1. Shared Services: Driving Operational Efficiencies and Service Excellence Brian Hutzley Vice Chancellor for Financial Services & CFO (Interim) 0

2. 1 1 SUNY will reinvest resources from administrative savings to instruction and student services.

3. 2 2 System-wide Initiatives Strategic Sourcing IT Transformation Administrative Alliances Campus Alliance Networks Research Foundation Functions Auxiliary Services Strategies

4. 3 3 Shared Services System-wide Initiatives Campus Alliance Network Accountability & Reporting Policies System Administration and University- Wide Programs Budget, Planning and Investment College Council, Alumni, Foundations Research Foundations & ASC’s Strategic Enrollment & Capital Master Plan IT Transformation Strategic Sourcing Administrative Alliances

5. 4 4 System-Wide Initiatives Transaction processing - payroll, payables, billing, and collection. Functional expertise - procurement, MWBE, financial aid, internal control, information security, real estate, environmental and employee benefits. Research Network - SUNY academic medical centers - phased investment in people, core facilities, and IT. Library and Information Services - procurement, management systems, application upgrades, reporting systems Energy Conservation, which began during the Middle-Eastern oil crisis in the early 1970s, had by 2006-07 reduced energy use by nearly 40 percent and saved over $1.2 billion in cost avoidance measures. Online learning efforts - course management, improving access & affordability, course selection, and tech support. Academics initiatives – advising tools, tutoring program. Policy & Procedures – templates, training, internal control reviews; compliance

6. 5 5 Shared Services System-wide Initiatives Campus Alliance Network Accountability & Reporting Policies System Administration and University- Wide Programs Budget, Planning and Investment College Council, Alumni, Foundations Research Foundations & ASC’s Strategic Enrollment & Capital Master Plan IT Transformation Strategic Sourcing Administrative Alliances

7. 6 6 Strategic Sourcing DOB/OGS Partnership State-wide Accenture Consulting Multi-year Project Goals Savings Knowledge Transfer Process Improvement – Modernize procurement practices – Reduce administrative burden – Speed up procurement process Phase 1 : $165M Spend $10-27M (9-20%) Savings IT Hardware IT Software Office Supplies Fleet Cards

8. 7 7 Shared Services System-wide Initiatives Campus Alliance Network Accountability & Reporting Policies System Administration and University- Wide Programs Budget, Planning and Investment College Council, Alumni, Foundations Research Foundations & ASC’s Strategic Enrollment & Capital Master Plan IT Transformation Strategic Sourcing Administrative Alliances

9. 8 8 Shared Function, Multiple Campuses, Single Administration Budget, Accounting, and Student Accounts Human Resources External Affairs -Development, Alumni, Communications, FOIL, Government Relations Marketing Energy Management Information Technology Enrollment Management Auxiliary services –Food, Bookstore, Laundry, Print Shop Libraries University Police Research and Sponsored Programs Veterans Affairs Institutional Research Financial Aid Educational Opportunity Program

10. 2012-13 Executive Budget Overview Brian Hutzley- Vice Chancellor & Chief Financial Officer January 31, 2012

11. Operating Budget Summary 2012-13 General Fund Support essentially flat from 2011-12 –Slight increase in general fund support for State- Operated campuses –Community College per FTE funding level of $2,122 maintained –State support for three University Hospitals maintained at 2011-12 level –Statutory colleges at Cornell and Alfred University funded at 2011-12 levels –Adequate appropriation level to recognize $300 resident undergraduate tuition increase also recommended * 10 * UG tuition increase is in accordance with second year of five year rational tuition plan

12. State-Operated Colleges Addition of $3.8M from 2011-12 levels for certain collective bargaining costs at State-operated colleges No additional funding for general inflation (Requested $4M) University-Wide program funding realignment recognized Mid-year funding increase of $2.95M for ATTAIN & EOP continued Funding for last installment of tuition share ($16.5M to bring to 50%) not included Requested funding for SUNY Works strategic initiatives of $40M not included 11

13. Community Colleges Base Operating aid of $2,122 per FTE student from 2011-12 maintained * Slight decrease in appropriation reflects changes in enrollment Rental Aid increased by $406K (3.6%) $653K (39%) reduction in funding for Community College Child Care Centers (reflects removal of legislatively-added funding) Funding to increase state-support over five years to 33% ($21.5M or $205/FTE) not included 12 * State Aid for 2011-12 budgeted at 24.8% of net operating costs

14. University Hospitals Maintains State support at 2011-12 level ($60M) –2011-12 funding level had represented a reduction of $68.7M from 2010-11 level –Additional requested support for fringe benefit differential of $55.6M not included –Total Fringe Differential is $170M + 13

15. Summary of 2012-13 Executive Budget 14 2012-13 State Tax Support (Millions of dollars) 2011-12 Adjusted Base 2012-13 Budget Request 2012-13 Executive Budget Change from 2011-12 % Change from 2011-12 Change from Budget Request % Change from Budget Request Summary State Operated Campuses832.3896.5839.26.90.8%(57.3)-6.4% Statutory Campuses129.3138.8129.3-0.0%(9.5)-6.8% Total State Operated$961.6$1,035.3$968.5$6.90.7%($66.8)-6.5% Cornell Cooperative Extension3.94.73.9-0.0%(0.8)-17.0% Hospital Support60.0115.660.0-0.0%(55.6)-48.1% Community Colleges441.4465.0434.2(7.2)-1.6%(30.8)-6.6% General State Charges213.0 -0.0%- Total$1,679.9$1,833.6$1,679.6($0.3)0.0%($154.0)-8.4%

16. 2012-13 Capital Budget- New Appropriations Educational Facilities –$550M in Critical Maintenance funding –Represents 5 th of 5 annually expected amounts totaling $2.75B NY SUNY 2020 –$215M approved funding campus financed debt at SUNY Buffalo –$184M in gift related spending authority for SUNY Buffalo & SUNY Stony Brook State-Operated Residence Halls –$45M in pay as you go funding –No additional debt-financed funding provided due to concerns with State’s ability to issue debt Community Colleges –$86.97M in funding provided –Represents 50% State share for Community College projects with local sponsor support Hospitals –No additional debt-financed funding provided due to concerns with State’s ability to issue debt 15

17. $100M of Savings 5% 16

18. Shifting Administrative Cost Savings to Instruction Through its shared services initiative, SUNY will reduce administrative costs and move those resources toward direct instruction and student services. Over the next 3 years, all SUNY campuses will shift—at minimum—5% of their administrative spending to direct instruction and student services, resulting in $100M being reinvested. Faculty ! Advising ! Tutoring! Labs! 17

19. Savings will come from four main areas 18

20. Savings will come from four main areas: –Strategic Sourcing - Working with the State of New York (DOB/OGS) and Accenture Consulting Group we will use our combined buying power to drive savings. –IT Transformation – A complete transformation of how we manage and use IT will not only drive savings but increase our overall service levels provided to our students and the campuses. –Transaction Processing- Transaction based processing will provide improved service at a reduced costs for payroll, benefits, accounts payable, travel, and other basic administrative functions. –Campus Alliance Network - Launched in August 2011, the Campus Alliance Network’s partners campuses to achieve savings, efficiencies and improved services. Working together the campuses establish their own plans, but as a System we share in our successes and best practices. 19

21. SUNY MWBE Program Action Plan SUNYPPAA January 31, 2012

22. The Chancellor has recommended and the Board of Trustees have adopted a Resolution on reporting on SUNY MWBE utilization and training to ensure compliance with Executive Law Article 15-A. A letter is being sent from the Chancellor to campus Presidents outlining SUNY’s commitment to the University’s MWBE program and campuses’ mandatory compliance. I will send a memorandum to campus Business Officers detailing the new MWBE legislation and compliance requirements. The MWBE component has been re-introduced to Presidential evaluations. SUNY’s COMMITMENT

23. PROCEDURES & TRAINING The University’s MWBE procedure (#7557: Participation by Minority Group Members and Women (MWBEs) with Respect to State University of New York Contracts) has been updated to reflect the new legislation, reporting instructions to capture campuses’ utilization of MWBE subcontractors and best practices in making a Good Faith Effort. System Administration will continue to develop enhanced MWBE training modules: 1.one which will be mandatory for facilities staffs (with job responsibilities that include construction-related procurement) and procurement staff; and 2.one which will focus on University Centers and their commitment in their SUNY 2020 proposals to improve SUNY performance in MWBE utilization.

24. ASSESSMENT & REPORTING Annual report to the Board of Trustees & Chancellor on expenditures made with MWBEs and WBEs and discuss strategies to increase the University’s contracting with these business entities. System Administration will 1.make modifications to the central accounting system and work with the Department of Economic Development to allow automated reporting by campuses of the payments to MWBE sub-contractors. 2.develop and issue, on a quarterly basis, a University-wide report card on campus MWBE utilization to Presidents. The report will include all campuses’ utilization and highlight best practices to assist under- performing campuses. The SUNY Purchasing Association committee on MWBE Utilization will continue to identify best practices and search for new strategies to improve MWBE participation in SUNY contracts.

25. RESOURCES & RECOMMENDATIONS The University will: 1.continue to discuss best practices and opportunities to increase MWBE utilization with the Construction Fund; 2.work with the DED to enhance the University’s MWBE program; 3.partner with NYS Small Business Development Centers, Entrepreneurial Assistance Centers and Minority Business Development Centers to announce procurement opportunities to MWBEs and solicit their participation in SUNY contracts; 4.have campuses designate a person to serve as a MWBE officer or partner with other campuses to hire a shared or regional MWBE officer; and 5.where appropriate, include an MWBE component in staff evaluations.

26. Current Goals State-wide GoalsSUNY Goals Category MBEWBEM/WBEMBEWBEM/WBE Construction 14.33%8.41%22.74%7%4%11% Construction-related services 13.21%11.32%24.53%7% 14% Non construction-related services 19.60%17.44%37.04%10%8%18% Commodities 16.12%10.93%27.05%8%6%14% Total 16.53%12.39%28.92%10% 20%