Regents expected to take action on efficiency review

IOWA CITY - Three months after unanimously agreeing to work with Deloitte Consulting on implementation of its suggestions for improving sourcing and procurement practices at Iowa's public universities, the Board of Regents has not formally approved a new contract with the firm.

But the board during a special meeting Friday is expected to 'authorize action regarding implementation of the sourcing and procurement” recommendations. That action will come after the board considers how to move ahead with another eight administrative-related suggestions from Deloitte for improving the efficiency of University of Iowa, Iowa State University and University of Northern Iowa operations.

The board also announced Wednesday that it will take action Friday on a stalled portion of the review related to academic efficiencies. The academic aspect of the efficiency review was intentionally slowed earlier this year following faculty concerns that it was progressing too quickly. The delay created scheduling conflicts for a consultant Deloitte hired to conduct the academic portion of the board's efficiency review, and it has been on hold ever since.

Meeting materials made public Wednesday do not provide details on how the board is planning to proceed on the various topics - including whether a new academic consultant has been chosen or whether a new sourcing and procurement contract with Deloitte is in place.

The Board of Regents, to date, has agreed to pay Deloitte $3.3 million for its work on the review, which the firm says could result in between $30 million and $80 million in savings.

Deloitte so far has billed the universities for $3.1 million of that total, not including $417,000 in expenses for things like travel, lodging and meals. The Board of Regents didn't initially require Deloitte to provide receipts for those expenses until The Gazette reported that fact.

The board subsequently amended its contract to require Deloitte to provide receipts for some expenses incurred after Aug. 11. For the more than two month period between Aug. 11 and Oct. 25 - after receipts were required - Deloitte expensed $48,314. That is significantly less than totals incurred for similar or shorter time periods before receipts were required, including the $99,716 expensed from March 29 to April 19 or the $120,557 expensed from April 20 to May 24.

Deloitte's work for the Board of Regents so far has produced a list of 17 potential efficiencies on at least one - if not all - of Iowa's three university campuses. The board previously has approved moving forward with four of those 17 suggestions, including improvement to sourcing and procurement practices and the creation of a common application portal for applicants interested in more than one of the state's universities.

The eight efficiency opportunities the board will consider Friday cover the areas of information technology, finance, human resources, and facilities.

Deloitte has estimated potential savings from those efficiencies - which include streamlining finance transactions, transforming the central information technology service delivery model, and reducing utilities and operational costs - in the tens of millions and said it could eliminate as many as 250 jobs across the three campuses.