FINANCIAL FACTS. March 2018

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1 FINANCIAL FACTS March 2018

2 In This Month s Issue... OneSolution Functionality Changes Office of Grants and Contracts Memorandum Internal s Unaudited Financial Statement Highlights Jan

3 OneSolution Functionality Changes The Foundation accounting application, OneSolution, will be upgrading to a web version in a few months. Below is a breakdown of interface compasions between the two versions. 3

4 Please stay tuned for upcoming training sessions on the new version. Questions or concerns regarding the conversion can be directed to or 4

5 New Grants and Contract Accounts Purchase Order Requirements Effective July 1, 2018, the Grant Compliance Guidelines 2 CFR has been changed relating to all supply/ equipment/services where the total cost of the items/services equals to or exceeds $10,000. Per these new regulations, two written quotes/bids must be obtained for all purchases of supplies, equipment and services requests with the lowest bid awarded to that vendor. As a reminder, Foundation has the following requirements for purchase orders and the payment of goods and services relating to your grant and contract project. Purchases under $10,000: Foundation does not require the preparation of a Purchase Order Form for purchases of supplies and equipment to one vendor if the total order, including California sales tax of 9.5% and all necessary shipping costs, is less than $10,000. You may purchase the goods from the vendor without submitting a request for a Purchase Order Form prior to placing the order. If a vendor requires a purchase order in order to ship you goods, the Foundation will prepare a Purchase Order Form based on the Purchase Order Request Form and price quotation obtained in writing from the vendor. Supply/equipment purchases and services equal to or exceeding $10,000 to $25,000: A Purchase Order Form is required prior to placing the supply/equipment/service orders where the costs equals to or exceeds $10,000 to $25,000. The amount of the purchase must include California sales taxes of 9.5% and all necessary shipping costs. Effective July 1, 2018, per Grant Compliance Guidelines 2 CFR , for all supply/equipment/service where the total amount paid will equal to or exceed $10,000 to $25,000, two written bids must be attached to a Request for Purchase Order Form where the lowest bid must be awarded to that vendor. This form must be submitted prior to placing the order/agreeing to the consultant services. You must attach the written quotes to the Request for Purchase Order Form before it is submitted to Foundation for processing. Keep in mind; you cannot split orders to one vendor to avoid this policy. Purchases over $25,000 to $50,000 for materials, equipment and supplies: A Purchase Order is required when you are purchasing equipment and supply items from one vendor and the total order, including the California sales tax rate of 9.5% and all necessary shipping costs, exceeds $25, to $50,000. A minimum of three written price quotations from outside vendors or a sole source memo must be attached to the Request for Purchase Order Form when it is submitted to Foundation Financial Services for processing. You are required to accept the lowest price bid out of the three vendors if you are not able to justify a sole source purchase. Once the Purchase Order Form has been prepared, you may place the order with the vendor. 5

6 Purchases over $50,000 for materials, equipment, supplies and services: A Purchase Order Form is required when you are procuring supplies and services, and the total amount payable to the one vendor exceeds $50,000 on a yearly basis. A minimum of three written bids from providers must be attached. If the services necessary to your grant project can only be offered by one vendor due to the specialized services required, a sole source memo must be attached to the Request for Purchase Order Form when it is submitted to Foundation Financial Services for processing. Once the Purchase Order Form has been prepared, you may procure the services needed for your program. In lieu of three bids, sole source purchases on a non-competitive basis require very clear written justification via a memo, which is attached to the Request for Purchase Order Form. The written justification memo must clearly explain why this particular supply, equipment or service is unique to your grant project and is only offered by one vendor. Some of the items that must be explained in the sole source memo include but are not limited to: Unique performance factors of products specified Why is this particular piece of equipment or supply item unique to your project? Why are these factors are required? Why are the unique features for this purchase necessary for the grant project s programmatic objectives? What other products have been evaluated and rejected? Why? Did you research similar pieces of equipment or supply items from other vendors and why were they rejected? Why is the chosen vendor the only vendor that offers this particular piece of equipment? How did you research other vendors to assure this vendor is the only vendor that offers the unique features needed for this grant and contract project? An example of additional points that should be covered in the sole source memo is included in this memo. It is extremely important that the sole source memo is clear as to why you have chosen one vendor for purchases of goods and services exceeding these limits. Please use this template which should be signed by an authorized signor of the account and attached to the Request for Purchase Order Form. Expenditures for grant and contract accounts meeting any of the specifications detailed above, must follow this purchase order policy for the timely payment of invoices. If a purchase of equipment or supplies and/or services exceeds the limits detailed in this memo and a Purchase Order Form was not prepared, the items will not be paid until compliance with this policy. Foundation processing time for Request for Purchase Orders is approximately three days. 6

7 Internal s To better serve you, Foundation Financial Services has appointed Internal Account s for each college or division of the university for all Foundation accounts. If you have a question or concern regarding your Foundation account, you are able to contact your Internal Account at the Foundation for assistance. The following is list of colleges and divisions and their respective Internal Account : COLLEGE/ DIVISION Athletics Department Pauline Anongdeth General Business College of Education Jason DeBellis Accounting Specialist College of Extended University NAME TITLE CONTACT INFO Jason DeBellis Accounting Specialist University Library Jason DeBellis Accounting Specialist Alumni Affairs Karen Sandoval Financial Reporting College of Business Karen Sandoval Financial Reporting University Advancement Office Collins College of Hospitality Management Karen Sandoval Karen Sandoval Financial Reporting Financial Reporting College of Engineering Karen Sandoval Financial Reporting College of Letters, Arts and Social Sciences College of Science Debbie Schroeder- Linthicum Debbie Schroeder- Linthicum Grants & Contracts Director Grants & Contracts Director Academic Affairs Office Debra Chavez Financial Systems President s Office Debra Chavez Financial Systems Administrative Affairs Office College of Environmental Design Debra Chavez Debra Chavez Financial Systems Financial Systems I&IT Debra Chavez Financial Systems College of Agriculture Christine He Senior Financial Analyst Student Affairs Christine He Senior Financial Analyst x2907 pswong1@cpp.edu x4678 jmdebellis@cpp.edu x4678 jmdebellis@cpp.edu x4678 jmdebellis@cpp.edu x2903 karens@cpp.edu x2903 karens@cpp.edu x2903 karens@cpp.edu x2903 karens@cpp.edu x2903 karens@cpp.edu x2961 dlschroeder@cpp.edu x2961 dlschroeder@cpp.edu x2909 debrachavez@cpp.edu x2909 debrachavez@cpp.edu x2909 debrachavez@cpp.edu x2909 debrachavez@cpp.edu x2909 debrachavez@cpp.edu x2941 dhe@cpp.edu x2941 dhe@cpp.edu 7

8 Unaudited Financial Statement Highlights January 2018 EXECUTIVE SUMMARY The purpose of this article is to provide information related to the unaudited financial performance of the Foundation for the month of January The Foundation generated a monthly surplus greater than budgeted, the majority due to endowment investments, general portfolio investments and agriculture activities. ENTERPRISES Summary For the month ended, the Enterprise operations generated a surplus greater than budgeted mainly due to University Village and Kellogg West. Bronco Bookstore Revenues are 94% or $105,419 short of budget due to new textbook sales and rentals and soft good sales. Cost of goods is 70% versus 69%; payroll and expenditures are on budget at 16% of budgeted revenues. We appreciate the university s support and the president s request that what we spend on campus stays on campus. Dining Services Revenues exceed budget by 1.6% or $36,239. These revenues consist of 57% from retail and 43% from board operations; cost of goods sold is 31% versus 33% of budget, salaries and expenditures are on budget at 57%. Retail revenues exceed budget 8.5% or $104,859; cost of goods is 33% versus Monthly Budget Monthly Actual Monthly Variance Y T D Budget 35% of budget, salaries are 37% versus 35% of budget and expenditures are 23% versus 27% of budget generating a surplus of $90,626 versus a budgeted surplus of $24,229. Board operation revenues are 94% or $68,620 short of budget; costs of goods are 29% versus 31% of budget, salaries are 25% versus 22% of budget and expenditures are 29% versus 28% of budget generating a surplus of $181,508 versus a budgeted surplus $199,640. Y T D Actual Enterprise Activities Bookstore 202, ,771 (27,257) 190, ,359 Dining Services (7,739) (26,027) (18,288) 211,355 97,983 Kellogg West Conf. & Hotel (30,650) 43,183 73,833 24,796 51,052 University Village Housing 833, ,457 (21,111) 807,172 1,045,356 Subtotal: 997,207 1,004,384 7,177 1,234,311 1,390,750 General Activities Foundation Administration 34,662 (52,304) (86,966) (95,552) (283,005) Real Estate Development 22,061 36,622 14, , ,853 Building Rental 16,236 32,096 15,860 66, ,016 Subtotal: 72,959 16,414 (56,545) 370, ,864 Designated Funds (260,319) (151,459) 108,860 (911,117) (620,853) Other Activities Research Office ,998 20,000 Agriculture (146,428) 109, ,326 (239,400) (180,569) Continuing Education 359, ,150 (142,806) 628,135 1,056,974 Fdtn Programs-Unrestricted 0 23,037 23, ,946 Subtotal: (213,528) 350, , ,733 1,004,351 Operating Surplus (Deficit) 1,023,375 1,219, ,063 1,102,683 2,007,112 Investments-General 217, , , ,298 2,556,044 Portfolio Unrestricted Surplus 1,240,895 2,161, ,512 1,800,981 4,563,156 (Deficit) Fdtn Programs-Restricted 202,423 (205,789) (408,212) 2,482,716 3,351,609 Endowment Programs- Restricted Assets Transferred to University Net Surplus/(Deficit) Restricted Net Surplus/(Deficit) Grand Total: 249,822 4,265,755 4,015,933 (1,105,565) 8,112,340 0 (168,878) (168,878) 0 (723,180) 452,245 3,891,088 3,438,843 1,377,151 10,740,769 1,693,140 6,052,495 4,359,355 3,178,132 15,303,925 8

9 Kellogg West Conference Center & Hotel Revenues exceed budget by 46% or $58,611; salaries are 36% versus 48% and expenditures are 32% versus 54% of revenues generating a surplus of $57,846 versus a budgeted surplus of $199,640. University Village Revenues exceed budget by 0.24% or $2,534 and occupancy is on budget at 97% for the academic year, salaries and expenditures are 63% versus 60% of budget generating a surplus less than budgeted. GENERAL ACTIVITIES General Activities reported a surplus greater than budgeted mainly due to administration DESIGNATED GIFTS Designated Gifts generated a year to date deficit of $620,853 versus a budgeted deficit of $911,117 or 68% of budgeted deficit. OTHER ACTIVITIES Sponsored Research generated a year-to-date surplus of $20,000 versus a budgeted surplus of $20,000; year to date indirect revenues are 96% or $40,293 short of budget and direct grant expenditures are short of budget by 1.57% or $126,928 generating an effective rate of 10.9% versus the budgeted rate of 11.5%. Agriculture-Aid-to-Instruction year-to-date revenues are 90% or $241,852 short of budget, costs of goods are 15% versus 22% of budget and payroll and expenditures are 93% versus 88% of budget generating a year to date deficit of $180,569 versus a budgeted deficit of $239,400 due to Beef Unit, Arabian Horse Center, Sheep Unit and Pumpkin Festival. The cash deficit account balances of these programs is $1,657,056. The Office of the Provost and the Huntley College of Agriculture with assistance from the Foundation have developed an analysis of the past 10 years and a 5 year projection in order to develop a sustainable, integrated collegewide operating budget. The outcome of this effort will include a plan to address the college s cash deficit account balances with the Foundation. The Provost provided an update to the Foundation s Board of Directors and Finance Committee at the February 2018 meetings. Continuing Education year-to-date revenues are 88% or $411,850 short of budget; payroll and expenditures are 66% versus 82% of budget generating a year to date surplus of $1,056,974 versus $628,135 budgeted mainly due to prudent fiscal management efforts. Foundation Programs Unrestricted includes the activities that are not third party donor-imposed stipulations. Year to date revenues exceed budget by 83% or $162,258 generating a year to date surplus of $107,946 versus a zero budget and forecast. Endowment/Investment Endowment contributions year to date are 73% or $80,570 short of budget generating a surplus of $185,962 versus a budgeted surplus of $284,083. Year-to-date endowment investments outperformed the budget as unrealized/realized investment earnings are $12.3 million versus budgeted earnings of $2.8 million less endowment distribution of $3.9 million versus $3.8 budgeted resulting in a surplus of $7.9 million versus a budgeted deficit of $1.4 million. Foundation Programs Restricted includes the activities that are third-party donor-imposed stipulations. Year-to-date revenues exceed budget by 1.07% or $151,794; expenditures 87% or $824,927 short of budget resulting in a net surplus of $3.4 million versus budgeted surplus of $2.5 million. If you have any question or need additional information, please contact David Prenovost at dfprenovost@cpp.edu or call (909)

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