Skip Menu

Return to Skip Menu

Main Content

Restructuring Authorities Overview

Autonomy Received in the Operational Board of Visitor Policies, and Performance Measures

Capital Outlay

Decentralization Made Permanent

  1. Continues delegations of the various Appropriations Acts for all nongeneral fund and selected general fund projects which provide relief from all non-code related post appropriation review, approval, administrative, and policy and procedure functions of the Department of General Services ("DGS"), Department of Engineering and Buildings ("DEB"), and Department of Planning and Budget ("DPB"). This includes such authority as:
    • Selection of construction procurement method for general fund ("GF") and nongeneral fund ("NGF") projects
    • Contract and change order review and approvals for NGF projects
    • Relief from DGS non-Virginia Public Procurement Act ("VPPA") related procurement procedures for NGF projects
  2. Renewal of term professional services contracts for single and multiple projects with a maximum dollar limit as established in the Request for Proposal and flexibility in the number of terms.

New Authorities

  1. Extends all prior decentralization post-appropriation authority to all GF projects.
  2. Ability to designate a Building Official and establish an internal Review Unit for the purpose of reviewing plans, specifications, and documents for compliance with codes and standards. The review unit could conduct Fire and Life Safety reviews and issue Certificates of Occupancy. (Virginia Tech does not plan to implement this authority at this time.)
  3. Provides authority to the Board of Visitors ("BOV") to establish and initiate NGF projects thus removing prior state approval, while continuing to allow institutions to make a case for maintenance, operations and insurance GF support.
  4. Increases the bid bonds and performance and payment bonds for all contracts to $1,000,000 or more. Nothing precludes University from requiring bonds below this amount.
  5. Provides BOV disposal authorization authority for improvements on land acquired with NGF revenues and constructed with NGF revenues.
  6. Provides BOV real property authority on real property acquired with NGF revenues.

Leasing

Decentralization Made Permanent

  1. Continues delegated authority to enter into operating/income leases.

New Authorities

  1. Enter into capital leases. (New to VT and WM)
  2. Acquire easements across non-institution land. (New to VT and WM)
  3. Grant or convey easements on any land owned or controlled by the institution. (New to VT and WM)

General Accountability Measures (Capital Outlay, Leases, and Real Estate)

  • No material audit findings
  • Compliance with Board of Visitors ("BOV") approved restructuring policy
  • Regular reports to the BOV by the designated building official related to his/her duties as the official responsible for project compliance with the building code. The building official has direct access to the BOV.
  • Compliance with the Restructuring Act's reporting requirements for all BOV project authorizations
  • All Certificates of Use issued subsequent to the State Fire Marshal's favorable occupancy report

Specific Performance Measures (Capital Outlay, Leases, and Real Estate)

Performance MeasureBenchmarkResults
Number of days on average for institution to process change orders locallyBefore decentralization, number of days on average for Bureau of Capital Outlay Management ("BCOM") to process change orders (UVA data to be used as proxy benchmark for all institutions) 
Number of days on average for institution to complete code review, including fire and life safetyBCOM established standard for code review turnaround time (21 days)N/A at this time for Virginia Tech who will not be designating a building official or creating a review unit.
Number of days saved by BOV approval of NGF projects compared to state approvalNumber of days that would have been required from BOV approval to Appropriation Act effective date 
Average number of days for institution to approve a leaseAverage number of days for Real Estate Services to approve a lease (UVA and VT proxy data) 

 

Finance and Accounting

Decentralization Made Permanent

N/A

New Authorities

  1. Authority to create and implement any and all financial policies necessary to establish a more efficient and effective financial management system.
  2. Control and manage moneys generated or received by the University, including the authority to hold and invest tuition, E&G fees, research and sponsored programs funds, auxiliary enterprise funds, and all other non-general funds. (Available 2007-08 after the University has been certified as meeting the administrative and financial performance measures.)
  3. Establish tuition, fee, room, board, and other charges, with appropriate commitment provided to need-based grant aid for middle- and lower-income undergraduate Virginians.
  4. Set estimated sum sufficient appropriations for all nongeneral funds. Exemption from nongeneral fund revenue restrictions in the Appropriation Act's general provisions. (Except as provided otherwise in the Appropriation Act then in effect.)
  5. Retain nongeneral fund savings generated from changes in Commonwealth rates and charges, including but not limited to health, life, and disability insurance rates, retirement contribution rates, telecommunications charges, and utility rates. (Unless prohibited by the Appropriation Act then in effect.)
  6. Create and implement any and all accounts receivable management and collection policies, which will be guided by the requirements of the Virginia Debt Collection Act (Code of Virginia, Sections 2.2-4800 through 2.2-4808), including establishing criteria for granting credit; establishing the nature and timing of collection procedures within the above general principles; and the independent authority to select and contract with collection agencies and, after consultation with the Attorney General, private attorneys as needed to perform any and all collection activities for all university accounts receivable such as reporting delinquent accounts to credit bureaus, obtaining judgments, garnishments, and liens against such debtors, and other actions.
  7. Create and implement disbursement policies, to be guided by the general principles of the Commonwealth's Accounting Policies and Procedures Manual. The University shall continue to follow the Commonwealth's disbursement policies until such time as specific alternative policies can be developed, approved by the Board of Visitors and implemented. Such alternative policies will focus on the efficiency and effectiveness of the business operating environment and shall be submitted to the State Comptroller for review and comment prior to their implementation by the University.
  8. Select, engage, and contract for such consultants, accountants, and financial experts, and other such providers of expert advice and consultation and, after consultation with the Office of the Attorney General, private attorneys, as may be necessary or desirable.
  9. Create and implement any and all debt management policies, including the authority to issue bonds, notes, or other obligations that do not constitute State Tax Supported Debt and that are consistent with debt capacity and management policies and guidelines established by its Board of Visitors, without obtaining the consent of any legislative body, elected official, commission, board, bureau or agency of the Commonwealth provided that, the University shall notify the Treasurer of Virginia of its intention to issue bonds at the time it adopts the bond issuance planning schedule for those bonds.
  10. Provide monthly summary reports instead of using Commonwealth's Accounting and Reporting System ("CARS"), or any subsequent Commonwealth financial systems which replace CARS.
  11. The right to withdraw from any insurance or risk management program provided that the university pays any additional costs related to such withdrawals to the Commonwealth.

General Accountability Measures

  • Compliance with current and/or revised Commonwealth management standards, including unqualified audit opinion and no material audit findings
  • Compliance with Board of Visitors approved restructuring policy
  • Maintain an independent and effective internal audit function reporting directly to the Board of Visitors and have no significant internal audit findings

Specific Performance Measures

Performance MeasureBenchmarkResults
Stability of tuition and fee increases over timeTrend tuition and fee percentage increases from 1990-2005 compared to percentage increases over the timeframe of the six-year plan 
Bond rating from at least one of three rating agenciesAn unenhanced rating received in the last three years within the double-A range or better from either Moody's, S&P, or Fitch 
Annualized investment returns earned on operating cash balances invested by the institution over a rolling three year periodThe annualized yield on the 91-day Treasury Bill Index over a rolling three year period 
Debt burden ratio (actual annual debt service on a long-term debt, excluding commercial paper or other bond anticipation notes, divided by total operating expenses)Equal to or less than 7% 
Write off of bad debts from tuition, fees, room, and board chargesLess than or equal to 1% of prior year's operating revenues, over a rolling three year period 
Percentage of recovery of delinquent accounts receivable sent to outside collection agencies or litigationGreater than or equal to 10% of dollar value of the accounts referred to collection agencies, averaged over the last three years 
Amount of need-based financial aid for undergraduate Virginia studentsTrend data against a baseline calculation in 2005-06 
Amount of need-based grants for undergraduate Virginia studentsTrend data against a baseline calculation in 2005-06 

Human Resources

Decentralization Made Permanent

N/A

New Authorities

  1. Develop and implement a new human resources system which would include classification and compensation plans, new performance and evaluation processes, policies for leave, disability, and possibly enhanced benefits. (University commits to regularly engage employees in appropriate discussions during the development of the system. Current classified employees must choose the new system once available or may remain in the state system. Periodically, but no less than every two years, classified employees remaining in the state system will be given an opportunity to move into the University system.)
  2. Develop severance policies for salaried employees who are in the new University system, including all faculty.
  3. Elimination of reporting into state human resources systems.
  4. Establish new definitions for Administrative and Professional Faculty. (Provided in Level 1)

Additional Reporting and/or Requirements

  1. A Memorandum of Understanding was developed between the University and the Department of Human Resource Management to specify what reporting is needed to fulfill the Commonwealth's reporting requirements. Other reporting as requested to state agencies including by not limited to the Department of Human Resource Management, the Joint Legislative Audit and Review Commission, and the State Council of Higher Education for Virginia.

General Accountability Measures

  • No material audit findings
  • Compliance with Board of Visitors approved restructuring policy
  • Compliance with Restructuring Act reporting requirements

Specific Performance Measures

Performance MeasureBenchmarkResults
Percentage of turnover as an indicator of staff stability and staff satisfactionAverage percentage turnover rate should trend with College and University Personnel Administrators ("CUPA")-Human Resources ("HR") benchmark, which is approximately 11% 
Internal transfers/promotions as a percentage of total number of hires as a measure of the extent to which the institution hires or promotes from withinPercentage rate should be equal to or greater than CUPA-HR benchmark, which is 25% 
Average number of days to classify new positions or reclassify a staff position as a measure of effectiveness of the classification processAverage should be equal to or less than CUPA-HR benchmark, which is approximately 30 days 
Average number of days to hire staff, from recruitment posting to the candidate's acceptance OR start date of the position as a measure of effectivenessTrend data against baseline average in 2005-06. 
Compliance with Restructuring Act election provisionsTrack percent of (i) total employees who are participating in the institutional HR system and (ii) current employees who have elected to participate in the institutional HR system 

Information Technology

Decentralization Made Permanent

  1. Institutions of higher education which are members of VASCUPP as of July 1, 2003 are delegated authority by the Commonwealth CIO for planning and development of non-major IT projects from $100,000 to $1 million.
  2. Procurement of IT goods and services less than $1 million does not require VITA approval.

New Authorities

  1. Exemption from Virginia Information Technologies Agency ("VITA") and Information Technology Investment Board ("ITIB") provisions of the Code of Virginia that govern the University's IT strategic planning, expenditure reporting, budgeting, project management, infrastructure, architecture, ongoing operations, security, and audits. The university remains subject to VITA and ITIB regulations in all matters that do not pertain to the areas above.
  2. Responsibilities of the institution (rather than VITA and the ITIB):
    • Define and implement a comprehensive information technology ("IT") strategic plan, to include specific projects and procurements that support the goals of the institution's mission.
    • Approve and authorize the budget and funding for IT operations, IT projects and IT related procurements.
    • Direct the effective management of IT investments throughout their entire lifecycles, including, but not limited to, project definition, procurement, development, implementation, operations, performance evaluation, and enhancement or retirement.
    • Define and implement security policies, procedures, standards and guidelines to protect the integrity of the institution's digital information and communication infrastructure.
    • Define and implement IT infrastructure, architecture and ongoing operations policies, procedures, standards and guidelines to effectively manage the institution's IT assets.
    • Procure IT goods and services through the most cost-effective means as described in the VT procurement policy. Procurements of goods and services shall be exempt from the oversight of the Virginia Information Technologies Agency. However, the University shall continue to purchase from and participate in contracts for communications services and telecommunications facilities entered into by the Virginia Information Technologies Agency as well as have the ability to utilize other cooperative agreements such as General Services Administration contracts.

Additional Reporting and/or Requirements

  1. Policy requires strategic plan to be made available to the State CIO for review and comment.
  2. Policy requires University to make available a report on previous year's IT expenditures every October 1.
  3. Policy requires University to report quarterly to the Information Technology Investment Board on the budget, schedule, and overall status of the University's "major" IT projects. Major IT projects are defined by the current legislation criteria as: mission-critical; has statewide application, or has a total estimated cost of more than $1 million. Current practice exempts the institutions from VITA and ITIB review over research projects, research initiatives, and instructional programs unless $1 million or more of the cost is paid for with general funds.

General Accountability Measures

  • Campus infrastructure supporting the expansion of cutting edge research and new forms of instruction consistent with peer research institutions
  • Facilities and support for high performance computing and communications and large scale (i.e. peta-scale) data repositories consistent with peer research institutions
  • Compliance of institution's security programs with professional best practices
  • Development and implementation of up-to-date institutional information technology strategic plan
  • Compliance with Board of Visitors approved restructuring policy

Specific Performance Measures

Performance MeasureBenchmarkResults
Major information technology projects will be completed on approved schedules and within approved budgetsProjects are completed on time and within budget at a rate that matches industry standards 
All faculty and students have convenient access to a distributed learning and collaboration environment, with course management systems in support of such services as online content; student information and library systems upgraded as major changes in technology warrantxx% (based on individual university metric) of all 2005-2006 courses utilize technically up-to-date course management systems 
Institutions will leverage their collective expertise to save money and help strengthen security programsThere is evidence of collaboration among institutions, such as the Higher Education Virginia Alliance for Security Computing and Networking (VA SCAN) 
The institution complies with policies for the procurement of information technology goods and services, including professional services, that are consistent with the requirements of § 23.38.110 of the Restructured Higher Education Financial and Administrative Operations Act and that include provisions addressing cooperative arrangements for such procurement as described in § 23.38.110Results of external and internal audits indicate compliance 

Procurement and Surplus Property

Decentralization Made Permanent

  1. Continues delegations regarding the application of a core set of locally administered procurement policies and procedures. For example, a "Rules" document clarifies that we are exempt from VITA procurement regulations and validates that state contracts are optional for the University's use in all areas except telecommunications services which remain mandatory.

New Authorities

  1. Substitutes a uniform set of Procurement Rules in lieu of the Virginia Public Procurement Act. Exemptions/changes from basic Virginia Public Procurement Act ("VPPA") language include:
    • Increase bid bond requirements from $100,000 to $1,000,000.
    • Ability to use goods and services procurement methods for capital projects valued under $1M (renovations).
    • Exempt advance written determination for use of competitive negotiation when competitive sealed bidding is not practicable or not fiscally advantageous.
    • Allow for multiple awards in procurement of professional services and establish professional services contract level at $50,000.
    • Increased the small purchase level from $30,000 to $50,000.
    • Streamline the competitive negotiations (RFP) process.
    • Obtained exemptions from competitive bidding for several transaction categories including speakers and performing artists, membership and association dues, group travel in foreign countries, and royalties where competition would not exist or is not feasible.
    • Removed approval requirements to participate in cooperative contracts. Provided for local determination (in writing) and annual reporting of cooperative contract alliances.
  2. Exemption from mandatory purchase from Virginia Industries for the Blind ("VIB").
  3. Autonomous authority for disposition of surplus personal property.
  4. Retain at the institution all proceeds from sale of recycling and surplus property.

Additional Reporting and/or Requirements

  1. Enacted a Memorandum of Agreement to define scope and expectations of e-procurement systems operated by the state and the university which details the timeline and requirements for the interface or integration of both systems. (UVA and VT only)
  2. Provide written documentation when state contracts do not meet our business needs before engaging in cooperative contracting activities.
  3. Provide an annual report on cooperative procurement alliances.

General Accountability Measures

  • Compliance with current and/or revised Commonwealth management standards, including prompt pay compliance and no material audit findings
  • Compliance with Board of Visitors approved restructuring policy and procurement rules document

Specific Performance Measures

Performance MeasureBenchmarkResults
Goals established in the plan submitted to the State under current law for Small, Woman-owned and Minority-owned procurement. Performance will be reported quarterlyAccomplishment of goals and improvement on previous performance 
Maximize operational efficiencies and economies through the adoption of best practices for electronic procurementIncreased use of electronic procurement as measured by dollar value 
Volume of cooperative procurementsMeasure increase in the number of existing contracts renewed and new contracts over the number of current contracts 
Vendor protests with a legal basis for the protestNumber of such vendor protests as compared to 2005-2006