Meeting of the Board of Visitors Audit, Compliance and Risk - PowerPoint PPT Presentation

Meeting of the Board of Visitors Audit, Compliance and Risk Committee June 12, 2015

A CADEMIC D IVISION E NTERPRISE R ISK M ANAGEMENT (ERM) G A RY N I M A X A S S I S TA N T V I C E P R E S I D E N T F O R C O M P L I A N C E A N D E N T E R P R I S E R I S K M A N A G E M E N T

Presentation Schedule of ERM Mitigation Strategies Detailed Risk Review with Board of Visitors Management of human capital 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 Risk Category Risk Description The University’s faculty compensation must be competitive with top AAU peers Provost Risk Owner Mitigation Strategies Currently in Place • 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 • Monitor University’s position in AAU rankings. June 2015 Provost (on schedule) Key Performance Indicators Results • UVa’s position in AAU rankings with respect to faculty • As of 6/30/11: #31 • As of 6/30/12: #29 salaries • 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 Risk Category The University must effectively manage the generational turnover in faculty Risk Description Provost Risk Owner Mitigation Strategies Currently in Place • 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. Responsible Due Date Action Plans Person • Annually, the Provost will work with deans and faculty to develop hiring plans July 2015 Provost that are coordinated across schools as part of the annual budget process. • Assess recruiting and retention performance annually. Sept. 2015 Provost June 2015 • Include in annual Academic Division budget the estimated cost of faculty hires Provost and (on schedule) COO including start-up packages. Key Performance Indicators Results • Achieving target number of faculty hires included in school plans • TBD • Yield on offers made • TBD • Success rate on retention offers • TBD • Related costs in annual budget • $10.5 million for FY16 5

Effective Succession Planning Management of Human Capital Risk Category The University must have effective succession planning Risk Description Provost (for faculty); Chief Operating Officer (for staff) Risk Owner Mitigation Strategies Currently in Place 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 • Develop training program for faculty department chairs to focus on Sept. 2015 Vice Provost for Faculty Affairs development of management skills. • Launch course development institute through Teaching Resource Sept. 2015 Vice Provost for Academic Affairs Center to focus on development of faculty teaching skills. June 2015 • Expand high-potential staff succession development program with Vice President for Human (on schedule) Resources new cohort of 25 staff. June 2015 Vice President for Human • Complete robust career paths linked to each staff job family. (on schedule) Resources Key Performance Indicators Results • Faculty and staff retention rates TBD • Percentage of open positions filled by internal candidates TBD 6

Effectively Pursue Organizational Excellence Capitalize on organizational excellence – resource alignment and optimization. Risk Category The University must have efficient services, processes, and procedures to effectively use and Risk Description steward its resources in support of mission activities. Chief Operating Officer Risk Owner Mitigation Strategies Currently in Place • 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 • Development of web-based portal and dashboard to support efficient life Oct. 2015 Office of Sponsored Programs cycles of research awards from pre-proposal to program completion. • Strategic sourcing of procurement for high quality customer service and to Ongoing Director of Procurement achieve volume discounts. • Create shared center of excellence for University and Foundation gift Jan. 2016 Treasurer processing. June 2015 • Finalize design and begin implementation of future state HR model. Vice President for (on schedule) Human Resources June 2016 • Complete consolidation of email systems and continue consolidation of IT Chief Information Officer servers and data centers. • Implement fully automated travel and expense management system. Oct. 2015 Director of Procurement Sept. 2015 • Develop detail plan for addressing JLARC recommendations on span of VP for HR and VP for Mgmt and Budget control and procurement. Key Performance Indicators Results • 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 Risk Category UVa must have sufficient resources to pursue strategic programs and maintain core programs. Risk Description Chief Operating Officer Risk Owner Mitigation Strategies Currently in Place • Financial performance monitored against Multi-Year Financial Plan. • Monitoring implementation of Cornerstone Plan. Due Date Action Plans Responsible Person • Annually update Multi-Year Financial Plan. July 2015 AVP for Finance • Report progress on Cornerstone Plan to BOV. June 2015 President (on schedule) • Finalize plan for Bicentennial Campaign and obtain BOV approval. Spring 2016 Senior VP for Development • Complete plan for University research enterprise with focus on Spring 2016 Vice President for Research investment and growth. Key Performance Indicators Results • Annual performance against Multi-Year Financial Plan • TBD • Annual philanthropy results Bicentennial Campaign • TBD • Growth in research enterprise • TBD • Endowment performance reports • TBD 8

Comply with Federal, State, or Other Established Regulatory Requirements Risk Category Legal compliance risks (state/federal/other) UVa must comply with federal, state, university, or other established regulatory requirements Risk Description Chief Operating Officer and General Counsel Risk Owner Mitigation Strategies Currently in Place • 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 • Compliance reports reviewed with Audit Committee. Ongoing AVP for Compliance/ERM • Enhance University compliance with Clery Act and Title IX. Fall 2015 President, EVP-COO, General Counsel, and o Hire full-time Clery and Title IX Coordinators Vice President for Student o Appoint and train campus security authorities across Grounds Affairs o Complete final policy on “Sexual Misconduct” and implement supporting processes and procedures. Key Performance Indicators Results • Number of significant compliance exceptions in FY15-16 • TBD 9