NORFOLK STATE UNIVERSITY

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NORFOLK STATE UNIVERSITY

• OPENING SESSION
• AUGUST 16, 2004
• DIVISION OF
• FINANCE AND BUSINESS

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OPENING SESSIONFINANCE AND BUSINESS

• ORGANIZATIONAL CHANGES
• SACS FINANCIAL MANAGEMENT OVERVIEW
• SIGNIFICANT ACCOMPLISHMENTS
• CURRENT ISSUES
• FUTURE GOALS
• CAPITAL UPDATE
• CONCLUSION

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ORGANIZATIONAL CHANGES

• Facilities Management
• Operations and Maintenance
• Capital Planning and Improvements
• Materiel Management
• Police Department
• Parking and Transportation
• Auxiliary Services

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(No Transcript)
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SACS Principles of Accreditation

• Overview of Financial Management Issues

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SACS Financial Management Overview

• Outline
• Review of Principles of Accreditation
• Core Requirement number 11
• Audit Management Issues
• Audited Financial Statements
• Management Letters
• Footnotes
• Financial Issues
• Balance Sheets
• Statement of Activities/ Budgeting
• Key Management Issues
• What questions should you be asking?
• Early warning signs
• Summary

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SACS Financial Management Overview

• Core Requirement Number 11
• The institution has a sound financial base and
  demonstrated financial stability, and adequate
  physical resources to support the mission of the
  institution and the scope of the programs and
  services.

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SACS Financial Management Issues

• The following financial statements are required
• Institutional Audit
• Annual Budget that is preceded by sound planning
• Statement of Activities (Revenues, Expenses, and
  Changes in Net Assets)
• Statement of Net Assets (Balance Sheet)
• Statement of Cash Flows
• A Statement of Financial Position that Excludes
  plant and plant related debt

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SACS Financial Management Overview

• Audit Management Issues
• Most Recent Fiscal Year (June 30, 2007)
• Written Management Letter
• Accompanies Audit
• Required even if no issues exist
• Footnotes
• Prior year adjustments
• Contingent Liabilities
• Going Concern Comment

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SACS Financial Management Overview

• Audit Management Issues
• A-133 Audits
• Compliance (Federal, State, Local, Institutional)
• Internal Control
• Schedule of Expenditures of Federal Awards
• Summary of Auditors Results

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SACS Financial Management Overview

• Financial Management Issues
• Balance Sheet Analysis
• Cash
• Accounts Receivable
• Property Plant Equipment
• Prove ongoing maintenance
• Accounts Payable

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SACS Financial Management Overview

• Balance Sheet Analysis
• Endowment
• Policy and Guidelines
• Spending Rate
• Borrowing
• What is in the Endowment?
• Real Estate
• Other Non-Liquid Assets
• Debt Management
• Policy
• Covenants

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SACS Financial Management Overview

• Statement of Activities
• Tuition Discounting
• Cash Flow
• Budgeting
• Preceded by Sound Planning
• Relationship to Actual
• Approved by Board of Trustees
• Sufficient Financial Resources

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SACS Financial Management Overview

• Key Management Issues
• Understanding Ratio Analysis
• Analyzing your Institution

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SACS Financial Management Overview

• Key Management Issues
• Early Warning Signs
• Audit
• Prior year adjustments
• A-133 Compliance (Grants)
• No clear audit opinion
• Lawsuits, especially vendor
• Material findings

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SACS Financial Management Overview

• Key Management Issues (continued)
• Early Warning Signs
• Balance Sheet
• Accounts Receivable
• Endowment borrowings
• Endowment used as collateral
• Large unpaid pledges
• Cash Shortfalls
• Deficit in unrestricted net assets

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SACS Financial Management Overview

• Key Management Issues (continued)
• Early Warning Signs
• Statement of Activities
• Operating deficits
• Revenue distribution
• Expense growth
• Tuition discounting
• Others
• Deferred Maintenance
• Unpaid Payroll taxes
• Financial officer turnover
• Backlog in retirement payment obligations

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SACS Financial Management OverviewSummary

• Get ready now!
• Analyze your Institution
• Ratio analysis
• Review Early Warning Signs
• Develop long-term plans to address problems
• Accounts Receivable
• Deferred Maintenance

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SACS Financial Management OverviewSummary

• SACS evaluates the quality of the institution
• Many characteristics of quality institutions
• Some visible, some less visible
• Outside observer may not easily see all
  characteristics
• Visible aspects
• Can see when grass is cut
• Can see if roof leaks
• Can see if restrooms are clean

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SACS Financial Management OverviewSummary

• Norfolk State University must invest in the
  maintenance, improvement, and expansion of
  physical facilities to survive and thrive as a
  quality educational institution and to be assured
  of SACS reaccreditation

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SACS Financial Management OverviewSummary

• Common fiscal and operational characteristics of
  model higher education institutions
• Financial stability
• collect tuition and fees
• Invest in physical facilities
• Strive for operational efficiency

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FINANCE AND BUSINESS PRIORITIES AND GOALS

• Service Oriented Attitude
• Operational Efficiency and Effectiveness
• Financial Accountability

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FINANCE AND BUSINESSSignificant Accomplishments

• Met all management standards for the institutions
  of higher education in Virginia for 2003-2004
• Unqualified Audit Opinion
• No significant audit deficiencies
• Compliance with financial reporting standards
• Accounts payable standard (prompt pay)
• Accounts Receivable standards (student financial
  aid)
• Accounts receivable standards (past due accounts)
• First time ever for NSU

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SIGNIFICANT ACCOMPLISHMENTS

• Reorganized Human Resources staff and functions
  to improve service to campus community
• Developed comprehensive background check policy
  for hiring of faculty and staff
• Implemented identification badge policy to
  improve campus safety
• Completed IFAS migration to Insight
• User friendly interface to financial system
• Completed upgrade to Colleague Release 17
• Improved functionality for student information
  system

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SIGNIFICANT ACCOMPLISHMENTS

• Completed master plan for the NSU campus and RISE
  Center
• Replaced roof on east wing of library
• Enhanced E. L. Hamn Building (Art Music) to
  include painting, lighting, electrical, carpentry
  and lock repairs
• Implemented turf grass maintenance program to
  promote green and healthy grass
• Developed specifications for new gatehouses at
  all major entrances

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SIGNIFICANT ACCOMPLISHMENTS

• Refurbished the Womens Restroom in Brown Hall to
  include painting, counter top, upgraded lighting,
  automatic flush valves and automatic sensor
  faucets
• Initiated comprehensive landscaping and planting
  to restore and beautify the Mall / Greek Row area
• Executed and implemented first phase of
  comprehensive energy savings program.
• Improved mechanical systems, lighting and
  fixtures, counter tops, toilets, flush valves
  throughout various campus buildings

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CURRENT ISSUES

• PAYMENT OF TUITION AND FEES
• Basic business principles
• Cannot spend what you charge but only what you
  collect
• Cannot provide goods and services without
  compensation
• Dont send the delivery man without approved
  payment terms
• Faculty deliver primary product academic
  instruction
• Housing
• Meals
• DIRECT DEPOSIT AND PAYLINE
• Operational Efficiency
• Convenience
• Access
• State initiative to charge agencies for check /
  stub production

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TUITION AND FEES

• Prior Balances must be paid before registration
  for subsequent semesters will be permitted.
• Satisfactory financial arrangements must be in
  place to meet costs of attendance for current
  semester.

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TUITION AND FEESFORMS OF PAYMENT

• Cash, check, credit card (visa, master card,
  discover) or money order
• May require certified funds
• Approved financial aid, scholarships, private
  loans, or third party sponsorships
• Approved installment payment plan

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TUITION AND FEES PAYMENT PLANS

• Academic Management Services (AMS) monthly
  payment plan. Monthly payments may be arranged
  for the academic year or for the semester. (If
  interested in this plan, contact AMS at 1 800 635
  0120).
• NSU offers a semester payment plan that requires
  50 of the balance at the time the plan is set up
  and a 50 application fee. (Students interested
  in a payment plan may find the AMS plan more
  flexible).

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TUITION AND FEES CANCELLATION OF SERVICES

• Students who do not pay balances in full or make
  satisfactory financial arrangements will have
  their classes and other services (housing, meals,
  etc.) canceled.

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TUITION AND FEES KEY DATES

• Returning Students
• August 20, 2004 - Satisfactory financial
  arrangements must be in place or classes and
  services will be canceled.
• September 3, 2004 - Last date to complete
  satisfactory financial arrangements to have
  services restored.

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TUITION AND FEES KEY DATES

• New Freshmen and Transfer Students
• - August 25, 2004 - Satisfactory financial
  arrangements must be in place or classes and
  services will be canceled.
• September 3, 2004 - Last date to complete
  satisfactory financial arrangements to have
  services restored.

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DIRECT DEPOSIT AND PAYLINE

• Effective September 1, 2004
• Required to receive pay through direct deposit
  account
• No pay checks or stubs after September 1, 2004
• All pay information viewed through States
  electronic Payline
• http//payline.doa.state.va.us
• Information available 4 days prior to payday
• Sign up before August 24, 2004
• Automatic enrollment after that date
• Submit banking information to payroll office
• Room 360B Wilson Hall
• CashPay option available for those without bank
  accounts

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DIRECT DEPOSIT AND PAYLINE CashPay

• A Visa-branded card that allows you to make
  purchases everywhere Visa is accepted, and to
  withdraw cash at ATMs worldwide
• Your pay is automatically deposited into your
  account by 9 a.m. on payday
• Instant access to your pay at Visa merchants,
  pinned POS locations and ATMs
• Eliminates high check-cashing fees and no more
  lines to wait in to cash your paycheck
• No requirements to withdraw entire paycheck at
  one time
• Automated account information and customer
  service 24 hours a day, 7 days a week
• For questions, contact Human Resources (823-8160
  or Payroll (823-2946)

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CAPITAL PROJECTS UPDATE
Teachers Education Renovation - Complete
renovation of the entire interior of building
including all mechanical, electrical, plumbing,
safety systems and finishes.
Substantial completion (occupation) December
7, 2004 Final completion (30 days to complete
punch list) January 7, 2005


                        
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CAPITAL PROJECTS UPDATE

• Phase I Robinson Technology Renovation (Optical
  Engineering Lab only) -
• The project consists of renovation of the
  existing metal shop, removal of all interior
  fixtures and the construction of engineering lab
  and/or research spaces
• Substantial completion (occupation)
  September14,2004
• Final completion
  October 14, 2004

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CAPITAL PROJECTS UPDATE

• Robinson Technology Renovation Phase II - This
  project includes removing all interior spaces and
  systems, for complete redesign of the entire
  building to meet accreditation requirements.

Receive Bid approval form BCOM
Sept 16, 2004 Advertise for Bids
Oct 20, 2004 Receive Bids Nov
20, 2004 Open Bids Nov 21,
2004 Award Bid/ Notice to proceed
Dec 12, 2004 Substantial Completion
Dec 28, 2005
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CAPITAL PROJECTS UPDATE

• Student Center Renovation and Addition - This
  project will add approximately 70,800 square feet
  to the south of the existing Godwin Center. The
  addition will add several multipurpose spaces,
  basketball courts, eateries, and a new fitness
  center. Also included in this project is the
  total renovation of the existing building,
  including mechanical systems, electrical, and
  plumbing.
• Presently in preplanning and preliminary design
  stage.

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CAPITAL PROJECTS UPDATE

• Woods Science Roof Replacement - Total
  replacement of the Roof is necessary. Several
  repairs have been completed in the past but still
  there are various leaks that must be addressed.
• Advertise for bid September 2004
• Award contract/ Notice to proceed
  October 2004
• Substantial completion January
  2005

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CAPITAL PROJECTS UPDATE

• Norfolk Community Hospital - This facility
  consists of 135,000 square feet of space, much of
  which is need of renovations. Some areas have
  been recently renovated. The building can be
  used to meet an immediate need for transitional
  space as we effect planned improvements to other
  campus buildings.
• Anticipated acquisition in August 2004

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CAPITAL PROJECTS UPDATE

• RISE Center Phase I - The RISE Center is an
  academic and technology support facility that
  will improve instructional and research
  capabilities related to science and technology.
• Advertise for Construction Manager _at_ Risk July
  15, 2004
• CM _at_ Risk firm selected October 15, 2004
• Construction begins December 2004
• Construction Completion
  January 2006

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CONCLUSION