February 2, 1998

Memorandum

To:             University Community

From:           Benjamin F. Quillian, Vice President for Administration

Subject:   Certification of CETI Partnership Projected Campus Benefits/Campus Expenditures

Chancellor-elect Charles Reed has asked each CSU President and his or her Chief Financial Officer to verify the CETI partnership projected Campus Benefits/Campus Expenditures numbers by Friday, February 6. 

In response, President Welty has directed me to work with Rick Tellier, Jim Morris and John Briar to verify the reasonable accuracy of the reported expenditures for FY 1995/96. Additionally, we are to determine if the benefits represent a reasonable estimate of likely outcomes that can be measured at this time given our understanding of the current state of negotiations.

Lenore Rozner of the Chancellor's Office has indicated the following in an e-mail message dated January 30, 1998.

An understanding that the CSU will commit to a certain level of expenditures each year ($95 million plus or minus some variation), and the assumption that while it will be a CSU commitment and not a campus commitment, campus expenditure participation is assumed as part of the agreement.

With those signatures, it occurs that footnotes might be in order if a campus confirms its earlier reported expenditures but wishes to note qualifications (e.g., one-time expenditures of significant levels, contracts that could not be assumed for goods or services in scope) or if the information is incorrect due to problems with earlier reporting or compilation.  If such a notation is made, we will need enough detail to be able to determine from an aggregate viewpoint if the "one-time" is truly a one-time expenditure or if it is likely that it will need to be repeated within the life of the partnership.  It is understood that many campus
expenditures are made from funds that can't or won't be allocated to that expenditure every year on a given campus.  But given the "laws of large numbers" and our continued growth in technology expenditures, these one-time expenditures may smooth out across CSU in total.

If a campus feels that their survey submission needs to be substantially altered, please send an entire revised version so that we can maintain the integrity of the backup for the overall CSU summary.  Any changes from the November version should be fully explained.

Using the guidelines above, Rick, Jim, John and I are drafting a response, and I will share that response with the University Budget Committee at its meeting this week to provide the Committee the opportunity to offer input and suggestions.  The draft will then be forwarded to the President, recommending his signature, and I will also be a signatory as requested by the Chancellor.

The campus response will be placed on our web-site http://www.csufresno.edu/ait/ceti/siphome.htm for information to the University community.

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