1. BACKGROUND Pilot process selection: “Transferring Gift Funds from UWF to UW” The Business Services APR group is large (25-30). For training purposes, the group was arbitrarily split up: One group was to dissect the time cycle of transfers (which most all team members felt they would be working to improve) The other group was left to identify problems with accuracy in the transfer of funds The group interpreted “accuracy” as a function of managing gift funds and attempted to carve out our mission.

2. Improving the Cycle Time for the Transfer of Funds from UW-Foundation to UW- Madison APR Business Services Redesign Team Briefing to Executive Sponsors June 16, 2008

3. Problem - Cycle time too long to transfer funds from Foundation to UW Fund 133/233 projects and to make payments to vendors/employees. Mission - Reduce the time to request and receive funds from UW Foundation. Stretch Goal-Decrease cycle time from request to deposit from 3-5 weeks to 5 days Problem/Mission/Stretch Goal

4. Redesign Team Members Ann Bourque – Budget Office Brian Busby - DoIT Sally Erdmann – UW Foundation June Ganser – Enrollment Management Sandra Guthrie – General Library System Nancy Hilmanowski – College of Ag and Life Sciences Suzanne Hock - Engineering Marilyn Jabusch – School of Medicine and Public Health Karen Lederer – College of Letters and Science Don Miner – Business Services Sharon Hughes – Business Svcs/Cash Management Bob Andresen – Research and Sponsored Programs Jesse Szeto – Research and Sponsored Programs George Watson – Office of Quality Improvement

5. Two types of Checks requested Checks to pay vendors or reimburse employees directly from UW Foundation funds Checks to the Board of Regents to move funds from the UW Foundation to Fund 133/233 projects at UW-Madison

6. Current Process (Page 1 of 2)

7. Current Process (Page 2 of 2)

8. Analyzing Reimbursements

9. Analyzing Transfers to Regents

10. Root Causes (Verified) Delays by physical delivery - 6 to 18 days. Too many people touching the process. Check runs at UWF are scheduled 2 days per week (Tuesday and Thursday) - many times missing the cut off to process these checks the next day. Time required printing physical checks, depositing checks, and recording the financial entries versus using electronic funds transfer with financial data upload from UWF to UW. Inconsistent ability to track status of paperwork at certain steps in the process. (Dept, Deans Office, UWF & RSP) Approval process varies by school or college. Lack of coordination of required steps (Sometimes Gift Deposit Form and Check Request Form are prepared at separate times).

11. Overarching Recommendations for a Better Process Simple – Must be easy to use and understand Trust – Those participating in the process must trust each other to avoid redundant checking. Paperless – Minimize the need for paper Consistent – Build in standards and rules Integrated – Use data from both UW Foundation and UW-Madison “systems”

12. Potential Changes (1 of 2) Dept / Dean’s Office One input form to replace the UWF Check Request and UW Gift Deposit Forms Build rules/edits into the form All Schools/Colleges use the same form Electronic routing of form for approval/processing Provide tracking capabilities Limit to 2 approvals Provide training/documentation for the process Delivery Paperless Automated Routing and Approval Separate the movement of the dollars from UWF to UW from the recording of the receipts and budget in UW records so one does not depend on the other

13. Potential Changes (2 of 2) UW Foundation One input form for UWF Check Request and UW Gift Deposit Form Build rules/edits into the form All Schools/Colleges use the same form Increase UWF disbursement run frequency Use wire transfer / ACH Upon final UWF approval automatically create new accounts, record receipts and increase budget in UW’s records and notify requestor of actions completed Move cash separately from recording of receipts and budget RSP RSP no longer needs to create new accounts, record receipts and budgets for gift projects since these happen automatically after UWF. Create audit and control reports for RSP

14. Anticipated Benefits Before - 2 Processes – Requiring 10-47 days After – 1 Combined Process – Requiring 5 days 2-3 < 1 0 Total Department TimeTotal UWF TimeTotal Delivery TimeTotal RSP Time

15. Management of UW Gift Funds Report

16. Next Steps Obtain sponsor approval to proceed with the development of an implementation plan for the recommended solution including: Resource needs (Budget and People) Timelines / Milestones Clear definition of outcomes and interim steps

17. Questions???

18. Current Process (1of 3)

19. Current Process (Page 2 of 3)

20. Current Process (Page 3 of 3)