Transcript OSU FY 11 All Funds Budget

The Office of Financial Services
Quarterly All Hands Meeting
February 15, 2013
Agenda
• Staff Updates (Mike)
• FY 2013 Priorities and Year to Date Accomplishments (Mike)
• Office of Risk Management (Doug & Richard)
- URM Process
• North Residential District (Al/Regina/JC)
-
Project Overview
-
Financial Overview
• Quarterly Award Program (Mike/Kathy/Von)
• Updates on Other Key Initiatives (Mike/John/Von/Jeannette/Kathy/Ginny)
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Staff Updates
Staff Updates
New Team Members and Promotions (since October 2012)
JC (John) Speiser – Senior Debt Analyst
Doug Huffner – Director University Risk Management
Rayne Bateson - Promoted to Third Party and Scholarship Coordinator
Carinna Butters - Collections Coordinator
Debra Lai - Information Associate Processing/Internal Payments (formerly
held a student position)
Richelle Alamo - Business Analyst
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OFS FY 13 Priorities and Year to Date Accomplishments
Review - OFS FY 2013 Priorities
Strategic:
1. Support Tech Commercialization initiative and assist in OSU fund management.
2. Continue to identify, troubleshoot, and problem-solve risk management issues, pinpointing
exposures that require action and solutions.
3. Continue to promote business relationships and opportunities that bring about improved services
and better returns to the University’s bottom line.
4. Opportunistic growth and acquisition opportunity support.
5. Value and foster relationships with other University departments.
Financial:
.
1.
Maintain lowest-possible cost of capital without incurring undue interest rate or other risk.
2.
Continually review investment portfolio characteristics to prudently optimize yield and costeffectiveness.
3.
Enhance cash flow forecasting abilities (2 and 3 year).
4.
Focus on OFS FY2013 budget by systematically reviewing resource allocations to ensure resources
are being expended in the most cost-effective manner and consider adjustments in support of the
University's strategic goals.
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Review - OFS FY 2013 Priorities
continued
Operational:
1. Focus on Bank Reconciliation process and implementation of new software and complete roll off of
FoxPro applications throughout OFS.
2. Streamline and modernize business processes to move towards more efficient and cost effective
processes.
3. Identify and implement tools and methodologies to improve accuracy, integrity and consistency of
financial data.
4. Strengthen and improve the quality of financial reporting to transform current reporting into useful
management tools.
Organizational:
1.
Complete moves to Stadium and Gateway space and build-out of OFS team.
2.
Continue to develop a well-trained, high-performing, diverse workforce that effectively meets
changing mission requirements and program priorities.
3.
Support the talent development of our employees through professional development, career
development, and improved performance management.
4.
Continued focus on making Financial Services a ‘destination of choice’ at OSU for our internal and
external partners.
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FY 2013 YTD Accomplishments
Accomplishment
Priority Category
Successful Parking Transaction Closing
Strategic
Completed 20-year Wind Power Purchase Agreement
Strategic
Negotiated 2-year Power Supply Agreement with AEP Energy
Strategic
Secured lower-rate financing for OSU Physicians and Campus Partners
Strategic/Financial
Developed new 3-year University cash forecast tool
Strategic/Financial/
Operational
Developed University Risk Assessment tool/model
Strategic/Financial/
Operational
Selected and funded new ultra short term investment solutions
Financial
Completed various financings, including refinancing higher rate bonds,
parking related bond defeasance, QECB’s, and new subordinated student
housing bonds
Financial
Transferred OSU payroll program to Huntington bank.
Financial/Operational
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FY 2013 YTD Accomplishments
Accomplishment
Priority Category
Outsourced check printing for donor gift trust and annuity payments
Financial/Operational
Implementation of CASHNet e-payment solution and Travelex international
student payment option
Operational
Conversion to online processes: financial responsibility statement and
electronic 1098T opt-in
Operational
Compliance: process improvements which facilitate timely return of
uncashed refunds to the DOE
Operational
Process improvements which facilitate the timely deposit of all funds
(including scholarship checks) in accordance with Ohio Revised Code
Operational
New investment custodian Northern Trust
Operational
Successful annual PCI credit card processing compliance audit
Operational
Implementation of new human subject research payment card program for
the Office of Sponsored Programs
Operational
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FY 2013 YTD Accomplishments
Accomplishment
Priority Category
New self-funded worker’s compensation banking structure
Operational
Number truncation for remote deposit capture and lockbox services
Operational
Successful transition to newly renovated locations
Organizational
Strategic New Hires
Organizational
Significant investment in employee training, certifications, business
memberships
Organizational
Launch of OFS and B&F Employee recognition programs
Organizational
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University Risk Management
University Risk Management (URM)
Compliance andOffice
Risk Assessment
of Risk Management
Overview
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University Risk Management (URM)
Risk
Office
Categories
of Risk and
Management
Examples
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North Residential District
(Sophomore Housing)
North Residential District
Overview
• Sophomore students required to live on campus by the 2015-16 academic year
• Aligns with the mission to foster greater academic success, connection and
engagement with the university community, and appreciation for diversity
• Project will increase the number of beds in the district by 3,200 and will be
delivered in two phases
• Once complete the total number of beds in this district will be 6,400
• Project includes new dining, recreation, and other support facilities
• Significant investment in supporting infrastructure
• Guided by the North Residential District Plan, Second Year Transformational
Experience Program (STEP), and One University Framework Plan
• Total project construction cost is approximately $396M
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North Residential District
Overview
http://www.youtube.com/watch?v=cRj4HOY_h0M
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North Residential District
Financing Principles
Implement a strategic new debt security structure to
finance student housing projects
• Utilize a separate, limited revenue security structure to finance self-supporting
student housing project
• Maintain University control and support an integrated living and learning housing
model
• Avoid significant added expense and loss of control involved with private, third
party arrangements
• Maintain flexibility to manage pricing at University level
• Leverage University funds ($46M) to minimize impact on students with a focus on
maintaining housing accessibility and affordability
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Summary of Financing
Series 2013 Special Purpose General Receipts Bonds
Term Sheet
Issuer:
The Ohio State University
Security and Pledge of
Revenues:
Ratings:
Pledge of gross revenues from the University’s student housing, dining and recreational
sports systems. These revenues will remain part of General Receipts, but the gross pledge
of these revenues will be subordinate to the General Receipts Bonds.
Moody’s “Aa2” and S&P “AA-”
Size:
$350,000,000
Average Yield
3.02%
Use of Proceeds:
Construction and development of several projects as part of the University’s North
Residential District Transformation (NRDT), including capitalized interest and cost of
issuance
Interest capitalized through December 1, 2014
Capitalized Interest:
Principal Maturities:
Rate Covenant:
Amortizing structure from years 10 through 30, principal maturing annually June 1, 2023
to June 1, 2043
1.1 x
Optional Redemption:
10-year par call
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Quarterly Award Program
Program Overview
2013 will mark the beginning of the
Quarterly Office of Financial Services Employee Recognition Awards.
The program developed specific to OFS that recognizes OFS accomplishments during the
previous quarter.
The goals of the program are to recognize, honor, and congratulate OFS staff members
for excellence in their work; to build staff morale; to create and sustain a workplace
culture committed to achievement and pride and to provide additional opportunity to
communicate current OFS initiatives and achievements across the organization.
Once Fully implemented the entire program will consist of both immediate recognition tools
and quarterly awards.
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Coming Soon – Immediate Recognition Program
Immediate Recognition provides opportunity for anyone to say “thank you" or "good
job" or "congratulations" to our coworkers.
WOW Boards – The Office of the University Bursar already utilizes WOW Boards as an
opportunity for any employee to recognize another for a job well done or to just say
thank you.
Send KUDOS – B&F is collaborating with the OCIO to web based electronic staff
recognition tool called KUDOS.
MANAGERS Recognition: As part of the B&F staff awards, managers/supervisors tokens
to be given to employees to recognize a job well done and thank them for their efforts.
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Quarterly Award Criteria
Nominees for Quarterly Awards have shown initiative to go above and beyond what
would be considered part of the employee’s or team’s normal job duties in one or
more of the following areas:
• Innovation/Initiative/Simplification – Project or process improvement that aligns
with our mission and/or streamlines our operations.
• Collaborating as one University – Outstanding commitment to teamwork by
thinking creatively, removing boundaries, and communicating effectively.
• Outstanding Customer Service – Excellent service that exceeds our customers’
(internal or external) expectations.
• Commitment to Excellence - Excellence in any endeavor that enhances the
workplace and creates a positive work environment and culture.
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This Quarter’s Award
• 8 Nominations were received:
- Dave Jones – Outstanding Customer Service
- Al Rodack – Outstanding Customer Service
- Brianna Knott – Commitment to Excellence
- Kathy Dillow – Commitment to Excellence
- Claudia Perez – Commitment to Excellence
- Tony Newland – Collaborating as One and
Outstanding Customer Service
- John Rumer – Commitment to Excellence
- Richard Adams – Collaborating as One University
• Nominations that meet the stated criteria will automatically be submitted for
consideration for the Business and Finance Monthly Award Program.
• Nominations for the next quarterly award can be made at any time by going to the OFS
website and clicking on the OFS Award tab.
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And the Winner IS
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Updates on Other Key Initiatives
Other Updates
•
Green Office Certification
•
Outreach Activities
• Faith Mission
• Firefighters 4 Kids
• Future
•
BRICK article ideas
•
Campus Campaign
•
Pelotonia
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