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SCCE Higher Education Compliance Conference

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DOING MORE WITH LESSHow to Prioritize a Small Compliance Office in the Era of Dwindling Higher Education Funds

Tuesday, June 2, 2015, 10:30 a.m. - 12:00 p.m.2015 SCCE Higher Education Compliance Conference

WHO WE ARE

Gary Nimax

Assistant Vice President for Compliance and Enterprise Risk Management

University of Virginia


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WHERE WE COME FROM

University of Virginia

Gary’s Office

ABOUT THE UNIVERSITY OF VIRGINIA

Public research university and health system, founded by Thomas Jefferson in 1819

21,800 plus students 12,000 plus full-time employees Revenues of $2.78 billion


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WHO WE ARE

Chad Tindol

Director of Risk Management and Deputy General Counsel

The University of Alabama System

WHERE WE COME FROM

The University of Alabama System

Chad’s Office


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THE UNIVERSITY OF ALABAMA SYSTEM

3 research universities, a health system, and affiliates

62,000 plus students 37,000 plus employees Revenues of greater than $5 Billion

WHO WE ARE

Nedra Abbruzzese-Werling

Director of Compliance & Records Management Officer

State University of New York (SUNY)


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WHERE WE COME FROM

State University of New York System

Nedra’s Office

THE STATE UNIVERSITY OF NEW YORK

• community colleges• agricultural and technical institutes • online learning network

Largest comprehensive university system in the United States comprised of 64 institutions

• research universities• academic medical centers• liberal arts colleges

468,000 students in more than 7,500 degree and certificate programs nearly 2 million in workforce and professional development programs nearly 3 million SUNY alumni


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HOW TO PRIORITIZE A SMALL COMPLIANCE OFFICE in the Era of Dwindling Higher Education Funds

We Austin, Texas. We all come from small compliance offices. We have to maximize our limited personnel

resources so we can have an impact and effect measurable compliance progress.

What we all have in common

HOW TO PRIORITIZE A SMALL COMPLIANCE OFFICE in the Era of Dwindling Higher Education Funds

Our compliance roles at our campuses How our institutions’ compliance functions originated The structure of our respective offices Our reporting lines What our job encompasses day-to-day How our structure impacts our compliance function What we do to effect meaningful progress and change on

compliance issues

What we will discuss today


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Federal laws and regulations State laws and regulations Local municipal laws Case law Accreditation standards Institutions’ own internal rules, policies and procedures Contractual obligations:

• Contractual agreements• Employment contracts• Collective bargaining agreements

COMPLIANCE IN HIGHER EDUCATION

Sources of Compliance


“Colleges and universities today are probably the most heavily regulated organizations in the United States in terms of the number and types of statutes and judicial precedents with which they must comply.”

Barbara A. Lee, Fifty Years of Higher Education Law: Turning the Kaleidoscope, 36 Journal of College and University Law, 649-681, p. 649, 2010.

“Higher education institutions are subject to a massive amount of federal statutory, regulatory, and sub-regulatory requirements, stemming from virtually every federal agency and totaling thousands of pages.”

Recalibrating Regulation of Colleges and Universities: Report of the Task Force on Federal Regulation of Higher Education, February 2015, pg. 7.


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1970

TODAY

Between 1970 and 2014, the Code of Federal Regulations more than tripled in sheer page volume, from 55,000 pages to 175,000 pages

1997 to 2012: number of federal requirements higher education institutions were subject to grew by 56 percent


The Law

Sub-Regulatory Guidance2012: 270 “Dear Colleague” letters and other electronic = more than one new directive or clarification was issued every working day of the year.

Clery Handbook = approximately 300 pages, and will soon expand significantly in light of new regulations issued in 2014.

Regulation

Department’s 2013-14 Federal Student Aid Handbook = 1,050 pages.

Higher Education Act = 1,000 pages statutory language

Associated rules in the Code of = 1,000 Federal Regulations pages


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$“Compliance with

regulations is inordinately costly.”

- Conclusion of 2015 federal study on Higher Education Federal Regulation, Recalibrating Regulation of Colleges and Universities: Report of the Task Force on Federal Regulation of Higher Education, February 2015.


Hartwick College 2011-12• Characterized as a “modestly sized institution”• Spends $297,008 annually• More than 7,200 labor hours for data collection and

filing of required reports and forms• 7 % of non-compensation operating budget for

compliance costs

Institutional Studies to Assess Costs of Compliance

Vanderbilt University 2014• Approximately 11 % of Vanderbilt’s 2013 expenditures were devoted to compliance

with federal mandates = $150 million • Nearly 70 % of these costs absorbed by different offices, broadly affecting faculty,

research staff, administrative staff, and trainees in academic departments

*Source: Recalibrating Regulation of Colleges and Universities: Report of the Task Force on Federal Regulation of Higher Education, February 2015.


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American Action Forum Study: • Number of individuals in higher

education with the title of “compliance officer” has grown by 33 percent in 10 years

• Institutions spend 26.1 million hours annually completing Department of Education mandates

• This figure did not include regulatory burdens that go beyond completing forms, such as development and implementation of compliance policies

*Recalibrating Regulation of Colleges and Universities: Report of the Task Force on Federal Regulation of Higher Education, February 2015.

Institutional Studies to Assess Costs of Compliance

HOW DO WE DO MORE WITH LESS

• Share lessons learned and tactics utilized to effect meaningful, positive change with compliance at our institutions given the size of our offices and the scope of our roles.

• Impart the idea that size doesn’t have to matter• A small office can make a big impact with the

right partners at your institution and with the right message to your campus.

Goals for our Panel Presentation


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INTRODUCTION

How we became involved in compliance.

What we like about working inthe compliance field.

What our education background is andhow it helps with our Compliance positions.

How and why was the compliance office created at our institutions.

How many people comprise the Compliance office/function at our institutions.

ORIGINS OF OUR INSTITUTIONAL COMPLIANCE AND RISK FUNCTIONS


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REPORTING AND GOVERNANCE

What the reporting lines for compliance and risk functions look like.

How our compliance role is affected by the governmental structure of our organization.

BOARD INVOLVEMENT

How we engage our board in compliance discussions:• Discussions held in public or private sessions• Balance needs of informing your public Board with

maintaining privilege on specific issues• How to balance the necessity of "putting things in

writing," against the so-called "dangers" of putting things in writing


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DAY TO DAY & HOT TOPICS

Some of the most unusual or unexpected compliance issues that we have worked on.

Office's responsibilities for Title IX and CleryAct issues, especially as those relate to public's perception that there is a "rape crisis" on U.S. campuses.

PRIORITIZATION

Percentage breakdown of how time is spent and how that prioritization is determined: • Individual• Assessments• Administration• National benchmarks


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INVOLVEMENT WITH, AND OVERSIGHT OF, AFFILIATED ENTITIES

How our organizations are expanding the demands of compliance and risk management to affiliated foundations and organizations.

HOTLINE MANAGEMENT

What, if anything, is your office doing to meet the demands of "whistleblower" protection and anonymous reporting options?


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TRAINING

• How do you make the material resonate with the audience

• How do we get trainees to care about the topic such that they don’t just know they NEED to comply, but that they WANT to comply

Personal tactics for making training effective:

SIZE OF FUNCTION AND EFFECTIVENESS RELATIVE TO SIZE

Is a small compliance office an advantage or a disadvantage?


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ADVICE

If you could travel back in time to when you started your compliance work at your institution, what would you tell yourself? (with the benefit of hindsight and the things you have learned over the years)

ADVICE

Finish this sentence:

Your compliance function would be more complete if only ___________________.


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ADVICE

If you are a brand new compliance function, where do you start?

HOW DO WE DO MORE WITH LESS

QUESTIONS?

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