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The University of Iowa Quarterly Budget Officers Meeting January 2014 Organized by the Controller’s Office, Finance & Operations
Today’s Agenda
I. IT Compliance (Steve Fleagle)
II. Accenture - Shared Services Study (Terry Johnson)
III. Affordable Care Act & UI Employees (Richard Saunders)
IV. McGladrey - Cash Handling Assessment (Selina Martin)
V. EFR Grant Reports Enhancements (Audra Haddy)
VI. Purchasing Departmental Score Cards (John Watkins)
VII. eVoucher System Updates (Karen Housel)
VIII. FY2015 Proposed Fringe Benefits Rates (Selina Martin)
2
IT Compliance
Steve Fleagle
Associate Vice-President, CIO Office ITS
3
IT Security and Compliance Awareness
January 30, 2013 Steve Fleagle
Associate VP and CIO
Why is IT compliance important? • 2 reasons for policies:
• Legal, regulatory, or other mandates • Risk avoidance
• Several high-visibility incidents
• Auditors share noncompliance issues with the Board of Regents
• We know we aren’t fully compliant • Security incident analysis • Audit reports
What IT policies?
Policies can be found at: itsecurity.uiowa.edu/policy
• Developed by Campus IT Leaders • Includes 90-day vetting period
• Reviewed every 3 to 5 years
Key IT Policies
Acceptable use
Security framework
Institutional data access
Social Security number
Backups
Common Audit Findings Account controls and password strength Disaster recovery plan and backups Physical security of IT assets Software licensing issues
Inadequate monitoring of systems/logs Inadequate data protection in websites and applications
Challenges Campus IT Leaders Face
Lack of awareness
Lack of executive-level support
Budget constraints
Approved solutions don’t always meet needs, so … People do whatever they think is best Timeliness Features/capabilities
Non-IT experts perform IT work that isn’t compliant
Administrators’ Role in IT Compliance
Engage with and provide support for local IT leaders
in compliance issues
Make it clear who is responsible for IT
compliance
Make it known that IT compliance is important to
you
Provide adequate budget to ensure compliance
Questions?
Accenture - Shared Services Study
Terry Johnson
Assistant Vice President & University Controller Controller’s Office, Finance & Operations
13
Background
The University hired Accenture to perform an administrative services study on 3 Units: CLAS, Dentistry and Department of Internal Medicine
14
University Objectives
After reviewing the administrative staffing and transactional volumes of 3 Units, Accenture will develop a set of recommendations to achieve the following objectives: Improve quality of services delivered Improve compliance with university
policies and external regulations Improve efficiency and effectiveness of
operations
15
Project Status
12/2/13 – Start data collection Finalized “current-state” in early January 1/24/14 - Completed “deep-dive” discussions
with subject matter analysts from Accenture. 1/29/14 - Review data and preliminary findings
with Project Leaders from 3 Units included in the study
Early February – review draft report with 3 units Mid-February – receive Final report
16
Affordable Care Act
& UI Employees
Richard Saunders
Assistant Vice President for Human Resources Benefits Office, Human Resources
17
How will the Affordable Care
Act affect the benefits of
employees at the University of
Iowa?
18
McGladrey - Cash Handling Assessment
Selina Martin
Associate Controller Accounting & Financial Reporting and Capital Assets Management
Finance & Operations, Controllers Office
19
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McGladrey Engagement
November-December 2013 Project Charter/Deliverables:
To perform an assessment of decentralized payment receipts practices (“cash handling controls”).
To recommend immediate improvements to strengthen controls
To identify long term recommendations of additional improvements, including opportunities to reduce use of currency.
21
Site Visits
Visited 16 decentralized payment receipts locations, including areas in the following orgs:
Business Services Athletics College of Dentistry College of Medicine College of Engineering VP Student Life UIHC
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Results – FY15 Changes Affecting all Cash Handling Units
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A separate local cash handling procedure for each payment receipt location.
A specific employee name for each required cash handling role (maintained in the Institutional Roles application).
New role - Cash Handling Control Manager Org-level Budget Officers in approval path Update every 3 years or as changes occur Other controls
Results – Future improvements made by Finance & Operations
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AFR will conduct a monthly review of policy submission compliance.
AFR will conduct spot checks/visits to units. Treasury Operations will ensure eDeposit
access allowed only for departments with approved procedures.
We will work with L&D to build a tool/report to allow managers to efficiently check for training compliance.
We will evaluate creating mini-course for each cash handling role.
EFR Grant Reports Enhancements
Audra Haddy
Associate Controller & Director of Grant Accounting Finance & Operations, Controllers Office
25
EFR – Grant Reports
Demo of new reports & enhancements
26
Departmental Purchasing
Dashboard
Debby Zumbach
Director of Purchasing & Associate Director of Business Services
Finance & Operations/Purchasing 27
Dashboard At a Glance
• Creates a collaborative conversation with departmental staff that highlights both success and areas of opportunity for current departmental procurement processes.
• Provides an in-depth look at the procurement patterns from vendor spend,
method of procurement, cost savings and policy compliance for a department as a whole.
• Enhances communication to develop a proactive form of procurement that allows for a streamlined and efficient flow of orders through the various buying channels.
• Dashboards are being prepared now and meetings with campus departments to review the information will begin soon.
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Building a Strategic Partnership Providing Your Department with Spend Visibility
Goals of Discussion • The University’s Purchasing team is meeting with departments on campus to
ensure we are providing a high level of service. • During these meetings we hope to provide you with detailed spending visibility to
ensure that your purchasing patterns align with your departmental priorities. • Specifically, we hope to discuss with you:
o How much you are spending on goods and services o Which vendors your department is using and methods of ordering o Ways in which our office can assist with adding value to the procurement
process o Ways to save time and money
• We welcome any and all feedback throughout the discussion to improve the data that we are providing and to continue the development of our partnership.
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Department Spend Spend by Department Code
July 1, 2012-June 30, 2013
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Department Name Department Number
Purchase Order Spend
CS/CT Purchase Order Spend
eBuy Purchase Order Spend
Procurement Card Spend
Total Spend
Department One 0001 $6,694 $0 $458 $65,951 $73,103
Department Two 0002 $3,515,567 $0 $4,724 $338,217 $3,858,508
Department Three 0003 $5,580,994 $109,739 $271,929 $5,968,793 $11,931,455
$0$200$400$600$800
$1,000$1,200$1,400$1,600$1,800$2,000
Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13
Monthly Spend Summary In Thousands
Purchase Order
eBuy
Procurement Card
Total Spend = $15,753,329*
*Total spend remaining through report does not reflect CS/CT Purchase Order spend.
Department Spend Spend by General Education Fund 050
July 1, 2012-June 30, 2013
Department Name Department Number
Purchase Order Spend (Non Flood)
Purchase Order Spend
(Flood)
CS/CT Purchase Order
Spend
eBuy Purchase Order Spend
Procurement Card Spend
Total 050 Spend
Department One (050) 0001 $19,600 $0 $0 $4,000 $3,300 $26,900
Department Two (050) 0002 $15,425 $0 $0 $7,100 $2,000 $24,525
Department Three (050) 0003 $20,575 $0 $0 $4,200 $500 $25,275
Total Fund 050 $76,700
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Vendor Contracted Bid Total 050 Spend Johnson County Ambulance Service Yes SSJ $23,200 Search Incorporated Yes RFP 14370 $18,300 John Deere No No $9,250 Modern Piping Yes RFP 14126 $7,500 Dell Computer Corp Yes RFP 13787 $6,750 ServiceMaster Five Seasons Janitorial Yes No $5,000 Powers Manufacturing Company No No $900
Fund 050 Purchase Order Spend by Top Vendors
Fund 050 Procurement Card Spend by Top Vendors Vendor Contracted Total 050 Spend
HyVee No $3,500 OfficeMax Yes $1,225 AeroRental Yes $700 Menards No $375
Top Contracted Vendors Contracted By Bid Award
(Top Twenty P.O.)
Vendor Contract Bid Total Spend
# of Payment Transactions
Search Incorporated Yes RFP
14370 $947,850 38
Whelan Security of Illinois Incorporated
Yes RFP 14282 $413,405 96
ASI Signage N/A RFP 14803 $371,611 108
IMG College Seating LLC Yes RFP
13689 $347,162 1
Dell Computer Corporation Yes RFP
13787 $212,537 89
Modern Piping Incorporated Yes RFQ
14126 $205,199 99
Air International Yes RFP 14311 $200,843 6
Sound Concepts Incorporated Yes RFP
14523 $186,518 145
Coca Cola Refreshments Yes RFP
12794 $125,620 115
Best Buy For Business N/A RFP
14786 $111,160 25
Vendor Contract Bid Total Spend
# of Payment Transactions
Bus Services Incorporated N/A RFP
14421 $107,568 46
Patterson Medical Supply Incorporated
Yes RFQ 14178 $94,831 145
Monticello Incorporated Yes RFP
13043 $92,096 43
Winebrenner Red Carpet Travel
Yes RFP 13917 $90,000 1
D And K Products Partial RFQ-
14884 Other-
$40,874
$46,795 49
Air Incorporated Yes RFP 14608 $84,903 4
Aero Incorporated Yes RFP
14235 $70,832 4
Technical Specialty Systems
N/A RFP 14764 $62,730 1
Port O Jonny Incorporated Yes RFQ
13853 $54,250 30
Aegis Sciences Corporation Yes RFP
14754 $44,225 9
Top Contracted Vendors Contracted Without Bid Award
(P.O.)
Vendor Contract Bid Total Spend
# of Payment Transactions
Apparel Incorporated Yes No $571,603 360
Membership Corporation N/A No $495,149 17
Paciolan Systems Incorporated Yes No $372,988 10
Triple Crown Incorporated Yes No $213,130 3
XOS Digital Yes No $167,541 6
Bluechip Solutions LLC Yes No $161,750 6
ServiceMaster Five Seasons Janitorial Yes No $158,678 97
Productions Incorporated Yes No $129,133 58
Travel Services Yes No $67,500 2
Johnson County Ambulance Service Yes No $60,438 78
Vendor Contract Bid Total Spend
# of Payment Transactions
Level 3 Communications N/A No $48,000 12
Transportation Services Yes No $45,000 1
Assistant Systems LLC Yes No $40,875 2
Agile Technologies Yes No $25,000 1
Parts and Service Inc. Yes No $24,995 1
Clear Channel Outdoor Yes No $24,190 5
dcSteam Inc. Yes No $21,416 7
West Des Moines Community School N/A No $21,098 1
Travelers Incorporated Yes No $20,100 1
Top Vendors Off Contract
Top Twenty – P.O.
Vendor Total Spend
# of Payment Transactions
Equipment Incorporated $159,021 32
D And K Products $87,669 49
Shorts Management $56,238 1
Iowa Book And Supply Company $54,339 6
MBA Concrete Incorporated $50,523 5
Lighting Corporation $48,313 2
University of Wisconsin $48,285 2
Ad Venture Promotions $38,965 63
John Deere $38,900 3 Sign Productions Incorporated $38,304 12
Vendor Total Spend
# of Payment Transactions
CodeWorks Software Factory $35,825 26
Productions Incorporated $34,998 8 Innovative Sports Strategies LLC $31,800 4
Landscaping Inc. $30,476 12
Daktronics Incorporated $30,270 37
Cedar Rapids Company $27,500 12
Promotional LLC $27,484 17 Dave Long Protective Prod Incorporated $26,616 4
Kroll Ontrack Incorporated $26,500 2 Powers Manufacturing Company $25,574 5
Procurement Card Summary
Notable Vendors Vendor Spend
Hy Vee $149,974 OfficeMax $63,859 Taylor Incorporated $51,831 AeroRental $44,649 Graphic Printing and Design $36,951 Stella $36,240
Menards $34,571
Red Pepper Deli & Grill $32,558
Master Incorporated $32,506
Imprint Incorporated $31,332
Error Count by Type Error Type Count Error Type Count
Receipt Missing 71 Hotel Expense 3 Sales Tax under 10.00 34 Technology Policy 3 Unallowable Expense 33 Alcohol 2 Travel Information 19 Gasoline 2 Business Meals 14 Airfare Upgrade 1 Personal 14 Credit information 1 Sales Tax 10.00 or more 14 Total Errors 211
Top Requesters & Cardholders by Spend
July 1, 2012-June 30, 2013
Purchase Order Spend by Top Requesters
Procurement Card Spend by Top Cardholder
Requisitioner Purchase Order Spend
% of Total Spend
Requisitioner One $3,302,538 20.96%
Requisitioner Two $1,188,791 7.55%
Requisitioner Three $886,768 5.63%
Requisitioner Four $716,997 4.55%
Requisitioner Five $569,507 3.62%
Requisitioner Six $519,355 3.30%
Requisitioner Seven $388,564 2.47%
Requisitioner Eight $375,750 2.39%
Requisitioner Nine $301,159 1.91%
Requisitioner Ten $189,209 1.20%
Cardholder Procurement Card Spend
% of Total Spend
Cardholder One $274,827 1.74%
Cardholder Two $253,431 1.61%
Cardholder Three $241,975 1.54%
Cardholder Four $218,589 1.39%
Cardholder Five $197,850 1.26%
Cardholder Six $183,129 1.16%
Cardholder Seven $168,397 1.07%
Cardholder Eight $167,118 1.06%
Cardholder Nine $166,747 1.06%
Cardholder Ten $148,968 0.95%
Opportunities Contracted Business
Vendor Name Contract Expiration
Contract Number (s) Spend Discussion Notes
Sound Concepts 09/01/2014 2488 $186,518
ServiceMaster 06/01/2013 5898 $158,678
Level 3 Communications 08/24/2013 N/A $48,000
Clear Channel Various 7104, 7103, 7101, 6140, 4147, 5394 $24,190
Opportunities Bids
Current Vendor/Service Type Spend Possibilities
HyVee, Chef Mickey’s, IMU & Various/Catering Bid $429,144+
ASI & Sign Productions/Signage Bid $409,915+
Rausch Productions, Productions Incorporated, dcSteam & Various/ Video Services
$185,547+
Graphic Printing and Designs, Imprinted Incorporated/Promotional Apparel $89,916+
Johnson County Ambulance/ Ambulance Service $60,438
Various/Promotional Items $27,484+
ASAP/Transcription Services $23,585
Opportunities Training and Development
Opportunity Type Vendors Impacted/Notes Discussion Notes
Confirming Orders Windstar, Synergy, ServiceMaster, Productions Incorporated, Whelan Security, etc.
Ordering Methods • OfficeMax/Grainger Etc. – Order via eBuy • Apple Products – Order through IMU
Blanket Orders
• Utilization of blanket orders when in place. (Avoid confirming orders-Various Vendors)
• Blanket order management • Alternate methods of ordering
Contracts on Requisitions Travel Services and new contracts
Contract Utilization MBA Concrete used-Contracted vendor Williams Sewell.
Plumbing
Plumb Supply Contracted Vendors: • Plumbers Supply Company, Ferguson
Enterprises Incorporated, First Supply, and Schimberg Company
Procurement Card Usage • Discuss training opportunities and best practices with applicable card holders.
Current Projects Underway
Current Vendor/ Service Type Spend Project Notes
Apparel Incorporated, Monticello/Misc. Apparel $251,117+ RFP 14891 awarded to Monticello
Modern Piping/Plumbing Service & Repair $205,199 RFP being drafted
D and K & Landscaping Incorporated/Chemicals $118,145+ RFP 15078 evaluations completed, contracting underway
Recognition Items $34,950 RFP 14960 evaluations completed and contracting underway North Liberty Painters/ Paint $20,272 RFP 15050 has closed, pending evaluations
Building a Strategic Partnership How can we serve you better?
Concluding Thoughts • Training sessions for ordering methods. • New project next step scheduling. • What are some upcoming projects and/or purchases for your area? • What else can purchasing do to serve you better? • Is there additional data that would be useful?
Purchasing Action Items
Department Action Items
eVoucher System Updates
Karen Housel Accounts Payable, Travel and
Purchasing
42
Type of Expense
Refunds and Reimbursements will now be separate Types of Expenses
When Reimbursements is selected users will be asked to provide additional information regarding specific types of reimbursements
A new field called “Type of Reimbursement” will display and the initiator will be required to choose one of the following:
Food Food and Alcohol Computer(Desktop, laptop or printer) Other 43
Type of Reimbursement- Food or Food and Alcohol Departments will now be required to provide the following information:
What was the event Why was food required for the event Provide the names and affiliations of the
individuals who attended the event
These questions will also be applied to all eVouchers with an expense type of Food or Food and Alcohol
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Type of Reimbursement- Computer(Desktop, laptop or printer) Departments will now be required to provide the following information:
Who is the end User Location for the equipment Explanation for why the purchase was not
made using the University’s campus-wide vendor contracts
Total Merchandise Amount Total Sales Tax Amount
45
FY 2015
Proposed Fringe Benefits Rates
Selina Martin
Associate Controller Accounting & Financial Reporting and Capital Assets Management
Finance & Operations, Controllers Office 46
Fringe Rate Projections
1. Charge rate versus actual rate 2. Variables – salary base & fringe costs 3. Odd year / even year basis 4. Surpluses & deficits FY2015 rates are proposed rates & not final until negotiations with feds has taken place.
47
Fringe Rate Trend 2010-2015 (rates charged to campus)
48
24.00% 22.40%
30.30% 29.20%
38.50% 35.70%
40.50% 36.90%
53.00%
46.50%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2010 2011 2012 2013 2014 2015P
Fringe Charge Rate Trend (2010-2015)
C Faculty
NC Faculty
P&S
SEIU*
Merit
Fellows
Post Graduate
House Staff*
Temporary
Students*
Miscellaneous
C Faculty
NC Faculty
P&S
SEIU*
Merit
Fellows
Post Graduate
House Staff*
Fringe Rate Trend 2012-2015 (rates charged to campus)
49
Fringe Pool
FY12 Charge
Rate
FY13 Charge
Rate
FY14 Charge
Rate
FY15 Charge
Rate (Projected)
Comments
Clinical Faculty 23.10% 22.60% 21.40% 22.40% Increase in health costs, vacation/sick payout due to retirement of employees, lower prior year surplus; offset by decrease due to exclusion of OPEB costs.
NC Faculty 28.40% 27.70% 27.80% 29.20%
P&S 38.50% 38.00% 34.50% 35.70%
SEIU 39.30% 38.00% 36.00% 36.90% Increase in health costs, lower prior year surplus; offset by decrease due to exclusion of OPEB costs.
Merit 55.00% 57.00% 51.00% 46.50% Decrease due to exclusion of OPEB costs and prior year’s surplus
Post Grad 21.00% 19.50% 15.80% 12.50% Decrease in rate due to prior year’s surplus
Fellowship 10.50% 11.00% 10.00% 6.00% Decrease in rate due to prior year’s surplus
House Staff 20.00% 30.00% 32.00% 39.00% Increase in health costs as transition continues to University health plan.
Temporary 11.00% 11.50% 11.70% 11.70% Relatively stable rate in the long term
Students 9.00% 9.00% 8.50% 9.20% Relatively stable rate in the long term
Misc 4.20% 3.80% 4.40% 4.80% Relatively stable rate in the long term
50
