report- T. Bennett

Personnel Update: L. Hartmark is going to Rockefeller Institute for a 6 month project on higher education finance and budgeting.

Provided update concerning discussion with D. Esposito about DASNY. Just learned that there is an MOU between SUNY and DASNY. Will send out questions and also work with A. Edwards.

Last SUBOA meeting we had a extended discussion on accounts receivables. A few campus presidents got involved. Feel we are moving in the right direction.

K. O'Donoghue has agreed that we could work with his area to develop scopes of audits that would be shared with campuses. J. Nolan has reached out to A. Thomas who was very receptive to work with audit on the front end rather than back in. We are going to come up with system wide audit program.

B. Stenson's reception starts at 5:30.

Secretary's Report- K. Cline
I. Litnzer made motion to approve. D. Mann seconded. Approved unanimous.

Annual Meeting Discussion - K. Levison
To be held at Holiday Valley at Ellicottville, NY. Planning for arrival June 19th, Sunday. Invited will be ABB, HR, SUBOA will have their meetings. Dinner together. Next day general session, and then 3 breakout sessions.

Treasurer's Report- B. Weigman

Committee Reports

ABB - J. VanVoorst, Chair reported on IPEDS. Also discussed looking at Form 1 and the process. SUBOA is requesting preliminary numbers. Looks like this is feasible. W. Gilman is working on this.

Internal Control - there were 18 campuses that were not able to certify. There are problems with this - campuses lose flexibility with State Controller.

Much progress was made with the late payment issue. New rule is that the Controller is going to start filing the reports for non-aliens. Had a meeting with SUCF- along with SUBOA officers. Feel a bit of progress made. D. DeMarco raised issue on priority of what is being done at system. L. Spiro talked about the new campus let program.

D. Sheppard is going to discuss tuition proposal tomorrow. Capitalization is moving forward. Hard copy to follow.

ASC M. Lewis-already reported

Personnel- K. Cline -2 handouts from S. Hall. HR working to bring new HR officers up to speed. HR manual, training, etc.

Procurement - L. Spiro- handout -new details are challenging. Suggestion that group gets together with A. Edwards to make arguments re: 1985 Flex legislation. L. Spiro has a resolution to have this group sanctioned by SUBOA. T. Bennett asked for interest from group. J. Homburger makes motion, D. Bowers seconded. Unanimous to form a committee. J. Fazoli indicated OSC is beginning to take action now.

A letter was submitted for discussion to D. DeMarco asking for J. Fazioli to remain as the campus procurement liaison. L. Spiro read letter to group. J. Fazoli responsibilities were going to Gary Moore, under P. Wiater. D. Mann says we need her involvement until such time someone is totally up to speed. T. Bennett asked for motion. D. Mann made motion. K. Levison seconded. Unanimous. Letter will go to Chancellor.

L. Hartmark strongly agrees. His concern is one of timing. Think there should be a delegation to see Richter. Copy B. Capaldi. N. Lyons suggested that we look at org chart tomorrow and make recommendations.

Information Systems- No report

Physical Plant- No report

Residence Hall Committee- T. Bennett, conference call discussing options of increasing value of revolving loan fund, or decreasing interest fund. Currently 5.5%. Committee picked $3.5M and lower interest rate of 4.5%. K. Levison asked what is the basis of lowering rates? Pulling in line with DASNY. I. Litnzer makes a motion of support. Unanimous support vote.

Audit Committee- Discussion during President Report

Adjourned 5:00 pm.

Minutes of January 27, 2005

Thursday, January 27, 2005
8:00 a.m. - President Bennett introduced Vice Chancellor David Richter to give SUBOA an update on the SUNY Budget world.

Vice Chancellor's Report - David Richter
2005-06 Budget

• The additional $85 million reflects the amount needed to pay negotiated salary increases and escalating energy costs. Either a tuition increase and/or tax support is needed to cover the $85 million gap.
• Options include:
• 100% state support (unlikely).
• Tuition increase of $500 doubtful, especially against a $250 increase by CUNY. The CUNY request will most likely become the theoretical base.
• SUNY needs to demonstrate impact of tuition increase if no tuition increase is approved.
• Bob King has a hearing with the Legislature on February 8 and he will attempt to create an image of the impact through stories and examples.
• The Executive Budget has given SUNY an additional authority to spend $26.4 Million.
• The additional $9.7 million forthcoming may be renewed in 2005-06. Prudent action by campuses would be to put $9.7 million away for 2005-06.
• New tuition plan and policy - Article 7 requires bill to be discussed by Legislature, predicated on not being cut in tax support. The intent is to cover annual negotiated salary increases and escalating utility costs.
• A significant change this year is that we do not have to wait for budget approval to increase tuition.
• If we get the $85 million we need, it sets the stage for a stable, more predictable future.
• The provision for privatizing hospitals is again included in the Executive Budget.
• Capital Projects - SUNY has given a list of priorities to the Legislature and Governor's Office.
• Capital Matching funds include $100 - $150 million for both public and private colleges; $1 for each $3 match in non-State funds.
• EOP has been cut $7.8 million. History indicates it is very hard to restrict EOP proposals by the Legislature. TAP restrictions and changes have the same history.
• The Executive Budget projects $9 million in interest on cash balances. This is very aggressive, based on recent cash balance history.
• An additional $20 million in revenue has been tied to fringe benefit recoveries on IFR's - again, a very aggressive increase. David Richter discussed the organizational changes that include the following individuals and areas at State University Plaza:
• Controller's Office - Pat Wiater
• Labor Relations - Ray Haynes
• Human Resources - Curtis Lloyd
• Information Systems - Dave DeMarco
• Budget/Finance - Dan Sheppard
• A new organizational chart will be available very soon.
• Wendy Gilman has been named the new Budget Director.
• We have to use our political strategy by campus to help the Legislature understand the importance of the $85 million.
• There would be a war if the "hold harmless" strategy implemented in 2003 were allowed to happen again.
• Tuition increase totaling $85 million was based on the assumption of the $500 increase "across the board". Anything less than this proposal will be detrimental to SUNY.

A motion thanking David Richter for his leadership and counsel over the past couple of years was made by Ivan Lisnitzer and seconded by Dick Mann; motion accepted unanimously. A plaque was also given to David by Tracey Bennett on behalf of SUBOA for his help and guidance to our organization and SUNY as a whole.

Curtis Lloyd

• Proposal to be presented to A/B/B regarding Business Systems for changes to time and attendance module. Curtis was seeking approval for redesign of both time and attendance and property control systems from SUBOA. The investment in this initiative will have U-wide recharge implications.

• Extensive research/collaboration/discussion with Kronos.
• The off-the-shelf purchase price is $4.1 million, with annual maintenance costs of $1.2 million. The plan is to fill 2 positions (1 tech/1 functional) at a cost of approximately $130,000 and build our own.
• We will have to develop our own business rules.
• Dave Demarco and Curtis Lloyd will return to present the goals, objectives and expectations.
• The schedule for development is implementation in18 - 36 months.

• State/SUCF/Research Foundation
• Very old system - needs redesign and upgrade.
• The plan is to hire one (1) technical analyst to help develop rules and support annual maintenance of database.
• Summary: It is expected that the 3 positions @ $65,000 range will require a $2,000 to $3,000 university-wide recharge to comprehensive campuses with higher costs for centers and lower costs for colleges of technology.

Dave DeMarco

• Time and attendance was in from start (5 Year Plan).
• Property Control not in original 5 Year Plan due to being in SUCF.
• Issue at hand is moving property control from SUCF to SUNY.
• In 3 « years get rid of mainframe support.
• Ken Levison made the motion; seconded by Leif Hartmark. Move to accept the recharge proposal for Human Resources (time and attendance) and property control with understanding that SUCF provide transition support.
• Purchasing module in testing now! Web training? - unsure of status.

State University Construction Fund - Robert Haelen & Phil Wood
Phil Wood

• A list was handed out with redistributed additional allocations; Senate and Assembly will most likely add funding to the project list.
• $50 million was included under an unallocated line - initially the "Fund" was pushing for an unallocated line totaling $100 million as included in the Executive Budget. The Fund continues to operate with $10 million.
• "Good News" - Capital Plan has not been stretched. The plan is still 5 years.
• Added projects - some they knew about, some they were not aware of.
• Matching Program down to $100 million for private colleges only.
• SUNY can only compete for $150 with a $1 for $3 match from non-State sources. There is a lot of talk this "will not be accepted" in Legislature.
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Robert Haelen

• The Capital Plan role-out will require campuses to continue to plan and prioritize.
• Continue to look at 5 Year Plan as a 5 year plan and build in flexibility within 5 year funds.
• The new interchange letter (process) is required when you are moving (added additional reporting requirement) from one project(s) to another. This process will help document to where we are interchanging funds within projects from year to year.

• Starting 4/1/05, all funds will be in emergency appropriation. Everything we have is reappropriated.
• Bob thanked the SUCF committee for their time, effort, and feedback.
• A work plan is required for justification of "Lets". Bob asked if campuses are comfortable with the "campus lets" process, and the general consensus was "yes".

SUCF - Back to Phil

• Phil thanked everyone for their cooperation in this annual reporting process. The plan was approved by the Trustees at their December board meeting.
• There will be some changes for year 2; we know the plan will be more specific than the original 5 Year Plan.
• Good News - The logjam for filling positions has been approved, with authority to fill 14 vacant positions. SUCF has authority but not funding at this time. In addition, there is approval for getting 12 new positions, including 6 additional construction coordinators.
• Total positions within approved hiring plan - 14 reconfigured (vacancies) and 12 new positions.

Procurement - Phil

• Handed out term agreement for review and comments.
• CM review is in its final stages.
• "Job order contracts" are up the hill and should be approved and ready for the spring season.

Internal Audit - Kevin O'Donoghue

• Audits will now be less frequent but broader in scope (5 - 6 major areas). Areas under review and/or for future consideration::
• Review of EOC's.
• The MOU signed for SUCF is intended to be audited.
• Some areas that Kevin is willing to help with:
1. DASNY charges - what are they based on and determined
2. Tax exempt leasing @ Hospitals
3. Acknowledged review of single audit report should have been SUNYized
4. Ambiguity regarding reporting unpleasant matters
5. Access to cash
6. Fraud
7. Theft
8. Capacity concerns

• Whistle blower provision and other financial types of reports
• Trying to better understand the interpretation of Sarbanes-Oxley
• Web based system for reporting/whistling if we include theft (i.e., OSC)
• Sexual harassment
• Health and safety
• New Committee (Audit): Len Davis, George LaRosa, Amy Thomas, and Judy Nolan have volunteered for this new committee.

Research Foundation - Chris Wade/Tim Jennings
Tim Jennings

• Discussed some additional role-outs and report monitoring (total of 8 indictors) capability.
• Sponsored Activity Report - will have same format; will be introduced on web in early February (by February 7). Activity by major sponsor will be included. Agency activity/Research Foundation corporate activity: campus will be able to see/use electronic reporting.
• In prior year, the Research Foundation put in requirement for an additional reserve of 1%. Working with auditors and finance committee to determine appropriate level/how to do it/determine reasonable corporate reserve. Early review indicates that $2.4 million is not adequate and should begin to be increased. A reasonable benchmark appears to be in the range of 10% of net assets, or $10 - $12 million.

Chris Wade

• Handed out summary list of issues for Research Foundation.
• Closeout construction projects - should be closed out upon beneficial occupancy.
• Updating policies and procedures; some also need to be written.
• Website usability review is currently under review.
• Research Foundation trying to position itself to help campus better.

Meeting was adjourned at 12:04 p.m.

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