Faculty Senate Meeting March 21, 2013 Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes http://facultysenate.mst.edu/media/campussupport/facultysenate/documents/fsminutes/2013/FS.Minutes.02.21.13.pd f III. IV. Campus Reports and Responses Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students M. Alkazimi No report Faculty Senate Report March 21, 2013 President’s Report March 21, 2013 Faculty Senate Report March 21, 2013 IFC IFC meeting on March 20th . President Wolfe is visiting many rural areas on a ‘Show Value’ campaign explaining importance of higher education. Addressed students in 8th and 9th grades, civic leaders and business leaders. . Received positive response in newspapers Faculty Senate Report March 21, 2013 IFC (continued) . Use of patent and commercialization in promotion and tenure procedures Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students M. Alkazimi No report Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students M. Alkazimi No report Office of Undergraduate Studies Freshman Engineering (FE) All new freshmen (FS2013) take a 30-question spatial skills test online prior to their PRO day. Students who score below 60% will be placed in special FE10 sections and their FE10 experience will include some spatial skills training modules . The spatial skills test is supported by a NSF initiative coupled with the national ENGAGE program. Learning Enhancement Across Disciplines (LEAD) • LEAD learning assistance (http://lead.mst.edu/assist) has achieved three new records in Spring 2013 beyond those reported before. • The record number of student-centered learning centers was set through the active commitment of the 60 who ran them outside of classroom hours. Although 60 LEAD faculty does not beat the record of 64 set in Fall 2012, it is a record for a spring semester. Office of Undergraduate Studies Writing Center Set a new record for number of tutoring sessions in Fall 2012! 1002 tutoring sessions 475 total students 15 departments Offered summer tutoring for the first time, conducting a total of 124 sessions Hired and trained 6 new tutors for spring 2013 semester Made 17 presentations to classes in 5 departments to introduce Writing Center services and provide guidance on writing-related topics Continuing close collaboration with English composition faculty to evaluate and improve our effectiveness Enrollment Management • March 18-22 – Advising Week for Summer and Fall 2013 • April 1 – Registration begins in Joe’SS • Visits are underway with Department Chairs to discuss Recruitment, Admissions, Enrollment, and Capacity Office of International Affairs IEP Enrollment Enrollment in the Intensive English Program continues to grow. Spring 2013 is one of our largest populations with 88 students. Countries of origin include: China, Iraq, Kuwait, Libya, Oman, Saudi Arabia and Thailand. IEP Enrollment Spring Semesters 90 80 37 70 25 60 23 50 Part-Time 9 40 17 Full-Time 30 20 36 10 0 6 0 Sp 2004 2 5 Sp 2005 26 10 8 Sp 2006 Sp 2007 11 10 14 Sp 2008 Sp 2009 43 49 51 Sp 2012 Sp 2013 32 Sp 2010 Sp 2011 Spring Enrollment Data Office of International Affairs Conversation Partners Student participation continues to grow! Average attendance is about 120 students for this popular noon period crosscultural communication event. Language students improve their English skills and American students expand their global competencies. Celebration of Nations Committee meetings have resumed for 2013. We invite all community members to consider serving on this important committee. Current tasks include finalizing a tee shirt design, updating publicity materials and starting community outreach to local schools. Office of International Affairs New Linkage Agreements: – – – – – Northeastern University, China, signed 11/28/2012 Yangtze University, China, signed 1/10/2013 American Cultural Exchange of Japan, signed 2/1/2013 Japan Study Abroad Foundation, signed 2/1/2013 Dokuz Eylul University, Turkey, signed 1/24/2013 Signing ceremony with Dokuz Eylul University January 24, 2013 Office of Sponsored Programs • FY13 activities through the end of February and a yearover-year comparison are as follows: – Proposals awarded in total dollars: $42.5M (up 203.3%) – Number of proposals awarded and amendments: 164 (down 7.3%) – Proposals submitted in total dollars: $99.8M (down 5.8%) – Number of proposals submitted: 328 (down 6.0%) – Research expenditures: $28.0M (down 6.8%) – F&A recovered: $4.1M (down 10.0%) – Number of active awards: 568 (down 1.4%) Global Learning Enrollment in the graduate degree and certificate programs offered by S&T’s academic departments continues to increase. The number of credit hours for the Spring 2013 is up almost 5% over the same time last year. This increase is reflected in the chart on the following slide. Global Learning Distance Student Credit Hours 3000 2500 2000 1500 1000 500 0 Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students M. Alkazimi No report Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students M. Alkazimi No report Agenda Campus Reports and Responses A. President’s Report S.N. Balakrishnan B. Administrative Reports i) C. Schrader ii) Krishnamurthy for K. Wray C. Staff Council Report B. Betz D. Student Council R. Beck E. Council of Graduate Students - M. Alkazimi No report Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn University of Missouri February, 2013 Natalie “Nikki” Krawitz Vice President for Finance and Administration 24 University of Missouri System Office of the Vice President for Finance & Administration Board of Curators President Timothy M. Wolfe Secretary to the Vice President Memoree Bradley Controller Jane Closterman Accounting Financial Information Systems Financial Reporting Sponsored Programs Payroll Tax Reporting Vice President Natalie “Nikki” Krawitz Assistant Vice President for Budget Planning & Development Cuba Plain Assistant Vice President Management Services Dave Sheahen Facilities Planning & Dev. Risk & Insurance Mgmt. Business Services Records Management Minority Business Dev. Budget Planning, Development, & Monitoring Appropriations Request Institutional Research & Planning Treasurer Tom Richards Cash Management Debt Management Banking Retirement & Endowment Fund Management Chief Procurement Officer & Director, Sourcing and Supply Chain (UMHC) Tony Hall Director of Financial Services Nilufer Joseph Internal Audit Compliance Scholarships (Tuition Settlement, MOST) Financial Analysis System-wide Procurement 25 State Budget Update 26 State of Missouri FY2013 Total Operating Budget - $24b Sources of Funds General Revenue, $8,013m 33% Other, $8,112m 34% Federal, $7,905, 33% 27 State of Missouri FY2013 General Revenue Total $8.014m Human Services $2,372m, 39.6% Corrections & Public Safety $665m, 8.3% All Other $919m, 11.5% Judiciary & Elected Officials, Gen Assembly $290m, 4% Higher Ed $790m, 10.6% 28 Elementary & Secondary Ed $2,917m, 36.4% Higher Education: A Shrinking State Priority 17% 16% Percent 15% 14% 13% 12% 11% 10% Percent Total General Revenue 29 State support for higher education in Missouri is significantly lower than comparator states FY2012 State Appropriations for Higher Ed per $1,000 in Personal Income 12.00 10.00 $9.17 $8.49 $8.42 8.00 $6.31 6.00 $6.03 $6.70 $6.35 $6.08 $5.63 $4.04 4.00 2.00 0.00 30 Missouri ‘s support for higher education on a per capita basis is less than comparator states FY2012 State Appropriations for Higher Ed per Capita $400 $350 $300 $250 $352.99 $307.55 $278.65 $282.75 $241.34 $257.59 $249.31 $220.98 $233.28 $200 $154.74 $150 $100 $50 $0 31 To match the national average, Missouri would need to increase funding for H.E. by $472 million FY2012 Missouri ranked 44 Missouri per capita = $154.74 National average = $233.28 Funding gap = $ 78.54 Total Funding Gap = $ 472 m 32 There has been a shift in Funding for the University over the last 20 years Revenue Contribution Operations Fund Revenue Contribution All Funds 100% 100% 90% $543.4 $309.0 20% 29% 80% 90% 80% 70% 70% 60% $312.0 50% 29% 40% $134.2 $1,226.7 60% 46% 50% 40% 13% 30% 30% $508.4 $310.8 20% 29% 10% 0% 1993 Actuals 19% 20% $397.7 10% 15% 0% 9% $44.7 15% $143.5 31% $552.9 50% $280.6 60% $384.0 35% 1993 Actuals 2013 Budget Other State Appropriations Sales & Services & Patient Revenues Net Tuition & Fees State Appropriations 33 $168.4 2013 Budget Net Tuition & Fees Other State support is 10.4% below 2001; over the same time period the CPI has increased 26.7% Gross Approp. Change in Percent Year Approp. Received Receipts Change FY01 $442.0 $428.8 FY02 $457.1 $376.9 ($51.8) -12.1% FY03 $411.1 $385.0 $8.1 2.1% FY04 $388.7 $377.1 ($7.9) -2.1% FY05 $400.8 $388.8 $11.7 3.1% FY06 $401.8 $389.8 $1.0 0.2% FY07 $413.0 $401.8 $12.0 3.1% FY08 $430.9 $419.1 $17.3 4.3% FY09 $451.5 $437.9 $18.8 4.5% FY10 $451.5 $437.9 $0.0 0.0% FY11 $428.0 $415.1 ($22.8) -5.2% FY12 $405.6 $383.6 ($31.5) -7.6% * FY13 $400.0 $384.0 E $0.4 E 0.1% E Cumulative Change FY01-FY12 ($44.7) -10.4% Dollars in Millions CPI % June 1.1% 2.1% 3.3% 2.5% 4.3% 2.7% 5.0% -1.4% 1.1% 3.5% 1.7% 0.9% E 26.7% *-8.1% excluding $2.0 M special increase for School of Pharmacy 34 34% enrollment growth since FY 2001 Headcount Enrollment 80,000 Enrollment Growth Fall 2000 – Fall 2012 75,000 70,000 34% Growth 65,000 60,000 55,000 50,000 35 State Appropriations /FTE Student State Appropriations per FTE Student have declined 35% since 2001 $11,000 $10,462 $10,000 36.5% decline $9,000 $8,000 $7,000 $6,643 $6,000 Note: Includes appropriations for Cooperative Extension and Ag Experiment Station 36 *estimate UM’s resident UG tuition and fees is below the average for public doctoral institutions. Average Public Doctoral In-State Undergraduate Tuition and Fees Compared to UM Campuses, FY2012-13 Tuition and Required Fees 2012-13 2011-12 $ Change Public Doctoral - National Average $9,539 $9,126 $413 4.5% MU $9,257 $8,989 $268 3.0% UMKC $9,299 $9,029 $270 3.0% Missouri S&T $9,350 $9,084 $266 2.9% UMSL $9,314 $9,038 $276 3.1% UM Average per SB389 definitions $9,167 $8,899 $268 3.0% 37 % Change Average Annual Tuition & Required Fee Change Over 5-years is the Lowest in the Region 50% FY2009-2013 Changes in Undergrad Resident Tuition & Required Fees 45.3% 40% 30% 20% 10% 21.0% 21.8% 20.7% 18.2% 19.9% 23.1% 26.2% 25.3% 19.8% 13.1% 5.3% 5.4% 5.2% 4.5% 5.0% 5.8% 6.5% 6.3% 9.0% 4.9% 2.3% 0% 5 Year change Average Annual Change 38 3.3% 11.3% University of Missouri Consolidated Financial Statements 39 39 FY 2012 Statement of Net Assets* Total Assets: $6.4 billion Total Liabilities: $2.3 billion Cash & Cash Equivalents $362.78 million Current Liabilities Accounts & Other Receivables $390.56 million Inventories, Prepaid & Other $66.58 million Bonds & Notes Payable & Capital Leases Investments $2.66 billion Property, Plant and Equip., net $2.85 billion Deferred Outflow of Resources $935.39 million $1,122.31 million Other Noncurrent Liabilities $215.24 million Total Net Assets: $4.1 billion $30.41 million Invested in Capital Assets, Net of Related Debt $1.54 billion Restricted $1.16 billion Nonexpendable .77 billion Expendable .39 billion Unrestricted *Excludes the University Retirement and Other Postemployment Benefits Trust Funds 40 $1.38 billion University of Missouri System Credit Ratings University of Missouri System Long-term Debt Ratings -- Moody’s – Aa1 -- Standard & Poor’s – AA+ Moody’s Long-Term Debt Rating Definitions -- Aaa - strongest creditworthiness -- Aa - very strong creditworthiness -- A - above-average creditworthiness -- Baa - average creditworthiness 41 Retirement Fund / Endowment Pool Annualized Historical Performance Annualized Returns - Periods Ended 9/30/2012 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 Year 3 Years 5 Years 10 Years 20 Years Retirement Fund - Actual 13.9% 8.4% 1.3% 8.4% 8.5% Retirement Fund - Benchmark 15.3% 8.5% 1.7% 8.7% n/a Endowment Pool - Actual 15.0% 8.1% 1.6% 8.0% 8.1% Endowment Pool - Benchmark 16.8% 8.3% 1.6% 8.6% n/a 42 42 Endowment Spending Policy & Distribution Goals: transparency, improved budgeting, long-term growth without sacrificing short-term benefits The new policy applies a distribution rate of 4.5% to the trailing 28 quarter average market value of the Endowment Pool. Transition from 5.0% to 4.5% would be methodically phased in over 5-7 years in a manner that would not cause year over year decreases in the annual distribution. Measurement date changed from June 30 to Dec 31 Budget exact amount for next fiscal year Improves transparency Actual distribution of budget prorated over 12 months of fiscal year Actuals allowed to go negative to the extent of the budgeted distribution 43 FY2012 Statement of Revenues Expense and Changes in Net Assets: Revenues * Operating Revenues: $2.1 billion Nonoperating Revenues: $609 million ($ Millions) ($ Millions) Net Tuition & Fees $545 State Appropriations $ 398 Government Grants & Contracts $ 241 Federal Appropriations $ 28 Federal Pell Grants $ 62 Private Grants & Contracts $ 71 Endow/Invest Income Sales & Services $ 380 Private Gifts UM Health Care $ 813 Other $ 55 *Excludes the University Retirement and Other Postemployment Benefits Trust Funds 44 $ 31 $ 90 FY 2012 Operating Expenses: $2.66 billion * By Natural Classification By Function ($ Millions) ($ Millions) Salaries and Wages $1,318 Instruction $ 605 Staff Benefits $ 360 Research $ 210 Supplies, Services and Other $ 763 Public Service $ 147 Scholarships/Fellowships $ Academic Support $ 134 Depreciation $ 161 Student Services $ 75 Institutional Support $ 103 Oper. & Maint. Of Plant $ 97 Scholarships/Fellowships $ 60 Depreciation $ 161 Auxiliaries $ 465 Hospital & Clinics $ 605 60 *Excludes the University Retirement and Other Postemployment Benefits Trust Funds 45 University Stewardship The University of Missouri takes its stewardship responsibility seriously and engages in a continuous process to identify opportunities to reduce costs and increase efficiencies. Since 1998, the University of Missouri System has systematically collected and reported on initiatives that have resulted in increased effectiveness and efficiency of University operations. 46 Cost Management: $246 million in FY2009-FY2012 Cost Management – initiatives that produce cost savings or eliminate costs $80.0 $70.0 Operating Expense Cuts/Other $60.0 $50.0 Energy Conservation & $40.0 Savings $30.0 Deferral of M&R Strategic Procurement $20.0 $10.0 Workforce Reductions $0.0 $ Millions FY2009 47 FY2010 FY2011 FY2012 Summary Impact of Actions Over Last 4 Years $411.7 million $450.0 $400.0 $350.0 $300.0 $250.0 Revenue Enhancements $200.0 Cost Management Cost Avoidance $150.0 $100.0 $50.0 $0.0 FY2009 FY2010 FY2011 FY2012 $ Millions 48 Total FY 2013 University Budget 49 FY2013 $2.7 billion Budget by Fund Type Loan, Endowment & Plant, $91.7, 3% Restricted, $302.6, 11% Operations, $1105.3, 40% Other Unrestricted, $585.7, 21% Hospital Operations, $682.7, 25% Dollars in Millions 50 FY2013 $2.7b Budget Sources State Appropriations 14% Net Student Fees 18% Grants and Contracts 13% Other Income 2% Gifts 2% Endowment & Investment Income Auxiliary 4% Enterprises Patient Revenues 24% 20% 51 FY2013 $2.7b Budget Uses Benefits 14% Salaries and Wages 49% Operating Expense 29% Interest Expense 2% Depreciation 6% 52 FY2013 $2.7b Budget Uses: Programmatic Instruction, 25.2% Hospitals, 24.9% Research, 8.6% Auxiliaries, 18.2% Public Service, 5.6% Academic Support, 5.8% Scholarships, 3.0% Plant O&M, 4.5% Student Institutional Services, Support, 4.1% 2.7% 53 53 FY 2014 University Budget Outlook 54 FY 2014 UM Preliminary Budget Issues Control rate of increase in expenses relative to revenues Revenues Flat state support Constraints on tuition increases Expenses Increase in salaries and wages: merit & market Increase in medical benefits Increase in required contribution to Retirement Fund Increase in M & R 55 55 Other Issues on the Horizon Performance funding Limited capacity to increase tuition & fees Pressure to reduce costs Pressure to increase productivity Pressure to increase output Retention rates Graduation rates # of Degrees Granted Transparency and accountability 56 Projected Marginal Costs for FY2014 Budget $51.2 million Dec Jan $19.2 $19.9 1. Salary & Wages Increase 2. Benefits on Salary & Wages Increase 5.4 6.4 3. Flat Rate Benefit Increase (1.5% of Salary & Wages) 7.8 9.1 $32.4 $35.4 4. Total Compensation 5. Increase in M&R (inflation) 1.4 1.4 6. Other Marginal Cost Increases 7.6 9.1 7. Costs Due to Enrollment &Priorities 4.9 5.3 $46.3 $51.2 8. Total Marginal Cost Increases $ in Millions 57 Projected Marginal Revenues for FY2014 Budget - $21.1 million Dec Jan $9.5 $8.1 2. Increase in Net Supplemental from rate changes 2.4 2.3 3. Increase in Net Tuition Above Inflation 1.6 1.9 4. Increase in Net Tuition & Fees from Enrollment 6.6 4.9 5. State Appropriations Change 0.0 0.0 6. Increase in Other Revenues (incl. dedicated) 1.2 3.9 1. Increase in Net Tuition from Inflation (2% Dec; 1.7% Jan) 7. Total Marginal Revenue Increases $ in Millions 58 $21.3 $21.1 Preliminary Funding Gap of $30.1 million 1. Marginal Cost Increases Dec Jan $46.3 $ 51.2 2. Marginal Revenue Increases $21.3 $ 21.1 3. Net Funding Gap $25.0 $ 30.1 4. Gap as a % of Operating Expenses 2.3% 2.7% Impact of 1% inc/dec State Approps (net) $ 3.8 $ 3.8 Impact of 1% Rate inc in Net Tuition & Fees $ 4.8 $ 4.8 Add’l Cost to reach M&R policy (FCNI of 0.30) $ 49.3 $ 49.3 Strategic Reallocation 1-2% 5. 6. 7. 8. $ in Millions 59 FY2014 Core Operating Appropriations Summary I. Minimum Funding for Core Operations $417.9 FY13 Base $398M; UMKC/MSU Pharmacy $2M; MOFAST $0.3M; Core Operating Support $15.7M; St. Louis Equity $1.9M II.a. Advancing Missouri's Competitiveness– STEM Workforce Needs in STEM $20.2M; Science & 55.2 Engineering Equipment $2M; STEM Enrollment Growth $16.6M; STEM Infrastructure $16.4M II.b. Advancing Missouri's Competitiveness – Caring for Missourians – Phase 2 Total Core Request $ in Millions 60 10.3 $483.4 Other Strategic Operating Investment Needs 1. Protecting the University’s Infrastructure Base M&R – year 1 of 2 year request $12.3 2. MU Medical School Partnerships 10.1 3. Translational Science 20.0 4. Academic & Research Parity w/ Peers 15.6 Total Other Strategic Investment Needs $ in Millions OPEN – GB – INFO 2 61 $58.0 FY 2014 Capital Appropriations Request State Request Campus Total Total Tier I $381,190,000 $41,020,000 $422,210,000 Total Tier II $109,432,000 $28,412,000 $137,844,000 Total Tier III $145,221,000 $27,211,000 $172,432,000 $635,843,000 $96,643,000 $732,486,000 Total Rehab & New Construction Total Engineering Equip $1,432,800 62 $1,432,800 $2,865,600 FY 2014 Tier 1 Capital Appropriations Request Rehabilitation & New Construction State Request Critical Facility Needs Campus Total $190,042,000 $0 $190,042,000 Benton/Stadler Renovation-UMSL $60,000,000 $0 $60,000,000 College of Engineering - Lafferre Hall Reconstruction, Additions & Renovations-MU $54,735,000 $13,684,000 $68,419,000 School of Medicine Renovation and Health Sciences Education Building Phase II –UMKC $48,459,000 $27,336,000 $75,795,000 Chemistry and Biological Science RenovationS&T $27,954,000 $0 $27,954,000 $381,190,000 $41,020,000 $422,210,000 $49,062,000 $0 $49,062,000 Total Tier I State Historical Society Building & Museum 63 Strategic Planning 64 Developing system and campus strategies in a time of tremendous challenge and change “We don’t have a viable business model.” “Faculty members feel overloaded and deans are concerned that research productivity is declining.” “We are being forced to do more with fewer resources and at some point it does affect quality.” “We’re going to hit a brick wall at some point.” Some challenges confronting the system: 1. Reduced state and federal funding 2. Limits on tuition increases 3. Changes in student demographics 4. The impact of technology on teaching and learning 5. Public accountability 6. The economic crisis 7. The demand for greater higher education access and increased number of degrees conferred 8. Skilled workforce demands “Our laboratories are in worse shape than the high school laboratories.” © Copyright 2012 Innosight LLC 65 “We have survived the funding cuts by growing enrollment, but we’re reaching capacity.” “With the shift to online learning, there are big questions…” “What is the end to this? What will be cut next?” “We need to fight to keep our formula funds.” Strategic Planning Goals Develop campus strategies and a system strategy that build on our unique advantages and reflect clear trade-offs; Develop campus strategies and a system strategy that clearly serve the identified needs of the state and the regions we serve; Develop ways to incorporate disruptive innovations into the business model; Develop sustainable financial plans to support the strategies; Identify ways that we can further leverage being a system both academically and operationally; Identify criteria, other than history, for allocating a portion of state resources toward strategy execution beginning with 5 10% of the 2014 appropriation and growing over time. 66 Strategic Planning Timeline June Workshop • Develop draft strategy statements October Workshop November February • Establish situational awareness • Identify key “themes” and “levers” • Learn principles of ideation • Make case for change • Build consensus • Finalize strategy statement, themes and levers • Draft themes and levers • Finalized strategy statements, themes and levers March Workshop • Learn to identify, plan and measure activities that will support the strategy, theme and levers April – June • Plan activities • Engage activity owners • Develop final strategic plan Output • Draft strategy statements © Copyright 2012 Innosight LLC 67 • Draft activities and metrics • Final strategic plan with detailed activities and metrics A concise strategy statement has discrete building blocks 3 required components: OBJECTIVE OBJECTIVE A single objective Measurable and specific Time bound Addresses key challenges EFFECTIVE: INEFFECTIVE: SCOPE Describes in detail which customer you are pursuing Describes in detail the product or service you are offering to the customer ADVANTAGE Describes the unique activities or assets that no other organization can claim “Increase enrollment to 20,000 by 2020” “Career-focused education for full-time undergraduates who are interested in STEM subjects” “Internship programs with 40 partner employers in the St. Louis area” “Increase the number of qualified graduates” “Aligned curriculum and student experience for undergraduates” “World class instructors” © Copyright 2012 Innosight LLC Source: Collis, David J., and Michael G. Rukstad. "Can You Say What Your Strategy Is?“ Harvard Business Review (April 2008). Print.; Innosight analysis. 68 A strategy statement is not a mission statement Hierarchy of organizational statements MISSION Why we exist “…discover, disseminate, preserve and apply knowledge…” VALUES What we believe in and how we will behave “…Respect, Responsibility, Discovery, Excellence…” STRATEGY What our competitive game plan will be The basic elements of a strategy statement: OBJECTIVE = Ends SCOPE = Domain ADVANTAGE = Means Metrics and Financial Plan How we will monitor and implement that plan © Copyright 2012 Innosight LLC Source: Collis, David J., and Michael G. Rukstad. "Can You Say What Your Strategy Is?" Harvard Business Review (April 2008). Print.; Innosight and University of Missouri analysis. 69 A critical test: The strategy should explain how a campus will leverage its unique strengths to overcome challenges Mission and Vision Barriers Current State © Copyright 2012 Innosight LLC What specific barriers does your campus face? 70 UM System Draft Strategy Statement The UM System will collaborate with the campuses in achieving, by 2018, mutually agreed upon, best-in-class, performance by: 1. Leveraging our unique campus strengths and resources, 2. Developing and applying leading practices, and 3. Advocating for higher education and the university. © Copyright 2012 Innosight LLC 71 Questions? 72 Appendix - Statistics 73 73 Operating Statistics Statistics – FY 2012 • Accounting Transactions (14.1 million) • Bank Reconciliation (53 bank accounts) • Accounts Payable (~ 322,500 payments; ~$2.0 billion) • Payroll Processing (47,141 Form W-2s; 4,838 Form 1099-MISCs; 9,103 Form 1099-Rs; 81,295 Form 1098-Ts) Total Current Funds Budget (FY2013) = $2.7 billion • Operations Budget = $1.1 billion • Auxiliaries & Service Operations Budget = $1.3 billion • Restricted Budget = $302.6 million Appropriations Request for Operations (FY2014) • Core Mission = $483.4 million • Other Programs = $25.1 million 74 Operating Statistics Retirement Fund • Defined benefit plan: $2.8 billion (as of 9/30/2012), 46 Investment Managers Endowment Fund • Multiple pooled funds: $1.1 billion (as of 9/30/2012) • Endowment Pool, 46 Investment Managers • Fixed Income Pool, 1 Investment Manager • Almost 5,000 individual endowments • Funds held in trust by outside organizations: $120.8 million (as of 6/30/2012) General Pool • Represents the University’s cash and reserves • $1.7 billion (as of 9/30/2012) 75 Operating Statistics Debt Issuance • System Facilities $1.368 billion outstanding as of 06/30/12 • Bond Rating Aa1 with Moody’s, AA+ with Standard & Poor’s Bank Relationships • One primary bank with 12 different depository banks and 4 campus bank facilities in Missouri • Checks deposited annually over $468 million; electronic receipts of over $2.2 billion • Ensure funds are available for 505,000+ vendor and employee payments issued annually, totaling approximately $3 billion • Fund transfers for purchase of securities of $5.5 billion; ACH/wire transactions to pay vendors and employees of $2.3 billion annually; checks issued to pay vendors and employees of $707 million Credit Cards • Manage credit card operations at 330 locations on four campuses, Hospital and internet • Annual volume $88.4 million Lockbox • Dollar amount of checks and credit cards processed in calendar year 2012: $332 million 76 Operating Statistics Property Owned in Missouri: 2,123 acres on-campus 17,314 acres off-campus 582 acres Owned in Other States: Transactions during FY12: Sales 3@ Acquisitions 8@ Leases to Others 78 @ Leases from Others 59 @ 77 $ 790,500 $ 13,171,836 $ 4,577,913 $ 2,652,170 Operating Statistics Facilities Planning & Development 1,596 Buildings, 29.2 million gross square feet Replacement Value $ 7.8 billion Plant Operating Expenditures $ 69.4 million Maintenance & Repair Expenses $ 57.8 million Design & Construction Contracts $ 134.8 million Minority Business Development Services & Supplies Financial Services Architecture/ $ 5,753,912 Broker Transactions Engineering Services Bonds Issued Construction Services $ 20,620,030 Procurement $ 26,376,968 78 $39,872,746 $ 610,000 Operating Statistics Records Management • 110,825 boxes stored • 35,750 activities (lookups, filings, destruction) Risk & Insurance Management (estimated FY13) • • • • Total cost of risk Commercial Insurance Self Insurance Excess Commercial Insurance 79 $ 23,335,510 $ 2,976,149 $ 17,744,431 $ 2,614,930 Procurement/Supply Chain The Procurement & Supply Chain departments work under a Shared Services model utilizing comprehensive Memos of Understanding (MOU’s) and report to the Chief Procurement Officer, this includes: UM Procurement Services Procurement Services is responsible for the contracting and procurement for the entire University including UM System, Columbia, Missouri S & T, UMSL and UMKC campuses. They produce a comprehensive scorecard quarterly for the Vice Chancellors (in a shared governance model) that report on pre-determined service level expectations and key performance indicators. UM Procurement Operations In their role they work closely with Procurement Services and the Healthcare Supply Chain team and are responsible for implementing, maintaining, and managing procurements software and web applications, as well as developing and reporting data from those applications. This includes providing a Hotline (comprehensive call center) for a customer base of nearly 5000 users. MUHC Sourcing and Supply Chain (SSC) SSC provides end to end supply chain services for all of MU Health Care. They differ from UM Procurement Services in addition to contracting and procurement they also provide Distribution, Motor Transport (Couriers) and a comprehensive Value Analysis program. Their operations are subject to a many regulatory compliance requirements including the Joint Commission and Centers for Medicare & Medicaid Services (CMS). Their offices and warehouse are located off-site in the Quarterdeck Building and are a 24/7-365 operation. 80 UM Procurement/Procurement Operations The University Procurement team impacts approximately $370 Million in expenses annually and is a six (6) year National Procurement Institute award winning operation. They have representation providing services on each of UM’s campuses in a centralized shared service model. Operating Statistics Savings/Revenue FY 12 Process Savings RFP/B Resulting in PO RFP/B Resulting in contract Cost Avoidance using SMS Negotiated Savings RFP/B Resulting in PO RFP/B/GPO results in contract Revenue PCard Rebate SMS Rebate $13,750,297 11,246 calls were handled by the Operations Hotline in FY 12 52,883 Purchase Orders were processed for $167,376,490 $ 3,981,145 $ 384,070 $ 655,798 $ 1,724,707 $ 4,934,589 44,784 Show Me Shop Orders were placed for $ 31,688,178 UM produced 368,179 Procurement Card/Fleet transactions for a value of $ 99,626,540 $ 1,523,024 $ 546,964 81 MUHC Sourcing and Supply Chain (SSC) The supply chain services University Hospital, MU Psychiatric Center, Missouri Orthopedic Institute, Women’s and Children’s Hospital, Ellis Fischel Cancer Center, Missouri Center for Outpatient Surgery, Missouri Rehabilitation Center and all clinics (local and outlying). Operating Statistics Savings/Revenue in FY 12 Total $13,209,954 In FY 12 the health systems perpetual inventory locations averaged 17.4 turns on a goal of 12. Process Savings RFP/B Resulting in PO/Contract $ 752,796 Par/Inventory Reductions $ 63,051 Cost Avoidance/ UHC/Novation $ 5,366,599 Negotiated Savings Reduction in previous price paid $ 1,634,921 Contract negotiated savings $ 2,964,398 Rebates Manufacture/Standardization Rebates $ 433,874 UHC Patronage Equity Credits $ 481,942 PHS Indigent Drug & Device Recovery $ 312,373 Perpetual Inventory Project BS Adj. $ 1,200,000 Nearly $4M in inventory is managed in Perpetual Locations and Non-Perpetual Locations account for $ 11,514,634 in inventory. Average monthly issues from inventory = $ 2,240,244 Inventory Picks/Month average 467,932 lines 60, 643 Purchase Orders were processed in FY12 82 Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda Reports of Standing and Special Committees A. Rules, Procedures and Agenda M. Davis B. Curricula D. Tauritz C. ITCC D. Wunsch RP&A Report March 21, 2013 Referral • Referred to Personnel: • NTT voting on Department Chair Committees. RP&A Report March 21, 2013 Ad-Hoc Committee • RP&A voted to form an Ad-Hoc committee to examine changes to the Add/Drop forms used by the Registrar’s office. Agenda Reports of Standing and Special Committees A. Rules, Procedures and Agenda B. Curricula C. ITCC M. Davis D. Tauritz D. Wunsch Campus Curricula Committee Report March 21, 2013 » 8 Degree Change (DC) forms DC 0452 – Updated electives list for the Minor in Marketing DC 0453 – Creation of a minor in Management DC 0457 – Updated electives list for the Minor in Enterprise Resource Planning DC 0458 – Updated course list for the Emphasis Area in Enterprise Resource Planning DC 0459 – Creation of a minor in Mobile Business and Technology Campus Curricula Committee Report March 21, 2013 DC 0461 – Minor course requirement update for the B.S. in Business and Management Systems DC 0462 – Minor course requirement update for the B.S. in Information Science and Technology DC 0464 – Modify and rename the Science, Technology, and Politics minor to Science, Technology and Humanity minor Campus Curricula Committee Report March 21, 2013 » 5 Course Change (CC) forms » 1 Experimental Course (EC) forms (informational only) The Campus Curricula Committee moves for the approval of this report’s DC and CC forms. Agenda Reports of Standing and Special Committees A. Rules, Procedures and Agenda B. Curricula C. ITCC M. Davis D. Tauritz D. Wunsch ITCC Report • Open Forum March 15 • Transitions • Faculty Accomplishment System (FAS) report from UM • • • • • • Feedback: Must be fast & easy or nobody will use it. • Field-by-field input would be total failure. Library Rep: Scholar’s Mine Changes moved over to Mospace • Perhaps Library should own FAS – Library Committee referral? Budget Review & Institutional Comparison • Our IT salaries are way low but other numbers aren’t bad • ITCC doesn’t remember being asked re change to 4 year cycle but we knew Ǝ cuts Unified Communications – new VOIP – Impulse Point SafeConnect Working on mandatory computer security training and six-month password policy IT response to classroom incidents – looking for way to avoid recurrence Motion: The ITCC recommends that IT investigate version control system management as a core service using (for instance) GIT. Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda Old Business A. Report on Current Referrals and Actionable Items Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda I. Call to Order and Roll Call - Martin Bohner, Secretary II. Approval of February 21, 2013 meeting minutes III. Campus Reports and Responses IV. Vice President for Finance and Administration Address V. Reports of Standing and Special Committees VI. Old Business VII. New Business and Announcements VIII. Adjourn Agenda Adjourn