Finance Managers Meeting November 7th, 2017

Transcription

1 Finance Managers Meeting November 7th,

2 Finance Managers Meeting Agenda Budget, State Fiscal Update Dr. Kenneth Jessell Budgetary Controls Update Hamza Lazrak Budget Process Live Poll Hamza Lazrak PCI Compliance Jose Zubimendi, Katherine Cochran & Helvetiella Longoria Business Services Update Rudy Vila 2

3 FY Budget and State Fiscal Update 3

4 FY University Operating Budget Student Loans, $284.2M, 20% FIU s FY Expenditure Operating Budget totals $1.4 billion Other $3.1M 0% E&G State Appropriations, $259.9M, 18% DSO's, $40.9M, 3% E&G Tuition, $222.0M, 16% Concessions, $0.9M, 0% Student Financial Aid, $163.6M, 12% Contracts and Grants, $122.8M, 9% Board Approved Fees, $0.4M, 0% Technology Fee, $10.5M, 1% Activities and Service, $20.6M, 1% E&G - College of Medicine, $50.3M, 4% Auxiliary Enterprises, $198.0M, 14% Intercollegiate Athletics, $25.9M, 2% Other includes Self-Insurance Program, Principal Payment of Debt, and Interfund Adjustments 4

5 E&G University Funding Summary $ millions State Appropriations Base Budget 240 $ millions E&G Base Expenditure Budget (457) Non-Recurring Prior Year Performance Funds (State Inv.) 1 (25) Base funding transfer to Performance Funding (FIU Inv.) (31) FY Performance Funding 1 58 FY Performance Funding (2) Legislative Adjustments (PO&M, RMI, Pass-throughs) 7 New Legislative Appropriations Total State Appropriations 260 PO&M, New Legislative Appropriations, Pass-throughs (18) E&G Tuition Budget 217 Incremental Tuition (enrollment growth) E&G Tuition Budget 222 Incremental Tuition Programs (Revenue Reallocation Model, Law, Shorelight) (1) TOTAL E&G REVENUES $ 482 TOTAL E&G EXPENDITURES $ (478) E&G UNALLOCATED $ 4 BOG SUBMISSION AVAILABLE FUND BALANCE 6 MINIMUM STATUTORY RESERVE 25 1 SUS state investment of $245M and institutional investment of $275M; performance funds allocations to institutions approved by Florida Board of Governors in their June 2016 meeting 5

6 Performance Funding by Institution Points Allocation of State Investment Allocation of Institutional Investment Total Performance- Based Funding Allocation UF 95 $55,061,011 $48,516,241 $103,577,252 USF 84 $45,396,585 $39,206,903 $84,603,488 UWF 82 $20,969,853 $12,068,867 $33,038,720 FSU 81 $38,547,492 $43,267,593 $81,815,085 UCF 78 $35,692,230 $40,062,707 $75,754,937 NCF 75 $2,469,535 $2,771,928 $5,241,463 FAU 72 $19,395,004 $21,769,903 $41,164,907 FIU 68 $27,468,290 $30,831,754 $58,300,044 FGCU 66 $0 $9,704,854 $9,704,854 FAMU 65 $0 $13,905,021 $13,905,021 UNF 58 $0 $12,894,229 $12,894,229 Total $245,000,000 $275,000,000 $520,000,000 6

7 Headcount Enrollment 70,000 60,000 50,000 40,000 52,980 54,099 53,832 54,914 56,438 56,786 6,446 6,651 5,353 5,227 6,075 6,215 1,056 1, ,150 7,261 7,252 7,399 8,007 8,101 7,556 65,000 9,246 1,003 10,250 30,000 20,000 38,217 39,081 40,101 40,686 41,276 41,865 44,500 10,000 - Fall 2013 Actual Fall 2014 Actual Fall 2015 Actual Fall 2016 Actual Fall 2017 Planned Fall 2017 YTD Fall 2020 Planned Undergraduate Graduate Professional Unclassified Total Enrollment by headcount includes all students enrolled in the university - projections are preliminary and subject to change Professional includes Medicine and Law Unclassified includes high school dual enrolled and non-degree students 7

8 Full-time Equivalent (FTE) Enrollment (State Fundable Only) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 FTE 18,089 FTE 18, ,985 1, FTE 18,702 FTE 18, ,944 1, ,709 14,672 15,065 14,930 Professional Graduate Undergrad - FIU Online 2.0 Undergraduate - Fall 2015 Fall 2016 Fall 2017 Budget Fall 2017 YTD Enrollment by FTE is based on the number of credit hours that students enroll - projections are preliminary and subject to change Undergraduate includes high school dual enrolled; Professional includes Medicine and Law 8

9 $ millions Auxiliary Enterprises $200 $69 $16 $30 $208 $70 $15 $29 Revenue Growth $220 $223 $221 $72 $76 $71 $15 $15 $16 $30 $30 $30 Food service, retail operations, student health Parking and Transportation Housing 50 $85 $94 $103 $102 $104 Academic Auxiliaries 0 FY Actuals FY Actuals FY Actuals FY Actuals FY Budget 9

10 Contracts and Grants Projected expenditures of $122.8M or 9% of total budget, comprising funding from many sources, including federal, state and local governmental agencies and private organizations, to support research, public service and training Budget Drivers: o Revenues and expenditures include DSO reimbursements of $19.7M from FIU Foundation, FIU Health Care Network (HCN), and Museums o Sponsored research grants are expected to be $4.0M more than the previous year as the Office of Research and Economic Development (ORED) anticipates greater private research funding offsetting slightly less Federal sponsored research 10

11 Student Financial Aid Projected expenditures of $163.6M or 12% of total budget, comprising funding from student financial aid fees, support from federal and state financial aid awards, institutional programs, as well as numerous private scholarships - Pell Grants - Florida Student Assistance Grant - Bright Futures - First Generation - Federal Work Study - FIU University-Wide and Colleges Budget Drivers: o o Projected expenditure decrease of $2.5M primarily due to lower Pell grants awards $1.8M and Bright Futures awards $1.6M, offset by additional funds allocated to Institutional Aid $0.4M and departmental scholarships $0.3M, and higher state allocation of Florida Student Assistance Grant $0.3M Approximately 37,400 students will receive financial aid including 21,114 Pell recipients (11,346 Pell students will be eligible for the maximum award of $5,920) 11

12 Fixed Capital Outlay PUBLIC EDUCATION CAPITAL OUTLAY (PECO) / CAPITAL IMPROVEMENT Critical Deferred Maintenance $3,872,803 School of International & Public Affairs (SIPA) II $12,701,439 Engineering Building Phase I & II $10,000,000 TOTAL CAPITAL OUTLAY (PECO) / CAPITAL IMPROVEMENT $26,574,242 CAPITAL IMPROVEMENT TRUST FUND PROJECTS (CITF) Graham Center Improvements $6,475,636 TOTAL CITF $6,475,636 TOTAL FIXED CAPITAL OUTLAY BUDGET $33,049,878 12

13 Florida Long-Range Financial Outlook Florida growth rates returning to pre-recession levels Growth in spending -- mainly Medicaid and K-12 public school operations -- outweighs growth in revenue Shortfall beginning FY around $1.15 billion Vulnerabilities: Includes Indian Gaming revenue share payments -- future revenues dependent on actions by the State and Seminole Tribe Does not include impact of Hurricane Irma Heavy reliance on strong tourism growth Based on national forecast which assumed a rise in the rate of recovery that has not yet materialized Source: Florida: Long-Range Financial Outlook as Adjusted for Hurricane Irma, October 12,

14 Impact of Hurricane Irma Prior to Hurricane Irma, outlook projected for FY surplus of $52 million Hurricane Irma recovery expenditures incurred by the state through mid October -- $141.7 million Adjusted outlook, including other adjustments -- shortfall of $145.1 million Further adjustments to the outlook due to Hurricane Irma: Additional response and recovery costs - likely non-recurring Revenue losses in FY during preparation and immediate recovery - non-recurring Revenue gains from rebuilding during longer-term recovery - non-recurring 14

15 Looking to 2018 Legislative Session State facing a tight budget year Projecting budget deficits beginning FY Legislature looking at university balances as a means to bridge deficits Governor and legislature continue to request universities demonstrate the value of current and proposed appropriations Prospects for incremental net tuition revenue limited in current environment 15

16 FIU E&G FY Outlook First quarter results -- mostly on target: Modest enrollment growth over plan, 0.4%, tuition revenue on target E&G Expenses 5% under target Hurricane Irma impact: Out-of-state tuition fee waivers for existing Puerto Rico and USVI students -- $250 thousand through Fall 2017 Additional revenue from 300 new, visiting students from Puerto Rico and USVI, some offset for instructional costs Preparation and recovery expenses upwards of $7.2 million Insufficient university reserves to bridge extended funding gap As a precaution, continue to refresh budget reduction plans 16

17 Budgetary Controls Update 17

18 Budgetary Controls Update

19 Budgetary Controls Update Errors vs Warnings Exceptions # Override of 'Exceeds Budget 902 Various Exception Errors* 93 Total 995 *Point In Time Notifications Sent Transaction Source Exceptions # Journals 916 Procure to Pay 48 Travel and Expenses 31 Total 995 Exceptions Journal Source # Payroll 832 Other GL Journals 66 Pinnacle 13 Student Financials 5 Total

20 Budgetary Controls Update Exceptions by Funding Source Budget Amendments Processed by OFP and AED Funding Source Exceptions # Exceptions % Budget % E&G (Excludes COM) % 56% Auxiliaries % 21% DSO Reimbursement % 2% All Other 47 5% 21% Total 995 Funding Source Amendment # Amendment % Auxiliaries % C&G 71 26% Financial Aid 42 15% E&G 20 7% Athletics 10 4% A&S 6 2% Concessions 3 1% Total % Escalation Process: Transfers Processed by OFP from the parent Department Funding Source Transfers $ Transfers # E&G Carry Forward $75, E&G $52,520 8 Cost Share $7,738 2 Total $135,

21 Budgetary Controls Update - BAA Executive Area OR College Fund Group is important (604 is part of C&G) Financial Aid and Fund 604: Provide Foundation Project ID Form is to add or reduce expense budget Amend revenue amounts No self-approval Approval routing: Budget Manager and EABM Contact budget@fiu.edu for help 21

22 Live Poll 22

23 Please text* budget to OR Go to pollev.com/budget *Standard text messaging rates apply 23

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31 PCI Compliance 31

32 PCI Compliance Agenda What is PCI DSS? The PCI Compliance Team Institutional Findings Remediation of Findings PCI Compliance Timeline Action Items for Finance Managers Q & A Key Contacts

33 What is PCI DSS? The Payment Card Industry Data Security Standards is a set of comprehensive requirements for enhancing cardholder data security, intended to help organizations proactively protect cardholder data.

34 Risk of Non-Compliance/Breach What are the consequences? Reputational Damage Fines (up to 500k per card brand) (Visa/MasterCard/Discover/American Express) Legal and Investigative costs Cardholder notification and credit monitoring for 3 years Potential classification as a Level 1 Merchant Report on Compliance (ROC) - Minimum 50k

35 FIU PCI Compliance Team The Controller s Office and the Division of Information Technology have joined efforts to meet PCI reporting requirements.

36 FIU PCI Compliance Team Liaison between BAMS and the Merchants New merchant requests and cancellations Communication to merchants of important upcoming changes Enforces requirements for new and existing merchant employees Record merchant fees Reviews merchant related contracts and departmental procedures Approve/Install PCI compliant POS/Terminal connections Perform internal scans and remediate any identified gaps Validate and enforce IT best practices Perform annual Merchant visits Raise PCI DSS compliance awareness Annual review of PCI policy and procedures

37 High Risk Findings Institutional Findings Solution s containing unencrypted cardholder data (CHD) are being accepted and processed. Unsupervised third party vendors with unknown security practices, procedures, or training are processing payment cards on behalf of the University on University equipment and/or network infrastructure Cardholder data is being transmitted and processed over open wireless networks Procedural Procedural Validated Point to Point Encrypted (P2PE)Solution and Procedural General-purpose computer workstations are used to process CHD. Validated Point to Point Encrypted (P2PE)Solution

38 Continued Engagement with CampusGuard Advice from a Qualified Security Assessor (QSA) Submission of the SAQ s in CampusGuards Portal Quarterly External Vulnerability Scans Reduce PCI Scope and Risk Establish Standardization Become and remain PCI compliant CampusGuard cost is allocated to merchants by Controllers office (FY18 highest tier $960)

39 Policy & Procedures Updating Payment Card Processing policy, Supplemental Documentation Departmental Merchant Procedure Template Merchant Device Inventory Sheet and Tampering Checklist Merchant Location Visitor Log Template/Logs will be available online: Merchants are required to upload documentation into SharePoint folder The PCI Compliance team will share the link to each merchant location

40 Bluefin Costs Payment Card Acceptance Solutions Initial Cost Recurring Cost Stand Alone Terminal (PAX S500) $ Mobile Payment Device (Nomad 2.0) $ POS Integrated Swipe Device (SRED key) $ Stand Alone Terminal (PAX D 210) $ Key Injection fee per device $ Device Monitoring Cost (monthly) $ P2PE Transaction Fee $ 0.10 Gateway Service fee per Transaction $ 0.05

41 On-going PCI Compliance Collaborative Effort Office of the Controller Finance managers Division of IT Internal Audit Direct Service Organizations (e.g. Foundation, Health Care Network, etc.) Business Services Office of the General Counsel Human Resources Office of Integrity and Compliance All Merchant Locations

42 Continuous Process PCI DSS compliance is much more than a project with a beginning and end- It s an ongoing process of assessment, remediation, and reporting - PCI SSC Report Assess Remediate

43 FY PCI Timeline October- December 2017 PCI Workshop Bluefin Deployment April June 2018 CampusGuard's Assessment January March 2018 SAQ Workshops Commence Review and Amend existing Contracts

44 FY PCI Timeline July September 2018 Remediation January March 2019 Vulnerability Scans Complete Review and Amend existing Contracts June 30, 2019 Submit AOC,SAQ, and scan reports to Bank of America October December 2018 Remediation April June 2019 Validation and Verification

45 Action Items for Finance Managers Meet with your merchants to discuss potential P2PE Bluefin device purchase Explore new billing opportunities offered by technological solution Assist merchants with budgeting/forecasting of costs (ie: Bluefin/CampusGuard) Evaluate if costs need to be pushed down to customers purchasing goods or services through sales price increase Evaluate your business model to see if your current activity remains viable based on additional costs Work with your merchants on updating policies and procedures

46 Questions

47 Key Contacts group address that has all the members on the PCI Compliance team, use this for any questions or concerns with regards to the ongoing PCI Compliance efforts and to inform us of potential changes to your current merchant process group address that has all the members associated with merchant services support, use this for any issues related to your current equipment, journal entries, Cybersource reports, merchant employee inquires, or closing of a location Bank of America Merchant Services (BAMS)

48 Business Services Update 48

49 Dining ITN Dining Services The Aramark contract expires June 30, 2018 Hired Envision Strategies as dining consultants to work on all phases of the ITN Expect to release the ITN by December

50 shopvenues 50

51 Shop.fiu.edu GC Bookstore Rotunda GC Bookstore Cafe GC Bookstore Patio GC Chili s Lounge GC Chili s Room GC Chili s Patio GC Chili s Dining Mango East Patio Mango North Lounge Mango South Patio Mango SE Commons Mango West Lounge Mango West Patio PG5 Commons PG5 Cyber Lounge PG5 East Patio PG5 South Patio PG6 Commons PG6 East Patio PG6 West Patio WUC Bistro by the Bay WUC Entry into Bistro 51

52 New Services 52

53 New Services 53

54 New Services 54

55 Finance Managers Meeting November 7th,