Finance & Administration Committee February 6, 2019 1
Agenda ● Call to Order/Roll/Declaration of Quorum ● Consent Agenda ● Vice President’s Report ● ERP Update ● FY19-21 State Budget Update ● TRAC Update Report ○ Status and Future Plans ○ Student Member Comments (ASPSU President Luis Balderas Villegrana) ● Establishing FY19-20 Tuition & Budget Parameters 2
Approval of Minutes November 13, 2018 Meeting 3
Vice President’s Report 4
Vice President’s Report F&A Committee 2018-19 Current Workplan ● Review internally prepared financial statements on a quarterly basis, including budget to actual performance ● Tuition and budget setting ● Multi-year enrollment forecasting ● Enterprise systems Bold indicates item to be discussed at today’s meeting 5
Vice President’s Report Employee Engagement 85% participation (366/430) 57% increase in engaged employees from 2015-2018 Follow up : Surveys, focus groups & department discussions to gather more feedback and information Actions & Approach: ○ Greater focus on professional development ○ Expanded manager & leadership training ○ Collaboration across FADM & OIT leadership teams ○ Division-wide events twice per year 6
National Average 8
Vice President’s Report Upcoming Events ● 4th & Montgomery ○ Broke ground in December, ceremony in January ○ PSU providing accounting and contracts support for all owners ○ Q Bond sale 2/21/2019 ○ Preparing for G and F Bond Sale in March 2019 ● Acquisition of 4th & Lincoln Property ● 724 Harrison (old Neuberger Hall) - continued construction 9
ERP Update Kirk Kelly 10
Enterprise Resource Planning 11
Enterprise Resource Planning Enterprise Resource Planning (ERP) in Higher Education 12
Enterprise Resource Planning Goal 5: Innovate for Long-term Stability Initiative 3.1: Eliminate or modernize practices or systems that are duplicative, inefficient or add unnecessary costs, taking into account costs generated by units and paying particular attention to costs incurred by students. Initiative 3.2: Improve campus infrastructure and systems. Initiative 2.3: Follow principles of improving quality, performance, efficiency and outcomes, and supporting our core operations. 13
Enterprise Resource Planning Modernization of Administrative Processes and Systems (MAPS) ● Evaluate and recommend a portfolio of improvements ● Adopted a holistic approach to change management through the lens of Process, Culture, and Systems 14
Enterprise Resource Planning Next Generation ERP Readiness 15
Enterprise Resource Planning Outcome ● Recommendation to continue with current Banner platform ○ Transition costs are very high - $20 million over five years ○ Next Generation ERP Student Information Systems are not mature yet ○ Risk of failure is high without campus-wide commitment and appropriate staffing resources ○ PSU has identified higher priority projects for the next 2-4 years 16
Enterprise Resource Planning Thanks to All Involved MAPS Steering Committee: Kevin Reynolds (Chair) John Fraire, Sukhwant Jhaj, Kirk Kelly MAPS Cost/ROI Committee: Andria Johnson (Chair), Jim Adkins, Jason Abbott, Dawn Boatman, Derek Davis, Isaac Dixon, Jennifer Kahl, Christina Kraus, Amanda Nguyen, Hans VanDerSchaaf, Ellen Weeks MAPS Guides: Around 100 employees from schools, colleges, and administrative departments who attended focus sessions, vendor demonstrations, and provided feedback at multiple points during the evaluation process. 17
FY19-21 State Budget Update Kevin Neely Kevin Reynolds 18
FY19-21 State Budget Update Looking Forward to FY19-20 Budget (2019-21 Biennium): Key Dates and Challenges Fall 2018 General Fund Expenditure and Enrollment Forecasting September - January General Fund Scenario Planning Governor’s Recommended Budget Early December 2018 Co- Chairs’ Budget Framework February - March 2019 Budget Context and Initial Guidance February 2019 April 2019 Tuition Proposal April - June 2019 Budget Building 19
FY19-21 State Budget Update 20
FY19-21 State Budget Update 21
FY19-21 State Budget Update 22
FY19-21 State Budget Update 23
FY19-21 State Budget Update 24
FY19-21 State Budget Update 25
Tuition Review Advisory Committee Update Andria Johnson 26
TRAC Update Report Tuition Review Advisory Committee (TRAC): Purpose ● The TRAC is established to provide a written report to the President of the University with recommendations regarding tuition and mandatory enrollment fees. ● In compliance with HB4141, TRAC is responsible for: ○ Providing opportunities for ASPSU and other students to participate in the tuition setting process ○ Gaining an understanding of PSU’s budgeting process and the HECC allocation mechanism ○ Providing recommendations/observations about tuition & fees that consider the impact on historically underserved students, the mission of PSU and alternative scenarios 27
TRAC Update Report Tuition Review Advisory Committee (TRAC): Membership ● TRAC membership consists of: ○ VP for Finance & Administration, Chair ○ Provost and VP for Academic Affairs ○ Director of Student Financial Services ○ University Budget Director ○ Faculty Senate Budget Committee Co-Chairs/Faculty ○ ASPSU President ○ ASPSU Legislative Affairs Director ○ 5 students at large ● All meetings are open to the public 28
TRAC Update Report Tuition Review Advisory Committee (TRAC): Progress To Date ● Set up a website that is accessible to the public and includes meeting times and agendas, materials and minutes ● Met five times so far and discussed topics such as PSU Budget Basics and the HECC Student Success & Completion Model ● Provided requested analysis and figures including hard copies of the Budget Overview Book and the Financial Dashboard ● Student Success team presented on the actual impact of investments in student success at PSU ● Several robust conversations sparked by the following question: ○ “Given PSU cost drivers, what are alternatives to increasing tuition while maintaining quality?” 29
TRAC Update Report Tuition Review Advisory Committee (TRAC): Future Plans ● Four more committee meetings ● Three student-focused budget forums throughout March and early April ● One faculty/staff-focused budget forum in March ● Finalized report to the President and Board of Trustees that includes a statement from ASPSU and any minority opinions of committee members 30
TRAC Update Report TRAC Student Member Comments ASPSU President Luis Balderas Villegrana 31
Establishing FY19-20 Tuition & Budget Parameters Kevin Reynolds 32
Establishing FY19-20 Tuition & Budget Parameters Current Service Level (CSL) Based on FY19 General Fund Budget Personnel Expenses $15.5 million Services and Supplies Inflation $1.6 million Estimated Recurring Innovation & Student $1.5 million Success Investments* Total Estimated Annual Expenditure $18.6 million Increase Current Service Level for FY20 is budget +5.6%, overall estimated cost increases 6.1% * Strategic Investment planning process underway - estimated completion March 2019 33
Establishing FY19-20 Tuition & Budget Parameters Tuition Setting Choices ● When (April or later) ● Where (% and $ reduction) ● Rules of movement ● Consequences for each 34
Establishing FY19-20 Tuition & Budget Parameters HECC Approval and HB4141 “The governing board may not increase the total of tuition and mandatory enrollment fees by more than five percent annually unless the board first receives approval from: (A) The Higher Education Coordinating Commission; or (B) The Legislative Assembly.” For HECC approval “A plan for how resident tuition and mandatory enrollment fees could be decreased if the public university receives more moneys from the state than anticipated.” 35
Establishing FY19-20 Tuition & Budget Parameters Typical Time Frame April*: Tuition Proposal May/June: HECC Approval (if necessary) June: Budget proposal *Later changes to tuition require financial aid repackaging 36
Establishing FY19-20 Tuition & Budget Parameters Set Resident Undergraduate Tuition Above 5% in April: Considerations ● Triggers HECC arduous approval process that may not be necessary ● Immediate negative impact on current and future students - Recruitment and retention ● Transparent about consequences of low increases in PUSF on tuition rates ● Potential to set at 5%, and to add a trigger to raise tuition later if PUSF is lower than anticipated 37
Establishing FY19-20 Tuition & Budget Parameters Delay Setting Resident Tuition to Close to End of Session: Considerations ● May avoid HECC approval process until necessary ● Potentially less transparent about consequences of low increases in PUSF on tuition rates ● Avoids a damaging and potentially unnecessary message which would impact current and future students ● Final tuition decision, which may be an increase > 5%, made late in the spring or early summer (reduces student participation in final decision) ● Complications with budget setting - many unknowns 38
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