SUBOA Meeting Minutes December 3rd and 4th 2014 Hilton Garden Inn 12/3/14 Members in attendance – see attached sheet President’s Report – Paul Tucci: Introduced new member, Gerhard Voggel – Potsdam Budget presentation made to Chief Academic Officers in October. Will try to keep the lines of communication open with this group in the future Association of College Trustees conference was attended by Josh Sager and Paul to discuss the SUNY budget process. Paul was invited to be SUBOA’s representative to participate in SUNY Excels (performance based measures to be put in place for distribution of new SUNY funds). Paul thinks another campus would be a better representative, if anyone is interested they should let Paul know. Meeting December 15th at System Administration. Todd, Paul and Val talked with the Educational Advisory Board. They do best practice research, and small research projects for individual campuses. A number of campuses participate in some of the programs they offer, but no consistent pricing. System is discussing a contract with them. Asking them for an overall pricing structure that campuses can use. Pricey and need to commit to using them in order to make it cost effective. If System continues to contract with them we may be able to take advantage of their services. Elsevier- Library directors wrote to the Chancellor (copy to Chief Academic Officers and Presidents) asking for assistance with the funding of this contract. The Provost’s Office has pulled their funding support which moves additional cost to the campuses, some of which are hit harder than others. Can CUNY or the State Library System be brought into the discussions to attempt to obtain better pricing for the contract? The SUNY assessment was supposed to cover all charges to campuses, and SUNY’s reduction of funding support is contrary to this. Elsevier is basically a sole source contract, and is very valuable to the campuses that use it. Chancellor is interested in meeting with Paul and some other SUBOA members. She was also invited to be a dinner or annual meeting speaker. Chair of the SUNY Board of Trustees Carl McCall has asked for a meeting with SUBOA representatives on MWBE and the impact of the new regulations. Mike LeVine and Paul met with the SUNY Purchasing Group in October to discuss our efforts at revising the new SUNY Procedures, and steps that could be taken to support the need for changes in the future. The Western NY Purchasing Group is developing a template that can be used to track key metrics related to the impact of the new procedures. This template will then be shared with the entire SUNY Purchasing Group.
Research Foundation – OM evaluations continue, investment income is still not being returned to the campuses that earned it, F&A return to campuses has been reduced, and the Operations Manager Finance Committee no longer meets. SUNY HR Policy on 29 hour limit for students - RF has a policy that is much more flexible than SUNY’s, SUNY’s issue is that they have no way to pay benefits to students if they work over the 29 hour limit. According to Sandra Casey, these issues should be addressed to Julie Petti. Oswego asked for a waiver from the requirement that only SUNY students can be hired by the campuses and received it.
Vice President’s Report – Val Nixon: Annual meeting at Doral in Purchase NY on May 27th to the 29th. Looking for ideas on key note, presentations, sponsors, etc. Secretaries Report – Mike LeVine All minutes and handouts are included on the website thanks to Joanne Navarro. Joanne is also looking at changes to update the website. Treasurer’s Report – Judy Nolan $4,302.48 balance, not including membership dues Please pay membership dues if you haven’t yet Plan to cut costs rather than raising membership dues Last year we collected $23k in dues revenue, costs for Hilton $10,400; meals $6k. Leaves about $6,500 over the dues revenue. $1,800 deficit for last year after annual meeting costs. Credit Card processing costs are a large cost, therefore we would like to have campuses pay by check. Please indicate school name on the remittance so it can be accounted for properly. Encourage early registration for annual meeting. New sponsorships will help cover our costs. Hilton Garden meeting with Paul and Judy – issue with them charging sales tax, informed that they cannot honor the state rate for rooms (depends on occupancy level in rooms), we will need to contract with them in advance with dates defined at the annual Executive Committee meeting. We will look at alternatives so that we can get more space? September 16 and 17 meeting will be scheduled at Hilton Garden Inn for 2015. Liaison Reports and Other Current Issues A/B/B Kate Larsen New Paltz hosted last meeting, doing some professional development at each meeting. BI - Buffalo State to continue presentation of what they are doing at meeting next week Julie Petti to discuss interest in encumbering temporary service costs. Concern over DRL reports issued by SUNY Concerns – new systems and need for double entry, ex: MWBE PRISM system
Open Floor: Belief that SUNY campuses are providing payments or covering costs of the municipality in which they reside. Question was is this happening on any SUNY campuses - Alfred helps pay for an ambulance service, and water rates have been raised significantly. New Paltz has agreement to provide fuel to local police and fire. Oneonta has agreed to purchase some advertising on local transportation service. Plattsburg was pressured by the local Senator, now provides about $20k per year for local fire department. SUNY Legal has advised not to enter into arrangements since that would set a precedent for other municipalities to assess their local campuses. Risk Management Survey issued by Mike Abbott – response due by next Tuesday
Tom Hippchen – Procurement (powerpoint attached) SUNY Flex – yearly negotiations with OSC, preapproval of technology contracts are an issue, legislative exemption of service contracts sunsets in 2016. OSC Audit of procurement at 8 campuses – nine recommendations in draft which have been responded to, still waiting for a final report. Strategic Sourcing – successful pilot program for exemption from the formal competitive procurement process for purchases above the $125k threshold (multiple campuses purchasing the same item/service). Grainger Contract – 11% savings, 50% increase in MWBE utilization. However, we have not taken full advantage of this since some campuses have not implemented a campusspecific hotlist, made purchases directly from Grainger rather than the MWBE resellers identified in the contract, not taking advantage of services provided by Grainger. Office Max Contract – NYS preferred source program for People Who Are Blind, and NYS Industries for the Disabled, and MWBE program. Other Strategic Sourcing initiatives – National IPA for no cost assistance with strategic sourcing initiatives, U-wide agreement with eWorks for recycling electronics. eProcurement – developed RFP and very close to issuing, need to be sure technical requirements are in place so system will interface with all SUNY and State systems. Need Dave Powalyk’s signoff on the RFP’s technical requirements.
Mike Abbott, University Audit (handout attached): OSC Procurement Audit – will help to support renewal of SUNY Flex legislation. Are there new areas of restriction that we would like to have removed as part of the negotiation process? Enterprise Risk Management – audit committee, Board Chair, and Chancellor are asking what SUNY is doing on this. SUNY has components of this (internal control program, compliance program, etc.). No formal process or policy in place however. Looking to formalize the process, and expand the role of the compliance committee into a risk committee. Mike is looking for feedback and possibly volunteers to participate.
Foundation Conflict of Interest Reporting – conflicts identified by board members need to be reported to SUNY. A memo will be coming out asking for this information. Campus Fraud Hotlines – required to be on the website, SUNY Audit will be asking campuses where they could not find one about the status of this. OSC Audit of Sabbatical and Other Leaves – reports required after sabbatical not always filed on time, return to campus requirement not met, and accrual of leaves were exceptions noted. OSC audit of Tuition Assistance Program – requirement for full time looked at closer to ensure that all hours taken by a student are creditable to a degree. Empire State Development audit of MWBE compliance – two campuses selected for detailed review and also looking at SUNY’s largest contracts.
Sandra Casey, Legal: Search for new Counsel underway, probably six months StartUp NY templates to be finalized soon by OSC, to address various options. Kingsley Osei is point person on these contracts. He will be doing a workshop for all campus counsels. Patents and Inventions Policy – not changing percentages, but changing to be more consistent with what other institutions around the country are doing. Will require public comment because it is a change in rule making. RFP template distributed to the Procurement Group, will help reduce issues with OSC Sexual Assault Policies – Governor wants SUNY to be the leader in the nation. Includes uniform definition of consent, amnesty provision, uniform climate survey, uniform victims bill of rights, required training, etc. Policy rolled out on Monday. Changes are required to the Student Code of Conduct and these must be adopted by the College Council. Child Protection Policy – required training to be available in January
12/4/14 Members in attendance – see attached sheet Josh Sager (powerpoint attached): Executive budget expected in early February. Provided overall context for the upcoming State financial situation and budget development. Governor’s goal is to limit spending growth to 2%. SUNY 2015/16 Budget Request - Salary funding for negotiated increases $131.4m cumulative, spending authority for tuition increases, Statutory Colleges, misc. other initiatives (master innovators, open SUNY, linked activities between SUNY and other state budgets).
Teaching Hospitals – no additional funding requested, asking for forgiveness of debt service repayment, separate operating accounts for hospitals, authority to spend their own revenue. Fall revenue update - $3m deficit across all campuses, 16 over and 13 under projections. Tuition Credit – legal opinion by legal counsel that the tuition credit can only be applied to tuition and the college fee. Estimated $1.5m to 2.0m unused system-wide. LICH – sale finalized, $600m outstanding debt (includes $75m loan from SUNY), may be negotiated down to about $310m. Process review for assessments – board approved 2014/15, waiting for new Provost and CFO approval before distributing assessment. 2015/16 will probably be addressed at the January Board meeting. StartUP NY – status of approved plans included in powerpoint. Course Based Fee Update – will look for SUBOA participation. Various issues to be addressed.
Nora McCabe – Capital Program Update (powerpoint attached): 2015/16 Budget Request – asking for multi-year capital plan, summary in powerpoint Educational Facilities, Base Critical Maintenance - $3b requested of $7.2b identified by campuses. Educational Facilities, Strategic Initiatives - $1b requested of $2.3b identified by campuses. Hospitals - $500m requested - $300m for critical maintenance and $200m for major strategic initiatives. $22m on-line learning support systems for open SUNY and $25m for the revitalization of downtown Albany (move to system administration offices in leased space to space downtown.) Advocacy centered around the benefits of a multi-year capital plan. Changes to B1184 approval process – thresholds increased for approval, MWBE remains at 20%, must now provide MWBE goal justification on the B1184, must obtain approval of MWBE goals for all capital design and construction contracts between $100k and $1m and change orders/purchase orders between $20k and $50k. Guidance to be coming from SUNY to campuses. $49m and $82m special funding in B1184 process – projects still under review at the Capitol, SUNY has no information on whether those funds will be released or not. Governor’s Office was not happy with the Senate funding specific projects and may try to undo this. Campuses should go to legislative advocacy if necessary.
Jeff McGrath (powerpoint attached): KPMG Financial Audit Update – clean opinion, no material weaknesses or deficiencies, some control deficiencies (identified in powerpoint). Summary of cash balances – at all-time high as of last quarter
Internal Control Program – new Policy and guidelines. Training module being developed to be rolled out in the Spring, developed tools for two high risk areas – general control environment and computer operations. Certifications due from campuses by end of March Affiliated Entities – need to address gaps in guidelines, draft policy for SUNY Board approval, update guidelines and requirements for all affiliates Housing – presidential housing reviewed for IRS compliance. IRS Penalty Notices – 2011 1098T – received official waiver of all penalties. 2012 1098T notice received and SUNY requested waiver of all penalties. Unrelated Business Income Survey due from campuses January 2 nd. Overview of SUNY annual financial report included in powerpoint.
Karren Bee-Donohoe – Capital Facilities Update Construction authority on campus – auxiliaries and RF cannot do construction on campus. Guidance of who can, is included on the SUNY website. Ebola – reminder that campuses should be doing drills. Barbara Boyle is contact for additional information. StartUP – zero dollar lease guidance to be provided shortly, already sent to StartUP contacts and RF Operation Managers. Lease templates are being developed. DASNY FEE Update (powerpoint attached) Paul Koopman, Geoff Arnold, Denise Marcella 100% of DASNY revenue is from fees charged to clients Debt Issuance and Bond Administration; construction management services are major service centers (80% of activity is construction management) Costs for construction management include direct and indirect labor, M&O Estimated overhead rate calculated at the beginning of the year, and an actual rate is calculated at the end of the year and adjusted as part of the following year’s bill. Fee estimates are presented at the beginning of all projects. Estimates are considered “not-to-exceed” estimates. Factors impacting the fees – construction delivery methods (CM at risk vs. general contractor), required project services, risk assessment (level of design review, level of on-site inspection services and duration) Fees can be incorporated into the cost of the project or included as part of the annual debt service rental billing. Stacey Hengsterman, University Relations and Chancellor’s Chief of Staff Main priority of Chancellor is to improve communications with Presidents. MWBE – governor’s priority and not going away, but we need to be doing it the right way. Board Chair would like to meet with SUBOA representatives on this. o Accuracy of data is a concern o New procedures and the impact they have on campuses as well as whether they will really impact our ability to meet goals.
o Need to define the role of system administration with this effort o SUBOA letter previously issued provides a good summary of our concerns. We can provide additional examples as needed. Budget – governor has no desire to use the limited spending on increases in faculty salaries, focusing on rational tuition extension (extend it to 2020 like the program name implies) probably not at $300/year level, $50m per year for five years for investments to assist student completion and retention. Capital advocacy document to be distributed to President’s next week. Will push need for five year plan.
Ray Haines, Employee Relations GSEU contract in place. Retroactive funds were fully funded. Don’t advance funds to contractually funded union programs. Campus closings – at campus we can’t send people home and tell them they don’t have to charge accruals. On-call/Recall – all arrangements that have been in place are still in place and the contract does not affect them. Buyouts of employees – OSC takes the position that pension contributions are not included in the buyout payments. Dave Powalyk (powerpoint attached) VMWare – 53 campuses signed a PIA, all with projected reduced costs. Now moving to a RFQ Microsoft – 52 campuses for a total of $4.3m, slightly less than last year SPSS – for 14/15 SUNY has enough campus participation to cover the contract cost Data Breach Insurance – application submitted, broker is shopping the insurance Security Assessment Questionnaire - being updated and planned to be submitted to campuses in February. Elsevier – negotiations have been re-opened, don’t expect to get any additional concessions. Provost agreed to fund five year program at $2.5m. Data Center Strategy Team – focus on where the service is best provided. Model developed to help campus determine what level of service they desire, what level they have, and where it is best to get upgraded services if they desire. Specifics of model to be shared with CIO’s shortly. Decisions on models should come from the CIOs and not from System Administration.
Campus/Representative Albany – Center Jim VanVoorst Kim M. Bessette Alfred State College Valerie B. Nixon Joe Greenthal
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Alfred – Ceramics Giovina M. Lloyd Lisa Porter Binghamton – Center Michael McGoff JoAnn Navarro Brockport – College James Willis Karen Riotto Buffalo-Center Laura E. Hubbard Laura Barnum Beth A. Corry Buffalo State Michael LeVine James Thor Rebecca J. Schenk Canton College of Technology Shawn Miller Cobleskill – ATC Carol Bishop Carol Vosatka Laura Gross Cornell – Contract Colleges Davina A. Desnoes Rose Wright Charles Kruzansky Cortland – College Mary K. Murphy Jody Maroney Amy Berg (CCIO Rep.) Delhi – College of Technology Carol M. Bishop Bonnie Martin Amy Brown Empire State College Paul Tucci Rick Barthelmas
Fredonia – College Liz Praetorius Karen R. Porpiglia Ann Aldrich
Geneseo – College James B. Milroy Brice M. Weigman
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Plattsburgh – College John R. Homburger Diane Wyand
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Potsdam – College Gerhard Voggel David Britt
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Stony Brook University Barbara Chernow Lyle P. Gomes Mark Maciulaitis Kate Larsen (ABB) SUNY IT at Utica/Rome Susan Head Scott Bateman
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Research Foundation Chris Wade Michelle Aguilar
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Maritime Scott Dieterich Keith Murphy Downstate Medical University Alan Dzija Astra Bain-Dowell Melanie Gehen Upstate Medical University Eric Smith Jeffrey Smith
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Morrisville – College of Technology Glenn Gaslin Mary Ellen Burdick New Paltz – College Michele Halstead Julieta Majak Old Westbury – College Len Davis Deidre Dowd Oneonta – College Todd Foreman Sue Clemons Julie Roseboom Optometry David A. Bowers Marcel Catafago Oswego – College Nicholas A. Lyons
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Environmental Science & Forestry Joseph Rufo David Dzwonkowski Farmingdale – College George P. LaRosa Richard Hume
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Purchase – College Judy Nolan Roseann LoParrino
System Administration Josh Sager, Jeff McGrath, Tim Lever Dave Powalyk, Karen Bee-Donohoe Kerry Brousseau, Kevin Donlan Drew Wallis, Joe Ryan, Dan Esposito Ray Haines, Stacy Hengsterman Tom Hippchen, Mike Abbott, Sandra Casey SUNY Construction Fund Nora McCabe, Bob Haelen
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