Information Services & Technology Data Network Recharge Forum May 19 and 20, 2010

2 Challenges with Current Recharge Model  Nine-year old model is partially funded by mix of recharge, IST resources, node credits, and Chancellor’s reserves  The model includes core, riser, and station operations but is missing security, wireless, full depreciation, and capital investment  Resulted in a disproportionate benefit for departments that had many nodes at model inception FY  Highly complex accounting method  No provision for changing technology landscape (e.g., wireless)  Structural deficit: resources < expenses

3 Model Development Timeline Sep 07Project kickoff September 2007 Oct 07Formed an advisory committee of technologists, MSOs and Academic Senate representatives May 08Evaluated communication models from peer institutions Nov 08Vetted model with Campus Recharge Dec 08Reviewed proposal with Controller’s Office Feb 09Reviewed proposal with Deans Oct 09Evaluated campus population Feb 10Formed a governance council Jun 10Prepare for July 1, 2010 implementation

4 Service Levels There are five components to the Data Network:  Core  Riser  Station  Security  ISP There are three levels of service:  Full Service  Core/Security/ISP (CSI)  Core Only Note: Overwhelming majority of departments are Full Service

5 Network Costs Does include:  all costs for operating and maintaining the network components (core, riser, station, security, and ISP)  completion of riser infrastructure projects  expansion of AirBears  completion of the ICCS project (Inter-building Communications Conduit System) Does not include:  Operation, maintenance, upgrade, or addition of riser or station infrastructure for CSI and Core Only service levels  Upgrade or addition of station infrastructure for Full Service

6 Monthly Charge = Data Network Recharge Rate x FTE FTE – extracted from PPS and HCM monthly (PPS – hourly employees, HCM – all others) Data Network Recharge Rate =Total Costs Total Population calculated annually FTE = full-time equivalent A way to measure the opportunity to benefit from the data network for all members of the campus, including, but not limited to, faculty, staff, students, student employees, residents of the campus, and visitors. The Recharge Formula

7 Sample Department ChargeCurrentFuture Node$130$0 Voice Surcharge$30$0 Data Network Recharge$0$400 Total$160$ nodes, 10 phone lines, 10 FTE

8 The Recharge Process Charges will appear along with other IST charges on a department’s monthly bill Charges will be one month in arrears (e.g., charges for July will appear in August ledgers) Departments will be charged only for the days an FTE is associated with that department Charges will be applied to chart strings in PPS or HCM An FTE can be divided across multiple chart strings Departments will have the option to override the chart string Chart string overrides will remain active until either the original or the override is modified

9 IST Billing Statement

10 List of IST Services

11 Change Chart String for IST Services

12 Contracts and Grants  The Data Network Recharge is designed as an indirect charge  Should not be included in future contracts and grants  Currently in the base year to develop the new F&A (Facilities and Administration) rate  Will be submitting the Data Network costs in the baseline for the new F&A rate  Collaborating with Campus Recharge and the Sponsored Projects Office (SPO) to develop process and communication

13 Chancellor’s Temporary Allocation  Allocation is implemented by the Campus Budget Office  The first principle for allocation will be to make the new model revenue neutral for departments (excluding auxiliaries)  The second principle for allocation will be to make the new model equitable for respective departments  Distributed to the Vice Chancellors  Applies to the first two years

14 Governance  The council membership broadly represents the campus community  Consists of representatives who possess key insights into the institutional and operational workings of the University  Responsibilities include: –functioning as a decision-making body, with respect to making business decisions for the operation of the infrastructure. –being advisory in terms of overall funding level in order to inform those at the institution responsible for making these decisions. –providing oversight as a forum where IST will present its operating finances for review and approval. –being a vetting body where IST will present primary architecture/design elements for comment and feedback.  Comments, questions, and concerns can be sent to:

15 Benefits  Has university oversight  Clear allocation of costs to communities  Fully costed  Funds infrastructure lifecycle  Dramatically increase Airbears coverage  Complete other components of infrastructure  Audit safe

16 Prepare for the New Model  Exclude fees from contracts and grants  Deactivate records for inactive unpaid workers  Determine if you will need chart-string overrides and prepare for data entry

17 More Information Project website: –Detailed information –FAQ –Subscribe to list for updates questions to: