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JUNE 2011 s ISSUE NO. 138

Board Insights provides communication on a range ofactivities that are taking place in the Foundation.

The objective of this publication is to provide boardmembers with opportunities to learn more about the

Foundation and strengthen communication.

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When he created our summer seasonal menu for the Kellogg West Restaurant, Chef Jose made sure he kept someof the old favorites such as his famous Smoked Gouda Potatoes Gratinée, Grilled Pacific Salmon, and Tri-Tipdrizzled with merlot demiglace. The seasonal summer menu features upscale barbecue items and authenticregional dishes with a focus on integrating local produce such as sweet corn, summer squash, and smoked chiles.Additionally, the summer menu incorporates a vegetarian entrée as a standard menu item. This seasonal menuwill be available through August 31, 2011; Watch for exciting new seasonal menus each quarter that will featurefresh, local California-grown produce.

Our lunch menus areserved buffet style witha variety of freshly madesalads, soups, and din-ner rolls. A self-servedeli station is also avail-able for our guests tomake their own sand-wiches. Dessert and bev-erage are included withthe price of your $10.95meal.

These menus were devel-oped with the needs ofour hotel and conferenceguests in mind, but weknow many in the cam-pus community wouldalso enjoy these selec-tions. We welcome thecampus community todine with us! Be sure tocall 909-869-2250 forreservations.

KELLOGG WEST RESTAURANT DEBUTSSUMMER SEASONAL MENU

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EXECUTIVE SUMMARYThe purpose of this article is to provide information related to the un-audited financial perform-ance of the Foundation for the month of May 2011. The Foundation generated a surplus for themonth less than budgeted mainly due to Designated Gifts, Unrestricted Foundation Programs,Dining and Agriculture offset by Continuing Education, Real Estate Development and Bookstoreoperations. Overall we are reporting a year-to-date surplus of $2.2 million versus the budgetedsurplus $34,077 due to the combined efforts of everyone’s attention to their operation’s activities.

ENTERPRISESSummary - For the monthended, the Enterprise opera-tions generated a surplusgreater than budget due to theefforts of each Enterprise oper-ation except Dining Serviceswhich was slightly under bud-geted surplus.

Bronco Bookstore – Revenueexceeded budget by 113% or$275,098 mainly due to hard-ware, soft good and gift sales,cost of goods sold is 81% ver-sus 77% of budgeted revenuesand salaries and expendituresis 32% versus 67% of budgetedrevenues. We forecasted a sur-plus of $414,019 and it appearswe will exceed the forecastedamount.

Dining Services – revenuesexceed budget by 10.4% or$155,171 due to Carl’s Jr., PolyFresh, Starbucks, Subway,Round Table, Freshens, VistaCafé and Kellogg West Dining,cost of goods sold is 36% ver-sus 33% of budgeted revenues.Salaries and expenditures is52% in line with budgeted rev-enues. Retail revenues exceedbudget by 21% or $81,125, costof goods is 37% versus 34% ofbudget and salaries andexpenditures are 38% versus41% of budget generating asurplus of $116,083 versusbudgeted of $96,379. Board operation revenues exceeded budget by 1% or $11,578, food costs are 38% versus 33% of budg-et, salaries and expenditures are 48% versus 50% of budget generating a surplus of $122,106 versus budgeted of $143,005.We forecasted a surplus of $143,988 and it appears we will exceed the forecasted amount.

Kellogg West Catering/Dining revenues exceed budget by 23% or $42,937, cost of goods is 35% versus 31% and salariesand expenditures are 60% versus 57% of revenues generating a surplus of $11,272 versus a budgeted of $22,080. KelloggWest Conference Center & Lodge – revenues exceed budget by 3% or $3,534 and salaries and expenditures are 90% ver-sus 105%, generating a surplus of $11,174 versus the budgeted deficit of $5,920. It should be noted that this month’s sur-plus generated a year-to-date surplus of $25,724 versus a budgeted deficit of $99,481 and a prior year-to-date deficit of$161,598 as year to date revenues have increased $54,226 or 4% and expenditures have decreased $134,383 or 10% over theprior year. This is a real turn around in a rather tough economy and industry. Congratulations to Cameron and the staffat Kellogg West Conference Center & Lodge. We forecasted a deficit of $43,169 and it appears we will generate a surplusamount.

University Village revenues are 96% or $30,695 short of budget, expenditures are 71% versus 74% of revenues generatinga surplus greater than budgeted as we budgeted 30% occupancy during the summer and 95% occupancy during the aca-

David Prenovost, CFO

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Enterprise Activities

Bookstore

Dining Services

Kellogg West

University Village

Sub-Total:

General Fund

Foundation Administration

Real Estate Development

Investments

Building Rental

Sub-Total:

Designated Funds

Other Activities

Research Office

Agriculture

Continuing Education

Campus Prog-Unrestricted

Sub-Total:

Net Surplus/ (Deficit):

$(106,341)

227,018

(5,920)

205,686

320,443

(69,117)

54,967

16,704

13,618

16,172

(92,887)

3,764

31,051

(57,065)

0

(22,250)

221,478

$(68,378)

183,444

11,174

225,549

351,789

(72,274)

98,508

22,681

7,873

56,788

(212,722)

2,096

9,528

22,429

(87,680)

(53,627)

142,228

$385,191

451,282

(99,481)

677,039

1,414,031

(814,079)

(179,606)

195,929

129,960

(667,796)

(1,213,517)

41,391

15,991

444,077

0

501,459

34,177

$37,963

(43,574)

17,094

19,863

31,346

(3,157)

43,541

5,977

(5,745)

40,616

(119,835)

(1,668)

(21,523)

79,494

(87,680)

(31,377)

(79,250)

445,130

307,776

25,724

1,267,134

2,045,764

(960,451)

619,772

373,528

131,185

164,034

(861,021)

43,056

67,157

716,530

54,640

881,383

2,230,160

Monthly Monthly Monthly Budget Actual Variance

For period ending  May 31, 2011 and 2010

Current Year Current YearBudget Actual

demic months and realized 45% occupancy over the summer and 94% occupancy during the academic year. We forecasted asurplus of $1,012,364 and it appears we will exceed the forecasted amount.

GENERAL ACTIVITIESGeneral Activities include administration, rental operations, real estate development, investments and faculty staff housingreported a surplus greater than budgeted due to the Real Estate Development which generated a surplus include EDA GrantFunds capitalized of $216,158 for the month and $568,996 year-to-date versus the annual forecasted amount of $536,955 that isnot included in the year to date budgeted amount. We forecasted a surplus of $122,882 and it appears we will exceed the fore-casted amount.

DESIGNATED EXPENSESDesignated funds include the President’s public relations and University Advancement’s outreach, communications, infra-structure and University-wide events to our alumni, friends and donors. Designated Funds generated a deficit greater thanbudgeted mainly due to expenditures in all uses of designated funds. In addition, we did distribute the President’s designatedgift from the 2009-10 suspended interest of $191,574 in November 2010. We forecasted Designated Expenses to be $1,021,949and believe we will come in below the forecasted deficit.

OTHER ACTIVITIESSponsored Research generated a surplus of $43,056 versus a budgeted surplus of $41,391 as indirect revenues exceed budget by$71,636 or 5.6% of budget due to an effective rate of 11.3% versus the budgeted rate of 10% and direct grant expenditures exceed-ing budget by 6.71% or $851,764. We forecasted Sponsored Research to be $45,152 and believe we will come in near the fore-casted amount.

Agriculture-Aid-to-Instruction revenues exceed budget by 3% or $5,616, cost of goods is 36% versus 23% of budget and payrolland expenditures are 59% versus 62% of budget generating a surplus versus a budgeted deficit due to the activities inAgronomy Farms, Pine Tree Ranch and the Farmstore. We forecasted a surplus $9,441 and it appears we will exceed the fore-casted amount.

Continuing Education includes nine programs from the College of the Extended University, College of Engineering and Collegeof Science. Revenues exceed budget by 128% or $114,836; payroll and expenditures are 89% versus 164% of budget generatinga surplus greater than budgeted mainly due to the English Language Institute, International Training and GIS CertificationPrograms. We forecasted a surplus of $442,101 and it appears we will exceed the forecasted amount.

Foundation Programs-Unrestricted includes the activities that are not third party donor imposed stipulations. Revenues exceedbudget by 95% or $324,469 and expenditures exceed budget by 79% or $269,829 generating a surplus versus a zero budget. Weforecasted a breakeven and it appears we may end the year with a surplus.Overall Foundation Programs (unrestricted and restricted) revenues exceed prior year’s by 71% or $5.4 million and expendi-tures are 92% or $573,841 less than prior year generating a surplus of $6.3 million due to the WK Kellogg donation of $2.0 mil-lion along with pledges of $4.4 million versus prior year surplus of $363,175.

If you have any question or need additional information please contact David Prenovost at dfprenovost@csupomona.edu or callhim at (909) 869-2948.

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The operating and capital budgets provide the University with convenient and appropriate goods and services at reasonableprices along with the development of additional assets and resources for the University. The budgets are subject to assump-tions, estimates, forecasts and judgment by the management and directors of the Foundation. The Foundation has usedsound business principles and practices to develop the budget that reflects the needs and obligations of the Foundation.

The proposed operating revenues of $47.5 million offset by the expenditures of $47.2 million generate a net surplus of$277,854. The proposed operating budgeted revenues are projected to increase $713,482 or 1.5% over the current year fore-cast due to Investments, Enterprise Activities and Supplemental Programs offset by the Economic Development Associationfunding forecast of $568,996 for Innovation Village. In arriving at this surplus, management recommends no changes tosalary grades and the continued suspension of the merit scale and a 9.42% contribution to the CALPERS retirement Risk Poolfor the pension plan. Employees hired after June 30, 2011, will fall under the 2%@60 Benefits Formula. Foundation’s contri-bution for these employees will be approximately 7.7% and these employees will contribute 7%. The Foundation will accrue13% to the Foundation’s defined benefit health care plan for retirees per actuarial studies and contribute $1.0 million to theVEBA Trust. The proposed debt service coverage beginning with the net surplus and adding back the designated gifts,depreciation and interest generates a proposed coverage of 2.85 and forecasted coverage of 2.95. The proposed budget andforecast meets the Foundation’s bond covenants that require the Foundation to not incur a deficit in any two consecutiveyears after adding back the designated gifts and arriving at debt coverage ratio of at least 1.25.

The proposed operating, non-cash transactions including depreciation, financing and uses of reserves as reported in the

2011-12 BUDGET HIGHLIGHTS

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Foundation invited as Guest Presenter for the AmericanPayroll Association (APA) Annual Congress

Employees from Foundation were invited as guest presenters for the American Payroll Association (APA) AnnualCongress in Salt Lake City to deliver a presentation titled “Technology Use for Best in Class Payroll Performance”.

Foundation was invited to present its success story regarding its implementation and continued use of the various fea-tures of the Kronos software for our Employment Services (formerly “Human Resources” and “Payroll”). Use of theKronos software in Foundation has allowed measurable improvement in the delivery of payroll services and commonemployment-based transactions. One easy example includes the payroll process: before implementing Kronos theprocess took about 4 work days and an equal number of employees to complete, whereas now it takes less than a daywith 1.5 employees, and this outcome is highly favorable for Foundation employees. But what most employees see istheir ability to go online and research their pay and benefits information from almost any computer with internetaccess – located anywhere, such as from their computer at home on the weekend.

Using Kronos self-service, employees can access their personal records such as their pay stubs, update data in real timesuch as their address, phone number, W4 withholding, direct deposit information, review benefits elections, checktheir vacation balances, and a list of other things. Speaking of vacation time - employees can also apply for time offusing the self-service functionality, which automatically generates an email request to the approving supervisor so thatperson knows their employee has made a request to vacation and it now requires action on the part of the approvingsupervisor. Once the vacation request has been approved, the process automatically sends an approval email to therequesting employee, and also populates thetimecard for the employee with the approvedvacation time. The entire process takes only afew seconds and requires no paperwork at all,and changes to vacation requests are just as easyand well documented - electronically.

Other improvements in Employment Servicesthat were discussed at the APA AnnualCongress include using a self-sealer machine forthose employees who continue to receive apaper check for their wages. Although employ-ees enrolled in direct deposit often get paid onWednesday morning and we continue to encour-age all employees to use direct deposit, thoseemployees who receive a paper check must waiton the postal service and often the checks do notarrive until the following Monday. The self-sealer process saves an average of 4 work hoursevery two weeks, and the payback period forpurchasing this tool was about 7 months.

We also discussed the I9 and E-Verifyprocess, which is fully automated througha service provider called Talx. Talx, whichis owned by Equifax, has partnered withthe Department of Homeland Security andthe Social Security Administration, andthat partnership helps keep us in full com-pliance and has allowed us to automate theprocess to verify and record this importantinformation.

The next process in Employment Servicesthat will become automated is the perform-ance management process. Once complet-ed, except for the much needed discussionsand coaching between the supervisor andthe employee, the part of the process thatrequires notifications and documentationwill be fully automated.

Dennis Miller, Foundation Director of EmploymentServices, delivers the presentation on TechnologyUse for Best in Class Payroll Performance

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On Thursday, May 19th, it was a fiesta-themed party as Foundation honored seven employees for their long-time loyal and dedicated service to Cal Poly Pomona Foundation, Inc. The retirement party was held atKellogg House Pomona. We are sad to say goodbye, but wish everyone the best of everything. Whether yourplans are to travel, spend more time with family, volunteer, or a second career, we hope retirement brings youall the happiness you’ve dreamed it to be.

We bid a fond farewell to:

, Marcia McGovern Bronco Bookstore 30 years of service, Maria Chacon Dining ServicesAdministration 23 years of service, Deb Matheson Bronco Bookstore 22 years of service, Jose Salazar Los Olivos 15 years of service, Rosemary Balderas Los Olivos 10 years of service, Carol Chua Los Olivos 10 years of service, Enrique Ruelas Kellogg West 7 years of service

Guests enjoyed traditional fiesta foods while min-gling with the other guests: family, friends,Foundation employees and even former Foundationcolleagues attended, joining in the celebration honor-ing these fine employees who have contributed somuch to the success of the Foundation.

RETIREMENT FIESTA HONORS OVER 115 YEARS OFLOYAL AND DEDICATED SERVICE TO FOUNDATION

Left - Right; Marcia McGovern,Deb Matheson, Carol Chua,

Rosemary Balderas, Jose Salazar,and Enrique Ruelas

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ACCOUNT NAME

Control of Cell Differentiation: Inhibition of Sperm ActivationARB Student Services 2009-2011

California Biotechnology Clinical Labnoratory Consortium ProjectSF6 Replacement Evalu in Magnesium Sand & Investment Casting

Migration of Chemicals in Reinforced Fiberglass Pipe

Awarding Agency

National Institute of HealthAir Resources Board

San Jose State Univ Research FoundationAir Resources Board

Ameron International Corporation

NewAwards

105,435 1,013,000

42,460 49,995 18,929

1,229,819

College/Division

ScienceAcademic Affairs

ScienceEngineeringEngineering

Schedule of New Grants, May 31, 2011ProjectDirector

Craig LaMunyonDon HoytJunjun Liu

Victor OkhuysenVilupanur Ravi

Summary of Sources of Cash, generates $5.0 million from the following activities:

• Operating surplus $ 1,661,741• Designated Gifts to the University (1,383,887) • Non-cash depreciation and amortization 3,627,641 • Non-cash retirement medical 818,865• Financing 262,640• Total cash generated $ 4,987,000

The proposed uses of cash of $5.4 million are for the following activities:

• Capital improvement requests $ 1,339,550• Capital improvement carry forward 1,156,610• Principle bond payments 905,000 • Contributions to reserves 2,025,623• Total cash used $ 5,426,783

The proposed capital budget request of $1.3 million is for Foundation Village Housing, Kellogg West ConferenceCenter and Lodge, Dining Services, Real Estate Activities, Administration and Agricultural Programs.

Shortly after acquiring a new airport shuttle van for Kellogg West, CameronEdmonds, Director of Kellogg West, decided that rather than the traditional logoand name on the side of the van, the would use the van to “market” Kellogg Westservices.

After looking into the various options the decision was made to use the newwrap technique that’s becoming increasingly used on vehicles ranging fromsmall cars to trucks to buses andeven semi-tractor trailers.

Monster Media, a Riverside,California company, was given thetask of coming up with a conceptdepicting the close proximityKellogg West has with the city, yethas tranquil woodland setting of ouruniversity campus. After manyweeks and many revisions, the fin-ished design, focusing on confer-ences and weddings, was finallyinstalled on the vehicle.

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2011-12 BUDGET HIGHLIGHTS

KELLOGG WEST SHUTTLE RECEIVES MAKEOVER

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Wednesday, May 25th, 2011 started out as an ordi-nary day for Sandy Cain, Manager of BroncoStudent Center. Her day was busy, making sure allcatering orders were complete and on-time, that herretail units were running smoothly before she left togo over the Building 55 for a routine meeting withBrett Roth.

Imagine her surprise when she opened the confer-ence room door and was greeted by a room full ofco-workers and many congratulatory words.

Staff Council receives numerous nom-inations each year of many staff mem-bers who are well deserving of thisaward by going the extra mile andexcelling in their job. Staff Councilhas the difficult job to choose just afew who will receive the award.

We congratulate all of the OustandingStaff for 2011; Sandy Cain, CassandraReyes, Victoria Key and German Reyes.

OUTSTANDING STAFF AWARD RECEIVED BY FOUNDATIONDINING MANAGER SANDY CAIN

Sandy Cain is congratulated by Rosie Pasos ofStaff Council

Sandy Cain shares the honor with currentFoundation Board Member Cassandra Reyes,

Victoria Key and German Reyes.

CPPDining.comww

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LEARN MORE AT

Please call Los Olivos at 909.869.3200 for this week’s hours of operation

Residential Suites - Building 52Vista Market Monday - Thursday 10:00am - 5:00pm

Denny’s Monday - Thursday 11:00am - 5:00pm

Los Olivos Dining - Building 70

June 20 - September 1, 2011

Building 35 - Bronco Student CenterSubway Monday - Thursday 7:30am - 5:00pm

Poly Fresh Market Monday - Thursday 7:30am - 5:00pm Freshens Smoothies Monday - Thursday 7:30am - 2:30pm

Peet’s Coffee Monday - Thursday 7:30am - 2:30pm

Kikka Sushi Monday - Thursday 9:30am - 3:30pm

CLA - Building 98Pony Express Monday - Thursday 7:30am - 3:00pm

Library - Building 15Starbucks Monday - Thursday 7:00am - 3:00pm

*Summer Dining HoursSummer Dining Hours

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Executive Chef Arnold Zavalza is always on the lookout for ways to improve the menu at Los Olivos,and for opportunities to educate the students about world flavors and traditions.

In keeping current with hot new food trends and cooking techniques, Chef Arnold hosted a specialevent on May 10th with guest chef Chef Myung Lee, Founder of the Culinary Institute of California(CIC) located in South Orange County, CA. Chef Myung Lee’s focus is to promote Korean food prepa-ration techniques, combined with the fundamental belief that all menu items should be prepared usingonly the finest ingredients and the freshest produce.

Chef Myung Lee is a former Iron Chef Challenger in the original Japanese TV show series “Iron Chef”and a regular instructor of Korean Food Arts at The Culinary Institute of America at Greystone in NapaValley. She recently returned from a food expo-sition held in Mexico City were she was theambassador of Korean Food representingSempio Food Services, Inc located in La Mirada CA.

In partnership with University Housing, LosOlivos provides monthly multicultural events.These events also provide an opportunity toexpand the culinary skills of the Los Olivosteam in the back of the house with the produc-tion of food with multiple influences, while gen-erating additional income with the increasedcustomer count obtained by inviting the univer-sity community to dine with us and experiencean extraordinarily unique menu.

In Higher Education, we are surrounded bypeople who are here to learn and improve them-selves, their communities and to build bridgesbetween cultures. This event gave us the oppor-tunity to do just that. We received positivecomments from some pretty happy vegetariansabout the great selection of non-meat optionsoffered during this event.With a large vegetarian stu-dent population, and withAsian food being so popularhere at Cal Poly Pomona, itcouldn’t have been a betterchoice to end the academicyear with this extraordinaryevent.

GUEST CHEF MYUNG LEE BRINGS UNIQUE MENU TOLOS OLIVOS

Hot new food trends and cooking techniques created lots of smiles at this event.

Los Olivos Executive Chef Arnold Zavalza with Chef Myung Leeand John Lee, Director of Sempio Foods.

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WHAT YOU SPEND ON CAMPUS … STAYS ON CAMPUS.

Surplus funds generated by all Cal Poly Pomona Foundation operations go back tothe University to provide financial and facility resources to benefit students, facultyand staff.

For more information, visit our website at www.Foundation.CSUPomona.edu

ANOTHER “GREAT YEAR” FOR ENHANCEMENT OF THE QUALITY OFLIFE IN THE UNIVERSITY VILLAGEResidents of the University Village recently completed the annual Quality of Life Survey for 2010-2011. Given on line, students were asked to give their opinion on a list of questions ranging fromsafety and security, customer service, ease of administrative and on-line bill paying options to theability to sleep and study without interruption. Questions regarding perceptions of staff integrityand effectiveness and living style options were also aspects of this important customer survey.

In comparison to previous years, students reported to being even more greatly satisfied with whatis being offered in Foundation housing. The basic yet essential living needs of safety, security,lighting, cleaning, hygiene, and maintenance scored most highly with those completing the sur-vey. Survey results indicate that those expressing their opinion believe that the Village providesgreat value for “their dollar”. Village residentshave expressed deep satisfaction with the serv-ices that they’re receiving as a member of thiscommunity.

According to the students, we’ve mostimproved this year in the areas of staffapproachability and enhancement of the physi-cal facilities The refurbishing of Phase II was a“big hit” with the students!. In addition, Villageefforts to both educate and promote sustain-ability have been successful as has been Villageefforts to “connect” the apartment communitywith the larger University community.

Overall, it’s clear that the combined efforts ofboth Village staff and students to offer the“best” housing possible on the Cal PolyPomona Campus has and will continue to be avery reachable goal. All of this “good news” iscertainly enhanced when over 80% of the stu-dents polled believe that they are a valuableasset to their community.