Meeting of the Board of Visitors Finance Committee September 17, 2015
Agenda I. CONSENT AGENDA 2016-2022 State Six Year Plan for the Academic Division • II. ACTION ITEMS 2016-2018 Biennial Budget Operating Amendments and Revisions to the • 2016-2018 Capital Program III. REPORTS A. Organizational Excellence Vision and Progress B. UVIMCO Report: Long-Term Pool Market Value and Performance as of June 30, 2015 C. AAU Salary for Full-Time Instructional Faculty D. Unaudited Academic Division Financial Report for Year Ending June 30, 2015 2
2016-2022 S TATE S IX - YEAR P LAN FOR THE A CADEMIC D IVISION PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
2016-2022 State Six-Year Plan • 16 Strategies/Priorities reviewed with Board in June • Aligns with Cornerstone Plan and Multi-Year Financial Plan • Advances objectives in the Statewide Strategic Plan and the Higher Education Opportunity Act • State Comments: – Provide information about the University’s involvement with the higher education centers. Please include information such as courses offered, enrollment information, course completions, collaborations, etc. – Provide more detail about the methodology used to establish the guaranteed four- year tuition prices. • Final submission due October 1 4
Discussion Questions • Is there additional information you need to be informed about our Six-Year Plan submission to the state? • Do you have specific questions about the feedback provided by the state? 5
2016-2018 B IENNIAL B UDGET O PERATING A MENDMENTS AND R EVISIONS TO THE 2016-2018 C APITAL P ROGRAM C O L E T T E S H E E H Y, V I C E P R E S I D E N T F O R M A N A G E M E N T & B U D G E T D O N N A H E N RY , C H A N C E L L O R O F T H E C O L L E G E AT W I S E
2016-18 Biennial Budget Requests • Requests are for General Fund support from the State, as part of the Governor’s budget development process for the next biennium. • Align with the Cornerstone Plan and the State Six-Year Plan. • Resolution grants authority to resubmit requests to the General Assembly in January, after the Governor’s budget is presented in December. 7
2016-18 Biennial Budget General Fund Requests Academic Division Operating Request (in millions) FY2016-17 FY2017-18 Undergraduate Enrollment Growth $5.10 $5.63 Building Research Capacity Faculty Start-up Packages (Equipment Trust Fund) $7.00 $11.00 Faculty Retention $10.00 $10.00 Pan-University Research Teams $2.00 $2.00 Commercialization Seed Funds $2.75 $2.75 Information Technology Security $7.77 $5.24 HR Service Delivery Transformation Enabling Technology $10.50 $6.50 Blandy Farm – Support for preK-12 Outreach Efforts $.07 $.07 Virginia Foundation for the Humanities $.50 $.50 Line item language for Center for Politics N/A N/A Total $45.69 $43.69 8
2016-18 Capital Program Revisions – Academic Division Capital Program Revisions (in millions) Project Cost Source Thornton Hall Clean Room Renovation $18.00 State Center for Human Therapeutics $9.00 State $21.50 State; Medical Research Building #4 (MR4) Renovation, Phase I $43.00 $21.50 Indirect Cost Recoveries Blandy Experimental Farm Greenhouse Replacement $.92 Gifts Residential Housing Expansion $.65 Gifts Total $71.57 9
2016-18 Biennial Budget General Fund Requests College at Wise Operating Request (in millions) FY 2016-17 FY 2017-18 NMR for Chemistry Accreditation $.52 - Enrollment Growth $.08 $.16 Retention and Graduation $.17 $.19 STEM Early College Academy and High Need (STEM-H) $.16 $.16 Degrees Federal Mandates $.31 $.35 Outreach $.04 $.04 Undergraduate Research $.03 $.03 Total $1.31 $0.93 10
Discussion Questions • Is there additional information you would like to see regarding our submission to the state? • Do you have specific questions about any of the operating amendments? • Do you have specific questions about any of the capital projects? 11
O RGANIZATIONAL E XCELLENCE V ISION AND P ROGRESS PAT H O G AN E X E C U T I V E V I C E P R E S I D E N T A N D C H I E F O P E R AT I N G O F F I C E R
Organizational Excellence Established in the Cornerstone Plan as a means of increasing operating efficiencies and effectiveness Purpose: To enable institutional strategic goals and priorities through resource alignment and optimization Outcomes: • High quality and performance through best-in-class service models and processes • Service-oriented, collaborative, innovative culture • Reinvest in core mission • $150 million in savings over seven years 13
Organizational Excellence Framework – “The Design” Shared Governance Productive Partnerships Performance Excellence Measures for Continuous Success Centers of Excellence Shared Resources Collaboration Improvement Unit Alignment Innovation Continuous Return on Investment Best-in-Class Services and Processes IT Enablement Standard Practices and Policies Key Performance Indicators Right Sourcing 14
Assessment of Opportunities Key Cross-Functional Findings 2014 Benchmarking Study of Key • Structure: 1/3 FTEs central; 2/3 FTEs distributed. Support Functions with External Highly fragmented roles create overlap and many Consultant duplicative efforts – Assessment of costs, structure and, Costs : Large labor portion, underinvested in technology, little outsourcing performance – Examined 90 processes Activity: High volume of transactional activity in Finance, HR, Procurement • IT, HR, Finance, Procurement, Research Administration, Student Services Enabling Technology: Limited Service-orientation: Gatekeeper/ administrator, Surveyed Deans about priorities • rather than valued partner, volume of processing required of these functions overtakes analytical capabilities Initial areas for focus : Human resources, research Alignment with Strategic Plan • administration, procurement 15
Organizational Excellence Portfolio Roadmap 2020-2022 2013 Human Resources Path to Finance Transformation Enterprise- Prioritize Opportunities wide Process/Service Procurement Administrative Improvements Function Transformation Information Technology Enabling Technology High-quality, effective, efficient Research Administration Service Delivery service delivery models Organizational Other Key Initiatives Design 16
Human Resources Function 2018 2020 2013 Process Integrated Transformation Improvements Service Delivery Model; Enabling Technology; Organizational Desi gn Major Initiatives Manager Development Strengthen the leadership competency of managers within • an effective organizational design strategy, including span of control Early Retirement Incentive Program Providing management tools to restructure roles and • optimize staffing levels Service Model Transformation – HR Transforming to a future-state model that delivers highly • effective and efficient services across the academic Strategic Design Initiative division and health system Aligning staffing levels and skills sets to enable the new • service delivery model Business case supports quality and efficiency gains of 25- • 30% 17
Finance Function Enabling Technology 2013 2020 Organizational Service Design Delivery Process Improvements Major Initiatives Managerial Reporting Providing access to accurate, consistent, accessible and • reliable data and reporting to inform decision-making Gift Processing Redesigning processing of gifts for accuracy, efficiency, and • timeliness Creating a Center of Excellence • Service Model Transformation Transforming to a future-state model that delivers highly • effective and efficient services Aligning staffing levels and skills sets to enable the new • service delivery model 18
Procurement Function 2017 Service Delivery Process/service 2020 2013 Improvements Organizational Design Major Initiatives Strategic Sourcing Increasing strategic sourcing strategy for volume discount • pricing; multi-year road map developed for 10 commodities Participating in state-wide procurement cooperative • Savings of 5-15% per commodity • Travel and Expense Management Redesigning and streamlining travel and expense processes • for simplification, automation, enhanced safety and compliance and better pricing Conducting a comprehensive unit review with a self-study • and review by an external group Administrative Unit Review Resulting in prioritized recommendations for quality, • efficiency and effectiveness Service Model Transformation Transforming to a future-state Center of Excellence model • that delivers highly effective and efficient services Aligning staffing levels and skills sets to enable the new • service delivery model 19
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