The CSUS Foundation ran a surplus of almost $700,000 in thefirst fiscal quarter ending Sept. 30, with the Hornet Bookstorealone earning more than $1 million in profit.

The Foundation is a non-profit corporation and an auxiliaryorganization of Sacramento State that provides facilities,including the bookstore and campus-wide dining services. It alsoprovides contract services for the university, including payrolland administration for university research and sponsoredprograms.

Executive Director Elroy Littlefield reported that the netrevenue for the Foundation for the quarter was $1,428,640, comparedto the $743,670 that was anticipated.

The bookstore earned $69,000 more than was anticipated.

The Foundation board of directors heard reports from the Budgetand Finance Committee at their Dec. 5 meeting. The committeereported that bookstore sales were up due to an increase incomputer sales.

Dining services reported a loss of nearly $200,000, but thecommittee said the unit is on budget and anticipates to make profitby the end of the year.

Littlefield reported to the board on behalf of the Budget andFinance Committee.

“We have essentially doubled our budget,”Littlefield said.

The Office of Grants and Contracts Administration awards ProjectActivity Grants and provides employment opportunities for students.Littlefield said this division of the Foundation is doing well.

“Grants and contracts are over budget,” he said.”We are pleased but cautious. There are still concerns withthe state budget and how cuts will impact students.”

University Vice President for Administration Edward Del Biaggiosaid he agreed with Littlefield.

“The committee believes the Foundation is in a strongfinancial position,” Del Biaggio said.

Littlefield said he attributed the large profits in the firstquarter to the positive return on the investments held by theFoundation.

“Due to an unexpected improvement in the stock market, wehadn’t budgeted for those returns,” Littlefieldsaid.

The Foundation has withdrawn all its investments in tobaccostocks since June. Nancy Pennebaker, Foundation spokeswoman, saidthis was at the request of former President Donald Gerth.

“We had to pull out from huge investments that only had asmall part in tobacco companies,” Pennebaker said.”Some people were worried that we would lose money because ofthis, but we haven’t.”

The money taken out of tobacco stocks was reinvested. These newinvestments are doing better than the indexes that include tobaccoinvestments, said board chairman Doraiswamy Ramachandran.

At the meeting, a task force was set up to reviewrecommendations made to the Foundation by the biology departmentabout the management of the Goethe Funds. Charles M. Goethe donateda portion of his $24 million estate in 1966 to the Foundation forthe provision of loans to students – preferably in study of humangenetics.

According to the recommendations of board member and Dean ofCollege of Natural Sciences and Mathematics, Marion O’Leary,and Director of Grants and Contracts Administration Joyce HendricksLopes in a document given to the board, ten loans were made between1996 and 1998, but no further loans have since been made.

When asked by board member Rhonda Rios Kravitz why the loans hadstopped, O’Leary said that they had fizzled out for publicityreasons.

The newly established task force is made up of Ramachandran,O’Leary, Littlefield and community board member LaFenusStancell. The task force will review the recommendations and reportto the board by September of next year.

The board of directors of the Foundation has 14 members. Thefaculty, administrative and community members are appointed by thepresident of the university. The board has three student membersfrom Associated Students, Inc. – ASI President Peter Ucovich, Chiefof Staff Erin Hicks and Executive Vice President Julio Velasquez.Residence hall associate Angela Murdoch is the fourth studentmember.