2018 2019 - cal poly pomona foundation, inc. - home reports/budget1819.pdfnov 01, 2018 · the cal...

The Cal Poly Pomona Foundation is a “Learning-Centered Organization” that has the capacity to grow and is constantly changing to do things better. Excellence in service is the highest priority of the Foundation.

The Foundation has developed a system and climate of continuous improvement throughout the organization. Continuous improvement is nurtured and sustained so management and sta� are always alert to the possibilities for better ways to serve all our stakeholders.

2018 2019

FOUN

DA

TION

BU

SINESS PLAN

Cal Poly Pomona Foundation, Inc. Fiscal 2018-2019 Business Plan and Budgets

Table of Contents

Executive Overview Foundation Consolidated Business Plan and Budget Process ................ 2 2018-2019 Budget Review PowerPoint ................................................. 5 Summary

Proposed Budget Highlights ................................................................... 42 Summary of Sources and Uses of Funds ................................................ 50 Sources / (Uses) and Working Capital ................................................... 51 Summary Statement of Activity ............................................................. 52 Debt Service Coverage ........................................................................... 56

Capital Budgets ........................................................................................... 57 Asset Protection Management ................................................................ 61 Designated Gifts .......................................................................................... 65

Operating Budgets General Activities

Administration ........................................................................................ 75 Administration Executive ............................................................. 79 Financial Services ......................................................................... 90 Employment Services ................................................................... 101 Marketing ..................................................................................... 112 Real Estate Administration ........................................................... 124

CalPERS & EPO Plan ............................................................................ 127 Real Estate Development ........................................................................ 130 Investments ............................................................................................. 144

Enterprises ............................................................................................... 149 Bookstore ................................................................................................ 152 Dining Services ....................................................................................... 165 Kellogg West Conference Center & Hotel ............................................. 178 Foundation Housing Services ................................................................. 190 Facilities Management ............................................................................ 202 Bronco Bucks Office .............................................................................. 214

Supplemental Programs Continuing Education Programs ............................................................. 226

College of the Extended University ............................................. 230 College of Engineering ................................................................. 243 College of Science ........................................................................ 247

Agricultural Aid to Instruction Program ................................................ 250 Research and Sponsored Programs ......................................................... 286 Unrestricted and Restricted Foundation Programs ................................. 298

Long Term Cash Plan / Reserves .......................................................... 305 1

EXECUTIVE OVERVIEW

2

The 2018-2019 Foundation Consolidated Business Plan/Budget Process

Foundation Management began using a particular style and method of business planning in 1995 that was initiated following an intensive training program by the Management Action Program (MAP). This training provided a standardized method for Foundation management to set goals, determine action steps and monitor progress by reviewing various vital factors. Again, we decided it would be more efficient for each unit to develop their budgets at the same time they developed their business plans based on the concepts of MAP. The Foundation appreciates the contributions of everyone that participated in the planning process. Overview Short-term Planning Long-term Planning *30-Day Goals and Performance Plans *Administrative Work Plans *Business Plans *Annual Budgets *Multi-year Strategic Planning *Multi-year Cash Flow Planning 30-Day Goals The 30-day goals system is used as a Foundation management tool throughout the year to review the status of various action steps and projects of individual supervisors, managers and directors. 30-day goals are to be consistent with the due dates of business plan action steps and may also include other action steps deemed necessary during the year to meet goals. Each month, the status of the past 30-day period is reviewed and new 30-day goals are submitted for the upcoming month. Performance Plans Individual staff employees establish a personal performance plan with their supervisors. This is based on their job descriptions and performance factors related to how they contribute towards the success of their unit. Performance reviews objectively consider the extent to which their contributions have met with expectations. The Foundation’s Annual Performance Review process establishes how an employee’s performance rating relates to a position classification, grade level and possible merit increase on an annual basis. Merit increases can be paid only when a “merit pool” has been approved for a given budget year by the Foundation Board of Directors. Administrative Work Plans The Executive Director asks Directors to submit Administrative Work Plans and report on the status of objectives and performance indicators in those plans. The Foundation incorporates this process with the business planning process. Directors are asked to design their Administrative Work Plan objectives and performance indicators around the most critical goals in their business plans. Objectives and proposed actions are to have positive effects on their business plan goals. Performance indicators are to be measurable in terms of vital factors or other measurable process variables. Individual performance evaluations consider the extent of accomplishments in both Administrative Work Plans and 30-day goals.

3

Unit Business Plans The major operating and supporting units of the Foundation prepare annual business plans containing mission statements, assessments of strengths and challenges, survey results, keys to success, assessments of culture, major unit projects, business controls and vital factors, executive summaries, action steps, budgets and organizational charts. The purpose of the annual unit business plan is to have a detailed assessment and work plan for the fiscal year. The planning goal is to address the key Foundation operating issues and coordinate the planning process. The unit business plans address what actions are planned in order to meet or exceed the programming plans, projects, approved budgets and the measurement of progress. The unit business plans are one-year plans developed at the unit level involving appropriate staff, supervisors, managers and customer input from surveys. The unit business plans are working documents and action steps are monitored throughout the year. The unit business plans form the basis for the Foundation Consolidated Business Plan. Annual Budgets The budgets are based on certain assumptions including expected inflation, trends and enrollment levels. Foundation operating and support units prepare detailed annual budgets that incorporate approved business and strategic plan goals and concepts. The Foundation’s Board of Directors formally approves the budgets annually. Foundation management reviews and monitors fiscal performance on a monthly basis. Foundation Consolidated Business Plan and Monthly Meeting The Consolidated Business Plan is an executive summary of how the Foundation expects to perform and coordinate its activities. Each month, key Foundation directors meet to review and discuss their respective budgets and actual results providing written comments on any notable variance(s). At this meeting, each director reviews his/her operation with the management team. Directors are held accountable for their business plans and budgets. The Foundation Consolidated Business Plan is also designed as a working document. Each director who participates in the monthly meeting receives a copy of the plan. Strategic Plan Unit strategic plans are long-range plans and address multi-year planning issues. Strategic planning takes the business planning process one step further and includes information on industry trends, campus demographics, how needs of the University are addressed, changing technology, operational forecasts and anticipated capital needs up to 10 years out. The goal of strategic planning is to provide vision, direction and coordination of Foundation programs and assets. Strategic plans are typically updated every two or three years and are developed utilizing focus groups, research data, surveys and consultants. It is the intent of the Foundation to pursue the development of strategic planning for all major units of the Foundation.

4

2018 – 2019 BUDGET REVIEW

POWERPOINT PRESENTATION

5

- Proposed Revenues and Expenditures- Requests for Designated Gifts- Requests for Capital Improvements- Requests for New Staff Positions- Debt Service Coverage- Contributions to Reserves and Withdrawals from Reserves- Forecast of Current Year Revenues and Expenditures

Annual operating and capital budget for all activities include:

POLICY NO. 118 - Foundation Budget Process

6

General Activities- Administration - Accounting, Finance and Investments

- Employment Services - Management Information Systems

- Marketing - Real Estate Development and Management

Enterprises- Bookstore -Dining Services

- Kellogg West Conference Center -Foundation Housing Services

Designated Gifts

Supplemental Programs Restricted- Research and Sponsored Programs - Endowments/Investments

- Agriculture Aid-to-Instruction - Restricted Foundation Programs

- Non-credit Continuing Education

- Unrestricted Foundation Programs

Reserves

7

SURPLUS (DEFICIT)

Designated Gifts

NON-CASH TRANSACTIONS:

Depreciation and Amortization

Post Retiree Medical Benefits CalPERS Unfunded Accrued Liability Adjustment

FINANCING

RESERVESCapital Reserve

Residential Board Meal Program Surplus Reserve

Venture Capital/Real Estate Reserve

Insurance Reserve

Pine Tree Ranch Reserve

Agriculture Program Reserve

Withdraw of funds from Post Retiree Medical Benefit Trust

TOTAL SOURCES OF CASH

* Cash generated by Operations, Financing and Reserves $9.786 Million

Approved Budget Forecast Budget Proposed BudgetSOURCES OF CASH

9,786,010$

473,302 486,936 486,936

- -

14,750 14,750 -

1,274,771

500,000

9,315,701$ 10,169,273$

TOTAL SOURCES OF FINANCING - -

TOTAL SOURCES FROM RESERVES 622,052 1,021,686

- - -

54,000 20,000 132,835 80,000 80,000 -

530,000 207,337 (10,000)

-

- 704,548 -

TOTAL OPERATING SURPLUS (DEFICIT) 5,791,800 6,173,292 6,481,819 (1,577,573) (1,577,596) (1,696,832)

NET OPERATING SURPLUS (DEFICIT) 4,214,227 4,595,696 4,784,987

TOTAL CASH GENERATED BY OPERATIONS 8,693,649

500,000 -

75,000

2017-2018 2017-2018 2018-2019

9,147,587 8,511,239

3,949,422 3,640,006 3,736,252

8

Net Operating Surplus$4,784,987

49%

Depreciation $3,736,252

38%

Post Retiree Medical Benefits $(10,000)

0%

Reserves$1,274,771

13%

Sources of Cash

9

Revenues 100% 100% 100%

Expenditures Controllable 22% 23% 27%

Expenditures Non-Controllable 7% 6% 7%

Total Labor 73% 95% 82%

Total Expenditures 102% 125% 116%

Net Surplus (Deficit) -2% -25% -16%(803,380)$

334,836

4,052,763

5,717,996

4,914,616

1,330,397 1,067,518

286,525

(1,138,212)$

4,365,365

5,719,408

(100,207)$

4,889,786

1,046,876

338,324

ADMINISTRATION

3,504,586

% 0f

Revenue

4,789,579 4,581,196

2018-2019

Proposed Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

2017-2018

Approved Budget

10

Administration Fee Revenues

-

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

2017-2018 Approved Budget

2017-2018 Forecast Budget

2018-2019 Proposed Budget

11

Revenues 100% 100% 100%

Cost of Goods Sold 0% 0% 0%

Gross Margin 100% 100% 100%





Net Surplus 12% 13% 4%

4,037,672 4,099,279 4,622,122

573,505$ 621,411$ 169,451$

260,130 274,830

1,161,310 1,096,316 1,088,102

257,280

2,619,082 2,742,833 3,259,190

4,611,177 4,720,690 4,791,573

- - -

% 0f

Revenue

4,611,177 4,720,690 4,791,573

2018-2019

Proposed BudgetREAL ESTATE 2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

12

REAL ESTATESURPLUS/(DEFICIT)

DESCRIPTION

REAL ESTATE DEVELOPMENTCenter for Training Technology & Incubation

Innovation Village

Spadra Farm

Support for Lanterman OperationsTotal Real Estate Development

RENTAL BUILDINGSBuilding 66 - Classrooms & Offices

Building 97 - Offices

CTTi Building 220ATotal Rental Buildings

FACULTY HOUSINGFaculty Housing Total Faculty Housing

REAL ESTATE TOTAL

160,378

(166,032) 172,499

821,624

-

353,337

181,491

155,084

827,480

(418,632)

(88,268)

178,153

(500,000) (500,000)

2018-2019

Proposed Budget

31,713

621,411$

183,433

84,641 84,641

2017-2018

Forecast Budget

(153,142)

169,451$

85,220 85,220

2,884

2017-2018

Approved Budget

(3,860)

573,505$

794,035

-

290,175

148,802

119,093

164,237 164,237

137,643

(167,352)

(500,000)

13

Revenues

Investment Earnings 100% 100% 100%

Expenditures

Investment Advisor Fees 8% 6% 8%


Net Surplus 92% 94% 92%1,126,219$ 2,168,587$ 1,837,929$

99,320 133,422 153,454

99,320 133,422 153,454

1,225,539 2,302,009 1,991,383

% 0f

RevenueINVESTMENTS - GENERAL2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

2018-2019

Proposed Budget

14

Revenues Investment Earnings 90% 97% 88%

Donations 10% 3% 12%

Total Revenue 100% 100% 100%

Endowment Distributions 74% 34% 63%

Expenditures Non-Controllable

Administrative Fees 8% 4% 7%

Investment Advisor Fees 3% 2% 3%

Total Expenditures Non-Controllable 11% 6% 10%


Net Surplus 15% 60% 27%781,851$ 6,862,866$ 1,824,618$

4,349,824 4,519,946 4,974,557

570,402 630,394 691,380

140,067 195,525 204,168

430,335 434,869 487,212

3,779,422 3,889,552 4,283,177

5,131,675 11,382,812 6,799,175

512,000 286,815 812,004

4,619,675 11,095,997 5,987,171

% 0f

Revenue

2018-2019

Proposed Budget

INVESTMENTS -

ENDOWMENTS2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

15

Revenues 100% 100% 100%







Net Surplus 10% 10% 10%4,162,636$ 4,174,397$ 4,616,318$

25,380,834 25,105,796 26,761,130

11,356,446 11,265,382 12,553,402

8,349,103 7,981,070 8,188,422

5,675,285 5,859,344 6,019,306

29,543,470 29,280,193 31,377,448

13,620,292 13,492,756 13,349,921

43,163,762 42,772,949 44,727,369

% 0f

Revenue

2018-2019

Proposed BudgetENTERPRISES 2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

16

Revenues 100% 100% 100%







Net Surplus 4% 4% 3%426,166$ 319,852$ 433,676$

2,619,282 2,352,780 2,686,590

1,404,709 1,287,221 1,542,066

910,835 806,510 821,735

303,738 259,049 322,789

3,045,448 2,786,456 3,006,442

6,651,172 6,897,880 6,644,283

9,696,620 9,684,336 9,650,725

% 0f

Revenue

2018-2019 Proposed

Budget

2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

17

Revenues 100% 100% 100%







Net Surplus 5% 6% 5%1,225,713$

13,449,331 13,694,498 14,377,611

1,131,067$ 1,187,431$

3,372,408 3,338,111 3,334,280

7,609,502 7,747,776 8,562,644

2,467,421 2,608,611 2,480,687

14,580,398 14,920,211 15,565,042

6,969,120 6,594,876 6,705,638

% 0f

Revenue

21,549,518 21,515,087 22,270,680

2018-2019

Proposed Budget

2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

18

Revenues 100% 100% 100%





Net Surplus 3% 4% 4%50,737$ 70,161$ 78,602$

1,642,448 1,786,674 1,844,713

728,130 784,371 779,064

168,928 192,574 216,706

745,390 809,729 848,943

% 0f

Revenue

1,693,185 1,865,276 1,914,874

2018-2019

Proposed Budget

2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

19

Revenues 100% 100% 100%





Net Surplus 25% 25% 28%2,554,666$ 3,038,874$ 2,436,406$

7,669,773 7,271,844 7,852,216

1,614,105 1,446,014 1,669,628

3,896,932 3,643,875 3,815,701

2,158,736 2,181,955 2,366,887

10,224,439 9,708,250 10,891,090

% 0f

Revenue

2018-2019

Proposed Budget

2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

20

Revenues 100% 100% 100%





Net Surplus 3% 9% 12%145,020$ 535,170$ 373,906$

4,324,414 3,746,871 4,042,865

2,644,032 2,106,737 2,330,915

341,935 305,749 354,085

1,338,447 1,334,385 1,357,865

4,469,434 4,120,777 4,578,035

% 0f

Revenue

2018-2019

Proposed Budget

CONTINUING

EDUCATION2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

21

College of the Extended University - ProgramsAdministration

Program Development

Quality Management

Professional Project Management Program

Leadership & Management

Engineering & Manufacturing

Summer Support @ CEU

Business Comm & Grant Writing

Math & Science

Hospitality & Service Industry

Civil Engineering Review

Human Resources Management

Building & Construction Management

ED 2 GO

Global Ed Programs Standard

Global Ed Programs Camps

CPELI Camps

CPELI Standard

Summer Camps

CEU CPP Aviation Hospitality

CEU ASP

Total College of the Extended University Surplus

(3,862)

51,754

103,111

8,306 -

8,154 51,100 52,576

1,204 62,347 70,300

48,309

64,805

7,842

22,272

22,258

156,198

(1,004)

8,380

4,275

30,930

4,000

216,730

1,600

126,156

172

-

3,128

27,459

141,492

-

16,780

528 4,000

125,117

3,223

704

6,186

-

2,200

172

262

7,144

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget

27,153

(981)

-

73,981

6,717

24,897

12,352

108,184

CONTINUING EDUCATION PROGRAMS

137,497$ 403,877$ 532,787$

101,286

14,323

23,008

(311,613)

-

(284,897)

30,504

65,919

(292,520)

(3,806)

14,538

8,808

22

College of Engineering Non-Credit Learning Administration

Civil Engineering Review

Total College of Engineering Surplus

College of ScienceChemistry Agilent Project

Total College of Science Surplus 6,595 2,383

TOTAL CONTINUING EDUCATION SURPLUS 145,020$ 373,907$ 535,170$

2,383

2018-2019

Proposed Budget

2,383

5,140 (36,565) -

6,595 2,383

174

4,966

(7,849)

(28,716)

-

-

CONTINUING EDUCATION PROGRAMS 2017-2018

Approved Budget

2017-2018

Forecast Budget

23

Revenues 100% 100% 100%







Net Surplus (Deficit) -3% -1% 3%(46,797)$

3,219,498 2,867,791 2,860,907

(135,366)$ 106,333$

1,274,010 1,108,871 1,077,934

265,004 256,500 259,079

1,680,484 1,502,420 1,523,894

3,084,132 2,820,994 2,967,240

796,353 664,469 690,060

AGRICULTURE 2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

% 0f

Revenue

3,880,485 3,485,463 3,657,300

2018-2019

Proposed Budget

24

AGRICULTURE AID-TO-INSTRUCTION PROGRAMSSurplus/(Deficit) Budget Comparison Summary

DESCRIPTION

Agronomy Farms

Arabian Horse Center

Beef Unit

Fruit Industry

Meat Lab

Ornamental Horticulture

Pine Tree Ranch

Sheep Unit

Swine Unit

Vet Clinic

Pumpkin Festival

Westwind Ranch

Wasmansdorff House-Pine Tree

Agriscapes

Danny's Farm

Truck & TrailerFarm Store at Kellogg Ranch

Total Agriculture Aid-to-Instruction Programs

(33,787) 6,323 10,674

1,480

(46,797)$ 106,333$

29,809

-

-

(4,613)

57,360

(4,467)

-

56,745

(382)

221

-

614

309

403

7,043

59,766

160

664

1,690

171,660 339,626

2,614

8,271

19,627

(135,366)$

(429,507)

(13,968)

661

2,764

(20,000)

5,209

120,326

11,548

550

5,530

13,130

4,596

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget

(508,546)

(88,748)

(397,830)

-

86,182

11,149

56,007

(1,825)

8,618

116

326,398

25

Revenues 100% 100% 100%





Net Surplus 1% 1% 1%19,994$ 20,000$ 20,000$

1,485,006 1,372,510 1,401,318

142,702 107,202 200,264

630,000 583,875 595,935

712,304 681,433 605,119

% 0f

Revenue

1,505,000 1,392,510 1,421,318

2018-2019

Proposed BudgetRESEARCH OFFICE 2017-2018

Approved Budget% 0f

Revenue

2017-2018

Forecast Budget% 0f

Revenue

26

* President's Request

* Foundation Request

TOTAL REQUESTED

*

77,596 196,832

1,577,596$ 1,696,832$

Over the past five years the Foundation Board has designated over $6.95 million in cash for the

benefit of the University.

DESIGNATED GIFTS

2017-2018

Forecast Budget

2018-2019

Proposed Budget

1,500,000 1,500,000

Per Policy No. 118, the Foundation has included in this year's budget a contribution in support of the

University of $1,696,832. The contribution is funded from the prior year's surplus after requirements for

capital spending, reserves and debt service have been considered and includes the following:

27

USES OF CASHCAPITAL EXPENDITURES

Dining Services

Kellogg West

Bookstore

University Village

Administration

Real Estate

Agriculture

College of Extended University

Restricted FDN Progs - Arabian Horse Center

Prior Year Carryover

TOTAL CAPITAL EXPENDITURESFINANCING

University Village Bond Payment - 2013 & 2014 Series

CTTi Bond Payment - 2017 Series

TOTAL USES OF FINANCINGRESERVES

Agriculture Program Reserve @ 55% net Annual Surplus

CalPERS UAL 10-Year Amortization Model

Capital Reserve @ 1.75% of Gross Auxiliary Revenues

Innovation Village Demo Reserve

Insurance Reserve

Residential Board Meal Program Surplus Reserve excess 7%

Pine Tree Ranch Reserve @ 50% net Annual Surplus

Post Retiree Medical Benefits Trust - Note 1

Research & Sponsored Programs

Venture Capital/Real Estate Reserve @ 1% of Gross Revenue

TOTAL RESERVE CONTRIBUTIONS

TOTAL USES OF CASHNote 1 - The 2018-2019 budget includes funding $1 Million to the VEBA Trust for the OPEB obligation, and a withdrawal of $486,936

52,500

1,173,772

8,445,072$

(1) Capital Expenditures of $2.45 Million and carryover of $814,444 for a total of $3.27 Million

351,140

29,114

1,000,000

20,000

572,258

4,239,493 543,768

3,718,798

7,464,519$

30,000

1,000,000

20,000

8,191,026$

3,330,838

341,000

51,201

80,000

814,444

3,265,579

725,000

215,000

940,000

28,600

1,001,452

11,956

-

2,860,721 745,740

54,428

50,000 12,500

517,733

695,000

190,000

885,000

-

951,595

11,777

34,315

609,610

537,901

3,935,188

695,000

230,000

925,000

-

1,000,000

20,000

34,315

383,493

-

464,839

11,727

878,563

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget996,674

496,000

775,169

484,802

824,300

250,000

378,457

393,278

73,000

361,200

257,000

648,500

252,646

208,831

202,835

37,500

263,000

400,000

57,620

107,396

442,668

(1)

28

Prior Proposed Proposed Years Detail Total

RESERVES Remaining 2018-2019 2018-2019

University Village - 400,000 400,000

Replace heating & cooling units in 230, 220, 210 ($80,000), Stairway railings for 7

Phase II bldgs. ($70,000), Phase III boiler tube bundles ($30,000), Phase III hot water

storage tanks ($20,000), Various carpets ($50,000), Furniture 6 apartments Phase I

($65,000), Wi-Fi upgrade ($85,000), Solar hot water system Phase III ($40,000 paid

from a grant)

Bronco Bookstore - 263,000 263,000

Inventory Control System and Point of Sale System upgrades ($30,000), New floor for

downstairs area of the bookstore ($75,000), and Convert old lighting fixture to new

energy saving LED lights ($158,000)

Dining Services

Dining 65,474 361,800

Food management system recipe coding project ($10,000), Building 97 feasibility study

($27,500), Building 70 feasibility study ($27,500), Building 97 major refrigeration

makeover ($185,000), Building 97 electrical pm - preparation for campus

infrastructure electrical upgrade ($7,900), Analytics projects - enrollment, KPI

dashboards ($25,000), Leadership consulting and coaching ($20,000), Cash register

end-of-life replacement ($28,900), POS/Micro market/Biometrics innovation initiatives

($30,000)

Campus Center Overhead - 38,000 End-of-life electric cart replacements ($33,000), Hot food holding box ($5,000)

BSC Overhead - 46,000

Catering van ($25,000), Repair tile in kitchen ($20,000), Hot food holding box for

catering ($1,000)

Faculty Staff Café - 29,000 Interior refresh - updated furniture, display equipment, décor

Pony Express @ CLA - 49,000 Store remodel - paint, flooring, cabinetry, equipment

Brewing Education 25,000 - Misc. Educational lab upgrades as classes develop

Carl's Jr. 95,000 - Carl's Jr. brand mandatory refresh

Denny's 35,870 - Misc. equipment - dish machine, grille, refrigeration

H-Café - 27,500 Conversion of market to micro market (unstaffed)

Innovation Brew Works 8,000 45,000

Increase brewing capacity to 713 barrels/year - (1) 10 bbl brite tank, (2) 10 bbl

fermenters, grain mill upgrade

Poly Fresh 40,000 -

Replace open aired coolers, enlarge storage space ($30,000), Update shelving and

register stations ($10,000)

Coffee Cart - 40,000 Rework existing solar coffee cart to serve CLA Replacement Bldg.

CAL POLY POMONA FOUNDATION, INC.

2018-2019 PROPOSED CAPITAL BUDGET

29

Prior Proposed ProposedYears Detail Total


Kellogg West Dining 15,000 38,000

Lobby kiosk refrigeration unit for fresh food ($15,000), Routine dining rooms floor

replacements ($5,000), Folding chairs - wedding routine replacement ($6,000), Dance

floor for Kellogg House weddings ($12,000)

80,000 Los Olivos 80,000 - Box truck ($30,000), Equipment replacement ($50,000)

Subway - 20,000 Replace front line cold table

Round Table Pizza - 45,000

Realign front counter space to accommodate customer ease of through put and

mobile ordering, add 3 tap system - brewery kegs, add warmer to accommodate

increase in catering services, replace existing display case

Freshens - 75,000

Starbucks conversion equipment and start up cost ($20,000), Food equipment and

small wares ($15,000), Rebrand to Starbuck's WPS cabinetry, floor, paint, countertop,

tile, furnishings ($40,000)

International Grounds - 10,000 Espresso Machine - end-of-life espresso machine replacement

SCE Coffee Shop 15,000 - SCE Coffee Shop ($75K approved at BM#369, projecting $15K remaining)

Total Dining Services 824,300

Kellogg West Conference &

Hotel 41,400 250,000 250,000

Renovation & upgrades to all Bldg. 76 main conference center hallways & public areas

($25,000), Renovation/upgrade of 10 guest room a/c & heating units in Bldg. 77

($25,000), Replace outdated Bldg. 76 heating & a/c control boards, sensors & airflow

units ($75,000), Replace all fluorescent lighting with LED lights in Bldgs. 76, 78, & 78B

hallways, conference areas & meeting rooms ($125,000)Facilities - - - No capital budget requestedReal Estate ActivitiesBldg 97 10,000 - Entrance door replacement

132,835 Bldg 66 165,000 132,835 HVAC replacement - 2 chilled water air handling units

CTTI Buildings 5,000 70,000

Carpet replacement - tenant ($10,000), DDC Thermostat retrofit building #A

($30,000), DDC Thermostat retrofit building #B ($30,000)

Total Real Estate Activities 202,835

Research & Sponsored Prog - - - No capital budget requested

College of Agriculture

Agronomy Farm 75,000 - Replacement of irrigation mainlines ($75,000)



(CONTINUED)

30


RESERVES Remaining 2018-2019 2018-201975,000 Wasmansdorff House - 75,000 Landscaping

Total College of Agriculture 75,000

College of Science

Chemistry Agilent Project - - - No capital budget requested

CEU 20,000 80,000 80,000 Vehicle ($30,000), Cart ($10,000), and New carpet in Building A & B at CPELI ($40,000)

Restricted Fdn Programs

Arabian Horse Center 37,500 15,000 15,000 2 horse slant load trailer

Administration

Human Resources - 45,000 Kronos Dimensions - Upgrade HCM Platform

Administration - 25,000 Executive conference room furniture/carpet

Administration - 45,000 Bldg. 55 refresh

Management Info Systems 10,000 15,000

Windows 10/desktop updates - Rollout of new operating system to enterprise units

through VDI. Some hardware refreshes to improve speed, automation, and security,

including continued SSD disk upgrades where needed.


Analytics Licensing and Consulting Services - To continue the buildout of business

intelligence analytics dashboards for grants, enrollment, financial services and retail

operations

Management Info Systems - 55,000

Financial System Improvements - The upgrade of OneSolution to version 18 and

ongoing workflow development for vender data records, project agreements


CDD to Cognos report conversion - The upgrade of Cognos to version 11 and full CDD

to Cognos report conversion to enhance Enterprise reports with Business Intelligence

improvements


Storage Workspace remodel - Enclose storage area in the east annex of building 55 for

computer equipment storage, and remodel of cubical space for IT staff to provide

more centralized support

Management Info Systems 9,500 -

Mobile Device Management - Software system to provide mobile file access and

security improvements



(CONTINUED)

31



Management Info Systems 30,000 -

Event and Space Management - License/upgrade buy-in to a software system

providing campus wide space management. The vendor will either be EMS or

CollegeNet.


B55 Fiber and Switch Upgrade - Installation of fiber and respective switches to provide

smooth migration of data to the new data center POD, and improved services to the

building


Credit Card Monitoring Software - Software to provide real-time monitoring and

alarms for all credit card transactions processing through the Foundation


Odyssey Activity Module - Provides advanced monitoring and analytics capabilities in

current Bronco Card system


Travel Expense Management - Concur software installation, using yearly report count,

buy-in through university licensing agreement and concur SAE/p-card integration.

Total Administration 341,000

Prior Years and Proposed Capital Budget 814,444 2,451,135

Total Prior Years and Proposed Capital Budget 3,265,579

287,835 Capital Funding from Reserves (287,835)

Capital Funding from Operations 2,977,744

Note - The proposed capital budget assumes funding of $132,835 from the Capital Reserve, $80,000 from the Residential Board Meal Program

Surplus Reserve, and $75,000 from the Pine Tree Ranch Reserve.



(CONTINUED)

32


Dining Services

Kellogg West

Bookstore

University Village

Administration

Real Estate

Agriculture












Insurance Reserve








8,191,026$ 7,464,519$ 8,445,072$

(2) Principal Debt Payment of $940,000

537,901 543,768 572,258

3,330,838 3,718,798 4,239,493

1,000,000 1,000,000 1,000,000

20,000 20,000 20,000

383,493 517,733 351,140

- 30,000 29,114

11,727 11,777 11,956

34,315 34,315 51,201

- - 28,600

464,839 951,595 1,001,452

878,563 609,610 1,173,772

925,000 885,000 940,000

695,000 695,000 725,000

230,000 190,000 215,000

3,935,188 2,860,721 3,265,579

54,428 57,620 80,000

745,740 - 814,444

50,000 12,500 52,500

648,500 442,668 202,835

252,646 107,396 37,500

361,200 393,278 400,000

257,000 208,831 341,000

496,000 484,802 250,000

73,000 378,457 263,000

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget996,674 775,169 824,300

(2)

33

DescriptionChange in Unrestricted Net Assets

Add Back:

University Designated Expenditures

Surplus (Deficit) before Designated ExpendituresAdd Back:

Depreciation and Amortization

Interest Expense (see detail below)

Transfer of assets to the UniversityAvailable for Debt Service

Maximum Annual Debt Service 2

2013 & 2014 Series Bonds

2017A & 2017B Series BondsTotal Debt Service

Total Debt Service before Designated Expenditures 1

Total Debt Service after Designated Expenditures

Notes: 1

2

3

Interest Detail2013 & 2014 Series Bonds - Interest

2017A & 2017B Series Bonds - Interest

Other

TOTAL INTEREST EXPENSE 1,105,837 1,105,837 1,065,416

1,020,333 1,020,333 984,583

Per Section 4.4 of Executive Order 994, the Foundation shall generate a debt coverage ratio of at least 1.25.

Maximum annual debt service is reported as the total amount of scheduled debt service during the year in which the debt service is scheduled to be

highest during the life of the Bonds

For the Actual Debt Service calculation, the actual annual debt service is used instead of the maximum annual debt service used in the forecast and

894,927

5.36 5.39 5.57

4.58 4.62 4.74

1,721,125 1,721,125

302,875 302,875

2,024,000 2,024,000 2,024,000

1,105,837

3,640,006

1,105,837

3,736,252

1,065,416

3,949,422

DEBT SERVICE COVERAGE (Fiscal Year Ended June 30)

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget

4,214,227 4,595,696 4,784,987

2016-2017

Actual 3

6,872,804

1,577,573 1,577,596 1,696,832

5,791,800 6,173,292 6,481,819

-

6,872,804

3,781,999

1,001,878

10,032,841

(1,623,840)

1,001,878

- - -

Transfer of assets is not included in the forecast or proposed budgets.

proposed budgets; and University Designated Expenses are also not added back in the calculation.

1,720,000

383,125

2,103,125

4.77

4.77

10,847,059 10,919,135 11,283,487

1,721,125

302,875

34,714 - - -

72,237 85,504 85,504 80,833

34

* Policy No. 103

Indirect Cost (Disallowance) Reserve

* Policy No. 170

Agriculture Program Reserve

Pine Tree Ranch Reserve

* Policy No. 171

Res Board Meal Program Surplus Reserve

Cafeteria Equipment Replacement Reserve

* Policy No. 172

Operating Reserve

Capital Equipment Reserve

Venture Capital/Real Estate Reserve

* Policy No. 173

Funded portion of Retiree Medical Benefits

* Policy No. 174

Insurance Reserve

* Policy No. 175

Research & Sponsored Programs Reserve


* Policy No. 134

Emergency Reserve

* CalPERS UAL 10-year Amortization Model120,037

7,947,119

8,433,927

2,040,552

1,026,128

197,277

91,137

106,521

67,555

75,000

3,789,243

182,062

-

-

-

-

-

132,835

500,000

486,936

75,000

80,000

-

28,600

29,114

351,140

-

- 346,406

The Foundation's Reserves, OPEB & Pension are comprised of the following:

Contributions RequestsBalance at

June 2019

-

1,173,772 - 1,783,382 -

-

1,001,452

572,258

1,000,000

51,201

20,000

11,956

35


Dining Services

Kellogg West

Bookstore

University Village

Administration

Real Estate

Agriculture












Insurance Reserve








8,191,026$ 7,464,519$ 8,445,072$

(3) Contribution to Reserves $4.24 Million

537,901 543,768 572,258

3,330,838 3,718,798 4,239,493

1,000,000 1,000,000 1,000,000

20,000 20,000 20,000

383,493 517,733 351,140

- 30,000 29,114

11,727 11,777 11,956

34,315 34,315 51,201

- - 28,600

464,839 951,595 1,001,452

878,563 609,610 1,173,772

925,000 885,000 940,000

695,000 695,000 725,000

230,000 190,000 215,000

3,935,188 2,860,721 3,265,579

54,428 57,620 80,000

745,740 - 814,444

50,000 12,500 52,500

648,500 442,668 202,835

252,646 107,396 37,500

361,200 393,278 400,000

257,000 208,831 341,000

496,000 484,802 250,000

73,000 378,457 263,000

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget996,674 775,169 824,300

(3)

36

Total Sources of Cash

Total Uses of Cash

NET SOURCES (USES) OF CASH - Note 1

Beginning of the Year Working Capital Less Contingency

Net Working Capital Available End of Year - Note 2

Minimum Two Months Working Capital Reserve Required

Note 1 - Post Retirement Medical Benefit - The actual funding is $1.0 Million each year

Note 2 - Net Working Capital does not include cash advances for Sponsored Programs per policy #172

16,930,655 18,271,593

7,362,693$ 7,947,119$

1,124,675 2,704,754 1,340,938

14,225,901 16,930,655

9,315,701 10,169,273 9,786,010

8,191,026 7,464,519 8,445,072

SUMMARY OF SOURCES AND USES OF CASH & WORKING CAPITAL RESERVE

2018-2019 Proposed Budget

2017-2018

Approved Budget

2017-2018

Forecast Budget

2018-2019

Proposed Budget

37

(Fiscal Viability) & Reserves

Long-Range Cash Forecast includes ten year forecaster of:

- Surplus (Deficit)

- Non Cash Transactions

- Financing Activities

- Capital Improvements

- Designated Gifts

- Reserve Draws / Contributions

- Net Cash Available

POLICY NO. 172 - LONG-RANGE CASH FORECAST

38

Cal Poly Pomona Foundation, Inc.

Long Term Cash Plan/Reserve ACTUAL FORECAST PROPOSED 5 YEARS 10 YEARS BALANCES

Amounts in Thousands 2017 2018 2019 2020-2024 2020-2029 2029

SOURCES OF CASHExcess of Revenue over Expenditures

Total Surplus (Deficit) - Operations 6,873 6,174 6,482 41,497 92,457

Non-Cash Transactions

Depreciation 3,782 3,639 3,736 18,680 37,360

CalPERS Unfunded Accrued Liability Adj. - 705 - - -

GASB 45 - Post Retiree Medical Benefits 732 207 (10) 557 739

Total Non-Cash Transaction 4,514 4,551 3,726 19,237 38,099

TOTAL CASH GENERATED FROM OPERATIONS 11,387 10,725 10,208 60,734 130,556 TOTAL FINANCING ACTIVITIES - - - 15,000 15,000

TOTAL RESERVE ACTIVITIES 1,706 1,022 1,275 12,608 23,030

TOTAL SOURCES OF CASH 13,093 11,747 11,483 88,342 168,586

USES OF CASHCapital Project Requirements 498 2,861 3,265 31,794 40,110

Financing Activities 875 885 940 10,507 23,337

Designated Gifts 1,050 1,578 1,697 9,846 22,412

Reserve Contributions 4,419 3,720 4,239 19,086 31,457 43,924 28,436

TOTAL USES OF CASH 6,842 9,044 10,141 71,233 117,316

Net Change in Cash 6,251 2,703 1,342 17,109 51,270

Cash Available 14,226 16,929 18,271 35,380 69,541

Minimum Two Month Working Capital Reserve Required 7,363 7,947

RESERVE

GOALS

39

*

*

*

General, Enterprise, Supplemental Programs, Designated Gifts and Reserve Budgets for Fiscal Year 2018-19 Resolution

WHEREAS, Pursuant to the provisions of the Compliance Guide for California State University Auxiliary Organizations Section 11.7, the Cal Poly Pomona Foundation’s proposed operating budgets and forecast

include: General Activities (Administration; Real Estate & Investments); Enterprise Activities (Bookstore/Dining Services/Kellogg West/Foundation Housing); Supplemental Programs (Research Office, Agriculture Units, Continuing Education, Restricted and Unrestricted Foundation Programs); Designated Gifts; Reserves and Capital Budgets; along with the Summary of Sources and Uses and Working Capital; Statement of Activities; Debt Service Coverage; and Long Term Cash Plan/Reserves. The Foundation’s

governing Board accomplishes these activities by reviewing and approving the annual operating and capital budgets before the start of each fiscal year. Necessary changes to the approved budgets may be made by the governing Board as the fiscal year progresses, and

WHEREAS, the Foundation Budget Process Policy No. 118, provides that Foundation Administration will present annually the operating and capital proposed budgets, forecasts and supporting detailed schedules and information to the Board of Directors; and

WHEREAS, the budget includes contributing a blended rate of 12.86% to the three pension Plans with CALPERS for a total of approximately $1,528,620 (Normal Cost of all three plans); contribute an additional $912,327 for a total of $1,387,752 to the 2%@55 Plan, $124,807 to the 2%@60 Plan and $136,630 to the 2%@62 Plan; changes to salary grades; a 3% or approximately $245,000 wage adjustment for eligible employees (“Eligible employees” are regular benefited employees paid from non-grant funds, who were hired

prior to the beginning of this 2017-18 fiscal year and if they had any pay adjustments due to promotions or job restructures during the 2017-18 fiscal year, they would receive a pro-rata share, and among the other employees includes the Officers of Foundation); contribute $1.0 million and withdraw $486,936 with the VEBA Trust.

40

*

*

*

Passed and adopted this 22nd day of May 2018.

By:Dr. Samir Anz, Secretary/TreasurerCal Poly Pomona Foundation Board of Directors

WHEREAS, the Foundation management has prepared and presents these proposed operating and capital budgets and forecasts, designated gifts, reserves and long range plan/reserve, and

WHEREAS, the Board of Directors has reviewed and discussed these proposed operating and capital budgets and forecasts, designated gifts, reserves and long range plan/reserve pursuant to Foundation Budget Process Policy No. 118, and

NOW, THEREFORE, the Board of Directors approves the Proposed Operating and Capital Budgets for fiscal year 2018-19 and forecasts for fiscal year 2017-18 for General Activities, Enterprise Activities, Supplemental Programs, Designated Gifts, Reserves and the long-range cash plan/reserve.

General, Enterprise, Supplemental Programs, Designated Gifts and Reserve Budgets for Fiscal Year 2018-19 Resolution

41

SUMMARY

42


PROPOSED 2018-19 BUDGET HIGHLIGHTS

The operating and capital budgets will provide the University with convenient and appropriate goods and services at reasonable prices along with the development of additional assets and resources for the University to support student success. The budgets are subject to assumptions, estimates, forecasts and judgment by the management and directors of the Foundation which cannot predict all the actions or inactions, risks and uncertainties over which there may not be control that could cause actual results to differ materially. Some factors that may cause such a difference include:

The state budget Decline in enrollment Unfavorable economic conditions Investment portfolio returns Increased operating costs Shortages of qualified personnel and strikes Costly compliance to new regulations Risks associated with providing services to international markets Risks associated with expansion and renovations Competition (on and off-campus) Use of campus facilities Unpredictability of completion of construction projects Employment and liability claims against the Foundation Proposals which are not awarded for grants and contracts Environmental liability and regulations

As a result, the Foundation’s operating and capital budgets are based on assumptions, historical performances and the judgment of management on how the Foundation will financially perform over the next fiscal year. The Foundation has used sound business principles and practices to develop a budget that reflects the needs and obligations of the Foundation. The proposed restricted and unrestricted budget is projected to generate a surplus of $10.9 million based upon budgeted revenues of $88.8 million and budgeted expenditures of $77.9 million. As we have done in prior years, the proposed budgeted revenues and expenditures excludes $12.9 million in direct grant activities as these restricted activities generate no surplus or deficit. The proposed unrestricted operating revenues of $64.7 million offset by the expenditures of $61.8 million generate a net unrestricted surplus of $2.9 million. The proposed unrestricted operating budgeted revenues are projected to increase $3 million or 4.9% over the current year forecast mainly due to Housing, Dining Services and Continuing Education. In arriving at this surplus, management recommends the following:

Propose a $4,283,177 million endowment spending/distribution in July 2018 due to the forecasted earnings based upon our spending policy or terms of our endowments.

43

Allow for a modest 3.0% increase in traditional board meal plans; Allow for a 3.0% increase in license fee rates at University Village and assume

academic year and summer occupancy of 97% and 30% respectively; Foundation has three different pension formulas (or “Plan”) for its employees including

the 2%@55 Plan, the 2%@60 Plan, and the 2%@62 Plan. The employee’s hire date determines which Plan is applicable for an employee along with their status as a “benefited employee”. Foundation and its benefited employees both contribute to their respective pension Plan. The rates paid by employees are 5%, 7%, and 6.25% respectively, and the weighted average rate for all three Plans paid by Foundation is 12.86% or $1,528,620 of benefited payroll of $11.9 million. The weighted average rate increased from 11.33% to 12.86% resulting in a budgeted increase of $241,042. All three pension Plans are in their respective Risk Pool with CalPERS.

Contribute an additional $912,327 for total of $1,387,752 to the 2%@55 Plan to continue to reduce the UAL based on a 9 year model (2nd year of 10 year plan), $124,807 to the 2%@60 Plan and $136,630 to the 2%@62 Plan;

A 3% or approximately $245,000 wage adjustment for 156 employees; A 5% annual increase cap for Foundation’s portion of health insurance premium,

previously approved by the Board; Parking subsidy of $76,000 for full time employees (excluding MCP employees) and

part time employees of $25,000; Increasing the minimum hourly rate of pay for all full time employees to at least $15 per

hour resulting in a cost of about $34,000; Eliminating and rolling grades 1 – 5 to grade 6 and changing all grades’ current

maximum rate of pay to the next grade except the Executive Director position will be increased to reflect current market conditions, and

Contribute $1.0 million to the VEBA Trust and a withdrawal of $486,936 from the VEBA Trust. The Plan Fiduciary Net Position as a percentage of the Total OPEB Liability is 53% or $6.5 million unfunded per the latest actuarial study dated July 1, 2017.

The proposed debt service coverage beginning with the net unrestricted surplus (including General Investments) and adding back the designated gifts, depreciation and interest generates a proposed coverage of 5.57 before and 4.74 after the designated gifts. The proposed budget and forecast meets the CSU Executive Order 994; section 4.4 requires a debt coverage ratio of at least 1.25 and the Foundation currently does not have any proposed capital projects that require additional bond financing. The proposed unrestricted operating, non-cash transactions including depreciation, financing and uses of reserves as reported in the Summary of Sources of Cash, generates $9.8 million from the following activities:

Operating surplus $ 6,481,819 Designated Gifts to the University (1,696,832) Non-cash depreciation and amortization 3,736,252 Non-cash retirement medical (10,000) Reserves 1,274,771 Total cash generated $ 9,786,010

The proposed unrestricted uses of cash of $8.4 million are for the following activities:

Capital improvement requests $ 2,451,135

44

Capital improvement carry forward 814,444 Principle bond payments 940,000 Contributions to reserves 4,239,493 Total cash used $8,445,072

The proposed capital budget request of $2.4 million includes requests from University Village, Bronco Bookstore, Dining Services, Kellogg West Conference Center, Real Estate, Agriculture-to-Instruction, Continuing Education, Restricted Foundation Programs, and Administration. General Activities – include administration and real estate and are projected to generate a deficit of $633,929 versus a forecasted deficit of $516,801 mainly due to the forecasted adjustment in the pension obligation from CalPERS investment returns less than projected. Administration revenues are mainly comprised of fees and are budgeted to increase 7.0% or $319,990 mainly due to the administration of the awards from the Kellogg Legacy Project Endowment distributions and University Village. Administration is proposing to generate a deficit of $803,380 versus a forecasted deficit of $1,138,212 mainly due to forecasted adjustment of $704,548 from CalPERS investment returns less than actuarially assumed and the EPO Health Care Plan forecast of $206,418. Proposed controllable expenditures increased due to the parking subsidy of $111,000 and additional consulting/recruiting of $125,000. Administration is requesting an accounts payable/travel position. Administration is requesting a capital budget of $341,000 for the following: Kronos Dimensions - Upgrade, $45,000; Executive conference room furniture/carpet, $25,000; Bldg 55 office upgrades, $45,000; Windows 10 /desktop updates, $15,000; Analytics Licensing and Consulting Services, $15,000; Financial System Improvements, $55,000; CDD to Cognos report conversion, $40,000; Storage Workspace remodel, $30,000; BDD Fiber and Switch Upgrade, $35,000; Credit Card Monitoring Software, $15,000; Odyssey Activity Module, $11,000; and Travel Expense Management, $10,000. Real Estate includes development, building rental and faculty staff housing and is projecting to generate a surplus of $169,451 versus a forecasted surplus of $621,411 and includes support of $500,000 for Campus South and the write off of development costs at Spadra of $418,632. The Real Estate Division is requesting a capital budget of $202,835 for Building # 66 – HVAC replacement, $132,835; and Carpet replacement, $70,000. General Investments are budgeted to generate a surplus of $1,837,929 versus a forecasted surplus of $2,168,587 assuming a proposed annualized returns of 4.6% equities, 4.3% alternatives, 1.54% dividends and 2.84% interest. Contribute to the portfolio, include $4.3 from endowment distribution, $4.0 million from operations and distribute $520,500 of interest (yield) to the Program and Scholarship accounts and fiscal year June 2019 proposed portfolio value of $71.5 million. Endowment Investments, Distribution and Donations - Investments are budgeted to generate a surplus of $1,824,618 versus a forecasted surplus of $6,862,866 due to forecasted investment earnings greater than proposed. We assumed annualized returns of 4.6% equities, 4.3% alternatives, 1.51% dividends and 4.36% interest. Total investment fees are forecasted and proposed to be 0.38 basis points. We budgeted a $4.3 million endowment spending/distribution in July 2018 due to the forecasted earnings based upon our spending policy or terms of our endowments. Endowment donations are projected to be $800,000 resulting in a proposed endowment portfolio value of $105 million by June 2019.

45

Bronco Bookstore – Proposed revenues are projected to decrease by 0.35% or $33,611 to $9.6 million generating a proposed surplus of $319,852 or 3.3% versus a forecasted surplus of $433,676 or 4.5%. Course material revenues from sales/rental are projected to decrease 4.5% or $256,726; software and hardware sales are projected to increase 19% or $220,948, commissions increased 66% or $68,579 and gifts increase 12% or $71,000 offset by decrease in soft goods of 10.7% or $132,500. Bronco Bookstore program changes include the expansion of "Instant Access" course materials fee pilot program and a pilot program for students to charge their financial aid account for purchases at the Bookstore. Bronco Bookstore is requesting an e-commerce position. Bookstore is requesting a capital budget of $263,000 for inventory control and point of sale system upgrades, $30,000; replace downstairs flooring, $75,000; and energy saving LED lighting fixtures, $158,000. Dining Services - Proposed revenues are projected to increase by 3.5% or $755,593 to $22.3 million generating a surplus of 5.3% or $1.2 million versus a forecasted surplus of 5.7% or $1.2 million. Retail revenues are projected to increase by 8% or $825,883 to $10.7 million generating a surplus of $679,592 versus a forecasted surplus of $494,903. The increase in retail revenue is driven primarily by the new Edison Starbucks venue $214k, Peets/Freshens rebrand to Starbucks @ BSC $200k, Brewing Education Program $103k, as well as organic growth in other retail operations i.e. Starbucks and Innovation Brew Works. Kellogg West catering and conference dining revenues are projected to increase 7.6% or $210,941 generating a surplus of $317,337. Board dining revenues are projected to decrease 3% or $265,638 to $8.4 million generating a surplus of $908,892 versus a forecasted surplus of $1.0 million. Dining Administration is projecting a $724,833 deficit, versus a forecast $747,223 deficit. Program changes include the new mobile food ordering program (Tapingo) at 20 dining locations; launch of our assistant brewer's education program; and the C-Store point of sale (POS) electronic data interface (EDI) and Resident Dining Menu Management EDI to streamline ordering, receiving, inventory, and vendor payments. Dining Services is requesting a supervisor at Fresh Escapes, a supervisor at Starbucks BSC and a brewing education coordinator. We propose to accelerate the state mandated minimum wage for all full time staff to $15/hour by moving those staff to a minimum salary grade 6. Dining Service’s capital budget request of $824,300 includes the following: Dining Administration: Food management system recipe coding project $10,000, Building 97 feasibility study $27,500, Building 70 feasibility study $27,500, Building 97 major refrigeration makeover $185,000, Building 97 electrical pm - preparation for campus infrastructure electrical upgrade $7,900, Analytics projects - enrollment, KPI dashboards $25,000, Leadership consulting and coaching $20,000, Cash register end-of-life replacement $28,900, POS/Micro market/Biometrics innovation initiatives $30,000. Campus Center Overhead: replace two electric carts $33,000, hot food holding box $5,000. Bronco Student Center Overhead: Catering van $25,000, Repair tile in kitchen $20,000, hot food holding box for catering $1,000. Faculty Staff Café: Interior refresh - updated furniture, display equipment, décor $29,000. Pony Express at CLA: Store remodel - paint, flooring, cabinetry, equipment $49,000. H-Café: Conversion of market to micro market (unstaffed) $27,500. Innovation Brew Works: Increase brewing capacity to 713 barrels/year - (1) 10 bbl brite tank, (1) 10 bbl fermenters, grain mill upgrade $45,000. Coffee Cart: Rework existing solar coffee cart to serve CLA Replacement Bldg $40,000. Kellogg West Dining: Lobby kiosk refrigeration unit for fresh food $15,000, Routine dining rooms floor replacement activities, $5,000, Folding chairs - wedding routine replacement $6,000, Dance floor for Kellogg House weddings $12,000. Subway: Replace front line cold table $20,000.

46

Round Table Pizza: Realign front counter space to accommodate customer ease of through put and mobile ordering, add 3 tap system - brewery kegs, add warmer to accommodate increase in catering services and mobile ordering activities, replace existing display case $45,000. Freshens: Starbucks equipment and start-up cost $20,000, Food equipment and small wares $15,000, Rebrand to Starbuck's WPS cabinetry, floor, paint, countertop, tile, furnishings $40,000. International Grounds: Espresso Machine - end-of-life espresso machine replacement $10,000. Kellogg West Conference Center & Hotel – The proposed budgeted revenues are projected to increase by 2.6% or $49,598 resulting in a surplus of $70,161 versus a forecasted surplus of $78,602. Kellogg West proposes meeting/conference and hotel demand will continue to increase in 2018-2019 with a continued demand for more affordable facilities that offer excellent service and clean, high quality facilities that meeting planners expect. Also, as has been the case for several years now, Kellogg West continues to see clients who are still seeking out "educational" locations/venues such as Kellogg West. Kellogg West is also seeing a much more competitive College of The Extended University/Global Education Institute focusing on offering training to international professionals from around the world through their Global Education Programs. Their concerted efforts, especially in the Asian marketplace have increased hotel room revenues due to the year-round extensive variety of Study Abroad options for students who wish to engage in international or multi-cultural studies. These efforts have opened up other opportunities for additional Clients through the SoCal Asian tour companies looking for educational/university locations and venues such as Cal Poly Pomona. Kellogg West Conference Center and Hotel is requesting capital funds of $250,000 for the following: Bldg. 76: Renovation & upgrades to main conference center hallways & public areas $25,000 and replace outdated heating & a/c control boards, sensors & airflow units $75,000; Bldg. 77: Renovation/upgrade of 10 guest room a/c & heating units $25,000, and Bldgs. 76, 78, & 78B: Replace all fluorescent lighting with LED lights in hallways, conference areas & meeting rooms $125,000. University Village – The proposed revenues are projected to increase by 12.1% or $1,182,840 resulting in a surplus of $3.0 million versus a forecasted surplus of $2.4 million. We are basing our budget on a projected 97% average occupancy rate during the academic year and projecting 30% occupancy for the summer. We believe this is an effective budget allowing for a necessary 3.0% increase in license fee rates in all Phases while preserving an economic first rate quality of life offered to our residents. Due to the shortened summer because of semester conversion, we are planning for only the most critical maintenance projects. We also have a shorter window to accommodate summer conferences, so we are not expecting much revenue from that area this year. University Village is requesting a capital budget of $400,000 for the following: Replace heating & cooling units in 230, 220, 210 $80,000, Stairway railings for 7 Phase II bldgs. $70,000, Phase III boiler tube bundles $30,000, Phase III hot water storage tanks $20,000, Various carpets $50,000, Furniture 6 apartments Phase I $65,000, Wi-Fi upgrade $85,000, Solar hot water system Phase III ($40,000 paid from a grant) Continuing Education - includes non-credit programs from the College of the Extended University and the College of Science and is projecting to generate a surplus of $535,170 versus a forecasted surplus of $373,906 on revenues of $4.6 million, an increase of 11% or $457,258 over forecasted revenues.

47

College of the Extended University – The proposed budget includes an increase in revenues of 11.2% or $458,446 generating a net surplus of 11.7% or $532,787. There is downside risk due to continued uncertainty in global economic and political situations, which could result in perhaps only 7% increase in revenue and net. CEU plans to expand our program recruitment to new countries - including Indonesia, Nepal, Sri Lanka, Vietnam, and Thailand - as well as to new areas within China and Korea. Our domestic programs are expected to benefit from continuing success of the Utility Planner Certificate (UTC) program developed in conjunction with SCE; additional sections of popular brewing courses; an expansion of the brewing program that we have in partnership with Innovation Brew Works with a new program for assistant brewers; and offering ServSafe certifications required for all CCHM students (and for all food managers in California). "CEU Summer Camp" is our Migrant Education program and this coming summer will experience a continued expansion in the number of school districts who contract with us for these camps. CEU has included a new position in 2018-19 in the Business Operations department to assist with the growing workload that has resulted from new programs and increased enrollments and to support additional business development. College of the Extended University is requesting a capital budget of $80,000 for a vehicle, $30,000, cart $10,000 and new carpet in bldgs. A & B at CPELI, $40,000. Agricultural Programs – The proposed budgeted revenues increase 4.9% or $171,837 to $3.6 million generating a surplus of 2.9% or $106,333. The majority of the Agricultural Program revenues are in Plant Science that generates $3.3 million or 91% of revenues and generates a surplus of $105,672 versus Animal Science with revenues of $336,200 or 9% of revenues and generates a surplus of $661. While the Arabian Horse Center activities continue to be managed by the Huntley College of Agriculture, the proposed budget is included with the Restricted Foundation Programs to provide additional funding from the Kellogg Legacy Endowment Project and budgetary oversight by the Provost’s Office. Pine Tree Ranch house renovation will be completed to re-establish students’ presence to assist in management and utilization as an educational and research activity. Increase the activities at AgriScapes with more school fieldtrips, community outreach that may generate more sales for the Farm Store and Nursery. Develop a certified organic line of produce at Spadra Farm and establish an apiary area for Bee Science to be used with community education. Agriculture Programs is requesting a capital budget of $75,000 for landscaping the Wasmansdorff House at Pine Tree Ranch. Research Office – Research and Sponsored Programs consists of two projects. The Office of Research and Sponsored Programs proposed budget is projecting to generate a surplus of $255,337 versus a forecasted surplus of $335,194 that is used to distribute the indirect fees of $235,337 versus a forecasted distribution of $315,194 to the Division of Academic Affairs and the respective college for their participation in the grant, generating a proposed budgeted net surplus of $20,000. This budgeted net surplus will be used to fund the patent reserve. Proposed indirect cost return revenues are consistent with previous years and continue to show improvements in the overall rates of indirect cost reimbursements for current awards. There appears to be indications of growth in grant expenditures which is attributed to an increase in the number of active sponsored projects. There were several new and continued funding received from the U.S. Department of Education amounting to over $6 million combined project costs; although little to no recovery is allowed on these awards, per federal regulations. However, the McNair award will generate 8% indirect cost return. The Research Office is requesting a non-financial post-award position to assist with finalizing grant budgets, facilitating execution of agreements and other documents required to establish awarded grants.

48

Board Designated Gifts – for the benefit of the University is projected to increase 7.5% or $119,236 to $1.7 million; this year’s designated request includes public & campus engagements for public relations - $411,500; Programs for student travel, Council of Chairs, Ink & Clay, iLab, AAAS Conference, College of Business 50th Anniversary, College of Environmental Design 25th Anniversary, Community Outreach Events and Instructional Materials - $156,220; Athletics - $75,000; Division of Advancement’s Outreach, Cultivation, Development & Stewardship, Internal & External Communications, infrastructure & Capacity Building, and University-wide events - $613,500; President’s Campus Events, Staff Council, Regional Economic Development Association, Sponsorships CPP Organizations and Higher Education Commission - $243,780; Administration of Kellogg Legacy Project Endowment distributions $179,500; and Faculty Staff Café $17,332. Unrestricted Foundation Programs – Revenues and expenditures of $630,174 are projected to remain the same as the forecast and breakeven. Restricted Foundation Programs - Revenues are budgeted to decrease by 2.0% or $316,804 to $15.3 million and expenditures are budgeted to decrease by 1.1% or $122,528 to $11 million generating a surplus of $4.3 million. The Restricted Foundation Programs are requesting a capital budget of $15,000 for two horse slant load trailers for the Arabian Horse Center.

49

CAL POLY POMONA FOUNDATION, INC.2018-19 PROPOSED BUDGET

SUMMARY OF SOURCES AND USES OF FUNDSRevised

2017-2018 2017-2018 2018-2019PROPOSED BUDGET FORECAST PROPOSED BUDGET

SOURCES OF CASHSURPLUS (DEFICIT)

Administration (100,207) (1,138,212) (803,380) Real Estate 573,505 621,411 169,451 Investments 1,126,219 2,168,587 1,837,929 Bookstores 426,166 433,676 319,852 Dining Services 1,131,066 1,225,713 1,187,431 Kellogg West Conference Center 50,737 78,602 70,161 University Village 2,554,666 2,436,406 3,038,874 Supplementary Programs 29,648 347,109 661,501

TOTAL OPERATING SURPLUS (DEFICIT) 5,791,800 6,173,292 6,481,819 Designated Gifts (1,577,573) (1,577,596) (1,696,832)

NET OPERATING SURPLUS (DEFICIT) 4,214,227 4,595,696 4,784,987 NON-CASH TRANSACTIONS:

Depreciation and Amortization 3,949,422 3,640,006 3,736,252 Post Retiree Medical Benefits - See Note 1 530,000 207,337 (10,000)CalPERS Unfunded Accrued Liability Adjustment 704,548 0

TOTAL CASH GENERATED BY OPERATIONS 8,693,649 9,147,587 8,511,239 FINANCING

TOTAL SOURCES OF FINANCING - - - RESERVES

Capital Reserve 54,000 20,000 132,835 Residential Board Meal Program Surplus Reserve 80,000 - 80,000 Venture Capital/Real Estate Reserve - 500,000 500,000 Insurance Reserve - - - Pine Tree Ranch Reserve - - 75,000 Agriculture Program Reserve 14,750 14,750 - Withdraw of funds from Post Retiree Medical Benefit Trust 473,302 486,936 486,936

TOTAL SOURCES FROM RESERVES 622,052 1,021,686 1,274,771 TOTAL SOURCES OF CASH 9,315,701 10,169,273 9,786,010


University Village 361,200 393,278 400,000 Bookstore 73,000 378,457 263,000 Dining Services 996,674 775,169 824,300 Kellogg West 496,000 484,802 250,000 Real Estate 648,500 442,668 202,835 Research & Sponsored Programs - - - Agricultural Units 252,646 107,396 37,500 Continuing Education 54,428 57,620 80,000 Administration 257,000 208,831 341,000 Restricted Foundation Programs-Arabian Horse Center 50,000 12,500 52,500 Prior Year Carryover 745,740 814,444

TOTAL CAPITAL EXPENDITURES 3,935,188 2,860,721 3,265,579 FINANCING

University Village Bond payment - 2013 and 2014 series 695,000 695,000 725,000 CTTi Bond payment - 2017A/2017B series 230,000 190,000 215,000

TOTAL USES OF FINANCING 925,000 885,000 940,000 RESERVES

Agriculture Program Reserve @ 55% net Annual Surplus 28,600Cafeteria State Share ReserveCalPERS UAL Additional Funding for UAL 878,563 609,610 1,173,772 Capital Reserve @ 1.75% of Gross Auxiliary Revenues 464,839 951,595 1,001,452Emergency ReserveIndirect Cost Disallowance ReserveInnovation Village Demo Reserve 11,727 11,777 11,956Insurance Reserve 34,315 34,315 51,201Pine Tree Ranch Reserve @ 50% net Annual Surplus 30,000 29,114 Post Retiree Medical Benefits Trust - see Note 1 1,000,000 1,000,000 1,000,000Research & Sponsored Programs 20,000 20,000 20,000Residential Board Meal Program Surplus Reserve excess 7% 383,493 517,733 351,140Venture Capital/Real Estate Reserve @ 1.0% of Gross Rev. 537,901 543,768 572,258

TOTAL RESERVE CONTRIBUTIONS 3,330,838 3,718,798 4,239,493TOTAL USES OF CASH 8,191,026 7,464,519 8,445,072 NET SOURCES & (USES) OF CASH 1,124,675 2,704,754 1,340,938

BEGINNING OF THE YEAR WORKING CAPITAL LESS CONTINGENCY 14,225,901 16,930,655 NET WORKING CAPITAL AVAILABLE END OF YEAR - Note 2 16,930,655 18,271,593

Minimum Two Months Working Capital Reserve Required 7,362,693 7,947,119

50

CAL POLY POMONA FOUNDATION, INC.SOURCES/(USES) AND WORKING CAPITAL

Balance as of Forecast Proposed Net End of6/30/2017 Fiscal 17/18 Budgeted 18/19 6/30/2019 Goal

Sources of Funds:Fund Balance (Unrestricted) 42,587,651 4,595,696 4,784,987 51,968,334Current & Long term debt

University Village Series 2013 and 2014 20,870,000 (695,000) (725,000) 19,450,000CTTI Bonds Series 2017 1,950,000 (190,000) (215,000) 1,545,000

Excess Accts Payable over Accts Receivable 7,866,243 7,866,243Post Retiree Medical Benefits - Note 1 (1,319,820) 207,337 (10,000) (1,122,483) (1,122,483)CalPERS Unfunded Accrued Liability Adjustment 704,548 0 704,548

Total Available 71,954,074 4,622,581 3,834,987 80,411,642

Uses of FundsInvestment in fixed assets 95,855,415 2,860,721 3,265,579 101,981,715

Depreciation (52,637,595) (3,640,006) (3,736,252) (60,013,853)Inventory 1,912,960 1,912,960

Reserves :Board Designated Reserves#### Agriculture Program Reserve 53,705 (14,750) 28,600 67,555 75,000

Cafeteria State Share Reserve 182,062 182,062CalPERS UAL 10-yr Amortization Model 609,610 1,173,772 1,783,382

19004Capital Reserve 6,633,715 931,595 868,617 8,433,927 6,000,000#### Emergency Reserve 120,037 120,03719240Indirect Cost Dissallowance Reserve 346,406 346,406 346,40646114Innovation Village Demo Reserve 82,788 11,777 11,956 106,52119013Insurance Reserve 111,761 34,315 51,201 197,27719304Pine Tree Ranch Reserve 90,886 30,000 (45,886) 75,000 75,000

Auxiliaries Multiple Employer VEBA Trust - Note 1 513,064 513,064 1,026,128Research & Sponsored Programs 51,137 20,000 20,000 91,137

17013Residential Board Meal Program Surplus Res 3,000,370 517,733 271,140 3,789,24319012Venture Capital/Real Estate Reserve 1,924,526 43,768 72,258 2,040,552 6,000,000

Other 0Total Uses 57,728,173 1,917,827 2,494,049 62,140,049Available for Working Capital 14,225,901 2,704,754 1,340,938 18,271,593Net Working Capital - Note 2 14,225,901 16,930,655 18,271,593 18,271,593

Minimum Two Months Working Capital Reserve Required 6,960,872 7,362,693 7,947,119 7,947,119

Note 1 - Forecast and Proposed Budget includes funding of $1.0 million and withdrawal of $486,936 each year; the Post Retirement Med Benefit.Note 2 - Net Working Capital does not include cash advances for Sponsored Programs per policy # 172

51

CAL POLY POMONA FOUNDATION, INC.PROPOSED BUDGET Revised Current Proposed Revised Current Proposed Revised Current Proposed SUMMARY STATEMENT OF ACTIVITY Budget Forecast Budget Budget Forecast Budget Budget Forecast Budget

FISCAL YEAR 2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 2018-2019

GENERAL ACTIVITIES: ADMINISTRATION 4,789,579 4,581,196 4,914,616 4,889,786 5,719,408 5,717,996 (100,207) (1,138,212) (803,380)

REAL ESTATE 4,611,177 4,720,690 4,791,573 4,037,672 4,099,279 4,622,122 573,505 621,411 169,451

TOTAL GENERAL ACTIVITIES 9,400,756 9,301,886 9,706,189 8,927,458 9,818,687 10,340,118 473,298 (516,801) (633,929)

ENTERPRISE ACTIVITIES:

BRONCO BOOKSTORE 9,696,620 9,684,336 9,650,725 9,270,454 9,250,660 9,330,873 426,166 433,676 319,852

DINING SERVICES FOUNDATION MAINTENANCE 0 0 0 0 0 2 0 0 (2) POLY TROLLEY 250,003 250,003 313,500 267,003 285,806 308,845 (17,000) (35,803) 4,655 FRESH ESCAPES 226,201 265,149 270,002 179,381 178,993 218,826 46,820 86,156 51,176 CARL'S JR. 576,000 576,000 592,829 465,903 490,499 509,363 110,097 85,501 83,466 PONY EXPRESS - CCMP 697,706 709,000 742,560 580,626 591,647 613,549 117,080 117,353 129,011 PONY EXPRESS - CLA 234,003 230,000 242,761 192,572 208,831 208,311 41,431 21,169 34,450 INNOVATION BREW WORKS 777,000 754,539 834,248 774,202 812,307 860,166 2,798 (57,768) (25,918) POLY FRESH 483,000 497,000 453,544 392,052 414,747 388,651 90,948 82,253 64,893 PONY EXPRESS - ENV 76,650 84,500 111,156 60,427 61,512 80,127 16,223 22,988 31,029 ENG COFFEE SHOP 0 0 62,600 0 14,071 62,663 0 (14,071) (63) STARBUCKS COFFEE 1,175,100 1,175,100 1,263,603 1,084,980 1,084,980 1,180,851 90,120 90,120 82,752 INTERNATIONAL GROUNDS 222,000 235,176 253,988 167,982 174,120 192,756 54,018 61,056 61,232 PANDA EXPRESS 130,921 148,099 152,860 9,709 13,218 11,136 121,212 134,881 141,724 HIBACHI SAN 108,150 105,960 130,130 22,626 20,584 25,026 85,524 85,376 105,104 LOS OLIVOS 6,409,931 6,448,321 6,214,821 5,577,295 5,479,205 5,428,636 832,636 969,116 786,185 VISTA CAFÉ 1,572,523 1,264,787 1,207,060 1,530,490 1,229,120 1,123,795 42,033 35,667 83,265 DENNYS 811,131 919,126 944,715 801,717 871,954 905,273 9,414 47,172 39,442 VENDING 127,795 101,805 80,839 103,307 92,313 65,084 24,488 9,492 15,755 BREWING EDUCATION PROGRAM 40,000 28,000 131,800 34,100 40,406 120,261 5,900 (12,406) 11,539 QDOBA 928,600 987,000 926,350 759,725 770,532 745,736 168,875 216,468 180,614 JAMBA JUICE 246,002 259,000 251,670 292,227 297,496 282,499 (46,225) (38,496) (30,829) SUBWAY 993,000 965,000 906,700 838,075 845,343 810,092 154,925 119,657 96,608 ROUND TABLE 482,601 530,000 511,902 399,121 439,116 425,639 83,480 90,884 86,263 DINING ADMINISTRATION 0 0 0 858,835 758,531 723,279 (858,835) (758,531) (723,279) EINSTEIN'S BAGELS 462,000 449,000 506,951 417,903 444,637 447,756 44,097 4,363 59,195 PONY EXPRESS AT CBA 994,000 914,600 885,056 774,805 769,041 738,792 219,195 145,559 146,264 FRESHENS 209,000 235,000 435,000 204,693 233,182 399,267 4,307 1,818 35,733 TACO BELL 317,502 317,502 353,000 273,905 272,256 302,462 43,597 45,246 50,538 H-CAFÉ 29,304 33,700 44,600 37,029 43,528 56,972 (7,725) (9,828) (12,372) BRONCO BUCKS CARD OFFICE 193,945 174,195 158,602 197,083 162,887 160,156 (3,138) 11,308 (1,554) BSC & CAMPUS CENTER/OVERHEAD 0 0 0 530,554 612,131 716,836 (530,554) (612,131) (716,836) SCE LOBBY SHOP 88,100 84,000 89,118 78,448 82,534 89,458 9,652 1,466 (340) SCE COFFEE SHOP 204,046 0 214,249 166,837 0 213,855 37,209 0 394 KW - CATERING/CONF. FOODS 2,483,304 2,773,525 2,984,466 2,344,840 2,493,847 2,667,129 138,464 279,678 317,337

TOTAL DINING SERVICES 21,549,518 21,515,087 22,270,680 20,418,452 20,289,374 21,083,249 1,131,066 1,225,713 1,187,431

REVENUE EXPENSES NET SURPLUS/(DEFICIT)

52

CAL POLY POMONA FOUNDATION, INC.PROPOSED BUDGET Revised Current Proposed Revised Current Proposed Revised Current Proposed SUMMARY STATEMENT OF ACTIVITY Budget Forecast Budget Budget Forecast Budget Budget Forecast Budget

FISCAL YEAR 2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 2018-2019

REVENUE EXPENSES NET SURPLUS/(DEFICIT)

KW CONFERENCE CENTER & LODGE 1,693,185 1,865,276 1,914,874 1,642,448 1,786,674 1,844,713 50,737 78,602 70,161

UNIVERSITY VILLAGE 10,224,439 9,708,250 10,891,090 7,669,773 7,271,844 7,852,216 2,554,666 2,436,406 3,038,874

TOTAL ENTERPRISE ACTIVITIES 43,163,762 42,772,949 44,727,369 39,001,127 38,598,552 40,111,051 4,162,635 4,166,887 4,616,318

TOTAL GENERAL & ENTERPRISE ACTIVITIES 52,564,518 52,074,835 54,433,558 47,928,585 48,417,239 50,451,169 4,635,933 3,650,086 3,982,389

DESIGNATED GIFTS - University 0 0 0 1,577,573 1,577,596 1,696,832 (1,577,573) (1,577,596) (1,696,832)

SURPLUS (DEFICIT) AFTER DESIGNATED GIFTS 52,564,518 52,074,835 54,433,558 49,506,158 49,994,835 52,148,001 3,058,360 2,072,490 2,285,557

SUPPLEMENTAL PROGRAMS

RESEARCH OFFICE 1,505,000 1,392,510 1,421,318 1,485,006 1,372,510 1,401,318 19,994 20,000 20,000

AGRICULTURE UNITS 3,880,485 3,485,463 3,657,300 4,015,851 3,532,260 3,550,967 (135,366) (46,797) 106,333

CONTINUING EDUCATION 4,469,434 4,120,777 4,578,035 4,324,414 3,746,871 4,042,865 145,020 373,906 535,170

UNRESTRICTED FOUNDATION PROGRAMS 460,500 630,174 630,174 460,500 630,174 630,176 0 0 (2)

TOTAL SUPPLEMENTAL 10,315,419 9,628,924 10,286,827 10,285,771 9,281,815 9,625,326 29,648 347,109 661,501

TOTAL SURPLUS (DEFICIT) UNRESTRICTED 62,879,937 61,703,759 64,720,385 59,791,929 59,276,650 61,773,327 3,088,008 2,427,109 2,947,058

INVESTMENTS

GENERAL INVESTMENTS 1,225,539 2,302,009 1,991,383 99,320 133,422 153,454 1,126,219 2,168,587 1,837,929

ENDOWMENT/INVESTMENTS 5,131,675 11,382,812 6,799,175 4,349,824 4,519,946 4,974,557 781,851 6,862,866 1,824,618

TOTAL INVESTMENTS 6,357,214 13,684,821 8,790,558 4,449,144 4,653,368 5,128,011 1,908,070 9,031,453 3,662,547

RESTRICTED FOUNDATION PROGRAMS 12,396,335 15,619,057 15,302,253 8,954,874 11,078,443 10,955,915 3,441,461 4,540,614 4,346,338

TOTAL 81,633,486 91,007,637 88,813,196 73,195,947 75,008,461 77,857,253 8,437,539 15,999,176 10,955,943

53

CAL POLY POMONA FOUNDATION, INC.PROPOSED BUDGET SUMMARY STATEMENT OF ACTIVITY

FISCAL YEAR

GENERAL ACTIVITIES: ADMINISTRATION

REAL ESTATE

TOTAL GENERAL ACTIVITIES

ENTERPRISE ACTIVITIES:

BRONCO BOOKSTORE

DINING SERVICES FOUNDATION MAINTENANCE POLY TROLLEY FRESH ESCAPES CARL'S JR. PONY EXPRESS - CCMP PONY EXPRESS - CLA INNOVATION BREW WORKS POLY FRESH PONY EXPRESS - ENV ENG COFFEE SHOP STARBUCKS COFFEE INTERNATIONAL GROUNDS PANDA EXPRESS HIBACHI SAN LOS OLIVOS VISTA CAFÉ DENNYS VENDING BREWING EDUCATION PROGRAM QDOBA JAMBA JUICE SUBWAY ROUND TABLE DINING ADMINISTRATION EINSTEIN'S BAGELS PONY EXPRESS AT CBA FRESHENS TACO BELL H-CAFÉ BRONCO BUCKS CARD OFFICE BSC & CAMPUS CENTER/OVERHEAD SCE LOBBY SHOP SCE COFFEE SHOP KW - CATERING/CONF. FOODS

TOTAL DINING SERVICES

CarryoverRevised Current Proposed Revised Current Prior Proposed Revised Current Proposed Budget Forecast Budget Budget Forecast Years Budget Budget Forecast Budget

2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 Carryover 2018-2019 2017-2018 2017-2018 2018-2019

218,640 168,451 211,920 286,490 208,831 81,200 341,000 (168,057) (1,178,592) (1,013,660)

807,225 774,311 773,169 735,300 442,668 180,000 202,835 645,430 953,054 559,785

1,025,865 942,762 985,089 1,021,790 651,499 261,200 543,835 477,373 (225,538) (453,875)

162,000 142,176 166,608 383,000 378,457 0 263,000 205,166 197,395 223,460

3,324 3,336 3,336 3,324 3,336 3,33433,072 32,500 33,060 60,000 54,219 (43,928) (57,522) 37,715

6,924 5,760 4,128 29,000 53,744 91,916 26,3042,436 2,729 4,678 95,000 95,000 17,533 88,230 (6,856)6,720 6,700 6,720 123,800 124,053 135,7313,936 4,000 3,936 49,000 45,367 25,169 (10,614)

79,056 80,244 70,320 20,000 12,000 8,000 45,000 61,854 10,476 (8,598)17,160 17,160 17,160 45,000 4,500 40,000 63,108 94,913 42,053

0 0 0 16,223 22,988 31,0290 6,071 0 40,000 0 (8,000) (40,063)

2,964 2,964 16,146 410,000 407,500 (316,916) (314,416) 98,8983,300 0 0 10,000 57,318 61,056 51,232

0 92 0 121,212 134,973 141,72415,672 15,672 15,672 101,196 101,048 120,77669,000 88,963 0 80,000 80,000 821,636 1,058,079 706,1852,060 5,444 2,060 44,093 41,111 85,3256,648 7,518 7,368 49,000 13,130 35,870 (32,938) 41,560 10,9405,004 5,227 5,004 29,492 14,719 20,759

18,996 14,529 17,424 52,700 14,970 25,000 (27,804) (12,847) 3,96339,760 35,750 34,800 208,635 252,218 215,4143,640 3,917 504 (42,585) (34,579) (30,325)

24,876 24,876 24,876 20,000 179,801 144,533 101,48410,368 11,004 11,612 14,000 14,000 45,000 79,848 87,888 52,87531,560 31,406 40,440 256,674 155,200 65,474 361,800 (1,083,949) (882,325) (1,110,113)18,947 21,956 16,404 25,000 14,650 38,044 11,669 75,59922,284 22,264 22,284 241,479 167,823 168,54816,440 16,440 16,440 75,000 20,747 18,258 (22,827)4,286 3,523 1,840 47,883 48,769 52,3786,000 6,000 6,000 27,500 (1,725) (3,828) (33,872)

0 0 0 (3,138) 11,308 (1,554)0 0 0 84,000 (530,554) (612,131) (800,836)

2,280 2,280 2,280 11,932 3,746 1,94015,000 0 7,500 75,000 60,000 15,000 (22,791) (60,000) (7,106)71,196 39,490 39,996 55,000 25,000 15,000 38,000 154,660 294,168 304,333

542,909 517,815 431,988 1,237,374 775,169 379,344 824,300 436,601 968,359 415,775

NET CASH GENERATED CAPITAL REQUESTS DEPRECIATION & AMORTIZATION

54

CAL POLY POMONA FOUNDATION, INC.PROPOSED BUDGET SUMMARY STATEMENT OF ACTIVITY

FISCAL YEAR

KW CONFERENCE CENTER & LODGE

UNIVERSITY VILLAGE

TOTAL ENTERPRISE ACTIVITIES

TOTAL GENERAL & ENTERPRISE ACTIVITIES

DESIGNATED GIFTS - University

SURPLUS (DEFICIT) AFTER DESIGNATED GIFTS

SUPPLEMENTAL PROGRAMS

RESEARCH OFFICE

AGRICULTURE UNITS

CONTINUING EDUCATION

UNRESTRICTED FOUNDATION PROGRAMS

TOTAL SUPPLEMENTAL

TOTAL SURPLUS (DEFICIT) UNRESTRICTED

INVESTMENTS

GENERAL INVESTMENTS

ENDOWMENT/INVESTMENTS

TOTAL INVESTMENTS

RESTRICTED FOUNDATION PROGRAMS

TOTAL

CarryoverRevised Current Proposed Revised Current Prior Proposed Revised Current Proposed Budget Forecast Budget Budget Forecast Years Budget Budget Forecast Budget

2017-2018 2017-2018 2018-2019 2017-2018 2017-2018 Carryover 2018-2019 2017-2018 2017-2018 2018-2019

NET CASH GENERATED CAPITAL REQUESTS DEPRECIATION & AMORTIZATION

36,888 53,328 66,445 530,000 484,802 41,400 250,000 (442,375) (352,872) (154,794)

2,055,996 1,860,806 1,947,996 361,200 393,278 0 400,000 4,249,462 3,903,934 4,586,870

2,797,793 2,574,125 2,613,037 2,511,574 2,031,706 420,744 1,737,300 4,448,854 4,716,816 5,071,311

3,823,658 3,516,887 3,598,126 3,533,364 2,683,205 681,944 2,281,135 4,926,227 4,491,278 4,617,436

0 0 0 (1,577,573) (1,577,596) (1,696,832)

3,823,658 3,516,887 3,598,126 3,533,364 2,683,205 681,944 2,281,135 3,348,654 2,913,682 2,920,604

0 0 0 19,994 20,000 20,000

71,100 73,700 73,366 267,396 107,396 75,000 75,000 (331,662) (80,493) 29,699

51,256 44,502 52,964 84,428 57,620 20,000 80,000 111,848 360,788 488,134

3,408 4,917 11,796 3,408 4,917 11,794

125,764 123,119 138,126 351,824 165,016 95,000 155,000 (196,412) 305,212 549,627

3,949,422 3,640,006 3,736,252 3,885,188 2,848,221 776,944 2,436,135 3,152,242 3,218,894 3,470,231

0 0 0 1,126,219 2,168,587 1,837,929

0 0 0 781,851 6,862,866 1,824,618

0 0 0 1,908,070 9,031,453 3,662,547

0 0 0 50,000 12,500 37,500 15,000 3,391,461 4,528,114 4,293,838

3,949,422 3,640,006 3,736,252 3,935,188 2,860,721 814,444 2,451,135 8,451,773 16,778,461 11,426,616

55

Debt Service Coverage (Fiscal Year Ended June 30)

Revised ProposedActual Budget Forecast Budget

Description 2016-17 2017-18 2017-18 2018-19

Change in unrestricted net assets 6,872,804$ 4,214,227$ 4,595,696$ 4,784,987$

Add Back:University Designated Expenses - 1,577,573 1,577,596 1,696,832

Surplus (Deficit) before Designated Expenses - see Note 6,872,804$ 5,791,800$ 6,173,292$ 6,481,819$

Add Back:Depreciation and amortization 3,781,999 3,949,422 3,640,006 3,736,252 Interest (see detail below) 1,001,878 1,105,837 1,105,837 1,065,416 Transfer of assets to the University (1,623,840) - - -

Available for Debt Service 10,032,841$ 10,847,059$ 10,919,135$ 11,283,487$

Maximum Annual Debt Service *2013 & 2014 Series Bonds 1,720,000 1,721,125 1,721,125 1,721,125 2017A & 2017B Series Bonds 383,125 302,875 302,875 302,875

Total Debt Service 2,103,125$ 2,024,000$ 2,024,000$ 2,024,000$

Total Debt Service before Designated Expenses - see Note 4.77 5.36 5.39 5.57

Total Debt Service after Designated Expenses 4.77 4.58 4.62 4.74

Note: Per Section 4.4 of Executive Order 994, the Foundation shall generate a debt coverage ratio of at least 1.25.

* Maximum annual debt service is reported as the total amount of scheduled debt service during the year in which the debt service is scheduled to be highest during the life of the Bonds

For the Actual Debt Service calculation, the actual annual debt service is used instead of the maximum annual debt service used in the forecast and proposed budgets; and University Designated Expenses are also not added back in the calculation.

Transfer of assets is not included in the forecast or proposed budgets.

Interest Detail2013 & 2014 Series Bonds - Interest 894,927 1,020,333 1,020,333 984,583 2017A & 2017B Series Bonds - Interest 72,237 85,504 85,504 80,833 Other 34,714 - - -

Total Interest Expense 1,001,878$ 1,105,837$ 1,105,837$ 1,065,416$ 56

CAPITAL BUDGETS

57

CAL POLY POMONA FOUNDATION, INC. 2018-19 PROPOSED CAPITAL BUDGET


Remaining 2018-19 2018-19Enterprise Activities

Reserves Foundation Housing

University Village 400,000 400,000 Replace heating & cooling units in 230, 220, 210 ($80,000), Stairway railings for 7 Phase II bldgs. ($70,000), Phase III boiler tube bundles ($30,000), Phase III hot water storage tanks ($20,000), Various carpets ($50,000), Furniture 6 apartments Phase I ($65,000), Wi-Fi upgrade ($85,000), Solar hot water system Phase III ($40,000 paid from a grant)

Bronco Bookstore

Bookstore 263,000 263,000

Inventory Control System and Point of Sale System upgrades ($30,000), New floor for downstairs area of the bookstore ($75,000), and Convert old lighting fixture to new energy saving LED lights ($158,000)

Dining Services

Dining 65,474 361,800

Food management system recipe coding project ($10,000), Building 97 feasibility study ($27,500), Building 70 feasibility study ($27,500), Building 97 major refrigeration makeover ($185,000), Building 97 electrical pm - preparation for campus infrastructure electrical upgrade ($7,900), Analytics projects - enrollment, KPI dashboards ($25,000), Leadership consulting and coaching ($20,000), Cash register end-of-life replacement ($28,900), POS/Micro market/Biometrics innovation initiatives ($30,000)

Campus Center Overhead 38,000 (2) End-of-life electric cart replacements ($33,000), Hot food holding box ($5,000)

BSC Overhead 46,000 Catering van ($25,000), Repair tile in kitchen ($20,000), Hot food holding box for catering ($1,000)

Faculty Staff Café 29,000 Interior refresh - updated furniture, display equipment, décorPony Express @ CLA 49,000 Store remodel - paint, flooring, cabinetry, equipmentBrewing Education 25,000 Misc. Educational lab upgrades as classes developCarl's Jr. 95,000 - Carl's Jr. brand mandatory refreshDenny's 35,870 - Misc. equipment - dish machine, grille, refrigerationH-café 27,500 Conversion of market to micro market (unstaffed)

Innovation Brew Works8,000 45,000

Increase brewing capacity to 713 barrels/year - (1) 10 bbl brite tank, (2) 10 bbl fermenters, grain mill upgrade

Poly Fresh40,000 -

Replace open aired coolers, enlarge storage space ($30,000), Update shelving and register stations ($10,000)

Coffee Cart 40,000 Rework existing solar coffee cart to serve CLA Replacement Bldg.

Kellogg West Dining15,000 38,000

Lobby kiosk refrigeration unit for fresh food ($15,000), Routine dining rooms floor replacements ($5,000), Folding chairs - wedding routine replacement ($6,000), Dance floor for Kellogg House weddings ($12,000)

80,000 Los Olivos 80,000 - Box truck ($30,000), Equipment replacement ($50,000)Subway 20,000 Replace front line cold table

Round Table Pizza45,000

Realign front counter space to accommodate customer ease of through put and mobile ordering, add 3 tap system - brewery kegs, add warmer to accommodate increase in catering services, replace existing display case

Freshens75,000

Starbucks conversion equipment and start up cost ($20,000), Food equipment and small wares ($15,000), Rebrand to Starbuck's WPS cabinetry, floor, paint, countertop, tile, furnishings ($40,000)

International Grounds 10,000 Espresso Machine - end-of-life espresso machine replacementSCE Coffee Shop 15,000 SCE Coffee Shop ($75K approved at BM#369, projecting $15K remaining)Total Dining Services 824,300

58



Remaining 2018-19 2018-19Kellogg West Conference Center & Hotel

Kellogg West Rooms & Conference

41,400 250,000

250,000

Renovation & upgrades to all Bldg. 76 main conference center hallways & public areas ($25,000), Renovation/upgrade of 10 guest room a/c & heating units in Bldg. 77 ($25,000), Replace outdated Bldg. 76 heating & a/c control boards, sensors & airflow units ($75,000), Replace all fluorescent lighting with LED lights in Bldgs. 76, 78, & 78B hallways, conference areas & meeting rooms ($125,000)

FacilitiesFacilities - - No capital budget requestedReal Estate ActivitiesBldg. 97 10,000 Entrance door replacement

132,835 Bldg. 66 165,000 132,835 HVAC replacement - 2 chilled water air handling units

CTTI Buildings 5,000 70,000 Carpet replacement - tenant ($10,000), DDC Thermostat retrofit building #A ($30,000), DDC Thermostat retrofit building #B ($30,000)

Total Real Estate Activities 202,835 Office of ResearchResearch and Sponsored Prog - No capital budget requestedCollege of AgricultureAgronomy Farm 75,000 Replacement of irrigation mainlines ($75,000)

75,000 Wasmansdorff House 75,000 LandscapingTotal College of Agriculture 75,000 College of ScienceChemistry Agilent Project - - NoneCollege of Extended UniversityCEU 20,000 80,000 80,000 Vehicle ($30,000), Cart ($10,000), and New carpet in Building A & B at CPELI ($40,000)Restricted Foundation ProgramsArabian Horse Center 37,500 15,000 15,000 2 horse slant load trailerAdministration Human Resources 45,000 Kronos Dimensions - Upgrade HCM PlatformAdministration 25,000 Executive conference room furniture/carpetAdministration 45,000 Bldg. 55 refresh


Windows 10/desktop updates - Rollout of new operating system to enterprise units through VDI. Some hardware refreshes to improve speed, automation, and security, including continued SSD disk upgrades where needed.


Analytics Licensing and Consulting Services - To continue the buildout of business intelligence analytics dashboards for grants, enrollment, financial services and retail operations

Management Info Systems 55,000 Financial System Improvements - The upgrade of OneSolution to version 18 and ongoing workflow development for vender data records, project agreements

Management Info Systems 40,000

CDD to Cognos report conversion - The upgrade of Cognos to version 11 and full CDD to Cognos report conversion to enhance Enterprise reports with Business Intelligence improvements


Storage Workspace remodel - Enclose storage area in the east annex of building 55 for computer equipment storage, and remodel of cubical space for IT staff to provide more centralized support

59



Remaining 2018-19 2018-19

Management Info Systems 9,500 Mobile Device Management - Software system to provide mobile file access and security improvements

Management Info Systems 30,000 Event and Space Management - License/upgrade buy-in to a software system providing campus wide space management. The vendor will either be EMS or CollegeNet.


B55 Fiber and Switch Upgrade - Installation of fiber and respective switches to provide smooth migration of data to the new data center POD, and improved services to the building

Management Info Systems 15,000 Credit Card Monitoring Software - Software to provide real-time monitoring and alarms for all credit card transactions processing through the Foundation

Management Info Systems 11,000 Odyssey Activity Module - Provides advanced monitoring and analytics capabilities in current Bronco Card system

Management Info Systems 26,700 10,000 Travel Expense Management - Concur software installation, using yearly report count, buy-in through university licensing agreement and concur SAE/p-card integration.

Total Administration 341,000

Prior Years and Proposed Capital Budget 814,444 2,451,135

Total Prior Years and Proposed Capital Budget 3,265,579 287,835 Capital Funding from Reserves (287,835)

Capital Funding from Operations 2,977,744

Note - the proposed capital budget assumes funding of $132,835 from the Capital Reserve, $80,000 from the Residential Board Meal Program Surplus Reserve,and $75,000 from the Pine Tree Ranch Reserve.

60

ASSET PROTECTION MANAGEMENT

61

Asset Protection Management-2018-2019 The responsibility for protecting personnel and property cannot be delegated. It is the legal, moral and ethical charge of all Foundation management to protect the assets of the Foundation. Some risks are inherent in the work environment but in most cases risk can be minimized and controlled with appropriate internal controls and regular reviews. The Foundation’s asset protection and training is organized around three broad areas:

1. Personal safety and physical security 2. Protecting assets from external threats 3. Protecting assets from internal threats

The Foundation’s risk assessment process includes the following basic steps: 1. Identify risks (in all parts of the Foundation) 2. Analyze how to deal with each kind of risk 3. Select and apply approaches for dealing with each risk 4. Monitor results and make changes when needed

The Foundation reviews each operating unit using an online list of potential risk areas that has been developed over time. Following is a summary of the most significant areas for asset protection management: Administration The Foundation has long practiced a conservative approach to risk management and has transferred risk of identifiable hazards to insurers through purchase of comprehensive insurance coverage. This approach and the practices to implement it are integrated into Foundation operations. The Foundation has conducted Risk Assessments and reports for the units and will continue this practice. Financial Services / Information Technology 1. Mitigating the risk of network security breaches. Corrective action includes use of monitoring software, log management, pro-active scanning and improvements to physical security of equipment. 2. Business continuity risk management. Corrective action includes hardware and software redundancy in mission critical computer systems, pro-active facilities maintenance in the areas of electrical, cooling, water and fire suppression systems and general disaster recovery protocols. 3. Examining feasibility of alternative risk management by transferring the risk (through contractual transfer of risk and commercial insurance) or risk retention (through higher deductible and establishing a funded insurance reserve). This task is done by the following: 3a. Reviewing the contracts, insurance requirements, and hold harmless agreements or indemnification clauses to transfer legal and financial responsibility of loss to other parties. 3b. Annual review of Foundation insurance programs/coverages, property and liability schedules, and Insurance reserve for proper funding. Real Estate Real Estate Department in the past has solely been focused on for sale housing and ground lease real estate at Innovation Village. As the Department has expanded to include oversight of marketing and managing CTTi, management of buildings 66 and 97, filming at CPP Campus South, as well as real estate donations and other ad-hoc assignments, we have begun looking at Asset Protection and Risk Management of all facilities.

62

Dining Services

In Dining Services, we have several areas where Asset Protection and Risk Management play a significant role. Looking at Corporate Assets, Dining Services has several: Food, Liquor, Beer, Wine, Cash and equipment to mention a few.

Developing web-based assessment tools for safety (Touchwork)

Areas that we have implemented based on the risk management assessment :

Los Olivos: Improvement in employee locker security, building perimeter, building egress, safe combo, authorized drivers, ensuring that current insurance and indemnification language are in all new contracts, data security procedures are in place.

Campus Center Market Place, C-Stores & Starbuck's: Provide employee lockers, Provide employee training of E Phone, Repaired Fire Alarms, Video system, Fire extinguisher training for staff, facilities repairs, staff training by Employment Services,

KW Food and Beverage: replaced walk-in doors, Improve employee locker security, provide staff training for safety protection equipment, repair safety locks on walk-ins, improve security of safe combo, staff training of check and credit card acceptance per FDN policies.

PCI and Level 1 data training have taken place at various supervisory and front line staff levels as appropriate.

IBW- Prevention training, alcohol service training, inventory

University Village

The Residential Education staff undergoes fire extinguisher training annually; the Operations and IT staff are included. All office staff conducted a physical walk-through of the locations of utility shut-offs, radios, flashlights, and first aid kits.

Bronco Bookstore Physical Safety and Security 1. Fire, life, safety, intrusion systems, smoke detector systems maintained and tested all fire and alarm system that were inspected were up to date. Completed tests with the Police department to ensure fire and safety alarms were communicating correctly. 2. Safety devices in place and maintained. Received inspection and posted permit for air tank in the HVAC room. Data Security 1. The primary system server is now located in Bldg. #55 and maintained by IT. Received documentation confirming emergency system replacement within 24 hours. Kellogg West Conference Center and Hotel 1. Installation of video security cameras in multiple exterior and interior locations - Completed. 2. Update of KW Emergency Procedures and manuals - Completed/ongoing and updated annually or as needed. 3. Separation of duties with KW Director - Completed and ongoing with KW Accountant placing orders and Director reviewing/approving.

63

4. Change safe combinations and keep a record of who has access and knowledge of combination - Completed and ongoing. Record of who has access and safe combination now in sealed envelope in Foundation safe. 5. Yearly risk assessment is completed by the Foundation IT Team on all Kellogg West IT systems. This includes a review/prioritizing of old risks & potential new risks as well as potential "gaps" caused by changing technologies. - Completed and ongoing. 6. Upgrade of KW website to meet and/or exceed ADA requirements has been started and will be ongoing until all requirements are met or as close to being met as possible. College of the Extended University CEU's most valuable asset is our personnel. For 2017-18, CEU has focused on filling vacant positions that occurred due to turnover from both the last and current fiscal years. CPELI started the new fiscal year with a new Director followed by the hiring of their new Student Affairs Coordinator and they downsized by one FT position. A few of the FT CPELI faculty were re-aligned to handle some key business processes of the omitted position. GEI also promoted one staff member and replaced a FT position with two part time positions. CEU Business Operations, experienced turnover with our student assistants, due to students reaching graduation. Also, for the International Center, a new Director was hired in the Fall of 2017, after the position had been vacant for more than a year. Training of new staff remains a top priority this year and will continue to be as CEU continues to add new members to our team. CEU will continue to review our business processes, position responsibilities, staff training opportunities, cross-training opportunities, and staff advancement opportunities so that CEU is positioned to retain talented staff especially in high-demand, skilled positions. Arabian Horse Center All student volunteers must now join the horsemanship club. This will build on the already strong safety program by providing more oversight and structure. The most valuable 10% of our horse herd is covered with major medical / mortality insurance on the state side.

64

DESIGNATED GIFTS

65

DESIGNATED GIFTS

Revised Forecast Proposed2017-2018 2017-2018 2018-2019

Designated Gifts to the University 1,500,000$ 1,500,000$ 1,500,000$ Foundation Request 77,573 77,596 196,832

Designated Gifts 1,577,573$ 1,577,596$ 1,696,832$

CAL POLY POMONA FOUNDATION, INC.PROPOSED GIFTS BUDGET

FISCAL YEAR 2018-2019

66

CAL POLY POMONA FOUNDATION, INC. Memorandum Date: January 22, 2018 To: Dr. Soraya M. Coley President

From: David Prenovost Senior Managing Director Subject: 2018-2019 Designated Gift Request The Foundation is requesting a designated gift of $179,500 for the fee to administer the operating endowment accounts from the W. K. Kellogg Foundation. In 2010, the W.K. Kellogg Foundation awarded a $42 million grant named the "Kellogg Legacy Project Endowment", a $40 million endowment and an operating endowment of $2 million. To date, the full $42 million has been received for both the endowment and the operating account. The Grant provides Cal Poly Pomona Presidents flexibility to apply annual endowment earnings to the most timely and pressing institutional needs each year. The goals and objectives of the W.K. Kellogg Legacy Project Endowment include:

Engage the geographic region and beyond by serving the local region as a center for scholarly activity and research. Enhance the University’s commitment to a population that reflects the diversity of California by preparing the students for success in diverse global communities. Maintain existing and developing new facilities which will enable the University to be a leader in environmental stewardship. Partner with political leaders to increase state support, develop a comprehensive campaign to increase philanthropic giving, and support applied research to increase grant funding.

Per the terms and conditions of the Kellogg Foundation Grant agreement, the administrative fee will be the lower of the two methods: (1) not to exceed $50,000 per year (inflation adjusted based on the trailing “CPI” Consumer Price Index) or (2) 0.75 percent (75 basis points) of the “endowment value.” In addition, these administrative fees can never be deducted from the principle balance of the endowment. At the time the Grant was accepted, it was understood that the administrative fees would be earned by the Foundation for the administration of the endowment and therefore netted from the endowment earnings before the earnings are distributed to operating endowments. Due to the requirements of this Grant, Foundation management decided the Foundation would administer the operating endowments in the Grants and Contracts Department. Currently the Foundation charges an administrative fee of 4.5 percent on all funds administered in grant and contract accounts at the time the funds are expended. The Foundation is requesting a designated gift for the fee to administer the operating endowments. Based on the estimated spending of the distributed endowment earnings for FYE 2018/2019 of approximately $3.9 million, the Foundation requests a designated gift for the administrative fee of $179,500 for FYE June 30, 2019.

71

CAL POLY POMONA FOUNDATION, INC.Schedule of GrantsJuly 1, 2017 through December 31 2017

Period of Due Account Award Project Total UnexpendedAward Date Number Account Name Awarding Agency Amount School Director Expenditures Funds

7/11-6/18 06/30/18 060220 Enrollment Communication Plan W.K. Kellogg Foundation 100,000.00 STUAF Kathleen Street 5,416.70 7/11-6/17 06/30/17 060250 Kellogg Distinguished Public Lecture Series W.K. Kellogg Foundation 615,000.00 ACCAFF Marissa Martinez 10,048.51 132,856.34 7/11-6/17 OPEN 060290 Provost's Awards W.K. Kellogg Foundation 65,000.00 ACCAFF Sylvia Alva 11,000.00 7/13-6/17 CLOSED 060740 Helping American Veterans With Educational Services W.K. Kellogg Foundation 154,125.00 STUAF Megan Stang 83.76 - 7/15-12/17 12/31/17 061120 Native American Pipeline to College W.K. Kellogg Foundation 36,670.00 EDU Sandra Dixon 15,068.65 7,341.66 7/15-6/18 06/30/18 061140 Renaissance Scholars W.K. Kellogg Foundation 300,000.00 STUAF Leticia Guzman Scott 27,898.20 133,501.09 7/15-6/18 06/30/18 061150 Veteran Success Program W.K. Kellogg Foundation 204,000.00 STUAF Megan Stang 20,790.59 71,510.96 7/16-6/18 06/30/18 061310 Learn Through Discovery W.K. Kellogg Foundation 240,000.00 ACCAFF Winny Dong 56,130.11 131,193.44

1,714,795.00 130,019.82 492,820.19

EXPENDITURE ACTIVITY SUMMARY:Expenditure Activity-Year 1 (10-11) 52,507.25 Expenditure Activity-Year 2 (11-12) 1,035,706.03 Expenditure Activity-Year 3 (12-13) 815,673.59 Expenditure Activity-Year 4 (13-14) 843,016.29 Expenditure Activity-Year 5 (14-15) 1,345,517.51 Expenditure Activity-Year 6 (15-16) 846,177.94 Expenditure Activity-Year 7 (16-17) 459,535.24 Expenditure Activity Year 8 (17-18) 130,019.82 Total Expenditures Since Inception 5,528,153.67

TOTAL SOURCES OF INCOME: (192550)Initial Funds Awarded by Kellogg Foundation (8/31/10) 2,000,000.00 Kellogg Legacy Accounts Funds Unexpended and Rolled Back to Operating Account:

060020 060020 588.63 060120 060120 12,000.00 Various (Closed September 2014--IDT20140924) 211,144.44

Various (Closed June 2015--IDT20150629) 7,783.23 Various (Closed August 2015--IDT20150812) 712.99 Varous (Closed December 2015-IDT20151216 1,480.94 Various (Closed May 2016 IDT20160508) 77,203.48 Various (Closed December 2016 IDT20170105 and IDT20170106) 26,377.67 Various (Closed March 2017 IDT20170314 and IDT20170317) 4,614.64 Various (Closed September 2017 IDT20170925) 14,614.62

IDT215601 1/25/11 RSCA Awards (Reimbursing For Amount Awarded Over $120,000 Limit For Year 1 per ORSP) 1,479.00 Donation Recorded in Error in Account 1,000.00 Interest Income Earned on Funds Since Inception 112,903.78 UET Earning Distribution for 10-11 Fiscal Year 477,108.64 Foundation Earning Distribution for 11-12 Fiscal Year 119,816.00 Foundation Earning Distribution for 12-13 Fiscal Year 1,334,791.16 Foundation Earning Distribution for 13-14 Fiscal Year 1,925,607.52 Endowment Dist 5 Year AverageFoundation Earning Distribution for 17-18 Fiscal Year 2,357,554.18 6,214,877.50 1,242,975.50 CTotal Sources of Income: 8,686,780.92

TOTAL FUNDS COMMITTED TO DATE:Ending Balance of 7348 6,300,509.00 NET AMOUNT AVAILABLE TO DISTRIBUTE AS OF DECEMBER 31 2017 2,386,271.92

NOTE: Cash Balance as of December 31 2017 2,386,271.92

TOTAL FUNDS AVAILABLE TO DISTRIBUTE 2,386,271.92

72

SUMMARY OF ACTIVITY SINCE INCEPTION:Initial Gift from Kellogg Foundation 2,000,000.00 Distributions from Endowment 6,214,877.50 Interest Income 112,903.78 Project Funds Unexpended 357,999.64 Project Funds Awarded (6,299,509.00) Ending Cash Balance as of December 31 2017 2,386,271.92 B

ADMIN FEE CALCULATION

Total Remaining to be Spent as of December 31 2017 492,820.19 ATotal Remaining Funds to be Distributed As of December 31 2017 2,386,271.92 BTotal Funds Available to Spend 2,879,092.11

Estimated Expenditures in 18-19:Funds remaining as of December 31 2017 on Current Projects (LESS 060250) 360,000.00 AFunds to be Distributed as of December 31 2017 (100 Percent of B) 2,386,272.00 BPotential Endowment Distribution for 18-19 (4 Year Average) 1,242,975.50 C

3,989,247.50

4.5% Estimated Admin Fee for 18-19 179,516.00

Total Estimated Designated Gift for FYE June 30 2019 179,500.00

73

Faculty Staff Cafe

2017-18

Budget

2017-18 Forecast to2018-19Proposed

Forecast Budget

$ Change

ApprovedProposed

Consolidated Budget Comparison SummaryFor the 2018-19 Fiscal Year

Cal Poly Pomona Foundation

Expenditures- Controllable

Supplies 500 500 500(116)Laundry 116

(116)500500Total Expenditures- Controllable 616

Expenditures- Non-Controllable

70Other 100 30 100

70100100Total Expenditures- Non-Controllable 30

Labor Costs

4,228Salaries & Wages 10,672 10,700 14,928554Employee Benefits 1,301 1,250 1,804

4,78216,73211,973Total Labor Costs 11,950

4,73612,59612,573 17,332Total Expenses

Net Income (12,573) (12,596) (17,332) (4,736)

Proposed Fiscal Year Budget A

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OPERATING BUDGETS GENERAL ACTIVITIES

ADMINISTRATION

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ADMINISTRATION

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

319,990Administrative Fees 4,728,393 4,533,786 4,853,77616,890Other 25,200 6,310 23,200(3,460)Sales 35,986 41,100 37,640

333,4204,914,6164,789,579Total Revenues 4,581,196


4,000Utilities 31,791 26,000 30,000(5,736)Insurance 92,525 67,635 61,89941,944Repairs & Maintenance 241,744 218,940 260,88411,614Meals & Refreshments 21,314 10,600 22,214

(285)Postage & Freight 24,310 23,035 22,750160,895Advertising 108,336 114,940 275,835

1,576Rent/Commissions 9,450 7,274 8,850(15,376)Services 228,455 269,435 254,059

13,322Supplies 118,857 108,498 121,8205,904Telephone 56,540 50,840 56,744

16,698Travel 43,266 28,288 44,98628,323Other 70,288 142,033 170,356

262,8791,330,3971,046,876Total Expenditures- Controllable 1,067,518


Administrative Fees 6843,469Depreciation 218,640 168,451 211,920

Interest Expense 120704Rent/Commissions 7,788 6,700 7,404(14)Bank Card Fees 110 96

4,152Other 111,708 111,264 115,416

48,311334,836338,324Total Expenditures- Non-Controllable 286,525

Labor Costs

351,543Salaries & Wages 2,705,792 2,518,225 2,869,768(664,145)Employee Benefits 798,794 1,847,140 1,182,995

(312,602)4,052,7633,504,586Total Labor Costs 4,365,365

(1,412)5,719,4084,889,786 5,717,996Total Expenses

Net Income (100,207) (1,138,212) (803,380) 334,832

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ADMINISTRATION FEE SUMMARY

Approved Forecast Proposed

Budget Budget Budget

FISCAL YEAR 2017‐2018 2017‐2018 2018‐2019 Variance

REAL ESTATE:

TOTAL REAL ESTATE ADMIN FEE 225,665 229,817 233,281 3,464

ENTERPRISES:

Bookstore 638,988 554,489 538,024 (16,465)

Dining Services 1,389,024 1,396,095 1,439,197 43,102

K.W. Conference Ctr. & Lodge 101,592 111,917 114,894 2,977

University Village 664,589 631,036 707,921 76,885

TOTAL ENTERPRISES ADMIN FEE 2,794,193 2,693,537 2,800,036 106,499

FUND 5, 8 10, ENDW, & RESEARCH:

Endowments 430,335 434,869 487,212 52,343

Research Office 630,000 583,875 595,935 12,060

Fund 3 ‐ Admin Philanthropic Grants 65,000 65,000 179,500 114,500

Fund 5 ‐ Agriculture 155,795 142,555 146,434 3,879

Fund 8 ‐ Foundation Programs 232,940 201,763 209,187 7,424

Fund 10 ‐ CEU 194,465 182,370 202,191 19,821

1,708,535 1,610,432 1,820,459 210,027

TOTAL FOUNDATION ADMIN FEE 4,728,393 4,533,786 4,853,776 319,990

406,902 689,844 689,844

TOTAL 3, 5, 8, 10, UET, & RESEARCH

ADMIN FEE

*Note: The Foundation retains the first 50 basis points of interest earnings on investments in the general

investment portfolio per Board Policy # 133 as follows:

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Cal Poly Pomona FoundationCost Allocation AnalysisFor the fiscal year ended June 30, 2017 Adjusted 2016-2017

2016-2017 2016-2017 2016-2017 Human 2016-2017 2016-2017 Overage2016-2017 Acctg & MIS Acctg & MIS Administration Human Rescources Actual Foundation Prg. 2016-2017 (Shortage)Computer % Actual Adjustments Actual Administrative Actual Resources Actual Total 75% Total Amount Variance Variance

Fund Transactions Accounting Allocation For Time Allocation % Allocation % Allocation Allocation Allocation Charged Amount %

General 53,384 11.65% 299,398.02 299,398 11.65% 1.00% 15,330.81 1.00% 5,528.11 320,257 - (320,257) -100.00%Real Estate 16,049 3.50% 90,009 90,009 3.50% 1.00% 15,331 - 105,340 222,689 117,349 111.40%Grants and Contracts 34,908 7.62% 195,778 59,703 255,481 9.94% 23.00% 352,609 50.00% 276,406 884,495 598,210 (286,285) -32.37%Designated 5,738 1.25% 32,181 32,181 1.25% - - 32,181 20,679 (11,502) -35.74%Enterprise 210,976 46.06% 1,183,234.61 (34,003) 1,149,232 44.73% 62.00% 950,510 35.00% 193,484 2,293,226 2,668,965 375,739 16.38%Agriculture 23,864 5.21% 133,838 (3,400) 130,438 5.08% 3.00% 45,992 3.00% 16,584 193,015 141,473 (51,542) -26.70%Endowment 14,148 3.09% 79,347 20,000 99,347 3.87% 3.00% 45,992 - 145,340 334,168 188,828 129.92%Programs/Scholarships 85,147 18.59% 477,537 (41,600) 435,937 16.97% 3.50% 53,658 2.00% 11,056 500,651 375,488 458,829 83,341 16.65%Continuing Education 13,871 3.03% 77,794 (700) 77,094 3.00% 3.50% 53,658 9.00% 49,752.99 180,505 203,392 22,887 12.68%

Total 458,085 100% 2,569,117 - 2,569,117 100.00% 100.00% 1,533,081 100.00% 552,811 4,655,009 375,488 4,648,405 118,559 2.547%

2016-2017 2016-2017 Programs/ScholarshipsActual total allocation vs. amount charged (41,822) Allocated Amount

Actual Cost per Charged perFund Transaction Transaction Variance

General/Innovation Village 6.00 - 0%Rental Buildings 6.56 13.88 211%Grants 25.34 17.14 68%Designated 5.61 3.60 64%Enterprise 10.87 12.65 116%Agriculture 8.09 5.93 73%Endowment 10.27 23.62 230%Foundation 5.88 5.39 92%Continuing Education 13.01 14.66 113%

Avg. per Trans. 10.18 10.76 106%

Average Balance QuarterlyAmount Distributed Foundation PrgsScholarships Yield Returned Foundation Prgs Scholarships Yield Withheld Foundation PrgsScholarships Total WithheldSept 167,421.96 21,121.69 0.57165% 29,287,494.10 3,694,863.99 0.12500% 36,609.37 4,618.58 41,227.95 Dec 143,401.53 17,408.77 0.49815% 28,786,817.22 3,494,684.33 0.12500% 35,983.52 4,368.36 40,351.88 Mar 128,385.75 16,079.80 0.43462% 29,539,770.37 3,699,737.70 0.12500% 36,924.71 4,624.67 41,549.39 June 133,286.79 17,569.93 0.44462% 29,977,686.56 3,951,673.34 0.12500% 37,472.11 4,939.59 42,411.70

572,496.03 72,180.19 146,989.71 18,551.20 165,540.91

644,676.22

4/17/201817a2 Admincostallocation_2017 DONE2016-17

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BUSINESS PLAN

ADMINISTRATION

APRIL 2018

2018-2019

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SECTION TABLE OF CONTENTS

Proposed Fiscal Year Budget

Business Plan NarrativeOverview of Current Fiscal Year

Explanation of Proposed Fiscal Year Budget

Changes in Programs and Services for Proposed Fiscal Year

Explanation of Proposed Fiscal Year Capital Requests

Changes in Staffing

Outlook Next 3 Years and 4 to 10 Years Beyond

Major Projects and Business Goals for Proposed Fiscal Year

Mission/Vision Statement

Strengths and Challenges

Employee Survey

Customer Survey

Keys to Success

Corporate Culture

Business Controls and Vital Factors

Asset Protection/Risk Management

Organization Chart

Business Plan Narrative Continuation - If needed (OPTIONAL) J

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ADMIN EXECUTIVE

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

319,990Administrative Fees 4,728,393 4,533,786 4,853,776(2,710)Sales 35,290 38,000 35,290

317,2804,889,0664,763,683Total Revenues 4,571,786


4,000Utilities 31,791 26,000 30,000(5,736)Insurance 92,525 67,635 61,899

5,800Repairs & Maintenance 17,400 11,600 17,40011,900Meals & Refreshments 16,900 5,000 16,900

(600)Postage & Freight 10,400 11,000 10,400155,400Advertising 45,000 55,100 210,500

300Rent/Commissions 7,800 7,500 7,80017,765Services 44,930 32,615 50,3803,724Supplies 14,605 14,361 18,0853,600Telephone 40,800 37,200 40,8005,147Travel 6,730 253 5,400

(59,397)Other 44,600 105,437 46,040

141,903515,604373,481Total Expenditures- Controllable 373,701


(5,571)Depreciation 7,800 27,075 21,504Interest Expense 120

600Rent/Commissions 1,800 1,200 1,800(10)Bank Card Fees 10210Other 600 150 360

(4,771)23,66410,320Total Expenditures- Non-Controllable 28,435

Labor Costs

126,535Salaries & Wages 358,860 150,369 276,90432,663Employee Benefits 114,882 46,159 78,822


296,330598,664857,543 894,994Total Expenses

Net Income 3,906,140 3,973,122 3,994,072 20,950


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Business Plan Narrative - Divisional(Schedule B) Overview of Current Fiscal Year:

Explanation of Proposed Fiscal Year Budget:

B

Forecasted administrative revenues are fees charged to various activities and are forecasted to be $4.5 million or 96% of budget, due to the decrease in revenues in the Bookstore, Sponsored Programs, University Village Housing and Foundation Programs. These fees support a wide range of necessary corporate functions. The forecasted Administration budget includes the year end CalPERS pension adjustment for actuarial changes in assumptions i.e. decrease in discount rate from 7.5% to 7.0% over a 3 year period (currently at 7.35%) and CalPERS investment returns less than actuarial assumptions. This adjustment was not included in the current year budget and can result in an expense or income depending on changes in actuarial assumptions and actual investment returns, accordingly Management has not modified the CalPERS benefit rate to incorporate this adjustment but rather includes in the Administrative Forecast budget. Administration is accountable for ensuring that support services are delivered and held accountable. The Foundation continues to be more efficient with upgrades to our software and hardware and training for our employees. The Foundation will continue to use virtualization and cloud-based systems to expand storage, control costs and increase information analytics.

Foundation Administration will continue to support campus activities in this year's proposed budget and collaborate with the University through the monetary support and services we provide. The Administration proposed budget includes no adjustment for the CalPERS pension as investment returns for the fiscal year ended June 2017 at least equaled the actuarial assumed returns. The actuarial changes in assumptions i.e. decrease in discount rate from 7.5% to 7.0% over a 3 year period (currently at 7.35%) and investment returns can result in an expense or income adjustment, accordingly Management has not modified the CalPERS benefit rate to incorporate the adjustment but rather includes in the Administrative proposed budget. The proposed budget includes costs for consulting services to review the efficiency and effectiveness of the operations and structure of the Foundation along with personnel recruiting costs for an Executive Director.

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Changes in Programs and Services for Proposed Fiscal Year:

Explanation of Proposed Fiscal Year Capital Requests:

Changes in Staffing:

Outlook for Next 3 Years and 4 to 10 Years Beyond:

CThe Foundation will continue strategies to improve productivity by restructuring departments and encouraging more "collaborative" opportunities. The Foundation will embrace the high-tech world with more use of mobile payment, self checkouts, digital signage and kiosk ordering for greater efficiency. The Foundation will continue efforts related to electronic documentation, use of the web, social media, and enhancing systems for more efficient operation. All systems will be sensitive to the effort of reducing greenhouse gases. The Foundation will continue to demonstrate organizational transparency by providing access to records online. The Foundation will focus on the issues raised by the Chancellor's Office and take actions to move quickly to implement recommendations that include training for its Board of Directors. The Foundation will continue to be transparent and accountable in all operations.

N/A

The proposed budget includes personnel recruiting costs for an Executive Director.

Sustainability will be the word for the next 10 years. CPPF issues will be driven by CPP funding and enrollment. The Foundation will manage resources based on needs and leveraging funds to meet campus and foundation needs. The Foundation will need to find new sources of revenue and enhance current revenue sources. Some of the major trends/issues that must be addressed as part of the 10 year plan will include the following: * Lanterman Developmental Center property will need ongoing support * Aging facilities (maintenance and replacement) * Revenue shrinkage (products and services changing) * PCI and protecting data concerns (customer and internal) * Constraints on the ability to reward employees * Social Media strategies for marketing and communications * Health care costs and Retirement costs * Expanding compliance and risk issues and their costs * Employee Training Costs * Succession Planning * The IT Department will be a center of collaboration among the Enterprise Units to facilitate the Acquisition of new technologies. *Campus review of the ID card

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Action Steps Person Responsible Due Date

D

*Implement quarter to semester conversion All June 2019

*Support the University with Lanterman Development Center Admin. & Real Estate June 2019

*Analytics dashboard build-out to support Grants, Financial Services& enterprise operations Admin. and Financial Services June 2019

*Innovation Village: marketing, and options for remaining land. Admin. & Real Estate June 2019

*Review effects of CSU salary inversion and senior management pay versus market. CEO,CFO,ChiefEmploymentOfficer June 2019

*Long-term plan-Kellogg West Conf. Ctr. & Lodge for financial and facility substantiality.

for renovation of Main Lodge, and inclusion of Collins curriculum. Admin. & Kellogg West June 2019

*Fiber run and server migration to the new data center POD Campus IT and FIT staff April 2019

*Dining Services - continue to create customer tailored dining environments that support the University

and implement recommendations from 2017 Board approved Dining Master Plan. Dining Services June 2019

*Bronco Bookstore-continue to provide savings to students thru an aggressive rental program and

the early adoption of textbook incentive program. Bronco Bookstore June 2019

* Univ Village-maintain high occupancy, financial performance, competitive rates and facility maintenance

that meets customer needs and expectations. Explore options for non-traditional student housing. University Village June 2019

Assist consultants with review and assessment of current organizational structure, functions & staffing. All June 2019

*Support Cal Poly Pomona's commitment to sponsored research and fund raising by providing resources

and services tailored to assist the campus meets its performance goals. Admin. and Financial Services June 2019

*Review options: Master Planning/Development of South Campus including student/faculty mixed housing Univ Facilities/Design, Admin. RE June 2019

*Climate Neutral, Reduction of Greenhouse Gases - Investigate and implement ways for the Foundation

to be climate neutral and reduce greenhouse gases in all operations. Be a role model for other to follow. All June 2019

*Presidential Order-The Foundation will use the Presidential Order to initiate opportunities to provide more

services to the campus community and market the advantages in "reinvesting in ourselves." Marketing et. al June 2019

Public Relations campaign-Foundation Gives back to the University Admin & Marketing June 2019

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Strengths and ChallengesStrengths

Challenges

EThe Cal Poly Pomona Foundation, Inc., established in 1966, is an integral component of the educational mission of the university. In pursuit of this mission, the Foundation is a partner in the university community which includes students, faculty, staff, administrators, alumni and members of the larger community. The Foundation exists to provide the highest level of service and financial support while maintaining corporate fiscal integrity. The role of the Foundation is to provide convenient and appropriate goods and services at a reasonable price and to develop additional assets and resources for the university. The Foundation also promotes and celebrates the cultural diversity of the university, helps foster and maintain an effective learning environment to provide educational opportunities, reflects an institutional image of competence and quality and encourages cooperative relations within the university community. Excellence in service to the university is the highest priority of the Foundation. The Foundation accomplishes this by: * Operating in a professional and conscientious manner. * Continually updating its planning for the future and emphasizing the importance of quality and excellence. * Promoting high standards for ethics, honesty, competency and professionalism in all its employees. * Developing and motivating employees to express an entrepreneurial spirit by using creativity, innovation, initiative and open communication. * Maintaining its commitment to affirmative action, equal opportunity, and career development in a safe working environment. The Cal Poly Pomona Foundation, Inc. is an equal opportunity, affirmative action employer. The Foundation subscribes to all state and federal regulations and prohibits discrimination based on sex, race, sexual orientation, national origin, handicap, marital status, age, religious creed, color, ancestry, medical condition, or veteran status. The Foundation hires only individuals lawfully authorized to work in the United States. The Foundation operates as a public-benefit charitable-educational organization under the provisions of the California Revenue and Taxation Code, Section 23701(d) and the United States Internal Revenue Code, Section 501(c)(3). As a recognized auxiliary of the California State University, the Foundation conforms to the regulations established by the Board of Trustees of the California State University and approved by the California State Director of Finance as required by the California Education Code, Section 89900. The university's administrative organization supervises the Foundation, as required by Title 5, California Code of Regulations, Section 42402. Created: 12/11/95 (per 1995/1996 Foundation Business Plan) CORPORATE VISION STATEMENT--"Quality Service Supporting Quality Education" To be the best... an organization of employees must be committed to quality. Recognized as leaders and "award winners." An organization having the best business practices. An organization where service quality consistently exceeds customer expectations and financial performance consistently exceeds comparable industry norms. An organization with a stimulating and gratifying workplace where employees can achieve their full potential. Vision and mission, strategic planning, policies and procedures, customer service and campus relations all build and depend upon each other. Without a vision and mission, effective planning cannot take place. The process of assessing current status, soliciting input from campus stakeholders, and identifying problems and goals is common to each, and reinforce the others.

Strong Diverse Revenue Streams* Growth Oriented - $50 Million in Net Worth and $100 million is Assets * A Major Donor to University * Supporter of Fund Raising * Award-Winning Services * Bronco Card Purchasing Capability * Veteran Management Team is Stable, learning Centered - Always Improving * Recipient of Unqualified Audits * Capable of Managing Large Projects in Support of University such as Faculty Housing and Innovation Village * Independent, Self-Supporting and Operates with Minimal Risk to the University * Financial Services and Post Award Grant/Contract Support * A Recognized Leader and Innovator within the Industry * Board Representative of University

Developing New Sources of Revenue* *Containing or Reducing Costs *Growing Cost of Employee Benefits * Lack of Retail Business during the Summer Months * Need to Maintain Cutting Edge Technology, Improve Efficiency and Integrate Systems * Need to Manage and Anticipate Risks of all Types * Meeting Customer Expectations for Low Prices and High Value * Need Green Strategies and Systems * Integration of Online /Viral Media Strategies into Traditional Marketing Campaigns * Anticipated flat enrollment * Challenging Economy and Retreat on Housing Prices * Supporting Real Property development * Implementing increasingly restrictive water usage measures

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Customer Survey

Employee Survey F (Surveys were conducted at the unit level)

(Surveys were conducted at the unit level)

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Keys to Success

Corporate Culture

Keys to Success Items Rank in Importance 10 to 1

Customer/Client Perception Unit Perception

G

Key to our success is to provide outstanding value to our major stakeholders:

*Customers: by delivering service beyond expectations 10

*Employees - by delivering high performance - self-motivating teams 10

*Cal Poly Pomona - by delivering exceptional financial performance and effectively supporting the campus mission 10

Key Issues:

* Identifying and providing core products and services. 10

*The Need for Changing Business Processes 10

* Balancing the goals of financial performance, customer service and serving Cal Poly Pomona in a

a challenging economy. 8

* Providing non-traditional products and services such as developing real estate projects. 9

* Knowing the cost of doing business and adjusting to economic realities promptly. 9

* Abandon yesterday - improve systematically and continually. 8

* Intensifying competition on and off-campus. 8

*Encourage more collaborative opportunities 10

*Access to Crucial Data 10

NO SECRETS: Everyone in the Foundation at all levels shares information openly.

NO SURPRISES: No one can claim to be in the dark about problems or opportunities

NO POLITICS: People get together and look at the same information and make tough

decisions

NO DISTRACTIONS: Management and systems operate in the background; they make noise

only when things go wrong. People are free to get their work done.

NO CONFUSION: Employees know what they need to do to succeed.

NO WASTE: The organization is lean and mean.

NO ILLUSIONS: We have no illusions about how tough things can be; that is why we

are constantly modifying, improving and starting over.

87



H ADMINISTRATION: * Oversees all programs, services and activities for program objectives * Develops administrative and personnel policies * Approves staff * Facilitates long-term and short-term planning * Prepares annual budget for Board approval * Approves expenditures * Serves as chief liaison with other organizations and key stakeholders BOARD OF DIRECTORS: * Understands and supports mission of Foundation * Selects the Executive Director * Shares expertise and engages in decision-making * Engages in planning * Provides adequate resources * Prepares for and attends board and committee meetings * Understands and evaluates programs * Enhances the Foundation’s public standing * Ensures legal and ethical integrity, and maintains accountability * Maintains the quality of the Board through careful recruitment and orientation * Evaluates the Executive Director and Board’s performance PARTNERSHIP: * Common expectations * Cooperative planning and evaluation * open and honest communications * Respect

The Foundation has long practiced a conservative approach to risk management and has transferred risk of identifiable hazards to insurers through purchase of comprehensive insurance coverage. This approach and the practices to implement it are integrated into Foundation operations. The Foundation has conducted Risk Assessments and reports for the units and will continue this practice.

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Director ofBookstoreClint Aase

Director of RealEstate Development

SandraVaughan-Acton

CAL POLY POMONA FOUNDATION, INC."Quality Service Supporting Student Success"

EXECUTIVE MANAGEMENT TEAM

Cal Poly Pomona Foundation, Inc.Board of Directors

Soraya M. Coley, Chair

Senior Managing Director andChief Financial Officer

David F. Prenovost

Chief EmploymentOfficer

Dennis Miller

Director of DiningServices

Aaron Neilson

Director ofMarketing

Edwin Santiago

Director ofFoundation Housing

David Laxamana

Director of KelloggWest

Cameron Edwards

Executive DirectorTBD

April 2018

Director of Grants andContracts

Debbie Linthicum

Director of InformationTechnology

Randy Townsend

Director of EnterpriseAccounting & Financial

ReportingSue Chiazza

Executive Assistant tothe Senior Managing

Director/CFOJenny Dennis

ExecutiveAdministrative

AssistantDebra Poe

Organization Chart

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BUSINESS PLAN

FINANCIAL SERVICES AND MIS

APRIL 2018

2018-2019

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Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


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FINANCIAL SERVICES

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

Sales 396 400 400

400396Total Revenues 400


32,004Repairs & Maintenance 221,444 202,400 234,40464Meals & Refreshments 2,064 2,000 2,064

285Postage & Freight 13,260 11,535 11,820Advertising 5,136 5,140 5,140

276Rent/Commissions (276)(40,091)Services 145,925 197,620 157,529

3,721Supplies 43,752 39,719 43,440104Telephone 4,800 4,300 4,404

6,471Travel 12,836 10,125 16,596(9,824)Other 4,716 14,696 4,872

(6,990)480,269453,933Total Expenditures- Controllable 487,259


44,406Depreciation 198,924 137,310 181,716104Rent/Commissions 5,988 5,500 5,604(4)Bank Card Fees 100 96

3,712Other 106,284 106,592 110,304


Labor Costs

122,114Salaries & Wages 1,433,004 1,449,946 1,572,06034,591Employee Benefits 515,934 488,711 523,302

156,7052,095,3621,948,938Total Labor Costs 1,938,657

197,9332,675,4182,714,067 2,873,351Total Expenses

Net Income (2,713,671) (2,675,018) (2,872,951) (197,933)


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B

190010: 7285: Services/Audit: Full Actuarial Study for Post Retirement Program by Nicolay Consulting Group. 190030: Capital budgets are on track for vendor related projects in all systems; Maintenance costs are up as workstations are upgraded to Windows10; Auditing is up, and labor costs have risen due to expanded need for PCI and POS support services. In fiscal year 2017-2018, project goals were met to perform the following: Financial system workflows, Bookstore POS upgrades; Convenience ctore POS upgrades; Kronos v8 talent acquisition module implementation; Micros/KW POS upgrades to EMV readers; Bookstore Apple DEP implementation; PCI penetration testing for v3.2; Odyssey upgrade; PCI audit and disaster recovery audit; IT PCI policy/procedure updates; RKR Micros server move; UV Wireless upgrade; staff hires; OneSolution beta testing; Cognos v11upgrade and report conversion; Varonis monitoring and logging installation. Projects are still open for the following: ONeSolution v18 upgrade; Verifone reader retirement; Enrollment analytics project; Windows 10 rollout; Azure disaster recovery testing; Tapingo rollout; Foundation Programs dashboard; CO InfoSec audit; Concur rollout; Grants invoice workflow; BCP update.

190010: 7285 Services/Audit: Going out for RFP for Year-End Auditing Services for FY 17-18. 190030: Capital expenses will include the upgrade to OneSolution v18 and a full migration from CDD to Cognos reports. In the coming year costs for computer maintenance will level the workstation upgrade is completed. Power consumption has dropped to it lowest point through virtualization of potential servers, and the move to backup/disaster recovery processes via hosted Exagrid and Azure cloud services. Vendor software maintenance will continue to increase gradually due to increased outsourcing, mobility and cloud services. This trend will be offset somewhat by lower in-house maintenance costs and greater business continuity. PCI consulting costs will be moved from capital to maintenance for business as usual, and will still include yearly pen testing, SAQ automation, and perpetual mitigation. PCI compliance service expenses will continue to be necessary to license staff in PCI and enhanced credit card monitoring services, and continued automation of online documentation. Expenses associated with cellular wireless services will continue a slow increase as more tablets, smart phones, and other IOT devices become strategic to business processes. Increased demand for technology driven by business intelligence growth and deeper security compliance requirements is pressing the need for more analytics and smart monitoring capability. In-house labor resources are stabling after the loss of three core staff and efficient are coming back for each work area. Work space is expanding due to storage needs growing. New workflows for the financial system are coming online in the coming year. Preparation is starting for a move of servers from building 55 to the new data center POD. Events and space management integration with CollegeNet.

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C190010: The Foundation has updated the accounting system to One Solution and will continue analyzing the functionality of new system and automating processes to improve efficiency. 190030: Where fiscally and operationally advantageous to Foundation business there will be a further move toward outsourcing and/or cloud hosting of applications. University equipment, as well as fellow auxiliaries, will continue to be evaluated against internal and external hosting in consideration of the Data Center Initiative. Any changes to services will be based on mutually beneficial agreements using industry standard service level agreements, or MOU's, written to insure separation of duties and requisite compliance.

190030: We are requesting funding for the following capital projects: 1. Windows 10 Updates rollover - Rollout of this new desktop operation system to the enterprise units. 2. Financial System upgrade to OneSolution v18, conversion of all CDD reports to Cognos v11, and new workflows. 3. Continued analytics dashboard build-out to support Grants, Financial Services, and the enterprise operations. 5. Mobile Device Management rollover - software updates to manage security on Foundation owned tablets. 6. Fiber build-out - for building 55 to allow improved speed, and preparation for the server moves to the new data center pod. 7. Storage and workspace update - storage room enclosure and cubical changes for staff. 8. Event and Space Management rollover - license/upgrade buy-in to a software for campus wide space management. 9. The addition of credit card monitoring services for ongoing financial audit. 10. Server room infrastructure upgrade in preparation of equipment moves to the new pod. 11. Odyssey Activity Module to provide reporting on new remote devices used by the campus.

190010: New Accounts Payable/Travel Position in 2018-2019.

190010: Improve financial and information systems. Continue to support increased activity in sponsored project proposals and Kellogg Legacy projects; Support University Advancements capital campaign; Continue long term risk management program for cost savings and risk mitigation; Year (2017-2019) Wireless expansion, Workflow Tools; Software Update Automation. Server Software Upgrades (Windows server 2012); SANS Hardware/Server Virtualization, Emergency generator, 190030: We are anticipating an increase of costs in the near future as maintenance expenses related to desktop automation, VDI, hosting, the data center is moved. Labor changes and hardware updates are being completed and will be stabilizing as new technologies increase spending this year. Increases in vendor maintenance fees are expected as cloud based computing is expanded for more automated application/analytics needs. Technical support to manage security monitoring, training, and risk mitigate and protection of confidential/business data is also increasing slowly. Additional consulting will be necessary for analytics and document writing. Over the next three years we will be performing further system consolidation; furthering the use of hosting, desktop virtualization, analytics, Artificial Intelligence, and Internet Of Things solutions.

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Promote OneSolution System through training and implementation All June 2019

Analyze system functionality and create automated processes to improve efficiency All June 2019

Create/Update department manuals to incorporate changes due to software upgrade All June 2019

Continue to develop and implement Concur travel system All June 2019

Mobile Device Management - software updates IT Staff July 2018

Windows 10 Updates - Rollout to the enterprise IT Staff July 2018

Financial System upgrade to OneSolution v18, and conversion of CDD reports to Cognos v11 Financial and IT Staff July 2018

PCIP training for staff, and credit card monitoring services IT Staff September 2018

Event and Space Management - license/upgrade IT and Campus Staff December 2018

Analytics dashboard build-out to support Grants, Financial Services& enterprise operations Enterprise and IT Staff August 2018

Workspace and storage enclosure remodels IT and Facilities staff July 2018

Financial system workflow buildouts Financial and IT staff October 2018

Fiber run and server migration to the new data center POD Campus IT and FIT staff April 2019

Odyssey Activity Module Campus IT and FIT staff October 2018

Travel and Expense build-out Campus IT and FIT Staff August 2018

95



Challenges

EThe Financial Services department provides accounts payable, accounts receivable, cash receipt processing, purchasing, grant and contract administration, management information services, financial reporting, budgeting, investments, risk management and other financial services to the University for functions relating to the Foundation's on and off campus commercial activities, sponsored projects, campus programs, endowment and scholarship funds and to other auxiliary organizations as needed. • The Financial Services department provides quality financial services by operating in a professional and business-like manner with a high degree of technical competency to meet both internal and external reporting requirements. • The Financial Services department strives for accuracy and timeliness in its services using trained personnel, computer systems and cost effective methods to safeguard the assets of the Foundation. • The Financial Services department provides financial analysis to aid Foundation administration and operations managers in decision-making. • The Financial Services department provides its employees with open lines of communication, opportunity for personal, professional growth and a participatory work environment to enable quick response to the growing demands of the University and Foundation activities and business.

Quality of staff; the ability to meet various required deadlines; multi-tasking; internal controls; communication through semi-annual meetings, monthly financial facts, newsletters, updated policies, procedures, forms on the Web; online Superion work order services; responsive to campus needs through internal managers; courteous; friendly; knowledgeable; professional; customer service oriented; and efficient.

Volume of work with minimal staff; maintaining accuracy with increased volume; cross training opportunities; delegation of responsibilities among staff; special projects; decentralization of accounting functions; consistency; inter-department communication; employees turn-over; limited resources to support new projects and recently implemented projects; office space constraints; and comparable compensation.

96

Customer Survey

Employee Survey FThis year's survey included the same 10 questions as the previous years and 17 out of the 19 employees responded to the survey. On a scale of 0 to 4, 4 being totally agree, 3 being agree, 2 being disagree, 1 being totally disagree, and 0 being don't know, there were a total of 55 responses who totally agree, 86 responses who agree, 20 responses who disagree, 3 responses who totally disagree and 5 responses who didn't know. Financial Services received an overall score for 17-18 of 3.18 verses 16-17 of 3.13, 15-16 of 2.92,14-15 of 3.08, 12-13 of 2.79,11-12 of 2.71, 10-11 of 2.90, 2.95 in 09-10, 3.00 in 08-09, 3.13 in 07-08, 2.92 in 06-07, 3.46 in 05-06. For 2017-18, the following totally agree or agree: 88% believe their supervisor considers them to be an important factor to their department's success; 94% feel they are treated with fairness, respect and equality as a whole; 76% feel other departments or employees react quickly to meet the needs of the other employees/departments; 82% feel there is a high level of trust between employees and direct supervisors; 94% feel there is a good level of trust between employees and upper management; 88% feel goals are communicated to all employee levels; 82% feel teamwork and communication within Foundation Financial Services is good; 53% feel their salary plus benefits is appropriate for the requirement of their position; 82% Foundation management is interested in their future and does all it can to develop their skills; and 94% enjoy working for Foundation Financial Services;

There were 25 responses where we have used the same scale as the employee survey from 0 to 4. We received an overall score of 3.21 in 17-18 verses 3.12 16-17, 3.34 in 15-16,14-15 3.21 in 13-14 2.77 in 12-13, 3.17 in 11-12, 2.98 in 10-11, 3.09 in 09-10, 2.97 in 08-09 year, 2.41 in 07-08 year. There were a total of 299 responses of which 110 totally agree, 135 responses who agree, 31 responses who disagree, 9 responses who totally disagree and 14 responses who didn't know. The following totally agree or agree: 92%--employees are courteous, helpful, knowledgeable and service oriented; 80%--faced with new projects or demands, Financial Services reacts quickly to meet the needs of the customer; 88%--produces a consistently superior level of accuracy in all of the work we perform; 80%--consistently completes assignments on time; 71%--incorporates current technology in servicing our customers; 88%--organized, professional organization that conducts transactions in a business-like manner; 92%--the services provided is an asset to the University; 68%--forms are easy to understand and use; 92%--the staff is always efficient when answering their questions; 88%--computer information is current and accessible; 60%--computer systems are reliable and efficient; 84%--MIS staff respond to service requests in a timely manner; Foundation Financial Services Procedures are comprehensible: 94%--Wells Fargo Purchasing Card 91%--Disbursement Voucher Form 78%--Travel Form 95%--Deposit 95%--Purchasing

97

Keys to Success

Corporate Culture



G

Knowledge/Expertise 9

Timeliness in Reporting 9

Responsiveness to Customer Needs 9

Compliance to Regulations and Policies 9

Accuracy 10

Quality of Service 10

Communication 9

Efficient 10

Teamwork 9

Integrity 10

Inflexible Innovative Ideas

Bureaucratic Education Customers

Friendly Friendly

Improve Responsiveness Improve Responsiveness

Cooperative Cooperative

Service Oriented Service Oriented

Professional Professional

Organized Organized

98



HWe control our business and vital factors by managing our time, providing timely service, accuracy and accessibility to information. We manage our time and projects through our 30 day goals process, weekly manager meetings, bi-weekly one on one manager meetings and monthly department meetings. We manage our service by assigning internal managers to respective colleges or divisions, customer survey, employee survey, focus group meetings, committee and director meetings and our five year cycle of all campus program and scholarship projects. We manage our accuracy of information through segregation of duties and required review and approval of all transactions and reports. We manage the accessibility of information through the Web based One Solution accounting system.

1. Mitigating the risk of network security breaches. Corrective action includes use of monitoring software, log management, pro-active scanning and improvements to physical security of equipment. 2. Business continuity risk management. Corrective action includes hardware and software redundancy in mission critical computer systems, pro-active facilities maintenance in the areas of electrical, cooling, water and fire suppression systems and general disaster recovery protocols. 3.Examining feasibility of alternative risk management by transferring the risk (through contractual transfer of risk and commercial insurance) or risk retention (through higher deductible and establishing a funded insurance reserve). This task is done by the following: 3a. Reviewing the contracts, insurance requirements, and hold harmless agreements or indemnification clauses to transfer legal and financial responsibility of loss to other parties. 3b. Annual review of Foundation insurance programs/coverages, property and liability schedules, and Insurance reserve for proper funding.

99

April 2018

CAL POLY POMONAFOUNDATION, INC."Quality Service Supporting Quality Education"

FINANCIAL SERVICES /MANAGEMENTINFORMATION SYSTEMS

Organization Chart I

100


BUSINESS PLAN

EMPLOYMENT SERVICES

APRIL 2018

2018 - 2019

101

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


102

EMPLOYMENT SERVICES

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed




(300)Meals & Refreshments 1,200 1,500 1,20030Postage & Freight 300 150 180

955Advertising 7,200 6,700 7,655600Rent/Commissions 1,200 600

6,100Services 23,700 23,300 29,400400Supplies 10,200 8,000 8,400200Telephone 3,600 4,000 4,200

(400)Travel 6,600 7,000 6,60096,550Other 18,000 18,050 114,600



Total Expenditures- Non-Controllable

Labor Costs

57,678Salaries & Wages 390,428 394,350 452,028(4,675)Employee Benefits 202,050 215,500 210,825


157,138678,550664,478 835,688Total Expenses

Net Income (664,478) (678,550) (835,688) (157,138)


103



B

The 2017-2018 was a good year. We continue to make minor changes in processes to continue improving efficiencies by leveraging technology while conducting the business of Employment Services. We focus on improving processes that tend to improve outcomes for our employees and retirees. We consider new employee benefits and programs, and look for new ways to provide services with the objective of remaining generally competitive with the evolving workplace demographics while working to ensure all employee benefits and programs remain fiscally viable. Foundation continues to offer and administer three healthcare plan options for employees and early retirees including the self-insured plan with stop-loss insurance (our EPO plan), and two fully insured plans from Kaiser. One Kaiser plan is a traditional HMO plan, and the other plan is a "deductible" Kaiser plan. The deductible plan offer lower monthly premiums for employees or early retirees and has a deductible that must be paid before some services are covered. We also continue to offer three medicare healthcare plans for eligible retirees; one plan is provided by Kaiser and the other two are provided by United Healthcare.

Currently, the self-insured EPO plan remains a viable benefit. However, the healthcare market is dynamic due mainly to unpredictable regulations and as such we will remain open to consider all options for providing quality and affordable healthcare benefits to our employees and retirees while ensuring the cost of those benefits remains sustainable.

We are currently on track to meet our goals and expect to finalize the year slightly below budget.

Little to no variance forecasted. However, Employment Services has agreed to cover 50% of the expense with Dining Services for their decision to add an HR Generalist to the Dining Services function.

104





CNo planned changes in programs or services for the 2018-2019 year.

Capital budget request is for $45,000 to upgrade the Human Capital Management (HCM) platform which will provide current technology for all employees along with a refined and improved user experience. It offers many new features for managers such as predictive capabilities, allowing managers and employees to view critical information at a glance, allow users to access the system from any mobile platform, and many additional important tools.

None. However, Employment Services is providing financial support for a HR Generalist position that Dining Services will add to its function.

During the near term we anticipate continued process improvements in how services are delivered from Employment Services in the area of hiring and the on-boarding process for new employees. This is a direct result of the implementation of Talent Manager and its associated functionality, and the implementation of the new HCM platform. Employment Services will continue to refine its processes and approach for delivering employee development related to supervisory employees. Refining and sustaining the training and development for the next generation of supervisory employees is our most critical long term objective. Looking beyond, between now and the next 5 years, the overwhelming majority of our existing senior management team will likely have retired, and planning for this outcome is a key strategic initiative. Exacerbating this problem is a shrinking pool of experienced and qualified applicants for these essential positions from which to recruit.

105



D

Refine and execute strategic plan for enhanced employee communications and engagement Dennis 9-30-18

Modify programs and communicate changes regarding health insurance offerings Dennis / Nora 12-15 -18

Coach supervisors and managers on performance review techniques Dennis / Nora / Angelique July 15 - 18

Annual benefits renewal Nora 12-30-18

Document, communicate, and execute monthly goals Dennis Monthly

Annual budget and business plan Dennis 2/15/19

Update Employee Handbook Dennis 11-1-18

106



Challenges

EThe key mission of the Foundation Employment Services Department is to deliver the full spectrum of employment based services to all employed by Foundation, throughout the entire employment life-cycle, in support of their roles supporting the educational mission of Cal Poly Pomona. We achieve our mission by providing cost effective employee centered benefits, programs, and payroll services, with a focus on attracting new employees while maintaining a balanced quality of work-life environment for existing employees during their time as a member of the Foundation. The Core Values of the Employment Services Department include: a) Fair treatment for all employees and applicants b) Superior level of services to our employees c) Confidentiality and Security of "Personal Information" d) Professionalism e) Appropriate ethical and moral behavior f) Timely and accurate administrative related services

1. Well organized and cohesive team 2. Positive attitude with a strong focus on providing professional level employee services 3. Strong willingness to create and adopt new processes and new technologies - thereby adding value 4. Relatively low cost service provider encompassing the full spectrum of employee services 5. All team members have embraced the mission of the department and are all working toward the same outcomes 6. Professional growth opportunities for all team members

1. Evolving the skills of all employees in Employment Services toward becoming more strategic and more customer centric as a services provider. 2. Enhancing the technical skills (job skills) of all employees in Employment Services to keep pace with new demands, technology changes in the marketplace, and to encourage individual professional evolution. 3. Adapting to the changing demographics in recruitment, selection, and retention.

107

Customer Survey

Employee Survey FSurvey not completed this year.

Survey not completed this year.

108

Keys to Success

Corporate Culture



G

Timely, clear, and thorough communications 10

Positive staff and employee relations (i.e.: employee centric) 10

Quality delivery of employee services 10

Sets example of high ethical standards 10

Enhancing employee engagement 10

Responsiveness 10

Setting the appropriate professional example 10

Open door policy 10

Timely and accurate database information, and the security thereto 10

Adaptability 9

Supporting Foundation's culture of transparency 9

Unknown Fair

Helpful

Flexible

Patient

Approachable

Adaptable

109



H On a monthly basis, setting and achieving measurable and realistic, goals (goals aligned with the business plan). Timely communications with Executive Director on risk issues; developing and implementing appropriate solutions to address and/or minimize the risk. Timely and thorough collaboration / communications with unit Directors on matters of importance applicable to their units. Continue to improve all employment processes. Offer and deliver services to operational units that assist them toward achieving their business objectives.

110

CAL POLY POMONA FOUNDATION, INC."Quality Service Supporting Quality Education"

EMPLOYMENT SERVICES

April 2018

Dennis MillerManaging Director

and ChiefEmployment Officer

TBDDining Human

Resources Generalist

Angelique HernandezHuman Resources

Generalist

Gloria McAllisterPayroll Manager

Nora FernandezEmployee Benefits

Administrator

Monticha ImsuksriPayroll Specialist


111


BUSINESS PLAN

MARKETING

APRIL 2018

2018-19

112

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


113

MARKETING

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

Other 1,500600Sales 900 1,500

6001,5001,500Total Revenues 900


4,140Repairs & Maintenance 2,900 4,940 9,080Meals & Refreshments 900 1,800 1,800Postage & Freight 250 250 250

4,940Advertising 50,200 46,700 51,640(1,700)Services 10,900 13,400 11,700

4,677Supplies 45,900 42,618 47,2951,400Telephone 4,900 3,500 4,900

90Travel 5,100 4,400 4,490744Other 1,622 1,650 2,394



Administrative Fees 684,634Depreciation 11,916 4,066 8,700


Labor Costs



54,029563,880584,440 617,909Total Expenses

Net Income (582,940) (562,980) (616,409) (53,429)


114



B

We will be within our budget by the end of fiscal year 2017-2018. We should be under budget. We had very successful events including Summer Orientation, Hotdog Caper, BrewWorks Anniversary Party, Grad Fair, Holiday Alumni Event. We have successfully installed and implemented the digital signs at Campus Center (2) and Atrium (2). We have been utilizing the digital displays to promote all campaigns. We created several foundation videos for online promotion for the Foundation, Dining Services, Kellogg West, Innovation Village and South Campus. We also used the drone for photography and videography.

2018-19 MARKETING BUDGET: 1) 3% Increase in salaries 2) There are no major equipment purchases in 2018-2019 other than maintenance and ongoing software expenses related to the 29 TV Monitors that we are installed

115





CWe are creating a social media and campus event campaign to promote Foundation Units called "A BRONCO IS" We are promoting Bronco Channel heavily in 2018-19 and planning on spending a bit for its promotion including a booth, banners and raffle.

We are hiring part time student employees for student outreach and Marketing student to help during semester conversion and new campaigns

1. Big ad campaigns to promote Innovation Poly Trolley, Brew Works, Jamba Juice, and Einstein 2. Promote BroncoChannel.com to increase awareness to the campus community. 3. Reach 40% occupancy rate for University Village during Summer and 99% remainder of the year 4. Combine our social media efforts for Bronco Channel and phase out other social media platforms. 5. Do more articles for Poly Post, Poly Trends and Panorama. 6. Increase profitability for Poly Trolley and Coffee Cart 7. Increase occupancy and conference sales at KW Hotel by 15% 8. Launch campaign to boost sales at Denny's and Vista Market 9. Increase overall website hits by 15% 10. Increase BroncoGear Sales by 20% and Grad Fair by 15% 12. Develop more Foundation videos/PSA 13. Make all websites ADA Compliant

116



D

Hot Dog Caper Edwin/Arielle Oct

Foundation Image Campaign Arielle July/Aug

Campus Map Edwin December

Computer and technology sales at Bookstore Edwin/Alex Ongoing

100% Accessibility for our websites Alex July

Update faulty/staff/student email database Alex Oct

Priest Scholarship and Pepsi Scholarship Marketing Arielle Oct

NACUFS Dining Customer Service Survey Alex Oct

Develop Video Usage for The Foundation Darren Nov

Innovation Village/Real Estate Website Rebrand Alex/Arielle May

Village Summer Occupancy Edwin Ongoing

Bronco Channel Lisanne Dec

Create campaign for Bridal at Kellogg House Edwin/Arielle July

Increase Dining Services' FB "likes" by 40% Lisanne//Darren June

Re-Do Dining Services Website Alex Dec

Promote ATT Arielle July

Los Olivos Meal Plan Video Darren December

Atrium Display for the Village Edwin July

Campus Catering campaign Alex/Edwin Ongoing

GET Funds Campaign Alex/Arielle June

Accessibility Act website conformation Alex ongoing

Wedding at KH Campaign Edwin/Amanda Nov

Promote Peet's Coffee & Einstein Lisanne/Darren June

Grad Fair 2018 Alex April

Alumni Holiday Event Alex/Edwin December

117



Challenges

EMISSION STATEMENT: Marketing provides services that promote the Foundation to internal and external constituents in a manner that will facilitate the organization's ability to achieve its stated goals. To accomplish this, Marketing's focus is twofold. First, to engage in activities which build awareness of and enhance the Foundation from a corporate stand point. Secondly, to provide assistance to individual units in realizing their goals through various promotional endeavors. VISION STATEMENT: Support the marketing, public relations and advertising functions of all auxiliary units including Human Resources, Foundation Administration and Financial Services. Our goal is to maximize the results of each department's advertising budget, safeguard the branding of each unit by keeping a consistent look in all its advertising and signage and continuously research innovative and cost effective ways of reaching the campus community.

1. Creativity 8. Keep on top of evolving technology to increase our marketing presence. 2. Timely processing of requests 9. Wide spectrum of services: Photography, event planning, 3. Working on minimal budget web development, public relations, graphic design, etc. 4. Goal oriented 5. Innovative 6. Consistent quality of work 7. Ability to work in a time-crunch

1. University's email policy 2. Enrollment numbers down 3. Limited budget of units 4. Lack of planning from unit 5. Mass Email distribution issues

118

Customer Survey

Employee Survey FAn employee survey was not conducted

Marketing Customer Survey was not conducted

119

Keys to Success

Corporate Culture



G

Quantity of Projects 10

Quality of Projects 9

On-Time Delivery 9

Creative Content 9

Customer Relations 9

Use of emerging technology to reach our target market 9

Marketing Options 9

Adherence to Budget Excellent

Creativity Excellent

Adapting to New Technology Excellent

Professionalism Meets Expectation

Award-Winning Performance Excellent

Knowledge Excellent

Return on Investment Excellent

Results Oriented Excellent

Attention to Detail Excellent

Meeting Deadlines Meets Expectation

Innovative Ideas Excellent

120



HCommunication with clients regarding project status Tracking unit's marketing budget vs actual Analyzing marketing costs vs. return on investment (ROI) Analyzing labor costs vs. work output Tracking on-time delivery of projects Maintaining high quality product Maintain high client satisfaction level Prioritize project requests on hand Introducing innovative ideas and marketing solutions Cost effective marketing solutions

121

Edwin SantiagoDirector,Marketing

Lisanne WuMarketing

Coordinator

Darren IsomotoMarketing

Coordinator

Arielle SaileneTorrez

Marketing Writer/Assistant

April 2018


MARKETING

Alex HernandezAssistant Director of

Marketing and Webmaster


122

Continued -

Continued -

J

4 to 10 years and beyond: 1. Enter CACS, NACUFS and Loyal Horton competitions and win more awards 2. Win web awards for our websites 3. Increase use of new forms of media in order to market to students on campus 3. Standardize branding for all websites 4. Maintain bookstore's market share in the face of evolving technology by increasing online sales and digital book sales 5. Partnership with Public Affairs and Athletics 6. Use social media/web/internet/e-mail more efficiently for all marketing campaigns 7. Increase social media likes by 40% 8. Support our Climate Commitment by reducing print collateral 9. A continuous Foundation image campaign 10. Develop branding standards for all units 11. Broaden BroncoChannel.com 12. Strengthen Partnership with ATT

No Continuations


123

REAL ESTATE ADMIN

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

16,890Other 23,700 6,310 23,200(1,350)Sales 300 1,800 450

15,54023,65024,000Total Revenues 8,110


(50)Meals & Refreshments 250 300 250Postage & Freight 100 100 100

(400)Advertising 800 1,300 900400Rent/Commissions 450 50 450

2,550Services 3,000 2,500 5,050800Supplies 4,400 3,800 4,600600Telephone 2,440 1,840 2,440

5,390Travel 12,000 6,510 11,900250Other 1,350 2,200 2,450



Total Expenditures- Non-Controllable

Labor Costs



43,256287,408293,394 330,664Total Expenses

Net Income (269,394) (279,298) (307,014) (27,716)

124


Proposed Fiscal Year - Project Summary - Schedule B

Overview of Current Fiscal Year:


Real Estate Administration

The Department had steady demand in time and services in the prior fiscal year. We remain active with the campus efforts related to assessing the former Lanterman Development Center. However, we are no longer involved in the maintenance and security services on the property. Our efforts have been focused on generating income on the property through our efforts with the film industry. This past year we had turn over in our Assistant Property Manager position and hired a replacement who is doing a great job. We have also added a part-time accounts payable/receivable clerk to take over the day-to-day accounting functions that were at one time under the Assistant Property Manager's role, thus freeing up time to focus on real estate management, leasing and tenant relations matters.

Proposed Fiscal Year budget assumes that the current projects in place continue and demand for real estate services in all areas (faculty/staff housing program, Innovation Village, gift real estate, campus buildings and the former Lanterman site). With the addition of the part-time accounting clerk the department is better able to take on added responsibilities as we hope to sign a new build-to-suit user at Innovation Village and will likely be involved in more gift properties as the campus pushes its fundraising efforts along.

125





The most likely change in programs and services will come about as a result of successful marketing strategies at Innovation Village in attracting a new build to suit tenant and/or additional donations of real property that need due diligence and disposition. We are aware of a few new gift properties that could be added to our portfolio in the coming year and we anticipate being involved with the monetization of 1 or 2 gift properties that will be ready for re-sale. In addition, the faculty-staff housing program is experiencing a higher level of turn over as the buyers are at the higher level of ground rent structured in their lease. The campus is scheduled for as many as 40 faculty-new hires in the Fall, which will add to our volume of inquiries and requests for housing assistance. Additionally, with the decision to hold Lanterman Developmental Center our efforts to generate income continues.

No capital requests in Real Estate Administration

No known staffing changes planned or anticipated.

Assuming no major changes in programs and scope of projects currently in place, the outlook for the next 4 to 10 years appears to be one of growth and possible need for at least one added staff. Because of the nature of this business and the changing needs of the campus, it is very difficult to predict how much demand there will be for additional real estate resources outside the existing program. While we are taking a conservative approach and assuming that no other projects other than the current projects will demand additional resources, we are aware that CPP Campus South and Spadra may increase the demand of our services in the future and create the need for an added staff member.

126


CALPERS AND

EPO PLAN

127

CalPERS & EPO Plan

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed




230Other 4,824 4,522 4,752

2304,7524,824Total Expenditures- Non-Controllable 4,522

Labor Costs

(750,328)Employee Benefits (228,960) 910,966 160,638

(750,328)160,638(228,960)Total Labor Costs 910,966

(750,098)915,488(224,136) 165,390Total Expenses

Net Income 224,136 (915,488) (165,390) 750,098

128





CalPERS & EPO Plan

For the 1st time we have included the actual CalPERS year end adjustment (GASB 68) in this forecast. The forecast reflects the actuarial expense of $704,548 mainly due to CalPERS investment returns less than the actuarial projections for the fiscal year ended June 2016. The EPO Health Plan (Exclusive Provider Organization) and related IBNR (incurred but not reported) claims were $369,792 and $272,761 for the calendar years ended December 2017 and 2016 respectively. Accordingly, we have averaged the two years and projected the EPO Health Plan to incur the cost of $321,277 for the calendar year ended December 2018. Therefore we have forecasted the EPO Health Plan to be $206,418 through June 2018, not half the average of $321,277 or $160,638, because as we have incurred expenses of $95,799 through March 2018 and the accrued liability is only $50,019 and we need the incurred liability to be $160,638.

The proposed budget assumes the CalPERS year end adjustment (GASB 68) will be $0 as we assumed CalPERS investment returns will be at least equal to the actuarial projections for the fiscal year ended June 2017. The EPO Plan (Exclusive Provider Organization) and IBNR (incurred but not reported) claims are projected to be the average of the prior two years or $321,277 for the calendar year ended December 2018, therefore, the proposed budget includes the 2nd half of the calendar year accrued liability or $160,638. The reason for only proposing the cost of the EPO Health Plan through December 2018 and not through June 2018 is because we plan on discontinuing the EPO plan and move to a fully insured plan with Anthem through AORMA. No additional costs for the Anthem Health Insurance Plan are proposed in this budgeted project because we assumed there will be an actual savings with moving to the new Health Plan in January 2019.

129


REAL ESTATE DEVELOPMENT

130


BUSINESS PLAN

REAL ESTATE

APRIL 2018

2018-2019

131

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


132

REAL ESTATE TOTAL

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

52Investment Returns 76,488 72,548 72,60025,111Other 237,605 142,539 167,65045,720Sales 4,297,084 4,505,603 4,551,323

70,8834,791,5734,611,177Total Revenues 4,720,690


32,023Utilities 386,657 361,611 393,634(692)Insurance 42,514 45,092 44,400

(20,394)Repairs & Maintenance 1,665,525 1,873,803 1,853,409100Meals & Refreshments 300 200 30040Postage & Freight 120 80 120

164Advertising 8,500 6,536 6,700Rent/Commissions 12,600 12,600 12,600

488,312Services 340,510 302,932 791,2443,224Supplies 33,024 34,300 37,5242,006Telephone 6,000 3,394 5,4005,525Travel 9,325 400 5,9256,046REAL ESTATE FEES 43,452 28,958 35,004

3Other 70,555 72,927 72,930



3,464Administrative Fees 225,665 229,817 233,281(1,142)Depreciation 807,225 774,311 773,169(6,244)Interest Expense 114,420 73,896 67,652(4,292)Other 14,000 18,292 14,000

(8,214)1,088,1021,161,310Total Expenditures- Non-Controllable 1,096,316

Labor Costs



522,8434,099,2794,037,672 4,622,122Total Expenses

Net Income 573,505 621,411 169,451 (451,960)


133

REAL ESTATESURPLUS/(DEFICIT) BUDGET COMPARISON SUMMARYFOR THE FISCAL YEAR

DESCRIPTION Actual YTD

3/31/17 2016-17 Actual2016-17 Forecast

2016-17 Approved

BudgetActual YTD

3/31/182017-18 Forecast

2017-18 Approved

Budget

2018-19 Proposed

Budget

REAL ESTATE DEVELOPMENT220080 Center for Training Technology & Incubation 132,433 52,351 (7,712) (92,490) 210,101 31,713 (3,860) 2,884 220010 Innovation Village - see Note 1 653,685 807,091 784,239 740,517 675,407 821,624 794,035 827,478 220050 Innovation Village/American Red Cross 7,356 (6,635) - - 4,019 - - - 220052 Innovation Village/Tramel Crow 2,554 326 - - (4,590) - - - 220070 Innovation Village Common Areas (59,577) - - 2 (52,302) - - 2 220250 Trammel Crow/I.V. Phase IV 1,659 (488) - - (3,302) - - - 459540 Spadra Farm - - - - - - - (418,632) 460760 Real Estate Campus Improvement - - - - - - - - 461890 Innovation Village Phase V 1,354 (1,275) - - (3,523) - - - 461900 Innovation Village Phase VI - - - - - - - - 462140 Support for Lanterman Operations (8,770) (499,999) (500,000) (500,000) (392,046) (500,000) (500,000) (500,000)

Total Real Estate Development 730,694 351,371 276,527 148,029 433,764 353,337 290,175 (88,268)

RENTAL Buildings200660 Building # 66 - Classrooms & Offices 118,534 148,510 153,807 131,358 136,530 181,491 148,802 178,153

190970 Building # 97 - Offices 107,707 143,925 139,767 130,638 114,397 155,084 137,643 160,378

200220 CTTi Building # 220A - College of ENV Studio (97,393) (135,343) (146,924) (149,632) (98,423) (153,142) (167,352) (166,032)

190330 Downtown Pomona Building - - - - - - - -

Total Rental Buildings 128,848 157,092 146,650 112,364 152,504 183,433 119,093 172,499

FACULTY/STAFF HOUSINGFund 11 Faculty/Staff Housing 182,655 302,853 221,243 71,938 59,897 84,641 164,237 85,220

Total Faculty/Staff Housing 182,655 302,853 221,243 71,938 59,897 84,641 164,237 85,220

GRAND TOTAL REAL ESTATE 1,042,197 811,316 644,420 332,331 646,165 621,411 573,505 169,451

134



B

The residential real estate market continued its growth pattern this past year, despite some uncertainties from Washington and talk of increased interest rates. It appears we can expect improvements, albeit slower, in the next fiscal year. Our program has matured to the extent that our homeowners are "graduating" out of the program by purchasing other homes. We expect several homes sold back to us in the coming year and expect as many as 20 faculty new-hires coming into Fall 2018. In addition, home prices are rising modestly which may encourage homeowners who purchased early to sell. Lastly, some of the owners who have been with us a while are feeling the pinch of the gradual ground rent increases and are looking to move out of our program. We own 1 units= at Fair Oaks Walk that is currently leased. It is likely that we will require that resident to purchase or vacate in order for the home to be sold. We know we will have a few homeowners sell their homes in the next year while we manage a waiting list of potential buyers. On the commercial real estate side Innovation Village is progressing now that the market has improved and we are speaking with a number of potential users of R&D space that we hope to build in the next few years. Expenses for the most part are steady with some exceptions within Innovation Village at CTTi due to unplanned HVAC modifications. Additionally we are finding the need to replace plant material in the common areas at Innovation Village due to their age, thus driving the annual cost higher. Lastly, we expect the Campus South development to begin its next phase with the selection of a developer by the campus. Therefor we are not budgeting any further revenue generation on this project beyond June 2018.

All Real Estate operations are anticipated to operate in 2018-19 at similar levels experienced in 2017-18 including Campus South as this project will be turned over to the campus development partner in the following fiscal year 2019-20. Faculty/Staff housing program will see the same number of sales even though our inventory has grown. There are a few on the horizon we anticipate being sold, but the volume will likely be the same between this year and next. Innovation Village is holding steady. Trammell Crow has an option to extend their comitment to the project for an additional 5 years. We believe they will exercise this option in May. CTTi should be back to 100% occupancy by year end and there are no new developments at Innovation Village in planning. Buildings 66 and 97 continue to generate stable income with no major operational expense changes.

135





CWe anticipate a possible increase in demand for our services due to the CPP Campus South project, however they do remain somewhat tentative at this time. Additionally we continue to experience an increase in real estate donations to the University.

The Center for Training, Technology and Incubation has stabilized and we anticipate only needing to complete the capital projects approved for this year. Building 66 refresh, including the 4 restrooms, paint, carpet and updated lighting in all common areas and refresh of the classrooms, is complete with punch list items still pending. There is one item remaining due to issues with the polished concrete and that will need to be completed during the summer. We will not close out this capital project until 2018-19 fiscal year.

The department has had personnel changes. Our Property Manager left us early in 2017-18 fiscal year and we hired her replacement in the fall. We have also added a part-time position to handle the accounts payable and accounts receivable for the department. We have been relying on the accounting department for assistance in this area which was inefficient. We now have controls in place with this dedicated staff member which will allow us to perform our functions in a more timely manner.

ADMINISTRATION: Real Estate Administration is anticipated to operate consistent with its current operations over the next 3 years and beyond. HOUSING: As the real estate market improves and interest rates begin to rise, affordable housing is going to become much more in demand. It is possible that the University will desire more work force housing closer to the campus to support the President's climate commitment. CPP Campus South will be the likely location for this development to take place. We believe there may be room for work force rental housing in the future. That is unlikely to happen for at least 2 to 5 years.

136



D

Sell homes in the Fair Oaks Walk project as they are purchased back under our buy-back option Randy Wallace ongoing

Sell Kellogg Tract homes as they are purchased back Randy Wallace ongoing

Lease vacant space at CTTI as it comes available Randy Wallace/Adriana Carreon ongoing

Negotiate the next ground lease with Trammell Crow for the next phase of Innovation Village Sandra Acton ongoing

Work with Trammell Crow on marketing future phases of Innovation Village Sandra Acton ongoing

Work with campus on approximately 300 acres of land known as CPP campus south site Sandra Acton as needed

Continue to evaluate donated real estate for gift acceptance by the Foundation on behalf of the University Sandra Acton/Randy Wallace as needed

Possible support services to campus related to CPP Campus South Sandra Acton as needed

137



Challenges

EIt is the Real Estate Department's vision to be the premier source of real estate support and information to the Foundation and the University. By providing support to those seeking housing within the faculty and staff, as well as services relating to the commercial real estate industry, we hope to be the first place the campus looks for support in real estate. We are doing this by responding to requests for market information as opportunities arise as it relates to both commercial and residential real estate. We are also doing this by responding to those seeking housing not just within our housing program, but also outside our program. While we cannot offer sales support to everyone looking to purchase a home, we can assist in the information gathering stage and refer to outside resources for both short term and long term housing needs. Additionally, as the campus administration requests, we assist high level recruits understand the local real estate market and provide support in their efforts to find housing.

Where office or lab space is needed, our first resource is Innovation Village. We are working with both campus personnel as well as the private sector to find tenants that complement the research park and support the mission of the University.

In addition, we continue to provide support to the campus as future acreage is master planned for public/private partnerships both currently owned by the campus and those being looked at for acquisition.

Finally, we continue to operate as the source for campus Development officers in the Advancement Office for due diligence, valuation, acceptance, management and ultimate disposition of donated real estate. In the past 8 years we have assisted in the acquisition of several properties - some have been held and managed by us, others have been immediately monetized. A solid pipeline of properties is currently being assessed for potential donation.

Well trained, knowledgeable, seasoned, and licensed professional personnel who continue to learn and grow Support from Foundation administration and management Culture of cooperation within the department Knowledge and experienced beyond the CSU system Community involvement in Pomona Chamber and surrounding areas

More demands on our time due to an ever changing real estate market and internal administrative/management changes Required to take on new projects (donated property, Spadra, CPP Campus South) which require additional time and resources without commensurate salary review/modification. Loss of personnel due to lack of ability to respond to a competitive job market Real Estate market that is still challenging and a lending environment that continues to create obstacles Lack of Executive Director impacts our ability to respond and work with the campus administration/faculty and staff

138

Customer Survey

Employee Survey F

139

Keys to Success

Corporate Culture



G

Supportive campus administration 10

Supportive Foundation administration and management 10

Talented and committed staff with vision and understanding of their field 10

Effective communication between staff and customers 10

Effective progress measurement tools 10

Culture of cooperation within the Department 10

Recognition and reward of staff achievement by management 8

Access to tools to perform efficiently and effectively 8

Education and personal development of staff 7

Experience in performing duties and years of serving campus 7

Contact and knowledge of general marketplace beyond the CSU system 5

Periodic review of workforce and demands on staff to maintain the highest level of service to our customer 5

Pleased with high level of customer service A campus Asset

Need to be more flexible with the components of the housing program Providing the best available in the market today within our capability

Need to be more flexible with existing homeowners who have purchased in Providing as much as we can with the resources available today but we

the program prior to the market downturn have our own constraints and are subject to the market along side them

Institutional and Rigid Entrepreneurial and service oriented

Entrepreneurial and creative in generating revenue Given more responsibility and work without adequate compensation

Think outside the box to problem solve

Not always appreciated for what we deliver and the value added

140



HBusiness Plan 30 day goals Capital and operating budgets Board of Director input Monthly P&L reports and management review Monthly Accounts receivable aging report review Periodic updates to budget forecast Monthly department meetings to go over all activities Current market indicators and real estate reports on trends in the market Lender data on interest rates and loan programs being offered today CAR data on median housing prices, sales trends and inventory RELUI annual market outlook event Various brokerage reports on the commercial trends LAEDC and other economic development groups providing data on economic development Real Estate Research Council at Cal Poly Pomona - quarterly housing report and meetings IREM data on operating costs of commercial product and ongoing training and education IREM, NAR, ULI and CAR updates on legislation effecting the industry Department of Real Estate updates on laws impacting the sale and leasing of real estate and agents handling these transactions CAR forms and templates for use in residential transactions IREM and AIR forms and templates for use in commercial transactions Pomona Chamber of Commerce information on the local business climate and politics San Gabriel Economic Partnership for regional data on the business climate and politics

Real Estate Department in the past has solely been focused on for sale housing and ground lease real estate at Innovation Village. As the Department has expanded to include oversight of marketing and managing CTTi, management of buildings 66 and 97, filming at CPP Campus South, as well as real estate donations and other ad-hoc assignments, we have begun looking at Asset Protection and Risk Management of all facilities.

141

Sandra Vaughan-ActonDirector,

Real Estate Development

Cynthia DelgadoAR/AP Accountant

PT

Adriana CarreonAssistant Property

Manager

Randy Wallace, Jr.Assistant Director

April 2018


Real Estate


142

Continued -

Continued -

J

INNOVATION VILLAGE: On the commercial real estate side at Innovation Village, we continue to market the remaining acreage for development and discussions continue with various users interested in locating at Innovation Village. It is possible we could land a deal for another build to suit in 2018-19 fiscal year, however, much depends on the competitive market we face and the campus administration appetite for another construction project on campus and the loss of temporary parking lots created by them at Innovation Village. It is possible for to Innovation Village will reach 100% occupancy within the projected 10 year period depending on decisions made regarding campus south.

FACULTY/STAFF HOUSING: The program has reached maturity and much will depend on the campus and anticipated hiring of new staff. Additionally, it will depend on the administrations selection of a developer for CPP Campus South property. Should the campus hire a developer that builds a high percentage of housing, our program will not likely grow and may need to re-evaluate its effectiveness.

REAL ESTATE DEPARTMENT: Assuming Campus South is held and the campus engages with the Foundation for the development of the property, it is very likely that the department will need to expand by one or two employees. Should we engage in development of housing along with P3 commercial development, the department will need to grow.

No Continuations


143


INVESTMENTS

144

GENERAL INVESTMENTS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(310,626)Investment Returns 1,225,539 2,302,009 1,991,383

(310,626)1,991,3831,225,539Total Revenues 2,302,009


20,032Other 99,320 133,422 153,454


20,032133,42299,320 153,454Total Expenses

Net Income 1,126,219 2,168,587 1,837,929 (330,658)


145





GENERAL INVESTMENT PORTFOLIO

We are forecasting the general investment portfolio to generate a net surplus of $2.2 million and have a value of $61.0 million by June 2018. The forecasted gain on equity for the remainder of the year is 4.6%; annual gain on alternatives is 4.3%; dividends is 1.54%; and interest is 2.84%. Forecasted additions to the portfolio include a total of $1.0 million in March 2018 and $1.0 million in May 2018. Distribution of the yield (interest) to the programs and scholarships is $520,500. Total investment fees are forecasted to be 23 basis points (20 basis points to Graystone Consulting and the balance to third party account managers). The Foundation's administrative fee is 50 basis points off the yield (interest). We are forecasting the Private Equity in Commonfund to generate a net surplus of $90,268.

The proposed budget for the General Investment portfolio will generate a surplus of $1.8 million and have a value of $71.5 million in June 2019. The annual gain on equity is 4.6%; annual gain on alternatives is 4.3%; dividends is 1.54%; and interest is 2.84%. Additions to the portfolio include a total of $8.3 million: $4,283,177 in July 2018, $1.0 million in September 2018, $1.0 million in October 2018, $1.0 million in February 2019 and $1.0 million in March 2019. Distribution of the yield (interest) to the programs and scholarships is $520,500. Total investment fees are forecasted to be 23 basis points (20 basis points to Graystone Consulting and the balance to third party account managers). The Foundation's administrative fee is 50 basis points off the yield (interest). The proposed budget for the Private Equity in Commonfund to generate a net surplus of $90,264.

146

ENDOWMENTS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(5,108,826)Investment Returns 4,619,675 11,095,997 5,987,171525,189Other 512,000 286,815 812,004

(4,583,637)6,799,1755,131,675Total Revenues 11,382,812


393,625Other 3,779,422 3,889,552 4,283,177



52,343Administrative Fees 430,335 434,869 487,2128,643Other 140,067 195,525 204,168


454,6114,519,9464,349,824 4,974,557Total Expenses

Net Income 781,851 6,862,866 1,824,618 (5,038,248)


147





Endowment Activities

The forecast is projected to generate a net surplus of $6.9 million due to market performance. The endowment portfolio's value is forecasted to be $103.0 million as of June 2018. Working with our investment advisor at Graystone Consulting, a division of Morgan Stanley, we have forecasted a gain of 4.6% for the equity portion of the portfolio (excluding dividends) and a gain of 4.3% for alternatives for the remainder of the year. Annual dividends are forecasted to be 1.51% and interest returns to be 4.36%. Total investment fees are forecasted to be 20 basis points (10 basis points to Graystone Consulting and the balance to third party account managers). There are two internal fees charged per Policy # 133, a 5% fee on all donations and 0.75% fee for administration (excluding any terms specific to an endowment). Donations are forecasted to be $280,429 per the Division of Advancement. A distribution of $3,889,552 was made in July 2017.

The proposed budget generates a surplus of $1.8 million mainly due to portfolio returns. The endowment portfolio's value is projected to be $105.0 million as of June 2019. Working with our investment advisor at Graystone Consulting a division of Morgan Stanley, we have proposed an annual gain of 4.6% for the equity portion of the portfolio (excluding dividends) and an annual gain of 4.3% for alternatives. Dividends and interest are proposed to return 1.51% and 4.36% respectively. Total investment fees are forecasted to be 20 basis points (10 basis points to Graystone Consulting and the balance to third party account managers). There are two internal fees charged per Policy # 133, a 5% fee on all donations and 0.75% fee for administration(excluding any terms specific to an endowment). Donations are projected to be $800,000 per the Division of Advancement. We anticipate a $4.3 million endowment earnings distribution in July 2018.

148

OPERATING BUDGETS ENTERPRISES

149

ENTERPRISE OPERATIONS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

110,441Other 627,276 618,170 728,6111,843,979Sales 42,536,486 42,154,779 43,998,758

1,954,42044,727,36943,163,762Total Revenues 42,772,949

Cost of Goods Sold

(142,835)Cost of Goods Sold 13,620,292 13,492,756 13,349,921

(142,835)13,349,92113,620,292Total Cost of Goods Sold 13,492,756


(7,900)Utilities 1,184,616 1,187,648 1,179,7483,798Insurance 184,510 189,360 193,158

170,777Repairs & Maintenance 854,149 914,871 1,085,648(2,046)Meals & Refreshments 10,368 22,823 20,777

(40,006)Postage & Freight 48,042 48,712 8,70616,704Advertising 68,776 69,880 86,5841,065Rent/Commissions 544,818 575,085 576,150

23,565Services 808,101 822,134 845,699(3,202)Supplies 1,055,039 1,047,647 1,044,445

7,768Telephone 448,061 456,825 464,593700Travel 35,807 44,012 44,712

4,918Laundry 253,903 263,208 268,126(16,179)Other 179,095 217,139 200,960



106,499Administrative Fees 2,794,125 2,693,537 2,800,03638,912Depreciation 2,797,793 2,574,125 2,613,0378,268Interest Expense 893,547 860,676 868,944

(21,093)Rent/Commissions 658,982 663,339 642,24637,568Bank Card Fees 524,416 538,839 576,40737,198Other 680,240 650,554 687,752

207,3528,188,4228,349,103Total Expenditures- Non-Controllable 7,981,070

Labor Costs

948,325Salaries & Wages 8,785,802 8,866,315 9,814,640339,695Employee Benefits 2,570,644 2,399,067 2,738,762

1,288,02012,553,40211,356,446Total Labor Costs 11,265,382

1,512,49838,598,55239,001,127 40,111,050Total Expenses

Net Income 4,162,634 4,174,397 4,616,318 441,921

150

Bronco Bookstore9,650,725

22%

Dining Services22,270,680

50%

KW Hotel & Conference Center

1,914,874 4%

University Village10,891,090

24%

Enterprise Proposed Budget Revenues2018‐2019

151


BOOKSTORE

152


BUSINESS PLAN

BRONCO BOOKSTORE

APRIL 2018

2018-2019

153

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


154

BRONCO BOOKSTORE

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

53,579Other 163,500 157,421 211,000(87,190)Sales 9,533,120 9,526,915 9,439,725

(33,611)9,650,7259,696,620Total Revenues 9,684,336

Cost of Goods Sold

(253,597)Cost of Goods Sold 6,651,172 6,897,880 6,644,283

(253,597)6,644,2836,651,172Total Cost of Goods Sold 6,897,880


3,688Utilities 66,060 56,900 60,588Insurance 12,181 12,181 12,181

4,767Repairs & Maintenance 30,614 25,033 29,8002,400Meals & Refreshments 2,400

(40,500)Postage & Freight 44,100 46,500 6,0005,045Advertising 10,250 10,255 15,300

(7,006)Rent/Commissions 11,680 11,806 4,80067,040Services 56,550 35,360 102,40025,754Supplies 37,955 33,166 58,9205,400Telephone 18,000 13,800 19,200

(1,200)Travel 1,200 1,200(1,648)Other 15,148 12,848 11,200



(16,465)Administrative Fees 638,988 554,489 538,02424,432Depreciation 162,000 142,176 166,6087,258Bank Card Fees 109,627 109,625 116,883

Other 220 220 220


Labor Costs

240,393Salaries & Wages 1,077,625 982,259 1,222,65214,452Employee Benefits 327,084 304,962 319,414


80,2139,250,6609,270,454 9,330,873Total Expenses

Net Income 426,166 433,676 319,852 (113,824)


155



B

Bronco Bookstore is on forecast and all indications are that net income for 2017-18 will meet or exceed budgeted net income. Overall revenue is 5% lower than YTD budget, but 1.5% ahead of last year due largely to increases in commissions and increased sales in food, gifts, and technology. Course materials revenue YTD is about 10% lower than budget but basically even with 2016-17, and units sold/rented were actually up about 1% at the end of January compared to last year. In technology classes computer/hardware sales are up $35K from last year,while sales in software/accessories category are down about $20K, gross margin for the combined categories is up $13K so far year to date. Sales in gifts and soft goods general merchandise are strong, though apparel sales are somewhat behind budget & last year, gifts are $33K ahead. The biggest promotion period for those categories is coming up with commencement season so we expect to end the year at over $1.5 million in sales in these two combined categories. Expenses have mostly been in line with projections, labor is running $17K over budget and $46K over last year, the two main factors leading to this are the increase in minimum wage and increased student/part-time labor used for re-merchandising the downstairs during the summer remodel. We will be focusing on this area for the remainder of 17-18.

In FY 2018-2019, Cal Poly Pomona will be converting from the quarter system to a semester system. Expected revenue has been moved to correspond to the new semester time line. The fall term will be starting a month earlier and we will reduce from 3 peak revenue periods to 2, with each of those peaks being approximately 33% larger than the previous quarter rushes. The compression of the summer quarter to a single 5-week session and related Orientation programming changes will impact soft goods and gifts revenue early in the year We budgeting for net revenue for the fiscal year 2018-19 to be 3% of total revenue which is consistent with past performance. Revenue from course materials sales/rental is budgeted to decrease slightly due the shift to lower cost/margin options, but there are some indications pricing pressures from online marketplaces may be stabilizing. However, the state and federal focus on affordability along with student price sensitivity will still be primary drivers in this area. As print sales decrease and rentals market share increases, it will still be important to pursue higher margin sourcing strategies for used print books. Success in this area will depend on timely faculty adoptions. Programs such as Instant Access and other new business models may offer opportunities to maintain or increase the store's course materials market share but will decrease both the stores gross margin dollars and costs inherent to shipping and storing high value inventory. The Bronco Bookstore will continue to seek ways to collaborate with faculty, students, campus partners, publishers and digital providers in search of better ways to offer value to students and the campus community. GM sales and margins should hold steady. Commencement merchandise sales may decrease slightly in the first year on the semester calendar, but we expect to offset that with more time to do creative promotions and programming in store. We will also continue to pursue partnerships with Athletics and ASI to promote student engagement with Bronco Gear. Food and beverage and healthy/beauty sales should also increase with their new position and expanded offerings. We have forecast some in range salary increases and are accelerating the state mandated minimum wage for all full time staff to $15/hour. Additionally, we are moving all full time staff to a minimum of CPPF salary grade 6. This is necessary to ensure we do not fall too far behind market salaries and to maintain a highly experienced team that provides high value and service to the Cal Poly Pomona community.

156





C1. Potential expansion of "Instant Access" course materials fee pilot program, subject to administrative approval. Scaling this program up will require automation of data interfaces between the university and bookstore systems. 2. Potential pilot to allow students to charge purchases at the bookstore to their student financial aid.

Phase two of our downstairs remodel involves the following: 1) new flooring to both modernise our look and to replace stained and worn out carpet. 2) new lighting to both make the store brighter and more inviting but also significantly decrease our electricity use. Estimated savings are $127,489 over 10 years. this represents both electricity use and replacement bulb costs.

3) POS upgrades to maintain an aging system

We are requesting to add 1 full time position to handle increasing e-commerce business and improve operations in course materials.

Next 3 years: Semester conversion will reduce major sales peaks from 3 to 2, but should also give more time for evaluating KPIs and adjusting strategies. With the first floor remodel complete we will continue to refine GM product mix and inventory levels and look for opportunities to plan promotions and programming. Moving the Instant Access program from pilot to full program and scaling it to more courses will require increased collaboration with campus partners including IT, Student Cashiers and Academic Technology. Course materials margins will be squeezed by Instant Access and other digital programs but the expectation is that they should preserve net revenue through dramatically increased market share. Additionally new collaborative relationships with campus stakeholders may pave the way for improved student experience in purchasing materials if they can charge to student account/financial aid. As digital and OER options become more prevalent, it may be necessary to reconfigure the upstairs sales floor and operations area due to stocking fewer physical books but needing to manage customers' increasing use of e-commerce throughout the year.

157



D

Explore new revenue opportunities and potential products/services Suzanne, Clint ongoing

Review cost of goods margins monthly to maintain accrued budget Suzanne, Clint monthly

E-Commerce- look for strategic partnership opportunities and additional product opportunities Suzanne, Clint, Brian ongoing

Continue to monitor labor and optimize budgeted hours All dept. managers monthly

Expand campus awareness of digital options through the bookstore, add new vendor partnerships Suzanne ongoing

E-Commerce continue to streamline process and enhance customer experience Kevin ongoing

Continue to maximize textbook rental rebates Kevin by semester

Evaluate Inclusive Access scaling options and improve billing reconciliation process Suzanne August 2018

Pursue ICBA and other industry awards/recognition Clint, Suzanne, Marketing ongoing

Provide leadership in university's Affordable Learning initiatives Clint, Suzanne ongoing

Pursue opportunities to develop new course materials bus. models i.e. Inclusive Access Suzanne, Clint ongoing

Review ROI of strategic partnerships with major vendors (Nebraska, Apple, etc) Clint, Suzanne ongoing

Evaluate future store technology needs/trends (POS system, web, mobile, etc) & review availalbe solution Clint, Suzanne

158



Challenges

EThe Bronco Bookstore, of Cal Poly Pomona Foundation, Inc. will provide a complete range of bookstore products and services to support the University community in meeting their academic and individual needs in a fiscally responsible manner, with a commitment to service excellence. VISION STATEMENTBronco Bookstore will be the most important resource supporting the Cal Poly Pomona campus community, with a commitment to quality service and strong relationships with our customers. ETHICS STATEMENTThe Code of Ethics for Bronco Bookstore stipulates that all vendors and business partners must adhere to local, state or federal fair labor and safety laws and practices. The Bookstores’ code prohibits the use of forced, convict, child or indentured laborers, either by a vendor or business partner or the source of their goods and services. Bronco Bookstore reserves the right to cancel orders, return merchandise, and/or terminate business dealings with vendors and business partners who violate these Ethics.

Reputation for efficient and speedy service Pleasing and inviting shopping environment, well organized store Appealing non-text product mix Provide requested academic merchandise on time Financially prudent good inventory mangement, lean operation Campus Partnerships (DRC, AL$ Orientation, Athletics, Alumni Affairs) Departmental teamwork, experienced & knowledgeable staff

Campus perception that store is overpriced or unfair monopoly Balancing course materials affordability pressures with net revenue performance expectations Balancing inventory risk/opportunity ration (risks of out-of-stocks vs. risks of excess inventory & writeoffs) Industry/CSU System Developments - OER grants, Zero Textbook Cost programs, publishers pushing direct links, etc. Technology- POS/web capabilities vs. increased customer expectations for mobile/omnichannel Outreach/marketing - limits on emails and use of other technology make it hard to reach customers Need for staff development/mentoring for FT and students to ensure we're getting most value for labor dollars Minimum wage increases outpricing entry level wages

159

Customer Survey

Employee Survey FThe Bookstore did not conduct an employee survey this year

The bookstore did not conduct a customer or faculty survey in 2017-2018. We plan to introduce a new survey tool, focus groups and other evaluation tools in Fall 2018.

Bronco Bookstore did participate in the 2017 Independent College Store Research survey for financial benchmarking. Due to differences in how different types of stores classify merchandise and report sales, benchmarking can be difficult to rely on at the detail level, however, Bronco Bookstore's "gross margin return on investment", which is a measure at how efficient we are at converting inventory to revenue, was ranked 2nd of all the stores in the survey.

160

Keys to Success

Corporate Culture



G

Campus Partnerships/Communication (Faculty/Students/Staff) 10

Course Supplies and Materials on Time 10

Effective Marketing/Branding (Store Perception) 9

Exceptional Customer Service 10

Staff Development/Knowledge 9

Current in Regards to Technology (Infrastructure/Course Content) 9

Control Operating Costs (Expenses and Labor) 8

Stay Responsive to New Markets/Products/Services 8

Remain Competitively Priced 9

Maintain Appropriate Inventory 9

Merchandise Selection 9

Stay Responsive to Customer Wants/Needs/Expectations 9

High Margins/Overpriced/"Gouging" Net Income Meeting Budget Requirements

Not part of Campus, just like outside corporations Campus Partner

Profit Oriented Service Oriented

Efficient Operation Efficient Operation

Knowledgable and Helpful Staff Knowledgeable and Helpful Staff

Not Enough Operating Hours Open to Meet Customer Needs

Inconvenient Customer Parking Inconvenient Customer Parking

161



H BUSINESS CONTROLS VITAL FACTORS P&L Reviews Quarter Opening Revenue Compared to Budget/Prior Year 30 Day Goals Net Profit/Loss Compared to Budget Semi Annual Business Plan Report Inventory Turns/Levels Compared to Industry Average Strategic Plan Sales per FTE Compared to Industry Average Inventory Levels/Margins Inventory Margins Compared to Budget Departmental Labor Reviews Percentage of Labor to Sales New/Used Book Ratio Operating Expenses Compared to Budget

Physical Safety and Security 1. Fire, life, safety, intrusion systems, smoke detector systems maintained and tested All fire and alarm system that were inspected were up to date. Completed tests with the Police department to ensure fire and safety alarms were communicating correctly. 2. Safety devices in place and maintained. Received inspection and posted permit for air tank in the HVAC room. Data Security 1 The primary system server is now located in Bldg. #55 and maintained by MIS. Received documentation confirming emergency system replacement within 24 hours.

162

Proposed: Operations & e-

commerce Assistant

PT Supplies Associate -Marcia

McGovern

Book Manager-Kevin Jensen

Faculty orders coordinator-

Stacie Shellner

Student associates -

ecommerce (4-5)

PT clerical/textbooks AP assistant

Teresa McGraw

Student Associates - textbook

counter, receiving/stocking (8-12)

Book Dept. Customer service

associate - Stephanie Rowen

Textbook Receiving Associate -

John Amador

Technology Buyer Marcelo Masur

GM Buyer Elizabeth Soria

Buyer assistant - Christopher

Palm

Student Associates (6-

10)

dock receiving/Gm

merchandising- Sue Lucero

Assistant Director, General Merch. - Brian

Fetterman

Bronco Bookstore 2018-2019

Organization Chart

Senior Assoc. Director -

Suzanne Donnelly

student asst.

PT A/P entry Cheryl

Peters

Accounting Office - Stella

Merritt

Store Director Clint Aase

Operations/Customer Service -

Nancy Herrera

Student/part-time cashiers

(10-60)PT cash room Kelly

Luu

Organization Chart

I

163

Continued -

Continued -

J

New student housing and dining commons coming online in 2019 will increase student traffic on our side of the campus, and we should be able to capitalize on that with events and promotions and increased collaboration with both UHS and Dining Services. 4-10 Years Store systems will also need to stay current with customer expectation for both in-store and online shopping and interaction. Significant reinvestment in POS, customer relations, inventory management and mobile e-commerce technology infrastructure will be crucial to maintaining standards of customer service and store performance in the "omnichannel" retail environment. The store will need to devote resources to succession planning and staff development to ensure smooth transitions as current key staff begin reaching retirement.

No Continuations


164

OPERATING BUDGETS

ENTERPRISES

DINING SERVICES

165


BUSINESS PLAN

DINING SERVICES

APRIL 2018

2018-2019

166

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


167

DINING SERVICES

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

32,332Other 336,476 341,299 373,631738,854Sales 21,019,097 20,999,593 21,738,447

771,18622,112,07821,355,573Total Revenues 21,340,892

Cost of Goods Sold

110,762Cost of Goods Sold 6,969,120 6,594,876 6,705,638

110,7626,705,6386,969,120Total Cost of Goods Sold 6,594,876



(14,877)Repairs & Maintenance 287,130 257,563 242,686(4,810)Meals & Refreshments 2,743 15,637 10,827(1,092)Postage & Freight 2,496 1,092

7,286Advertising 46,068 47,794 55,0807,012Rent/Commissions 526,449 557,220 564,232

(55,512)Services 409,397 472,836 417,324(43,467)Supplies 831,483 851,418 807,951

1,623Telephone 66,410 70,271 71,8944,250Travel 25,157 32,712 36,962

230Laundry 117,898 133,105 133,335(10,406)Other 17,935 38,873 28,467

(100,766)2,811,8912,769,727Total Expenditures- Controllable 2,912,657


43,102Administrative Fees 1,388,956 1,396,095 1,439,197(85,827)Depreciation 539,585 514,479 428,652(21,693)Rent/Commissions 653,333 663,339 641,646

19,512Bank Card Fees 282,690 305,541 325,05339,858Other 494,295 445,510 485,368

(5,048)3,319,9163,358,859Total Expenditures- Non-Controllable 3,324,964

Labor Costs

455,441Salaries & Wages 5,609,723 5,912,367 6,367,808336,215Employee Benefits 1,513,939 1,381,623 1,717,838


796,60320,126,48720,221,369 20,923,090Total Expenses

Net Income 1,134,203 1,214,405 1,188,987 (25,417)


168



B

Residential Dining operations (UHS) form the financial foundation to Dining Services Housing (40% of Dining Revenue) and Retail operations (47% of Dining Revenue), while Kellogg West Dining (13% of Dining revenue) is supported primarily by UBI activities, providing a diversity of revenue streams to weather a variety of economic scenarios. This year, a decrease in resident meal plan participants of ~4% will translate into to ~$397k decrease in forecast board revenue to budget at the resident dining operations. While moderate overall enrollment increases support our retail operations and allow us to provide additional services to meet the needs of the Cal Poly Pomona community, Kellogg West Dining continues to increase off-campus revenue at a rapid clip, primarily from UBI wedding activities. The continued escalation of the minimum wage (9% increase 1/1/18), and pent-up inflationary pressures continue to cause us to focus on operational efficiencies to mitigate price increases to our customers. Both of these elements are considered in our current year budget. Dining overall is forecast to end up at $21.5 million in revenue, $34,431 behind budget with a surplus of $1.2 million, or $94,647 ahead of budget. Resident Dining operations consisting of Los Olivos, The Den, and Vista Market operations are forecast to end up at $8.6 million in revenue, about $161k short of budget with a margin of a little over $1 million, or $168k ahead of budget. Retail Operations are forecast to end up at $10.1 million in revenue, about $163k short of budget with a margin of $653k, missing budget by $315k. Kellogg West Dining is forecast to end up $290k at ahead in revenue @ $2.77 million vs. budget of $2.48 million. Net margin expected to hit nearly $280k vs. budgeted net of $138k exceeding budget by over $141k. (See Contunutations)

Effect of CPP Semester Conversion from Quarters to Semesters: We will be starting the academic year a month earlier with an additional 3 weeks of non-productive time over the 18-19 holiday season. The compression of the summer quarter to a single 5-week session and related Orientation programming changes reduced budgeted Dining revenue by $240k, primarily in retail operations in the Bronco Student Center. These assumptions have been captured in our 18-19 budgets.

We used enrollment and class schedule data to develop our budgeting assumptions. We are seeing the M-F class schedules tracking nearly identically in the upcoming fall semester when compared to the previous fall quarter.

Dining overall is budgeted at $22.3 million in revenue, about $756k ahead of 17-18 forecast with a margin of $1.2 million, or $38k lower than 17-18 forecast.

Resident Dining operations are budgeted conservatively @ 90% occupancy given an enrollment strategy is not yet clear and occupancy currently stands at 93%. To maintain pricing and limit expenses in the face of CSU tuition increases, we budgeted a conservative 3% increase in board rates. We are budgeting $8.4 million in revenue, about $266k less than 17-18 forecast with a margin of $909k, $143k less than 17-18 forecast. Retail Operations are budgeting $10.7 million in revenue, about $826k more than 17-18 forecast with a surplus of $679,592 versus a forecasted surplus of $494,903. Retail revenue increase is driven primarily by: Edison Starbuck's ($230k), Peets/Freshens rebrand to Starbuck' s @ BSC ($200k)(MP), Brewing Education Program ($130k), Fresh Escape @ CCMP ($60k)(MP), Beer Distribution @ IBW ($80k) as well as organic growth in other retail operations. Kellogg West Dining is budgeting $2.98 million in revenue, or $211k ahead of 17-18 forecast, and $317k in net, or $38k more than 17-18 forecast. We have forecast some in-range salary increases in FY 17-18, and are accelerating the state mandated minimum wage for all full time staff to $15/hour in our 18-19 budget by moving all full time staff to a minimum of CPPF salary grade 6. This is necessary make sure we do not fall to far behind market salaries, begin to address salary compression issues, and to maintain a highly experienced team that provides high value and service to the Cal Poly Pomona community.

169





CItems indicated with "MP" are aligned with our board-approved Dining Master Plan 2017-2022. Starbucks WPS @ SCE, Peets/Freshen's rebrand to Starbuck's @ BSC (MP), Launch of our Brewer's Assistant beer education program, refresh of Pony Express @ CLA (MP), relaunch of solar coffee cart to serve CLA replacement building, moderate furnishings refresh of Faculty Staff cafe, opening of Starbuck's at SCE. Tapingo Mobile food ordering program at 20 dining locations (MP) Capital Equipment management program (Manger+) will assist us in managing our current and future capital equipment maintenance, warranties, and replacement. C-Store POS EDI and Resident Dining Menu Management EDI implementation (MP) will streamline ordering, receiving, inventory, and vendor payments. Lobby Shop at Kellogg West will provide 24/7 food and beverage service to our guests at KW.

Items indicated with "MP" are aligned with our board-approved Dining Master Plan 2017-2022. End-of-life Vehicle replacement for 3 vehicles (1 van and 2 carts), addition of 1 vehicle for retail catering @ BSC Starbucks WPS @ SCE, Peets/Freshen's rebrand to Starbuck's @ BSC (MP), Launch of our Brewer's Assistant beer education program and expansion of brewing capacity, refresh of Pony Express @ CLA (MP), relaunch of solar coffee cart to serve CLA replacement building, moderate furnishings refresh of Faculty Staff cafe Major refrigeration and Roofing work @ CCMP #97 Electrical PM work @ CCMP #97 in preparation for campus infrastructure initiative Continue work in the area of analytics POS (cash register) and Card-reader EOL replacement Building 97 and 70 (Los Olivos) cost studies Continue work on innovative solutions for LOR (Los Olivos Replacement) (Biometrics, micromarkets, Card Access POS, Analytics, etc.)

Dining services is requesting a total of 3 positions: 1. Fresh Escape Supervisor 2. Starbuck's @ BSC Supervisor- to oversee the implementation of the Starbuck's/Food conversion at BSC as recommended by the 2017 Dining Master Plan. 3. Starbuck's @ SCE- 500 sf Cafe serving our tenants at SCE with coffee, food, and Catering as approved by the Foundation Board in 2016. 4. Brewing Education Coorinator: Will coordinate the growing educational aspect of Innovation Brew Works with the College of the Extended University (CEU). The doubling of the size of the Dining Division from $11 million in revenue in FY 09-10 to a budgeted $22 million in 2017-2018, in context with anticipated 32% growth over the next 5 years to $29 million

Scheduled to open in Winter or Fall of 2020, a new 680 seat dining facility will serve an additional 980 freshmen housed in newly constructed resident halls. Combined with the Administration Replacement Building (ARB), a significant change in both foot and vehicle traffic patterns will occur. We are undertaking a number of studies this year to assess the Campus Center Marketplace for renovation activities, and the soon to be vacated Los Olivos facility for potential UBI activities. Development of outdoor space for seating between Bookstore and BSC. These studies will be undertaken in the context of the current approved Dining Master Plan. As plans for the Lanterman and Innovation Village properties unfold, Dining Services will be engaged throughout the process. Further development of Kellogg West with an eye to educational collaboration and vocational program development.

170



D

Development of Dining HR Specialist Dining Director/ES Director

Capital Equipment maintenance project (Manager+) Dining Procurement Manager

CBord Fusion Food Production System (MP) Dining Systems Coordinator

Los Olivos Replacement (LOR) Planning (MP) Dining Director/UHS GM

Meal Plan Model Implementation Dining Director/Bonco Bucks Mgr

CCMP Building Analysis and preliminary conceptuals Dining Director/FDN Facilites

Los Olivos Repurposing study Dining Director/UHS GM

Change out of Peets/Freshen's to Starbuck's Food Concept @ BSC (MP) BSC Manager

Continued develpment of analytics tools Dining Director/IT Director

Mobile Ordering Intiative (MP) CCMP Manager

171



Challenges

EOur Mission: To deliver exceptional food services to nurture and give back to the Cal Poly Pomona community.

High Five Context

• We create opportunities for growth & development that will create enthusiastic and ambitious team members.

• We develop a culture of commitment where people are open, honest, reliable and caring. Our people feel safe and seen.

• We are committed to providing training and support for all of our team members.

• We are committed to a culture that promotes bold creativity, taking ownership of opportunities and driving solutions.

• We are committed to a culture that views occasional mistakes as opportunities for learning.

Solid food safety and inspection record; Variety; convenient locations - Listening to customers and responding (surveys, comment cards, web feedback, etc.); Technological and operational innovation; lean operations, varied backgrounds and experience; relationship with and support of campus community; support of mission- Student Scucess and student employment; Campus Catering; Presidential Order on Use of Foundation Services & Central Support Resources; increased enrollment and operational efficiencies driving retail and board revenues

Minimum wage increases outpricing entry level wages; Campus perception of Presidential Order on Use of Foundation Services & Central Support Resources; perception of "unhealthy" offering; rapidly evolving Technology-POS/reporting systems; exceptionally lean supervisory structure; development of effective training; development of ongoing in-unit training; aging infrastructure at CCMP and Los Olivos; cleanliness of dining rooms/areas; campus requests for additional unprofitable "micro-operations". Continuing demands for PCI compliance, credit card issuers placing fraud liability on merchants.

172

Customer Survey

Employee Survey F-No employee survey conducted with dining this year

Our annual NACUFS survey was completed last fall, and the results returned in late February 2017. There were 1,770 surveys completed of which 83% were students, 15% were staff, and 2% were faculty with a 63/36 ratio of female-to-male respondents, 1% of "other identity". 29% live on campus. 31% were freshmen. 11% Sophomore, 27% Juniors, 24% Seniors, 4% Graduate, 3% "Other". A detailed analysis of the results is still underway, and a full report will be presented to the Foundation Board in Spring of 2018. We will be drilling down into the areas of least satisfaction which include availability of seating, value, nutritional content, and freshness. We will use this information to direct our efforts to improve our operations moving forward.

173

Keys to Success

Corporate Culture



G

Create opportunities for growth & development that will create enthusiastic and ambitious team members 10

Develop a culture of commitment where people are open, honest, reliable and caring. People feel safe and seen 10

Commitment to providing training and support for all of our team members. 10

Commitment to a culture that promotes bold creativity, taking ownership of opportunities and driving solutions. 10

Committed to a culture that views occasional mistakes as opportunities for learning. 10

Customer Focus 10

Staying abreast and ahead of trends- Be the innovation leader 10

Challenge the Status Quo 10

Quality 1-1 Time with supervisors and staff 10

Meeting or exceeding Financial Goals 10

The Health and Well-being of our staff and customers 10

Celebrating Success 10

Take calculated risks 10

Balancing financial performance and economic sustainability with service expecations

Expensive At-or-below local marketplace, we create value

Unhealthy The offering is available but rarely sells

Not enough facilites open when I want service Balancing financial performance and service

Not planet-friendly Our story isn't well-told.... And we have a great story!

174



H1) Establish KPI's (MPLH or SPLH) labor goals for each operation that can be measured daily/weekly against actuals 2) Provide leadership training opportunities for key staff 3) Set measurable annual goals with each operating unit that tie in to the overall goals of the division, providing frequent feedback on progress throughout each operating period 4) Provide closer supervision of frontline supervisors by management 5) Work toward analytical tools to assist in predicting the future instead of looking back to see how we did (Tableau initiative) 6) Cashier Audits 7) Continue to monitor product cost & adjusting purchasing patterns and pricing on a constant basis.

In Dining Services, we have several areas where Asset Protection and Risk Management play a significant role. Looking at Corporate Assets, Dining Services has several: Food, Liquor, Beer, Wine, Cash and equipment to mention a few. Developing web-based assessment tools for safety (Touchwork) Areas that we have implemented based on the risk management assessment : Los Olivos: Improvement in employee locker security, building perimeter, building egress, safe combo, authorized drivers, ensuring that current insurance and indemnification language are in all new contracts, data security procedures are in place. CCMP, C-Stores & Starbuck's: Provide employee lockers, Provide employee training of E Phone, Repaired Fire Alarms, Video system, Fire extinguisher training for staff, facilities repairs, staff training by Employment Services,

KW Food and Beverage: replaced walk-in doors, Improve employee locker security, provide staff training for safety protection equipment, repair safety locks on walk-ins, improve security of safe combo, staff training of check and credit card acceptance per FDN policies. PCI and Level 1 data training have taken place at various supervisory and front line staff levels as appropriate. IBW- Prevention training, alcohol service training, inventory

175

Organization Chart

I

176

Continued -

Continued -

J

In FY 17-18, we completed a reorganization of management to effectively align our resources with anticipated significant future growth associated with the Los Olivos replacement project (see Overview of Proposed Fiscal Budget for detail). We also began implementation of recommendations from our Dining Master plan approved by the Foundation Board in Fall of 2017. These Dining Master Plan initiatives include: 1. Implementation of a Food Management System to bring innovative recipe and menu management along with significant cost savings to the Los Olivos Replacement Facility 2. Move away from the Sodexo procurement system using the cost savings to support a Dining Procurement manager to oversee the nearly $8 million in purchasing power of Dining Services. 3. Enhance the offering at ENV Cafe- We refreshed this cafe with a new look, leveraging our new C-Store vendor to pay for the new look. The result is a 40% increase in revenue YTD February 2018.

4. Online Ordering: On 3/26/18, we launched Tapingo, a mobile ordering program at 20 of our Dining locations. Though we have not budgeted any lift in revenue in 2018-19, other campuses have shown a minimum of 20% increase in revenue at retail locations participating in this program. Future enhancements will include a food delivery module that has proven effective at large campuses such as ASU.



177


KELLOGG WEST CONFERENCE CENTER & HOTEL

178


BUSINESS PLAN

Kellogg West Conference Center & Hotel Rooms, Conferences & Sales

APRIL 2018

2018 - 2019

179

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


180

KW CONFERENCE CENTER & HOTEL

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

49,598Sales 1,693,185 1,865,276 1,914,874

49,5981,914,8741,693,185Total Revenues 1,865,276


(43,175)Utilities 97,525 133,234 90,0593,285Insurance 25,399 27,352 30,637

56,291Repairs & Maintenance 113,655 141,175 197,466(187)Meals & Refreshments 600 1,387 1,2001,586Postage & Freight 846 520 2,1064,411Advertising 5,908 3,133 7,544

849Rent/Commissions 3,929 3,389 4,23812,558Services 237,107 228,986 241,5443,711Supplies 78,403 77,845 81,556

(55)Telephone 37,251 38,354 38,299300Travel 300

4,688Laundry 135,455 129,353 134,041(5,048)Other 9,312 25,001 19,953



2,977Administrative Fees 101,592 111,917 114,89413,117Depreciation 36,888 53,328 66,445

Rent/Commissions 5,0498,192Bank Card Fees 25,399 26,275 34,467(154)Other 1,054 900


Labor Costs


(5,307)779,064728,130Total Labor Costs 784,371

58,0391,786,6741,642,448 1,844,713Total Expenses

Net Income 50,737 78,602 70,161 (8,441)


181



B

Through the first 7 months of the 2017 - 2018 fiscal year Kellogg West Rooms & Conferences revenue is up $53K over budget but down $93K from prior year. YTD expenses as a percentage of revenue are 3% lower than budgeted despite higher costs (including higher labor costs) and YTD actual net income is double YTD budgeted net income ($51,307 -v- $24,796). 2017-2018 EOY net income is forecasted to come in at or about $80K.

Kellogg West is budgeting that meeting/conference demand and revenues as well as hotel revenues will continue to increase in 2018-2019 with a continued demand for more affordable facilities that offer excellent service and clean, high quality facilities that meeting planners expect. Also, as has been the case for several years now, Kellogg West continues to see clients who are still seeking out "educational" locations/venues such as Kellogg West. Kellogg West is also seeing a much more competitive College of The Extended University/Global Education Institute focusing on offering training to international professionals from around the world through their Global Education Programs. Their concerted efforts (-especially in the Asian marketplace) have, in turn, produced greatly increased hotel room revenues for Kellogg West due to the many groups brought here for year-round extensive variety of Study Abroad options for students who wish to engage in international or multi-cultural studies .Their efforts have, in turn, opened up other doors and additional Clients (-and additonal hotel revenues) through SoCal Asian tour companies also looking for educational/university locations and venues such as Cal Poly. Controllable Expenses as well as Labor Expenses for 2018-2019 will continue to be tightly controlled and the financial "bottom line" is still the focus.

182





CNo significant changes in programs and services are proposed at this time.

The noticeable capital improvements of the past several fiscal years (hotel guest rooms, hotel lobby, conference center areas, dining room and exterior changes to our Crestview Building) have been very favorably received by all of our Guests and has greatly helped in increasing customer satisfaction and, in turn, increased revenues. This past year's complete renovation of all Bldg 76 & 78b conference center public restrooms (6) and the refurbishment of the Hillside and Woodview interior hallways has made a noticable and favorably received improvement that has made a difference. Over the next fiscal year Kellogg West will be replacing some of the "older and worn-out " meeting room tables so as to ensure that we continue to offer a good product along with our good service. Kellogg West will also be upgrading all conference center meeting room and public area lighting to LED which, will in turn, brighten up all areas as well as save energy and money. Additionally we will also be replacing all parking lot and street lighting with LED lights.

For 2018-2019 there are no changes planned in Staffing.

Demand for "affordable" yet up-to-date modern meeting and training facilities and/or venues in educational/university settings will continue to be high due to continued budget constraints as well as tightly audited "educational location" venue options. In addition to the above demand, will be the continued excellent (-and growing) working relationship with CEU/GEI and the Asian market needs for hotel rooms and venues in an education/university setting.

Other factors which will have an impact on Kellogg West's business over the next three to five years are some of the key issues that have been repeatedly discussed over the last several years. Those are increased competition, the seismic upgrade and, of course, the University Master Plan, all of which could impact Kellogg West.

183



D

Increased sales solicitations & marketing. Sales Managers & KW Director Immediate & Ongoing

Increased participation in Trade Shows Sales Managers Ongoing

Conference Center renovations, equipment updating & replacement KW Director Ongoing

Continue to develop integration of Collins College and Kellogg West KW Director Ongoing

2018-2019 Capital Projects KW Director September, 2019

184



Challenges

EKellogg West has evolved into a business that makes sense financially that will enable us to carry on our long history and valuable partnership with Cal Poly Pomona University and The Foundation. Kellogg West has, and will always, continually strive to provide the highest standards of guest services in, both, lodging and conference services. We will continue providing outstanding service along with the latest technology and resources available to meet or exceed the expectations of our Guests and The University.

With the continued, close scrutiny of how companies and organizations are spending their money, conference centers and meeting locations that are a part of a University or non-profit organization will continue to be sought out as places to hold meetings and avoid negative media or shareholder criticism. Located on the campus of Cal Poly and as a part of the non-profit Cal Poly Foundation, Kellogg West is uniquely situated to provide just such a meeting and conference environment and is marketing itself as such by letting our potential clients know of our non-profit status and giving back to the University thus helping others.

In order to drive increased revenues Kellogg West will have to continue driving increased sales. Kellogg West will also need to continue working as “lean” as we did during the past several fiscal years by doing more with less and doing it just as good. In addition to maintaining the unprecedented savings of these past several years, Kellogg West will need to keeping controllable expenses to absolute “bare-bones” operational necessities. However, the bigger challenge for Kellogg West will be in continuing to make our aging facilities look as good as the service we provide and will continue to provide. New hospitality products continue to become more and more available in our market areas, albeit at a somewhat slower pace. Many "older" (-but much newer than Kellogg West) properties have undergone extensive renovations and, as such, Kellogg West will need to keep making major capital improvements or be left behind.

185

Customer Survey

Employee Survey FKellogg West Conference Center & Hotel employee satisfaction continues to be high due, for the most part, to Management's continued communications to and from employees and also because of the present Director's daily involvement and "roll up the sleeves" work ethics in helping when help is needed. Not to mention that age-old philosophy and practice of treating others as you would want to be treated. -We're a Team and all in this together so that's the way we work. Management has no plans to change this "team work" philosophy, attitude and work ethics.

Customer satisfaction with guest focus areas such as cleanliness, friendliness and courtesy continues to be very high and our overall customer satisfaction and comments (especially with service) continues to be extremely good and a source of pride for all of our employees, at all levels. Guests surveys continue to show that they will likely or definitely stay at this property when they return to this area and that they will likely or definitely recommend Kellogg West to a friend. The recent guest-room renovations have been extremely well received and, almost unanimously, Guests surveys rate Kellogg West's hospitality and now our guest rooms as "meets or exceeds expectations".

186

Keys to Success

Corporate Culture



G

Increased sales solicitations. 10

Market as a unique and affordable meeting alternative to the newer but higher priced conference options 10

Continued capital improvements to overcome guest's perception that property is "getting tired" 10

Increased internet and social network marketing efforts to increase customer awareness of KW 10

Increased focus on education, state associations, religious, medical, government and related business markets 9

More emphasis on KW as a full service conference center and training/educational facility at Cal Poly University 9

Emphasis as a "serious meeting/training environment for businesses and meeting planners facing serious times". 9

Upgrade, update and only offer state of the art conference equipment suited for "tech-savy" conference attendees 9

Service is very good Hospitality and meeting the Guest's needs is always a priority.

Guest rooms and conference center facilities are very nice and very clean New guest-room renovations have made a huge and positive impact.

Facility is hard to find and away from everything Facility is peacefully secluded & away from most city/airport distractions.

Property is not in step with technological needs WiFi is free and available in all areas & A/V equipment upgrades continue

187



H -Daily: Review of Flash Reports which is the snapshot of revenue for the previous day and month do date. -Weekly: Department & Management team meetings, review of pending payment requests, comparison review of expenditures vs. budget, Aging Report update, review of all department schedules and monthly progress of food cost. -Monthly: Goals to Foundation, Financial Statement review process, revenue forecasting (which are also reviewed on a bimonthly basis and Employee of the Month selection -Semi-Annual: Business Plan Update, Fixed Asset analysis -Annual: Budget and Business Plan preparation and presentation Vital factors are primarily (1) Actual Costs compared to budgets and schedules and (2) Occupancy comparisons and analysis (ADR & Rev Par)

1.Installation of video security cameras in multiple exterior and interior locations - Completed. 2.Update of KW Emergency Procedures and manuals - Completed/ongoing and updated annually or as needed. 3. Separation of duties with KW Director - Completed and ongoing with KW Accountant placing orders and Director reviewing/approving. 4. Change safe combinations and keep a record of who has access and knowledge of combination - Completed and ongoing. Record of who has access and safe combination now in sealed envelope in Foundation safe. 5. Yearly risk assessment is completed by the Foundation IT Team on all Kellogg West IT systems. This includes a review/prioritizing of old risks & potential new risks as well as potential "gaps" caused by changing technologies. - Completed and ongoing. 6. Upgrade of KW website to meet and/or exceed ADA requirements has been started and will be ongoing until all requirements are met or as close to being met as possible.

188

Accounting Front DeskHousekeeping

(Contracted Services)Facilities

Laura Elliott Sarah Dortch Jeanette Paredez Sales Manager Sales Manager Accountant

Front Desk Supv. Housekeeping Supv.

(P/T Sudent Asst.)

P/T Hourly Staff P/T Hourly Staff P/T Hourly Staff P/T & Hourly Staff

Kellogg West Conference Center & Hotel2018-2019 Organizational Chart

Conference Services

P/T Hourly Staff

Cameron EdmondsDirector

Sales

P/T & Hourly Staff

Organization Chart

I

189


FOUNDATION HOUSING SERVICES

190


BUSINESS PLAN

Foundation Housing Service

APRIL 2018

2018-2019

191

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


192

UNIVERSITY VILLAGE

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

24,530Other 127,300 119,450 143,9801,158,310Sales 10,097,139 9,588,800 10,747,110

1,182,84010,891,09010,224,439Total Revenues 9,708,250




Postage & Freight 600 600 600360Advertising 6,550 7,300 7,660120Rent/Commissions 2,520 2,520 2,640

33,143Services 472,161 441,700 474,8435,220Supplies 59,750 50,730 55,950

600Telephone 316,800 325,000 325,600(2,650)Travel 7,950 10,100 7,450

Laundry 550 750 750790Other 136,180 139,850 140,640



76,885Administrative Fees 664,589 631,036 707,92187,190Depreciation 2,055,996 1,860,806 1,947,9968,268Interest Expense 893,547 860,676 868,9442,000Bank Card Fees 99,800 90,000 92,000

(2,517)Other 183,000 201,357 198,840

171,8263,815,7013,896,932Total Expenditures- Non-Controllable 3,643,875

Labor Costs



580,3727,271,8447,669,773 7,852,216Total Expenses

Net Income 2,554,666 2,436,406 3,038,874 602,468


193



B

We expect to meet our budgetary goals for this fiscal year. We opened at 100% occupancy and have averaged 98% occupancy for the fall 2017 quarter. At the end of fall quarter we had more move-outs than in past years, mostly due to higher numbers of graduating students this year. We have also had more instances requiring immediate maintenance this year, which has led to an increase in expenses. We continue to manage controllable expenses tightly, to mitigate the possibility of decreased revenue from lower occupancy.

There are no major fluctuations between this year's forecast and the proposed 2018-2019 budget. We are proposing a rental rate increase of 3% to cover inflation and priority maintenance. We are basing our budget on a projected 97% average occupancy rate during the academic year. Major maintenance projects include: replacement of HVAC units in three Phase II buildings, repair of seven Phase II stairwells and railings, replacement of four Phase III boiler tube bundles, replacement of four Phase III storage tanks, gutter cleaning for all buildings, furniture replacement in six Phase I apartments, and replacement of carpet/tile as needed in all phases. We are also proposing the installation of additional Wi-Fi access points to improve wireless service to residents. This summer we plan to close Phase II buildings 210, 220, and 230. Due to the shortened summer because of semester conversion, we are planning for only the most critical maintenance projects. We also have a shorter window to accommodate summer conferences, so we are not expecting much revenue from that area this year. We are projecting 30% occupancy for the summer.

194





CNo major changes in programs or services.

1. Replace HVAC units in three Phase II buildings: 210, 220, 230 2. Repair seven Phase II stairwells and railings 3. Replace four Phase III boiler tube bundles 4. Replace four Phase III storage tanks 5. Replace carpet/tile as needed in all phases 6. Replace furniture in six Phase I apartments 7. Add additional Wi-Fi access points 8. Install solar hot water heater system in five Phase III buildings.* *Solar hot water heater system installation is paid for by a grant from the Southern California Gas Company. Installation will be done by Evolution Building Systems at no cost to the Foundation.

No staffing changes.

In the next three years, we expect a significant need to replace/upgrade the following: furniture in all phases, Phase III boiler tube bundles, Phase II HVAC units, Phase I and II roofs, and stair railings in Phase II. Last year we began a planned, multi-year replacement of apartment furniture that will eventually result in uniform furniture throughout all phases. We are continuing to replace the Phase III boiler tube bundles, which also began last year. Phase I and II roofs will probably need replacing in the next three years. Repair of Phase II stair railings should be completed this summer. Long range items that will need attention four to ten years out include: carpet/tile replacement in all phases, deck rehab in all phases, furniture replacement in all phases, exterior and interior painting of all phases, and roof replacement in Phase I and Phase II.

195



D

Review budgets and goals with managers on a monthly basis Dave ongoing

Train managers and supervisors in interviewing, hiring, discipline, and termination Dave 1/19

Revise and update University Village website Dave/Damien/Alex Hernandez 1/19

Administer annual Residential Experience Survey Dave 2/19

Coordinate professional development sessions and trainings Echelle/Sherry ongoing

Continue development of File Maker applications Damien ongoing

Collaborate with Central IT to improve Wi-Fi service throughout the University Village Damien 1/19

Serve on ATOD committee Echelle/Dave ongoing

Conduct a walk-through for professional staff of utility shut-offs, radio, flashlight, and first aid kit locations Dave/Steve 9/18

Expand fire extinguisher training to include Operations and IT departments Dave/Kyle 9/18

Continue to develop relationships with campus partners: SHCS, Wellness Center, Institutional Risk, etc. Echelle ongoing

Serve on Title IX sub-committees Echelle/Kyle ongoing

Continue to update and improve emergency procedures and planning Echelle/Dave ongoing

Continue collaboration and coordination of Maxient conduct software with SCI and UHS Echelle ongoing

Serve on PolyCARES committee Echelle ongoing

Develop student wellness programs with Tri City Mental Health and Survivor Advocate Services Echelle ongoing

Update licensing/re-licensing timeline for 2019-2020 academic year Sherry/Regina 2/19

Replace HVAC units in three Phase II buildings: 210, 220, 230 Steve/Marlene 8/19

Repair seven Phase II stairwells and railings Steve/Marlene 8/19

Replace four Phase III boiler tube bundles Steve/Marlene 8/19

Replace four Phase III storage tanks Steve/Marlene 8/19

Clean rain gutters for all buildings Steve/Marlene 8/19

Replace carpet/tile as needed in all phases Steve/Marlene 8/19

Replace furniture in six Phase I apartments Steve/Marlene 8/19

Add additional Wi-Fi access points Steve/Marlene 8/19

Install solar hot water heater system in five Phase III buildings.* (SoCal Gas grant, no cost to Foundation) Steve/Marlene 7/18

196



Challenges

EBy focusing on the interpersonal relationships with our residents, we strive to create a safe, respectful and inclusive community where one will find: *Valuable, clean, well-maintained and furnished accommodations. *Active customer service with open and timely interaction. *A dynamic environment working to continually adapt to residential needs. *An educational experience that empowers residents to participate and take ownership of their community.

*quality of staff*financially responsible and profitable*affordable housing*website with online services*student customer focus*quality of student life*occupancy (new and retained)*facilities (flexible design options) and well cared for facilities*comprehensive training program for building staff*24 hour emergency response (maintenance and student crisis)*flexible and responsive approach to "change" and organizational development*transitional skills education*communication between various departments (overall)*students report high satisfaction with the quality of life (overall-Residential Experience Survey)*staff creativity, motivation, professionalism and commitment to the missions of the University, Foundation, and University Village*

*security*general operating costs*maintaining affordable rates*aging facilities*necessary current and future capital projects*student recreation and study space*effective communication of policies, procedures, and general information to residents*residents taking responsibility for their community*maintaining positive and equal relationships with campus offices*University enrollment and retention*

197

Customer Survey

Employee Survey FAn employee survey was not conducted.

The Residential Experience Survey was administered through an outside vendor, Skyfactor (formerly Educational Benchmarking, Inc.) Skyfactor provides national benchmarking data/comparative features. The survey was provided via email to 1248 residents (100% occupancy). 688 residents responded this year.

Following are the major results of the survey: *Overall Satisfaction: 91.9% Satisfaction Rates: *Residents live at the Village due to proximity to campus 94.9%, cost 94.2%, and value 84.2% *Interactions (Positive/Very Positive): Student Leaders 96.5%, Facilities 94.0%%, IT 91.2%, Front Office 92.1%, Mailroom 94.9% *Resident Experience With: Check-In 94.0%, Assignment Process 43.0%, Laundry Room 76.0%, Monthly Cleaning Service 95.5%, Wi-Fi 40.3%, Study Areas 88.4%, Computer Lab 92.7%, Condition of Apartment 88.1% We are very pleased by the responses to our staff and programs by our residents. There were minimal changes, less than a 5% increase or decrease, in satisfaction in most areas. The largest increase in satisfaction was in the area of the Assignment Process (room selection). The largest decreases in satisfaction were in the areas of Wi-Fi and IT. We are currently working very closely with Campus IT to resolve the issue; we also filled the Housing Technology Manager position, which had been vacant for Fall quarter. Overall student satisfaction remains high, with room for improvement. We will continue our efforts to raise the satisfaction levels and respond to the needs our student customers.

198

Keys to Success

Corporate Culture



G

Positive resident/customer relations 10

Safety and security 10

Maintain and improve facilities and services 10

Managing expenses 10

High Occupancy 10

Inclusive community 9

Enhancing technology for residents and staff 9

Positive staff relations 8

Positive relations with University and Foundation colleagues 8

Marketing 8

Positive Customer service oriented

Expensive Fair value

Helpful Caring

Community oriented Familial

Fun Social

Business focused Professional

Inflexible Consistent/Fair

Strict Educational/Developmental

Intrusive Concerned with Safety/Security

199



HBUSINESS CONTROLS *Budget Prep/P&L Reviews*Departmental Meetings*30 Day Goals*Position Descriptions*Individual Supervisory Meetings*Business Plan Preparation and Quarterly Reviews*Incident/Student Conduct Database*Daily Residential Educattion Duty Logs*Review of Pending Disbursement Vouchers*Maintenance Work Orders*Scheduled Property Inspections*Annual Residential Experience Survey*Occupancy Reports*Unit Management Structure VITAL FACTORS Actual to Budget Comparisons*Net P&L Compared to Budget*Occupancy-Retention and New Applicants*Consistency in Policy Implementation*Resident Accountability-Accountability to Residents (License Agreement-Community Standards)*Incident Follow-up*Follow-up to student initiated appeals and grievances.

The Residential Education staff undergoes fire extinguisher training annually; the Operations and IT staffs will be included. All office staff will conduct a physical walk-through of the locations of utility shut-offs, radios, flashlights, and first aid kits.

200

Organization Chart

I

201


FACILITIES MANAGEMENT

202


BUSINESS PLAN

FACILITIES MAINTENANCE

APRIL 2018

2018 - 2019

203

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


204

FACILITIES MANAGEMENT

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed




Insurance 1,800 1,800 1,800800Repairs & Maintenance 3,000 4,600 5,40050Meals & Refreshments 600 250 30090Rent/Commissions 240 150 240

(34,334)Services (368,614) (359,078) (393,412)1,988Supplies 8,640 6,472 8,460

Telephone 8,400 8,400 8,400180Other 120 120 300

(31,226)(368,512)(345,814)Total Expenditures- Controllable (337,286)


Depreciation 3,324 3,336 3,336600Rent/Commissions 600 600


Labor Costs



22Total Expenses

Net Income (2) (2)


205



B

Facilities Maintenance is projecting to end the year on budget. All goals outlined at the beginning of the year will be met.

There should be no significant budget variations in the 2018-2019 budget year when comparing budgets from the current 2017-2018 budget year. One position that was vacated due to a retirement was not filled this year and we plan to keep is vacant for 2018-2019.

206





CThere are no planned changes to services provided this fiscal year.

There are no planned capital requests for 2018-2019.

No planned changes in staffing for this budget year.

Facilities Maintenance continues to review and consider all areas for process improvement and cost control opportunities. During the next year the two key areas to review for improvements include our approach for tracking the purchases and uses of consumable supplies and an inventory system for parts.

Improvement with the use of technology in the delivery of services and basic administration within the Facilities Maintenance function continues. The desired outcomes continue to be providing quicker response times and more complete and timely feedback to those who submit work requests. Within the next 5 years we expect to replace 2 vehicles and possibly 3 with similar type vehicles with a goal to use clean energy vehicles where feasible.

207



D

Evaluate all work flows for relevance and applicability Steve / Marlene / Dave / Sherry 10-15-2018

Complete summer work at Village Steve 9-15-2018

Complete assigned professional development Steve / Marlene 5-1-2019

Evaluate and analyze all services agreement with vendors Steve / Raul / Dennis 9-15-2018

Implement digital system for tracking equipment Steve / Marlene / Dining Svcs 12/15/2018

208



Challenges

EFoundation Facilities Management formed in July 1998: • To support Foundation units by providing building maintenance, equipment management, and custodial services, in a timely, cost effective, and professional manner. • To deliver preventive maintenance programs and technical support to all Foundation units. • To keep critical Foundation services operating at levels required for operational effectiveness. • To provide staff support, training, and to utilize all available resources in its endeavor to deliver timely and cost effective services. • To continue to enhance the professional working relationships between Facilities Management and all Foundation units.

• Strong organizational structure, good employee morale • High levels of job skills with Facilities Management employees • Ability to use contractors or in-house staff to deliver timely and cost effective services • Excellent work order turn-around and very quick response time a majority of the time • Strong centralized team

• Improving communication with customers and staff • Completing large projects in the time frame expected by requestors • Educating customers on the role of Facilities Management in terms of projects versus repairs • Appropriate oversight of outside service provides (i.e.: contractors) • Understanding how to apply technology based solutions to areas in Facilities Management

209

Customer Survey

Employee Survey FNone completed this year.

None completed this year. The last customer satisfaction survey completed in 2013 conducted at University Village of the maintenance staff showed an overall trend of improvement when compared with prior years.

210

Keys to Success

Corporate Culture



G

Quality services delivered by the facilities crew 10

Positive staff and employee relations 10

Thorough and clear communications 10

Fiscal accountability 10

Cross training of all facilities workers 9

Responsiveness 9

Improving core skills sets 9

Setting an appropriate example (professionally) 9

Organizational skills 8

Timely and accurate database information 8

Dependable Adaptable

Important to their success Flexible

The one to contact for emergencies Responsive

Hardworking Helpful

Communications could improve Patient

211



H• Review budget and P&L's monthly, effect adjustments where necessary • Review, prioritize, and respond to work orders daily and throughout each day • Manage services agreements with contractors (e.g. boiler maintenance and HVAC maintenance) • Review, prioritize, and complete projects and 30 day goals • Respond to work orders within 24 hours of request • Implement new work order system • Attend monthly MMHR meeting and deliver updated status report on Facilities Maintenance • Actively participate in scheduled meetings with University Management Team

None completed this year.

212


FOUNDATION FACILITIES

April 2018

Steve WhippieFacilities Manager

General UniversityVillage Maintenance

Workers (5)

Central FoundationFacilities Management

Maintenance Workers &Custodial Staff

Marlene PonceMaintenanceCoordinator


213


BRONCO BUCKS OFFICE

214


BUSINESS PLAN

BRONCO BUCKS OFFICE

APRIL 2018

2018-2019

215

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


216

BB OFFICE

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(15,593)Sales 193,945 174,195 158,602

(15,593)158,602193,945Total Revenues 174,195


51Meals & Refreshments 100 49 100(398)Advertising 1,398 1,000

670Services 1,500 2,330 3,0003,592Supplies 38,808 28,016 31,608

200Telephone 1,200 1,000 1,200Travel 1,500

(47)Other 400 447 400



606Bank Card Fees 6,900 7,398 8,00411Other 2,725 2,413 2,424


Labor Costs

(3,330)Salaries & Wages 100,384 78,770 75,440(4,086)Employee Benefits 43,566 41,066 36,980


(2,731)162,887197,083 160,156Total Expenses

Net Income (3,138) 11,308 (1,554) (12,862)


217



B

The Bronco Card office is funded by the campus community campus using the Bronco ID card, either meal points, board meals or bronco bucks for their purchases. But the main source of revenue for the office are the students board meals. Traditionally, meal plans start strong in the Fall and gradually decline throughout the winter and spring quarters. This year Housing experienced a significant number of cancellations beginning in the Fall quarter. This trend has continued throughout this winter quarter. This has negatively impacted the revenues for the Bronco Card office.

Fewer heads in beds is expected to continue throughout this next fiscal year due to the conversion to semesters and the delay in new student housing until spring of 2020. The board prices will increase by 3% but the impact of fewer heads in beds will outweigh the increase.

218





CThe campus has discontinued the use of "get photo" and dining has discontinued "get food" Although not highly publicized "get food" did bring some focus on the "get" programs. The Bronco Card office is developing a plan to add a "bonus" of bronco bucks with the addition of a @100.00 or more at a time. Dining would benefit by saving the $.07 transaction fee for Freedom Pay and the $.035 transaction fee for credit card usage. Dining has paid over 40k for Freedom Pay over the last 12 months.

N/A

This year the office covered 2.5 full time employees. One of the employees terminated and has not been replaced.

Whether the campus will open a one card office, if it is opened how much of an impact on the Bronco Card office is still to be determined. The card office will continue to operate as it has been operating until further notice.

219



D

Update the Bronco Buck website Bronco Card Office 6/30/18

Work with marketing to promote "Get Funds" Bronco Card Office 6/30/18

220



Challenges

ETo offer the campus community an added value to their campus ID card for convenience and ease in purchasing or accessing the services on campus including: Dining Services, Bronco Bookstore,rent at the Village, tickets at the ASI box office, groceries at the Farmstore or copies at an I&IT lab, Collins School, the Library and College of Agriculture . To create and support a cashless Bronco Card financial transaction system that Cal Poly Pomona customers view as convenient and valued tools to obtain retail campus goods and services.

Student awareness of the campus card. Competition with credit cards. Promotion of Bronco card usage.

221

Customer Survey

Employee Survey FN/A

N/A

222

Keys to Success

Corporate Culture



G

Promotion of the Bronco Access Card usage. 10

Promotion of Get Funds 9

223



H

224


BRONCO CARD OFFICE

Director of Enterprise Accounting /Financial Reporting

Sue Chiazza

April 2018

Systems Specialist (PT to FT)-position shared with Dining Services

TBD

Systems Specialist (PT)Kenton Tse

Office Systems ManagerDonna Bebensee

Senior Managing Director,Chief Financial Officer

David Prenovost

Support to Auxiliary Operations

- Meal Options- Gift Cards- CBORD- Accounting- Bronco Bucks

Organization Chart

I

225

OPERATING BUDGETS SUPPLEMENTAL PROGRAMS

CONTINUING EDUCATION PROGRAMS

226

CONTINUING EDUCATION

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

14,908Other 149,616 70,092 85,000442,350Sales 4,319,818 4,050,685 4,493,035

457,2584,578,0354,469,434Total Revenues 4,120,777




4,800Postage & Freight 9,400 2,400 7,20021,812Advertising 147,506 87,872 109,68466,429Rent/Commissions 61,420 63,955 130,384

(74,723)Services 414,534 491,809 417,086(832)Supplies 113,740 95,668 94,836

630Telephone 5,530 2,800 3,43020,600Travel 103,200 119,500 140,100

(86)Laundry 86(29,688)Other 340,966 335,480 305,792



19,821Administrative Fees 194,465 182,370 202,1918,462Depreciation 51,256 44,502 52,9642,712Rent/Commissions 2,700 4,288 7,000



Labor Costs



295,9943,746,8704,324,414 4,042,865Total Expenses

Net Income 145,020 373,906 535,170 161,263

227

CONTINUING EDUCATION PROGRAMSSURPLUS/(DEFICIT) BUDGET COMPARISON SUMMARYFOR THE FISCAL YEAR

DESCRIPTION

Actual YTD

3/31/172016-17 Actual

2016-17 Forecast

2016-17 Approved

BudgetActual YTD

3/31/182017-18 Forecast

2017-18 Approved

Budget

2018-19 Proposed

Budget

COLLEGE OF EXTENDED UNIVERSITY - Programs283500 Administration 73,973 365,917 113,921 86,471 115,843 73,981 101,286 64,805 461820 Program Development (199,604) (259,504) (272,524) (381,894) (185,645) (284,897) (311,613) (292,520) 283071 Computer Programs - - - - - - - - 283072 Certificate Programs - - - - - - - - 283080 English Language Inst. (6,238) - - - - - - - 283610 Int'l Workshop and Training - - - - - - - - 283620 Quality Management 19,801 11,387 16,881 21,570 19,321 6,717 14,323 7,842 283630 Professional Project Management Program 9,152 6,451 6,763 3,667 33,485 24,897 23,008 22,272 283790 Leadership & Management 21,735 15,763 6,394 7,276 6,856 12,352 8,808 22,258 283060 Start-Up Programs - (54) - - (100) - - - 283076 Geographic Information - - - 114 - - - - 283073 Engeering & Manufacturing 61,494 31,594 30,977 542 168,826 108,184 27,153 156,198 460280 Summer Support @ CEU (435) (1,103) (436) (1,661) (1,163) 262 (981) (1,004) 460920 Business Comm & Grant Writing 1,321 517 - - 15,492 7,144 - 8,380 460930 Accounting & Finance (500) (500) - - - - - - 460940 Math & Science 8,697 7,451 8,698 (3,601) (3,806) (3,806) 704 1,600 460950 Hospitality & Service Industry (739) 1,549 438 6,363 10,436 14,538 6,186 126,156 460960 Civil Engineering Review - - - 378 (2,000) 172 - 172 460970 Human Resources Management 14,162 12,343 11,511 2,714 11,036 4,275 2,200 3,128 460980 Building & Construction Management 31,366 18,194 21,650 13,693 73,482 30,930 16,780 27,459 460990 Ed2Go 13,120 13,841 860 7,697 4,385 4,000 528 4,000 461000 Art, Media, & Design - 9,107 - - (6,545) - - - 461010 Global Ed Programs Standard 230,923 95,722 130,509 115,149 518,941 216,730 125,117 141,492 461020 Global Ed Programs Camps 108,148 81,984 16,275 83,070 (4,014) - 8,306 - 461030 CPELI Camps 65,880 45,179 11,716 42,921 (2,191) (3,862) 3,223 - 461040 CPELI Standard 218,690 31,188 180,046 194,043 143,534 48,309 103,111 65,919 461840 Summer Camps 27,315 25,282 4,439 15,705 62,611 62,347 1,204 70,300 461950 IT, Web & Social Media - - - (18,600) - - - - 462120 CEU CPP Aviation Hospitality 15,804 40,071 24,408 66,124 201,232 30,504 - 51,754 462660 CEU Marketing Research - 1,500 - 1,462 - - - - 462760 CEU ASP 92,316 15,525 1,105 48,576 (2,691) 51,100 8,154 52,576

Total College of Extended Univ Programs 806,381 569,404 313,631 311,779 1,177,325 403,877 137,497 532,787

COLLEGE OF ENGINEERING

228

CONTINUING EDUCATION PROGRAMSSURPLUS/(DEFICIT) BUDGET COMPARISON SUMMARYFOR THE FISCAL YEAR

DESCRIPTION

Actual YTD

3/31/172016-17 Actual

2016-17 Forecast

2016-17 Approved

BudgetActual YTD

3/31/182017-18 Forecast

2017-18 Approved

Budget

2018-19 Proposed

Budget

381500 Non-Credit Learning Admin 807 807 (125) 38 (7,849) (7,849) 174 -

381675 Civil Engineering Review 23,790 22,162 4,989 881 (31,715) (28,716) 4,966 -

Total College of Engineering 24,597 22,969 4,864 919 (39,564) (36,565) 5,140 -

COLLEGE OF SCIENCE406440 Chemistry Agilent Project - - 6,595 2,383 - 6,595 2,383 2,383

Total College of Science - - 6,595 2,383 - 6,595 2,383 2,383

COLLEGE OF LETTERS, ARTS, AND SOCIAL SCIENCES

362030 GIS Certificate Program - - - - - - - -

Total College of Letters, Arts, and Social Sciences - - - - - - - -

COLLEGE OF ENVIRONMENTAL DESIGN

460200 CCLAWS CERTIFICATE L+RS - - - - - - -

Total College of Environmental Design - - - - - - - -

GRAND TOTAL CONTINUING EDUCATION 830,978 592,373 325,090 315,081 1,137,761 373,907 145,020 535,170

229


COLLEGE OF THE EXTENDED UNIVERISTY

230


BUSINESS PLAN

COLLEGE OF EXTENDED UNIVERSITY

APRIL 2018

2018-2019

231

A

B

B

C

C

C

C

D

E

E

F

F

G

G

H

H

I



Business Plan Narrative

Overview of Current Fiscal Year




Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart

J

232

COLLEGE OF THE EXTENDED UNIVERSITY

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

16,096Other 148,000 68,904 85,000442,350Sales 4,272,916 4,036,083 4,478,433

458,4464,563,4334,420,916Total Revenues 4,104,987




4,800Postage & Freight 9,400 2,400 7,20021,812Advertising 145,320 87,772 109,58465,793Rent/Commissions 60,148 63,319 129,112

(64,823)Services 394,734 481,909 417,086(832)Supplies 112,640 95,668 94,836

630Telephone 5,530 2,800 3,43020,600Travel 103,200 119,500 140,100

(86)Laundry 86(3,027)Other 339,350 308,819 305,792



19,821Administrative Fees 192,282 181,713 201,5344,886Depreciation 47,680 44,502 49,3882,712Rent/Commissions 2,700 4,288 7,000



Labor Costs



329,5353,701,1104,283,419 4,030,646Total Expenses

Net Income 137,497 403,876 532,787 128,910


233



B

The proposed budget includes an increase in revenues of 11.2% or $458,446 generating a net surplus of 11.7% or $532,787. (There is downside risk due to continued uncertainty in global economic and political situations, which could result in perhaps only 7% increase in revenue and net.) In anticipation that CEU may continue to experience enrollment declines from the international market, CEU plans to expand our program recruitment to new countries - including Indonesia, Nepal, Sri Lanka, Vietnam, and Thailand - as well as to new areas within China and Korea. Our Aviation Hospitality Program (AHP) is projected to continue to regain market share lost to a low-cost competitor due to the recognized higher quality of our program. Our domestic programs are expected to benefit from continuing success of the Utility Planner Certificate (UTC) program developed in conjunction with SCE; additional sections of popular brewing courses; and offering ServSafe certifications required for all CCHM students (and for all food managers in California). The Building and Construction Management program has perhaps a 100% upside potential not indicated in the proposed budget which depends in large part on course redesign for semester format and on instructor availability. The Non-Profit Management program has significant upside (at least doubling) potential based on ongoing interactions with Pomona's Promise organization but this is not included in the proposed budget. "CEU Summer Camp" is our Migrant Education program run via grants for middle school students from migrant worker families with the intent to inspire and show them a path to college. The program financials indicated in the budget do not reflect actual results since overhead and administrative support cannot be charged against the grants, but CEU funds the program using surpluses from other programs due to the value it provides to this under-served community. This coming summer will experience a continued expansion in the number of school districts who contract with us for these camps, and we are hoping for a record number of students. Having more school districts and more students is our desired result, even though the financials only include the net surplus from the grants as revenue and few expenses. CEU plans to focus on retention of top performing employees. It will be especially important to recognize employee contributions during the coming year, especially in those areas most impacted by semester conversion, the Counterparts conference, vacant positions and where employees are on longer term leaves. Not reflected explicitly in the budget are contributions CEU makes to other campus clubs, entities and programs which in the past has fluctuated roughly between $10,000 - $50,000 annually. These contributions add to the expenses in the Administrative line of the budget.

The current fiscal year has been significantly impacted due to the continued decline in international student enrollments. CEU estimates that for the current 2017-18 year, we will end the year with total revenue of approximately $4,146,582 which is 6% below our approved budget for the year and a net of approximately $400,000. The net is more than double of our approved budget and will be achieved through highly scrutinized management of our expenses. CEU set the goal for each department area (Global Education Institute - GEI, Cal Poly English Language Institute - CPELI, and Program Development - PD), to reach a net of 7%. GEI has had a banner year and will reach this target due to the highly effective recruitment strategies of this team. However, CEU is aware that a repeat to this level of performance will be contingent upon China relations with the US gaining strength as majority of the GEI business is dependent on government funding from China. CPELI will result in approximately a 3% net due to the continued decline in international enrollments. Due to the global impacts, every CSU has experienced substantial declines in international enrollments. CEU feels fortunate that up to this point, we have not resulted in the same level of reductions as many of our counterparts at other campuses. For our Program Development programs, they experienced large growth in the UPC program that began as a partnership with Southern California Edison for their employees and recently opened enrollment to the general public. The construction management program was also able to benefit from the partnership as some construction courses met the electives approved by SCE. However, this was a one-time option therefore, CEU anticipates the construction programs reducing back to their standard enrollment levels for next year. The Non-Profit Management program also resulted in enrollment growth as this program is highly specialized with little competition in the market. The hospitality program was also able to reach the anticipated growth goals. (Continued - see section J)

234





C

CEU’s goal remains to reach revenue of $6,500,000 in 2020 (per the CEU Strategic Plan) in spite of this year’s significant reversal, and to reach a level of $10,000,000 profitable revenue within the 4-10 year window. Developing the business processes and tools to support and sustain this growth has been in progress for 3+ years, and the culmination of this long-term plan will be in place to support these growth objectives in all financial, admissions, marketing, recruiting and other related areas of our Foundation businesses. Some examples include using Jenzabar in all programs as a platform for online registration and automated payment (no cash handling!);after-hours online chat; and paperless processes/systems.. Our success will also depend on: a) expanding and refining our use of web and social media marketing; b) developing a plan for new classrooms and office space needed to accompany anticipated growth; c) improving and refining processes for launching new programs; and d) expanding international efforts beyond China, Japan and Korea.

CEU has included a new position in 2018-19 in the Business Operations department to assist with the growing workload that has resulted from new programs and increased enrollments and to support additional business development. It will also provide CEU with the opportunity to realign the current workload amongst applicable staff so that we can increase our quality of work. CEU also plans to add additional staff to support program growth for both our international and domestic programs however, that will be contingent upon the impacts of international enrollments in FY18-19 as well as the success of new programs such as the Cellarman program and the Safe-Serv program with CCHM. CEU will reassess our financial status throughout FY 2018-19 and submit our requests for additional positions based on our finances.

Last year, the CPELI facilities, which are modular buildings that are estimated to be approximately 15 - 20 years old, received a few upgrades to the main administrative office building including roofing repairs, new carpet, new paint and some new furniture. The CPELI facilities include three additional buildings that CEU plans to upgrade over the next few of years including new carpet, painting where needed, new furniture, etc. For 2018-19, we are requesting $40,000 to cover new carpeting in two of the buildings. Each building has been estimated at $20,000 each. This revision would have a significant impact for all students, faculty, and staff, especially during the rainy season. CEU will continue to make improving the environment of CPELI for our students, faculty and staff a top priority to remain competitive. The other capital request that CEU is requesting for 2018-19 is for $40,000 to purchase a vehicle and a cart. The vehicle is for transporting staff and visiting dignitaries to off-site locations and the cart is for transporting staff to various locations on campus with protection from the elements or weather since CEU is located quite a distance from the CLA, CPELI, IC, and other campus buildings that our staff need to travel to on a regular basis. This is for the safety of our staff, the ability to transport small business items when needed, as well as, more timely travel between locations.

Our changes in services for the upcoming year will be focused on improving our instructor's experience in working with CEU administration. CEU is currently researching potential e-signature solutions to improve our business process for instructor contracts. Our goal is to identify and implement an e-signature process by the end of FY 2018-19. This should provide our faculty with an improved payroll experience from our current manual hard copy process. This will also align and support our goal to have secure document storage of their contracts in OnBase or a secure cloud-based environment. The other key feature that CEU hopes to make available to our instructors is the ability to attach a document or syllabus to an outgoing email via the Jenzabar system. CEU is awaiting this upgrade from Jenzabar and it is expected by December of 2018. In terms of changes to our programs, CEU is pleased to expand the brewing program that we have in partnership with the Foundation's Innovation Brew Works (IBW). We also look forward to the new Safe-Serv program in partnership with CCHM.

235



D

FYs 17-19Dir Bus Ops and CEU ITResearch and Implement e-signature solution for processing of instructor contracts

FY 17-18Dir Bus Ops and CEU ITIdentify new online survey system with customized surveys for each program with reporting capabilities

FYs 17-19Bus Ops team and PD teamDevelop and implement process for informing and involving instructors regularly

FY 17-18Bus Ops team and PD teamEstablish communication plan and tools for students and faculty impacted by semester conversion

FYs 17-19Director of Business OperationsEstablish new process for accurately monitoring financial status continuously throughout the year

FYs 17-19Dir CPELI, Dir GEIExpand Academic Studies Program (ASP) and CPELI instruction

FYs 17-19Dir Bus Ops and CEU ITDevelop new custom reports to automate and continue to support business needs

FYs 17-20Dean, Dir Business OperationsContinue to pursue CEU/CPELI space options

FYs 17-20Dean, Dir Business OperationsFormalize mechanisms for monitoring and reporting progress relative to the CEU Strategic Plan

FYs 17-19Dean, Program Development (PD) Expand courses in existing, and launch new Career & Professional Development programs

FYs 17-19Dean, Directors, MBDCoordinate a unified marketing strategy and plan for all international programs,

FYs 17-19Dean and DirectorsDiversification of clientele and programs under CPELI and Global Education Programs

FYs 17-19Dean, Dir Business OperationsFoster staff development through group trainings with a focus on effective communication & teamwork

FY 17-18AllContinue moving/handling/storage of sensitive data from hard copy to secured online storage system

FYs 17-19Dir Bus Ops and conference teamPlan, build, and host Counterparts 2018 Conference (website, registration, schedule, program track, etc.)

236



Challenges

E

Major challenges continuing into the coming year include retaining top personnel, maintaining balance in international operations while dealing with uncertain global economic and political developments, and finding appropriate space for CEUs ongoing growth. One of our talented Program Development staff left in December for a promotion opportunity at another CSU and we are in need of expanding our Business Operations staffing to support overall CEU business needs. As for space, we are at the limits of available office and classroom space at CTTi and CPELI once all approved positions are filled. Finally, in addition to economic slowdowns in key countries such as China, Korea and Brazil, the stability of international political relationships is tenuous and depends on the directions established by the current U.S. leadership. Other challenges include the lack of progression pathways for all staff, and the struggle to keep our pricing competitive.

One of the key (and essential) strengths in CEU is the maturing of relationship building across campus. Business Operations, Program Development, and our international operations personnel have all established strong, positive relationships with key partners and collaborators; with other colleges, departments and faculty; with the Foundation and with other Divisions. Based on these relationships CEU purposefully constructs programs so as to increase business with other campus enterprises such as the Village, Bookstore, KW (hotel and food services), Farm Store, etc. This should continue to serve us well going into the future. Another area of strength is in personnel. One strength that CEU has is the the growing opportunity to partner and contract with local and global businesses and industry partners that align with the expertise that resides in the eight academic colleges on campus.

The Mission and Vision of the College of the Extended University directly align with, and support, the Mission and Vision of Cal Poly Pomona. CEU's Mission Statement: "Extending Opportunities through Education" CEU's Vision Statement: "The College of the Extended University and International Center will be recognized as a leader in preparing students for lifelong learning, leadership and careers in an increasingly interconnected world." The above Mission and Vision Statements are based on revisions accompanying the Strategic Plan developed last year.

237

Customer Survey

Employee Survey F

CEU continues to use customized student surveys in our different departments and programs (IC, GEI, CPELI, PD) and the staff from each department reviews the surveys to assess if any changes may be needed to the curriculum, facilities or supporting resources, instruction, etc. based on the student feedback. Recent surveys in GEI have expressed how pleased they are with the overall quality of the programs, the GEI staff, instruction, and the CPP campus, as demonstrated by several students in the AHP program. Some of the CPELI students that have been with us a while, have noticed the improved student areas within the CPELI buildings, following the new carpet installation and painting that took place in the administration building last year, as well as the realignment of furniture in several classrooms to be more appealing to the eye and to provide improved interactive learning environments. Our Program Development students consistently share their appreciation for our knowledgeable instructors with extensive experience and expertise in their fields as well as their suggestion that we need to offer more classes. Students that participate in our Study Abroad programs through the IC, also share their strong appreciation for the faculty, the opportunity to learn in another country and experience the culture, and that more destinations should be made available. Based on the diversity of the programs under CEU, we have not identified a single, unified student survey that will meet the needs of each program, however, we are current researching different on-line survey options so that this information can be collected digitally rather than in a hard copy format as we move forward and then our staff can review the results in a more timely and comprehensive format via survey reports.

CEU plans to distribute an employee survey before the end of the 2017-18 fiscal year to help guide management in planning and maintenance to build CEU to be one of the best places to work on campus as well as in the industry. We will also seek to improve our services to students and faculty from the staff survey feedback and provide new growth opportunities to staff, etc. Informal feedback was regularly received through CEU's all-college meetings held in the Fall 2017 and Winter 2018 quarter s as we had a team-building trainer/moderator, Lauren Nile, lead the group through interactive activities and discussions. CEU management, took note of the key topics of concern, suggestions and possible solutions, overall needs, etc. and worked to establish a resolution or new business practice to address such concerns or stated needs.

238

Keys to Success

Corporate Culture



G

Determine overall impacts to CEU students and programs as CPP converts to semesters 10

Develop communication plans for students and faculty that will be impacted by semester conversion 10

Revise and maintain the new websites for CEU, IC, and CPELI sites with recent, accurate information timely. 10

Implementation of compliant and data secure business processes across CEU 10

Reconstruct the CEU marketing strategy to align with the new CPP campus branding strategy. 10

Develop a strategy for staff retention, professional development, and building team skills 10

Measuring the progress of the Strategic Plan. 10

Enhance CEU relationship with our faculty through scheduled trainings, events, and interactive communications 10

Diversification of international programs for CPELI and Global Education Programs into new markets. 9

Provision of the highest quality programs, services, and instruction. 9

Increase capacity of facilities to meet growth needs. 8

Develop and launch C&PD programs aligned with market needs & CPP competencies 8

Research with Jenzabar the potential for revised and well documented processes and business strategies 7

Develop a culture of competency in CEU 7

Effective and Impressive Co-hosting of the CSU Counterparts Conference in October 2018 10

CEU External Customer's Perception: CEU's Perception:

CEU provides quality education and valued instruction that is priced Quality education provider with remarkable opportunities to expand into

competitively but they would appreciate the implementation of proactive new markets and design new valued programs. However, recognizing

communication strategies for notification of upcoming, new or additional that updated, documented and automated processes will be vital to our

course offerings in their area of study as well as automated notification continued success. An emphasis of improved marketing and

of any course cancellations. (CEU continues to pursue new communication communication strategies needs to be a priority as well developing

tools and options through Jenzabar) a better sense of identity and direction. Staff have also expressed

frustration in workload levels due to CEU operating with a very lean

CPP Internal Customer's Perception: staffing structure. (The measuring of the Strategic Plan should assist in

CEU has the ability to provide extended course offerings for the colleges. providing a sense of identity and direction as well as lead us in continually

The colleges would like to see better defined budgeting processes as well improved business processes)

as standardization of processes along with more efficient communication

channels. ( The PD team will focus on improved communication tools to

assist potential partners with understanding the appropriate time-frame that

is needed to launch a new program from point of concept so that all parties

maintain reasonable expectations)

239



H

CEU's most valuable asset is our personnel. For 2017-18, CEU has focused on filling vacant positions that occurred due to turnover from both the last and current fiscal years. CPELI started the new fiscal year with a new Director followed by the hiring of their new Student Affairs Coordinator and they downsized by one FT position. A few of the FT CPELI faculty were re-aligned to handle some key business processes of the omitted position. GEI also promoted one staff member and replaced a FT position with two part time positions. CEU Business Operations, experienced turnover with our student assistants, due to students reaching graduation. Also, for the International Center, a new Director was hired in the Fall of 2017, after the position had been vacant for more than a year. Training of new staff remains a top priority this year and will continue to be as CEU continues to add new members to our team. CEU will continue to review our business processes, position responsibilities, staff training opportunities, cross-training opportunities, and staff advancement opportunities so that CEU is positioned to retain talented staff especially in high-demand, skilled positions.

With identify and data theft concerns continuing to rise, CEU has focused on expanding the scanning of level 1 documents securely into OnBase rather than having hard copy files stored when possible. In 2017-18, CEU expanded scanning into CPELI, VA certifications and Accounting. Upon implementation to these three areas, all CEU departments that work with sensitive student data should be following this revise file storage and paperless process so that we keep sensitive data securely stored while also working in a compliant environment. CEU would like to express our gratitude to the talented staff that have voluntarily taken on responsibilities tied to scanning. Our progress to date would not be possible without them. On the financial side of the house, CEU has implemented monthly reviews by each department of their fiscal status with management so that we keep apprised of our fiscal status on a more consistent and timely basis. This also provides CEU with the ability to effectively manage expenses to meet the net goals that have been set. This has been demonstrated by the increased net that is anticipated for the year even though overall revenue is down. One key opportunity and new project for CEU that began in 2017-18, resulted from being selected to co-host the next CSU Counterparts conference that will take place in October, 2018, in Palm Springs, CA. Our colleagues that will be the other co-hosts are from the Extended Education unit at CSU - San Bernardino. Palm Springs was the selected location due to their off-site campus out in that area. Our teams have been working diligently with the Ext. Ed. unit from the CO to set up all details pertaining to this upcoming and important event. CEU will serve as the fiscal agent for this event and our staff are collaboratively building the website, registration, program track, event schedule, etc. with CSUSB and staff and executive management from the Chancellor's Office. We are excited that President Coley has agreed to attend this event to assist with providing some of the welcoming remarks. This conference takes place every couple of years, alternating north and south, and this is CEU's first opportunity in hosting a CSU Ext. Ed. event of this magnitude. We are excited for the opportunity and we are so appreciative to our motivated and dedicated staff that are sharing their time, efforts, ideas and suggestions to build an event that we can all be proud of and that every attendee will benefit from. CEU plans to have several of our staff attend the event, as they will be needed for several working aspects as well as to have an opportunity to learn and network with their colleagues.

240

Organization Chart

I

241

Continued -

Continued -

JOverview of Current Fiscal Year:


Overall CEU is pleased with the net that is expected for this year so that we can continue to build our staffing levels to support more growth in our program offerings and overall student enrollments while maintaining effective business processes. The remaining net, after hiring additional staff, will be added to the fund balance to support CEU being able to purchase a building in the next few years. This will provide the solution needed to address the demand for additional classrooms as CEU continues to build and expand our menu of course offerings.

242



243


2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(1,188)Other 1,616 1,188Sales 32,300

(1,188)33,916Total Revenues 1,188


Meals & Refreshments 270Advertising 2,086

(9,900)Services 19,800 9,900Supplies 1,100

(26,661)Other 1,616 26,661

(36,561)24,872Total Expenditures- Controllable 36,561


Administrative Fees 1,526Bank Card Fees 104

1,630Total Expenditures- Non-Controllable

Labor Costs

(1,098)Salaries & Wages 2,090 1,098(94)Employee Benefits 184 94

(1,192)2,274Total Labor Costs 1,192

(37,753)37,75328,776Total Expenses

Net Income 5,140 (36,565) 36,565

244





College of Engineering - Project Summary

College of Engineering is no longer administering the PE review course. The review course will be run through CEU. These projects are being phased out and the remaining surplus has been transferred.

None.

245





None

None

None

246


COLLEGE OF SCIENCE

247

COLLEGE OF SCIENCE

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

Sales 14,602 14,602 14,602

14,60214,602Total Revenues 14,602


Meals & Refreshments 1,000 1,000 1,000Advertising 100 100 100

636Rent/Commissions 1,272 636 1,272

6362,3722,372Total Expenditures- Controllable 1,736


Administrative Fees 657 657 6573,576Depreciation 3,576 3,576

3,5764,2334,233Total Expenditures- Non-Controllable 657

Labor Costs

Salaries & Wages 5,160 5,160 5,160Employee Benefits 454 454 454

5,6145,614Total Labor Costs 5,614

4,2128,00712,219 12,219Total Expenses

Net Income 2,383 6,595 2,383 (4,212)

248

CAL POLY POMONA FOUNDATION, INC. AGILENT 406440

PROJECT SUMMARY FISCAL YEAR 2018-2019

SCHEDULE B

SUMMARY: The Chemistry Department [via foundation ownership] is in the tenth year of the agreement whereby Cal Poly Pomona administers and runs a West Coast training center for courses sponsored by Agilent Technologies. The current selections are software courses in support of Agilent equipment product lines in the chemical analysis area. The client source will be primarily comprised of small to large private companies and public agencies requiring training on newly purchased equipment. Quality course production and on-campus services for clients are essential for success. The current year is slow, no doubt due to the continuing corporate caution on spending. It should be noted that even when business is slow (such as this year when only two courses are planned), we can still generate a profit, since our overhead when we are not teaching courses is extremely low. We have completed the expansion of the training facility in Building 3, which can now accommodate up 24 client-students. Future plans include the utilization of our software training facility for other (non-Agilent) software courses. GOALS and OBJECTIVES: Since the contract was finalized [Jan 2000; PSA Revised in 2008] the project has moved forward with the following emphasis: a] create a solid business platform for the long term augmentation of resources and equipment acquisition for the Chemistry department and the College of Science, b] training Cal Poly personnel to be certified by Agilent Technologies to teach software and hardware courses, c] exploit higher revenue to expense ratios [r/e] for software courses, d] form constructive relationships with local Agilent sales and service people to assist in marketing and training of Cal Poly personnel, e] form constructive relationships with on-campus units to insure good communication that will support growth and quality, e.g., foundation financial offices and KW lodge/restaurant to host on-campus student clients, and f] develop business around the concept of consistent cash flow. SHORTER TERM: Our goal for the coming fiscal year is to concentrate on teaching LC-MS (liquid chromatography-mass spectrometry) software courses. These courses have the largest enrollments as well as generating more revenue than our other (shorter) software courses. We have maintained the currency of our software instructor’s training. We are also expanding the use of our own LC-MS so that our instructor maintains hands-on familiarity with the use and trouble-shooting of the LC-MS software interface. LONGER TERM: In addition to building an income stream to help support equipment needs, we have always envisioned that the Agilent facility would also be available to teach specialized courses for students and faculty from the College of Science. On the financial side there are two major goals: a] marketing to existing owners, especially in the California market, and b] develop contacts with other industrial partners to teach other software courses. Our efforts to work with regional [Agilent] sales directors and service executives to improve marketing strategy are continuing. Agilent markets all courses and related products though their national educational division. Agilent has already given permission for KW to market and contact student-clients listed on class rosters, as information becomes available during the enrollment periods. Additionally, we are seeking to locate other companies that will utilize our software training facility and which will generate revenue when the facility is not being used for Agilent courses.

249


AGRICULTURAL AID TO INSTRUCTION PROGRAM

250

AGR-AID-TO-INSTRUCTION

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(157,126)Other 148,500 219,726 62,600328,963Sales 3,731,985 3,265,737 3,594,700

171,8373,657,3003,880,485Total Revenues 3,485,463

Cost of Goods Sold

25,591Cost of Goods Sold 796,353 664,469 690,060

25,591690,060796,353Total Cost of Goods Sold 664,469


20,349Utilities 81,638 62,449 82,79854,222Agr/RE Fees 426,472 326,928 381,15034,841Feed 39,600 58,159 93,0001,376Insurance 25,068 24,267 25,6436,369Repairs & Maintenance 65,676 41,281 47,650

24,696Meals & Refreshments 52,700 14,234 38,930(244)Postage & Freight 6,446 4,815 4,571

(4,933)Advertising 37,451 28,618 23,685(9,335)Rent/Commissions 18,590 30,075 20,740

(34,068)Services 457,145 523,997 489,929(2,976)Supplies 207,027 207,492 204,516

(357)Telephone 4,150 3,157 2,800(2,576)Travel 22,200 12,996 10,420

(327)Laundry 1,800 1,677 1,350(65,563)Other 234,521 162,275 96,712



3,879Administrative Fees 155,795 142,555 146,434(334)Depreciation 71,100 73,700 73,366

Rent/Commissions 1,809 1,809 1,80930Bank Card Fees 25,800 27,940 27,970

(996)Other 10,500 10,496 9,500


Labor Costs

(36,666)Salaries & Wages 1,011,512 929,170 892,5045,729Employee Benefits 262,498 179,701 185,430

(30,937)1,077,9341,274,010Total Labor Costs 1,108,871

18,7073,532,2604,015,851 3,550,967Total Expenses

Net Income (135,366) (46,797) 106,333 153,130

251

AGRICULTURE FUNDSSURPLUS/(DEFICIT) BUDGET COMPARISON SUMMARYFOR THE FISCAL YEAR

DESCRIPTION

Actual YTD

3/31/172016-17 Actual


2016-17 Approved

Budget

Actual YTD

3/31/18


2017-18 Approved

Budget

2018-19 Proposed

Budget

016200 Agronomy Farms (29,164) (86,728) (130,393) 125,668 (337,860) (429,507) (508,546) (397,830)

260200 Arabian Horse Show (284,346) (320,070) (311,996) (270,908) (14,753) (13,968) (88,748) -

020010 Beef Unit (21,593) (2,666) 762 582 (34,497) 661 8,618 2,614

022500 Beef Show Sale Project - - - - - - - -

027190 Consignment Sales - - - - 409 - - -

340010 Fruit Industry (9,009) (30,769) 17,820 654 12,127 2,764 11,548 221

300010 Meat Lab 18,290 18,290 20,121 3,154 (20,484) (20,000) 550 -

320300 Ornamental Horticulture (8,757) 19,431 9,082 33,095 6,641 5,209 5,530 7,043

193040 Pine Tree Ranch 54,384 159,641 35,154 4,396 8,781 120,326 13,130 59,766

420010 Sheep Unit 834 (9,082) 1,705 2,286 (4,507) 614 4,596 160

430010 Swine Unit (11,200) (6,472) 1,452 2,836 (6,202) 309 116 664

260220 Farm Store at Kellogg Ranch 22,233 33,510 19,569 3,919 89,119 1,480 19,627 29,809

460360 Danny's Farm 5,021 (894) - - (4,775) (4,613) - (4,467)

350810 Truck and Trailer 3,060 1,128 - - 57,939 57,360 - -

350820 Pomona Organics St Project 721 721 - - - - - -

428460 Vet Clinic (1,801) (4,845) 5,558 12,839 (12,795) 403 8,271 1,690

462300 Pumpkin Festival 156,980 36,191 118,401 64,192 49,738 56,007 86,182 56,745

462530 Westwind Ranch (146,205) (265,632) 93,820 - 201,271 171,660 326,398 339,626

462540 Wasmansdorff House-Pine Tree (10,589) (10,617) (523) - (1,135) (1,825) 11,149 (382)

462610 Agriscapes (27,599) 342 (12,964) 4,935 21,373 6,323 (33,787) 10,674

Total (288,740) (468,521) (132,432) (12,352) 10,390 (46,797) (135,366) 106,333

252


BUSINESS PLAN

PLANT SCIENCE FARMING OPERATIONS

APRIL 2018

2018-2019

253

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


254

PLANT SCIENCES

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(6,766)Other 73,600 63,366 56,600320,438Sales 3,258,045 2,944,062 3,264,500

313,6723,321,1003,331,645Total Revenues 3,007,428

Cost of Goods Sold

25,591Cost of Goods Sold 739,148 664,469 690,060

25,591690,060739,148Total Cost of Goods Sold 664,469


20,349Utilities 81,638 60,949 81,29862,206Agr/RE Fees 376,625 306,724 368,9303,092Insurance 22,852 21,296 24,3885,100Repairs & Maintenance 39,346 34,350 39,450

28,083Meals & Refreshments 32,800 6,517 34,600109Postage & Freight 4,646 4,462 4,571

3,644Advertising 28,276 18,166 21,810(10,675)Rent/Commissions 16,600 29,675 19,000(23,069)Services 441,245 492,848 469,779

10,056Supplies 164,313 143,440 153,496400Telephone 1,800 800 1,200

1,510Travel 3,000 2,710 4,220(327)Laundry 1,500 1,677 1,350

(9,876)Other 131,514 72,592 62,716



9,937Administrative Fees 133,842 123,049 132,9862,334Depreciation 49,248 48,378 50,712

30Bank Card Fees 25,800 27,940 27,970(996)Other 10,500 10,496 9,500


Labor Costs

(5,530)Salaries & Wages 879,579 842,104 836,57418,469Employee Benefits 216,142 162,349 180,818


140,4373,074,9913,400,414 3,215,428Total Expenses

Net Income (68,769) (67,563) 105,672 173,235


255



B

During the past fiscal year, we implemented a different model of budgeting and management for our farming operations, causing our budgets to differ from our projected. We shifted from an overall farm budget that includes all the various farming operations controlled by Plant Science to a model where we handle each operation as a specific enterprise. The budget this year reflects the individual enterprise model, making it possible to assign costs to the unit where they were incurred. This method of management increases our ability to manage and make decisions on each unit's budgets, improvements and opportunities for partnerships with growers and agribusiness and recoup costs from activities within the College of Agriculture. Although much of this shift was mostly accomplished this year, the process should be fully stabilized by next budget year when all income and expenses for each specific unit are attributed to that specific unit. Over the last two years, we have made significant changes to one of our major revenue generators, the Pumpkin Festival. The festival was reaching unmanageable numbers in attendance in attendance over one weekend, which was becoming very difficult to manage. A couple of years ago, we implemented an entrance fee and have continued to charge a fee for admission. This has gone much more smoothly the last couple of years, and has paid off in customer experience as well as sales and overall revenue. More detail about the Pumpkin Festival can be found in the AgriScapes budget.

continued

The proposed fiscal year budget includes the enterprise budgeting and accounting as described above. This will allow us to appropriately recoup costs from the various units that utilize crops and feed from our enterprises. The following changes will be implemented that will significantly increase our revenues for the Plant Science units below: 1. Increase the traffic and paying guest revenue for AgriScapes by increasing the opportunity for school visits, community based meetings, activities when on the farm and by making AgriScapes a better destination. 2. Increase the student labor force to allow us to maintain and harvest our fields more effectively at Spadra and other farming activities on campus. While this will also increase our student payroll, much of the labor-related work has been left undone due to the difficulty in hiring agricultural labor in general. Student labor is inexpensive and will also provide them with the opportunity to learn about and manage farming operations. 3. Pay labor costs from appropriate budgets for those activities instead of having the Agronomy Farm bear the costs of the labor, maintenance and equipment for other units. Much of this is reflected in the budget projections.. This includes labor and equipment for for maintenance of the landfill area, the vineyards, AgriScapes and pasture areas of both the Animal Science and Arabian Horse Center units.. This will greatly help to balance the budget for the Agronomy Farm.

4. Spadra Farm is the main educational unit for the Plant Science and Agricultural Science and as such not all activities generate funds nor should they be expected to, as we conduct research, and allow for student learning in addition to our production agriculture activities. We are working toward a better system to regularly provide on-campus units with fruits and vegetables we grow at Spadra and on campus, to help our students learn to grow to specific needs as well as generate more funds from our activities. This will also help the campus meet the needs of their “locally grown” requirements. The property at Spadra farm has greater potential to increase yield and revenue and also has more student labor available to maintain higher revenue crops. In addition, more production of crops will provide the students with more work opportunities as well as realistic practice in growing to market deadlines and food safety requirements.

6. We are completing Pine Tree Ranch renovation and establish a student presence to assist in management and utilization of the unit as an educational and research tool as well as a production operation.

7. We re-established the avocado planting on campus last year, and that will bring additional revenue within 1-2 years. The avocados on campus had been removed due to the widening of the I-10 offramp. continued

256





CThe following changes will be implemented that will significantly increase our revenues for the Plant Science units below:

1. Complete implementation enterprise management and accounting, and recover costs for other units of the campus that have previously been borne by the Agronomy Farm. 2.. Continue to Increase the utilization of AgriScapes as a community visitor location that also generates revenue for the nursery and farm store. Hold numerous community meetings on various topics that are appropriate for southern California agriculture. 3. Upgrade irrigation and productivity at Westwind Farm in Chino by upgrading the irrigation system and utilizing GPS tractor 4. Increase the horticultural activities to add more seasonal crops (ie. poinsettias, hydrangeas, Tomatozania, Pepperzania) that generate traffic and revenue for the program.

Requesting $75,000 for landscaping at Wasmansdorff. This capital request will be funded from the Pine Tree Ranch Reserve.

1. We will continually hire student workers to assist on the farm and in other units. Because students are generally short term employees, we need to hire on a continuing basis. This will allow us to increase the production and revenue on the units closer to campus as labor has been in extremely short supply. Student labor is the least expensive option. 2. No other increases in staffing.

We should see moderate improvements in the budget

257



D

Increase revenue and activity at AgriScapes Craig Walters continuous

Increase productivity in horticulture unit by increasing seasonal sales Monica Salembier continuous

Increase the productivity of the Spadra Landfill Area by upgrading irrigation and weed control Adam Mason July 2019

Upgrade plantings at Pine Tree Ranch Dave Matias Completed

Increase irrigation efficiency and yield at WestWind Ranch Chad Cleveland Continuous

Develop a Certified Organic line of produce Eileen Cullen/Aaron Fox July 2020

Establish an apiary area for Bee Science, to be used with community education Val Mellano July 2019

258



Challenges

EThe Mission of the Plant Science Farming Operations is to provide appropriately-scaled agricultural operations in support of agricultural education and other student educational opportunities while generating income to help offset the costs of operation. Our vision is that the Plant Science Farming units will be recognized as a model for other institutions in providing innovative and highly effective instructional support and community outreach programs in a cost efficient manner.

1. We are the only B.S. and M.S. degree-granting comprehensive College of Agriculture in southern California, where a very strong agricultural economy exists. 2. . Program numbers are growing steadily in Plant Science and Agricultural Science/Ag Business Management, (B.S.) and the M.S. option in Plant Science. 3. Job market is excellent and graduates generally have choice of jobs upon graduation. 4. Cal Poly Pomona students are highly regarded by the agricultural industry, and the alumni base is very strong. 5. Collaboration with other agencies, universities and programs is increasing rapidly. 6. Students in the program perform very well when compared to national groups

1. Aged buildings and infrastructure make it difficult to graduate students with cutting-edge knowledge. 2. Continuous pressure to increase productivity to cover expenses, though this may be counter to educational mission. 3. Increased costs associated with farming, including labor costs, equipment costs and regulatory costs.

259

Customer Survey

Employee Survey FNone available

None available

260

Keys to Success

Corporate Culture



G

Finalize enterprise accounting and management system that allows for proper cost recovery 10

Maintain an adequate labor force that allows us to get necessary work done 10

Replace aging equipment 9

Increase sales and timeliness of production 7

Appreciate student involvement in ag educational process Agreed

Interest in sustainability/organic production Agreed

Lack of knowledge in area that our farming/sales operations exist Needs work

261



HNone

262

CAL POLY POMONA FOUNDATION, INC. “Quality Service Supporting Quality Education”

COLLEGE OF AGRICULTURE – FARM UNITS

College of Agriculture Interim Dean Lisa Kessler

Plant Science Dept. Chair Valerie Mellano

Farm Manager David Matias

Farm Store Assistant B. Orozco

(Foundation)

Events Coordinator M. Romo

(Foundation)

AGRIscapes Outreach Asst. Veronica Grant (Foundation)

AGRIscapes Director Craig Walters (Foundation)

Farm Store Manager Dawn Taccone (Foundation)

Nursery Worker L. Manzano (Foundation)

Greenhouse & Nursery Coordinator M. Salembier

Kellogg/Spadra Land A. Mason

Westwind/Chino Land C. Cleveland

Farm Laborer F. Uribe‐Sanchez

Farm Laborer M. Cabrera‐Sanchez

Specialty Crops G. Esquivias (Foundation)

Fruit/Vegetable Operations Farm Laborer A. Betancourt M. Betancourt

J Robledo (Foundation)

2018

Accountant S. Crane

(Foundation)

Tractor Shop J. Millan

Farm Laborer C. Van Norden (Foundation)

Farm Laborer B. Van Norden (Foundation)

Organization Chart

I

263

Continued -

Continued -

J

Overall, the PLANT SCIENCE FARMING operations revenues for the current year are projected slightly higher than the original budget at $1.66 million, while expenditures are expected slightly lower at $1.63 million, resulting in a small net surplus of $27,600 compared to a projected loss in the original budget.

The AGRONOMY FARM operations are expected to come in ahead of the original budget projection, revenues being upgraded from $220,000 to $252,000, and expenditures running lower than expectations at $213,000 compared with $256,000 in the original budget. The outcome is a reduction in the anticipated deficit from $508,000 to $430,000. ORNAMENTAL HORTICULTURE revenues are in line with original expectations at $249,000, while expenditures are marginally higher at $243,800, leading to a slight reduction in the budgeted surplus at $5,200. PINE TREE RANCH projected revenues were increased significantly, from $204,800 to $293,400, while total expenditures are projected to be $19,000 lower than originally budgeted at $173,000. Consequently, the expected surplus is sharply up from $13,100 to $120,300. WASMANDORFF HOUSE revenues were revised down from $14,400 to $1,200 while expenditures were little changed at $3,000. Consequently, the budgeted surplus of $11,149 has been replaced by an expected deficit of $1,800. FRUIT INDUSTRIES revenue projections are $10,000 lower at $160,000. Expenditures were revised marginally higher at $167,200, giving a small net deficit at $7,200 rather than a surplus. Although WESTWIND RANCH revenues were revised down from $780,000 or $700,000, a $97,000 reduction in expenditures to $359,000 is expected to produce a slightly larger net surplus than originally budgeted at $340,700. AGRISCAPES revenues at $109,800 are virtually unchanged, while expenditures were revised down from $143,000 to $103,500. The result is an expected surplus of $6,300 compared with an originally budgeted loss of $33,800. PUMPKIN FESTIVAL projected revenues were revised down from $496,700 to $377,000, while expenditure projections were cut by around $90,000 to $321,000. Consequently, the budgeted net surplus was reduced from $86,200 to $56,000. FARM STORE budgeted revenues were revised lower to $1.02 million from $1.08 million; with projected expenditures reduced from $1.07 million to $1.02 million. Consequently, the expected net surplus has fallen from $19,600 to $1,500.

In aggregate, the PLANT SCIENCE FARMING revenues are projected at $1.71 million for 2018/19, up 4% on the revised budget for 2017/18. Total expenditures are forecast at $1,66 million, up 2%, and resulting in a projected net surplus of $51,086, an increase of 84% on the current year's projection. AGRONOMY FARM revenues and expenditure projections for 2018/19 are both down 8% on the current year budget at $232,600 and $630,400, respectively. However, the projected net deficit is also down 7% at $397,800. ORNAMENTAL HORTICULTURE revenues are projected at $261,000 in 2018/19, up 5%, while expenditures of $254,000 are up 4%, resulting in a budgeted net surplus of $7,000, an increase of 35% on the anticipated outcome for 2017/18. PINE TREE RANCH revenues are forecast 10% lower than the current year at $264,200. At the same time expenditures are expected to rise 18% at $204,400. Consequently, the expected net surplus is expected to halve at $59,800. WASMANDORFF HOUSE revenues of $4,000 are budgeted for 2018/19, with anticipated expenditures of $4,400, resulting in a net deficit of $400. FRUIT INDUSTRIES revenues are expected to rise 10% at $176,500 in 2018/19, while expenditures are projected to be 20% lower at $134,000. An overall net surplus of $42,500 is budgeted, compared to a $7,000 projected loss for the current year. WESTWIND RANCH revenues are budgeted at $777,500, up 11% on the current year projection, while expenditures are expected to rise 22% to $437,900. A net surplus of $339,600 is expected, similar to the current year projection. Projected revenues for AGRISCAPES at $117,200, are up 7%, while expenditures at $106,500 are 3% higher compared to last year, with a net surplus at $10,700, showing a 69% increase. PUMPKIN FESTIVAL revenues are expected to grow 6% to $399,500, with expenditures rising slightly faster at 7% to $342,800. An expected net surplus of $56,700, is 1% higher compared to the current year projection. FARM STORE revenues are expected to increase 6% to $1.09 million, while expenditures should rise more slowly at 4% to $1.06 million. The budgeted net surplus of $29,800 represents a twenty fold increase on the current year projection.



264


BUSINESS PLAN

ANIMAL & VETERINARY SCIENCE FARM

APRIL 2018

2018-2019

265

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


266

ANIMAL VET SCIENCES

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(69,366)Other 75,366 6,00030,765Sales 434,940 299,435 330,200

(38,601)336,200434,940Total Revenues 374,801

Cost of Goods Sold

Cost of Goods Sold 57,205

57,205Total Cost of Goods Sold


Utilities 1,500 1,5007,660Agr/RE Fees 13,850 4,560 12,220

34,841Feed 39,600 58,159 93,000(1,716)Insurance 2,216 2,971 1,255

2,051Repairs & Maintenance 21,650 6,149 8,200492Meals & Refreshments 15,400 3,838 4,330423Advertising 175 1,452 1,875

1,590Rent/Commissions 1,740 150 1,740(10,999)Services 15,900 31,149 20,150(13,032)Supplies 42,714 64,052 51,020

(200)Telephone 1,000 1,800 1,6002,457Travel 6,500 3,743 6,200

Laundry 300(18,802)Other 73,307 52,798 33,996



(1,543)Administrative Fees 17,397 14,991 13,4484,211Depreciation 11,628 18,443 22,654

Rent/Commissions 1,809 1,809 1,809


Labor Costs

(9,218)Salaries & Wages 73,100 65,148 55,930(2,743)Employee Benefits 17,298 7,355 4,612


(4,528)340,067412,789 335,539Total Expenses

Net Income 22,151 34,734 661 (34,073)


267



B

Overall budget forecast for the combined AVS Farm operations are expected to end the 17/18 fiscal year with a small negative balance of approximately $2,600. The Meat Lab (discontinued) and Truck & Trailer (completed) are excluded from these figures. Aggregate revenues projections are lower at $315,100, compared to the original $346,500. Expenditures are slightly lower at $317,700 compared with the original budget of $324,900. Consequently, a net deficit of $22,600 is now forecast compared to a surplus of that amount $21,600. We are again decreasing overall herd size in sheep and beef herds to be better in-line with available grazing resources and focus on improved quality to still be able to maintain livestock sale figures to make budgets. BEEF UNIT revenues have been revised lower from $85,000 to $76,600. While expenditures are in line with the original budget at $76,000, they show a sharp reduction in controllable costs offset by a large increase in labor costs. The unit is expected to make a small surplus, $661, compared with the originally budgeted $8,600. SHEEP UNIT revenues have been revised down from$77,500 to $63,300. Expenditures have been revised down by a smaller amount from $72,900 to $62,700. Consequently, the expected net surplus has been reduced from $4,596 to $614. SWINE UNIT revenues have been revised down from $39,000 to $25,000. Expenditures have been trimmed more sharply from $38,900 to $24,700. As a result, a slightly higher net net surplus is projected at $310 versus $120 in the original budget. VET CLINIC revenues have been revised down from $70,000 to $63,700, while expenditures have been revised slightly up from $61,700 to $63,300. As a result, the net surplus has been revised down from $8,300 to $400. PETTING FARM revenues were revised up from $75,000 to $86,400, with expenditures rising faster to $91,000, resulting in a net deficit of $4,600.

In aggregate, the AVS farming operations budget for 2018/19 projects revenues of $336,200, up 7% on the current year's revised budget; expenditures of $335,500 up 6%; and a small net surplus of $661 compared with the expected loss in 2017/18. We are no longer submitting budgets for the meat lab (30010) account. It has been inoperable for over 4 years. We will be re-purposing this facility using some recent grant funds and donation into a animal anatomy and physiology lab space for our growing AHS and AVS programs. BEEF UNIT revenues are budgeted at $90,100, up 17% over the revised 2017/18 budget. Expenditures forecast at $87,486 are up 15%, and the projected surplus of $2,614 is approximately three times that of the anticipated surplus for 2017/18. SHEEP UNIT revenues are budgeted at $56,300 down 11%. Expenditures $56,140 down 10%. A net balance of $160 is approximately a quarter of that expected for 2017/18. SWINE UNIT revenues and expenditures are both projected to rise by 77% at $44,300 and $43,636, respectively. A small net balance of $664 is slightly more than double that expected for 2017/18. VET CLINIC revenues and expenditures approximately level with last year's revised budget at $63,500 and $61,810 respectively. A net surplus of $1,690 is approximately a four-fold increase on the current year's revised budget. PETTING FARM revenues and expenditures for 2018/19 are budgeted at $82,000 and $86,467 respectively, a 5% reduction on the 2017/18 revised budget. A net deficit of $4,467 is slightly lower then the expectations for the current year. There are some unknowns in this proposed budget that will have an impact on overall profit/loss for next fiscal year. Livestock markets in general continue to be depressed and feed costs continue to rise. If the proposed reallocation of beef pastures to horse pastures moves forward, it will have a negative effect on beef unit operations and budgets moving forward.

268





CNo major changes

Dr Broc Sandelin has accepted a position at another school and will be leaving the University in summer 2018. New leadership for the AVS Animal Operations will be put in place before his departure.

Outlook for the next 3+ years is unknown due to too many factors beyond the programs control. These factors include, future use of Spadra and Lanterman, rainfall, pasture availability, livestock and commodity prices, and our continued partnership with LA County Fair. We will continue to strive for at minimum a break even budget across all five AVS foundation farm accounts.

269



D

Finish Fencing project at beef Unit to replace old plastic fence with steel fencing Anthony Estep 12/1/18

Finish Fencing project at Sheep unit to replace old fence Brad Foyil 12/1/17

Find additional partners for feeding operations Broc Sandelin Ongoing

Continue aggressive Coyote abatement actions Broc Sandelin Ongoing

Look for ways to offset expected increase in feed costs (fodder, leased land etc) All AVS farm Ongoing

Engage donors with $100k+ potential to help with ongoing farm costs and vet clinic project Broc Sandelin/ Melissa Watkins Ongoing

270



Challenges

EThe mission of the Animal & Veterinary Science Farm units is to provide Agriculture Aid in instruction in assisting the Animal & Veterinary Science department in teaching their hands on laboratories in the Pre-Veterinary and Animal Health Science majors. Our vision is that the AVS Farm units will be recognized as a model for other institutions in providing innovative and highly effective instructional support and community outreach programs in a cost efficient manner.

We are the only 4 year university in Southern California that has a dedicated animal science farm for use in teaching undergraduate students. Knowledgeable, dedicated staff. Locally-raised, natural product is a big selling point to consumers.

The majority of our Facilities and infrastructure buildings are over 50 years old and are in need of repair/replacement Continued low level of state support for facilities and staff Predation from coyotes is not only an animal safety but personnel safety issue as well Continue to find ways to generate additional revenue while controlling costs.

271

Customer Survey

Employee Survey F No Employee Survey Available

Not Applicable

272

Keys to Success

Corporate Culture



G

Increased State support for aging infrastructure and staff positions 10

Continue to be practice environmentally sustainable farming operations 10

Replacing aging equipment and facilities 8

Home grown-locally produced, sustainable product is better healthier Agreed

Take Pride in caring for animals high level of animal welfare Agreed

273



HNA

NA

274


BUSINESS PLAN

WK KELLOGG ARABIAN HORSE CENTER

APRIL 2018

2018 - 2019

275

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


276

ARABIAN HORSE CENTER

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

(80,994)Other 74,900 80,994(22,240)Sales 39,000 22,240

(103,234)113,900Total Revenues 103,234


(15,644)Agr/RE Fees 35,997 15,644(782)Repairs & Maintenance 4,680 782

(3,879)Meals & Refreshments 4,500 3,879(353)Postage & Freight 1,800 353

(9,000)Advertising 9,000 9,000(250)Rent/Commissions 250 250(557)Telephone 1,350 557

(6,543)Travel 12,700 6,543(36,885)Other 29,700 36,885

(73,893)99,977Total Expenditures- Controllable 73,893


(4,515)Administrative Fees 4,556 4,515(6,879)Depreciation 10,224 6,879

(11,394)14,780Total Expenditures- Non-Controllable 11,394

Labor Costs

(21,918)Salaries & Wages 58,833 21,918(9,997)Employee Benefits 29,058 9,997

(31,915)87,891Total Labor Costs 31,915

(117,202)117,202202,648Total Expenses

Net Income (88,748) (13,968) 13,968


277



B

The dean's office has continued to work diligently to analyze the Arabian Horse Center budget. This has resulted in a forecast which is very similar to the budget approved. Due to cost containment measures, expenses will come in at or below budget. This program was moved to a Foundation Program under the Office of the Provost effective April 1, 2018.

This program was moved to a Foundation Program under the Office of the Provost effective April 1, 2018. REVENUE: Endowment proceeds will be $61,000, this is virtually unchanged from previous year.

EXPENSES: Expenses will be relatively unchanged.

278





C-The covered arena should be complete by the end of 2019

-2 horse trailer $15,000. The horse center only has an oversized 6-horse trailer, which is difficult to maneuver during an emergency. It was obtained when the center used to attend horse shows. It does not meet the majority of our hauling needs, which are short term and emergency.

Revenue: Stateside revenue from the production sale will not be as high as 2017 given the number of horses available to sell. The industry has responded well to new hires and we have increased promotional efforts to ensure the sale remains successful. It is imperative we become recognized as "THE" industry source for high quality, well trained horses. The bottom of the market is expected to remain weak - we must be at the top. We will continue to work with Advancement to ensure we are reaching AHC alumni and supporters and generating additional revenue streams.

Expenses: With global environmental pressures on farming (decreasing land availability, drought, etc.) our expenses will only remain flat or increase. The horse center is an extremely efficient operation, but when you are squeezing pennies, the answer lies on the revenue side.

279



D

Build covered arena J. Brooks / Facilities 12/2019

Secure stallion breeding donations J. Lambert / C. Reich / J. Brooks Ongoing

3rd Annual Production Sale J. Lambert / J. Brooks 08/2018

280



Challenges

E Cal Poly Pomona Mission: We cultivate success through a diverse culture of experiential learning, discovery, and innovation. Cal Poly Pomona Vision: Cal Poly Pomona will be the model for an inclusive polytechnic university that inspires creativity and innovation, embraces local and global challenges, and transforms lives. Huntley College Mission: We create future leaders in the agricultural, food, animal health and apparel industries through innovative approaches to learning. Huntley College Vision: Excellence in disseminating knowledge of the natural and human systems that underlie the agricultural sciences and their applications by embracing our student centered philosophy, learn by doing teaching strategy and Kellogg legacy of community engagement. W.K. Kellogg Arabian Horse Center Mission: The W.K. Kellogg Arabian Horse Center is dedicated to maintaining the Kellogg legacy of breeding the highest quality Arabian horses; ensuring they have the best training; and promoting the Arabian breed to the Cal Poly Pomona campus, Arabian industry, and general public. W.K. Kellogg Arabian Horse Center Vision: Consistent with the polytechnic tradition, we offer students a safe place to learn horsemanship from industry leaders. The AHC promotes the Arabian breed to the public through the Sunday shows and other many other events, and strives to be a respected resource for equine education in the community.

The staff and leadership of the Arabian Horse Center are committed and perform their jobs well above industry standards. The horse health care and training is excellent.

Financial challenges will continue on both the revenue and expense side, as well as reporting which requires a manual system. Obtaining and supervising student labor is a continuous challenge. The facility is over 40 years old and needs maintenance and upkeep to present it in a fashion appropriate to the Kellogg legacy and Cal Poly Pomona name. The advisory committee identified that the covered arena needs to be completed and pastures maintained better.

281

Customer Survey

Employee Survey FNot applicable.

Not applicable.

282

Keys to Success

Corporate Culture



G

Increase income from new or existing sources 10

Position AHC as an industry leader (great horses, education) 9

Maintain strong relationships with breeders and trainers 9

Maintain efficient internal processes 9

Plan breedings with great focus on quality 9

Continue to increase outreach to alumni and supporters 8

Increase student involvment 8

Long history in breed, with ups and downs (on upswing now) Working to make breeding more consistent and higher quality

Equine staff is very well respected in industry Quality of training of the Arabian horses is excellent

Horse care methods are at or above industry standards Staff shortages create operational challenges

Excellent student opportunities for learning about the Arabian horse industry Great opportunities for learning equine skills

Is instrumental in promoting the Arabian breed to the general public

Equine staff struggle with working in university environment

283



HThe consolidated budget of the horse center is now updated monthly when data is available and shared with the horse center team. It is managed very carefully, but without full funding it is to point of diminishing returns. The equine team is excellent in their technical skills and the horse care is world class. Cal Poly Pomona students are getting hands on learning opportunities they cannot get anywhere else in the world, particularly as an undergraduate.

All student volunteers must now join the horsemanship club. This will build on the already strong safety program by providing more oversight and structure. The most valuable 10% of our horse herd is covered with major medical / mortality insurance on the state side.

284

Jéanne Brooks Director

Cindy Reich

Livestock Tech II

Marie Nagano Livestock Tech II

Marissa Shotwell-TabkeLivestock Tech II

John Lambert

Lead, Equine Operations

Lauren Corona

Administrative Support Coordinator

I


285


RESEARCH AND SPONSORED PROGRAMS

286


BUSINESS PLAN

OFFICE OF RESEARCH AND SPONSORED PROGRAMS (ORSP)

APRIL 2018

2018-2019

287

A

BBCCCC

D

E

E

F

F

G

G

H

H

I







Changes in Staffing





Employee Survey

Customer Survey

Keys to Success

Corporate Culture



Organization Chart


288

RESEARCH & SPONSORED PROGRAMS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

28,808Indirect Cost Recoveries 1,505,000 1,392,510 1,421,318

28,8081,421,3181,505,000Total Revenues 1,392,510


Insurance 700 700 700443Meals & Refreshments 9,300 8,857 9,300

Postage & Freight 996 300 300(195)Advertising 400 595 4005,050Rent/Commissions 25,104 40,350 45,4001,443Services 156,282 157,037 158,4802,100Supplies 17,200 10,100 12,2001,500Travel 15,504 14,000 15,500

(86,655)Other 486,818 449,494 362,839

(76,314)605,119712,304Total Expenditures- Controllable 681,433


12,060Administrative Fees 630,000 583,875 595,935


Labor Costs



28,8081,372,5101,485,006 1,401,318Total Expenses

Net Income 19,994 20,000 20,000


289



B

The funds for this account and Business Plan are generated by grants and contracts awarded, when indirect costs (or "Facilities and Administrative costs") are received from the sponsor for each project. The current forecast for the account 190070, Office of Research and Sponsored Programs (ORSP) for 2016-2017 indicates that we will finish the fiscal year within budget: (A) The new Associate Vice President (AVP) for Research, Innovation and Economic Development, Dr. Sadiq Shah, was named in June, 2016. Dr. Shah brings an extensive experience in research combined with industry knowledge that would tremendously help our faculty and staff in their efforts to obtain external grant funding and build partnerships with regional and national businesses in support of their teaching, research, scholarship and creative activities. (B) Continued employment for a part-time ORSP Associate and three (3) student assistants were sustained. Staff and student assistants are critical to the units for ensuring prompt campus services to faculty and staff engaged in externally funded research and in support of their human and animal care research protocol submissions. Additionally, as personnel transition in ORSP continue, recruitment for permanent/replacement of the Director has been completed and the Administrative Assistant will be finalized by early March, 2018. (C) The Strategic Interdisciplinary Research Program (SIRG) is now in its fourth year of full implementation. Funding was budgeted at $75,000 and another competition round will soon be scheduled. SIRG provides internal financial support to Faculty members who submit and win proposals for developing external grant/contracts. Four teams (a total of 13 faculty members) have received funding under last year's program.

The outlook reflects improving trends, with 2018-2019 projected revenues to be consistent with previous year’s and continue to show improvements in the overall rates of indirect cost reimbursements on current awards. There appears to be indications of growth in grant expenditures which could be attributed to an increase in the number of active sponsored projects. There were several new and continued funding received from the U.S. Department of Education amounting to over $6 million combined project costs; although little to no ICR recovery is allowed on these awards, per federal regulations. However, the McNair award will generate 8% ICR. This year in first six months 108 proposala were submitted, and two additional proposals for $3.5 million are being developed. One for the NSF Cyber Security Critical Infrastructure and the second for the NSH Improving Undergraduate Education. There are several additional proposals under development targeted for NSF and DoD. There is potential that these proposals to various federal, state and other funding agencies would yield full ICR revenues.

Personnel changes (interim transitions and turnover) have not diminished the administrative support level in proposal development, grant processing, and contract negotiations. Preliminary data indicates that in the first six months the number of proposals submitted has increased compared to last year's work volume. In order to address the workload challenges, it is requested to upgrade the current half-time Foundation funded position to a full-time position. This position will be working very closely with the Foundation on Non-financial post-award function only, and no pre-award efforts. It will entail finalizing the budgets on grant awards if necessary, facilitating execution of agreements and other documents needed to set-up new accounts for new awards. The position will report to ORSP Director with a dotted-line to the Grants & Contracts Director at the Foundation, to further build efficiencies in the process aligned with awards growth.

Support of employment for student assistants and part-time Sponsored Programs Associate will be continued. Increases in employee fringe benefits costs reflect the expected increases in salary rates for 2018-19. Also, the two students added in 2014-15 in the OR Compliance Office will continue to be employed for increased numbers of protocols required for human and animal research. Additionally, a 2nd part-time student assistant will continue to be budgeted to assist with ORSP tasks. Student assistants provide file processing, document routing, database input, and other vital help. This support is necessary to meet the increasing demand for protocols, transition to the electronic proposal and IRB protocols submission, and to ensure adequate backup for critical administrative support staff/functions in the Office of Research as needed. In summary, total revenues and grant expenditures indicate a stable trajectory from previous years.

290





CIn collaboration with the Cal Poly Pomona Foundation, Inc., the subscription to the online platform, Cayuse 424 system, has been finalized. The electronic proposal submission system was launched in November 2016; and it had replaced the paper / hard copy approval process. This electronic process had simplified and streamlined our grants and contracts process, creating more efficiency and can be accessed off campus; thus avoiding delay in completing institutional review. The new AVP for Research, Innovation and Economic Development will leverage his experience at other Hispanic Serving Institutions to work with faculty at Cal Poly Pomona in developing initiatives and strategies for obtaining extramural support. To support competitive proposal development an NSF day workshop was conducted and streaming video is now available on the ORSP website, templates for the various sections of the NSF proposals have been developed and are now available to faculty on our website based on Bronco username and password. A Grant Writing retreat was also conducted last summer.

None

With the hiring of new AVP for Research, Innovation and Economic Development in June, 2016, recruitment for other permanent /replacement positions for ORSP Director is complete, and Administrative Assistant hired left after six months and the search for replacement is now underway. Once all these positions are in place, strategic evaluation of the organizational structure for an integrated grants process would be an appropriate response. With a mix of new leadership and long-time employees, clarity of mission should be established with the common goal of providing seamless coordination and customer service of highest quality to faculty and staff in support of their sponsored research activities. It is also critical for ORSP staff to continuously receive training and professional development to enhance their knowledge base on CPP’s grants/contracts policies and procedures, in ever- changing federal and sponsor regulations, fundamentals of research administration, and increasing complexities in regulatory requirements due to integration of many federal circulars into Uniform Guidance (UG). A part-time position upgrade to a full-time position is requested see above under proposed fiscal year budget.

The potential for a significant growth in sponsored research activities for the next three years and beyond is promising if ORSP, Faculty and Staff receive adequate resources and grantseeking support to compete. Grant and contract activity on campus has vast potential despite stiff competition for federal funding. The portfolio is broad; CPP is in position to apply and win funds if Faculty/Staff are provided mentoring, tools and strategies to develop competitive proposals and if ORSP has efficient staffing and funds adequate to support them in this endeavor. The overall research environment is being “cultivated” to accommodate research-intensive new faculty as well. The current staffing and infrastructure model for ORSP is being evaluated in order to continue to build a service organization that will enable our faculty and staff to accomplish the research mission of our polytechnic campus. Pursuit of a "growth model" (capacity building) is needed to help develop and submit more and competitive proposals: support for ORSP staffing, infrastructure growth and increased funds for development support are needed to be successful. Our University's competitive position will be impacted by these trends.

291



D

Manage the provision of professional, courteous and timely services in an era of still-tight state resources AVP / Director Ongoing for FY 18-19

Train and develop the ORSP team to maintain professional pre-award services AVP / Director Ongoing for FY 18-19

Increase the competitiveness/quality of proposals in a time of still-tight resources AVP / Director Ongoing for FY 18-19

Continue Faculty and Staff involvement in grant & contract activities to increase the number of submittals: AVP / Director Ongoing for FY 18-19

celebrate accomplishments

Recommend and support activities to help enhance the grants culture and/or research infrastructure AVP / Director Ongoing for FY 18-19

Help identify campus issues (retain PIs, assigned time, space, lab equipment, and start-up funds, AVP / Director Ongoing for FY 18-19

supportive RTP, quick turnaround of contracts, and so on)

Maintain compliance in all aspects of pre-award activity / proposal development AVP / Director Ongoing for FY 18-19

Effective use of new Web application, Cayuse 424, that would improve proposal development services, ORSP staff Ongoing for FY 18-19

submission, approval routing, create database reports

Conduct grant writing retreat during the summer AVP / Director Ongoing for FY 18-19

Conduct a competition on campus for internal seed funding to increase large proposals going out AVP / Director Ongoing for FY 18-19

Continue Interdisciplinary Thematic Scholarly Communities to nurture scholarly culture and grew AVP / Director Ongoing for FY 18-19

grant seeking interest amonfgfaculty

292



Challenges

EMission/Vision Statement for the components of the Office of Research that are supported in any way by the Foundation funds being requested. MISSION: The Office of Research advances learning and knowledge by providing leadership and support for Faculty, Staff and students in the pursuit of excellence in scholarly and service activities. In pursuit of this mission, the following are the goals of the Office of Research: • Provide leadership and support services to the University to increase grant and contract funding and to enhance Faculty, Staff and student participation in research and scholarly endeavors. • Facilitate the creation of external funding partnerships that benefit the University and its broader community. • Help Faculty, Staff and students comply with regulations governing research and sponsored programs, including the use of vertebrate animals and human subjects in research. • Support research involving animals through the Lab Animal Facility (Building 92). • Provide courteous, timely and professional service to Faculty, Staff and students. * Effective use of Cayuse424, the Web-based application/technology in proposal submission process that will enhance ORSP's service support level.

Strengths:Continued interest by our faculty to develop proposals is strong and encouraging; the ORSP Staff exhibit exceptional teamwork but are frequently impacted by deadline stress and "rush" proposals; new OR initiatives bring fresh focus on external funding and related areas such as Tech Transfer, Undergrad Research, and Student Innovation; outstanding compliance continued on campus; a RSCA and SIRG programs were funded using some both state and Foundation resources. Opportunities: the internal "SIRG" program offers strategic, interdisciplinary research support to faculty; major competitions for PUIs, STEM & HSIs continue; ORSP continues to promote Pivot, a web-based funding database; a new electronic proposal submission using Cayuse424 platform.

There is vigorous national competition for external funds and some key federal success rates remain at historic lows for the country; improving but still tight state funding continues to have significant, cumulative impacts; ORSP continues to re-build and train the team; staff transition and turnover in ORSP; "rush" proposals stress ORSP; faculty say they have limited time to write proposals as a result of heavy teaching loads, especially vs. top research entities; the Lab Animal Facility continues to age. Despite these challenges, the future is promising at CPP: research-intensive new faculty, the number of applications for external funding is strong and increasing, the total dollar volume requested is increasing at a very high rate; and CPP is winning significant grants with important benefits to our campus.

293

Customer Survey

Employee Survey F Due to personnel changes (interim transitions and turnover) employees survey was deferred.

Due to personnel changes (interim transitions and turnover), these surveys will be conducted at a later date.

294

Keys to Success

Corporate Culture



G

10. Staff retention, growth and training/development despite continued stress and tight resources 10

9. Faculty and Staff participation in grant/contract proposal submittal activities and scholarly endeavors 9

8. Financial and other support from the campus for increasing competitiveness/quality of proposals 8

7. Campus-wide issues explored to enhance the infrastructure (keeping PIs, assigned time, space, lab equipment 7

new technology)

6. Support from the state and Foundation (for staffing, grant-writing, workshops, competitiveness enhancement) 6

5. Increased funding opportunities from sponsors for which the campus is eligible and ability to identify them 5

Based on previous years' information: Employee Surveys administered in recent years

High levels of service satisfaction were maintained in key areas of and informal feedback provide regular guidance on

courtesy and professionalism; during RUSH proposal periods, perceptions and results are being used to help

timeliness elsewhere can suffer; still-tight state budgets and past lack of create a high-quality working environment

adequate raises pose lingering challenges in maintaining improvements. for the unit.

Faculty and staff have extensive needs for pre-award ORSP support Employees face the increasing challenge of meeting

in order to develop, write and submit competitive proposals Faculty and staff needs with continuing high

during a time when they are also coping with staffing and levels of service satisfaction, during a time of

resource constraints and increased workloads. flat staffing and resources; demand for services remains high.

Many new Faculty members, in particular, require extensive assistance Many tasks are still carried out under stress of "Rush" proposal

and support in order to become familiar with processes/requirements deadlines and with the need to meet complex

to win external funding in the current extremely compliance requirements with accuracy. Salary rates continue

competitive grants arena. to be a challenge for retention.

Teamwork is excellent. Teamwork is excellent.

295



HBusiness controls are exercised keeping several vital factors in mind-- • Oversight of unit resources and budgets continues to be exercised through management and monitoring by the AVP Research and the AVP Research Administrative Budget assistant. • Compliance is being maintained and wherever possible, strengthened by thorough protocol review and approval procedures. For example: multiple reviews and levels of approval by separate individuals (such as PI, Department Chair, Dean, Director of ORSP, AVP Research, Provost, CFO, and Foundation Manager and Executive Director) are incorporated into standard proposal approval processes. • Specific sponsored program risks are further managed through supplemental approval requirements that vary according to "thresholds" determined by project-specific risk characteristics such as the project's dollar size, matching or other costs/impacts to campus.

296

Research, Innovation and Economic Development

Sadiq ShahAVP

Research, Innovation and Economic Development

Maya HernandezResearch

ComplianceAnalyst

Cynthia TesslerCoordinator

Animal Care Facility(Instructional Support

Technician III)

Instructional Support

Technician I(Vacant)

Olukemi SawyerrDirector of Student

Innovation Lab Ericka OlguinAdministrative

Analyst 1

Gregg HowellDirector of Research

& Sponsored Programs

**Carol Keating

Emeritus Sponsored Programs

(FOUNDATION) Emeritus

Elsa NajarSponsored Contracts

Associate

Karina GigliottiSponsored Programs

Associate

Shari Jackson Sponsored Programs

Associate

Precy Lynn BaltazarSponsored Programs

Associate

Vacant Administrative

Assistant ll

Charlene SaundersAdministrativeCoordinator II

Winny Dong

Office of Undergraduate Research

Elisa Mitchell

Administrative Support Assistant

Organization Chart

I

297


UNRESTRICTED AND RESTRICTED FOUNDATION PROGRAMS

298

UNRESTRICTED FOUNDATION PROGRAMS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

Sales 460,500 630,174 630,174

630,174460,500Total Revenues 630,174


Services 449,052 614,504 614,504

614,504449,052Total Expenditures- Controllable 614,504


2Administrative Fees 11,448 15,670 15,672


2630,174460,500 630,176Total Expenses

Net Income (2) (2)


299





Unrestricted Foundation Programs

The forecast includes the unrestricted Foundation programs (approximately 75 programs) that are not allowed to receive restricted donor funds. The forecasted revenues were forecasted by annualizing the year to date revenues. The administrative fee was forecasted by multiplying the annualized expenditures by 2.55% and the balance is the direct forecasted expenditures. The forecast is a break even so the expenditures were used and accounted for as services other in arriving at a break even forecast.

The proposed budget includes the unrestricted Foundation programs (approximately 75 programs) that are not allowed to receive restricted donor funds. The proposed revenues were based upon the forecast. The administrative fee was budgeted by multiplying the annualized expenditures by 2.55% and the balance is the direct budgeted expenditures. The proposed budget is a break even so the expenditures were used and accounted for as services other in arriving at a break even proposed budget.

300





301

RESTRICTED FOUNDATION PROGRAMS

2017-18

Budget


Forecast Budget

$ Change

ApprovedProposed



Revenues

217,330Other 300 250,670 468,000(534,134)Sales 12,396,035 15,368,387 14,834,253

(316,804)15,302,25312,396,335Total Revenues 15,619,057


17,644Agr/RE Fees 10,003 30,356 48,00075,000Feed 75,0001,500Insurance 1,5002,786Repairs & Maintenance 1,560 5,458 8,2443,879Meals & Refreshments 1,500 2,121 6,000

353Postage & Freight 600 2,047 2,4009,000Advertising 3,000 3,000 12,0003,048Rent/Commissions 3,048

(377,550)Services 8,670,508 10,744,599 10,367,04949,962Supplies 49,962

557Telephone 450 643 1,20010,043Travel 3,700 8,457 18,50076,885Other 9,250 1,765 78,650

(126,893)10,671,5538,700,571Total Expenditures- Controllable 10,798,446


(2,514)Administrative Fees 221,492 275,080 272,5666,879Depreciation 3,408 4,917 11,796


Labor Costs

Salaries & Wages 19,611Employee Benefits 9,792

29,403Total Labor Costs

(122,528)11,078,4438,954,874 10,955,915Total Expenses

Net Income 3,441,461 4,540,614 4,346,338 (194,276)


302





Restricted Foundation Programs

The forecast includes the restricted Foundation programs and scholarships (approximately 1077 programs that are allowed to receive restricted donor funds and unrestricted funds i.e. exchange transactions). The forecasted revenues of $15.3 million were forecasted by starting with the year to date revenues and subtracting the endowment distribution and subtracting any new pledge that is material (this year there were two for a total of $950,000) arriving at net revenues without endowment distribution and new material pledges. The net revenues were then annualized and endowment distribution and new material pledges were added back arriving at total forecasted revenues. The administrative fee was forecasted by multiplying the annualized expenses by 2.55% assuming the direct forecasted expenditures will be 70% of the forecasted revenues. The forecast generates a surplus for the restricted programs.

The proposed budget includes the restricted Foundation programs and scholarships (approximately 1077 programs that are allowed to receive restricted donor funds and unrestricted funds i.e. exchange transactions). The budgeted revenues are proposed based upon the forecasted revenues and includes the endowment distributions of $4.3 million to be transferred in July 2018 but excludes the new pledges of $950,000. The administrative fee was budgeted from the forecast assuming the direct budgeted expenditures will be 70% of the budgeted revenues. The budget generates a surplus for the restricted programs.

303





304

LONG TERM CASH PLAN/ RESERVES

305

LONG-TERM CASH PLAN/RESERVES – FISCAL YEARS 2020-29

The Cal Poly Pomona Foundation, Inc., 10-year Long-Term Cash Plan/Reserves focuses primarily on sources and uses of cash by incorporating the Foundation’s various operations into the analysis. The plan was developed to proactively study the financial implications related to the Foundation’s operations and programs, non-cash transactions, financing activities, capital projects, and reserves with special attention devoted to changes (improvement or deterioration) in financial conditions. As a result, the Long-Term Cash Plan/Reserves is a combination of forecasts by the various directors and managers.

The original plan was developed in 1997 and has been updated annually to include assumption in regards to new programs, operations, financing, capital projects, reserves and non-cash transactions. The plan was developed to provide the Foundation Board of Directors and management an opportunity to review the projected financial needs of the Foundation and the University in relationship to the financial condition of the Foundation. The plan forecasts the cash generated from excess surpluses, non-cash transactions, financing activities and reserve draw downs and cash used for current and projected capital projects, debt service for financing activities, designated gifts and fixed assets transferred for the benefit of the University and the funding of reserves as designed by Board approved policies.

The highlights of the Long-Term Cash Plan/Reserves for the ten fiscal years ended are as follows:

Sources of Cash: Total surpluses from operations - $92.5 million Non-cash transactions – Depreciation - $37.4 million Non-cash transactions – Post Retiree Medical Benefits – $739 thousand Financing activities – Bond issuance for Dining Commons at Campus Market

Place - $15.0 million Reserve draw-downs - $23.0 million Total Sources of Cash - $168.6 million

Uses of Cash: Capital project requirements - $40.1 million Financing activities – Principal loan payments - $23.3 million Designated Gifts - $22.4 million Reserve contributions - $31.5 million Total Uses of Cash - $117.3 million

Net increase in Cash - $51.3 million Cash Available - $69.5 million

The surpluses from operations for the ten years ended of $92.5 million, net of depreciation and Post Retiree Medical Benefits, are generated from the following activities:

306

Administration is projected to generate a deficit of $5.3 million plus thewithdrawal of funds from the VEBA Trust of $8.4 million and depreciation of $2.1million will be used to pay for the capital projects of $2.8 million.

Real Estate (Innovation Village, Building Rentals & Faculty Housing) is projectedto generate a surplus of $14.0 million plus the non-cash depreciation of $7.7million to repay the capital request of $1.4 million.

Investments are projected to generate a surplus of $24.3 million. Bookstores are projected to generate a surplus of $4.0 million plus the non-cash

depreciation of $1.7 million to pay for the capital request of $615 thousand. Dining Services are projected to generate a surplus of $13.0 million plus the

non-cash depreciation of $4.3 million, financing of the dining commons of $15.0million and the capital reserve withdrawals of $14.6 million to pay for the capitalrequest of $24.6 million (includes the dining commons of $15.0 million), and paythe principal debt payments on the 2018 series bonds of $7.0 million and on the2021 series bonds of $5.2 million.

Kellogg West is projected to generate a surplus of $666 thousand plus the non-cash depreciation of $660 thousand and the capital reserve withdrawals $5.1million to pay for the capital request of $5.2 million.

University Village is projected to generate $35.5 million plus the non-cashdepreciation of $19.5 million used to pay the capital request of $5.6 million andprincipal debt payments on the 2013 and 2014 series bonds of $9.6 million.

Supplemental Programs are projected to generate a surplus of $6.4 million plusthe non-cash depreciation of $1.4 million to repay the balance on the CTTi’s2017 series bonds of $1.5 million.

Non-cash transactions for the ten years ended of $38.1 million include depreciation of $37.4 million and post-medical retirement benefit accrual of $739 thousand.

The surpluses from operations of $92.5 million plus the non-cash transactions of $38.1 million generate cash from operations of $131.6 million for the ten years ended.

Financing activities from the issuance of bonds generates $15.0 million to finance a portion of the construction costs for the dining commons at the Campus Market Place.

Reserve draw-downs generate $23.0 from the capital reserve and Post Retiree Medical Benefit Trust for reimbursement for Medicare eligible retiree insurance premiums.

The majority of the capital project requirements of $40.1 million are for the construction costs for the dining commons and renovations and upgrades as follows:

Administration will require $2.8 million for upgrades to Bldg # 55, includingexecutive conference room furniture and carpet replacement. Kronos Dimensionsupgrades, Windows10 and desktop upgrades, analytics licensing and consultingservices upgrades, financial system improvements-OneSolution upgrades, CDDto Cognos report conversion, Storage Workspace remodel, Mobile DeviceManagement installation, Event and Space Management installation, Credit CardMonitoring Software upgrades; Odyssey Activity Module installation, Travel

307

Expense Management-Concur software installation, and OkiDate printer purchase;

Real Estate will require $1.4 million for HVAC replacement, Interior paint andcarpet replacement for Building #A and #B, Wayfinding signage, Street slurryseal and stripe, Corner monument rehab;

Bookstore will require $615,000 for Inventory Control System and Point of SaleSystem upgrades, the new floor for downstairs area of the bookstore, and theconversion of old lighting fixture to new energy saving LED lights;

Dining Services will require $24.6 million for the renovation of dining commons atbuilding #97, cash register end-of-life replacement, POS/Micro market/Biometricsinnovation initiatives;

Kellogg West Conference Center and Hotel will require $5.2 million forconference center upgrades & refurbishment including the meeting rooms carpetreplacement, and the roof replacement of several buildings, 3-phase remodel ofall guestroom bathrooms, remodel and renovation of the Crestview pool and thefitness center & hospitality suite, Conference Center front lobby and dining roomremodel, meeting rooms carpet replacement;

University Village will require $5.6 million for refurbishment/replacement of 32apartments yearly, apartment furniture replacement, interior painting, waterheaters Phase 1 & 2, kitchen stoves replacement, kitchen refrigeratorsreplacement, HVAC heat pumps Phase 1, HVAC heat pumps Phase 2, roofreplacement Phase 1 & 2, exterior painting Phase 3, refurnish community andrecreation centers, deck rehab all Phases, and exterior paint "Touch-Up" Phase1 & 2.

The financing activities of $23.3 million represent principal payments per the debt amortization schedules as following:

Principal debt obligations for the CTTi 2017 series bonds of $1.5 million; Principal debt obligations of University Village Phase III 2013 and 2014 bond

series of $9.6 million; and Principal debt obligations of Residential Dining Commons Facility 2018 & 2021

bonds series of $12.2 million.

The Designated Gifts on behalf of the University for the President’s public relations, the Division of University Development and the Office of Research and Sponsored Programs are projected to increase 5% each year for a total of $22.4 million.

The projected reserve drawdowns are $23.0 million and contributions of $34.6 million are as follows:

Agriculture Program Reserve has a current balance of $53,705 and there are noforecasted contribution and the withdrawal of $14,750; and the projectedcontribution of $28,600 without projected withdrawal, thus the projected balanceis $53,705;

Cafeteria State Share Reserve has a current balance of $182,062 and there areno forecasted or projected contributions and withdrawal; thus the projectedbalance is $182,062;

308

Capital Reserve has a current balance of $6.6 million and there are forecastedcontributions of $951,595 and withdrawals of $20,000; and proposedcontributions of $1,001,452 and withdrawals of $132,835; and projected annualincreases of 3% for a total of $11.8 million offset by $14.6 million projectedwithdrawals for capital requests; thus the projected balance is $5.6 million versusa goal of $6.0 million;

Emergency Reserve has a current balance of $120,152 and there are noforecasted or projected contributions or withdrawals; thus the projected balanceis $120,152;

Indirect Cost Disallowance Reserve has a current balance of $346,406 and thereare no forecasted or projected contributions or withdrawals; thus the projectedbalance is $346,406 equal to the goal;

Innovation Village Demo Reserve has a current balance of $82,788 and there areforecasted and proposed contributions of $11,777 and $11,956 and projectedannual contributions of $349,000 and no withdrawals; thus the projected balanceis $455,521;

Insurance Reserve has a current balance of $111,761 and there are forecastedand proposed contributions of $34,315 and $51,201 and no forecastedwithdrawals; thus the projected balance is $197,277;

Pine Tree Ranch Reserve has a current balance of $90,886 and there areforecasted and proposed contributions of $30,000 and $29,114 offset by$75,000 proposed withdrawals; thus the projected balance is $75,000 equal tothe goal;

Post Retiree Medical Benefit Reserve is a current net OPEB (GASB) asset of$1,319,820, plan assets of $7.3 million versus an actuarial accrued liability forbenefits obligation of $14.7 million; contributions to the Voluntary EmployeeBeneficiary Association (VEBA) are forecasted and proposed to be $2.0 million,projected to be $5.0 million and withdrawals are projected to be $8.4 million; thusthe net assets are projected to be $16.4 million at June 2029 equal to the goal;

CalPERS Pension Plan has the additional proposed contribution $912,327 to the 2%@55 Plan, and the projected $9.1 million contribution; there are projected contributions of $124,807 to the 2%@60 Plan and $136,630 to the 2%@62 Plan;

Research and Sponsored Program reserve has a current balance of $51,137 andthe forecast and proposed budgeted contributions of $40,000 with no withdrawalsand no projected contributions or withdrawals; thus the projected balance is$91,137;

PARS 457(b) Deferred Compensation Plan offers cash incentives to full timeemployees hired on or after March 1, 2009, for the purpose of encouragingemployment longevity. These cash incentives would be contributed directly in tothe PARS 457(b) Deferred Compensation Plan and start in 2019 and theprojected payments for the ten years is $1,207,000;

Residential Board Meal Program Surplus Reserve has a current balance of$3,000,370 and the forecast and proposed budget contributions are $517,733and $351,140; and withdrawals of $80,000; thus the projected balance is$4,145,000;

Venture Capital/Real Estate Reserve has a current balance of $1,924,526, thereare forecasted contributions of $543,768 and withdrawals of $500,000; and

309

proposed contributions of $572,258 and withdrawals of $500,000, and projected annual increases of 1% for a total of $3.5 million and no withdrawal; thus the projected balance is $5,594,552 versus a goal of $6,000,000.

The assumptions, estimates, forecasts and judgment by the management and directors of the Foundation are subject to risks and uncertainties over which there may not be control that could cause actual results to differ materially.

Factors that might cause such a difference include; unfavorable economic conditions, including ramifications of additional terrorist attacks and war, increased operating costs, shortages of qualified personnel, strikes, costly compliance to new regulations, risks associated with providing services to international markets, risks associated with expansion and renovations, competition (on and off- campus), decline in enrollment and use of campus facilities, unpredictability of completion of construction projects, employment and liability claims against the Foundation, proposals which are not awarded for grants and contracts and environmental liability and regulations.

310

Cal Poly Pomona Foundation, Inc.Long Term Cash Plan/Reserve 17-18 18-19 Reserve

(000's) Actual Actual Actual Forecast Budget Projections Balances Reserve2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019 2020-29 2029 Goal

SOURCES OF CASH

Excess of Revenue over Expenses

Adminstration (1,138) (803) (533) (533) (533) (533) (533) (533) (533) (533) (533) (533) (5,330)

Real Estate 621 169 805 1,063 1,091 1,385 1,410 1,418 1,423 1,780 1,809 1,831 14,015

Investments 2,169 1,838 1,930 2,026 2,128 2,234 2,346 2,463 2,586 2,716 2,851 2,994 24,274

Bookstores 434 320 400 400 400 400 400 400 400 400 400 400 4,000

Dining Services 1,226 1,187 1,131 1165 1200 1236 1273 1311 1351 1391 1433 1476 12,967

Kellogg West - Hotel & Conference 79 70 75 18 8 70 75 80 80 85 85 90 666

University Village 2,436 3,039 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000 35,500

Supplemental Programs 347 662 570 584 598 613 628 642 658 674 691 707 6,365

Unrestricted Campus Programs - - - - - - - - - - - - Total Surplus (Deficit) - Operations 2,825 737 6,873 6,174 6,482 7,478 7,923 8,192 8,805 9,099 9,381 9,665 10,313 10,636 10,965 92,457

Non-cash transactions

Adminstration 168 212 212 212 212 212 212 212 212 212 212 212 2,120

Real Estate 774 773 773 773 773 773 773 773 773 773 773 773 7,730

Bookstores 142 167 167 167 167 167 167 167 167 167 167 167 1,670

Dining Services 518 432 432 432 432 432 432 432 432 432 432 432 4,320

Kellogg West 53 66 66 66 66 66 66 66 66 66 66 66 660

University Village 1,861 1,948 1,948 1,948 1,948 1,948 1,948 1,948 1,948 1,948 1,948 1,948 19,480

Supplemental Programs 123 138 138 138 138 138 138 138 138 138 138 138 1,380

Depreciation 4,168 4,011 3,782 3,639 3,736 3,736 3,736 3,736 3,736 3,736 3,736 3,736 3,736 3,736 3,736 37,360

CalPERS Unfunded Accrued Liability Adjustment 705 - - - - - - - - - - - -

GASB 45 - Post Retiree Medical Benefits 614 785 732 207 (10) 166 132 106 85 68 54 43 35 28 22 739

Total Non-cash transactions 4,782 4,796 4,514 4,551 3,726 3,902 3,868 3,842 3,821 3,804 3,790 3,779 3,771 3,764 3,758 38,099

TOTAL CASH GENERATED FROM OPERATIONS 7,607 5,533 11,387 10,725 10,208 11,380 11,792 12,034 12,626 12,903 13,171 13,445 14,083 14,400 14,723 130,556

Financing Activities

Dining Commons - Bond Financing 15,000 15,000

Total Financing Activities - - - - - 15,000 - - - - - - - 15,000

Reserve Draw Downs

Capital Reserve 86 1,469 733 20 133 4,928 956 984 1,014 1,044 1,076 1,108 1,141 1,175 1,211 14,638

Venture Capital Real Estate Reserve 500 500 500 500 -

Pine Tree Ranch Reserve - - 75 -

Agriculture State Share Reserve - 15 - -

Residential Board Meal Program Surplus Reserve - - 80 -

Withdraw of funds from Post Retiree Medical Benefit Trust 373 393 473 487 487 654 688 740 776 824 858 911 934 979 1,028 8,392

Total Reserve Activities 459 2,362 1,706 1,022 1,275 5,582 1,644 1,724 1,790 1,868 1,934 2,019 2,075 2,154 2,239 23,030

TOTAL SOURCES OF CASH 8,066 7,895 13,093 11,747 11,483 16,961 28,436 13,758 14,416 14,771 15,105 15,464 16,159 16,555 16,962 168,586

311

Cal Poly Pomona Foundation, Inc.Long Term Cash Plan/Reserve 17-18 18-19 Reserve

(000's) Actual Actual Actual Forecast Budget Projections Balances Reserve2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019 2020-29 2029 Goal

USES OF CASH

Adminstration 209 422 245 350 378 275 240 204 271 263 270 275 2,770

Real Estate 443 383 110 348 339 89 80 77 75 75 75 135 1,403

Bookstores 378 263 15 15 310 15 35 35 10 10 135 35 615

Dining Services 775 1,203 6,665 15,251 203 1554 81 93 125 181 213 215 24,581

Kellogg West 485 291 350 750 700 400 400 400 200 750 750 475 5,175

University Village 393 400 487 467 541 556 545 570 615 510 655 620 5,566

Supplemental Programs 178 303 -

Capital Project Requirements 5,463 5,628 498 2,861 3,265 7,872 17,181 2,471 2,889 1,381 1,379 1,296 1,789 2,098 1,755 40,110

Principal - Village Phase III Bonds 2005 625

Principal - CTTi Bonds 2007 195 205 215 -

Principal - Village Phase III Bonds 2013 & 2014 625 660 695 725 765 805 845 890 935 985 1030 1085 1095 1145 9,580

Principal - CTTi Bonds 2017 A & B 190 215 225 235 255 265 275 290 1,545

Principal - Dining Commons Bonds 2018 530 570 600 640 680 720 760 800 840 880 7,020

Principal - Dining Commons Bonds 2021 456 480 512 544 576 608 640 672 704 5,192

Financing Activities 820 830 875 885 940 1,520 2,066 2,180 2,307 2,434 2,571 2,398 2,525 2,607 2,729 23,337

Designated Gifts 1,710 1,209 1,050 1,578 1,697 1,782 1,871 1,964 2,063 2,166 2,274 2,388 2,507 2,633 2,764 22,412 Other Changes- see note

Agriculture Program Reserve 29 - 68

Cafeteria State Share Reserve - 182

CalPERS UAL 10-yr Amortization Model 610 1,174 781 724 650 608 626 645 664 684 5,382 7,166

Capital Reserve 509 858 1,978 952 1,001 1,031 1,062 1,094 1,127 1,160 1,195 1,231 1,268 1,306 1,345 11,820 5,616 6,000

Emergency Reserve - -

Indirect Cost Disallowances Reserve - - -

Innovation Village Demo Reserve 9 7 11 12 12 30 32 33 34 35 35 36 37 38 39 349 456

19Insurance Reserve 44 - 34 51 - 197

Pine Tree Ranch Reserve 30 29 - 150 75

Post Retiree Medical Benefits Trust 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 5,000 16,361 16,361

Foundation Longevity Pay Plan/PARS 457 Plan 2 12 33 57 87 116 162 211 247 280 1,207

Research & Sponsored Programs Reserve 10 20 20 20 20 - 91

17Residential Board Meal Program Surplus Reserve 571 31 851 518 351 362 372 384 395 407 419 432 445 458 472 4,145 7,934

Venture Capital/Real Estate Reserve 505 490 559 544 572 578 583 589 595 601 607 3,554 5,595 6,000

Reserve Contributions 2,604 2,450 4,419 3,720 4,239 3,784 3,786 3,783 3,816 3,917 3,018 2,525 2,645 2,049 2,136 31,457 43,924 28,436

Total Uses of Cash 10,597 10,117 6,842 9,044 10,141 14,958 24,903 10,398 11,075 9,897 9,242 8,607 9,465 9,387 9,384 117,315 Net Change in Cash (2,531) (2,222) 6,251 2,703 1,342 2,004 3,532 3,360 3,341 4,874 5,863 6,857 6,693 7,168 7,578 51,271

Cash Available 10,197 7,975 14,226 16,929 18,271 20,275 23,807 27,168 30,509 35,383 41,246 48,103 54,796 61,964 69,542 69,542

Minimum Two Month Working Capital Reserve Required 7,363 7,947

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2018 2019 - cal poly pomona foundation, inc. - home reports/budget1819.pdfnov 01, 2018 · the cal...

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