outside spend team - update to the staff advisory council

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Outside Spend Team -Update to the Staff Advisory Council

August 14, 2014

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Creighton is committed to student success through a powerful Jesuit education built on academic excellence, social justice and personal growth. The University will be able to flourish and grow in its aspirations by making strategic decisions that will help it adapt to the demands of the higher education marketplace and remain true to its Jesuit mission.

One Creighton – University strategy drives outside spend efficiencies

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Why do we care about outside spend?

• To ensure that Creighton remains a healthy and vibrant university it is imperative that we strategically plan for the future and implement cost effective behavior.

• To establish and maintain efficient operations, the outside spend project is designed to help Creighton have the funds it needs to invest in its future through:

PeopleFundraisingMarketingResearchAcademic programs

Cost savings required to fund the investments: $25 million by FY17

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Strategic Plan - Operations Initiative

Outside Spend – Project Plan

Data collection – how are we spending $ today

Develop strategy for all large vendor contracts

Reduce off contract spend

Reduce discretionary spending – policy, price, training

Cross campus outside spend team to review data & make recommendations to President’s Council

Cross campus outside spend team to lead subteams to facilitate problem-solving, engagement & implementation

Progress to Date:Cost savings Goal FY 15-17

$25 Million

7/31/20140

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10

15

20

25

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RemainingSavings to Date

$17M FY16 goal

$9M FY15 goal

$4.8 million of savings achieved as of 7-31-14

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Feedback Session with Staff

• Invited approximately 150 staff to attend information sharing & feedback sessions in late May

• Asked for feedback about ideas presented:- Barriers to success & ways to overcome- Other ideas for savings

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Initiatives Discussed

• Large vendor & buildings/grounds maintenance RFPs

• Utilities review & investment prioritization

• Decrease off contract purchases

• Small $ Order consolidation

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Initiatives DiscussedDeveloping Guidelines/Processes/Helpful Hints for Expense Categories:

– Maintenance supplies

– Printing

– Computer hardware & software

– Research & lab supplies

– Cell phones

– Travel

– Catering

– Subscriptions, books

– Flowers, coffee, water

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Feedback Received from Staff• More communication, clear guidelines & policies, identify points of contact for

questions- working on communication plan for fall semester- developing an administrative assistant email distribution list

• More training on CUBuyPlus, printing, travel tool, etc.- expanded CUBuyPlus users group sessions to all users- printing helpful hints email in development- working with Travel & Transport on travel tool training sessions

• Provide list of common items purchased & preferred vendors

• Catering concerns - $50 minimum for delivery; rationale for cost of soda, water on campus vs. lower cost off campus

- planning for discussions with Sodexo- address in communication plan

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Next Steps

• Prepare communications for fall & ongoing

• Work on feedback items from staff

• Develop reporting to track progress by category

• Schedule quarterly administrative staff discussion sessions

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APPENDIX

NOTE: FY15 cost savings goal of $9M represents 3% of total FY14 budgeted operating expenses.

164,730

29,589

93,792

4,60523,336

7,414

FY14 Budgeted Total Operating Expenses($Thousands)

Salaries and Wages

Benefits

Non Capital Expense

Capital Expenditures

Depreciation and Amortization

Interest Expense

8,2616,369

5,068

5,054

4,657

3,634

2,6451,9741,918

1,348

1,109814

2,0659,262

12,857

26,753 UtilitiesComputer hardware/software incl maint.Subscriptions/books (libraries & dept)SuppliesTravelFurniture & EquipmentCatering/entertainments/business mealsDues, memberships & conferencesBuildings & grounds maintenancePhones, internet & cable (incl mobile phones)Property & liability insurancePostage/parcel serviceMarketing/AdvertisingCost of inventoryOther contracted servicesAll other expenses

Breakdown of Non-Capital Expense by Category($Thousands)