FACT SHEET: RUNNING LIKE A BUSINESS: FISCAL MANAGEMENT AT UO The University of Oregon is committed to responsible management of its resources, efficiencies in operation and accountability to its constituencies. The fiscal challenge: * UO lost $52.4 million in state general fund support since Ballot Measure 5 passed in 1990. * State share of UO revenues dropped from $1 in every $3 to $1 of every $7. * UO must raise $6 of every $7 from -Student tuition -Faculty research and teaching grants -Alumni gifts -Private foundations and federal agencies -Entrepreneurial initiatives by faculty and staff Meeting the challenge: UO transformed operations to achieve four goals: * Lean and efficient organization * Customer-oriented focus * Highly productive workforce * Entrepreneurial spirit RECOGNITION and AWARDS * September 1997 The Fiske Guide to Colleges, a popular college guide for prospective students that compares cost and quality factors at U.S. universities, names University of Oregon one of "Best Buys" in list of 43 good value colleges and universities--one of only three on the West Coast to make the list. * September 1997 The National Recycling Coalition honors UO recycling program as one of the "Best of the Best," as 1977 Outstanding School Recycling Program, saving more than 1,100 tons of waste and $142,000 annually. * August 1997 The University of Oregon's "creative and entrepreneurial response to the state budget reductions" won special praise from team of accreditors when the Northwest Association of Schools and Colleges (NASC) awarded full accreditation after 1997 onsite review. * March 1997 UO ranked among top 15 and one of six top rising stars in U.S. research universities in faculty productivity and quality, reported in hard data analysis by Hugh Davis Graham and Nancy Diamond in their book, "The Rise of American Research Universities: Elites and Challengers in the Postwar Era." * December 1996 The UO computing network--one of the least expensive in the nation--was named best among U.S. universities. CAUSE, the association for managing and using information resources in higher education, who presented the UO with its Award for Excellence in Campus Networking, also noted that by coordinating available resources and talent, UO spent a fraction of the money spent by others. * September 1994 An independent management consulting firm declared UO "lean administratively." Peat Marwick volunteered the praise in confirming UO's $7.7 million administrative cost reductions in wake of Measure 5. The firm conducted a comprehensive cost/structure assessment at the UO. FINANCIAL ACCOUNTABILITY AT UO * To achieve greater financial efficiencies and accountability, the UO enhanced the tools in Financial Information Systems (FIS), the computer financial control system that Oregon University System (OUS) requires all institutions to use. * UO administration also uses four levels of budget control 1. individual departments and units 2. individual school or college central administration 3. vice presidents 4. university's central administration Offices of Resource Management and Business Affairs Facilities Services Research Services and Administration (grants and contracts). DAILY TRACKING THE BOTTOM LINE Financial Controls at University of Oregon Goals Ways we achieve goals 1. Maintain sufficient cash to make checks * Daily reports showing cash balances at good. 2. Stay in a positive financial position detailed and summary levels. * Daily reports so that we always own more than we owe. monitoring accurate recording and fund balances for each of the UO's funds. 3. Spend and earn in accordance with the * Approval of all expenditures by the mission, policies and regulations of the appropriate administrator at each budget university and its short and long-term control level. financial plans. 4. Record all financial transactions in * Regular reviews and audits by unit managers, accordance with proper accounting and financial as well as UO, OUS and external auditors. * practices, providing for accurate, timely and Monthly summary and detailed reports and online reliable calculation of university's financial query available to unit administrators, position. 5. Keep sufficient and reliable managers and executives from both UO's Banner financial data to inform decision-making and Financial Information System and special UO planning process query file, "Data Warehouse." 6. Maintain sufficient and reliable financial * A quality assurance team of accountants and data to project future financial positions to financial managers (QUACS) monitoring avoid or anticipate financial problems and to activities at unit and central levels to identify and take advantage of opportunities. improve UO's efficiency and effectiveness in financial management. 7. Track status and value of tangible assets we * Regular, periodic inspection and accounting own such as buildings, equipment and supply of tangible assets through methods including inventories, and investments. physical inventory and investment reports. THE BOTTOM LINE The University of Oregon is committed to responsible management of its resources, efficiencies in operation and accountability to its constituencies. -30- #S-4034/Special February 1998