Shared Services: Driving
Operational Efficiencies and
Service Excellence
Brian Hutzley
Vice Chancellor for Financial Services & CFO (Interim)
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SUNY will reinvest resources from administrative
savings to instruction and student services.
1
1
Strategies
• System-wide Initiatives
• Strategic Sourcing
• IT Transformation
• Administrative Alliances
• Campus Alliance Networks
• Research Foundation Functions
• Auxiliary Services
2
2
System-wide
Initiatives
Administrative
Alliances
Campus
Alliance
Network
Strategic
Sourcing
Accountability
& Reporting
Shared
Services
IT
Transformation
Policies
Strategic
Enrollment &
Capital Master
Plan
System
Administration
and UniversityWide Programs
Research
Foundations &
ASC’s
3
College Council,
Alumni,
Foundations
Budget,
Planning and
Investment
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System-Wide Initiatives
Transaction processing - payroll, payables, billing, and collection.
Functional expertise - procurement, MWBE, financial aid, internal control, information security, real estate,
environmental and employee benefits.
Research Network - SUNY academic medical centers - phased investment in people, core facilities, and IT.
Library and Information Services - procurement, management systems, application upgrades, reporting
systems
Energy Conservation, which began during the Middle-Eastern oil crisis in the early 1970s, had by 2006-07
reduced energy use by nearly 40 percent and saved over $1.2 billion in cost avoidance measures.
Online learning efforts - course management, improving access & affordability, course selection, and tech
support.
Academics initiatives – advising tools, tutoring program.
Policy & Procedures – templates, training, internal control reviews; compliance
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4
System-wide
Initiatives
Administrative
Alliances
Campus
Alliance
Network
Strategic
Sourcing
Accountability
& Reporting
Shared
Services
IT
Transformation
Policies
Strategic
Enrollment &
Capital Master
Plan
System
Administration
and UniversityWide Programs
Research
Foundations &
ASC’s
5
College Council,
Alumni,
Foundations
Budget,
Planning and
Investment
5
Strategic Sourcing
DOB/OGS Partnership
• State-wide
• Accenture Consulting
• Multi-year
Phase 1 : $165M Spend
$10-27M (9-20%) Savings
• IT Hardware
• IT Software
• Office Supplies
• Fleet Cards
Project Goals
• Savings
• Knowledge Transfer
• Process Improvement
–Modernize procurement practices
–Reduce administrative burden
–Speed up procurement process
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6
System-wide
Initiatives
Administrative
Alliances
Campus
Alliance
Network
Strategic
Sourcing
Accountability
& Reporting
Shared
Services
IT
Transformation
Policies
Strategic
Enrollment &
Capital Master
Plan
System
Administration
and UniversityWide Programs
Research
Foundations &
ASC’s
7
College Council,
Alumni,
Foundations
Budget,
Planning and
Investment
7
Administrative Alliances
Shared Function, Multiple Campuses, Single Administration
• Budget, Accounting, and Student Accounts
• Human Resources
• External Affairs -Development, Alumni, Communications, FOIL, Government Relations
• Marketing Energy Management
• Information Technology
• Enrollment Management
• Auxiliary services –Food , Bookstore, Laundry, Print Shop
• Libraries
• University Police
• Research and Sponsored Programs
• Veterans Affairs
• Institutional Research
• Financial Aid
• Educational Opportunity Program
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2012-13 Executive Budget
Overview
Brian Hutzley- Vice Chancellor & Chief Financial Officer
January 31, 2012
Operating Budget Summary
• 2012-13 General Fund Support essentially flat from
2011-12
– Slight increase in general fund support for StateOperated campuses
– Community College per FTE funding level of $2,122
maintained
– State support for three University Hospitals maintained
at 2011-12 level
– Statutory colleges at Cornell and Alfred University
funded at 2011-12 levels
– Adequate appropriation level to recognize $300 resident
undergraduate tuition increase also recommended*
*UG
10 year of five year rational tuition plan
tuition increase is in accordance with second
State-Operated Colleges
• Addition of $3.8M from 2011-12 levels for certain
collective bargaining costs at State-operated colleges
• No additional funding for general inflation (Requested
$4M)
• University-Wide program funding realignment
recognized
• Mid-year funding increase of $2.95M for ATTAIN & EOP
continued
• Funding for last installment of tuition share ($16.5M to
bring to 50%) not included
• Requested funding for SUNY Works strategic initiatives
of $40M not included
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Community Colleges
• Base Operating aid of $2,122 per FTE student
from 2011-12 maintained*
• Slight decrease in appropriation reflects
changes in enrollment
• Rental Aid increased by $406K (3.6%)
• $653K (39%) reduction in funding for
Community College Child Care Centers (reflects
removal of legislatively-added funding)
• Funding to increase state-support over five
years to 33% ($21.5M or $205/FTE) not included
*State
Aid for 2011-12 budgeted at 24.8% of net operating costs
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University Hospitals
• Maintains State support at 2011-12 level
($60M)
– 2011-12 funding level had represented a
reduction of $68.7M from 2010-11 level
– Additional requested support for fringe benefit
differential of $55.6M not included
– Total Fringe Differential is $170M +
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Summary of 2012-13 Executive Budget
2012-13 State Tax Support
(Millions of dollars)
Summary
State Operated Campuses
Statutory Campuses
Total State Operated
Cornell Cooperative Extension
Hospital Support
Community Colleges
General State Charges
Total
Change % Change
2011-12 2012-13 2012-13 Change % Change
from
from
Adjusted Budget Executive
from
from Budget
Budget
Base Request
Budget 2011-12 2011-12 Request Request
832.3
896.5
129.3
138.8
$961.6 $1,035.3
3.9
4.7
60.0
115.6
441.4
465.0
839.2
129.3
$968.5
3.9
60.0
434.2
6.9
$6.9
(7.2)
0.8%
(57.3)
0.0%
(9.5)
0.7% ($66.8)
0.0%
(0.8)
0.0%
(55.6)
-1.6%
(30.8)
-6.4%
-6.8%
-6.5%
-17.0%
-48.1%
-6.6%
213.0
213.0
$1,679.9 $1,833.6
213.0
$1,679.6
($0.3)
0.0%
0.0% ($154.0)
0.0%
-8.4%
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2012-13 Capital Budget- New Appropriations
•
Educational Facilities
– $550M in Critical Maintenance funding
– Represents 5th of 5 annually expected amounts totaling $2.75B
•
NY SUNY 2020
– $215M approved funding campus financed debt at SUNY Buffalo
– $184M in gift related spending authority for SUNY Buffalo & SUNY Stony Brook
•
State-Operated Residence Halls
– $45M in pay as you go funding
– No additional debt-financed funding provided due to concerns with State’s ability
to issue debt
•
Community Colleges
– $86.97M in funding provided
– Represents 50% State share for Community College projects with local sponsor
support
•
Hospitals
– No additional debt-financed funding15
provided due to concerns with State’s ability
to issue debt
$100M of Savings
5%
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Shifting Administrative Cost Savings to Instruction
Through its shared services initiative, SUNY will reduce
administrative costs and move those resources toward
direct instruction and student services. Over the next 3
years, all SUNY campuses will shift—at minimum—5%
of their administrative spending to direct instruction and
student services, resulting in $100M being reinvested.
Faculty ! Advising ! Tutoring! Labs!
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Savings will come
from four main
areas
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• Savings will come from four main areas:
– Strategic Sourcing - Working with the State of New York (DOB/OGS)
and Accenture Consulting Group we will use our combined buying
power to drive savings.
– IT Transformation – A complete transformation of how we manage and
use IT will not only drive savings but increase our overall service levels
provided to our students and the campuses.
– Transaction Processing- Transaction based processing will provide
improved service at a reduced costs for payroll, benefits, accounts
payable, travel, and other basic administrative functions.
– Campus Alliance Network - Launched in August 2011, the Campus
Alliance Network’s partners campuses to achieve savings, efficiencies
and improved services. Working together the campuses establish their
own plans, but as a System we share in our successes and best
practices.
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SUNY MWBE Program
Action Plan
SUNYPPAA
January 31, 2012
SUNY’s COMMITMENT
• The Chancellor has recommended and the Board of Trustees have
adopted a Resolution on reporting on SUNY MWBE utilization and
training to ensure compliance with Executive Law Article 15-A.
• A letter is being sent from the Chancellor to campus Presidents
outlining SUNY’s commitment to the University’s MWBE program and
campuses’ mandatory compliance.
• I will send a memorandum to campus Business Officers detailing the
new MWBE legislation and compliance requirements.
• The MWBE component has been re-introduced to Presidential
evaluations.
PROCEDURES & TRAINING
• The University’s MWBE procedure (#7557: Participation by Minority
Group Members and Women (MWBEs) with Respect to State University
of New York Contracts) has been updated to reflect the new legislation,
reporting instructions to capture campuses’ utilization of MWBE
subcontractors and best practices in making a Good Faith Effort.
• System Administration will continue to develop enhanced MWBE
training modules:
1. one which will be mandatory for facilities staffs (with job
responsibilities that include construction-related procurement)
and procurement staff; and
2. one which will focus on University Centers and their commitment
in their SUNY 2020 proposals to improve SUNY performance in
MWBE utilization.
ASSESSMENT & REPORTING
•Annual report to the Board of Trustees & Chancellor on expenditures
made with MWBEs and WBEs and discuss strategies to increase the
University’s contracting with these business entities.
• System Administration will
1.
2.
make modifications to the central accounting system and work with the
Department of Economic Development to allow automated reporting by
campuses of the payments to MWBE sub-contractors.
develop and issue, on a quarterly basis, a University-wide report card on
campus MWBE utilization to Presidents. The report will include all
campuses’ utilization and highlight best practices to assist underperforming campuses.
•The SUNY Purchasing Association committee on MWBE Utilization
will continue to identify best practices and search for new
strategies to improve MWBE participation in SUNY contracts.
RESOURCES &
RECOMMENDATIONS
• The University will:
1. continue to discuss best practices and opportunities to increase
MWBE utilization with the Construction Fund;
2. work with the DED to enhance the University’s MWBE program;
3. partner with NYS Small Business Development Centers,
Entrepreneurial Assistance Centers and Minority Business
Development Centers to announce procurement opportunities
to MWBEs and solicit their participation in SUNY contracts;
4. have campuses designate a person to serve as a MWBE officer
or partner with other campuses to hire a shared or regional
MWBE officer; and
5. where appropriate, include an MWBE component in staff
evaluations.
Current Goals
State-wide Goals
Category
SUNY Goals
MBE
WBE
M/WBE
MBE
WBE
M/WBE
Construction
14.33%
8.41%
22.74%
7%
4%
11%
Construction-related services
13.21%
11.32%
24.53%
7%
7%
14%
Non construction-related services
19.60%
17.44%
37.04%
10%
8%
18%
Commodities
16.12%
10.93%
27.05%
8%
6%
14%
Total
16.53%
12.39%
28.92%
10%
10%
20%