Finance DivisionAugust 8, 2008

Father Sorin’s Bold Vision for Notre Dame

To Be A Source for Good in the World

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We Have a Bold Vision for Notre Dame:

To Be A Source for Good in the World

To be a preeminent research university with a distinctive Catholic character and an unsurpassed commitment to undergraduate education

1. Offer an unsurpassed undergraduate education

2. Become a preeminent research university

3. Ensure that the University’s Catholic character informs all endeavors

4. Create a sustainable culture of continuous improvement, innovation and overall service excellence to support the University’s mission

5. Communicate strategically to internal and external constituents

5 Major Goals

Will Help Us Achieve This Vision

1. Integrity

2. Leadership in Excellence

3. Leadership in Mission

4. Teamwork

5. Accountability

5 University Values

Will Guide How We Behave

University Goals & Values

Strategic Academic Planning Committee (SAPC)

Round 1 - $5M Recurring & $25M in One Time Funding Began October 2007 72 proposals submitted Evaluated based on:

Fit to mission Potential to enhance preeminence of University Ability to become self-sustaining Multi-disciplinary Capability of the team

5 proposals chosen for funding Fiscal 2009 Budget includes Round 2 Funding of $5M & $25M

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Advanced Diagnostics and Therapeutics

Paul Bohn leads team of 22 Electrical & Chemical Engineering Chemistry and Biochemistry Biological Sciences Computer Science

Application of nanotechnology to micro-sensing Study biological and chemical phenomena at atomic,

molecular, and cellular level Medical Applications

Drug delivery targeted at diseased cells, not healthy cellsDevices that will monitor effectiveness of treatments and adapt treatment if neededSmart devices that monitor environmental conditions (water quality in developing countries)

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Notre Dame Institute for Advanced Study

Mark Roche and Fr. Bob Sullivan Create a “think tank” program for cross disciplinary research

Up to 20 scholars and 5 graduate students Spend from 2 weeks to a full academic year in residence at ND

Particular focus on topics that emphasize our distinctly Catholic identity and mission

Engineers working on the environment teamed with social scientists Sociologist and theologian exploring the attitudes of youth toward religion

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Genomics, Disease Ecology and Global Health

Frank Collins and Jeff Schorey lead team of 22 researchers Biological Sciences Chemistry and Biochemistry Computer Science Indiana School of Medicine

Applications in genomics and bioinformatics Reduction in incidence of diseases (malaria and filariasis) Developing pesticides and disease treatments w/ reduced human side effects

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Notre Dame Integrated Imaging Facility

Infrastructure project to organize all imaging devices Includes instrumentation that allows researchers to visualize

chemical and biological processes To view same experiment at a number of size scales

Atomic Molecular Cellular

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The ND Nanoelectronics Research Initiative

Team of 38 led by Wolfgang Porod from: Colleges of Engineering and Science Reilly Center for Science Technology and Values Gigot Center for Entrepreneurial Studies Notre Dame’s Center for Nano Science and Technology (NDnano)

Discover and develop electronic replacement for the current semi-conductor

technology - Midwest Institute for Nanoelectronics Discovery (MIND)

Application of nano-scale science to energy generation solutions,

particularly those related to solar energy

Utilizing clean room capability of the new Stinson-Remick building to

investigate general biological and materials issues

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MIND Project

March 2008 announced the establishment of the Midwest Institute Academy for Nanoelectronics Discovery (MIND)

Notre Dame leads research consortium including: Purdue University, University of Illinois, Penn State, University of Michigan, Argonne National Laboratory, the National Institute of Standards and Technology, and the National Magnetic High Field Laboratory

MIND’s mission is to explore and develop advanced devices, circuits and nanosystems with performance capabilities beyond current devices (computers, cell phones, music devices, etc.)

Potentially the biggest impact to the local economy since the Studebaker Automotive Plant was built in South Bend

NEON Project

NEON (National Ecological Observatory Network)

ND’s UNDERC (Environment Research Center) - 8,000 Acres in Land O’Lakes

Wisconsin chosen as a NEON Site

Site provides research platform for discovering and understanding impacts of:

Climate change

Land-use change

Invasive species on ecology

Location is ideal for study as environment has little or no degradation from

humans, thus providing a baseline for comparisons

Observatory is expected to gather ecological data for the next 30 years

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New Leadership in the Academy

Robert J. Bernhard – Vice President for Research Previously associate vice president for research and professor of mechanical engineering at Purdue

University

Peter Kilpatrick – Dean of Engineering Previously chair of department of chemical and biomolecular engineering at North Carolina State

Gregory P. Crawford – Dean of Science Previously dean of engineering at Brown University

John T. McGreevy – Dean of Arts & Letters Previously department chair and professor of history at Notre Dame

Gregory E. Sterling – Dean of the Graduate School Previously executive associate dean of the college of Arts & Letters at Notre Dame

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Notre Dame Finance Division

As stewards, we will manage the University’s financial assets with integrity, innovation, accountability and leadership. These are our core values.

We will provide financial services and establish policies that further the mission of the University in perpetuity: producing leaders in the Catholic tradition. This is our core purpose.

We will become the standard of excellence by which other institutions judge their financial operations: propelling Notre Dame to success in its Quest for Leadership. This is our aspiration.

The foregoing Vision Statement describes the Finance Division’s approach to providing Services to the

students, faculty and staff of the University through our four main areas: the Controller’s Group, the

Office of Student Financial Services, the Office of Budget & Planning, and Treasury Services.

ND Finance: Today’s stewards for Tomorrow’s leaders

Goal 4: Culture of Continuous Improvement

Constituent Service

Operating Processes

Resource Stewardship

Employee Engagement

CORE

Recruit, develop, recognize, and reward talented administrators and staff at all levels

Anticipate, meet, and exceed the needs of users and constituents of support functions

Grow, protect and efficiently utilize the University’s resources and assets

Identify, evaluate, and improve the efficiency and effectiveness of our major administrative activities

Create a sustainable culture of continuous improvement and overall service excellence to support the university’s mission

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ND Finance – History of Setting Goals

Why Change?

“Even if you’re on the right track, you’ll get run over if you just sit there.”

Will Rogers

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Finance Division Timeline (1996 – 2000)

1996

Budget Office Created

2000

Met Full Financial Aid

Need of Students

1st Annual Report

Budget Committees Formed

Dedicated Tax Area Established

Cash Management Established

Creation of ND Undergraduate Loan/Citi-Bank

Finance Division Established

Office of Student Financial Services

Formed

Established Working Capital

Line of Credit

Pro-card & Direct Deposit Introduced

GLIQ Implementation

PwCAppointed

Enhanced Budget YTD Reporting

Began Financial Modeling of Centers

& Institutes

NegotiatedGraduate Loan

“NDL”

Redesigned Budget Book

Business Manager Meetings Organized

Started Tax Strategy Sessions

Implemented 1st Source Sweep

Accounts

Developed Detailed Projections and Began

Cash Forecasting

2000

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Finance Division Timeline (2001-2005)

2001 2005

University Budget

Reduction

Cashier’s Office Outsourced to

NDFCU

Budget Incentive Plan Implemented

Vice President of Finance and Chief Investment Officer

Positions Separated

Established Dedicated Capital Planning Area

Banner FinanceGo-Live

Banner StudentGo-Live

Integration of “Off-Budget” Items into

Budget

Endowment Spending Overhead Rate Implemented

50% Indirect Cost Rate Approved

AMS Payment Plan Partnership

Construction/Debt/ Derivative Policy

Redesigned Collection Process Including Student

Letters & Contracted Financial Recoveries

Peer Review

Created Preferential Packages for

Incoming Freshmen

Offered Aid to International students

Negotiated International Loan

NDIL

Inaugurated Acct. Fellows

Program

Created “BPAS” Bus. Process

Advisory ServicesEntered into First Swap Agreement

Formed Office of Treasury Services

Bond Issue Incorporated into

MBA Class

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Finance Division Timeline (2006-2009)

2006 2009

Sale of WNDU

Banner HR/PR Go Live

Integration of Procurement

Services

Redesigned Budget Process (Salary Planner)

Implemented CP Program

OSFS Reorganized

Institutional Compliance Committee Established

All Funds Report Direct Deposit of Student Refunds

Implemented Provost’s Strategic Financial Aid

Strategy

Lunch & Learn Kickoff

Enhanced Annual Report

Disclosures

Responded to Baucus-

Grassley Letter

Chair Portal

SAPC I & II

GLEZ

CRT/Donor Advised

Alumni Club Website

Division Committees

Remote Deposit Capture

PARTy Group (Planning, Analysis & Reporting)

Expand CP Program & Line

BWG Subgroups

IP@ND Corporate Structure

University Scorecard

Student Bills Available on SS Banner

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Fiscal 2008 - Goal Results

As of: 8/5/2008

1. Enhance Management Information/Decision Making Support 2. Compliance - Protect the University's Reputation

Target Actual Status Target Actual StatusController's Office 15 14 93% Controller's Office 13 11 85%Budget Office 9 8 89% Budget Office 0 0 n/aTreasury Services 1 0 0% Treasury Services 7 4 57%Student Fin. Service 5 5 100% Student Fin. Service 0 0 n/aFinance Division 30 27 90% Finance Division 20 15 75%

3. Create Value - To Support Undergraduate & Research Goals 4. Staff Training & Development

Target Actual Status Target Actual StatusController's Office 13 12 92% Controller's Office 8 8 100%Budget Office 9 9 100% Budget Office 8 8 100%Treasury Services 19 15 79% Treasury Services 8 8 100%Student Fin. Service 7 6 86% Student Fin. Service 8 8 99%Finance Division 49 43 88% Finance Division 32 32 100%

5. Live the Catholic Mission

Target Actual Status Finance Division - Total All GoalsFinance Division 16 16 100%

Target Actual StatusController's Office 49 45 92%

Complete (0% to 49%) Budget Office 26 25 96%Complete (50% to 74%) Treasury Services 35 27 77%Complete (75% to 100%) Student Fin. Service 20 19 95%

Finance Division 147 133 90%

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Finance Division

Today’s Stewards For Tomorrow’s Leaders

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Catholic Culture & Dedicated Staff

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Finance Division Goals – Code Key

University Goals: U = Undergraduate Program Goal R = Research Goal CC = Catholic Character Goal CI = Continuous Improvement Goal CO = Communication Goal

Finance Division Div = Finance Division CO = Controller’s Office BO = Budget Office TS = Treasury Services SFS = Office of Student Financial Services

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Finance Division Goals for Fiscal 2008

MANAGEMENT INFORMATION/DECISION MAKING SUPPORT   Div CO BO TS SFS

Evaluate Administrative Research Support Model R 4 4 0 0 0

Develop & Implement Long-term Research Funding Model R 4 1 1 1 1

Core Service Projects – Finalize Time & Effort Reporting Solution R 4 4 0 0 0

Core Service Projects – Info Access (End User Info & Reports) CI 4 2 1 1 0

Revenue and Expense by College CI 4 0 4 0 0

Financial Aid: Implement Provost Strategic Financial Aid Policies U 4 0 0 0 4

Continue to Standardize Foreign Program Accounting CI 4 4 0 0 0

Banner 8.1 Planning and Implementation CI 4 2 1 1 0

Huron Strategic Sourcing Review and Implementation (Procurement) CI 4 4 0 0 0

Comprehensive Campus Training Program (Access, Systems, Rpt.) CI 4 4 0 0 0

Implement IDOC – Electronic Parent Data Collection for Financial Aid U/CI 4 0 0 0 4

University Account Service (UAS) Perkins/Dormer Loan Collection CI 4 0 0 0 4

Enhance Fall Campus Budget Info. Document (Greenbook) CO 4 0 4 0 0

Budget Working Group Template – Pre-populate for All Major Units CI 4 2 2 0 0

continued

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Finance Division Goals for Fiscal 2008

Develop Standards and Definitions of “All Funds”CI/CO 4 2 2 0 0

Blended Benefit Rate – Phase I (Review 2 years actual & allowable) CI 4 2 2 0 0

Support Implementation of Faculty Appointment Process CI 4 4 0 0 0

Implement Phase I of Updated Cash Mgt. Database Modeling System CI 4 0 0 4 0

Technology Committee Review/Approach to Finance Unit Websites CO 4 1 1 1 1

Update Capital Planning Model – Enhance to Target Interim Funding CI 4 0 0 4 0

      80 36 18 12 14

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Finance Division Goals for Fiscal 2008

RISK & COMPLIANCE - PROTECT UNIVERSITY REPUTATION   Div CO BO TS SFS

Finish Assessing Key Units & Identify High-Risk Remediation Strategies CI 4 4 0 0 0

Disaster Recovery & Business Continuity – Documentation/TestingCI/CO 4 2 0 2 0

Develop Policies & Procedure For Significant Accounting ActivitiesCI/CO 4 4 0 0 0

New Form 990 Implementation CI 4 4 0 0 0

FAS 117A and Other Financial Reporting Standards (FAS 157) CI 4 4 0 0 0

Formalize Debt Compliance Program CI 4 0 0 4 0

      24 18 n/a 6 n/a

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Finance Division Goals for Fiscal 2008

CREATE VALUE - SUPPORT UNDERGRADUATE/RESEARCH GOALS   Div CO BO TS SFS

Develop Budget with Final Year of SAPC Funding ($5M/$25M) U/R 4 0 4 0 0

Financial Asset Analysis U/R 4 0 2 2 0

Deferred Maintenance Assessment and Long Term Funding Strategy U/R 4 0 0 4 0

IP at ND – Organization Structure, Funding, Operational Set-up U/R 4 2 0 2 0

Automate Federal & Private Student Loan Processing CI 4 0 0 0 4

OSFS Website Redesign – Funding Required CO 4 0 0 0 4

Implement Automated Call Distribution System in OSFS – Funding Req. CI/CO 4 0 0 0 4

Alumni Club Website Enhancements CI/CO 4 0 0 0 4

Common Application – Assess and Staff Increased Processing U 4 0 0 0 4

Develop OSFS Graduate, Law & MBA Support Model CI/CO 4 0 0 0 4

Structure/Roll-Out Summer Housing Billing Program CI 4 0 4 0 0

Support Implementation of Wholehealth Initiative CI 4 2 0 2 0

Evaluate and Implement Enhanced Cash Management Strategies CI 4 2 0 2 0

52 6 12 10 24

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Finance Division Goals for Fiscal 2008

STAFF TRAINING & DEVELOPMENT   Div CO BO TS SFS

100% Performance Reviews CI 4 1 1 1 1

Division Lunch & Learn Opportunities – All Staff at Least One CI 4 1 1 1 1

All Division FT Staff – One Relevant Training Opportunity CI 4 1 1 1 1

Mgt. Retreats - Controller, Budget, OSFS, Treasury, (One per yr.) CI 4 1 1 1 1

Maintain Professional Certifications - CPA's, etc. CI 3 1 1 1 0

Staff Presenting at Conferences, External Publications, Benchmarking… CI/CO 4 1 1 1 1

      23 6 6 6 5

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Finance Division Goals for Fiscal 2008

LIVE CATHOLIC MISSION   Div

Spiritual Formation - Division Mass & SMT Masses CC 4

Foster Team/Family Culture CC 4

Community Service Activities CC 4

Non-Exempt Lunches CC 4

Exempt Activity CC 4

Recognition Activities CC 4

Practice Principles of Catholic Solidarity in Daily Operations CC n/a

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Fiscal 2009 - Goal Results

Fiscal 2009 - Goal ScorecardAs of: 8/4/2008

1. Enhance Management Information/Decision Making Support 2. Compliance - Protect the University's Reputation

Target Actual Status Target Actual StatusController's Office 36 0 0% Controller's Office 18 0 0%Budget Office 18 0 0% Budget Office 0 0 n/aTreasury Services 10 0 0% Treasury Services 6 0 0%Student Fin. Service 16 0 0% Student Fin. Service 0 0 n/aFinance Division 80 0 0% Finance Division 24 0 0%

3. Create Value - To Support Undergraduate & Research Goals 4. Staff Training & Development

Target Actual Status Target Actual StatusController's Office 6 0 0% Controller's Office 6 0 0%Budget Office 12 0 0% Budget Office 6 0 0%Treasury Services 10 0 0% Treasury Services 6 0 0%Student Fin. Service 24 0 0% Student Fin. Service 5 0 0%Finance Division 52 0 0% Finance Division 23 0 0%

5. Live the Catholic Mission

Target Actual Status Finance Division - Total All GoalsFinance Division 24 0 0%

Target Actual StatusController's Office 66 0 0%

Complete (0% to 49%) Budget Office 36 0 0%Complete (50% to 74%) Treasury Services 32 0 0%Complete (75% to 100%) Student Fin. Service 45 0 0%

Finance Division 203 0 0%

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Father John’s Audacious Goal

To be one of the best universities in the world while remaining true to the Catholic tradition.

If we succeed we will:

•Develop a new model for higher education in the

21st century based in a moral and spiritual

framework

•Influence both secular and religious institutions

•Impact the Church and the world

Father Sorin’s Bold Vision for Notre Dame

To Be A Source for Good in the World

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