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{ Cost of Services at UVa CSG May 2015

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UVa Background Background on UVas Cost of Services Initiative Cost of Services Overview Cost of Services Methodology Benefits So Far Limitations/Challenges Possible Future Uses/Benefits Overview:

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21K Students 11 Schools Academic Budget (excl. Med. Center): $1.41B Decentralized ITapprox. outside central IT Total Central IT Budget: $48M; approx. 35% charged back to units today Next year, fully allocated out under new budget model UVa Background:

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Scope: Central IT Only Full Budget Early Discussions with Indiana, Cornell Modeled with WTC on Indianas activity- based costing (2011) Continuing simplification and refinementnow into 4 th year Background on UVas Cost of Services Initiative:

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Structure: 181 Cost Categories 50 Lines of Business (rolled up categories-- Hosting Services, Network Connectivity, Operational & Administrative, etc.) Coordination with newly-updated ITS Service Catalog Cost of Services Overview:

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Sample Lines of Business Cost of Services Overview: Access Management Cable TV Classrooms, Technology- Enhanced Custom applications and consulting Data Center Services Departmental Computing Support Enterprise applications: HR/Payroll Financial Systems Student Information Systems Document Imaging System Emergency Preparedness Helpdesk Hosting Services Identity Management IT Training Messaging Network Connectivity Operator Services Operational & Administrative Records Management Services Research Consulting Security and Privacy Administration Security Incident Response and Investigation Server Support Storage Services Telephony Services, Basic University Data Center Video Services

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All Costs: Peoples Time (PS) Other Than Personal Services (OTPS) Allocated to Services: Direct Indirect Shared costs (ex.: managers salaries to services they work on, etc.) Overhead (ex.: senior leadership allocable expenses) Cost of Services Methodology:

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Process: Collect staff time through managersnow using personal service allocation tool with definitions/guidance Allocate purchases to services (becoming more streamlined; approx. 1/3 automatically allocated to services) Cost of Services Methodology:

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Personal Service Allocation Tool

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Awareness of All Service Costs and Dependencies (not just those associated with for fee services) Streamlined Rate Setting Helpful for Sourcing Decisions: Help Desk Cloud IaaS Streamlined Responding to Surveys Core Data Hackett Consulting Engagement Others Enabled Greater Transparency with Constituents (schools, advisory groups, etc.) Benefits So Far:

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Financial Overview: Budget Breakdown, Cost of Services From IT Support SLA: Baseline Common Good Services Auxiliary Services For Fee Services Summarized Cost of Services [Slide from SLA Meeting with DeansTransparency on Costs]

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Annual refresh/Sustainable Methodology Accuracy: Time Reporting; 72% of costs are personal services Capital Costs One-Time Project Costs Benchmarking/Comparability: Partial Service Costing: Examples: ERP, Emergency Preparedness, Classroom Support How institutions budget (fringe benefits, power, space, etc.) Managing costs of services that go across organizational boundaries (even within central IT) Can be overcome; just requires additional work (worth it?) Limitations/Challenges:

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Benchmarkingbut would need: Comparable data/costs List of services to benchmark What would these be? Common tool/central point for collection Educause Core Data Survey? Vendor tool? Share a consultant to do for a group(s)? Further discussion on this at the end of our session Possible Future Uses/Benefits:

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CONTACTS: Virginia Evans, CIO vevans@virginia.edu vevans@virginia.edu Susie McCormick, Assistant VP for IT Budget and Administration mccormick@virginia.edu mccormick@virginia.edu