Minutes of the
NIU Board of Trustees
EXECUTIVE COMMITTEE
June 29, 1999

Agenda Item 5.a. — PeopleSoft Human Resource Systems Implementation
In 1997, Dr. Williams said, the university put forth a comprehensive plan to update and improve all financial, operational and human resource systems. This plan was to utilize the PeopleSoft software systems, first focusing on the financial system and then following up with the human resource module, and, later, with the student financial aid module. When the contract was negotiated for the financial system, provisions were made for an option to purchase the human resource module. Dr. Williams stated that this module provides position control, integrates with the new financial system and provides applicant tracking. It also provides certain services to all employees such as accessing their own files and making modifications to their W-2's. It includes an updated payroll system the provides capabilities regarding academic employment, 9-over-12 pay periods and effective dating of all data that comes through. One major component provides tax reporting for nonresident aliens, which has become a major issue for all universities that have international students. This system provides that next step relative to our overall strategy for upgrading all of our systems, Dr. Williams said, and it also projects us into the next century in terms of capabilities and management tools. Trustee Moser commented that by contracting the price of the human resource software along with the financial system three years ago, a significant savings had been realized. Dr. Williams said that was one of the key points of this purchase, which saved the university approximately $1.2 million over the course of ten years. Just in the price of the software alone, he said, the current market price is about 50% more than was negotiated. Trustee Moser asked if PeopleSoft was going to be able to handle this contract with all the pressure on the software system companies right now because of the Y2K situation and the intense pressure of new purchases between now and next year. Dr. Williams said that would be no problem. The university will make an outright purchase of the software with the necessary maintenance agreement and then contract with an outside consultant to provide the necessary implementation and training. We have had very good success with the firm that is providing these same services for our financial system, Dr. Williams said, and they would be a major candidate for providing the services necessary to install and implement the human resource system. We have a tried and true team that has been very effective, and I see no reason why it would not continue to be effective as we move into this next phase. In answer to a question from Trustee Myles President La Tourette said that the Controller's Office had been running dual systems which had slowed travel reimbursements. He stated that as soon as the new system was completed and implemented, it should only be a short while before these things are current.

The overall total budget for the financing model presented for approval was a little over $1.6 million. Because of our cash flow situation, Dr. Williams said, it is prudent for us to essentially finance this over a period of three years. The item gives up to five years in final negotiations of a financing package. This breaks up the cost over a period of years, he said, allowing the university to be able to afford the purchase and installation of this software, yet not strain our resources in doing so. PeopleSoft has been willing to offer financing for up to five years at a very attractive interest rate of just above 5.75%, and it might come in a little lower than that with final negotiations. The university requested Board approval of this acquisition pursuant to the overall strategy that was established three years ago.

Chair Boey asked if the PeopleSoft software had been proven. Dr. Williams stated that this same software had been installed at other universities throughout the Midwest. Dr. Williams also said that the university has performance criteria for both the software that is delivered and on its installation and implementation. These are the same protections that were in place for the financial system. They seem to be very appropriate, Dr. Williams said, and they seem to work very well.

Chair Boey asked for a motion to approve the acquisition of the human resource system from PeopleSoft. Trustee Moser so moved, seconded by Vice Chair Myles.

         Vice Chair Myles          Yes
         Trustee Moser               Yes
         Chair Boey                     Yes

The motion was approved.

As a matter of record, Dr. Williams said, I wanted to acknowledge the extra effort and work on the part of Messrs. Steve Pace and Al Mueller for bringing this package of very complicated systems together for us. As you know, he said, other schools in the state have had a tremendous amount of difficulty trying to implement financial systems and so forth and have not been successful. Northern has been able to do this, Dr. Williams said, precisely because of the expertise of the people that we have here at NIU. I wanted to mention those two names and that of Kathe Shinham as people who have worked to make this happen.

Agenda Item 5.b. — Division of Continuing Education - Conference Meeting Space
Dr. Williams stated that the Division of Continuing Education, under a contract with the Illinois Department of Human Services, provides direct efforts in support of the conferencing and training offered through that department of state government. This arrangement has been going on for several years and has been very successful. Northern actually administers all of their training and special seminar programs. This is done as a pass-through service. One very unusual event has been scheduled by the Department of Human Services for August 2000. Although that is approximately 14 months away, Dr. Williams said, because of scheduling, and the need to reserve hotel space, it is necessary to sign a contract now to provide a facility for their youth conference, which is a conference centered around communities and the young people within those communities. They expect as many as 1,700 professionals to attend this conference. The university requested Board approval to enter into a contract for the conference facility at a price not exceeding $700,000. This item was delayed in order to make sure that in executing such a contract, there would be no obligation or exposure of the university or the Board of Trustees with this obligation. We received verification of that in writing sufficient for counsel to give us a green light to proceed with this particular item, Dr. Williams said. Chair Boey asked for a motion to approve the conference meeting space contract for the Division of Continuing Education. Trustee Moser so moved, seconded by Vice Chair Myles. The motion was approved.

Agenda Item 5.c. — Center for Diversity Resources - Budget Revision
Item 5.c. provided for an increase in the budget for the construction of the Center for Diversity Resources. Dr. Williams said that the State of Illinois appropriated $450,000 for the construction of a diversity center on NIU's campus that would work in conjunction with Human Resource Services. The budget that was appropriated was not sufficient to provide for a minimal addition to the Human Resource facility. The plan calls for a 3,400 square foot addition and is very modest in the spaces provided — six offices and three training rooms. There is nothing elaborate in the construction. In fact, we went back through the budget after we discovered that the appropriation was short, Dr. Williams said, and went through the scope of the project making sure that we carried it down to the bare essentials yet had a functioning facility, in terms of the usage, the equipment and the facility itself so it would last. The university asked that the budget be increased by $150,000, which would come from existing repair and renovation funds that the university has been able to internally reallocate over the years. Counsel recommended that language also be added as part of this approval stating that the Board ratifies all previous actions pursuant to the construction of the Center for Diversity Resources. Chair Boey asked for a motion approving the budget revision for the Center for Diversity Resources. Vice Chair Myles so moved, seconded by Trustee Moser.

         Vice Chair Myles           Yes
         Trustee Moser                Yes
         Chair Boey                      Yes

The motion was approved.

There being no Other Matters, Chair Boey asked for a motion to adjourn. Trustee Moser so moved, seconded by Vice Chair Myles. The motion was approved. The meeting was adjourned at 10:23 a.m.
 
Respectfully submitted,

Sharon M. Mimms
Recording Secretary