The College of New Jersey

Transcription

1 The College of New Jersey Operational Excellence Cost Savings and Revenue Enhancements Fiscal Years

2 The College of New Jersey Strategic Plan TCNJ s Strategic Plan reflects the need to make difficult strategic choices in order to: Sustain educational excellence Keep the College affordable for students, and Achieve long-term sustainability in a difficult and changing economic climate TCNJ Strategic Priorities ( ) Make the Timely Strategic Choices Necessary to Provide Educational Excellence on an Affordable, Sustainable Basis A. Clarify and Communicate Mission, Identity and Distinctiveness B. Strengthen TCNJ Intellectual Community and Focus Academic Programs C. Strengthen the Integrated, Transformative Total Student Experience D. Develop and Implement a Sustainable Financial Model Supporting A, B, C & F E. Create a Strategically Effective Institution Focused on Outcomes Supporting A, B, C & F F. Live a Culture of Diversity & Inclusion Source: The College of New Jersey Strategic Profile: Report 1

3 Operational Excellence: Cost Cutting is Not Enough Cost containment/cost avoidance efforts have proven very successful in recent years, however we cannot cut our way to operational excellence. The cost of academic excellence is increasing faster than the rate of growth in new revenue sources, necessitating attention to operational excellence. The current challenges demand a new portfolio of academic, fiscal, administrative, and planning strategies to advance the educational excellence of the College. 2

4 Strategic Objective - Sustainable Financial Model Revenue Enhancements Enrollment Management Strategies Winter Term and Freshman Provisional Students Targeted Grants & Contracts Enhance Blended Learning Summer Programs Identify New Sources of Revenue Strategic use of Facilities Institutional Budgeting Campus-wide resource allocation discussions Funding of Institutional Priorities Examination of Recurring Budget Savings Monitor Operating Budget Key Performance Indicators Develop Capital Budget and Update Reserves Policy Benchmark Targets STRATEGIC BUDGET MODEL Strategic Reallocation of Resources Resource allocation to areas most critical to TCNJ s success Investment in IT tools to provide better Decision-Support Metrics Multi-Year Financial Plan to manage and track various financial strategies Operational Excellence Solicit campus-wide input for sustainable cost savings strategies Review of Academic and Administrative processes to identify efficiencies Create inventory of Cost Savings and update impact via TCNJ s website annually 3

5 Operational Excellence Assessment Operational Excellence Assessment Functional Efficiencies Organizational Assessment Facilities Utilization and Energy Efficiency Team 1: Finance and Budget Planning Council and Information Technology Team 2: Cabinet Team 3: TBD by the Cabinet 1. Identify duplication/inefficiencies in service delivery processes and potential resource allocation opportunities and cost savings. 2. Identify areas to increase business process efficiency through technology automation. 3. For each identified functional inefficiency, the team members will: a. Describe the duplicated/inefficient service and identify any existing institutional policies that do not maximize resources and services, and that are considered to impede/limit efficiencies and cost savings opportunities. b. Identify opportunities for cost reduction and service enhancement as a result of the implementation of other efficiencies; and c. Design and implement a cost management website to engage the campus community in identifying functional inefficiencies and possible solutions. 1. Assess existing personnel vacancies to identify opportunities toward achieving the $1.8 million annual budget salary savings target. 2. Create institutional processes to advance crossdepartment/unit/area collaboration supportive of the institutional mission, vision, and strategic plan. 1. Review current scheduling practices for facilities to determine opportunities for strategic, expanded utilization of current facilities to provide new funding sources supporting maintenance investment needs associated with these facilities. 2. Review current energy efficiency goals, identify and implement strategies to maximize campus-wide energy efficiency. Creating Systemic Change: Findings and outcomes of the work of each team should inform the work of the other teams. 4

6 Revenue Enhancement Assessment Revenue Enhancement Assessment Enhanced Revenue from Existing Operations New Revenue Opportunities Contract Review/Purchasing Team 4: Cabinet and Deans Team 5: Cabinet and Deans Team 6: Office of the Treasurer 1. Identify and evaluate opportunities to increase net revenue through growth/expansion of existing revenue generating areas, including evaluation of existing auxiliary activities. 2. Increase enrollment in non-traditional academic programs in a manner that is consistent with the College s mission and capacity to serve our students effectively. 3. Increase financial flexibility that promotes fungibility of funding sources (i.e. new revenue sharing models). Note: Identify all associated necessary operating and/or capital investment so that the true net revenue impact of recommendations can be appropriately evaluated. 1. Identify and evaluate opportunities to increase net revenue through implementation of new revenue generating opportunities, including, but not limited to: a. Campus centers of expertise or entrepreneurial incubators that could be appropriately marketed for immediate net revenue generation; and b. Other program/service opportunities that, once developed, could produce longer term net revenue enhancement, e.g., cooperative agreements with state and/or federal funders, non-research grant opportunities, etc. Note: Identify all associated necessary operating and/or capital investment so that the true net revenue impact of recommendations can be appropriately evaluated. 1. Review current contracts for the purchasing of goods and services and create a matrix outlining the date of last bid, current vendor, value of contract, contract expiration, any extensions on current contracts (how many and length), and provisions for terminating the contract. 2. Identify contracts eligible for re-bid and project potential savings. 3. Identify and evaluate opportunities for strategic purchasing collaboration with other New Jersey public institutions, including, but not limited to paper and office supplies purchases, and identify related projected savings. Creating Systemic Change: Findings and outcomes of the work of each team should inform the work of the other team. 5

7 Operating Revenue Enhancements Fiscal Year 2013 Targeted Grants and Contracts Nursing Education Revenue Enhancement Contract Term Partnership/Sponsor Purpose Fiscal Year 2013 St. Peters Medical Center Expand Nursing program capacity - Off-site RN to BSN degree program 1 Year pilot program $ 125,000 ESL Certification US Department of Education and various NJ school districts Training for non-esl-certified Pre K-12 teachers and administrators 5 Years 338,000 Total $ 463,000 Revenue Enhancement Enrollment Management Purpose Fiscal Year 2013 Winter Term Expansion Provide expanded learning opportunities and the potential to improve graduation rates $ 177,000 Freshman Provisional Students To enhance the mid-year admissions cohort 124,000 Total $ 301,000 6

8 Operating Revenue Enhancements - Fiscal Years Grants and Contracts Nursing Education ESL Certification ESL Programs - Undergraduate Partnership/Sponsor St. Peters Medical Center and Hunterdon Medical Center US Department of Education and various NJ school districts American Council for International Education plus various other partnerships Purpose Expand Nursing program capacity - Off-site RN to BSN degree program s Training for non-eslcertified Pre K-12 teachers and administrators ESL courses for international students Contract Term Revenue Enhancement Fiscal Year Fiscal Year Projection Total 3 Years $ 195,000 $ 317,000 $ 512,000 5 Years 218, , ,000 Pilot programs 243, , ,000 Total $ 656,000 $ 987,000 $ 1,643,000 Enrollment Management Winter Term Expansion On-campus International Students Purpose Fiscal Year 2014 Revenue Enhancement Fiscal Year 2015 Projection Total Provide expanded learning opportunities and the potential to improve graduation rates $ 349,000 $ 645,000 $ 994,000 Partnership with Institute for International Education for STEM and ESL courses for 80 Brazilian students 1416,000 1,416,000 Total $ 349,000 $ 2,061,000 $ 2,410,000 7

9 Purchasing Service Contracts Fiscal Years Cost Savings Contract/Service Purpose FY2013 One-time Cost Savings Debt Service Refinancing of debt to lower the fixed interest rate $ 3,468,000 $ 3,468,000 Fuel & Utilities Expiration of natural gas futures contracts 1,672,000 1,672,000 Total Savings $ 5,140,000 $ 5,140,000 Revenues/Cost Savings Contract Contract/Service Vendor Purpose FY2014 Term for One-time Recurring Capital Savings Funding Dining Services Sodexo Support for TCNJ s commencement programs $ 40, years Dining Services Sodexo Funding for institutional scholarships 100, years Dining Services Sodexo Energy audit services 25, years ERP Systems Oracle Execute multi-year contract to lower the annual cost 30,000 5 years Dining Services Sodexo Renovation Dining Facilities & Student Center $ 31,000,000 Multi-Function Printer Canon Lock in lower rates and obtain additional service enhancements 28,800 Total Savings $ 223,800 $ 31,000,000 3 years 8

10 Purchasing Service Contracts - Fiscal Year 2015 Goal Contract/ Service Beverage/ Vending Current Vendor Pepsi Purpose Re-bidding of beverage exclusive contract Current Annual Return Revenues Re-Bid Annual Target One-Time Investment Target Current Contract Term Notes $ 150,000 $ 185,000 $ 250,000 3 Years Longer term contract allowable under the NJ State College Contract Laws Office Supply OfficeMax Re-bidding of office supplies contract 50,000 85, ,000 3 Years Collaboration with other NJASCU institutions Cellular Service Various Bidding of cellular tower space 85, ,000 3 Years Increase roof top space rentals Totals $ 285,000 $ 395,000 $ 400,000 Targeted Savings $ 110,000 $ 400,000 9