HIGHER EDUCATION RESTRUCTURED FINANCIAL AND ADMINISTRATIVE OPERATIONS ACT MANAGEMENT AGREEMENT OVERVIEW CAPITAL OUTLAY

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1 HIGHER EDUCATION RESTRUCTURED FINANCIAL AND ADMINISTRATIVE OPERATIONS ACT MANAGEMENT AGREEMENT OVERVIEW CAPITAL OUTLAY AND ACQUISITION AND DISPOSITION OF REAL PROPERTY Continues local responsibility for all non-code related post appropriation review, approval, administrative, and policy and procedure functions performed by the Department of General Services, Department of Engineering and Buildings, and Department of Planning and Budget. Expands local authority to include fire and life safety review. Provides the option for the Board of Visitors to appoint a University Building Official who can issue Certificates of Occupancy for completed projects. Allows initiation of a non-general fund project without prior state approval. Allows institution to execute all general fund projects or projects funded by state tax supported debt once authorized by the Governor and General Assembly. Permits institution to select construction procurement method for general fund and nongeneral fund projects. Allows contract and change order review and approvals for non-general fund projects. Removes maximum dollar limit on competitive negotiation procurements. Raises to $1,000,000 the minimum contract amount requiring bid bonds and performance and payment bonds. Allows renewal of term professional services contracts for single and multiple projects with no maximum dollar limit on use and no limit as to the number of terms. Allows improvements on land acquired with or facilities constructed with non-general funds as well as dispose of such property. Permits acquisition of real property without state approval when using non-general funds. Management Agreement Overview Page 1 of 8

2 LEASING Converts pilot program to permanent delegation for approval of operating, income, or capital leases. Converts pilot program to permanent delegation to acquire easements across non-university land. Permits Board of Visitors to grant or convey easements on any land owned or controlled by the University. The University currently holds this authority as granted by Virginia Code Section Management Agreement Overview Page 2 of 8

3 PROCUREMENT AND SURPLUS PROPERTY Continues delegation of a core set of locally administered policies and procedures to govern procurement. Clarifies that the University is exempt from VITA procurement regulations. Validates that state contracts are optional for use in all areas except telecommunications services which remain mandatory. Substitutes a uniform set of Procurement Rules in lieu of the Virginia Public Procurement Act that: o Increases bid bond requirements from $100,000 to $1,000,000. o Provides additional optional flexibility to deal with capital projects valued under $1 million (renovations). o Exempts from review and approval by the Chief Information Officer of the Commonwealth the procurement of information technology and telecommunications goods and services, and use of federal General Services Agency ( GSA ) contracts. o Removes requirement for advance written determination for use of competitive negotiation when competitive sealed bidding is not practicable or not fiscally advantageous. o Allows for multiple awards in procurement of professional services and establishes professional services contract level at $50,000. o Establishes the small purchase level at $50,000. o Streamlines the competitive negotiations (RFP) process. o Exempts from competition several transaction categories (e.g. speakers and performing artists, memberships and association dues, conference facilities and services, etc.). o Lifts approval requirements to participate in cooperative contracts. Makes purchase from Virginia Industries for the Blind ( VIB ) optional. Enacts a Memorandum of Agreement that defines scope and expectations of electronic procurement systems operated by the state and the University and connected by interface or integration. Provides authority for disposition of surplus personal property. Allows retention of all proceeds at the University from sale of recycling and surplus property. Management Agreement Overview Page 3 of 8

4 PROCUREMENT AND SURPLUS PROPERTY (continued) New requirements: Post award notices for all sole source and emergency procurements in eva. Make a written determination that state contracts do not meet our business needs before engaging in cooperative contracting activities. Provide an annual report on cooperative procurement alliances. Management Agreement Overview Page 4 of 8

5 INFORMATION TECHNOLOGY Provides exemption from Virginia Information Technologies Agency ( VITA ) and Information Technology Investment Board ( ITIB ) regulations with respect to information technology strategic planning, expenditure reporting, budgeting, project management, infrastructure, architecture, ongoing operations, security, and audits. Gives full responsibility to the University for: o Overall IT strategic planning at the University, which shall be linked to and in support of the University s strategic plan. At least 45 days prior to the beginning of each fiscal year, the University shall make available its IT strategic plan to the State CIO for his review and comment. o Overall IT budgeting and investments at the University, which shall be linked to and in support of the University s IT strategic plan. By October 1 of each year, the University shall make available to the State CIO and the Information Technology Investment Board a report on the previous fiscal year s IT expenditures. o Management of all University IT projects. o Independent validation and verification of the University s major IT projects. o Management of the University s IT infrastructure, architecture, ongoing operations, and security. Provides for audits of IT strategic planning, expenditure reporting, budgeting, project management, infrastructure, architecture, ongoing operations, and security, by the University s Internal Audit Department and the Auditor of Public Accounts. Management Agreement Overview Page 5 of 8

6 HUMAN RESOURCES Maintains all University employees as state employees. Provides for two human resources systems the current state system administered by the Department of Human Resource Management and a new system to be developed by the University. Classified employees have the option to stay in the state system or make an irrevocable election to transfer to the University system. All employees hired on or after July 1, 2006 will become part of the University human resources system. Periodically, but no less than every two years, classified employees remaining in the state system will be given an opportunity to move to the University system. Continues for all classified employees participation in the Virginia Retirement System, the University s health insurance plan, the state s worker s compensation program, and the state grievance policy. Permits the University human resources system to have the following features that may differ from the state system: o classification and compensation plans, including merit based pay; o performance and evaluation plans and processes; o enhanced benefits as permitted in the legislation; o more flexibility in the use of leave, compensable or non-compensable awards to recognize employees; o rules of professional and personal conduct and standards of acceptable work performance and policies for corrective discipline; o policies and procedures regarding leave and disability for eligible employees; o layoff policies for salaried employees who lose their jobs for reasons other than their job performance or conduct, such as a reduction in force or reorganization at the institution; o severance benefit policies for salaried employees who are involuntarily separated for reasons unrelated to performance or conduct; and o new definitions for the use of administrative and professional faculty. Commits the University to regularly engage employees in appropriate discussions during the development of the University human resources system. Management Agreement Overview Page 6 of 8

7 Requires human resource data to be reported annually or upon request to state agencies, including but not limited to the Department of Human Resource Management, the Joint Legislative Audit and Review Commission, and the State Council of Higher Education for Virginia. Management Agreement Overview Page 7 of 8

8 FINANCE AND ACCOUNTING Allows creation and implementation of financial policies necessary to establish a financial management system. Allows the institution to control and manage moneys generated or received by the University, including the authority to hold and invest tuition, fees, research and sponsored programs funds, auxiliary enterprise funds, and all other non-general funds beginning in fiscal year provided that the University receives SCHEV s certification as meeting the state goals. Interest the State would have earned on non-general fund cash balances will be withheld until SCHEV s annual certification. Continues the Board of Visitors authority to establish tuition, fee, room, board, and other charges, with appropriate commitment provided to need-based grant aid for middle- and lower-income undergraduate Virginians. Provides a sum sufficient appropriation for all non-general funds. Allows the University to retain non-general fund savings generated from changes in Commonwealth rates and charges, including but not limited to health, life, and disability insurance rates, retirement contribution rates, telecommunications charges, and utility rates (unless prohibited by the Appropriation Act then in effect). Permits the University to create and implement any and all accounts receivable management and collection policies, which will be guided by the requirements of the Virginia Debt Collection Act. Permits the University to create and implement disbursement policies, to be guided by the principles of the Commonwealth s Accounting Policies and Procedures Manual. Allows the University to select, engage, and contract for consultants, accountants, financial experts, and other providers of expert advice and consultation and, after consultation with the Office of the Attorney General, private attorneys, as may be necessary or desirable. Permits the University to create and implement debt management policies, including the authority to issue bonds, notes, or other obligations that do not constitute State Tax Supported Debt and that are consistent with debt capacity and management policies and guidelines established by the Board of Visitors. Allows summary financial reports to be provided as requested instead of using the Commonwealth s financial reporting system. Allows the University to withdraw from any state insurance or risk management program provided that it pays to the Commonwealth any additional costs related to such withdrawal. Management Agreement Overview Page 8 of 8