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, SecretaryII. Approval of February 21, 2013 meeting minutes
http://facultysenate.mst.edu/media/campussupport/facultysenate/documents/fsminutes/2013/FS.Minutes.02.21.13.pdf
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
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. Council of Graduate Students - M. Alkazimi
No report
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
Faculty Senate Report
March 21, 2013
Agenda
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. Council of Graduate Students - M. Alkazimi
No report
Agenda
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. Council of Graduate Students - M. Alkazimi
No report
Office of Undergraduate StudiesFreshman 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 StudiesWriting Center
Set a new record for number of tutoring sessions in Fall 2012!1002 tutoring sessions475 total students15 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. Spring Enrollment Data
Sp 2004
Sp 2005
Sp 2006
Sp 2007
Sp 2008
Sp 2009
Sp 2010
Sp 2011
Sp 2012
Sp 2013
0
10
20
30
40
50
60
70
80
90
0 5
36
8 10 14
3243
49 51
62
9
2610
11
17
23
25
37
Part-TimeFull-Time
IEP Enrollment Spring Semesters
Office of International Affairs
Conversation Partners
Student participation continues to grow! Average attendance is about 120 students for this popular noon period cross-cultural 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 AffairsNew 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 UniversityJanuary 24, 2013
Office of Sponsored Programs
• FY13 activities through the end of February and a year-over-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
Sum20
03
Wint
er20
04
Sum20
04
Wint
er20
05
Sum20
05
Wint
er 2
006
Sum 2
006
Wint
er 2
007
Sum 2
007
Wint
er 2
008
Sum 2
008
Wint
er 2
009
Sum 2
009
Wint
er 2
010
Sum 2
010
Wint
er 2
011
Sum 2
011
Wint
er 2
012
Sum 2
012
Wint
er 2
013
0
500
1000
1500
2000
2500
3000
Distance Student Credit Hours
Agenda
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. Council of Graduate Students - M. Alkazimi
No report
Agenda
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. Council of Graduate Students - M. Alkazimi
No report
Agenda
Campus Reports and Responses
A. President’s Report S.N. BalakrishnanB. Administrative Reports
i) C. Schrader
ii) Krishnamurthy for K. WrayC. Staff Council Report
B. BetzD. Student Council
R. BeckE. 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 ResponsesIV. Vice President for Finance and Administration Address
V. Reports of Standing and Special Committees
VI. Old Business
VII. New Business and Announcements
VIII. Adjourn
24
University of Missouri February, 2013
Natalie “Nikki” KrawitzVice President for Finance and Administration
25
Board of Curators
PresidentTimothy M. Wolfe
Vice PresidentNatalie “Nikki” Krawitz
Secretary to the Vice PresidentMemoree Bradley
ControllerJane Closterman
AccountingFinancial Information Systems
Financial Reporting Sponsored Programs
PayrollTax Reporting
Assistant Vice PresidentManagement Services
Dave Sheahen
Facilities Planning & Dev.Risk & Insurance Mgmt.
Business ServicesRecords ManagementMinority Business Dev.
TreasurerTom Richards
Cash ManagementDebt Management
BankingRetirement &
Endowment Fund Management
Assistant Vice President for Budget Planning &
DevelopmentCuba Plain
Budget Planning, Development, & Monitoring
Appropriations RequestInstitutional Research &
Planning
Director of Financial ServicesNilufer Joseph
Internal AuditCompliance
Scholarships (Tuition Settlement, MOST)Financial Analysis
University of Missouri SystemOffice of the Vice President for Finance & Administration
Chief Procurement Officer &
Director, Sourcing and Supply Chain (UMHC)
Tony HallSystem-wide Procurement
26
State Budget Update
27
State of MissouriFY2013 Total Operating Budget - $24b
General Revenue, $8,013m 33%
Federal, $7,905, 33%
Other, $8,112m 34%
Sources of Funds
28
State of MissouriFY2013 General Revenue Total $8.014m
Elementary & Secondary
Ed $2,917m,
36.4%
Higher Ed $790m, 10.6%Judiciary & Elected Officials, Gen Assembly $290m, 4%
Corrections & Public Safety
$665m, 8.3%
Human Services
$2,372m, 39.6% All Other $919m, 11.5%
29
Higher Education: A Shrinking State PriorityFY
91FY
92FY
93FY
94FY
95FY
96FY
97FY
98FY
99FY
00FY
01FY
02FY
03FY
04FY
05FY
06FY
07FY
08FY
09FY
10FY
11FY
12FY
13
10%
11%
12%
13%
14%
15%
16%
17%
Percent Total General Revenue
Perc
ent
30
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
Arka...
Illinois
Iowa
Kansas
Kent...
Miss...
Nebr...
Okla...
Tenn... U.S.
0.00
2.00
4.00
6.00
8.00
10.00
12.00
$9.17
$6.31 $6.03 $6.35
$8.42
$4.04
$8.49
$6.70 $6.08$5.63
31
Missouri ‘s support for higher education on a per capita basis is less than comparator states
FY2012 State Appropriations for Higher Ed per Capita
Arkansas
Illinois
Iowa
Kansas
Kentucky
Missouri
Nebraska
Oklahoma
Tennesse
eU.S.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$307.55 $278.65
$241.34$257.59
$282.75
$154.74
$352.99
$249.31 $220.98 $233.28
32
To match the national average, Missouri would need to increase funding for H.E. by $472 million
FY2012Missouri ranked 44 Missouri per capita = $154.74National average = $233.28Funding gap = $ 78.54
Total Funding Gap = $ 472 m
33
There has been a shift in Funding for the University over the last 20 years
1993 Actuals 2013 Budget0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$310.8
$397.7
$134.2
$508.4
$312.0 $1,226.7
$309.0 $543.4
Revenue ContributionAll Funds
State AppropriationsNet Tuition & FeesSales & Services & Patient RevenuesOther
29% 46%
29% 20%
15%
29%
13%
19%
1993 Actuals 2013 Budget0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$280.6
$384.0
$143.5
$552.9
$44.7 $168.4
Revenue ContributionOperations Fund
State Appropriations Net Tuition & Fees Other
31%
50%
9%15%
35%
60%
34
State support is 10.4% below 2001; over the same time period the CPI has increased 26.7%
Gross Approp. Change in Percent CPI %Year Approp. Received Receipts Change JuneFY01 $442.0 $428.8FY02 $457.1 $376.9 ($51.8) -12.1% 1.1%FY03 $411.1 $385.0 $8.1 2.1% 2.1%FY04 $388.7 $377.1 ($7.9) -2.1% 3.3%FY05 $400.8 $388.8 $11.7 3.1% 2.5%FY06 $401.8 $389.8 $1.0 0.2% 4.3%FY07 $413.0 $401.8 $12.0 3.1% 2.7%FY08 $430.9 $419.1 $17.3 4.3% 5.0%FY09 $451.5 $437.9 $18.8 4.5% -1.4%FY10 $451.5 $437.9 $0.0 0.0% 1.1%FY11 $428.0 $415.1 ($22.8) -5.2% 3.5%FY12 $405.6 $383.6 ($31.5) -7.6% * 1.7%FY13 $400.0 $384.0 E $0.4 E 0.1% E 0.9% E
Cumulative Change FY01-FY12 ($44.7) -10.4% 26.7%
Dollars in Mill ions *-8.1% excluding $2.0 M special increase for School of Pharmacy
35
34% enrollment growth since FY 2001
Fall 2
000
Fall 2
001
Fall 2
002
Fall 2
003
Fall 2
004
Fall 2
005
Fall 2
006
Fall 2
007
Fall 2
008
Fall 2
009
Fall 2
010
Fall 2
011
Fall 2
01250,000
55,000
60,000
65,000
70,000
75,000
80,000
34% Growth
Enrollment Growth Fall 2000 – Fall 2012
Hea
dcou
nt E
nrol
lmen
t
36
State Appropriations per FTE Student have declined 35% since 2001
Note: Includes appropriations for Cooperative Extension and Ag Experiment Station*estimate
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
Stat
e A
ppro
pria
tions
/FT
E S
tude
nt
36.5% decline
$6,643
$10,462
37
UM’s resident UG tuition and fees is below the average for public doctoral institutions.
2012-13 2011-12$
Change%
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%
Average Public Doctoral In-State Undergraduate Tuition and Fees Compared to UM Campuses, FY2012-13
Tuition and Required Fees
38
Average Annual Tuition & Required Fee Change Over 5-years is the Lowest in the Region
Iowa State
Kansas State
Oklahoma State
Arkansas
Illinois
Iowa
Kansas
Kentucky
MU
Nebraska
Oklahoma
Tennessee
0%5%
10%15%20%25%30%35%40%45%50%
21.0% 21.8% 20.7% 18.2% 19.9%23.1%
26.2% 25.3%
9.0%
19.8%
13.1%
45.3%
5.3% 5.4% 5.2% 4.5% 5.0% 5.8% 6.5% 6.3%2.3%
4.9% 3.3%
11.3%
FY2009-2013 Changes in Undergrad Resident Tuition & Required Fees
5 Year change Average Annual Change
39
University of Missouri Consolidated Financial Statements
39
40
Total Assets: $6.4 billionCash & Cash Equivalents $362.78 million
Accounts & Other Receivables $390.56 million
Inventories, Prepaid & Other $66.58 million
Investments $2.66 billion
Property, Plant and Equip., net
$2.85 billion
Deferred Outflow of Resources
$30.41 million
Total Liabilities: $2.3 billionCurrent Liabilities $935.39 million
Bonds & Notes Payable & Capital Leases
$1,122.31 million
Other Noncurrent Liabilities
$215.24 million
FY 2012 Statement of Net Assets*
Total Net Assets: $4.1 billionInvested in Capital Assets, Net of Related Debt
$1.54 billion
Restricted $1.16 billion
Nonexpendable .77 billion
Expendable .39 billion
Unrestricted $1.38 billion
*Excludes the University Retirement and Other Postemployment Benefits Trust Funds
41
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
University of Missouri System Credit Ratings
42
Retirement Fund / Endowment Pool -Annualized Historical Performance
1 Year 3 Years 5 Years 10 Years 20 Years
Retirement Fund - Actual 0.139 0.084 0.013 0.084 0.085
Retirement Fund - Benchmark 0.153 0.085 0.017 0.087 NaN
Endowment Pool - Actual 0.15 0.081 0.016 0.08 0.081
Endowment Pool - Benchmark 0.168 0.083 0.016 0.086 NaN
1%
3%
5%
7%
9%
11%
13%
15%
17%
Annualized Returns - Periods Ended 9/30/2012
n/a
n/a
42
43
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
44
Operating Revenues: $2.1 billion
($ Millions)
Net Tuition & Fees $545
Government Grants & Contracts
$ 241
Private Grants & Contracts $ 71
Sales & Services $ 380
UM Health Care $ 813
Other $ 55
Nonoperating Revenues: $609 million
($ Millions)
State Appropriations $ 398
Federal Appropriations $ 28
Federal Pell Grants $ 62
Endow/Invest Income $ 31
Private Gifts $ 90
FY2012 Statement of Revenues Expense and Changes in Net Assets: Revenues *
*Excludes the University Retirement and Other Postemployment Benefits Trust Funds
45
By Natural Classification
($ Millions)
Salaries and Wages $1,318
Staff Benefits $ 360
Supplies, Services and Other $ 763
Scholarships/Fellowships $ 60
Depreciation $ 161
By Function
($ Millions)
Instruction $ 605Research $ 210Public Service $ 147Academic Support $ 134Student Services $ 75Institutional Support $ 103Oper. & Maint. Of Plant $ 97Scholarships/Fellowships $ 60Depreciation $ 161Auxiliaries $ 465Hospital & Clinics $ 605
FY 2012 Operating Expenses: $2.66 billion *
*Excludes the University Retirement and Other Postemployment Benefits Trust Funds
46
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.
47
Cost Management: $246 million in FY2009-FY2012 Cost Management – initiatives that produce cost savings or
eliminate costs
FY2009 FY2010 FY2011 FY2012$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Operating Expense Cuts/Other
Energy Conservation & Savings
Deferral of M&R
Strategic Procurement
Workforce Reductions$ Millions
48
Summary Impact of Actions Over Last 4 Years $411.7 million
FY2009 FY2010 FY2011 FY2012 Total $0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
Revenue EnhancementsCost Management Cost Avoidance
$ Millions
49
FY 2013 University Budget
50
FY2013 $2.7 billion Budget by Fund Type
Operations, $1105.3, 40%
Hospital Operations, $682.7, 25%
Other Un-restricted,
$585.7, 21%
Restricted, $302.6, 11%
Loan, Endowment & Plant, $91.7, 3%
Dollars in Millions
51
FY2013 $2.7b Budget Sources
Net Student Fees18%
State Appropriations14%
Grants and Contracts13%
Gifts2%
Endowment & Investment In-
come4%Auxiliary Enterprises
20%
Patient Revenues24%
Other Income2%
52
FY2013 $2.7b Budget Uses
Salaries and Wages49%
Benefits14%
Operating Expense29%
Interest Expense2%Depreciation
6%
53
FY2013 $2.7b Budget Uses: Programmatic
Instruction; 25.2%
Research, 8.6%
Public Service; 5.6%
Academic Support, 5.8%
Student Services, 2.7%
Institutional Support; 4.1%Plant O&M; 4.5%
Scholarships; 3.0%
Auxiliaries; 18.2%
Hospitals, 24.9%
53
54
FY 2014 University Budget Outlook
55
FY 2014 UM Preliminary Budget Issues
Control rate of increase in expenses relative to revenues
RevenuesFlat state supportConstraints on tuition increases
ExpensesIncrease in salaries and wages: merit & marketIncrease in medical benefitsIncrease in required contribution to Retirement FundIncrease in M & R
55
56
Other Issues on the Horizon
Performance fundingLimited capacity to increase tuition & feesPressure to reduce costs Pressure to increase productivityPressure to increase output
Retention ratesGraduation rates# of Degrees Granted
Transparency and accountability
57
Projected Marginal Costs for FY2014 Budget - $51.2 million
Dec Jan
1. Salary & Wages Increase $19.2 $19.92. Benefits on Salary & Wages Increase 5.4 6.43. Flat Rate Benefit Increase (1.5% of Salary
& Wages) 7.8 9.1
4. Total Compensation $32.4 $35.45. Increase in M&R (inflation) 1.4 1.46. Other Marginal Cost Increases 7.6 9.17. Costs Due to Enrollment &Priorities 4.9 5.38. Total Marginal Cost Increases $46.3 $51.2
$ in Millions
58
Projected Marginal Revenues for FY2014 Budget - $21.1 million
Dec Jan
1. Increase in Net Tuition from Inflation (2% Dec; 1.7% 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 1.94. Increase in Net Tuition & Fees from
Enrollment6.6 4.9
5. State Appropriations Change 0.0 0.06. Increase in Other Revenues (incl. dedicated) 1.2 3.9
7. Total Marginal Revenue Increases $21.3 $21.1
$ in Millions
59
Preliminary Funding Gap of $30.1 million
Dec Jan1. Marginal Cost Increases $46.3 $ 51.22. Marginal Revenue Increases $21.3 $ 21.1
3. Net Funding Gap $25.0 $ 30.14. Gap as a % of Operating Expenses 2.3% 2.7%5. Impact of 1% inc/dec State Approps (net) $ 3.8 $ 3.86. Impact of 1% Rate inc in Net Tuition & Fees
$ 4.8 $ 4.8
7. Add’l Cost to reach M&R policy (FCNI of 0.30) $ 49.3 $ 49.38. Strategic Reallocation 1-2%
$ in Millions
60
FY2014 Core Operating Appropriations Summary
I. Minimum Funding for Core OperationsFY13 Base $398M; UMKC/MSU Pharmacy $2M; MOFAST $0.3M; Core Operating Support $15.7M; St. Louis Equity $1.9M
$417.9
II.a. Advancing Missouri's Competitiveness–STEM Workforce Needs in STEM $20.2M; Science & Engineering Equipment $2M; STEM Enrollment Growth $16.6M; STEM Infrastructure $16.4M
55.2
II.b. Advancing Missouri's Competitiveness – Caring for Missourians – Phase 2
10.3
Total Core Request $ in Millions
$483.4
61
Other Strategic Operating Investment Needs
OPEN – GB – INFO 2
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
$58.0
62
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
Total Rehab & New Construction $635,843,000 $96,643,000 $732,486,000
Total Engineering Equip $1,432,800 $1,432,800 $2,865,600
63
Rehabilitation & New Construction State Request Campus TotalCritical Facility Needs $190,042,000 $0 $190,042,000Benton/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 Renovation-S&T
$27,954,000 $0 $27,954,000
Total Tier I $381,190,000 $41,020,000 $422,210,000State Historical Society Building & Museum $49,062,000 $0 $49,062,000
FY 2014 Tier 1 Capital Appropriations Request
64
Strategic Planning
65
Developing system and campus strategies in a time of tremendous challenge and change
Some challenges confronting the system:
1. Reduced state and federal funding
2. Limits on tuition increases3. Changes in student
demographics4. The impact of technology on
teaching and learning5. Public accountability6. The economic crisis7. The demand for greater higher
education access and increased number of degrees conferred
8. Skilled workforce demands
“We don’t have a viable business model.”
“We’re going to hit a brick wall at some point.”
“What is the end to this? What will be cut next?”
“We have survived the funding cuts by growing enrollment, but
we’re reaching capacity.”
“With the shift to online learning, there are big
questions…”
“Our laboratories are in worse shape than the high school laboratories.”
“We are being forced to do more with fewer resources and at some
point it does affect quality.”
“Faculty members feel overloaded and deans are concerned that
research productivity is declining.”
“We need to fight to keep our formula funds.”
© Copyright 2012 Innosight LLC
66
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.
67
Strategic Planning Timeline
• Develop draft strategy statements
June Workshop
• Establish situational awareness
• Identify key “themes” and “levers”
• Learn principles of ideation
October Workshop
• Make case for change
• Build consensus
• Finalize strategy statement, themes and levers
November - February
• Learn to identify, plan and measure activities that will support the strategy, theme and levers
March Workshop
• Plan activities• Engage
activity owners
• Develop final strategic plan
April – June
Output
• Draft strategy statements
• Draft themes and levers
• Finalized strategy statements, themes and levers
• Draft activities and metrics
• Final strategic plan with detailed activities and metrics
© Copyright 2012 Innosight LLC
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OBJECTIVE SCOPE
A concise strategy statement has discrete building blocks
A single objective Measurable and specific Time bound Addresses key challenges
Describes in detail which customer you are pursuing
Describes in detail the product or service you are offering to the customer
Describes the unique activities or assets that no other organization can claim
EFFECTIVE: “Increase enrollment to 20,000 by 2020”
INEFFECTIVE: “Increase the number of qualified graduates”
“Career-focused education for full-time undergraduates who are interested in STEM subjects”
“Aligned curriculum and student experience for undergraduates”
3 required components:
“Internship programs with 40 partner employers in the St. Louis area”
“World class instructors”
ADVANTAGEOBJECTIVE
© 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.
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A strategy statement is not a mission statement
MISSIONWhy we exist
VALUESWhat we believe in and how we
will behave
STRATEGYWhat our competitive game plan
will be
Metrics and Financial PlanHow we will monitor and
implement that plan
The basic elements of a strategy statement:
OBJECTIVE = Ends
SCOPE = Domain
ADVANTAGE = Means
“…discover, disseminate, preserve and apply knowledge…”
Hierarchy of organizational statements
“…Respect, Responsibility, Discovery, Excellence…”
© 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.
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A critical test: The strategy should explain how a campus will leverage its unique strengths to overcome challenges
Mission and Vision
STRATEGY
Current State
BarriersWhat specific barriers
does your campus face?
© Copyright 2012 Innosight LLC
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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
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Questions?
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Appendix - Statistics
73
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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
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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)
Operating Statistics
76
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
Operating Statistics
77
Property Owned in Missouri: 2,123 acres on-campus
17,314 acres off-campusOwned in Other States: 582 acres
Transactions during FY12:Sales 3 @ $ 790,500Acquisitions 8 @ $ 13,171,836Leases to Others 78 @ $ 4,577,913Leases from Others 59 @ $ 2,652,170
Operating Statistics
78
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 $39,872,746 Engineering Services Bonds Issued $ 610,000 Construction Services $ 20,620,030Procurement $ 26,376,968
Operating Statistics
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Records Management • 110,825 boxes stored• 35,750 activities (lookups, filings, destruction)
Risk & Insurance Management (estimated FY13)• Total cost of risk $ 23,335,510• Commercial Insurance $ 2,976,149• Self Insurance $ 17,744,431• Excess Commercial Insurance $ 2,614,930
Operating Statistics
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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 ServicesProcurement 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 OperationsIn 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.
Procurement/Supply Chain
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Operating StatisticsSavings/Revenue FY 12 $13,750,297
Process SavingsRFP/B Resulting in PO $ 3,981,145RFP/B Resulting in contract $ 384,070Cost Avoidance using SMS $ 655,798
Negotiated SavingsRFP/B Resulting in PO $ 1,724,707RFP/B/GPO results in contract $ 4,934,589
RevenuePCard Rebate $ 1,523,024SMS Rebate $ 546,964
UM Procurement/Procurement Operations
11,246 calls were handled by the Operations Hotline in FY 12
52,883 Purchase Orders were processed for $167,376,490
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
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.
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MUHC Sourcing and Supply Chain (SSC)
Operating Statistics
Savings/Revenue in FY 12 Total $13,209,954
Process SavingsRFP/B Resulting in PO/Contract $ 752,796Par/Inventory Reductions $ 63,051Cost Avoidance/ UHC/Novation $ 5,366,599
Negotiated SavingsReduction in previous price paid $ 1,634,921Contract negotiated savings $ 2,964,398
RebatesManufacture/Standardization Rebates $ 433,874UHC Patronage Equity Credits $ 481,942PHS Indigent Drug & Device Recovery $ 312,373Perpetual Inventory Project BS Adj. $ 1,200,000
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).
In FY 12 the health systems perpetual inventory locations averaged 17.4 turns on a goal of 12.
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
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. DavisB. Curricula D. TauritzC. ITCC D. Wunsch
Referral
• Referred to Personnel: • NTT voting on Department Chair Committees.
RP&A ReportMarch 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.
RP&A ReportMarch 21, 2013
Agenda
Reports of Standing and Special Committees
A. Rules, Procedures and Agenda M. DavisB. Curricula D. TauritzC. ITCC D. Wunsch
» 8 Degree Change (DC) forms
DC 0452 – Updated electives list for the Minor in MarketingDC 0453 – Creation of a minor in ManagementDC 0457 – Updated electives list for the Minor in Enterprise Resource PlanningDC 0458 – Updated course list for the Emphasis Area in Enterprise Resource PlanningDC 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 SystemsDC 0462 – Minor course requirement update for the B.S. in Information Science and TechnologyDC 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.
Campus Curricula Committee Report March 21, 2013
Agenda
Reports of Standing and Special Committees
A. Rules, Procedures and Agenda M. DavisB. Curricula D. TauritzC. ITCC 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
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