UNCG Staff SenateApril 12, 2007
President’s Advisory Committee on Efficiency and Effectiveness
(PACE)
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)
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
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
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
Understanding the Objective
• Why are we doing this?
Optimize enabling functions at the University level
Leverage system strengths Modify or delete processes as needed
Facilities ManagementMetric: Expenditures per 10,000 gross square
feet
Source: PACE data; Facilities Inventory and Utilization Study Fall 2004 (HEFC); team analysis
• 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
• 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
ASU
ECSU
FSU
NCA&T
NCCUUNC-CH
UNCG
UNCP
UNCW
WCU
WSSUECU
UNCC
UNCA
NCSUNCSA
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Total system expenditure = $488 millionTotal system expenditure = $488 million
Auxiliary ServicesMetric: Expenditures per 100 headcount of
student/employee index
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; Personnel Data File Fall 2004; team analysis
• 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
• 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
ASU
ECSU
ECU
FSUNCA&T
NCCU
NCSA
NCSU
UNCC
UNC-CH
UNCG
UNCW
WCU
WSSU
UNCP
UNCA
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Total system expenditure = $428 millionTotal system expenditure = $428 million
Academic Administration and SupportMetric: Expenditures per 100 headcount
students
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis
• 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
• 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
ASU
ECSU
ECU
FSU
NCA&T
NCCU
NCSA
NCSU
UNCA
UNCC
UNC-CH
WCU
WSSU
UNCWUNCP
UNCG
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Total system expenditure = $375 millionTotal system expenditure = $375 million
Information TechnologyMetric: Expenditures per 100 headcount of
student/employee index
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; Personnel Data File Fall 2004; team analysis
• Complexity drives costs. Therefore, diverse and particular research will demand a variety of systems and applications. One size does not fit all
• Complexity drives costs. Therefore, diverse and particular research will demand a variety of systems and applications. One size does not fit all
ASU
ECSU
ECU
NCA&T
NCCU
NCSA
NCSU
UNCA
UNCC
UNC-CH
UNCG
WCU
WSSU
FSU
UNCW
UNCP
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Total system expenditure = $246 millionTotal system expenditure = $246 million
Sponsored Project ActivitiesMetric: Expenditures in research/public
service per FTE employees in Sponsored Project Activities
Source: PACE data and team analysis
• 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
• 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
FSU
NCA&T
NCCU
NCSU
UNCG
WSSU
ASU
ECSU
UNC-CH
UNCC
UNCA
UNCW
WCU
ECU
NCSA
UNCP
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Total system expenditure = $87 millionTotal system expenditure = $87 million
AdvancementMetric: Cost to raise a dollar
Source: PACE data; Voluntary Support of Education (VSE) 2005 survey; team analysis
• 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
• 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
ASU
ECSU
ECU
FSU
NCCU
NCSA
UNCAUNCG
UNCP
WCU
WSSUUNCW
UNC-CHNCSU
UNCCNCA&T
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
Total system expenditure = $57 millionTotal system expenditure = $57 million
Human ResourcesMetric: Ratio of issued W-2 forms to FTE
employees in Human Resources
Source: PACE data; W-2 data for fiscal 2004-05 reported by UNC campuses in July 2006; team analysis
• Metric is influenced by delegation of classification authority, e.g. campuses have varying position classification flexibility
• Payroll authority may also be a driver
• Metric is influenced by delegation of classification authority, e.g. campuses have varying position classification flexibility
• Payroll authority may also be a driver
ASU
ECSU
ECU
NCSA
NCSU
UNCA
UNCC
UNCW
WCU
UNCP
FSUNCCU
NCA&T
UNCG
UNC-CH
WSSU
0
50
100
150
200
250
300
350
400
450
500
Total system expenditure = $54 millionTotal system expenditure = $54 million
Enrollment-Related ActivitiesMetric: Number FTE employees in Enrollment-Related
Activitiesper 100 headcount students
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis
• Most campuses fall within a relatively narrow band with few outliers
• The two biggest outliers are two of the smallest schools
• Most campuses fall within a relatively narrow band with few outliers
• The two biggest outliers are two of the smallest schools
ECSU
NCSA
UNCA
UNCC
UNC-CH
WCU
WSSUNCSU UNCP
UNCW
FSU
ASU ECU NCA&T
NCCU UNCG
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Total system expenditure = $328 millionTotal system expenditure = $328 million
Student Service ActivitiesMetric: Number of FTE employees in Student Service Activities per 100 headcount students
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis
• The array of student service activities varies by campus
• Student input is a key driver in determining that variety
• The array of student service activities varies by campus
• Student input is a key driver in determining that variety
ASU
NCSA
UNC-CH
WCU
WSSU
UNCP
UNCG
UNCC
UNCA
NCA&T
NCCU
ECSU
UNCW
ECU FSU
NCSU
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Total system expenditure = $139 millionTotal system expenditure = $139 million
Accountability ActivitiesMetric: Number of FTE employees in Accountability
Activities per 100 employee headcount
Source: PACE data; Personnel Data File Fall 2004; team analysis
• 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
• 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
ASU
ECSU
ECU UNCA
UNCC
UNC-CH
UNCP
UNCW
WCU
WSSU
FSUNCA&T
NCCU
NCSA
NCSUUNCG
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Total system expenditure = $59 millionTotal system expenditure = $59 million
UNCG Total Expenses
Source: PACE data
Core Functions45%
Academic Administration and Support
7%
Advancement activities2%
Auxiliary Services8%
Enrollment related activities
8%
External activities1%
Facilities Management11%
Fiscal activities5%
Human Resources1%
Information Technology7%
Student service activities3%
Accountability activities1%
Sponsored Project activities
1%
Total expenditures = $251,332,486
Areas Identified for Further Analysis at UNCG
• Payroll Processing
• Admissions
• Alumni
UNCG Cuts 1998-99 through 2005-06
• Permanent - $12.3 million
• One Time - $18.8 million
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
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
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
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
UNC System-wide Working Groups
• Academic Administration• Auxiliaries• Construction/Leasing• Facilities Management• Human Resources• Information Technology• Other Barriers
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
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