Meeting of the Board of Visitors Audit, Compliance and Risk Committee June 12, 2015
ACADEMIC DIVISION ENTERPRISE RISK MANAGEMENT (ERM) GARY NIMAX ASSISTANT VICE PRESIDENT FOR COMPLIANCE AND ENTERPRISE RISK MANAGEMENT
Presentation Schedule of ERM Mitigation Strategies Management of human capital Detailed Risk Review with Board of Visitors February 2015 (update with metrics in June) Legal compliance risks (federal/state/other) June 2015 Organizational Excellence June 2015 Sufficient funding/resources to achieve goals June 2015 Reputation with key stakeholders September 2015 Cybersecurity/leveraging IT September 2015 Safety/security of students, faculty and staff September 2015 Changes in higher education November 2015 Geo-political and economic risks November 2015 3
Achieve Competitive Compensation Management of Human Capital The University s faculty compensation must be competitive with top AAU peers At its February 2013 meeting the Board of Visitors approved a resolution supporting the goal of raising average faculty salaries into the Top 20 among UVa s Association of American University (AAU) peers by June 2017. Due Date Action Plans Responsible Person June 2015 Monitor University s position in AAU rankings. UVa s position in AAU rankings with respect to faculty salaries As of 6/30/11: #31 As of 6/30/12: #29 As of 6/30/13: #32 As of 6/30/14: #27 As of 6/30/15: #28 4
Manage Generational Turnover in Faculty Management of Human Capital The University must effectively manage the generational turnover in faculty Identify hiring priorities, adjusting institutional and professional incentives for interdisciplinary hires. Recruit continuously to more accurately identify high-potential faculty, build stronger relationships with targeted candidates, and close recruitment efforts successfully. Leverage current talent and new faculty hiring opportunities to focus research on those intellectual and social challenges where it can have the most impact. Due Date July 2015 Sept. 2015 June 2015 Action Plans Annually, the will work with deans and faculty to develop hiring plans that are coordinated across schools as part of the annual budget process. Assess recruiting and retention performance annually. Include in annual Academic Division budget the estimated cost of faculty hires including start-up packages. Achieving target number of faculty hires included in school plans Yield on offers made Success rate on retention offers Related costs in annual budget $10.5 million for FY16 Responsible Person and COO 5
Effective Succession Planning Management of Human Capital The University must have effective succession planning (for faculty); Chief Operating Officer (for staff) Faculty Enhance institution-wide infrastructure and support of faculty to: o Enhance their development as teachers and leaders in the University community. o Encourage and support research, creative arts, scholarship and innovation. Staff Continue to enhance and expand Center for Leadership Excellence programs in leadership, career development, professional skills, and technical training. Continue to expand the high-potential staff succession development program. Due Date Action Plans Responsible Person Sept. 2015 Sept. 2015 Develop training program for faculty department chairs to focus on development of management skills. Launch course development institute through Teaching Resource Center to focus on development of faculty teaching skills. Vice for Faculty Affairs Vice for Academic Affairs June 2015 Expand high-potential staff succession development program with Vice President for Human new cohort of 25 staff. Resources June 2015 Complete robust career paths linked to each staff job family. Vice President for Human Resources Faculty and staff retention rates Percentage of open positions filled by internal candidates TBD TBD 6
Effectively Pursue Organizational Excellence Capitalize on organizational excellence resource alignment and optimization. The University must have efficient services, processes, and procedures to effectively use and steward its resources in support of mission activities. Chief Operating Officer Leadership of OE by dedicated full-time professional staff. OE governance council led jointly by academic and administrative leadership. Project portfolio that includes functional reviews and process redesigns supported by a foundational benchmarking study of key business processes. Aggressive targets for OE are integrated into annual budget process. Due Date Action Plans Responsible Persons Oct. 2015 Development of web-based portal and dashboard to support efficient life cycles of research awards from pre-proposal to program completion. Office of Sponsored Programs Ongoing Strategic sourcing of procurement for high quality customer service and to achieve volume discounts. Director of Procurement Jan. 2016 Create shared center of excellence for University and Foundation gift Treasurer processing. Finalize design and begin implementation of future state HR model. Vice President for June 2015 June 2016 Human Resources Complete consolidation of email systems and continue consolidation of IT Chief Information servers and data centers. Officer Oct. 2015 Implement fully automated travel and expense management system. Director of Procurement Sept. 2015 Develop detail plan for addressing JLARC recommendations on span of VP for HR and VP for control and procurement. Mgmt and Budget Total savings of $150 million over Achieved savings of $19.5 million in FY 15 and targeted savings of FY15-22 $12.7 million in FY 16. 7
Maintain Sufficient Funding/Resources to Achieve Goals Financial Risk UVa must have sufficient resources to pursue strategic programs and maintain core programs. Chief Operating Officer Financial performance monitored against Multi-Year Financial Plan. Monitoring implementation of Cornerstone Plan. Due Date Action Plans Responsible Person July 2015 Annually update Multi-Year Financial Plan. AVP for Finance June 2015 Report progress on Cornerstone Plan to BOV. President Spring 2016 Spring 2016 Finalize plan for Bicentennial Campaign and obtain BOV approval. Complete plan for University research enterprise with focus on investment and growth. Annual performance against Multi-Year Financial Plan Annual philanthropy results Bicentennial Campaign Growth in research enterprise Endowment performance reports Senior VP for Development Vice President for Research 8
Comply with Federal, State, or Other Established Regulatory Requirements Legal compliance risks (state/federal/other) UVa must comply with federal, state, university, or other established regulatory requirements Chief Operating Officer and General Counsel Established institutional compliance program using the best practice elements of a successful program: 1. Compliance standards and procedures; 2. Oversight by high-level personnel, with periodic reporting. 3. Due care in delegating substantial discretionary authority; 4. Effective communication to all levels of employees; 5. Systems for monitoring, auditing and reporting; 6. Consistent enforcement of compliance standards; and 7. Reasonable steps to respond to and prevent offenses. General oversight of all compliance functions through Assistant VP reporting to EVP/COO. Appropriate compliance policies across all major areas of risk health system, research, athletics, human resources, finance, etc. Close working relationship with Internal Audit to coordinate monitoring activities. University helpline for reporting compliance issues. Due Date Action Plans Responsible Person Ongoing Compliance reports reviewed with Audit Committee. AVP for Compliance/ERM Fall 2015 Enhance University compliance with Clery Act and Title IX. o Hire full-time Clery and Title IX Coordinators o Appoint and train campus security authorities across Grounds o Complete final policy on Sexual Misconduct and implement supporting processes and procedures. President, EVP-COO, General Counsel, and Vice President for Student Affairs Number of significant compliance exceptions in FY15-16 9