4/10/20 SFAC Minutes

SFAC Meeting

Friday, April 10, 2020

3:00-4:00pm

Via Zoom

MINUTES

SFAC Members:

  • Arden Childers, AS Vice President for Finance; SFAC Co-Chair
  • Katryna Johnson, AS Senator for Sustainability;
  • Melissa Ann Kadar, Exec VP of AS;
  • Elias Lopez, Designee for VP for Student Affairs, and SFAC Co-Chair;
  • Lisette Rico Caballero, AS Senator for Undeclared; (replacing Emily Miller, AS VP for External Affairs)
  • Leonel “Leo” Navarro, AS Senator for Business and Econ and designee for AS President;
  • Elizabeth O’Brien, as designee for Joyce Lopes, VP for Admin. & Finance; 
  • Dr. Hollis Robbins, Dean, School of Arts & Humanities as designee for Provost, VP for Academic Affairs; (present but needed to depart at 3:30)
  • Laura Watt, Chair of the Faculty; (absent)
  • Hilary C. Smith, Research Services & User Experience Librarian; Student Affairs Committee Rep 

Non-Voting SFAC Members:

  • Hayley Avery, Budget Manager, University Budget and Planning 
  • Erik Dickson, Executive Director, Associated Students;
  • David Crozier, Director of Financial Aid;
  • Sue Hardisty, Administrative Assistant, VP for Student Affairs Office
  • Laura Monje-Paulson, Assistant Vice President for Student Affairs

 

Guests:

  • Nikki Anderson, Financial Services
  • Anna Reynolds-Smith, IRA Subcommittee
  • Christina Gamboa, IRA Subcommittee

 

AGENDA

  1. Call to Order and Roll Call

Co-Chair Childers called the meeting to order at 3:05pm. Roll call was taken and a quorum was recognized.

  1. Approve Minutes of March 27, 2020

Childers called for changes or additions to the minutes; hearing none, minutes were unanimously approved.

  1. IRA Recommendations (Review and Action) (Mel Kadar)

Kadar briefly explained the review process and timeline. IRA subcommittee based decisions off of information available at the time they were reviewing the applications but they adjusted figures according to the most recent budget projections as of April 3 and suggested that next year’s IRA subcommittee preserve the reserves to keep it healthy.

She then shared a spreadsheet that showed the anticipated allotments to the above the line permanently funded programs (yellow box), and the award amounts for the below the line programs which the subcommittee is recommending SFAC approve.

All existing programs were awarded the same amount as last year. Increases were approved only to allow for salary increases due to the minimum wage going up.

There were contingencies placed on 11 programs and a question was added to the application form for existing programs applying next year to explain how they were meeting those contingencies.

There was discussion about the uncertainty of the budget as a result of declining enrollment and the impact of COVID-19 on campus revenues. Members expressed concern about spending into the IRA reserves at this time because it is anticipated that those reserves will be needed to supplement anticipated decreases in revenue to the above the line programs which include employee salaries. “Below the line” programs do not have salaries tied to the awards. Dickson and Crozier cautioned that spending into the reserves this year for “below the line” programs could have a detrimental effect for the “above the line” programs this coming year and reminded the committee that the four permanently funded “above the line” programs have salaries attached to them. Insufficient funding puts those positions at risk. Crozier further reminded the committee that the campus is in a hiring freeze, they have revoked most departmental credit cards to reduce spending, and he didn’t feel that spending reserves was congruent with campus efforts to preserve available funds for next year’s needs.

Kadar shared that the committee was comfortable spending reserves for the below the line programs, and stated that although there was uncertainty about the funding, they intend to include language in the award letters that funding may change due to the actual budget.  The subcommittee had agreed on letting next year’s IRA committee address using the reserves for the above the line programs.

At this point Robbins announced she needed to depart but stated she was happy with the funding commitment for the Center for Performing Arts and asked if this might change depending on SFAC’s vote on the recommendations brought forth.

Lisset asked what happens to unused funds. Underutilized funds return to the IRA pool for distribution the following year.

Childers asked the committee to reconsider IRA’s decision to not fund the Cultural Graduations Program. Dickson asked for clarification. Was he asking for the committee to review the application for just this program or for all programs which were not recommended for funding?

Returning to the topic of spending from the reserves, Lopez and Hayley suggested the IRA committee revise their recommendations so the reserves are preserved for 2020-2021 due to lower enrollment projections for the Fall.

Childers stated that four SFAC student members had reviewed the IRA applications and felt that the recommendations they decided on should stand. Discussion ensued about when a decision needed to be made. Based on current meeting schedules for both SFAC and IRA, it was decided that a decision did not need to be made today. It could wait until early May. The hope was that the extra time would allow the university to develop analytics to more accurately predict fall enrollment.

After considering all concerns, Childers called for a motion to bring the recommendation back to the IRA committee to revise so as not to spend into the reserve.

Lizzie motioned to amend the report, Lisset seconded. Opened for discussion.  No further discussion.

Vote: 7 yes, 0 no (Robbins and Watt were not present for vote)

  1. Final Report for Course Fee Balance Audit (Informational) (Hayley Avery)

Reviewed past 5 years of revenue and expenses of course fee funds whose average spend down rate was 50% or less.

Chose this methodology to focus on low spend down rates.

Committee was comprised of Mel Kadar, Erik Dickson, Nikki Andersen, Hayley Avery, and Elizabeth O’Brien.

11 fee funds were reviewed. Process involved pulling financial information, trust agreements, and communicating with departments until solutions were agreed upon.

Solutions were: (1) continue to monitor the fund, (2) reduce the fee, or (3) close the fee fund.

2 of the 11 fee funds reviewed had been carrying small balances because the course had not been offered for some years. These were RT059 - Geology 120 and RT108- Behavior & Experiment Economics. Per the Fee Policy, course fees will automatically expire if a course has not been taught for 3 years. One course had not been offered for 7 years, the other for 3 years. Both departments requested to keep the accounts open in case courses were offered in the future. The Fee Review Committee is asking SFAC to decide what to do with these 2 funds. Close or continue to monitor?

Childers called for a motion to approve the recommendations of the Fee Review Committee, Kat motioned, Leo seconded. Dickson clarified that the Fee Review Committee was looking for a decision on whether to close the 2 fund accounts or to continue to monitor them. 

Mel moved to amend current motion to close both RT059 & RT108 because the courses had not been taught in 3 years and this was in alignment with the Fee Policy.

Lisset seconded. Vote: 7 yes, 0 no. Passed unanimously.

Regarding vote on main motion to approve the report from the subcommittee, Childers asked if any dissenters? Hearing none, original motion was approved.

  1. Orientation Fee (Informational) (Erik Dickson)

Orientation Fee will be $0 for transfers and $0 for first year students’ online orientation.

 Meeting adjourned at 4:02pm.

 Minutes submitted by Sue Hardisty.