UNCG Staff Senate April 12, 2007

1. UNCG Staff SenateApril 12, 2007 President’s Advisory Committee on Efficiency and Effectiveness(PACE)

2. Context of the UNC System • Each campus like a small city with diverse services • 65 million square feet in UNC System (17x world’s largest office building) • Over 40,000 employees, +200,000 students • 3rd largest city in North Carolina • Over 53,000 beds (more than Chicago’s hotel beds) • 18 million books (2nd largest after the Library of Congress)

3. Understanding the Objective • What is PACE? • President’s Advisory Committee on Efficiency and Effectiveness • Last summer a cost study was completed to allocate every dollar from all fund sources and assign every FTE to one of 55 functional categories using 2004-2005 data

4. PACE Cost Allocation • Funds: General non General • Functions: Core (3) – Instruction, Research, Public Service Enabling (12) Enabling Activities (55) • Expense Categories: EPA Core Faculty EPA Other Professional SPA Staff All Other Expenses

5. PACE Cost Allocation • Enabling (12) • Academic Administration • Advancement • Auxiliary • Enrollment • External Activities • Facilities Management • Fiscal Activities • Human Resources • Information Technology • Accountability Activities • Sponsored Projects Support • Student Services

6. Understanding the Objective • Why are we doing this? • Optimize enabling functions at the University level • Leverage system strengths • Modify or delete processes as needed

7. Facilities ManagementMetric: Expenditures per 10,000 gross square feet Total system expenditure = $488 million • The condition and utilization of facilities varies across campuses • Most campuses fall within a relatively tight range • Different factors drive the outliers, e.g. power plant at ASU Source: PACE data; Facilities Inventory and Utilization Study Fall 2004 (HEFC); team analysis

8. Auxiliary ServicesMetric: Expenditures per 100 headcount of student/employee index Total system expenditure = $428 million • The variety of enabling sub-functions in this category make it very difficult to draw compelling conclusions • We decided to take a deeper look at two of the larger sub-functions, Dining and Vending services and Bookstore, textbook rental, and other retail operations Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; Personnel Data File Fall 2004; team analysis

9. Academic Administration and SupportMetric: Expenditures per 100 headcount students Total system expenditure = $375 million • This function reflects resource decision-making on the campus level • Demographics, number of disciplines and the size of the student body are all relevant variables Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis

10. Information TechnologyMetric: Expenditures per 100 headcount of student/employee index Total system expenditure = $246 million • Complexity drives costs. Therefore, diverse and particular research will demand a variety of systems and applications. One size does not fit all Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; Personnel Data File Fall 2004; team analysis

11. Sponsored Project ActivitiesMetric: Expenditures in research/public service per FTE employees in Sponsored Project Activities Total system expenditure = $87 million • Sponsored project activities are directly tied to the core functions of research and public service • Some universities who are rapidly growing and developing these core functions will likely have more FTEs allocated in this area vis-à-vis older research universities Source: PACE data and team analysis

12. AdvancementMetric: Cost to raise a dollar Total system expenditure = $57 million • Universities with entrenched and mature development capabilities spend less to raise money • Universities that are building up this enabling function will and are spending more money as they ramp up their giving efforts Source: PACE data; Voluntary Support of Education (VSE) 2005 survey; team analysis

13. Human ResourcesMetric: Ratio of issued W-2 forms to FTE employees in Human Resources Total system expenditure = $54 million • Metric is influenced by delegation of classification authority, e.g. campuses have varying position classification flexibility • Payroll authority may also be a driver Source: PACE data; W-2 data for fiscal 2004-05 reported by UNC campuses in July 2006; team analysis

14. Enrollment-Related ActivitiesMetric: Number FTE employees in Enrollment-Related Activitiesper 100 headcount students Total system expenditure = $328 million • Most campuses fall within a relatively narrow band with few outliers • The two biggest outliers are two of the smallest schools Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis

15. Student Service ActivitiesMetric: Number of FTE employees in Student Service Activities per 100 headcount students Total system expenditure = $139 million • The array of student service activities varies by campus • Student input is a key driver in determining that variety Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis

16. Accountability ActivitiesMetric: Number of FTE employees in Accountability Activities per 100 employee headcount Total system expenditure = $59 million • These activities reflect the outside requirements placed on the campuses by GA, the General Assembly and the BOG • Some campuses can respond more efficiently to these attendant processes Source: PACE data; Personnel Data File Fall 2004; team analysis

17. UNCG Total Expenses Total expenditures = $251,332,486 Source: PACE data

18. Areas Identified for Further Analysis at UNCG • Payroll Processing • Admissions • Alumni

19. UNCG Cuts 1998-99 through 2005-06 • Permanent - $12.3 million • One Time - $18.8 million

20. UNCG Initiatives • Cost avoidance – $1,642,000 • ESCO – energy savings plan • HEAT – Higher Education Area Transit, so that more parking does not have to be built • Reduced debt service payment by refinancing • Student credit card payments to eliminate merchant fees paid by UNCG • Switched to new P-card provider for higher rebates • Streamline travel to reduce time spent filing for reimbursement and increase use of P-card

21. UNCG Initiatives • Savings - $1,140,500 • Telephone Services provide $250,000 for Graduate Assistantships • Eliminated positions in Business Affairs, Police, Human Resources offices • Mandated Direct Deposit • Eliminated petty cash and travel advances • Purchased telephones, rather than renting them year after year • Lumped purchases together in order to get maximum discount for computers • Combined newspaper ads for positions • Cell phone replace desk phones

22. How Will Savings be Used in 2007-2008? • Directed to “core” functions; $500,000 provided for Graduate Assistants • Added to $1.3 from Academic Affairs vacant positions held in Provost Office • Other initiatives generate savings in later years

23. UNCG Goal • Chancellor set $4 million goal in savings and avoidance • Identified $2.4 savings including $1.3 from Academic Affairs • Identified $1.6 avoidance

24. UNC System-wide Working Groups • Academic Administration • Auxiliaries • Construction/Leasing • Facilities Management • Human Resources • Information Technology • Other Barriers

25. What Can You Do? • Look at how your department spends its budget • Better way to do things? • Web page of ideas? • Change in mindset • 2-sided copies • Share subscriptions and other ‘on-going’ costs • Determine if fax machines necessary • Determine if cell phones are being used • Energy awareness program • Let me know