By Carolyn McMillan

The University of California has created $157 million in systemwide administrative efficiencies over the past year, putting its Working Smarter initiative on track to achieve $500 million in positive fiscal impact over five years.

Nathan Brostrom, executive vice president for business operations, and Peter Taylor, UC's chief financial officer, will discuss the results with the UC Board of Regents tomorrow (July 13).

UC administrators launched the Working Smarter initiative last July as part of a strategy for coping with ongoing declines in state financial support. It aims to improve and streamline UC's administrative operations, while also producing $500 million in savings, revenue generation and other positive fiscal impacts.

The $157 million figure reflects cost savings and new revenue produced during the 2010-11 fiscal year from seven of the 29 projects that comprise the Working Smarter initiative, Brostrom said. The remaining projects are still in early phases of implementation, making it too soon to assess their fiscal impact.

"These initial results are very encouraging," Brostrom said. "Given the ongoing reduction in state financial support for UC, we need to do everything we can to find new sources of revenue and to cut operational costs in ways that preserve and protect the quality of the university."

UC's enterprise risk management program accounts for more than $82 million in savings over the past year. Through that program, UC has significantly lowered the cost of its insurance for a wide range of risks and hazards.

UC has also had big success with its liquidity management program. By allowing campuses to move some working capital from a short-term investment pool to a longer-term investment that offer higher returns, the university has generated more than $40 million in new revenue during 2010-11.

The university's Statewide Energy Partnership program is another stand-out, capturing $25 million in savings last year. The program helps campuses finance energy-efficiency projects, so in addition to saving money, it is furthering UC's environmental goals and helping put it on the map as a national leader in energy-efficient building practices.

"These kinds of changes represent what Working Smarter is all about," Taylor said. "We are doing things in better ways, and helping the university in the process. We can't solve all of our fiscal challenges through administrative efficiencies, but we are going to do as much as we can."

New projects will be added to the Working Smarter initiative over time. UC faculty and staff are encouraged to get involved and to submit ideas for projects that can enhance administrative services and cut costs.

UC has launched the Working Smarter website to serve as a central hub for information on Working Smarter and the projects within its scope, including detailed background information, project team members, news and updates, and fiscal impact calculations as they become available.

Carolyn McMillan is the managing editor for Internal Communications in UC's Office of the President. For more news, visit the UC Newsroom or follow us on Twitter.