California State University, Fresno

Foundation

2017-18

Budget

Approved by Board of Governors June 9, 2017

California State University, Fresno Foundation

2017-18 Budget

Introduction

The mission of the Fresno State Foundation is to advance the University's strategic objectives by encouraging philanthropy, inspiring leadership and promoting fiscal accountability.

The annual budget is a financial plan that reflects the various activities of the Foundation including post-award administration of sponsored programs, scholarship and loan funds, management of the endowment, acceptance of philanthropic gifts and grants, and other activities undertaken by the Foundation for the benefit of California State University, Fresno.

The sources of revenue for the Foundation are dependent upon funds received from indirect cost recovery earned on sponsored programs (grants and contracts), market performance of the endowment (endowment administrative fees), and earnings on non-endowed cash.

Management services are provided centrally by the California State University, Fresno Association, Inc. so that each campus auxiliary organization can benefit from staff expertise in accounting, legal, human resource management, including staff support to the Board of Governors.

2016-17 Accomplishments

1. Completed timely submission (September 16th) of the annual audited financial statements with an unqualified opinion and no findings on the Uniform Guidance audit of Federal funded sponsored programs.

2. In collaboration with the Division of Research and Graduate Studies, provided post­award administration on $36 million of grant and contract activity.

3. While sustaining an endowment pool of over $139 million as of June, 2017, provided over $7.5 million of financial support to the University during 2016-17.

4. Updated the Foundation's Investment Poiicy Statement to include an ESG Fund (through Imprint Capital) for donors who wish to have their gift funds invested in a socially responsible manner.

5. Due to positive market performance, earnings on non-endowed cash exceeded projected budget, which will help to increase amount of reserve funds.

6. Modified Bylaws to increase Board size to 38 in preparation for next comprehensive campaign.

7. Provided a LEAD training session for campus departments that focused on post-award administration of sponsored programs as well as Foundation trust accounts.

8. Successfully negotiated the renewal of the Trinity Loan to provide nursing scholarships for the College of Health and Human Services.

9. Initiated efforts to begin planning to implement SunGuard OneSolution software to replace our antiquated JD Edwards accounting software.

2017-18 Goals

1. Continue to meet with client focus groups (including Pis) in an effort to continue to obtain feedback on areas of service and process improvement.

2. Work closely with our external CPA firm towards timely completion of our audited financial statements by September 15th.

3. Continue to identify and invest in professional development and training for staff.

4. Complete recommendations from CSU Department of Audit and Advisory Services' audit of sponsored programs/post award by October 1, 2017.

5. Work closely with the Board of Governors to implement initiatives that benefit the University and our students (i.e. support of fundraising activities, increase exposure of New California LLC).

6. Continue the discussion of Responsible Investing with Advancement, student leaders, our investment advisors, and our donors.

7. Continue to work to complete the implementation in 2017-18 of our new OneSolution accounting software.

2

CALIFORNIA STATE UNIVERSITY, FRESNO FOUNDATION 2017-18 FOUNDATION BUDGET

INCOME: Indirect Cost Recovery Trust Account Handling Charges Miscellaneous Income Earnings on Non-Endowed Cash Endowment Administrative Fee

Total Income Without Gift Assessment Fees:

Gift Assessment (Development):

EXPENSES: Personnel:

Salaries Student Assistants Benefits Benefits (Retirees)

Audit Fees Board/Committee Meetings Consultants/Special Projects Corporate Mgmt Services Fee (Association) CSU Trustee Scholarship Depreciation Dues/Memberships/Subscriptions Equipment Leases Employee Recruitment Insurance Legal Expense (External) ~

Legal Fees - General (Corporate) Legal Fees- Employment Legal Fees- Sponsored Programs/Patents Legal Fees - Gifts/Development

Licenses, Permits, Fees Miscellaneous Office Supplies Postage Repairs, Maintenance & Janitorial Software Travel/Training Telephone Utilities Advancement Gift Assessment University Indirect Costs

Total Income:

Total Expenses:

Projected Surplus:

Less Allocation to Sponsored Program Reserve: Less Distribution to University:

Net Surplus:

General Fund Reserve balance at June 30, 2016 Total Unallocated Surplus, 2013-14 through 2015-16

June 30, 2016 General Fund Reserves and Unallocated Surplus

2014-15 Actual

$2,410,345 331,374

352 636,255

1,561,000

4,939,326

a 4,939,326

625,578 32,101

291,922 107,509 50,750

9,510 2,650

698,944 6,000

38,712 7,924

17,749 706

51,818

163 258

2,893 0

10,991 5,052

27,459 10,361 26,300 30,287

7,154 7,799

22,644

341,872

$2,435,106

$2 504,220

$7,821 $2,150,000

$346,399

2015-16 2016-17 Actual Budget

$2,904, 798 $2,500,000 247,408 249,000

247 0 -1,003,682 465,000 1.561,000 1.561 .000

3,709,771 4,775,000

0 0 3,709,771 4,775,000

639,108 622,556 39,059 41,000

307,401 322,001 108,455 100,000 56,304 65,000

9,335 9,500 250 5,000

698,073 711,185 6,000 6,000

38,802 38,611 7,834 8,125

20,894 23,000 57 1,000

56,474 81,410

228 2,000 3,192 75,000

0 3,000 0 2,000

11,269 14,316 1,732 6,000

28,339 25,000 7,261 10,000

20,284 30,000 26,040 27,250

3,473 6,500 7,250 7,500

23,536 22,000 360,000 360,000 320,000 0

$2,800,650 $2,624,954

$909,121 $2,150,046

$0 $0 $2,150,000 $2,150,000

-$1,240,879 $46

2017-18 Budget $2,500,000

249,000 0

825,000 1,561 ,000

5,135,000

0 5,135,000

-

630,644 47,000

303,624 100,000 67,000 10,500 5,000

722,934 6,000

25,635 9,100

23,500 2,200

106,897

2,000 10,000 3,000 2,000

14,300 6,000

27,200 9,000

27,000 27,250 6,500 7,500

24,600 360,000 320,000

$2,906,385

$2 228,615

$0 $2,150,000

$78,615

$2,089,906 $1,035,356 $3,125,262

Variance (unfav) 2017-18 vs.

2016-17 Budget $0

0 0

360,000 0

360,000

0 360,000

(8,088) (6,000) 18,377

0 (2,000) (1 ,000)

0 (11,749)

0 12,976

(975) (500)

(1,200) (25,487)

0 0

65,000 0 0

16 0

(2,200) 1,000 3,000

0 0 0

(2,600) 0

(320,000)

(281 ,431)

78,569