[PPT] - Meeting of the Board of Visitors Audit, Compliance and Risk PowerPoint Presentation

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Meeting of the Board of Visitors Audit, Compliance and Risk Committee June 12, 2015

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G A RY N I M A X A S S I S TA N T V I C E P R E S I D E N T F O R C O M P L I A N C E A N D E N T E R P R I S E R I S K M A N A G E M E N T

ACADEMIC DIVISION ENTERPRISE RISK MANAGEMENT (ERM)

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Presentation Schedule of ERM Mitigation Strategies

Detailed Risk Review with Board of Visitors Management of human capital February 2015 (update with metrics in June) Legal compliance risks (federal/state/other) June 2015 Organizational Excellence June 2015 Sufficient funding/resources to achieve goals June 2015 Reputation with key stakeholders September 2015 Cybersecurity/leveraging IT September 2015 Safety/security of students, faculty and staff September 2015 Changes in higher education November 2015 Geo-political and economic risks November 2015

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Achieve Competitive Compensation

Risk Category Management of Human Capital Risk Description The University’s faculty compensation must be competitive with top AAU peers Risk Owner Provost Mitigation Strategies Currently in Place

At its February 2013 meeting the Board of Visitors approved a resolution supporting the goal of raising average

faculty salaries into the Top 20 among UVa’s Association of American University (AAU) peers by June 2017. Due Date Action Plans Responsible Person June 2015

(on schedule)

Monitor University’s position in AAU rankings.

Provost Key Performance Indicators Results

UVa’s position in AAU rankings with respect to faculty

salaries

As of 6/30/11: #31
As of 6/30/12: #29
As of 6/30/13: #32
As of 6/30/14: #27
As of 6/30/15: #28

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Manage Generational Turnover in Faculty

Risk Category Management of Human Capital Risk Description The University must effectively manage the generational turnover in faculty Risk Owner Provost Mitigation Strategies Currently in Place

Identify hiring priorities, adjusting institutional and professional incentives for interdisciplinary hires.
Recruit continuously to more accurately identify high-potential faculty, build stronger relationships with

targeted candidates, and close recruitment efforts successfully.

Leverage current talent and new faculty hiring opportunities to focus research on those intellectual and social

challenges where it can have the most impact. Due Date Action Plans Responsible Person July 2015

Sept. 2015

June 2015

(on schedule)

Annually, the Provost will work with deans and faculty to develop hiring plans

that are coordinated across schools as part of the annual budget process.

Assess recruiting and retention performance annually.
Include in annual Academic Division budget the estimated cost of faculty hires

including start-up packages. Provost Provost Provost and COO Key Performance Indicators Results

Achieving target number of faculty hires included in school plans
Yield on offers made
Success rate on retention offers
Related costs in annual budget
TBD
TBD
TBD
$10.5 million for FY16

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Effective Succession Planning

Risk Category Management of Human Capital Risk Description The University must have effective succession planning Risk Owner Provost (for faculty); Chief Operating Officer (for staff) Mitigation Strategies Currently in Place Faculty

Enhance institution-wide infrastructure and support of faculty to:
Enhance their development as teachers and leaders in the University community.
Encourage and support research, creative arts, scholarship and innovation.

Staff

Continue to enhance and expand Center for Leadership Excellence programs in leadership, career

development, professional skills, and technical training.

Continue to expand the high-potential staff succession development program.

Due Date Action Plans Responsible Person

Sept. 2015
Sept. 2015

June 2015

(on schedule)

June 2015

(on schedule)

Develop training program for faculty department chairs to focus on

development of management skills.

Launch course development institute through Teaching Resource

Center to focus on development of faculty teaching skills.

Expand high-potential staff succession development program with

new cohort of 25 staff.

Complete robust career paths linked to each staff job family.

Vice Provost for Faculty Affairs Vice Provost for Academic Affairs Vice President for Human Resources Vice President for Human Resources Key Performance Indicators Results

Faculty and staff retention rates
Percentage of open positions filled by internal candidates

TBD TBD

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Effectively Pursue Organizational Excellence

Risk Category Capitalize on organizational excellence – resource alignment and optimization. Risk Description The University must have efficient services, processes, and procedures to effectively use and steward its resources in support of mission activities. Risk Owner Chief Operating Officer Mitigation Strategies Currently in Place

Leadership of OE by dedicated full-time professional staff.
OE governance council led jointly by academic and administrative leadership.
Project portfolio that includes functional reviews and process redesigns supported by a foundational benchmarking

study of key business processes.

Aggressive targets for OE are integrated into annual budget process.

Due Date Action Plans Responsible Persons

Oct. 2015

Ongoing

Jan. 2016

June 2015

(on schedule)

Development of web-based portal and dashboard to support efficient life

cycles of research awards from pre-proposal to program completion.

Strategic sourcing of procurement for high quality customer service and to

achieve volume discounts.

Create shared center of excellence for University and Foundation gift

processing.

Finalize design and begin implementation of future state HR model.

Office of Sponsored Programs Director of Procurement Treasurer Vice President for Human Resources June 2016 • Complete consolidation of email systems and continue consolidation of IT servers and data centers. Chief Information Officer

Oct. 2015
Implement fully automated travel and expense management system.

Director of Procurement

Sept. 2015 • Develop detail plan for addressing JLARC recommendations on span of

control and procurement. VP for HR and VP for Mgmt and Budget Key Performance Indicators Results

Total savings of $150 million over

FY15-22

Achieved savings of $19.5 million in FY 15 and targeted savings of

$12.7 million in FY 16.

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Maintain Sufficient Funding/Resources to Achieve Goals

Risk Category Financial Risk Risk Description UVa must have sufficient resources to pursue strategic programs and maintain core programs. Risk Owner Chief Operating Officer Mitigation Strategies Currently in Place

Financial performance monitored against Multi-Year Financial Plan.
Monitoring implementation of Cornerstone Plan.

Due Date Action Plans Responsible Person July 2015

Annually update Multi-Year Financial Plan.

AVP for Finance June 2015

(on schedule)

Report progress on Cornerstone Plan to BOV.

President Spring 2016 Spring 2016

Finalize plan for Bicentennial Campaign and obtain BOV approval.
Complete plan for University research enterprise with focus on

investment and growth. Senior VP for Development Vice President for Research Key Performance Indicators Results

Annual performance against Multi-Year Financial Plan
Annual philanthropy results Bicentennial Campaign
Growth in research enterprise
Endowment performance reports
TBD
TBD
TBD
TBD

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Comply with Federal, State, or Other Established Regulatory Requirements

Risk Category Legal compliance risks (state/federal/other) Risk Description UVa must comply with federal, state, university, or other established regulatory requirements Risk Owner Chief Operating Officer and General Counsel Mitigation Strategies Currently in Place

Established institutional compliance program using the best practice elements of a successful program:
1. Compliance standards and procedures;
2. Oversight by high-level personnel, with periodic reporting.
3. Due care in delegating substantial discretionary authority;
4. Effective communication to all levels of employees;
5. Systems for monitoring, auditing and reporting;
6. Consistent enforcement of compliance standards; and
7. Reasonable steps to respond to and prevent offenses.
General oversight of all compliance functions through Assistant VP reporting to EVP/COO.
Appropriate compliance policies across all major areas of risk – health system, research, athletics, human

resources, finance, etc.

Close working relationship with Internal Audit to coordinate monitoring activities.
University helpline for reporting compliance issues.

Due Date Action Plans Responsible Person Ongoing

Compliance reports reviewed with Audit Committee.

AVP for Compliance/ERM Fall 2015

Enhance University compliance with Clery Act and Title IX.
Hire full-time Clery and Title IX Coordinators
Appoint and train campus security authorities across Grounds
Complete final policy on “Sexual Misconduct” and implement

supporting processes and procedures. President, EVP-COO, General Counsel, and Vice President for Student Affairs Key Performance Indicators Results

Number of significant compliance exceptions in FY15-16
TBD

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