FY12 Priority Initiatives
SUMAR has identified the following key initiatives for FY12 and is committed to supporting departments' leadership of each effort:
Server Consolidation
Princeton’s new High-Performance Computing Research Center is designed to accommodate the University’s research computing as well as all departmental servers. By locating servers at the new data center, departments regain floor space on campus for academic and other uses. By consolidating servers on to the central virtual platform, the service can be managed more efficiently while freeing departmental computing staff to focus their efforts on other important IT support and services. Because of special power and cooling systems, the cost of operating servers at the new data center is lower than the cost of operating them on the main campus. Approximately 70% of known servers have been virtualized and the virtualization work completed through FY11 resulted in an estimated $450,000 of recurring savings ($250,000 in hardware and $200,000 in electricity).
Departments with eligible servers received a memo from the Provost in the spring of 2012 detailing the strategy for virtualizing and consolidating all remaining departmental servers by summer 2013.
New Financial Tools
Continuing a comprehensive multi-year effort to provide departments with better tools to process and track budgets and expenses, rethink cash management practices, and implement an electronic request to pay program is expected to yield greater efficiency and cost saving results. A particular focus this year will be on the launch of an effort to redesign the University's chart of accounts which provides the infrastructure for all institutional budgeting and transactions, and finalization of a new travel policy. These tools will benefit departments through increased efficiency of day-to-day business operations and improved compliance with approved business practices. Additionally, the Office of Finance and Treasury is working with the Office of the Provost to develop a financial training curriculum. Sessions offered in the spring of 2012 focus on two key areas, "Budgeting Fundamentals" and "Budgeting at Princeton."
Absence Management
Implementing a Centralized Accrued Leave Management (CALM) system will capture efficiencies by creating a simple, standardized process for tracking and calculating available time for vacation, sick, and personal time. CALM will ensure the consistent application of absence policies and procedures, and will enhance the accuracy in assessing University liability for banked vacation days to be paid upon employee departure, which may result in savings from reduced vacation payouts.
Training and support materials will be available in June 2012, and revised policies for tracking time will be implemented by July 1, 2012. The new system will go live on July 2, 2012, with most departments adopting CALM throughout July 2012.
Controlling Health Care Costs
In FY12, the University will continue to search for opportunities to control health care costs while minimizing the impact on the campus community. Thus far, proposed strategies include more effective communication to employees about differentials in health care costs, enhanced medical condition management, screenings and treatment programs, an enhanced network of medical providers, and incentives for employees to stay healthy and choose more cost-effective providers. Annual net savings from health care benefits changes are estimated to be between $500,000 and $700,000, with the potential of $1 million to $1.2 million in total recurring savings when changes to the life insurance and retiree health care programs are added. A first step in implementing these strategies will be changes in the fall open enrollment. This effort will not increase employee premiums.
Given the significance of various regulatory changes and the continued increase of Princeton’s health care cost trend, the University will continue to carefully review and assess our community health status and delivered health care programs.
Home Ownership Programs
The University performed a comprehensive review of its home ownership programs to ensure that they meet recruitment and retention objectives for faculty and key staff while supporting the University’s ongoing cost-savings goals. For example, changing the construction approach to the single-family home program will save the current capital plan at least $3 million. Additionally, proposed revisions to program eligibility for the standard mortgage and Tenancy-In-Common programs (with a current mortgage portfolio value of approximately $330 million) are projected to realize savings in excess of 10% over several decades. As described in a letter sent in early May 2012 to all currently eligible employees, programmatic changes will take effect on July 1, 2012.