Agenda
             Huron is pleased to have the opportunity to discuss potential opportunities associated with the Affordability & 
             Efficiency Task Force’s  recommendations relating to operational and asset reviews.
             Discussion Topics
              Review Affordability & Efficiency Task Force recommendations for:
                       Operational Reviews
                       Asset Reviews
              Overview of efficiency efforts
              Context
                       Operational reviews
                       Asset reviews
              Q&A
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       © 2015 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.            DRAFT - PRIVILEGED & CONFIDENTIAL
 Taskforce Recommendations
 Operational & Asset Reviews
               Operational Review
                TASK FORCE  RECOMMENDATION SUMMARY
             The task force recommends that institutions assess non-academic operations that might be run more efficiently 
             by a regional cooperative, private operator or other entity. 
                                    Basis for Recommendation:                                                                                                   Areas for Review:
             Rationale: Non-core operations have evolved over time to                                                              Dining
                represent an area of duplication that is costly to institutions                                                     Housing
                and, ultimately, students.                                                                                          Student Health Insurance
             Benefits: Private operators may provide more efficient                                                                Child Care
                and/or effective services while generating institutional cost                                                       IT Help Desk
                savings.
             Scope: Institutional focus with opportunities for regional or                                                  Dining services example: Bowling Green State University 
                statewide collaboration.                                                                                            Janitorial
                                                                                                                             outsourced its dining services to a private operator in 2008. 
                                                                                                                             From 2008 to 2015, student meal plans increased from less 
             Considerations: Personnel implications and proper                                                                     Landscaping
                                                                                                                             than 10,000 to more than 12,000 despite a 3.5% decline in 
                balancing of service levels, financial obligations and                                                              Facility Maintenance
                incentives.                                                                                                  undergraduate enrollment since 2008. In addition, there were 
                                                                                                                                    Real Estate Management
                                                                                                                             no dining plan rate increases in 3 of the last 6 years. 
                                                                                                                                    Parking
             The operational review should be conducted in tandem with cost diagnostic and organizational 
             structure reviews to identify opportunities to consolidate operations within a campus. 
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               Asset Review
                TASK FORCE RECOMMENDATION SUMMARY
             The task force recommends that institutions conduct an assessment of non-core assets to determine their 
             market value if sold, leased or otherwise repurposed.
                                    Basis for Recommendation:                                                                                                   Areas for Review:
             Rationale: Assets accumulated over time may not reflect                                                               Parking Facilities
                the institution’s needs or mission. Some assets may be                                                              Student Housing
                underutilized, while others could be sold or leased to                                                              Maintenance Facilities
                provide new resources to support the institution’s mission.                                                         Equipment
             Benefits: Reduction in maintenance, energy and other                                                                  IT Infrastructure
                costs, while simultaneously producing reinvestment funds                                                            Athletics Facilities
                through asset monetization.                                                                                  Parking example: The Ohio State University outsourced its 
                                                                                                                                    Lodging Facilities
             Scope: Institutional focus initially, with opportunities for                                                   parking operation in 2013, receiving a $483 million up-front 
                                                                                                                                    Conference and Event Space
                collaboration.                                                                                               payment for a 50-year concession with a private operator. 
                                                                                                                             The payment was invested in the university’s endowment, 
             Considerations: Need to maintain long-term approach                                                            which through fiscal 2016 has provided $83 million in 
                and be wary of short-term considerations. Careful                                                            distributions for student scholarships, faculty recruitment, 
                evaluation of best use for reinvestment funds.                                                               capital investments and campus transportation options. 
             For non-core assets that should be retained, institutions should evaluate whether public-private 
             partnerships would enhance value and/or provide additional financial support.
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       © 2015 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.            DRAFT - PRIVILEGED & CONFIDENTIAL
 Context for 
 Efficiency & Effectiveness Initiatives