outside spend team - update to the staff advisory council august 14, 2014 1
TRANSCRIPT
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Outside Spend Team -Update to the Staff Advisory Council
August 14, 2014
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Creighton is committed to student success through a powerful Jesuit education built on academic excellence, social justice and personal growth. The University will be able to flourish and grow in its aspirations by making strategic decisions that will help it adapt to the demands of the higher education marketplace and remain true to its Jesuit mission.
One Creighton – University strategy drives outside spend efficiencies
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Why do we care about outside spend?
• To ensure that Creighton remains a healthy and vibrant university it is imperative that we strategically plan for the future and implement cost effective behavior.
• To establish and maintain efficient operations, the outside spend project is designed to help Creighton have the funds it needs to invest in its future through:
PeopleFundraisingMarketingResearchAcademic programs
Cost savings required to fund the investments: $25 million by FY17
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Strategic Plan - Operations Initiative
Outside Spend – Project Plan
Data collection – how are we spending $ today
Develop strategy for all large vendor contracts
Reduce off contract spend
Reduce discretionary spending – policy, price, training
Cross campus outside spend team to review data & make recommendations to President’s Council
Cross campus outside spend team to lead subteams to facilitate problem-solving, engagement & implementation
Progress to Date:Cost savings Goal FY 15-17
$25 Million
7/31/20140
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10
15
20
25
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RemainingSavings to Date
$17M FY16 goal
$9M FY15 goal
$4.8 million of savings achieved as of 7-31-14
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Feedback Session with Staff
• Invited approximately 150 staff to attend information sharing & feedback sessions in late May
• Asked for feedback about ideas presented:- Barriers to success & ways to overcome- Other ideas for savings
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Initiatives Discussed
• Large vendor & buildings/grounds maintenance RFPs
• Utilities review & investment prioritization
• Decrease off contract purchases
• Small $ Order consolidation
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Initiatives DiscussedDeveloping Guidelines/Processes/Helpful Hints for Expense Categories:
– Maintenance supplies
– Printing
– Computer hardware & software
– Research & lab supplies
– Cell phones
– Travel
– Catering
– Subscriptions, books
– Flowers, coffee, water
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Feedback Received from Staff• More communication, clear guidelines & policies, identify points of contact for
questions- working on communication plan for fall semester- developing an administrative assistant email distribution list
• More training on CUBuyPlus, printing, travel tool, etc.- expanded CUBuyPlus users group sessions to all users- printing helpful hints email in development- working with Travel & Transport on travel tool training sessions
• Provide list of common items purchased & preferred vendors
• Catering concerns - $50 minimum for delivery; rationale for cost of soda, water on campus vs. lower cost off campus
- planning for discussions with Sodexo- address in communication plan
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Next Steps
• Prepare communications for fall & ongoing
• Work on feedback items from staff
• Develop reporting to track progress by category
• Schedule quarterly administrative staff discussion sessions
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APPENDIX
NOTE: FY15 cost savings goal of $9M represents 3% of total FY14 budgeted operating expenses.
164,730
29,589
93,792
4,60523,336
7,414
FY14 Budgeted Total Operating Expenses($Thousands)
Salaries and Wages
Benefits
Non Capital Expense
Capital Expenditures
Depreciation and Amortization
Interest Expense
8,2616,369
5,068
5,054
4,657
3,634
2,6451,9741,918
1,348
1,109814
2,0659,262
12,857
26,753 UtilitiesComputer hardware/software incl maint.Subscriptions/books (libraries & dept)SuppliesTravelFurniture & EquipmentCatering/entertainments/business mealsDues, memberships & conferencesBuildings & grounds maintenancePhones, internet & cable (incl mobile phones)Property & liability insurancePostage/parcel serviceMarketing/AdvertisingCost of inventoryOther contracted servicesAll other expenses
Breakdown of Non-Capital Expense by Category($Thousands)