UNCG Staff Senate
April 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
• Functions:
Core (3) –
non General
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 Management
Metric: Expenditures per 10,000 gross square feet
Facilities Management:
Total Expenditure per 10,000 Sq Ft
Total system expenditure = $488 million
$140,000
UNCW
$120,000
ASU
•
UNCP
$100,000
NCA&T
UNC-CH
ECSU
$80,000
FSU
NCCU
$60,000
WSSU
UNCA
ECU
NCSA
NCSU
UNCC
UNCG
•
WCU
•
$40,000
$20,000
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
$0
Source: PACE data; Facilities Inventory and Utilization Study Fall 2004 (HEFC); team analysis
Auxiliary Services
Metric: Expenditures per 100 headcount of
student/employee index
Auxiliary Services:
Total Expenditures per 100 Headcount
Total system expenditure = $428 million
•
$300,000
$250,000
ASU
UNC-CH
NCSA
$200,000
ECU
UNCA
WCU
NCSU
$150,000
WSSU
ECSU
FSU
NCA&T
UNCW
UNCP
$100,000
UNCG
NCCU
$50,000
$0
UNCC
•
The variety of
enabling subfunctions in this
category make it
very difficult to
draw compelling
conclusions
We decided to take
a deeper look at two
of the larger subfunctions, 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
Academic Administration and Support
Metric: Expenditures per 100 headcount students
Academic Administration and Support:
Expenditures
per 100
Headcount Students
Total system
expenditure = $375
million
$450,000
$400,000
NCSA
$350,000
$300,000
UNC-CH
$250,000
$200,000
NCCU
ECSU
FSU
NCSU
WSSU
$150,000
$100,000
UNCC
ECU
ASU
NCA&T
WCU
UNCG
UNCA
• This function reflects
resource decisionmaking on the campus
level
• Demographics,
number of disciplines
and the size of the
student body are all
relevant variables
UNCW
UNCP
$50,000
$0
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; team analysis
Information Technology
Metric: Expenditures per 100 headcount of student/employee index
Information Technology:
Expenditure per 100 Headcount
Total system expenditure = $246 million
$200,000
UNC-CH
$180,000
$160,000
•
$140,000
$120,000
ECU
NCSU
$100,000
NCSA
ECSU
$80,000
UNCG
WSSU
UNCC
NCCU
$60,000
NCA&T
ASU
$40,000
$20,000
FSU
UNCA
UNCP
Complexity drives
costs. Therefore,
diverse and
particular research
will demand a
variety of systems
and applications.
One size does not fit
all
WCU
UNCW
$0
Source: PACE data; Student Data File 2004-05 reported to IPEDS 2005; Personnel Data File Fall 2004;
team analysis
Sponsored Project Activities
Metric: Expenditures in research/public
service per FTE employees in Sponsored Project Activities
Sponsored Project Activities:
Expenditures per FTE
Total system expenditure = $87 million
$4,500,000
• Sponsored project
activities are directly
tied to the core
functions of research
and public service
UNCW
$4,000,000
$3,500,000
ECU
$3,000,000
WCU
$2,500,000
$2,000,000
UNCA
NCCU
UNC-CH
UNCG
$1,500,000
UNCC
$1,000,000
ASU
NCA&T
$500,000
ECSU
$0
UNCP
NCSU
FSU
WSSU
NCSA
Source: PACE data and team analysis
• 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
Advancement
Metric: Cost to raise a dollar
Advancement Activities:
Cost to Raise a Dollar
Total system expenditure = $57 million
$1.60
$1.40
• Universities with
entrenched and
mature development
capabilities spend
less to raise money
ECSU
$1.20
$1.00
$0.80
UNCP
FSU
$0.60
NCCU
$0.40
$0.20
$0.00
UNCA
NCSA
ASU
UNCG
UNCW
WSSU
WCU
ECU
NCA&T
UNCC
NCSU
UNC-CH
• 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
Human Resources
Metric: Ratio of issued W-2 forms to FTE employees in
Human Resources
Human Resources:
Ratio of W-2's to PACE HR Employees
Total system expenditure = $54 million
500
450
•
NCSA
400
ASU
UNCP
350
WCU
ECSU
300
250
UNCW
200
NCA&T
FSU
NCCU
150
100
UNCA
WSSU
UNCG
ECU
NCSU
•
Metric is influenced
by delegation of
classification
authority, e.g.
campuses have
varying position
classification
flexibility
Payroll authority
may also be a driver
UNC-CH
UNCC
50
0
Source: PACE data; W-2 data for fiscal 2004-05 reported by UNC campuses in July 2006; team analysis
Enrollment-Related Activities
Metric: Number FTE employees in Enrollment-Related Activities
per 100 headcount students
Enrollment Related Activities:
Employees
100
Headcount Students
Total system
expenditure per
= $328
million
3.00
NCSA
•
2.50
2.00
•
1.50
ECSU
1.00
UNC-CH
FSU
WCU
NCCU
0.50
ASU
ECU
NCA&T
NCSU
UNCG
UNCA
UNCC
UNCP
UNCW
WSSU
0.00
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
Student Service Activities
Metric: Number of FTE employees in Student Service
Activities
per
100 headcount students
Student Service
Activities:
FTE Employees per 100 Headcount Students
Total system expenditure = $139 million
1.2
NCSA
1.0
UNC-CH
ECSU
•
0.8
ASU
UNCW
NCSU
0.6
ECU
0.4
WCU
NCA&T
FSU
NCCU
UNCA
UNCC
•
WSSU
UNCG
UNCP
0.2
0.0
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
Accountability Activities
Metric: Number of FTE employees in Accountability Activities
Accountability
per 100Activities:
employee headcount
Accountability Employees
per 100= $59
Employee
Total system expenditure
million Headcount
4.50
•
ECSU
4.00
3.50
3.00
2.50
UNCW
NCCU
2.00
ASU
UNCP
UNCA
NCSA
1.50
1.00
NCSU
ECU
FSU
WSSU
UNCG
UNCC
•
UNC-CH
NCA&T
WCU
0.50
0.00
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
UNCG Total Expenses
Total expenditures = $251,332,486
Core Functions
45%
Student service activities
3%
Sponsored Project
activities
1%
Accountability activities
1%
Information Technology
7%
Human Resources
1%
Academic Administration
and Support
7%
Fiscal activities
5%
Advancement activities
2%
Facilities Management
11%
External activities
1%
Source: PACE data
Auxiliary Services
8%
Enrollment related
activities
8%
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