In April 2002, Comptroller Carole Keeton Rylander announced that her Texas School Performance Review (TSPR) would conduct a review of the Austin Community College (ACC). Although, in December 2000, the ACC Board of Trustees had requested the review and voiced willingness to pay 25 percent of the cost of the review, that the financial challenges facing ACC made it prudent for her office to bear the full cost of the review. Work began in ACC on May 21, 2002, marking the first time that TSPR applied a new set of higher education audit protocols, resulting in a more comprehensive approach to higher education reviews.
After six months of work, this report identifies both exemplary programs as well as areas for improvement. If fully implemented, the 107 recommendations in this report could save the college a net of more than $14.3 million over the next five years-savings that could be focused on improving education in the college classroom.
Expanding TSPR for Higher Education Institutions
The general powers of the Comptroller give the agency the ability to audit any entity receiving state funds. In 1999, shortly after Comptroller Rylander took office, school performance reviews of Texas Southern University and the El Paso Community College were released. These two reviews provided TSPR valuable experience in the higher education arena, but it was not until Rider 19, of the 2002-03 General Appropriations Act, which provided legislative intent for higher education reviews, that the Comptroller moved forward to expand TSPR's mission to include ongoing reviews of higher education. Rider 19 says the Comptroller's office "may conduct performance reviews of general academic teaching institutions during the 2002-03 biennium. Performance evaluations shall, as a minimum, consist of a review of fiscal and management operations; student services; curriculum; and benchmarks with respect to peer institutions."
TSPR, in cooperation with the Texas Higher Education Coordinating Board (THECB) and the Texas Association of State Senior College and University Business Officers, as well as individuals working in higher education institutions, began to develop a comprehensive set of audit protocols to use in higher education reviews.
Drawing upon Comptroller Rylander's goal of driving more of every education dollar directly into the classroom, she directed TSPR staff to share best practices and exemplary programs learned from these reviews, quickly and systematically, with all the state's colleges and universities and with anyone else who requests such information. Best practices as well as the audit protocols can be found on the Comptroller's A+ Ideas for Managing Schools (AIMS) Database at <www.aimsdatabase.org>..
Under Comptroller Rylander's approach, consultants and the TSPR team will work with colleges and universities to:
- Ensure students and faculty receive the support and resources necessary to succeed;
- Identify innovative ways to address the college's and university's core management challenges;
- Ensure administrative duties are performed efficiently, without duplication, and in a way that fosters education;
- Develop strategies to ensure the college's and university's processes and programs are continuously assessed and improved;
- Challenge any process, procedure, program or policy that impedes instruction and recommend ways to reduce or eliminate obstacles; and
- Put goods and services to the "Yellow Pages Test": government should do no job if a business in the Yellow Pages can do that job better and at a lower cost.
Finally, Comptroller Rylander has opened her door to Texans who share her optimism about the potential for higher education, and she welcomes any suggestions to improve Texas colleges and universities at any time. The Comptroller believes colleges and universities deserve all the attention and assistance they can get.
For more information, contact TSPR by calling toll-free 1-800-531-5441, extension 5-3676, or see the Comptroller's Web site at www.window.state.tx.us .
TSPR in ACC
The Comptroller contracted with McConnell, Jones, Lanier and Murphy, a Houston-based firm, to assist with the performance review. The review team interviewed college employees, faculty, board members, employee groups, business leaders and community members, and held public forums at all six ACC campuses and the Highland Business Center on June 4, 5 and 6, 2002. To obtain additional comments, the review team conducted seven focus group sessions with various college and community organizations.
About 439 persons completed and returned written surveys, including 217 faculty, staff and administrators and 222 students. In addition, TSPR conducted a random telephone survey of 387 area households. Details from these surveys and public forums appear in Appendices A through D. The Comptroller's office also received letters, e-mails and phone calls from faculty, students and community members.
ACC selected several "peer colleges" for comparisons based on similarities in student enrollment, budget and other factors. The colleges selected included North Harris Montgomery Community College District, San Jacinto College District and Collin County Community College District.
Exhibit 1 shows comparative data for ACC and its peer colleges.
Exhibit 1 Source: Texas Higher Education Coordinating Board; Texas State Auditor's Office; ACC and Peer Audited Financial Statements, Fiscal 2001; ACC Business Services and Peer Surveys.
Demographic Characteristics of ACC,
Peer Colleges and the State
Fall 2001
Community
College DistrictStudent
EnrollmentPercent
HispanicPercent
African- AmericanPercent
AngloPercent
OtherTotal
FacultyTax Rate
Per $100
Assessed
Property ValueAustin 27,577 21.2% 6.6% 62.2% 10.1% 1,502 .05 Collin County 14,179 7.5% 5.7% 73.5% 13.2% 755 .09 North Harris Montgomery 21,050 15.5% 10.5% 65.2% 8.9% 1,465 .11 San Jacinto 22,747 26.3% 10.2% 53.7% 9.8% 1,068 .09 State 447,998 29.0% 11.0% 52.0% 8.0% N/A N/A TSPR also obtained data from THECB, the state agency responsible for overseeing community colleges in Texas, for information on community colleges in general and ACC specifically. In addition, information was obtained from the Texas State Auditor's Office.
Many TSPR recommendations would have no direct financial impact, but would improve the college's operations; others call for additional investments to make such improvements. In all, however, the recommendations in this report would net area taxpayers nearly $14.3 million by 2006-07.
Exhibit 3 provides a detailed list of costs and savings by recommendation.
Acknowledgments
The Comptroller's office and McConnell, Jones, Lanier and Murphy wish to express their appreciation to the ACC Board of Trustees, President Richard Fonté and the many college employees and community members who helped during this review. Special thanks go to Dr. Martha Oburn, associate vice president for Institutional Effectiveness, who served as ACC's liaison to the review team. She arranged for office space, equipment and meeting rooms, organized meetings, responded to requests and made other valuable contributions to the review team's effort.
Community Colleges in Texas
Community colleges play a vital role in Texas by providing a variety of offerings including technical and vocational programs; freshman and sophomore courses in arts and sciences; continuing adult education programs; compensatory education programs; workforce development programs; adult literacy classes; and, other basic skills programs.
Two-year academic programs lead to either an Associate of Arts or an Associate of Science degree and are designed to feed into baccalaureate programs. Two-year technical programs lead to an Associate of Applied Science degree and programs of shorter duration lead to occupational certificates.
Community colleges respond to the employment needs of citizens, agencies, businesses and industry through customized and contract workforce instruction, courses for professional certification or licensure, and general continuing education opportunities. They work cooperatively with local public schools to provide greater educational options for high school students through School-to-Work and Tech-Prep programs. School-to-Work programs provide students opportunities for early career exploration and counseling. The Tech-Prep program allows high school students to receive college credit for high quality technical courses taken in high school. In addition, concurrent course enrollment programs allow advanced students to take courses for concurrent credit in both high school and college.
Community colleges represent the largest segment of higher education in Texas. THECB predicts, in its Enrollment Forecasts 2000-2015 Texas Institutions of Higher Education, that enrollment is expected to reach 1.2 million students by 2015. The increased number should include 96,000 new community college students.
According to preliminary enrollments in fall 2002, THECB estimates community college enrollment at more than 500,000. Of the 50 community college districts in Texas, 39 are reporting record enrollment this fall reflecting an increase of 66,750 students from fall 2000. In addition, an estimated 250,000-plus are enrolled in workforce training programs. THECB attributes the increased enrollments to the slow growth in the state's economy.
Community colleges receive funding through a combination of state appropriations, which are based on a contact or instruction hour formula, as well as property taxes, tuition and fees.
ACC Background
As a founding board member and former president of the ACC Board of Trustees, Comptroller Rylander literally knocked on doors all over Austin to ensure a successful election to initially set up ACC. To this day, she continues to have a deep and abiding interest in the success of the college.
In December 1972, Austin voters approved a measure creating ACC, which was to be managed, controlled and operated by a joint Austin Independent School District (AISD) and ACC board. Less than a year later, in September 1973, ACC opened the doors of the Ridgeview campus in east Austin to 1,900 students. In 1982, ACC established an independently elected governing board; ACC's first step in trying to establish a tax authority independent of AISD. By 1983, ACC had grown to offer instruction at more than 60 locations in the Austin area. These locations included two major learning centers and a facility at Bergstrom Air Force Base. These facilities served 16,000 students enrolled in courses for college credit.
In March 1986, ACC passed a public referendum that authorized a tax rate of 5 cents per $100 of assessed property valuation. This measure enabled the college to continue to grow and, by the end of 1987, the Pinnacle, Northridge and Riverside campuses were operational; the college also uses the Highland Business Center as an administrative center.
In 1993 and 1996, faced with probation, the college underwent an accreditation review by the Southern Association of Colleges and Schools (SACS). SACS recommended ways to improve the governance structure, policy implementation and the college's over-reliance of adjunct faculty. When the board hired Dr. Fonté in 1997, they charged him with bringing the college into compliance with SACS and directed him to implement the one-college concept. ACC is organized as one college with multiple campuses and is accredited by SACS as a single institution. Instructional responsibilities are assigned collegewide. Conversely, other community college colleges are organized as "colleges" with each campus representing a self-contained entity headed by a provost or president.
Today, ACC serves nearly 28,000 students at six campuses including Cypress Creek, Riverside, Pinnacle, Northridge, Rio Grande and Eastview. The college also operates two centers, including Highland Business Center where the administrative offices are located and the Downtown Education Center. In addition, ACC has nine extension centers at area high schools including Akins, Fredericksburg, Hays, Round Rock, Westwood, Bastrop, Georgetown, Lockhart and San Marcos. ACC's courses include general education (university transfer), workforce programs, customized training for businesses, continuing education and developmental education.
The college offers 67 majors, including 19 associate of arts, 12 associate of science and 36 associate of applied science. In fall 2001, 27,577 students enrolled, with 24 percent full-time and 76 percent part-time students. Since fall 1998, ACC enrollment has increased 7.7 percent. The student population includes 61.0 percent Anglo, 27.1 percent Hispanic, 7.8 percent African-American and 4.1 percent other ethnicities.
ACC's taxing authority includes Austin, Leander and Manor Independent School Districts. Its 5 percent tax rate has remained unchanged since 1986 and is the lowest in the state. The 2001-02 annual budget is $102.6 million, with 38.3 percent from state appropriations, 32.4 percent from tuition and fees, 21.9 percent from property taxes and 7.4 percent from other revenue sources such as grants, contracts and interest income.
In 2001-02, 72.8 percent of the college's budget funds payroll costs for ACC's 3,330 employees, including 47.7 percent faculty (12.5 percent full-time and 35.2 percent adjunct); 40.9 percent classified and hourly staff; 10.3 percent professional/technical staff; and 1.1 percent administrators.
Comptroller Rylander selected ACC for a performance review in April 2002 following a series of announcements regarding a serious budgetary shortfall and the college's plans for cutting costs to address the shortfall.
Since the announcement, the college has taken a number of actions to improve the college's financial position, yet challenges remain. ACC's administration and board reduced the fiscal 2002 budget by approximately $3 million, including 5-percent budget reductions in academic and student affairs and 15 percent reductions in administrative areas such as travel and supplies, and a reduction in course sections from those originally scheduled.
The college's stellar instructional and academic programs demonstrate ACC's emphasis on the primary purpose of a community college-to provide academic courses, workforce development and lifelong learning. ACC's continued focus on directing resources and services to its most important customer-ACC students-shows that the college's priorities are in the right place.
As ACC continues to improve its services and programs and looks toward future growth, the following key challenges were identified:
- Improving communication and governance;
- Restructuring the organization and controlling staffing levels;
- Enhancing financial controls and accountability; and
- Managing student growth and improving student services.
Key Findings and Recommendations
Improve Communication and Governance
Strengthen governance by conducting annual policy orientation workshops, team-building training and establishing controls for timely communication and requests for information between the board and president. In 1996, SACS cited the ACC board for micromanagement. In response, the board implemented the Austin Policy Governance Model, and has cautiously monitored every action, in some cases relinquishing authority to the administration by failing to hold them accountable for their actions. Mistrust once again is surfacing and, in frustration, some board members are becoming involved in day-to-day issues. When the board, as a whole, clearly outlines expectations and requires accountability for board goals and policies, a balance of power and trust can be restored.
Hold the president accountable for the successful implementation of the one-college concept. ACC's one-college concept is not working as it was originally intended. ACC's board implemented the one-college concept to promote a greater degree of policy implementation, uniformity of programs and services and cohesiveness among campuses through improved communication, collaborative decision-making and effective leadership. However, breakdowns in communication and ineffective processes have adversely affected hiring, budget decisions, organizational management, faculty workloads and student services. By holding the president accountable for diagnosing and re-energizing the process, the intended effectiveness of the one-college concept can be achieved.
Hire an independent mediator to categorize and help resolve the issues of discontent between the president and the faculty. The ACC faculty and president do not work well together, and the relationship between the two has deteriorated to the point that both parties are unable to focus on current issues. By hiring an independent mediator to resolve organizational conflicts, ACC could better negotiate and work collaboratively on establishing goals and objectives, carrying out shared governance and refining the one-college organizational approach.
Create a board policy reflecting a consensual definition of shared governance and implement a system to ensure its implementation. ACC policies have not been developed through a shared governance or collaborative decision-making process. Varying viewpoints and definitions of what shared governance is exist, as well as confusion over who has an active role in the policy development process, all contributing to the discontent among internal stakeholders. The college should collaboratively develop a shared governance definition and put into place a system to delineate the roles of each stakeholder in the policy formulation process.
Restructure the Organization and Control Staffing Levels
Restructure ACC's administration. ACC's current organization is not functionally aligned and some positions perform duplicate functions. For example, the functions of the provost and two executive deans continue to duplicate functions performed by the campus operations managers. By restructuring some reporting relationships and eliminating two executive deans, one provost and five administrative assistant positions, the college could save more than $2 million over five years and eliminate redundancies.
Require the internal auditor to report administratively to the president and functionally to the Board of Trustees. The Internal Audit Department's reporting relationships are not properly aligned. ACC's internal auditor reports functionally to the president and administratively to the associate vice president, Institutional Effectiveness making it difficult to conduct objective reviews. Changing the reporting relationships will ensure the internal auditor's independence is not impaired and will provide direct access to top management and to the Board of Trustees.
Apply enrollment criteria in the course scheduling process to maximize the use of faculty and classroom space. The average 2000-01 ACC class size for full-time and adjunct faculty declined from 1997-98 levels. Enrollment maximums are based upon classroom size, availability of equipment and requirements of accrediting agencies for regulated programs. By evaluating each section individually for appropriateness and raising the average class size to 21 students from 19.6 students for full-time faculty and 19.4 students for adjunct faculty would require 25 fewer full-time faculty and 80 fewer adjunct faculty, resulting in annual savings of more than $2.3 million.
Implement custodial allocation formulas that conform to industry standards. ACC employs and contracts for more custodians than the peer average; custodians clean less gross square feet per custodian than the peer average and ACC spends more per gross square foot for custodial services than the peer average. ACC's in-house custodians also duplicate many of its contractor's cleaning responsibilities. Implementing custodial allocation formulas would bring the college in conformity with industry standards and save nearly $210,000 annually.
Enhance Financial Controls and Accountability
Eliminate stipend payments for routine work assignments.ACC routinely and inconsistently pays stipends to employees for various reasons. The stipends provide another vehicle for the college to increase employee pay beyond the approved pay scales. The stipend policy and administrative guidelines are not well defined nor publicized. In 2001-02, ACC paid more than $706,500 to 622 employees. The individual stipend amounts ranged from a low of $12 to a high of $8,830 annually. By having the Human Resources Department perform a cost-benefits analysis of the stipend program, ACC can thoroughly review the eligibility requirements for the stipends and determine what stipend can and should be eliminated.
Eliminate the ACC Foundation's dependency on the college's budget to cover administrative expenses. The ACC foundation is a Texas nonprofit corporation supporting the educational mission of ACC by providing funding for student scholarships, ACC programs and facilities through donor gifts and endowments. Since 1997, ACC has funded its foundation's administrative expenses. The foundation's budget has increased over the last five years by more than 71 percent. Many colleges and universities use an annual fund drive to solicit donations to support its foundations' operating costs. By eliminating the funding for the ACC Foundation's operational expenses, the college could save nearly $121,000 annually.
Institute an ongoing change management program for the college's computer system. The use of Datatel software is controversial because of the belief by user groups that it does not help employees perform their jobs, resulting in some users continuing to operate with various spreadsheets. This software is used for managing ACC's accounting, financial, purchasing and student record functions. The college has worked with the vendor to address the concerns, with varied levels of success. By implementing a change management program that has executive management support and promotes user buy-in for change, the college can take advantage of the planned upgrade during 2002-03 and address customer support and comprehensive user training, the issues that have plagued the system since its original installation.
Develop cash flow forecasts to use as a cash management tool.ACC does not prepare cash flow projections beyond one day. By using cash flow projections as a planning tool, the college will be better able to predict and prepare for future cash requirements before the actual need arises.
Develop a model to project healthcare costs and to better budget for healthcare for ACC's employees. ACC does not have an accurate method of estimating the amount of local dollars required to pay for healthcare for its employees. As a result, the college cannot predict how long its Employees Retirement System supplement will last or how many employees the money will cover. The lack of an accurate projection model contributed to ACC's fiscal 2001 budget deficit, which resulted largely from insurance payments ACC paid in excess of state allocations. A projection model could help the college plan for future healthcare costs and help ensure that the college is not caught short mid-year.
Require requisitions for all purchases more than $1,000 and establish penalties for noncompliance. Many budget authorities and employees requisition goods after they have been received and no penalties are imposed for violating policy and circumventing procedures. In essence, the college processes these purchases after the fact. Purchasers are allowed to disregard procedures without being held accountable and the college is not imposing penalties for repeated violations. In addition, it is labor intensive for the accounting clerks to pay vendor invoices that lack purchase orders. By enforcing purchasing policies and procedures and holding all ACC staff accountable, the college can ensure not only that all state laws are being complied with, but also improve the purchasing function's efficiency.
Develop a comprehensive contract management plan and assign contract management responsibility for all auxiliary and support services to the Purchasing Department. ACC does not have a centralized contract monitoring function to manage all aspects of contract administration and ensure optimum contract performance. In January 2002, the Purchasing Department employed a contract coordinator to monitor the financial performance of ACC contracts, however, this position focuses primarily on coordinating the Purchasing Card Program and not the financial performance of contracted services. No one position or department is responsible for financial and operational performance oversight of contracts. By developing a comprehensive contract management plan, ACC could analyze operational and financial performance, conduct regular interaction with vendors, perform site inspections, require staff training and ensure compliance with legal requirements that would allow ACC to negotiate more lucrative contracts.
Manage Student Growth and Improve Student Services
Encourage out-of-district communities to join the ACC district. ACC has the lowest number of annexed communities and the lowest percentage of assessed property value in comparison to its peers. Of the total number of communities served, 90 percent are out-of-district and only 10 percent are in-district. While ACC has aggressively tried to educate school districts and community members about the benefits of ACC, the Texas Election Code prohibits the college from using public funds for political campaigns for annexation. This does not, however, prevent students and community leaders from providing information and materials about annexation and the educational benefits of ACC to communities through political action committees.
Revise board policy by adding a cost-of-education pricing model as an additional method for determining out-of-district tuition. ACC does not factor the cost of education into its determination of out-of-district tuition rates. ACC's $81 out-of-district tuition rate is 150 percent higher than the peer colleges' $34 average rate and 204 percent higher than the $28 state average. A study commissioned by ACC found that most other colleges' rates are based on a percent of the cost of education and estimated ACC's cost of educating out-of-district students at $73 per credit hour, $8 less than the college's $81 current rate. This higher out-of-district tuition has resulted in a decline in out-of-district enrollment, resulting in a loss of state funds. By amending board policy to include the cost of education as a factor in setting the out-of-district rate, while maintaining the revenue-based model would allow ACC to develop a more equitable out-of-district tuition rate that would encourage rather than discourage out-of-district student enrollment.
Encourage student accountability by charging fees for late registration and class schedule changes. ACC does not charge fees for special services such as late registration or schedule changes that require additional work, and reduces the college's ability to provide timely service to other students. Although not intended to be a profit generator, by charging fees at a level to recover the increased costs, fewer students may request such services, which will allow the Student Services Department to be more efficient.
Increase patrol officers' salaries to ensure vacant positions are filled, officers are retained and campuses are safe and secure. ACC's Police Department is so under funded and understaffed that it cannot ensure adequate coverage at all campuses or provide essential equipment, supplies or continuing training for officers. ACC's starting patrol officer's pay, $20,866, is the lowest among its peer colleges and local law enforcement agencies. Because five patrol officer positions are vacant, ACC implemented mandatory overtime for existing officers, resulting in excessive overtime costs. Increasing the patrol officers' salaries would help attract candidates to fill the vacant positions, and reduce overtime costs, some of which ACC could use to ensure an adequate budget for other safety and security essentials.
Eliminate the mailing of course schedules to ACC households and encourage the use of online searchable class schedules. ACC mass mails 508,000 course schedules each semester to all households within its service area, costing the college $340,000 for postage and printing annually. ACC could save approximately $156,000 annually in postage and printing fees by sending a postcard notification and eliminating bulk mailing of all schedules, and investing in an online searchable system, prospective students could download the college's schedule, and course information would be accessible within moments to anyone interested in enrolling.
Improve training and information on Early College Start to targeted high schools in the service area. ACC has not consistently disseminated information regarding the Early College Start program that provides free tuition and fees for college-accredited courses to area high school students. The program is one mechanism that colleges use to meet a legislative mandate requiring high schools with low college entry rates to establish a partnership with an institution of higher education and to implement a plan to increase those rates. By increasing Early College Start training and communication with principals, counselors and parents at area high schools with low participation rates, ACC should increase student participation in the program by 1 percent, resulting in increased state funding of more than $12,000 annually.
Exemplary Programs and Practices
TSPR identified numerous "best practices" in ACC. Through commendations in each chapter, this report highlights model programs, operations and services provided by ACC administrators, faculty and staff members. Other colleges and universities throughout Texas are encouraged to examine these exemplary programs and services to see if they can be adapted to meet their own needs. TSPR's commendations include the following:
ACC's board critically evaluates its performance after each meeting during the "Quick Meeting Review" section of its agenda in an effort to continuously improve efficiency and effectiveness of its meetings. The ACC board uses a method to evaluate its effectiveness after each board meeting called the "Quick Meeting Review." At the end of each board meeting, members critique their performance of what went right and what went wrong. Board members agreed that this form of self-policing has improved their effectiveness as policy makers. When members get bogged down on issues or when someone crosses the line between policy and administration, board members discuss it at the end of the meeting.
ACC responds to the needs and interests of the community and businesses through Continuing Education and workforce training opportunities. ACC offers a broad range of non-credit, cost-neutral courses including job-entry training, professional continuing education training and technological and industry certification courses. The college operates the high Technology Institute that offers certification in state-of-the-art technical programs and the Health Professions Institute, the area's major health care training provider. By offering this range of both professional and human-interest courses, ACC promotes lifelong learning and service to the public, business and industry.
ACC's developmental education programs integrate innovative learning opportunities and teaching formats for all students. ACC provides a variety of learning opportunities and services such as the Academic Triangle and Developmental Reading to help under-prepared students meet their educational goals. ACC counselors and faculty work with students with a variety of learning styles to complete remediation courses and complete state-mandated educational requirements. By including diverse options for students and by measuring student outcomes, ACC's developmental faculty are effectively engaging students and having a positive effect on their learning.
ACC's Web database makes it possible to enter, analyze, download and access performance data for continuous program improvement. The Office of Institutional Effectiveness (OIE) monitors a centralized Web database for assessment data entered and subsequently used as part of its formal "unit" or program review process. OIE staff assist unit staff, write measures and gather data for customized improvement plans for any program submitting a request. By providing this easy Web access and by continuously monitoring assessment data, ACC's programs base improvements on performance measures.
ACC ensures accurate accounting of enrollments by purging students for non-payment of tuition and fees. Since fall 2001, ACC instituted a process to de-register students who do not pay their tuition within one week of their registration. Some ACC staff credit this registration process for a large portion of the 6-percent increase in credit enrollment that the college experienced in 2001-02. By following this accounting process, ACC efficiently uses classroom space, ensures that more seats are taken and more sections filled at the time classes start and maintains accurate enrollment information necessary for course cancellation decisions.
ACC developed a business and industry collaboration model creating educational programs to enhance the development of a quality workforce. ACC teams educators with area business leaders and key community groups including the Austin Chamber of Commerce, Austin WorkSource - Capital Area Workforce Development Board and Capital Area Training Foundation in industry "clusters." This model includes an annual college and career fair, classroom guest speakers, business and industry tours and on-site job internships. By connecting employers and educators, students receive high quality work-based learning experiences and employers connect with the next workforce initiating a future return on their investment.
Student services administrators communicate division priorities, issues and problems to staff in an efficient and timely manner. The associate vice president for Retention and Student Services does an excellent job of communicating department and college issues to the administrative staff. The associate vice president holds weekly meetings and posts a weekly newsletter to the division web page. As a result, the efficiency and effectiveness of the department has improved dramatically.
The Student Services Department cross-trains staff to perform additional responsibilities at multiple units and departments. Most student services departments have limited staff for the volume of students they serve. When staff in one department misses work for meetings on other campuses, attend professional development conferences or leave work for health reasons, other staff provide coverage in their place. Well-trained staff that know the policies and procedures for more than one area provides critical service when staff shortages exist in other units.
ACC develops its budget using an online budget program that is accessible over the Intranet for authorized personnel. ACC uses a web-based budget development program that allows budget authorities to input their budgets online. The program highly automates budget development and compilation by eliminating manual budget forms and iterative duplicative processing. After budget officers enter their budget requests, the next level supervisor makes appropriate changes that then is available to the next level supervisor. This process continues until the budget is presented to the Executive Leadership Team and ultimately to the board for approval.
ACC lowered the costs of workers' compensation and property casualty insurance by obtaining bids and by using an insurance consultant to assess RFP responses, review claims history and reevaluate policy deductibles. ACC used a professional insurance consultant to assess insurance bids and evaluate deductibles, resulting in significant savings on its insurance programs. ACC's workers' compensation carrier notified the college in November 2001 that their rates would rise 288 percent to $449,326, so instead, ACC obtained bids and found coverage estimated at $280,000 per year.
ACC implemented the Purchasing Card Program (PCard) for purchases less than $1,000 to reduce cost and improve purchasing efficiency. In November 2001, ACC piloted 37 users to test purchases through the use of the PCard for small dollar purchases less than $1,000. The PCard program was established with a major bank through the state's purchasing cooperative and is designed to reduce an organization's administrative costs for repetitive transaction processing tasks, such as authorizing, tracking and paying small purchases. ACC plans to implement the program collegewide with approximately 100-300 users in late fall 2002.
ACC operates a comprehensive Web site that provides students and the community with useful resources and information about the college. ACC maintains a comprehensive Web site that includes detailed information about academic and workforce departments, continuing education, adult basic education, distance learning, including Early College Start and Tech Prep programs. ACC's Web site features tier menus that allow for direct, one-click access, to 71 different links and submenus. Maintaining a comprehensive Web site provides another avenue for ACC to communicate with its students and the community.
Savings and Investment Requirements
Many of TSPR's recommendations would result in savings and increased revenue that could be used to improve classroom instruction. The savings identified in this report are conservative and should be considered minimums. Proposed investments of additional funds usually are related to increased efficiencies, savings or improved productivity and effectiveness.
TSPR recommends 107 ways to save ACC more than $15 million in gross savings over a five-year period. Reinvestment opportunities would cost the college more than $730,000 during the same period. Full implementation of all recommendations in this report could produce net savings of more than $14.3 million by 2006-07.
Exhibit 2
Summary of Net Savings
TSPR Review of Austin Community College
Year Total 2002-03 Initial Annual Net Savings/(Costs)
2003-04 Additional Annual Net Savings
2004-05 Additional Annual Net Savings
2005-06 Additional Annual Net Savings
2006-07 Additional Annual Net Savings
One Time Net Savings/(Costs)$473,867
$3,368,614
$3,497,921
$3,497,921
$3,497,921
($26,000)TOTAL SAVINGS PROJECTED FOR 2002-2007 $14,310,244 A detailed list of costs and savings by recommendation appears in Exhibit 3. The page number for each recommendation is listed in the summary chart for reference purposes. Detailed implementation strategies, timelines and estimates of fiscal impact follow each recommendation in this report. The implementation section associated with each recommendation highlights the actions needed to achieve the proposed results. Some items should be implemented immediately, some over the next year or two and some over several years.
TSPR recommends the ACC board ask college administrators to review the recommendations, develop an implementation plan and monitor its progress. As always, TSPR staff members are available to help implement these proposals.
EXECUTIVE SUMMARY