BOARD INSIGHTS OCTOBER
CAL POLY POMONA FOUNDATION, INC.
Office of Grants and Contracts PUBLISHED BY: Cal Poly Pomona Foundation. Inc. Ph: 909-869-2912 Fx: 909-869-4549
WHAT YOU SPEND ON CAMPUS … STAYS ON CAMPUS Surplus funds generated by all Cal Poly Pomona Foundation operations go back to the University to provide financial and facility resources to benefit students, faculty and staff.
As of June 30, 2012, the Foundation administered over 288 active grant and contract projects totaling over $61 million dollars to be expended over the next two years. Last fiscal year, new award funding totaled almost $14.3 million representing 149 projects which included: • • •
NSF Noyce Master Teachers Fellows Program funded by the National Science Foundation totaling $1,438,805; Year 4 of the RISE Program funded by the National Insti tute of Health totaling $541,443; Year 4 of the CIRM Bridges Program funded by the California Institute of Regenerative Medicine totaling $513,878; Various TRIO grant projects funded by the United States Department of Education totaling nearly $2 million.
For fiscal year ended June 30, 2012, the total grant expenditures reimbursed was as follows:
Sources of Direct Funding: Federal Fund State and Local Government Funds For-Profit Organizations Foundations and Tax Exempt Organizations Total Direct Funding
6,773,890 3,133,440 836,975 1,271,417 12,015,722
Sources of Indirect Cost Reimbursements: Federal Funds State and Local Government Funds For-Profit Organizations Foundation and Tax Exempt Organizations Total Indirect Cost Reimbursements: Total Expenditure Activity:
930,284 290,035 157,691 1,807 1,379,817 13,395,539
Grant expenditures by academic unit were as follows: Academic Unit Academic Affairs Agriculture Business Administration Letters, Arts and Social Science Continuing Education Education Engineering Environmental Design Learning Resource Center Presidentâ€™s Office Science Student Affairs TOTAL
Total 2,429,291 1,259,295 141,920 386,616 36,836 560,704 1,179,167 268,322 1,571,462 27,435 3,632,501 1,901,990 13,395,539
Federal grant and contract revenue represents 58 percent of the sponsored program activity and includes support from a variety of agencies including:
Qdoba Makes an Impressive Debut Qdoba Mexican Grill officially opened in the Bronco Student Center on Friday, September 28. Approximately 400 customers visited the area formerly occupied by Subway Express—an impressive outcome considering it was only a soft-opening on a slower business day. Qdoba Mexican Grill allows its guests to customize their order to their personal preference. This made-toorder dining option offers Mission-style burritos, delectable tacos, grilled quesadillas, and more. “I’ve heard lots of positive comments about the quality and freshness. People also seem to like how they can make their meal the way they want it,” stated Foundation Dining Services Director Brett Roth. .
Cal Poly Pomona is now one of only six campuses nationwide and the first university in California to have a Qdoba, making this new dining venue a truly unique option for the Cal Poly Pomona campus community.
Since opening, around 500 Qdoba customers are being served daily. Qdoba Mexican Grill is open in the Bronco Student Center Monday through Thursday from 11 a.m. to 7 p.m. and Friday from 11 a.m. to 3 p.m.
Foundation Supports Cultural Celebrations Cal Poly Pomona Foundation, Inc. was proud to sponser the various Cultural Celebrations that occurred between May 31 and June 3, 2012. These events included the RAZA Graduation Celebration, the Native American Graduation Celebration, the Pan-African Graduation Celebration, the A.C.E. Awards Banquet, and the Lavender Graduation Celebration. Cal Poly Pomona Foundation, Inc. is honored to help such diverse and unique groups on campus and hopes to continue to do so in the future.
2012 Foundation Service Awardees On Wednesday, September 19, nineteen Foundation employees received an award honoring their many years of service. Ranging from 10 to 25 years of employment, these staff members have displayed hard work and dedication to Cal Poly Pomona Foundation, Inc. Thank you for your hard work and commitment!
Name Jirayouth Suthisayeam Nora Jean Fernandez Jack W Ferrero Rebecca Pang Jorge Lupercio Gloria Pantoja Lidia Maya Alex Hernandez Clint R Aase Maria A Osuna Regina K Allison Judy N Lieu Laura Ayon Shu Ying Merritt Pauline S Anongdeth Na M Phung Sherry L Flamino Mark V Guenette LaVena Reyes
Years of Service 10.0 10.0 10.1 10.2 10.3 10.3 10.4 10.4 10.5 10.5 10.7 15.0 15.0 15.1 15.7 20.0 25.0 25.2 25.5
Department Campus Center - Dining Services Employment Services - Foundation Bronco Bookstore College of Extended University Upward Bound Kellogg West Los Olivos Marketing- Foundation Bronco Bookstore Upward Bound University Village Los Olivos College Reading Skills Bronco Bookstore Financial Services - Foundation Los Olivos University Village Facilities- Foundation Financial Services - Foundation
The 29th Annual Hot Dog Caper An event that was out of this world! Cal Poly Pomona Foundation, Inc. presented the 29th Annual Hot Dog Caper on Tuesday, September 25, 2012. This traditional celebration welcomed the campus community with free food, music, and entertainment. At approximately 11:30 a.m., numerous volunteers wearing blue t-shirts helped distribute thousands of hot dogs, chips, soda, and ice cream bars to hungry staff and students. This trend continued until about 1:00 p.m. Adorned in blue and white decorations, the entire University Park exuded a festive ambiance. Vendors with exciting giveaways, games hosted by ASI, two photo booths, and a live band called 90 Proof added to the celebratory atmosphere. This was probably the largest Hot Dog Caper to date. With the help of over 300 volunteers, 15,216 hot dogs, 9,600 chips, over 20,000 Pepsi products, and nearly 11,000 ice cream bars were served. In addition, around 400 feet of banner, 250
balloons, 25 tents, 30 tables, and 50 trashcans were placed throughout the park. “Although this is a Foundation event, it would not be possible without the help of many departments on campus; they really helped us pull-off a great event that’s for the students’ enjoyment,” expresses Edwin Santiago, Director of Foundation Marketing. This year’s Hot Dog Caper was made possible through the partnership of Cal Poly Pomona Foundation, Inc., Cal Poly Pomona, Pepsi Beverages Company, Associated Students, Inc., Facilities Planning & Management, AT&T, Otterbox, Hoffy, Costco, First Class Vending, and Intercollegiate Athletics. Photos and videos of the 29th Annual Hot Dog Caper can be found on:
2012-2013 Elected Board Members Jordan Kittleson Jordan Kittleson grew up just outside Pasadena, CA. Varying forms of international dance are among his deepest passions, as he firmly embraces the idea that methods utilized to resurrect individual expression are extremely important to society. He has visited ten different countries and plans on raising that total. Holding a bachelor’s degree in Political Science from Cal Poly Pomona, he is currently beginning his last year of graduate school studying the intricacies of public administration. Throughout his academic experience, he immersed himself in extracurricular activities which include: 3 study abroad trips (Ghana, China, and Spain), Head Delegate to the Washington Model Organization of American States Team, Resident Advisor for the University Village, Political Science/Economics/History Tutor for the Learning Resource Center, Chair for the ASI Lobby Corps Board, and ASI Secretary of External Affairs. Ultimately, his career objective is to become a United States Congressman.
“The picture is something which I feel encapsulates my personality, as my mother and girlfriend are the two women I hold dear to my heart.”
2012-2013 Appointed Board Members David Speak David Speak grew up in the OC and got a bachelor’s degree from UC Santa Cruz, and his graduate work in Chapel Hill at the University of North Carolina. His Masters and PhD are in Political Theory. He has taught at eight institutions of higher education, including UNC, NC State, the University of Iowa and Claremont McKenna College. He served a four year term as an elected Trustee of the Claremont Unified School District, presiding over the Board in his last year in office. He came to Cal Poly Pomona at the same time as Bob Suzuki in 1990 and has twice served as Chair of the Political Science Department. Dr. Speak was the first Director of New Faculty Orientation at Cal Poly Pomona and served as Director of the Service Learning Center. In 1997 Dr. Speak was the second recipient of the George Hart Award for Faculty Leadership. His service in the Academic Senate spans most of the time since his arrival on campus. He was elected Vice Chair two years ago and Chair in the Spring of 2012.
Christopher Osuala Christopher Osuala was born and raised in California for the first 10 years of his life. He and his family then moved to Nigeria in 2000 because his father was elected as a legislator in the countryâ€™s House of Representatives. After living in Nigeria for 3 years, Chris and his family came back to the States and moved to Houston, TX where he completed his high school education. In the fall of 2007, Chris was admitted to Cal Poly Pomona and is set to graduate June 2013 with a Bachelor of Science degree in Electrical Engineering and a minor in Business Marketing. He has taken on numerous leadership roles such as: Welcome Week leader, Black History Month Committee Chair, M.E.P. Academic Excellence Workshop facilitator, President of Omega Psi Phi Fraternity, Inc. â€“ Phi Lambda chapter, and was elected ASI President Spring of 2012. Chris also works as an intern at Southern California Edison in Innovation Village.
Rachel Dominguez Rachel Dominguez has been with CPP since September 1999. During this time she has worked and continues to work on the Foundation side of the University with the College Reading Skills Program, a federally funded program, as their Administrative Operations Analyst. Rachel also serves on the Marketing Committee for the Learning Resource Center. Rachel joined Staff Council in 2001 and in 2002 served as Staff Council Treasurer. As her duties and responsibilities increased in her position with the College Reading Skills Program Rachel left Staff Council in 2003. Asked to fill in on the Executive Board for Staff Council during a board members absence, Rachel returned to Staff Council for the 2011-2012 year. She has co-chaired 2011-2012 Staff Appreciation Variety Show and helped in implementing and also co-chaired Staff Council Harvest & Spring Boutiques. Rachel was recently elected Staff Council President for the 2012-2013 academic year.
Einstein Bros Bagels and Pony Express Two great additions to the CBA complex The new Einstein Bros Bagels in the College of Business Administration complex hosted a thrilling launch party on Monday, September 24. Between 11:00 a.m. and 1:00 p.m., a couple hundred visitors gathered outside the food venue to spin a prize wheel and pose in a photo booth. Participants had the chance to win a variety of Cal Poly Pomona gear, Einstein products, or free bagels for an entire year! Eight lucky guests won the grand prize; each big win was greeted with shouts of enthusiasm and applause from onlookers. Prior to the official launch party, guests had the opportunity to win one free bagel by claiming it on the CPP Dining Facebook page; a total of 50 individuals received the offer. The careful planning and effective promoting by Social Media Coordinators Lily Ly and Darren Isomoto brought numerous people to the area. In addition to their efforts, the hard work of BSC/Vending Manager Sandy Cain, Einstein Manager Jennifer Waggener, Assistant Manager Rosa Morales and the rest of the Foundation Marketing team helped make the Einstein launch a success. Since opening, business has been impressive, averaging about 2,300 customers a week. “I had someone tell me that they love the freshness of Einstein’s and that their breakfast sandwich made their morning,” voiced Foundation Dining Services Director Brett Roth. In addition to the success of Einstein Bros Bagels, the attached Pony Express convenience store has also had a strong flow of customers— around 2,500 customers per week. The Einstein Bros Bagels and the Pony Express have had a solid beginning, and are expected to continue this sturdy trend.
GASB vs. FASB Differences in this Year’s Audit Financial Statements This is first in a series of articles that will try and explain some of the similarities and differences between this year’s GASB audited financial statements and prior years’ FASB audited financial statements. As you may recall, there was a restatement of $10.2 million to the prior Net Assets (Fund Balance/ Retained Earnings) in this year’s financial statements. This restatement is a result of the differences between FASB and GASB valuation accounting rules allowed for determining the postretirement healthcare benefits obligation. To summarize a rather complex set of accounting rules, there are three major differences that resulted in the $10.2 million restatement. Simply stated, they are the differences between the discount rate allowed, the actuarial cost methodology, and the annual expense. Discount Rate Allowed FASB rules require that in selecting the discount rate the Foundation “shall look to rates of return on high-quality fixedincome investments currently available whose cash flows match the timing and amount of expected benefit payments.” In practice, the selection of the discount rate often involves use of an outside index or 5.5%. In contrast, GASB accounting rules specify that the discount rate “should be the estimated long-term investment yield on the investments that are expected to be used to finance the payment of benefits with consideration given to the nature and mix of current and expected investments.” In practice, the selection of the discount rate used is the expected long-term return on plan assets or 7%.
Actuarial Cost Methodology FASB rules require that valuations be completed using the Projected Unit Credit (PUC) actuarial cost method. Under the PUC method, each employee “earns” their postretirement benefit ratably over their service with the Foundation. Each employee’s annual accrual is their Service Cost. The attribution period typically runs from hire date until an employee is fully eligible to receive the postretirement benefit. In other words, the present value of each employee’s postretirement benefit must be 100% accrued when they are eligible to receive the benefit, even though they might not retire for several more years. GASB rules allow valuation to be completed based on a variety of actuarial cost methods, including the PUC method. The most common actuarial cost method used in GASB valuations is the Entry Age Normal (EAN) cost method. The EAN method is the same method used in the CalPERS and CalSTRS pension valuations. Under the EAN method, each employee “earns” their postretirement benefit as a level percentage expected payroll over their service with the Foundation. Each employee’s annual accrual is their Normal Cost. The attribution period typically runs from hire date until an employee is expected to retire. In other words, the present value of each employee’s postretirement benefit must be 100% accrued at the time of retirement.
Annual Expense Under FASB rules, the Foundation’s 2011-12 annual expense (i.e., Net Postretirement Benefit Cost) is $993,742 and includes the following components: a. b. c. d. e.
Service cost Interest Cost Annual return on plan assets, if any Amortization of unrecognized prior service cost, if any Amortization of actuarial gains or losses
Under GASB rules, the Foundation’s 2011-12 annual expense is $878,190 (an annual savings of $115,552) and the primary component of the annual expense (i.e., the Annual Required Contribution) includes the following components: a. b.
Normal cost (analogous to the GASB Service cost) Amortization of the Unfunded Actuarial Accrued Liability
In other words, by changing from FASB to GASB, we were allowed to increase the discount rate from 5.5% to 7%; we extended the period required to fully recognize an employee’s postretirement healthcare benefits obligation and change the component costs of the annual expense. In summary, these differences between GASB and FASB accounting valuation rules will allow the Foundation to save expenses in this area for years to come.
Resolutions Passed at the Recent Board Meeting September 25, 2012 ResoluƟon Number
Brief DescripƟon of ResoluƟon
Investment Report 4th Quarter 2011-2012 BOD approves The FoundaƟon’s Endowment and General Investment Policies 130 and131 that require a comprehensive quarterly report of the investment porƞolios performance be provided to the Investment CommiƩee and Board of Directors at a regularly scheduled meeƟng. FoundaƟon management believes that the quarterly investment reports are in compliance with the investment policies; they have been accepted by the Investment CommiƩee.
2011-12 External Audit and Single Audit Reports
BOD accepts the Vicente Lloyd Stutzman’s Financial and Single Audit Reports for the fiscal year ended June 30, 2012.
Designated GiŌ Request – Rose Float
BOD approves the 2012-13 budget modificaƟon for a designated giŌ of $100,000 for Rose Float Lab improvements increasing the total budgeted Designed GiŌs to $1 ,273,096.
CA InsƟtute of RegeneraƟve Medicine Grant Disallowance
BOD approves using the Reserve for Disallowed Costs to fund the $58,250.00 disallowance for the California InsƟtute of RegeneraƟve Medicine grant projects 000372 and 000374.
Endowment Spending DistribuƟon Approval
BOD approves an endowment distribuƟon proposal by FoundaƟon management of S1,904,107 to 221 scholarship endowment operaƟng accounts, 92 program endowment operaƟng accounts and the Kellogg FoundaƟon Legacy endowment operaƟng account.
Move-In Day The University Village intoduces a new check-in process Around 9:00 a.m. on Tuesday, September 18, Village staff began assisting students with check-in, a multi-step process used to verify payments, assign apartments, and issue room keys. Throughout the day, the Village’s Resident Advisors (R.A.s) greeted incoming occupants and helped with crowd-control, while many other staff members assisted students with parking permits, Bronco Bucks, and other available options. By the end of the process, just over a thousand new and returning Cal Poly Pomona students checked-in to the University Village. This was the first year that check-in was managed through computer technology. Thanks to the Wi-Fi that was installed over the summer, Village staff members were able to check-in residents with iPads. Employees simply swiped a student’s Bronco ID card on the mobile device to complete the identification and check-in process. This paperless approach was developed by University Village Technology Coordinator Owen Caldwell, who created the software using File Maker. “I’m proud to say that our new check-in system has worked exceptionally well,” expressed Director of Housing Services Ken Fisher.
The University Village is currently the only housing program in the CSU using mobile technology for administrative operations and the student check-in process. “This was an awesome team effort led by Owen Caldwell. The entire staff on all levels provided students with an organized welcome filled with excitement and anticipation for a great year,” stated Ken Fisher. In addition to the new check-in process and Wi-Fi, the Village has also refurbished several areas and apartments, included a quiet study lounge in the Community Center, and enhanced their computer lab and technological services.
October 2012 Board Insights