FRMC to hire 3 new officers w/ $300K surplus

FRMC gets $38 million bailout, which resulted in a $300,000 surplus so time to hire new people.

Ref:  http://www.timesunion.com/business/article/SUNY-Poly-s-real-estate-arm-hiring-CFO-others-12449809.php

Ref:  http://www.lohud.com/story/news/politics/politics-on-the-hudson/2017/11/28/suny-poly-fiscal-woes/108098382/

Ref: https://www.timesunion.com/business/article/Despite-need-for-bailout-SUNY-Poly-real-estate-12426966.php

Fallout: GE pulls out of PEMF

GE is ending partnership w/ PEMF (power electronics manufacturing corporation). 

What does that mean for CNSE/Danfoss?
Does it make any sense for SUNY Poly to be a chip manufacturer?

Ref: http://www.timesunion.com/business/article/GE-ending-partnership-with-SUNY-Poly-on-power-12455499.php#photo-10902296

FSMC 2017-2018 Budget

FRMC 2017-2018 Budget

$38.5million grant used to pay principal ($38.2 million)?

Update: $25 million SUNY loan approved but not received

$25 million loan (not grant) approved by SUNY not received.  Budget and financial plan not completed.

https://www.timesunion.com/business/article/SUNY-Poly-has-yet-to-receive-25-million-loan-12406964.php

SUNY RF Data: Operating Plan page 16

2017-----264.2 million
2018-----168.2 million

https://www.rfsuny.org/media/RFSUNY/Documents/Reports--Publications/Operating-Plan/FY-2018-Operating-Plan.pdf

Fallout: Film Hub in Syracuse

Cor sues FSMC for  almost $1 million in back rent.

Ref: http://www.syracuse.com/business-news/index.ssf/2017/10/cor_sues_central_new_york_film_hub_for_almost_1_million_in_back_rent.html

Fallout: $25m loan from SUNY

Loan from SUNY to SUNY Poly--$25 million.  Contingent on producing a 3-yr budget.

ref: http://www.timesunion.com/news/article/SUNY-trustees-approves-25-million-loan-to-SUNY-12194192.php

SUNY Letter requesting $25 million loan.  Repayment not to exceed 10 years.  Contingent on $207.5 from NY State Urban Development Corporation.  Contingent upon SUNY Poly providing a 3-year income and budget plan which includes an outline how SUNY Poly remedies their financial issues.

ref: https://www.suny.edu/about/leadership/board-of-trustees/meetings/webcastdocs/Tab10_University%20Loan%20for%20SUNY%20Polytechnic.pdf

Fallout: CMOST (Children's Museum of Science & Technology)

CMOST Museum;  $100 million vision goes up in smoke

Ref:  http://www.timesunion.com/tuplus-local/article/Churchill-In-Albany-or-Clifton-Park-saving-11301119.php

Fallout: Kiernan Plaza

Another SUNY Poly (FRMC) building purchased in 2013 but apparently not developed.

Ref:  http://www.timesunion.com/7day-business/article/No-plans-yet-to-sell-Kiernan-Plaza-11300570.php

Fallout: Former Interim Dean sues SUNY Poly, SUNY RF

CNSE fomer interim dean sues SUNY Poly and SUNY RF (July 2017) alleging he was wrongly barred from leading sponsored research.

Ref:  http://thealt.com/2017/07/10/new-lawsuit-details-turmoil-at-suny-poly-research-foundation/

SUNY RF liabilities increase $250 million

SUNY RF liabilities (for 2015) increase $250 million after fixing lease agreement error for the Global 450 mm consortium.  Lease classification was changed from operating to capital lease.


Ref: http://www.timesunion.com/7day-business/article/SUNY-Poly-issue-forced-Research-Foundation-to-fix-11221799.php dated June 15, 2017.


Description of operating versus capital lease.--see link below

Ref:  http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AccPrimer/lease.htm

FSMC/FRMC formed by RF and SUNY Poly Institute Foundation ???

SUNY Poly Institute Foundation is involved in formation of FSMC and FRMC?  Didn't know that.

Ref: https://www.rfsuny.org/media/RFSUNY/Documents/Reports--Publications/Annual-Report/2015-16-Audited-Financial-Statements.pdf


Apparent foundation bylaws???:

https://cms-devel.sunyit.edu/home5/cmsfiles/foundation.bylaws/SUNY_Poly_Foundation_Bylaws_Approved_October_2015.pdf

Fallout: G450C Equipment

G450C project not extended; ends Dec 2016.  What to do with equipment worth $115 million?

1.  Will manufacturers buy it back?
2.  Offer it to other SUNY schools?
3.  Try to sell it to others.

Problems:  Equipment is one-of-a-kind since the standard  size is 300mm (not 450mm).  How many campuses have a clean room?  Equipment is difficult and costly to maintain.

http://www.timesunion.com/7day-business/article/NY-offering-G450C-tools-to-other-SUNY-schools-11166313.php

SUNY RF; NFX; FRMC; operating versus capital lease

Condition and Cause Unrelated to the administration of sponsored programs, including federal grants and contracts, The Research Foundation for The State University of New York (the RF) is party to a lease for space in the NanoFabXtension (NFX) facility from Fuller Road Management Corporation (FRMC), a related party. Noting they relied on source documentation and representations of the lessor at the time the lease was executed, management originally determined that the lease, as amended in 2012 and which is effective from January 1, 2013 through December 31, 2028, was an operating lease. In 2016, management determined, after considering the required accounting treatment of the lease under Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 840, Leases, and the terms in the written lease agreement, that the lease is a capital lease. As a result, in preparation of its financial statements as of and for the year ended June 30, 2016, the RF has restated its 2015 financial statements to properly account for and present the NFX facility lease as a capital lease. The restatement of the 2015 financial statements indicates the RF has a material weakness in its internal control over financial reporting. Here, the RF did not maintain an effective control over the review of contracts between the RF and FRMC, resulting in the execution of an agreement that did not contain all negotiated terms and conditions. The execution of the agreement without the appropriate vetting and authorization led to the RF not appropriately considering the written contractual terms of the NFX facility lease arrangement and, instead, relying upon representations of the lessor and other available information that supported what management believed were the intentions of the parties. This overreliance on information outside of the written contract prevented the correct assessment under GAAP, which would have been the contract’s classification as a capital lease, and instead resulted in operating lease accounting at that time and caused the improper deferral of certain non-federal revenues tied to lease expenses recognized.


Ref: https://www.rfsuny.org/media/RFSUNY/Documents/Internal-Audit/single-audit-report-fy2015-16.pdf    pages 140-141

Fallout: SUNY RF Losses

SUNY RF writes down $57 million of losses.

Ref: http://www.timesunion.com/7day-business/article/Research-Foundation-wrote-off-57-million-in-SUNY-11173316.php




Who is responsible for these losses?  SUNY Poly or SUNY RF?

"Policy

Each campus or other designated operating location is responsible for losses on any 
Research Foundation activity incurred as a result of action or inaction on the part of that location.
 Losses may be charged against annual location
 sponsored program income, location reserves, or other sources of funds available to the location.

The central office is responsible for any losses incurred by the Research Foundation
 not attributable to anyaction/inaction on the part of the campuses or other designated operating 
locations. Any such loss will be charged against corporate reserves."

Ref:  https://www.rfsuny.org/media/RFSUNY/Policies/ae_responsibility-losses_pol.htm

Editorial: Tech Plan must go Forward

It would help if someone or some entity would start gathering and publishing some summary statistics related to the "economic development" side of SUNY Poly".

How much did it cost to build all buildings?
Who are tenants of all those buildings?
Income statements
Net worth statements
How much money was borrowed?  From which banks?
How much is still owed?

What worked?
What didn't?


Ref: http://www.timesunion.com/tuplus-opinion/article/Tech-plan-must-go-forward-10858032.php

Chip Mecca Satus Questioned

Is the chip mecca now rudderless?  I'd argue it was always rudderless.  Big ideas, megalomania, tons of money, the promise of jobs giving (ultimately misplaced) hope.   Obvious from the start to many of us, but then we were never believed.

Missing from the beginning:  Truth, transparency, diversity, shared leadership, honesty, accountability.

Watching a slow-motion train wreck for two long years.   Learned a lot, both good and bad.


Ref:  http://www.timesunion.com/news/article/SUNY-Poly-s-status-as-semiconductor-10868270.php#photo-12145183

LED Factory in Dewitt Delayed

Ref: https://www.blogger.com/blogger.g?blogID=4770819562782671525#editor/src=sidebar

No Go on Biopharma Project

Never put all your eggs in one basket under the leadership of one person.


Ref: http://www.timesunion.com/tuplus-business/article/Lawsuit-from-Acacia-accuses-SUNY-Poly-of-leaking-10814593.php

Ref: http://www.timesunion.com/tuplus-business/article/GE-confirms-it-was-talking-to-SUNY-Poly-about-10864385.php

Acacia Lawsuit; AIM Photonics

AIM Photonics

Ref:  http://www.timesunion.com/tuplus-business/article/Lawsuit-from-Acacia-accuses-SUNY-Poly-of-leaking-10814593.php

450mm project

End of the 450mm project as of Dec 16.

Companies:  TSMC/IBM/Samsung

What happens to building for project:  NanoFAbX  building cost $251 million (Banks-M&T; Keybank) + $700 million for equipment (tools).

Ref:  http://www.timesunion.com/tuplus/article/Money-dries-up-for-another-SUNY-Poly-program-10847093.php