University of Iowa faculty question Deloitte on cuts, ask for details

IOWA CITY - University of Iowa staff and faculty members on Thursday had plenty of pointed questions for consultants who last week suggested efficiency opportunities at Iowa's three public universities that could eliminate as many as 250 jobs.

During a public forum on the UI campus, one employee asked how Deloitte Consulting LLC came up with its estimates for staff reductions in connection with eight suggested efficiencies in the areas of finance, human resources, information technology and facilities.

Another person asked how much time and money already has been spent interviewing and involving university staff and faculty in the Board of Regents' efficiency review, which Deloitte was hired to conduct earlier this year.

'It's significant, and the regents are aware that it's a significant investment,” said Rick Ferraro, a director for Deloitte who is heading the consultant's work for the Board of Regents. 'The regents realize those hours are being paid for - that is salary being spent, and it's a reflection of priority.”

Ferraro said the Board of Regents has made the review a priority and is dedicating significant resources up front in hopes of identifying efficiencies that over time will more than cover the costs. He said the board recognizes that it's paying 'all these salaries for all these people,” and the question is, 'Are we overloading the organization or not?”

The UI public forum Thursday was the second of three taking place at each of Iowa's public universities around the eight efficiency opportunities presented last week. Deloitte brought its suggestions on how to improve operations in the areas of finance, human resources, information technology, and facilities to the Board of Regents last week in a 138-page report.

The board already has agreed to move forward with four opportunities suggested by Deloitte, including creating a common application portal for applicants interested in more than one state school and improving sourcing and procurement practices.

Deloitte has estimated potential savings from the eight newest proposed efficiencies in the tens of millions and said it could eliminate as many as 250 jobs across the three campuses. In response to questions Thursday about potential cuts, Deloitte representatives told UI employees that they expect many of the reductions can happen through attrition and retirements.

Ferraro, in fact, took issue with the term 'job cuts” and said his team is just finding ways to do work with fewer people - a shift that could be absorbed without layoffs.

When asked about the university's plan to increase its student body and how that might conflict with proposed staff reductions, Ferraro said his firm did not plan for growth in its evaluations. He said the regents and universities must be flexible in their implementation.

Regarding implementation, UI employees asked whether they will have a say in how and who helps the Board of Regents realize potential savings.

The board, to date, has agreed to pay Deloitte $3.3 million for its work with the first and second phases of the review, and it has said it wants to hire Deloitte to implement its suggestions to sourcing and procurement practices. But the two sides have not yet agreed on a new contract.

One person during the Thursday forum asked whether Deloitte's involvement in implementation is a conflict of interest, and Ferraro said it's not and that it's common for consulting firms to help organizations realize opportunities.

The ISU public forum is planned for Monday. The Board of Regents will vote on how to move forward with the eight newest suggested efficiencies at a meeting on Nov. 14.