Please indicate your approval of the attached 2017/18 Preliminary Cost Allocation Plan with your signature below.

Transcription

1 SJSU SAN JOSE STATE UNIVERSITY April 14, 2017 Finance Office of The Associate Vice President Accounting Services Accounts Payable Budget & Risk Management Bursar's Office Contracts & Purchasing Distribution Services Finance Support One Washington Square San Jose, California 95 I Voice: Fax: To: FROM: Charlie Faas Vice President of Ad...U.~t... Josee Assoc' The Office of Budget and Risk Management has drafted the 2017/18 Preliminary Cost Allocation Plan for Non-CSU Operating Fund Entities. Attached is a packet that includes a summary of this plan and backup documentation. The figures have been presented based on currently available expenditure data: 2017/18 Early Bird Risk Premium projections; information from Business Plans provided in the Spring of 2016; and FfE data for student enrollment, oncampus residents, and employees. The fall final plan will provide updates based on actual year-end expenditure data, actual risk premiums, 2017/18 financial information (business plans), student enrollment, on-campus residents, and employees. The preliminary 2017 /18 plan reflects three primary changes versus previous iterations of the plan: 1. Elimination of the Chancellor's Office Audit Fee, which will now be borne solely by the university; 2. Adjustment to the UPD Security Fee rate to include reimbursement to the operating fund for five new officers in a campus-wide effort to improve safety and security; 3. Adjustment to the IT Baseline Services Model to address the non-operating funded portion of costs related to technical network infrastructure maintenance. This cost was originally paid up front by the university for a five year term, which is set to expire during the Fiscal Year. Please indicate your approval of the attached 2017/18 Preliminary Cost Allocation Plan with your signature below. Date The California State University: Chancellor's Office Bakersfield, Channel Islands, Chico, Dominguez Hills, East Bay, Fresno, Fullerton, Humboldt, Long Beach, Los Angeles, Maritime Academy, Monterey Bay, North ridge, Pomona, Sacramento, San Bernardino, San Diego, San Francisco, San Jose, San Luis Obispo, San Marcos, Sonoma, Stanislaus cc: Andy Feinstein, Provost and Vice President for Academic Affairs Bob Wrenn, Interim Associate Vice President/CIO, IT Services Cathy Busalacchi, Executive Director, Student Union Marie Tuite, Interim Director, Division of Intercollegiate Athletics Jaye Bailey, Chief of Staff and Vice President, Organizational Development Leslie Rohn, Chief Operating Officer, Tower Foundation Lisa Thomas, Executive Director, Spartan Shops, Inc. Mama Genes, Associate Vice President, Academic Planning & Budgets Kevin Kinney, Director, University Housing Services Ninh Pham-Hi, Director of Internal Control Paul Lanning, Vice President for University Advancement Reginald Blaylock, Vice President for Student Affairs Robb Drury, Senior Director, Resource Management for Student Affairs Roger Elrod, Director, Student Health Center Ruth Huard, Dean, International and Extended Studies Sandeep Muju, Executive Director, Research Foundation Tari Wimbley, Executive Director, Associated Students

2 Services and Use of Facilities Costs Non-CSU Operating Fund Entities Business & Financial Services IT Services Facility Use Fees UPD Security Workers' Comp IDL/NDI/UI Liability Insurance Vehicle Insurance Premiums TOTALS Associated Students $ 98,578 (A) $ 148,376 $ 5,322 $ 6,518 n/a n/a n/a n/a n/a n/a $ 258,794 Athletics n/a (B) n/a n/a n/a n/a n/a n/a n/a n/a n/a - Housing 221,609 (A) 1,186, , ,880 $ 30,031 $ 18,604 $ 36,219 $ 240,194 $ 2,021 $ 327,069 2,537,599 CERF 2,821,746 (C) 197,169 n/a 71, ,660 80,943 69,382 n/a ,153 3,371,746 Lottery 146,565 (A) n/a n/a n/a ,437 n/a n/a 6, ,747 Other Trust 120,307 (D) n/a n/a n/a 23,500 (I) (I) n/a n/a 23, ,807 Parking 499,046 (D) 98, ,416 1,169,456 11,715 7,257 15,549 47,940 4,884 87,345 2,227,848 Research Foundation 68,572 (E) 231, ,200 n/a n/a n/a n/a n/a n/a n/a 487,064 Rsrch Fndtn: igateways n/a (F) n/a 133,056 n/a n/a n/a n/a n/a n/a n/a 133,056 Spartan Shops 7,660 (A) 288, ,000 (H) 12,652 n/a n/a n/a n/a n/a n/a 1,223,336 Student Health 681,516 (D) 408,765 17,802 16,295 51,428 31,859 26,297 18,384 n/a 127,968 1,252,346 Student Union 176,469 (A) 174, ,577 7,668 n/a n/a n/a 88,346 n/a 88, ,620 Tower Foundation 33,427 (E) 86,407 38,184 3,796 n/a n/a n/a n/a n/a n/a 161,814 City of San Jose (MLK) n/a (G) 414,580 n/a 18,212 n/a n/a n/a 34,932 n/a 34, ,724 Hammer Theatre 13,293 (D) 13,092 n/a 575 n/a n/a n/a n/a n/a n/a 26,960 TOTALS, NON-CSU OPERATING FUND $ 4,888,788 $ 3,247,729 $ 2,128,719 $ 1,842,728 $ 247,794 $ 138,948 $ 152,884 $ 429,796 $ 7,073 $ 976,495 $ 13,084,459 TOTALS, CSU OPERATING FUND $ 1,546,856 $ 958,274 $ 743,018 $ 432,855 $ 36,038 $ 3,717,041 ************ TOTALS, UNIVERSITY INSURANCE PREMIUMS $ 1,794,650 $ 1,097,222 $ 895,902 $ 862,651 $ 43,111 $ 4,693,536 ************ For additional information, contact the Office of Budget & Risk Management. Estimated cost allocations are highlighted. Cost allocations will be posted quarterly in September/October, December, March and May/June. Insurance Premium Costs Risk Management Property/ Building (A) Fixed charges. These costs have been adjusted beginning FY to address years of suppressed costs, which had not taken into consideration the increase in benefit costs. (B) Athletics will not be charged for IT and Business & Financial Services per an agreement for services in kind: tickets to Athletic events. (C) CERF estimated balance; to be transferred to A&F after all other costs have been posted. (D) Variable charges will be dependent upon revenues collected. (E) Cost distribution between the Foundations varies each year. (F) Business operates out of Research Foundation, however they occupy space on campus. (G) City of San Jose Public Library (MLK) will be charged for ITS Baseline Services and partial cost of the (MLK) Building Insurance Premium. (H) The Facility Use Fee for Spartan Shops is governed by their operating agreement and may be adjusted after year-end reconciliation of sales revenue. (I) RA/Trust portion of risk premium will be fully applied to WC premium for ease of calculating other costs. Total Insurance Cost Allocation Preliminary, Summary Last Updated: 3/30/2017

3 Business & Financial Services Summary of Cost Allocation Revenue Cost Allocation Adjusted Based on General Salary Increase (GSI) Charge 2% GSI Increase (A) Benefits Cost (34.378%) of GSI Increase (A) 2017/18 Charge Associated Students $ 95,998 $ 1,920 $ 660 $ 98,578 Athletics Housing 215,809 4,316 1, ,609 Lottery 142,729 2, ,565 Foundations (Research and Tower) 99,329 1, ,999 (B) Spartan Shops 7, ,660 Student Union 171,850 3,437 1, ,469 Total Based on GSI $ 733,175 $ 14,664 $ 5,041 $ 752,880 Split of Research and Tower Foundation 2015/16 Actual Exp. (B) Pro-rata share 2017/18 Charge Research Foundation $ 57,768, % $ 68,572 Tower Foundation 28,160, % $ 33,427 Cost Allocation Estimate Based on Anticipated Revenue Fund Estimated Revenue % of Rev. Billed 2017/18 Estimated Charge CERF $ 33,101,434 N/A $ 2,821,746 (C) Parking Fines and Forfeitures ,175 Parking Fees ,972,900 Parking Total 6,238, % 499,046 (D) Other Trust various various 133,600 (E) Student Health Services Fee ,461,125 Student Health Facilities Fee ,894,200 Student Health Voluntary Fee ,000 Student Health Total 13,630, % 681,516 (F) Total Based on Anticipated Revenue $ 4,135,908 TOTAL 2017/18 COST ALLOCATION $ 4,888,788 (A) Increase for Business and Financial Services fees include a 2% (GSI increase) over the fees plus benefit costs. (B) Tower and Research Foundation Cost Allocation for Business and Financial Services is calculated by taking the base cost for both (established when they were one entity), and dividing by the pro-rata share, based on prior year expenditure actuals (FIRMS data). (C) CERF estimated cost allocation is calculated from anticipated credit revenue (OU, Special Session, Winter/Reg Ext, Spartans Online), less other University cost allocations, per a campus agreement. See "CERF" sheet for details. Revenues estimate based on Business Plan. (D) Parking Funds included are Fines and Forfeitures, and Parking Fees. Funds for Construction and Maintenance and Repair are not included. Revenues estimates based on Business Plan. (E) Each Trust Fund agreement details the percentage of the Business and Financial Services fee and includes Hammer Theatre. Estimate for 2017/18 is based on 2015/16 actuals. (F) Student Health Center revenue estimates base on Business Plan and do not include transfers in/out Cost Allocation Preliminary, Bus & Fin Services Last Updated: 3/30/2017

4 IT SERVICES BASELINE COSTS AND WORKSTATION REFRESH FTE (A) Baseline Charges Workstation Refresh (B) Non-Baseline Services (C) Total Charges Under New Model Rate per FTE per year $ 4,364 $ 445 $ 4,809 Self-Support Units Housing $ 274,932 $ 28,035 $ 883,912 $ 1,186,879 CIES ,924 18, ,169 Parking ,462 9,123-98,585 Student Health ,940 37, ,765 Subtotal $ 914,258 $ 93,228 $ 883,912 $ 1,891,398 Auxiliaries Associated Students $ 148,376 $ - $ - $ 148,376 Research Foundation , ,292 Spartan Shops , ,024 Student Union , ,560 Tower Foundation , ,407 Subtotal $ 928,659 $ - $ - $ 928,659 MLK Library City of San Jose Public Library $ 414,580 $ - $ - $ 414,580 Subtotal $ 414,580 $ - $ - $ 414,580 Hammer Theatre 3.00 $ 13,092 $ - $ - $ 13,092 Subtotal 3.00 $ 13,092 $ - $ - $ 13,092 TOTAL 2017/18 COST ALLOCATION $ 3,247,729 (A) FTE based on Business Plans and data provided by units. Information will be updated in the Fall with 2017/18 budgeted FTE data. (B) Any projects and initiatives that expand IT services to new/renovated facilities (i.e. lab refresh, Hammer Theatre) where costs are significantly higher, may require the units to assist and support the increased costs (buy-in contribution). (C) Non-Baseline Services fee covers the television services provided to the residence halls in Housing Cost Allocation Preliminary, ITS Services Last Updated: 3/30/2017

5 Detail of CERF Charge under Cost Allocation Estimate Based on Anticipated Revenue From CIES Business Plan Estimated Revenue Percentage Distribution Campus Portion of Revenue Academic Yr Credit Revenue to SJSU (A) $ 25,907,639 11% $ 2,849,840 Summer 2016 Credit Revenue 7,193,795 11% 791,317 Total Anticipated Credit Revenue 33,101,434 $ 3,641,157 Open Univ Reimbursement (B) $ 269,411 Other Cost Allocations Facility Use Fee $ - (C) IT Services 197,169 UPD Security 71,678 Worker's Comp. 130,660 IDL/NDI/UI 80,943 Liability 69,382 Vehicle Insurance 168 $ 819,411 Balance to Business and Financial Services $ 2,821,746 % of Division Trust Fund Balance to Total Credit Revenue 8.52% (A) CERF 11% Distribution is on Credit Revenue which includes Open University, Special Session, Winter/Reg Extension, Summer, and Spartans Online. Amounts will be updated based on 2017/18 Business Plan data in the fall. (B) This is based on CSU 1994/95 SJSU estimated Open University/Concurrent Enrollment revenue of $1,926,751 * 13.98%. In 2006/07 SJSU implemented a CERF Funding Model program. This was included as part of the costs to Admin and Finance Division. (C) Facility Use Fee is billed to CIES directly. See igateways under Facility Use Fee sheet for details Cost Allocation Preliminary, CERF Last Updated: 3/30/2017

6 SAN JOSE STATE UNIVERSITY UNIVERSITY POLICE DEPARTMENT SECURITY FEE Faculty/ Staff FTE Staff/Faculty/ Resident Student FTE Total FTE Total Security Cost [1] Associated Students $ 6,518 Housing: Employees $ 12,077 Student Residents (100% occupancy) 3, , $ 523,803 [2] IES (Continuing Education) $ 71,678 Spartan Shops $ 12,652 Student Health Center $ 16,295 Student Union $ 7,668 Tower Foundation $ 3,796 Hammer Theatre $ 575 City of SJ Public Library $ 18, , , $ 673,272 Parking $ 1,169,456 [3] $ 1,842,728 [1] Security cost per FTE = $191.70, calculated as follows: UPD CSU Operating Fund Budget (2017/18 Preliminary Base Budget /18 One-Time budget requests) $ 5,187,094 Total projected campus FTE 27,058 = Cost per FTE $ (2,687 faculty/staff; 24,371 student) [2] Security cost per Staff/Faculty/Resident Student = $142.84, calculated as follows: UPD CSU Operating Fund Budget for officer/dispatcher salary $ 124,986 x UPD Officer/Student Ratio (1.5/1000) = Gross security rate per student $ Discount for weekday security covered by the CSU Operating Fund (1/3 for weekdays) (44.64) Net security rate per student $ [3] Per comprehensive/principal agreement/contract between the Non-CSU Operating Fund and the University. [4] Total Cost per Addt'l Officer (x4) 118,283 19, , Cost Allocation Preliminary, UPD Security Last Updated: 3/30/2017

7 Facility Use Fee (Per EO 1000: Charges for Usage of State Owned/Supported Facilities) Non-CSU Operating Fund Facility Use Fee Gross Sq. Ft. $1.00 per Sq. Ft. x 12 Space Rental Assignable Sq. Ft. $2.00 per Sq. Ft. x 12 Building Footprints Ground Lease Grounds Surround. Bldg 2017/18 Facility Use Fee Change from Prior FY Facility Use Fee Non-CSU Operating Fund Entities: Associated Students 3,544 1,778 5,322 $ 5,322 (A) $ 5,322 $ - $ 5,322 Housing 291, ,600 (B) 266,162 (25,438) 291,600 Parking 845,327 (adjusted) (C) 373, ,416 Research Foundation: Sponsored Activities (D) 187, ,200 Research Foundation: igateways 5,544 $ 131,922 (E) 133, ,056 Spartan Shops (F) 915, ,000 Student Health Center 17,802 17,802 17,802 (G) 17,802-17,802 Student Union 176,413 27, , ,577 (H) 192, ,577 Tower Foundation 1,123 26,952 (I) 38,184-38,184 Total Facility Use Fees $ 2,128,719 $ (25,438) $ 2,154,157 Total Sq. Ft. $1.00 per Sq. Ft. Footnote (A) Associated Students will not pay rent for the University House until 2032, per a lease agreement between AS and SJSU. Note that the agreement states that the University will pay Property Insurance on the AS house. (B) The new Campus Village II was completed in the fall Hoover and Royce Halls were demolished also in the fall and construction began for the new SRAC. (C) The Parking ground lease is adjusted by the space occupied by Student Services Center, Human Resources, and UPD located in UPD parking & building space. (D) Research space is negotiated between the Research Foundation and the University. (E) igateways Program held in IS Building. A total of nine rooms have been assigned for dedicated use by CIES-iGateways effective Summer Session 2014, plus an office beginning June (F) The Facility Use Fee for Spartan Shops is governed by their operating agreement and may be adjusted after year-end reconciliation of sales revenue. (G) Student Health & Counseling Center began paying ground lease in FY 2015/16. (H) The new Student Union expansion was completed in April 2014 and the seismic renovation in Summer The Aquatics Center closed at the end of May 2016 and construction for the new SRAC began in fall (I) Tower Foundation utilizes various offices and cubicles on the third floor of Clark Hall. Other adjustments also include funding changes to UA personnel Cost Allocation Preliminary, Facilities Use Fee Last Updated: 3/30/2017

8 Distribution of Worker's Comp, NDI, IDL, UI and Risk Liability Costs Based on 2015/16 Expenditures & 2017/18 Early-Bird Premium Projection 2015/16 Cost for Coverage Personnel Expenses (A) % WC IDL/NDI/UI Total Premium $ 1,794,650 $ 1,097,223 $ 2,891,873 Housing $ 4,443, % $ 30,031 $ 18,604 $ 48,635 CERF 19,333, % 130,660 80, ,603 Lottery 68, % Parking 1,733, % 11,715 7,257 18,972 Other Trust 23,500-23,500 (B) Student Health 7,609, % 51,428 31,859 83,287 CSU Op Fund 228,884, % 1,546, ,274 2,505,130 TOTAL $ 262,073, % $ 1,794,650 $ 1,097,222 $ 2,891, /16 Total Expenditures (C) % Risk Liability Cost Premium 840,948 Housing $ 14,044, % $ 36,219 CERF 26,904, % $ 69,382 Lottery 2,108, % $ 5,437 Parking 6,029, % $ 15,549 RA/Other Trust N/A (B) Student Health 10,197, % 26,297 CSU Op Fund 266,815, % 688,065 (D) TOTAL $ 326,100, % $ 840,949 $ 1,794,650 WC 1,097,223 NDI/IDL/UI 840,948 Liability (D) $ 3,732,821 $ 34,587 Student Professional Liability (D) 20,366 Student Academic Field Exp. for Credit Liability (D) 862,651 Property Insurance 474,191 AIME 43,111 Vehicle Insurance TOTAL AMOUNTS INVOICED BY CHANCELLOR'S OFFICE $ 5,167,727 (A) Personnel expenditures include all salary, wages, and benefits, including work study. (B) Other Trust portion is applied as a 1% charge to actual expenditures during the fiscal year. For ease of calculation, entire cost allocation to Other Trust will be applied to the Workers' Compensation Premium. The 2017/18 estimate is based on 2015/16 actuals. (C) Expenditures include all expenses except risk premiums and transfers out. (D) SPL and SAFECLIP are a CSU Operating expense and cost is reduced from the Liability Premium allocated to the campus. SPLIP and SAFECLIP totals provided by Alliant/Risk Management (R. Leong) on 9/27/ Cost Allocation Preliminary, WC, NDI, Liab. Last Updated: 3/30/2017

9 Property / Building Insurance Premium Site # Building Description Occupied As 2017/18 Estimated Values 2017/18 Estimated Premium Total Values Premium Change Rate % STUDENT UNION 1 AUTO BANK TELLER BUILDING ATM $ 236,175 $ 119 $ 236,175 $ % 3 STUDENT UNION (INCLUDES EXPANSION) COLLEGE - GENERAL 132,511,315 66, ,511,315 51, % 177 EVENT CENTER COLLEGE - GENERAL 42,654,010 21,484 42,654,010 16, % 110 STUDENT AQUATIC CENTER POOL/DRESSING/SHOWER BUILDING % Student Union Total $ 88,346 $ 67, % PARKING 53 NORTH PARKING FACILITY (10TH STREET) PARKING STRUCTURE / OFFICES $ 34,438,730 $ 17,346 $ 34,438,730 $ 13, % 54 SOUTH PARKING FACILITY (7TH STREET) PARKING STRUCTURE 36,219,683 18,243 36,219,683 14, % 55 WEST PARKING FACILITY (4TH STREET) PARKING STRUCTURE 19,043,359 9,592 19,043,359 7, % 175 UNIVERSITY POLICE DEPARTMENT BUILDING POLICE STATION / OFFICES 5,478,080 2,759 5,478,080 2, % Parking Services Total $ 47,940 $ 36, % HOUSING 87 HOOVER HALL DORM $ 9,120,126 $ 4,594 $ 9,120,126 $ % 88 ROYCE HALL DORM 9,120,126 4,594 9,120, % 89 WASHBURN HALL DORM 9,120,126 4,594 9,120,126 3, % 90 JOE WEST HALL DORM 36,388,245 18,328 36,388,245 14, % 91 DINING COMMONS CAFETERIA 7,795,875 3,927 7,795,875 3, % 178 CAMPUS VILLAGE - BUILDING A (FACULTY/STAFF) APARTMENT - HIGH RISE 36,966,445 18,619 36,966,445 14, % 178 CAMPUS VILLAGE - BUILDING B (UPPER CLASSMEN) APARTMENT - HIGH RISE 201,099, , ,099,766 77, % 178 CAMPUS VILLAGE - BUILDING C (FRESHMEN) APARTMENT - HIGH RISE 41,265,187 20,784 41,265,187 15, % 190 CAMPUS VILLAGE PHASE 2 (NEW) APARTMENT - HIGH RISE 126,000,000 63, ,000,000 48, % University Housing Total $ 240,194 $ 179, % STUDENT WELLNESS CENTER 189 STUDENT WELLNESS CENTER (NEW) MEDICAL FACILITIES, DOCTORS' OFFICES, MEET $ 36,500,000 $ 18,384 $ 36,500,000 $ 14, % Student Wellness Center Total $ 18,384 $ 14, % MLK LIBRARY - CITY/CAMPUS 142 DR MARTIN LUTHER KING JR. LIBRARY LIBRARY - HIGH END $ 169,157,589 $ 85,201 $ 169,157,589 $ 65, % CSU Op Fund Portion (59%) CSU Op Fund Portion (59%) 99,802,978 50,269 99,802,978 38, % City of San José Total (41%) City of San Jose Total (41%) $ 69,354,611 $ 34,932 $ 69,354,611 $ 26, % Totals, Non-CSU Operating Fund Property Insurance $ 394,864 $ 297, % Totals, City of San José $ 34,932 $ 26, % Totals, CSU Operating Fund Property Insurance $ 432,855 $ 337, % TOTALS, UNIVERSITY Property Premium $ 862,651 $ 662, % Notes: 2017/18 Estimated Premium information provided by Alliant on 11/10/2016. Property Values and Premium information will be updated in the Fall Update when the final data is known. Property/Building Premium includes the new expansion of the Student Union building, the Campus Village II, and the Student Wellness Center. Property appraisals are done every five years, and property values are updated annually A list of buildings on campus is sent to the Risk & Compliance manager every year to be reviewed for any additions/demolitions of buildings Cost Allocation Preliminary, Property Premium Last Updated: 3/30/2017

10 Vehicle Insurance Premium Distribution Non- CSU Operating Fund FD&O Inventory (A) Estimated Cost Per Vehicle (B) $ 168 Housing 12 $ 2,021 CIES 1 $ 168 Parking 29 $ 4,884 Total Non-CSU Operating Fund 42 $ 7,073 Total CSU Operating Fund 214 $ 36,038 TOTALS, UNIVERSITY 256 $ 43,111 (A) Detailed listing of vehicles for cost allocations provided by auto shop on 8/18/16. Vehicle list will be updated in fall. (B) Cost per vehicle is based upon "Early-Bird" information from Alliant/Risk Management. Premium information will be updated in the Fall Update when the final data is known Cost Allocation Preliminary, Vehicle Insurance Last Updated: 3/30/2017