Enhancing Financial Resources & Creating a Sustainable Business Model Initiative

Chief Business Officer

Telephone: 304.442.3246

Email: Tech-Business-Office@mail.wvu.edu

Campus Address: 216 Old Main

Upcoming Meeting Dates:

Friday, September 23, 2011 at 2:00 PM (1 Hour) Suite 216 Old Main, Old Main

Friday, October 21, 2011 at 2:00 PM (1 Hour) Suite 216 Old Main, Old Main

Friday, November 25, 2011 at 2:00 PM (1 Hour) Suite 216 Old Main, Old Main

Friday, December 16, 2011 at 2:00 PM (1 Hour) Suite 216 Old Main, Old Main

Enhancing Financial Resources Goals for Year 2 of the Strategic Plan:

1

2

3

Completed Enhancing Financial Resources Goals from Year 1:

Year 1 of the strategic plan saw a number of new business policies and procedures designed to improve Tech’s financial sustainability. As part of a long-term study of best business practices for all services, the institution’s printing service has been upgraded and streamlined with new high-speed and high-volume equipment that operate at less expense and a system to recover printing costs more efficiently. These changes are projected to yield at least 10% annual savings from the printing service. Another system that is nearing completion will centralize receiving and distribution to reduce institutional overhead in tracking and managing ordered items and assets. A restructuring of Tech’s contract with the campus refuse collection service has resulted in an annual savings of $20,000. Tech employs a number of federally funded work-study students, and by establishing a new system that identifies work-study students eligible for federal assistance, Tech is now realizing a 25% reduction in student employment costs. Other business practices will be targeted in Years 2-5.

A new student debit card system has been developed and equipment will be installed and implemented in the first quarter of fiscal year 2012. The system will be useful for campus services such as the bookstore, dining hall, laundry, student voting, access to dormitories and laboratories, athletic events, and others. The debit card system will enhance service delivery efforts, contribute positively to student life, and provide cost savings. Savings from the food service alone with the new debit card system are projected to be at least 7% annually.

The Tech Budget Planning Committee, as part of the financial resources strategic initiative, has completed a tuition and fee structure. The structure sets student fees proportionate to the institutional costs incurred in delivering different academic programs. Since different programs have substantially different costs, specific student fee levels are tied to specific academic programs. As a stated goal in the strategic plan, this system balances students’ ability to pay with institutional funding needs. The new fee structure is projected to generate an increase in revenue of 3% more than the prior year, and will serve as a model for future years. Also, Year 2 will see an examination of non-personnel related academic program costs to identify opportunities for cost-sharing and the elimination of overhead redundancies between academic programs. This will augment the sustainability of the revised tuition/fee structure in future years.

Analysis:

All of the financial strategic goals for Year 1 have been met, including a successful first year study and implementation of best-business practices that has already resulted in significant savings, a balanced tuition and fee schedule that addresses disparities in the costs to deliver academic programs, the development of a new debit card system ready for implementation that will yield savings and revenue in a variety of services, and a campus facility utilization and rental system that will generate space efficiencies and new revenues.

These accomplishments place Tech in a strong position to pursue in Year 2 more best-business practices, efficiencies, and new revenue sources from facility rentals and sponsored programs. These will all form the basis for a sustainable business model and new multi-year institutional budget.

For the complete Year 1 Progress Report, click here

The 5-Year Strategic Plan for Enhancing Financial Resources:

Establishing a sound financial base is critical to Tech’s entire strategic process and is a necessary precursor to other campus developments. Thus, many of the financial strategic objectives are targeted to be completed by the end of the second year of the five-year process. The remaining three years would be used to study the implemented changes for refinement and calibration to maximize the efficiency of offered services and programs while increasing revenues.

To enhance existing financial resources, a study is to be completed in the first year that identifies best business practices which can be implemented that simultaneously creates fiscal efficiencies and enhances the delivery of services. By the end of year two, outdated printing equipment will be replaced, and strategies for a new debit card system will be developed. A multiyear, ongoing process will be used to develop activities that provide services which also enhance revenue.

A sustainable business model for Tech must respect the needs of its students and the community. By the end of the first year, an analysis will be completed that determines a fair tuition and fee structure that balances students’ ability to pay with institutional funding needs.

Tech has a rich variety of physical assets and programs that, if managed effectively, should contribute to an expanding revenue base. Using data from government agencies and peer institutions, by the end of the second year a financial analysis of grants, contracts, and sponsored programs will be completed that sets a standard for indirect cost rates for the entire institution. By the end of the first year, a comprehensive plan will be developed that sets the policies and procedures for the rental and effective use of Tech’s existing and newly-developed facilities. Similarly, a plan for carefully scheduling and utilizing campus facilities along with controlling expenditures will be aimed at enhancing revenues.

A coherent plan for long-term business sustainability must be the product of a data-driven process. Prior to the end of the second year, a multi-year institutional budget will be articulated that is based on a careful study of academic departmental and campus financial figures. Current and historical fiscal reports, enrollment trends, salary and tuition schedules, program capacities, and other information will be used to construct budget targets that are realistic and responsible. The remaining three years of the five year plan will be used to carefully study the accuracy of the budget targets and to make necessary adjustments. The measured success of Tech’s financial resources strategic initiative will depend on hitting these targets.

For the complete Strategic Plan, click here

YEAR 1 (6 goals):

Goal 1: Revise Annual Tuition & Fee Schedule for 5-year Plan Timetable: Completed. Notes: On schedule to complete an assessment of the schedule for refinements.

Goal 2: Establish Cost Recovery Formula for Indirect Costs/Sponsored Academics Timetable: Ongoing, but for Year 1 already completed. Notes: Rates set from Government agencies and other sources. Current rates are currently being studied for effectiveness. Next year’s recovery rates may be set by May 2011.

Goal 3: Identify Inefficiencies in Auxiliary Programs (e.g., printing/copying services, debit card) Timetable: Ahead of Schedule. Notes: This is a wide-ranging review of all campus expenditures that will be ongoing throughout the 5-year plan. External review of outdated printing equipment complete, more reviews of other equipment to come. Debit card study complete, system has been implemented in food services. Additional debit card equipment is to be installed in upcoming months. Goal is for students to have widespread debit card use in Fall 2011.

Goal 4: Project Income Levels based on Enrollments Targets Timetable: Completed. Notes: Will be updated yearly; data used for long-term financial planning.

Goal 5: Develop Schedule of Capital Projects, Facility Use, Rental Policies. Timetable: On Schedule. The expected completion is May 2011. Notes: Information derived from Campus Facilities and Beautification Initiative master plan work.

Goal 6: Develop 5-Year Budget Timetable: On Schedule. Year 1 Completed. Notes: Budget based on historical figures, fiscal reports, enrollment data, and on progress from Goal 1 (above). To be updated annually.