1. Printing Chargebacks November 2014 Printing Chargeback Task Force: Rick DeVries, CIT Business Services Laura Eberstein, Financial Services Randy Nieuwsma, CIT Printing Services

2. Overview  Old chargeback model needs an overhaul:  Inconsistent across printing platforms  Does not encourage use of lowest cost options  Do not know our true cost for printing  Good faith attempt to move from “we don’t know” to “we think we know” the cost of printing

3. Guiding Principles  Target: 20% cost reduction  Cost recovery neutral  Incentives for cost savings  Individual accountability  Costs are pooled and charged back to departments  Costs are tracked and managed  Chargebacks are fair, understandable, and defensible  Usage information is provided to departments  Departments are involved in decisions that impact their costs

4. Historical Costs  Historical costs were spread across every department and buried in many budgets, charge cards, and grants  Impossible to accurately know historical costs at institutional level and at department level

5. Financial Overview  Costs and chargebacks are calculated with best information available  Impact to each department will vary  Overall institutional costs can be lowered

6. The Basics  Device charge  Encourage device sharing  Promotes reduction of low volume devices  Not a lease/rental fee  Click charge  Highly competitive base rate at Printing Services  Encourage use of lowest cost devices  Device + Click charges designed to fully recover printing costs  Chargeback program retroactive to September 1

7. Device Charges Monthly RatesB&WColor MFD$50$75 Laser$25$35 Local$10$12.50

8. Click Rates B&W (single side) Color (10x b&w) Printing Services$0.0225$0.225 MFD$0.0255$0.255 Laser printer$0.0285$0.285 Local printer$0.0315$0.315 Duplex discount$0.005

9. Monthly Click Report Summary report each month Understand your click charges Opportunity for discussion with top users Additional reports available CIT will consult on workflow options and optimization

10. Student Printing  Student employees now choose appropriate cost center  Student personal printing charged to Student Technology Services (STS) budget rather than departments paying for paper and toner  Students will be charged the same click rates as everyone else on campus – a 40% reduction for a typical student  More options to lower printing costs are now available  Print quotas will be lowered by 40% starting Interim 2015

11. Student Print Quotas Term Old Amount New Amount % Decrease Fall$30$1840% Interim$15$940% Spring$30$1840% Summer$20$1240%

12. Transitioning  Funds consolidated and re-allocated to Department Printing ‘50318’  Student printing funds transferred from department budgets to Student Technology Services budget

13. Transitioning  Old way:  Printing Services charged to ‘50315’ (Printing Services)  MFD charged to ‘50318’ (Copier/MFD)  Paper & toner charged to ‘50310” (Campus Store)  Paper & toner not ordered through OfficeMax charged to ???

14. Transitioning  Old way:  Printing Services charged to ‘50315’ (Printing Services)  MFD charged to ‘50318’ (Copier/MFD)  Paper & toner charged to ‘50310” (Campus Store)  Paper & toner not ordered through OfficeMax charged to ???  New way:  Printing Services charged to ‘50315’ (no change)  Device & click charged to ‘50318’ (Department printing)  Standard paper & toner charged to central fund  Non-standard paper charged to ‘50310’ (Campus Store)

15. Transitioning: Department Reallocations  Goal: Make sure there is enough money in the Department Printing (50318) budget to fund anticipated costs  Funds stay within the department and are reallocated from Campus Store and General Supplies to Department Printing  Formula based on:  2013-2014 print volumes  Estimate of 2014-2015 costs  Funds from both Campus Store and General Supplies

16. Transitioning: Student Printing  Goal: Transfer funds into Student Technology Services (STS) budget to cover anticipated student printing costs  Funds will be transferred from department budgets to the STS printing budget  Formula based on:  2013-2014 print volumes  Anticipated printing costs  Only departments with student computer classrooms  Funds from both Campus Store and General Supplies

17. Future Reductions  Goal: Reduce institutional printing costs by 20%  How:  Provide & encourage lower cost printing options  Improve Printing Services on-line ordering system  Promote “print to digital”  Assess printing work flows to reduce print volume  Reduce waste  Reduce fleet size  Encourage shared devices  Discourage low volume & individual devices  Provide more capabilities in fewer devices  Provide monthly reports with print summaries by user  Uphold individual accountability

18. Future Reductions  Printing has been identified specifically as an area for cost savings and is part of the college’s plan to regain a sound financial footing  Reduce department printing budgets by as much as 20% starting next fiscal year  We appreciate your help and creative ideas as we look for ways to reduce the college’s printing costs

19. Program Review  Chargeback program reviewed annually and adjusted to maintain “cost recovery neutral” status  Program will be initially reviewed at the 6-month mark. Changes and adjustments will be considered at that time

20. Conclusion As we move printing costs from an unstructured state into a structured state things will be a bit “messy” initially. We will provide as much truth as possible and ask for your grace as we work and learn together. Questions?