Executive Vice President
In last year's report I presented five administrative themes to guide development and evaluation of administrative operations and services. They are client orientation, collaboration, sustainability, accountability, and professionalism. The themes are means. The ends are enhanced service levels and greater cost effectiveness. The reports that follow provide specific examples of how these themes are becoming part of our everyday lives.
Program Review in Central Administrative Areas
In June, the Provost and I announced the initiation of a program for reviewing central administrative areas periodically. Although some non-academic areas at MIT (such as the Office of Sponsored Programs and Athletics) have had the benefit of the Corporation Visiting Committee process, this has not been available generally to central administrative units.
After evaluating the applicability of MIT's visiting committee model and the review process in use at one other major research university (there are very few models!), and with input from department heads here, we have defined a program that will involve both internal clients and outside experts. It will be piloted in the coming year in Financial Systems Services and Information Systems. These departments are particularly well suited for the pilot program for a number of reasons, including the criticality of their services, their multi-dimensional operations, the effects of the external environment on both the demand and supply sides of their core business, and the breadth and diversity of their client base.
The program review will involve both an Internal Review committee of MIT faculty and staff and an External Review Committee, on which experts from outside MIT have agreed to serve. James Champy, Chairman of Consulting at Perot Systems and also a member of the Executive Committee of the MIT Corporation, will be the overall chair of the review. Ann Wolpert, Director of the MIT Libraries, will serve as co-chair of the Internal Review Committee. The Provost and I are the sponsors of the program review and Patricia Brady of my office is providing staff support.
With this new process, we intend to challenge ourselves with frank answers to key questions: Are we meeting internal client needs and expectations? Where are the gaps and how wide are they? How do we compare with the highest external standards in our technological prowess and professional leadership? Are we cost effective? Do we have a sustainable service organizational model? Stay tuned.
During this year, we changed the size and reporting relationship of the Administrative Advisory Council (AAC I). Formerly comprising 13 administrative officers from across academic and administrative units, and reporting only to the Executive Vice President, the Council now numbers 17 and is jointly convened by and advisory to the Provost and me. The goals are: broader base for client input and concerns, reanimated collaboration between central service providers and clients (or end-users), and more direct communication among individuals at various nodes of key business processes.
As noted in the report from the Department of Facilities, there are six projects under construction. 10 in the design phase, and many others being studied. More than 1.5 million square feet are under construction. Milestones for the year included the permitting of five major projects, two groundbreakings, and three new and significant architect selections.
Settlement with the U.S. Environmental Protection Agency and Justice Department
In April 2001, MIT successfully settled an enforcement action resulting from a May 1998 broad campus inspection by EPA, and in June, the Federal District Court approved the Consent Degree. One of the most significant requirements is that MIT design and implement an environmental management system. This work has begun, and it will be overseen by an Ad Hoc Subcommittee of the Institute Committee on Environmental Health and Safety.
Human Resources-Payroll Project
This major collaborative effort, which kicked off in the fall, will redesign relevant business processes and then implement SAP's HR-Payroll module. Human Resources, the Office of the Controller, Financial Systems Services, Information Systems, and representatives from the Institute's departments, labs, and centers are playing major roles in this critical project.
Financial Review and Control
A new streamlined process to replace MIT's existing financial statement reconciliation process was launched this year. The new process enhances MIT's already strong control environment, complements MIT's SAP and Data Warehouse electronic tools, and uses the time of department administrators and support staff as effectively as possible.
To improve cost effectiveness, one has to know costs and measure effectiveness against both internal service standards and external benchmarks. Budgets can be powerful tools if developed and accounted for in terms of specific services: for example, network, custodial, payroll, auditing, construction, design, employment, and accounting services, to name only a few. Budgets and accounts have to be properly developed to answer my key annual questions: What is the outside competition (in price and quality terms) for services that your department provides? What competitive advantage or disadvantage do (should) you have as an inside provider? As the President's "procurement officer" for administrative services, why should I buy from you? Neither budgets nor accounts had been developed and maintained to answer these questions. To address this fundamental deficiency, I convened two half-day budget seminars for the "chief financial officers" of the operating units that report to the Executive Vice President. The seminar concept was an effort both to convey what I need to see in budget proposals as well as to learn what issues confront the operating units that might be impediments to better budgeting and accounting. The seminars were enlightening for all of us and culminated in joint efforts to craft the FY2003 budget call letter, and to redesign budgets and SAP accounts by service programs.
I became a trustee of the College Board, gave the keynote address to a joint meeting of Chief Information Officers and Chief Financial Officers sponsored by EDUCAUSE and NACUBO ("The Technology of University Business in the 21st Century"), and contributed the chapter on budgeting to NACUBO's sixth edition of College and University Business Administration, the standard reference for business practices in higher education.
In my office, Marilyn Melithoniotes joined us as Executive Assistant supporting Patricia Brady, Stephen Immerman, and Janet Snover.
Following are the individual department reports.
The MIT Audit Division delivers audit services through a risk-based program of audit coverage including compliance assessments and financial, operational and technology reviews and audits. These efforts, in coordination with the Institute's external auditors, provide assurance to management and the Auditing Committee that good business practices and policies are adhered to, adequate internal controls are maintained, and assets are properly safeguarded.
FY2001 was the first full year of the Audit Division's operations under new leadership. The Division's structure was brought into focus with delineation of new teams responsible for functional areas of the Audit Plan: Financial and Compliance, Operational, and Construction. Each team draws support from a specified member of the Information Technology audit staff, thereby integrating systems expertise into examination of business processes. Brisk recruiting efforts resulted in key positions being filled, including a construction audit specialist, as well as audit positions in compliance and general audit management.
The Audit Division's scope of services is equal to the full extent of MIT's auditable activities. Allocation of audit resources across this broad spectrum is accomplished via a model for evaluating risks associated with individual units and/or operational processes, thereby determining a cycle of audit review. The resulting annual Audit Plan guides the assignment and completion of work, which is heavily biased (approximately 40 percent of audit resources, measured in available staff hours) toward assuring compliance with financial controls and requirements of research sponsors within individual academic, research and administrative units. Audit review of capital construction projects has become an increasingly important part of the plan (approximately 10 percent, with remaining time devoted to audits and review of operational processes, uses of technology and special projects. Time is also specifically allocated to staff development.
During the past twelve months, we evaluated the adequacy of compliance with Institute guidelines, policies and procedures, for control over financial activity in nine areas of Information Systems. This review noted no material exceptions, however a transition in financial management had allowed some degradation in controls that was remedied during the course of our audit work. Examination of the Center for Cancer Research's practices in the administration of sponsored research noted minor exceptions to Institute policies, and overall compliance with requirements. Financial control and compliance processes of the School of Engineering will be examined thoroughly in the upcoming year, with particular attention to measurement of this area's adaptation to new guidelines for Financial Review and Control, promulgated during this year
Operational controls were examined in the Travel Office and over the use of the MIT Visa Card, both areas of high visibility from a regulatory perspective. Each of these areas promotes strong accountability over travel and card privileges extended throughout the MIT departments, research labs, and central units.
Construction audit activities have focused on selected capital projects, including Stata Center (review of the architect contract and related payments), Baker House renovations, Building E18 renovations, and others. Reviews have identified potential recoveries and questioned costs of nearly $250,000. The construction audit process employs the services of several external audit firms, with both local and national presence. Selection of firms is based upon prior experience with the Institute and the project's construction management, in a competitive bidding process. The Division's Construction Audit Specialist consults regularly with project managers on the status of projects, and to identify areas of potential exposure that may be avoided contractually or with modifications in practices.
Our Information Technology Specialists have been welcome additions to several endeavors on the technology front, including involvement in the SAP HR-Payroll module implementation, the selection of a vendor for the replacement Libraries system, and participation in the "e-commerce" team launched by the Administrative Policies and Systems Coordinating Council (ASPCC). Cumulatively these and similar projects consume in excess of one full-time-equivalent audit staff, nearly 10 percent of our resources.
In addition, we have actively participated in the environmental health and safety initiatives that are being undertaken in connection with the recently executed consent decree with the U.S. Environmental Protection Agency and the Justice Department. This commitment will grow in the upcoming year. Involvement by Audit in this and the above projects demonstrates the division's willingness to foster positive change as part of a management effort, in addition to fulfilling the traditional role of independent assessor.
Despite considerable success in recruiting activities, the division's operations were impacted by the status of open positions remaining in excess of 2.5 full time equivalents (21 percent of total complement) throughout this period. For this and other reasons, with the support of executive management and the MIT Auditing Committee, we enhanced relationships with various strategic partners to co-source and outsource audit work in the areas of capital projects, MIT Medical, the Alumni Association, and the Office of Budget and Financial Planning. This effort recouped a significant portion of the gap in available audit resources created by the open positions, as well as gaining access to necessary expertise not resident on the Audit staff.
The Audit Division implemented in January 2001 a software package enabling automation of administrative aspects of the audit process (workpapers, scheduling, time tracking, and recordkeeping of audit findings). This not only brings the division to a peer level for automation, it provides the foundation for "industrial-strength" measurement, monitoring and reporting to the MIT Auditing Committee on status and results of the Audit Division's activities.
The role of audit committees in both public and not-for-profit organizations is being better defined by members of the audit profession and others taking a strong interest in matters of institutional governance. Recently the MIT Auditing Committee expanded their annual meeting schedule to three meetings, to permit additional time for topics of interest in concert with their mission. The committee is also in the process of adopting a charter that will lend momentum to the Audit Division's goals for monitoring internal controls and supporting the Institute's risk management processes.
We emphasize professional development on the part of all our staff. During the past year we are pleased to note two individuals, Martha Jane Gagnon and Michelle Jackson, completed the requirements for certification as Certified Internal Auditors. This marks substantial commitment to the profession of internal auditing on the part of these individuals, and brings the total of certifications division-wide to eight. Members of the audit staff find opportunities for training in their discipline, and affiliate with industry peers through conferences, seminars and group meetings. The Institute Auditor is a member of the "Little 10+" association of Ivy League and other peer institutions, which meets semi-annually.
The Institute Auditor is an active participant in several management groups. As a member of the Executive Vice President's Senior Management Team and the Administrative Systems Policies Coordinating Council (ASPCC), the Institute Auditor lends expertise in risk management and control in addition to staying abreast of new developments in broader Institute initiatives. The Institute Auditor has also recently joined the Budget and Finance Steering Group (BFSG), to provide an additional link between internal operations and the oversight activities of the Auditing Committee in financial affairs of the Institute.
Systems development and Discovery Team work from the preceding fiscal year culminated in the roll-out of the Roles Database as the central systems of record for certain authorizations in FY2000. Business processes to accompany Roles were substantially designed by the Authorization Process Improvement Team (APIT), led by Audit Manager Michael Bowers. Following the conclusion of APIT's responsibilities at the beginning of this fiscal year, the IS Business Liaison Team (BLT) took ongoing responsibility for carrying out APIT's recommendations, and assumed the new function of Central Authorizor (CA).
The CA is overseen by a committee chaired by the Institute Auditor, and comprises members of the Controller's Accounting Office, (CAO), I/S, and Financial Systems Services (FSS). Over the past several months the CA Oversight Committee working with the CA has formulated a charter, and has implemented many of the recommendations from the APIT. Broader membership of other process owners and members representing the larger MIT community is anticipated as other administrative systems adopt the Roles Database to manage their authorizations.
The Audit Division has taken several steps to echo the Executive Vice President's five broad themes for MIT Administration within internal operations and audit practices. First among these is client orientation. Supporting our primary client, the MIT Auditing Committee, while providing value-added audit services Institute-wide, has been a longstanding commitment of the Audit Division, one that is met through careful attention to the concerns and potential exposures that face the administrative and academic staff and the faculty, researchers, and senior Institute personnel they serve.
The second theme, collaboration, has been demonstrated particularly in our approach to construction audit; this responsibility can only be met through close involvement by the audit team in the affairs of the Capital Projects group and project management. Our efforts in system implementation projects have also been carried out through strong collaboration, a mode which advances the needs of the auditor as well those of the overall project.
Sustainability is the third theme. Business solutions to audit findings must, as a first priority address the noted problem; to do this in a sustainable manner is the ultimate goal. Often management accountability (the fourth theme), reinforced through ongoing measurement, monitoring and reporting processes is a necessary ingredient in a sustainable solution. Improving and supporting management accountability is a goal for audit management in the upcoming year.
Professionalism is the fifth theme. Professionalism on the part of individuals comprising the Audit Division, as well as within the practices for the conduct of audit work, is an assumed standard for the internal audit function of an institution such as MIT. We recruit and retain people with professional certifications, support the ongoing maintenance of such certifications, and through communication and development nurture their understanding of their obligations as MIT internal auditors.
Finally, as the upcoming year progresses, the audit management team continues to explore and compare internal administrative practices for audit plan development, audit methodology and uses of technology to "best practice" standards, and consider opportunities to better leverage existing resources while meeting the Institute's goals for the division.
More information about the Audit Division can be found online at http://web.mit.edu/audiv/www/.
Financial System Services (FSS) coordinates the development, delivery, and maintenance of financial systems for the Institute. Our mission is to support the ongoing implementation of SAP; ensure that the software increasingly meets the needs of our clients, i.e., MIT's departments, laboratories, and centers (DLCs); keep MIT current in terms of installing the appropriate new version of SAP and other related software; and work to further integrate MIT's business processes. This was a transitional year for FSS. Much of our effort was expended either fine-tuning various aspects of the SAP financial modules that are already operational at MIT, or else preparing for the implementation of the Human Resources/Payroll modules or for the implementation of SAP at Lincoln Laboratory.
The upgrade to version 4.6 of SAP was the most important piece of preparation that took place during the year. This upgrade, necessary to support the large-scale Human Resources-Payroll (HR-Payroll) and Lincoln Laboratory implementations presently underway, was successfully completed in January 2001. The transition to SAP version 4.6 represented a greater degree of change for the DLC enduser than previous upgrades, so community members were again called upon to assist with testing as well as to provide feedback on upgrade training, documentation and support plans. Shortly after the 4.6 upgrade was completed Executive Vice President John Curry and FSS held a reception to thank the community testers.
SAP's Internet Transaction Server, the backbone of SAP's web-supported application delivery, was implemented on a pilot basis with approximately 100 users from the MIT community and the Controller's Accounting Office (CAO). Available transactions include the creation, change and look-up of journal vouchers, and the verification of credit card charges. Although these services were very well received in pilot, security concerns prevented them from being offered to the general community during FY2001. These concerns have been addressed, however, and a full rollout is expected in the fall 2001, as is the delivery of Employee Self Service, a component of the HR-Payroll project that employs the same architecture.
The formal kickoff of the Human Resources-Payroll Project occurred last fall, and there are now parallel efforts underway. The first is the implementation of employee benefits data into the SAP HR-Payroll system in preparation for the November 2001 open enrollment. FSS and Benefits Office staff have been working to develop and deliver training and documentation on the new system. The second is the formation of several business process redesign teams. These teams are working to streamline Human Resources and Payroll business processes, review policies and procedures, and facilitate change issues that will accompany the technical implementation of the SAP HR-Payroll module. More than twenty such teams are planned to review the HR-Payroll business processes and practices, and produce the redesigns. FSS staff are participating on several of the business process redesign teams.
In preparation for multiple subsidiaries to occur within the MIT business environment, a Multiple Enterprise Structure Team was assembled with FSS, CAO and Information Systems (IS) representation. The team coordinated the effort to identify and modify SAP components and to adjust business practice to support transactions in a multiple enterprise environment. Another team worked in parallel with the first spin-off organization, Technology Review, to assess business needs, assist CAO with financial transfers, configure the system and deliver end-user training.
Lincoln Laboratory has chosen SAP as the replacement for several of their aging administrative computing systems. The Lab will participate in the Institute-wide Benefits implementation of the SAP HR-Payroll project beginning summer 2001 and will implement the first phase of the Plant Maintenance module in late 2001. Other SAP functionality will be introduced for Purchasing, Inventory, Human Resources, Property, and Accounting over the course of 2002-2003. The Lab also intends to implement a new data warehouse integrated with SAP as the primary source for administrative reporting and is exploring a new generation of SAP compatible web-based tools to simplify access for end-users. Financial Systems Services and Information Services are providing extensive support to the Laboratory for the SAP project.
FSS welcomed SAP User Group (UG) presentations by HR-Payroll Team members this spring and looks forward to continued HR-Payroll participation in SAP-UG throughout the next year. Likewise, this year, for the first time, the Financial Systems Update newsletter included an article about the MIT Human Resources Payroll Project. As MIT proceeds to implement the SAP HR/Payroll module, the Financial Systems Update will continue to provide news of this significant project.
In addition to publishing the newsletter, the Financial Systems Update Editorial Board in collaboration with the Administrative Advisory Council II, created the Financial Systems Quick Reference. This valuable and very popular reference, developed in response to a client need, provides information about the various computer systems used at MIT to perform and support the financial work of the Institute.
In another collaborative effort with the Administrative Advisory Council II, FSS contributed significantly to the effort to articulate the need for a clear, efficient, uniform method to process graduate student appointments. This resulted in the formation of the Graduate Aid Simplification Team, a business process redesign team of the Human Resources Payroll Project, with an FSS Community Support Team member serving as a co-leader. This group will recommend a clear and consistent method for making graduate student appointments.
Members of the FSS Community Support Team and IS staff, including individuals from the Business Liaison Team and Web Communications Services, are working together to develop a web site to facilitate administrative work at MIT. This effort responds to a client need for a consolidated point of access to information and resources. It also incorporates an Administrative Calendar, initially created by FSS CST staff working with the Administrative Advisory Council II.
Acting on behalf of CAO, the FSS Community Support Team developed tools, provided decision support, and delivered training to DLCs for rollout of the new Financial Review and Control procedures. DLC administrators were invited to participate in standard or tailored presentations designed to help them adapt the new financial review policies to their organization as well as to train their staff. New policy outlines, business practice examples and sample exercises were used to support the transition to the new procedures, and a new Data Warehouse tool to ease the review was demonstrated.
The FSS Community Support Team, in collaboration with MIT Organization and Employee Development, is developing a series of courses on managing finances. During this year the course in the Foundations of Financial Management was completed and piloted, and will be offered seven times during academic year 2001-2002. Courses in advanced financial management and the Institute budget process will be completed and piloted in FY2002.
During this year, FSS identified the need for an executive level group that would develop and maintain a broad strategic view and keep SAP-related initiatives prioritized in relation to MIT's overall vision of administrative computing. That need has been met with the formation of the SAP Strategic Planning Group (SSPG). This six-member group includes representatives of departments, laboratories and centers, as well as CAO, IS and Lincoln Laboratory. Demand for SAP-related services continues to outstrip available resources as SAP is increasingly viewed as the software solution to meet business efficiency and information
The Office of Budget and Financial Planning (OBFP) is a professional service organization within the Institute's financial administration. Its mission is to support two client groups, the DLCs on one hand, and senior management on the other, as they pursue the most efficient allocation of financial assets consistent with the Institute's goal of continued excellence in education and research. The office is responsible for:
- Providing the DLCs with the expertise and tools necessary to develop and maintain budgets that meet the needs of the individual while providing accurate base data to the Institute's Financial Plan.
- Supporting senior management by monitoring the Institute's financial position and providing accurate and timely financial analysis, projections, and recommendations as part of the process of developing the Institute's strategic financial plan.
- Managing MIT's financial information asset through the development of innovative budgeting and financial modeling tools.
Administrative Themes Initiatives
In the course of FY2001 the OBFP refocused its activities within the framework of the five key administrative themes of client orientation, collaboration, sustainability, accountability, and professionalism outlined by the Executive Vice President in last year's report. Significant progress has been made in the following areas:
During 2001 the office formally instituted a Client Partnership Program with the DLCs. The key points of this program are:
- Proactive participation by Budget Officers in Administrative Officers' meetings within their assigned DLCs.
- A concerted effort to tailor processes and systems to meet client needs.
- Periodic strategic planning sessions with the Assistant Deans and their fiscal officers.
The results of these efforts to date have been good. The budget preparation and submission process ran more efficiently than ever before, and at the request of the Assistant Deans and with the help of the Controller's Accounting Office, a new procedure for handling drafts was developed. This procedure processes drafts on a daily basis rather than on a monthly schedule, and drafts are reflected in the specific SAP cost objects that they are supporting rather than in a single generic draft account. This new procedure will be fully operational by the end of July 2001. In general, the staff of the OBFP strive to work with their clients as facilitators in financial matters. During a recent staff meeting a Budget Officer defined this role in the following way: "When a client comes to us with a request, we never say it's not our job. We work with the client to find a solution to the problem. In this way we are working to permeate the walls of the legacy information silos."
In addition to the revised draft process mentioned above, several important collaborative projects got under way during the past year. The underlying theme for all of them is streamlining processes and improving the quality of data available to the Institute. The Office of Budget and Financial Planning and the Controller's Accounting Office (CAO) are working on three such projects. The first involved the development of a single reporting hierarchy that will be used for all financial reporting. The goal of this hierarchy is to eliminate the need for "crosswalks" between data presented by the OBFP and data presented by CAO. The second was to review, modify, and update the General Ledger revenue accounts in order to capture the distinction between external and internal revenue and ensure consistency in the budgeting and posting of revenue. The third project involved the joint development with CAO of a standard quarterly GAAP reporting format. This format has already been adopted for quarterly budget and financial reports, as well as for the GAAP exhibits in the recently published FY2002 Budget Book.
Other noteworthy collaborative activities were to:
- Execute MIT's most recent tax-exempt bond issue in collaboration with the Treasurer's Office, the Controller's Accounting Office, and the Department of Facilities.
- Reconcile construction gifts reported by the Campaign vs. construction gifts and funds available in the MIT Capital Plan. This activity involves close collaboration with the Office of Resource Development, the Recording Secretary, and the Department of Facilities, and results in consistent projections for MIT senior management.
- Periodically forecast construction project cash flows and debt requirements under changing gift and project cost assumptions, for use in the 10-year financial plan and in the Building Committee decision-making process. This activity involves collaboration with the Department of Facilities, the Office of Resource Development, and the Treasurer's Office, as well as the Recording Secretary.
- Develop a new financial structure for Information Systems in conjunction with its financial officers and with CAO.
- Team with Facilities and internal Audit to update the Capital Project Approval Process.
- Provide the Technology Licensing Office with technical assistance during the design and development of their new system.
- Assist in the redesign of the Human Resources system: two budget office staff are active members of the design review and management organization teams, respectively.
The 10-year Financial Planning Model developed within the Office of Budget and Financial Planning has become a key tool used in the development of the Institute's Financial Plan. However, since its inception in 1997 it has developed, as a prototype, in response to emerging needs. To ensure its ability to sustain the plan and to improve and expand its functionality, we have begun a project to rework the existing model into a more structured and maintainable tool that can eventually be directly accessed by key Institute administrators. This project is on schedule, and we hope to begin testing the new structure in September. In addition, to ensure the sustainability of the existing processes we have undertaken a number of training initiatives:
- Training for the community in use of NIMBUS, which during this past year has established itself as a mature and useful front end to SAP for budget data submission and maintenance.
- Internal training and information-sharing sessions for the office staff dealing with procedures and best practices.
- Providing guidance to the DLCs in the appropriate use of the General Ledger accounts with an emphasis on the revenue portions of the ledger.
The Office of Budget and Financial Planning also is collaborating with Financial Systems Services and members of the community in developing an MIT budget and financial training module to be included as a standard offering in the Institute's selection of professional development options. The partnership program mentioned above also added a dimension of sustainability through knowledge transfer. Budget Officers are now more familiar with the work of their partner Administrative Officers and can and do help new Administrative Officers assume their duties within a department, lab, or center.
Accountability is a key theme for us. Our office consists of a small group of highly skilled professionals who are personally committed to fulfilling their obligations and responsibilities. The group works as a team. Each person's contribution is often dependent on the work of others in the office and is critical to the team's collective added value. Although the first job requirement for our staff is to be a team player, each staff member is fully aware of his or her roles and responsibilities and clearly identifiable by our clients and administrative peers as the author or initiator of his or her business action. Over the past few years we have been refining the communication tools and techniques needed to clearly define roles and responsibilities within the context of specific projects.
Finally, our office maintains the Institute's budget system of record, NIMBUS, and is accountable for the accuracy and integrity of its data. In this context, over the past year PriceWaterhouseCoopers has conducted an extensive audit of NIMBUS on behalf of the Institute Auditor. I am very pleased to report that the audit reports very favorably on NIMBUS's controls, data integrity, and architectural integration with the Institute's SAP accounting system.
Professionalism tempered with courtesy is the cornerstone on which quality service to our clients is based. We constantly seek to maintain and improve our level of expertise, both in areas relevant to the mission of our office and in terms of individual knowledge and qualifications. During the past year OBFP staff members have been involved in the following activities:
- Hosting the Financial Officers Group conference, an annual meeting of budget and financial planning managers from the leading peer institutions, such as Harvard, Stanford, Penn, Yale, and others;
- Attending the Americas' SAP Users' Group (ASUG) Annual conference;
- Attending the EACUBO conference in Boston;
- Attending the American Association for the Advancement of Science annual conference;
- Attending the NACUBO/APPA Institute for Facilities Finance: Strategies for Developing the Facilities Portfolio;
- Attending the Conference Board Conference-Refining Performance Measurement to Align Organizational Goals and Create a High-Performance Organization; and
- Attending the Investment Management for Institutional Investors conference organized by NYU's Stern School of Business Administration.
In addition, we actively encourage individual staff members to enroll in credit courses for professional development. Several staff members are currently working towards or have attained certificates in: project management from the Project Management Institute, advanced accounting from the Northeastern University Management School, and the Massachusetts CPA. In addition, most of the staff has participated in individual development classes primarily in the areas of technology use and finance. Finally, I am very pleased to report that two members of our staff of 12, Robert Slauzis and Eileen Francis, have received the Institute's Infinite Mile Award as part of the recently introduced Rewards and Recognition Program.
In the coming year, we will continue our efforts to make all five key administrative themes operational. A significant example will be the migration of the Institute's 10-Year Strategic Financial Plan, which we introduced and developed over the past two years under the leadership of the Executive Vice President and the Executive Committee of the MIT Corporation, from a spreadsheet-based prototype into a sustainable, production-quality modeling tool. To this effect we have hired an expert modeler and class of 2001 graduate of the Sloan School of Management, Israel Ruiz, on a contract basis. Israel will convert the product into a fully modular, database-powered tool with clearly identified and easily maintainable modules for: business rule, architecture, engine, outputs, and reports, and user and system documentation. The project will start in July 2001 and will be completed by September 30, 2001.
The Office of the Controller includes the following groups:
- Controller's Accounting Office (CAO) provides general accounting and payroll services to the Institute including accounts payable, accounts receivable, travel, cashier, sponsored research accounting, general ledger, financial reporting, payroll, and retirement plans accounting.
- Procurement Office assists the MIT community in the procurement of goods and services-providing advice and services that ensure favorable prices, protective terms and conditions, and compliance with MIT and federal policies and procedures.
- Property Office is responsible for the accounting and asset management of more than 100,000 items of equipment that are both MIT- and sponsor-owned, and tracking all capital costs associated with buildings.
- Lincoln Fiscal Office provides accounting, payroll, cashier, cash management, and property control services to MIT's Lincoln Laboratory.
- Insurance Office purchases casualty, property, and construction insurance for the Institute and administers claims. (In FY2001, the Insurance and Legal Affairs Office was reorganized, with insurance procurement and claims administration taken on by the Office of the Controller and insurance-related legal issues moving to the Senior Counsel's office.)
Work on the SAP Human Resources-Payroll system, in particular the Benefits implementation, and the Lincoln Laboratory ERP/SAP projects began in earnest in FY2001. Some Controller's Office staff were assigned to work full time on SAP Human Resources-Payroll, and other individuals are participating in the Design Review Committee and various short-term project teams. At Lincoln Laboratory, project teams, timelines, team structures, known impacts, and role definitions were discussed and selected. Accounting and finance and property were selected as the Lincoln Fiscal Office functional areas for initial development.
The Controller's Office collaborated extensively with other central units and department, lab, and center staff in two major upgrades to the SAP financial accounting system during FY2001-the upgrade to SAP's version 4.6 in January 2001, which provided improvements to SAP's user interface, and the multiple enterprise structures upgrade, which was required to enable Technology Review initially and, in FY2002, Lincoln Laboratory, to be supported as separate financial entities in SAP.
Staff from the Controller's Office worked with Information Systems and Financial Systems Services on a project to purge selected data from the SAP production system, freeing up considerable computer disk storage space. This is an ongoing project-the next phase is identifying additional SAP data that can be electronically archived or purged.
CAO staff also participated in e-commerce initiatives with the goal of providing MIT departments, labs, centers, and affiliated groups the ability to accept payment for goods and services by credit card via the web. The project teams developed guidelines for e-commerce at MIT and both long-and short-term recommendations on developing an infrastructure to support on-line credit card processing. These also are ongoing efforts.
The Property Office completed the first full year of using the SAP Asset Module for capital costs associated with buildings, and the annual closeout of building costs was completed in SAP.
Reporting improvements continued to be made during FY2001, with this year's focus on improving internal and external revenue reporting and in providing quarterly financial statements. CAO collaborated with the Budget Office to revise and implement more accurate revenue General Ledger accounts and revenue accounting processes. FY2002 budgeting was done using the new revenue general ledger accounts, and the new account structure will be fully operational in FY2002. A quarterly close process was developed to support production of quarterly financial statements and the first quarterly financials for March 31, 2001 were presented to the Institute's Auditing Committee in June 2001. In retirement plans reporting, tax reporting changes required by the Department of Labor for the Basic and Defined Contribution pension plans also were completed in FY2001.
Financial Review and Control
The Financial Review and Control project team, which consisted of departmental and central staff, completed its work, developing a new streamlined process to replace MIT's existing financial statement reconciliation process. Extensive training and documentation also was developed. Training of departments in the new process began in January 2001 and will continue into FY2002 until all groups have been trained. The new process enhances MIT's already strong control environment, complements MIT's SAP and Data Warehouse electronic tools, and uses the time of department administrators and support staff as effectively as possible.
Controller's Office staff both on campus and at Lincoln Laboratory participated in the FY2000 A-133 government audit and provided information and reports requested by the Defense Contract Audit Agency (DCAA) auditors throughout the year. The Controller's Office also responded to requests for information from the Department of Labor in the course of its ongoing audit of MIT's Basic Retirement Plan. The Office of Naval Research (ONR) reviewed and approved MIT's purchasing system and master subcontracting plan through June 2004 as well as reviewing MIT's property system, for which ONR's approval remains in effect.
Administrative Themes Initiatives
The following sections highlight selected new and existing efforts within the Controller's Office to implement the five themes established by the Executive Vice President's Office.
Through its wide range of services, the Controller's Office serves virtually everyone at MIT-faculty, students, staff, and retirees. We listen to our clients daily through a variety of formal and informal mechanisms-face-to-face, telephone, issue-oriented electronic mail lists, meetings, and the like. We disseminate information that our clients need to know using vehicles such as closing meetings, the Controller's message on the monthly financial statements, and training sessions such as the VIPcard class and the Financial Review and Control seminar. We also provide financial consulting, upon request, to departments, labs, and centers on business processes and accounting practices, and assist them with reporting issues. This year, we participated in a cross-departmental team to assist the Technology Licensing Office rewrite its intellectual property data bases, with goals of improving access to and quality of information, and to integrate financial data more closely with SAP. When resources have permitted, we have "loaned" financial staff temporarily to departments that needed assistance keeping financial operations running during a transition, such as when financial positions were open. Such arrangements provide valuable learning experiences for CAO staff, as well as supporting the overall financial operations of the Institute.
As a central organization that processes and consolidates MIT's financial transactions, collaboration with other units is an essential part of the Controller's Office work. The Controller's Office participates in all financial-related project teams, which last year included SAP R/3, the fund study, the student loans project, e-commerce sales, and Lincoln Laboratory property. We work with the Safety Office, the Environmental Medical Service, Risk Management, the Audit Division, and Facilities to address loss control issues. Other significant collaborative efforts in FY2001 include working with the Budget Office to develop a better structure to account for revenue; with the Treasurer's Office, Human Resources, the Benefits Office, and outside actuaries to address overfunding of the Pension Plan; and with the Environmental Programs Task Force, and departments, labs, and centers on the Green Procurement Initiative. We also worked with the Office of Cost Analysis to conduct the annual indirect cost study for the equipment and building pools, which resulted in a recovery of over $25 million.
Partnerships with preferred vendors for commodities and travel are part of our strategy for sustainable procurement. This year we signed a letter of intent with a new partner, Grainger, for maintenance, repair, and operating supplies. In addition, we joined with Harvard to negotiate combined contracts to purchase commodities such as bottled water and lab plasticware. The plasticware contract has been completed, and a letter of intent has been signed for bottled water. We also updated our business process documentation, where possible, streamlining processes. An enhancement to SAP, slated for availabilty in FY2002, is currently underway to permit departments to view and print scanned images of invoices from their desktop computers, eliminating the need to call accounting to obtain copies of invoices. In addition, this year we successfully converted to a new bank for MIT's VIP procurement credit card with little to no disruption to the user community.
Responsibilities and roles are clearly defined in the Controller's Office areas. This information is published for the community on our web pages, beginning with the directory of CAO Offices at http://web.mit.edu/cao/www/offices.htm, which includes the names of supervisors of operating units. A variety of operational measurements are compiled and reviewed by the different units, and summary operational dollar and transaction volumes metrics are collected monthly. For example, the Controller's Office monitors financial commitments in SAP, reducing obsolete commitments, monitors and logs all issues sent to the email@example.com electronic mail list, and reviews purchasing transactions for compliance with MIT and federal policies.
The following selection of metrics gives an idea of the volume of FY2001 transactions in various operational units in the Controller's Office. This year, old purchase order commitments in SAP were reduced to $19.1 million in June 2001 from a high of $157.2 million in December 2000. Use of the VIP procurement card grew over 30 percent from FY2000, with purchases currently averaging $1.7 million per month. During FY2001, the number of active cost objects in SAP grew 19 percent to 35,874 by year end, comprised of 4,833 cost centers, 23,678 internal orders, and 7,363 WBS elements. More than 32,000 financial transfers were done via SAP journal voucher, totaling over 333,000 individual line items. More than 18,000 items of equipment were tagged by the campus and Lincoln Laboratory Property offices.
Table 1. Volume of Payments During FY2001
VIP Credit Card
(excl lump sums)
MIT is the leader in e-commerce technology in higher education, with its VIPcard, partner electronic catalogs, and merchant services programs. Our staff's expertise in higher education payroll has been recognized by the American Payroll Association. Controller's Office staff make significant contributions to industry groups such as the Boston Consortium, Massco, NACUBO, the Massachusetts Higher Education Consortium, and the American Payroll Association.
The Office of Sponsored Programs' mission is to conduct the centrally organized administrative, business, and financial functions related to grant and contract administration and to assist faculty, principal investigators, and their administrators in the identification of resources for and the management of individual sponsored projects consistent both with MIT's academic and research policies and with the stewardship requirements of and obligations to external sponsors.
For FY2001 the total volume of sponsored research performed on campus was $407,423 (all numbers rounded to nearest thousand). This increase of $23.4 million represents an increase of 6.1 percent in total volume compared with the fiscal 2000 volume of $383,988. The breakdown by sponsor is shown in the table below.
Table 2. Campus Research Volume By Sponsor
(in thousands of dollars)
The most significant development over the past year has been the increased focus of federal agencies (particularly NIH) on the issue of compliance. In June 2000, NIH announced a requirement for education on the protection of human research subjects for all investigators who intend to submit competitive NIH applications and for a similar education requirement prior to establishing funds in the Institute's accounting system for non-competing awards. Further requirements on a far broader range of compliance subjects are anticipated during FY2002 as the federal government issues regulations on training in a wide range of research areas.
By September 2001, in a cooperative effort between the chair of the Committee on the Use of Humans as Experimental Subjects, OSP, and personnel from Information Systems, MIT will have a secure web-based training program for the use of humans as subjects that will replace the paper training course from the University of Rochester that we are currently using.
The Institute addressed a variety of costing issues during the past fiscal year, ranging from cost sharing and effort reporting policies and issues to negotiation of Facilities and Administrative rates for future years. Items of particular interest are described below.
Cost Sharing and Effort Sharing
The Presidential Review Directive (PRD) report has identified cost sharing and effort reporting as a significant issue with respect to the research efforts of institutions of higher education. With the adoption of changes to OMB Circular A-21 in recent years and the incorporation of cost accounting standards in that document, the emphasis on accountability became, in large measure, on precision of cost accounting, not on research outcomes. The PRD report has clearly stated "The principal measure of accountability must be research outcomes" and has concluded that accountability and accounting are not the same. MIT has been active in working with federal agencies, the Federal Demonstration Partnership, and the National Science and Technology Council (NSTC) in proposing ways that accountability can be achieved with less burdensome administrative and cost accounting requirements. In January 2001 the Office of Management and Budget issued a clarification addressing student tuition and, more important, voluntary committed and uncommitted cost sharing. MIT's policies and procedures in many ways preceded the federal policy changes, and MIT will not need to make major changes to its procedures to implement the regulations.
Negotiation of Facilities and Administrative (F&A) and Employee Benefit
MIT successfully completed negotiations with our cognizant agencies, DCAA and ONR, to establish F&A rates on a fixed with carryforward basis for FY2002 and on a provisional basis for FY2003 at 65.5 percent MTDC. Employee benefit rates were negotiated for FY2002 at rates that were substantially lower than those rates for FY2001.
Other Costing Activities
The audit conducted annually as required by OMB Circular A-133 was successfully completed in March 2001 with an unqualified opinion, no identified material weaknesses, and a determination as a low-risk entity. In addition, OSP continues to work with the Controller's Accounting Office and the Facilities Department to identify, review, and compile costs for the construction of the Stata complex in accordance with the recent changes in OMB Circular A-21.
Administrative Theme Initiatives
OSP has continued its training programs, which it offers each semester to the Institute community. These programs cover a range of general federal topics (policies and procedures, applicable circulars, F&A and EB costs) as well as a cradle-to-grave summary of how to manage a research award. In addition, it has begun regular meetings with clients to supplement the sporadic visits and presentations made in the past. Implementation of the web-based human subjects training course with its automated recording in the Warehouse of persons who have successfully completed the training will expedite the processing of NIH research proposals.
Many of the training courses are being taught in collaboration with personnel from academic units. In other areas, OSP personnel have worked with academic units to use SAP in new ways to track and record research activities. Personnel from academic units have served as reviewers and collaborators as the MIT electronic proposal initiative has reached rollout stage. In summer 2001 OSP will hold a series of sessions to show academic administrators how the COEUS screens can be utilized for simple but sophisticated reporting.
One key element for MIT is the growth in volume of its research endeavors. The metrics above show how the research enterprise has grown this past year, and its gradual growth over the past decade. OSP has developed, in conjunction with certain federal agencies, mechanisms for electronic receipt of awards (called TS 840's) and streamlined loading of the terms and conditions into COEUS. Along with this growth has come major financial and administrative compliance requirements and, primarily through the efforts of Cost Analysis, MIT has continued to integrate these requirements without disallowed costs or questioned systems.
The move of the Research Subawards Office to OSP has been a step toward clarifying roles and responsibilities. Academic units no longer need to work both with OSP and with Procurement in the development and issuance of research subawards. The successful completion of audit reviews, F&A negotiations, and the establishment of rates underscores this.
OSP is a national leader in electronic research administration. We were the first institution to receive electronic awards in a standardized format from ONR, and we will be the first to be able to submit NSF FastLane proposals in an EDI format (coming in fall 2001). Participation at a senior level in policy initiatives of the federal government, authoring books and book chapters, serving on national panels, and on COGR, testify to the professionalism of the staff and their involvement in the important research administration issues being addressed across the country.
More information about this department can be found online at http://web.mit.edu/osp/www/.
Audio Visual Services' central mission is to provide presentation technology support for all types of Institute activities. The fulfillment of this goal brings the department to the heart of the Institute's educational endeavors, providing daily service to faculty, students, and staff in classrooms and lecture halls. Through the use of audio, video, and computer display and amplification technologies, department staff provided service for classes, conferences, seminars, and cultural programs, totaling over 11,900 events during the past year. Total revenue for the year was more than $1,500,000, a 30 percent increase over FY2000.
Concerted efforts were made during the past year to improve levels of customer service through a more proactive, customer-based approach to processing and performing work. Customers were actively solicited for feedback through phone calls and interviews. When customers encountered problems with installed presentation technology systems, follow-up communication was provided until the problem was resolved. When services performed for customers did not meet their needs, discussions were held to understand the problems and find solutions. Working with faculty and staff from the Sloan School of Management, a user survey was developed to determine customer satisfaction. This survey will be implemented during the upcoming year and will give us an opportunity to improve levels of service. Two additional administrative staff positions were created to focus on customer service and event coordination. These positions will be filled by the beginning of the fall 2001 semester.
The department continued to actively participate in the development and installation of presentation technology systems for classrooms and meeting spaces. Working in partnership with the Registrar's Office, a full upgrade to the computer and video projection system and audio components in Room 10-250 was completed. This included additional connection points for presenters' computers and an intuitive user interface. Similar installations were completed in Rooms 34-101 and 4-364. As part of a classroom renovation project managed by Facilities, four additional classrooms were upgraded in Building 1 and include a full range of presentation technologies. New conference room installations were completed for the Chemistry and Chemical Engineering departments. The department was active in planning the renovation of Rooms 3-370 and 3-270 as part of a larger renovation of classrooms and labs in Building 3. When completed in late summer 2001, these classrooms will provide faculty and students with the latest in presentation technologies for the education of students both in the local classroom and in distance- learning environments.
Members of the department, working with a local vendor, have planned a complete renovation of the sound system in Kresge Auditorium. When completed in late summer 2001, the new system will provide for more distributed sound through the auditorium without echos or distortion. This will allow users of the hall to have more affordable sound amplification for conferences, concerts, and special events.
The increase in the number of presentation technology installations requires the department to expand its role of providing preventative maintenance of these systems. All recent classroom installations are monitored from the department's offices in Building 4. The systems are configured to communicate system status to the department maintenance group. This provides more timely service and maintenance for classrooms and will reduce costly disruptions in service. New installations will continue to employ this remote adminstration model.
In keeping with the Institute emphasis on infrastructure maintenance and development, the department has negotiated a service agreement with the Registrar's Office to maintain more than 15 classrooms and lecture halls. By expanding this service in the upcoming year, faculty and students will experience more reliable presentation technology for classes and events. Similar service agreements will be incorporated in upcoming installations.
Professional development in the department included attendance at Infocomm, the annual trade show and conference sponsored by the International Communications Industry Association (ICIA). All members of the department are members of ICIA and several are enrolled in the online training programs. Several department members enrolled in courses offered at MIT's Professional Learning Center in customer service and various computer software systems. Future educational opportunities are planned for staff to maintain and increase skills.
Development work was performed on the department's workorder database. An equipment scheduling module was created to prevent multiple booking of resources. This addition has prevented equipment shortages and resulted in increased levels of customer service. Members of the department performed research on other university presentation technology departments to compare operating procedures, software systems, and facilities.
Further information about Audio Visual Services can be found online at http://web.mit.edu/av/.
The MIT Campus Police continued to commit itself to providing services to the Institute through community policing partnerships that reduce crime, create a safe environment, build trust, and enhance the quality of life in the academic community. The department remains committed to delivering quality service to the community in an effective, responsive, and professional manner.
The number of crimes against persons decreased by one from 1999. The 2000 total was 33 incidents. There were 107 incidents of theft of Institute-owned property compared to 89 in 1999. Computers and computer components were, once again, the most frequent type of Institute-owned property that was stolen. There were 356 incidents of theft of personal property reported at sites other than residences, compared with 465 last year. The majority of items stolen were wallets, laptop computers, and backpacks. The number of thefts from inside residences increased to 76 in 2000 from a total of 57 in 1999. Again, the most frequently stolen items were bicycles and electronic equipment. There were 13 motor vehicle thefts this year, which is a slight decrease from the total of 15 in 1999. The theft of bicycles decreased with a total of 93 bicycles stolen as compared to 121 stolen in 1999.
Campus Police supplemented Safe Ride when its early morning operations ceased by providing 427 personal safety escorts to members of the community.
The Campus Police department also provides 24-hour emergency medical services to all members of the community as well as to Draper Laboratory and the Whitehead Institute.The total number of patients transported by the Campus Police decreased in 2000 by 41 percent from 1999. The 2000 total was 1,141.
The Rape Aggression Defense (RAD) self-defense program continued to be a popular course among the MIT community. Since the program began in 1994, a total of 580 MIT community members have been trained.
More information about this department, its services, operations, and campus crime can be found online at http://web.mit.edu/cp/www/.
The goal of this organization is to provide the community with the highest quality copier and copier-related services. We continually strive to maintain a balance of providing new technology at reasonable costs. To achieve success, we pledge to institute creative programs of efficiency and quality controls, while maintaining sound business principles. We hold the customer at the center of our efforts and their satisfaction as our mission.
A major initiative in the past year was the start-up and first year operation of a new networked print-on-demand service. The July 2000 purchase of a Heidelberg/Danka 9110 digital networked printer concluded an extensive request for proposal process. The final equipment acquisition was the culmination of a two-year overhaul of our print production environment. This addition to our service completes the installation of the latest technology in the areas of electronic order production and distributed course materials. This new system will serve not only current needs but its open architecture also provides flexibility for future growth and direction. The final configuration has resulted in MIT becoming a model for other colleges and universities undergoing the difficult retooling of their print environment.
The Copy Technology Centers were pleased to continue our involvement with the Environmental Programs Task Force at MIT. Serving as a key member and consultant to related environmental issues, our department was happy to present a report in December 2000, detailing a dramatic changeover in recycled paper usage in our operations. Our department went from minimal recycled usage to a complete changeover of recycled paper. As the single largest purchaser of copy paper on campus (36 million sheets annually), the switch to recycled paper markedly affected overall MIT usage, and sent a strong signal to the community that green procurement was a vital Institute initiative.
The past year saw continued strength in the course reader service. The spring 2001 semester saw an increase of 11 percent in the number of courses offering supplemental material. A combination of experience, technology, and active communication with academic departments has allowed for more accurate print runs. In addition, the ability to scan and store electronic images enables us to print-on-demand for individual student requests. The result is a decrease in waste due to overruns and substantial savings to departments for the cost of unsold readers.
The Copy Technology Centers were active the past year in exploring and developing strategic partnerships. Internal partnerships are critical to open communication lines with MIT departments that jointly affect the quality of service to the community. External partnerships involve opportunities to remain current with the ebb and flow of technology during these unstable times. We will continue to investigate new methods of service provision. We will actively work with internal partners to enhance or introduce improved processes. Some examples of these partnerships include the following:
- The Copy Technology Center worked with a select group of MIT service providers in forming the MIT Enterprise Services under the direction of Stephen Immerman. As a member of this group, we are committed to find areas of common strengths and services to the benefit of the MIT community. By actively exploring ways of sharing resources, combining skills, and exchanging ideas, the Enterprise group has a goal to present a collective set of diverse services while following a standardized set of administrative processes. This collaborative effort will focus on integrating the member departments into a seamless provider of key services to the Institute.
- Copy Technology Centers and Mail Services combined to present a number of workshops to the MIT community this past year. Through Institute-wide workshops, as well as in small departmental presentations, the goal was to clarify the process of designing, producing, and mailing community projects. These well-attended meetings worked to eliminate confusion and problems by openly explaining the process from creation to final step. The resources of both departments were on display for customers to seek advice and practical examples. These efforts are scheduled to be continued and expanded this coming year.
- Our department worked closely with the Sloan School of Management on a distance-learning project during the past year. The process of students ordering supplemental course materials from all parts of the world was put into practice with positive results. Through a working relationship with departmental contacts, many of the problems associated with this new area of service were eliminated. The success of the program will lead to an expanded effort this year.
- A key partnership continues with Information Systems. Our department has become the hardcopy source of documentation requests integral to the Institute efforts in SAP and Athena. Interested community members can order online and receive a diverse selection of documents on SAP. Students have the opportunity to acquire paper copies of supporting Athena documentation at selected locations. By these examples, we can adjust and advance the methods of providing information to members of the MIT community.
- Members of our department played key roles in projects involving the departments of Information Systems, Procurement, Publishing Services Bureau, and Human Resources. The Procurement Department project involved an in-depth examination of copier acquisitions on campus, the results of which will lead to a new and simplified process. Information Systems called on a staff member to work on an in-depth analysis on its mainframe printing process and its future direction. The Publishing Services Bureau's project to research, design, and introduce a new MIT watermarked bond was accomplished with key advice and participation of our staff. Another staff member played a committee role in the newly introduced Rewards and Recognition initiative that is sponsored by Human Resources.
- The Copy Technology Centers cautiously explored and researched partner opportunities with outside service providers during the past year. A number of initiatives involving web submission and document management were tested and analyzed. Some turned out to be less than acceptable while others remain viable future partners. The current technology atmosphere has weeded out a number of companies and the next year will provide a better picture of the strength of those still remaining. We continue to actively seek creative partner solutions in the areas of web submission and document management. One initiative being explored involves sharing the costs of developing software solutions among partner universities. Mutual efforts between ourselves, Harvard University, and other potential schools may allow for common solutions to be developed and shared among the consortium. This effort will be examined in depth this coming year.
The future goals of the department will be shaped by technology and service delivery. Our industry has undergone numerous technology shifts, and adaptability is key to future success. We have put our systems in a highly flexible state through careful and well-researched acquisitions the past two years. We feel confident that our position allows for the changes that are sure to come. We will remain open to new business processes as well as actively participating in efforts to make the current ones more integrated within overall Institute planning. We will also pledge to improve on methods of service delivery. Whether dealing with a single customer or dispensing information around the world, our goal is to do it consistently, understandably, in a timely way, and with a professionalism that the MIT customer deserves. We will aggressively train our staff and use available systems to measure performance and advancement of these goals. The Copy Technology Centers maintain a pledge to provide the most efficient and cost effective services to the MIT community.
Institute Copier Program Manager, Kip Bruggeman, was cited for key involvement in two Institute projects.
Marketing Manager, June Milligan, was co-recipient of the first Infinite Mile Service Award for the Enterprise Services group.
More information about this department can be found online at http://web.mit.edu/ctc/www/.
For the third consecutive year, Endicott House maintained a positive cash flow position, with the department returning $240,000. Although equal to the previous year's results, the department incurred $41,000 of additional non-operating expenses. Charges include a property appraisal, legal fees for acquiring Weld Pond and administrative overhead charges. Excluding the above charges, a $281,000 cash flow would have been realized. Commitment to guest satisfaction, effective marketing programs, strong financial management, and maintenance of the physical plant were contributors to the department's achievement.
MIT bookings for FY2001 remained level with FY2000 generating a 25 percent increase in MIT revenues. Revenue increases are a reflection of marketing efforts to capture larger MIT events. Total bookings reached 467, reflecting a 7.5 percent increase over the previous fiscal year. Overall the department generated total revenues approaching $3 million. For FY2002 a 6.5 percent growth is expected with a majority coming from the MIT community.
The most important measure of the department's success is meeting the goals and expectations of our client base. Again this year, food quality, guest service, staff commitment, and operational flexibility ranked excellent. Meeting the changing and growing needs of our client base is, and will continue to be, an ongoing focus.
In order to meet the future conference and special events needs of the MIT community, expansion plans are under development. A market survey completed last fall outlines a need for additional guestrooms, increased meeting space, recreational facilities, and larger banquet space. The project will be implemented in phases over the next five to eight years. The first phase will be to upgrade and renovate the kitchen facility with construction scheduled for the winter of 2002.
Marketing efforts under contract with Conference Center Consulting Group continue to play an instrumental role in the department's financial success. A number of outreach efforts to the MIT community were undertaken, highlighted by offering shuttle service to and from campus in collaboration with MIT Parking and Transportation.
In the external arena, direct mail, and telemarketing provide the strongest yields. The external client base developed over the past four years includes meetings of upper management, sales training, senior officer, and professional associations. As with the previous three years, day meetings have made a major contribution to the overall success. Promotional activities primarily include several on-site client events, participation in three trade shows, and an exhibit at the New England Flower Show. This year's exhibit resulted in the team receiving six prestigious awards.
Reinvestment in the physical plant and property for FY2001 totaled $200,000 in accordance with our ten-year capital plan. Projects included replacement of the Main House boiler, new dining room chairs, custom bar/beverage station, public space air conditioning, barn complex carpentry and painting, laundry equipment, and a plowing vehicle. Attention was placed on reclaiming garden areas surrounding the Main House and Brooks Center resulting in four new garden areas. Additionally, grounds equipment and tools were acquired from the Coolidge Estate at no monitory cost.
Goals for FY2002 are to continue to build on our financial stability, increase usage by the MIT community, provide excellence in guest service, and enhance the facilities. These and our continued achievements reflect the dedication and commitment of the Endicott House staff.
More information about the Endicott House can be found online at http://web.mit.edu/endicott-house/.
The Environmental Health and Safety (EHS) Office's primary responsibility is to provide EHS services to MIT's departments, laboratories, and centers (DLCs). The EHS Office supports the Institute's accountability for EHS legal compliance and positive health and safety initiatives, as well as environmental sustainability initiatives, to ensure the health and safety of the MIT community and the public and to protect the environment.
The single EHS Office was created in February 2000, when the Environmental Medical Service (including the Industrial Hygiene Office, Biosafety Office, and Radiation Protection Office), the Safety Office, and the Environmental Management Office were combined into a single EHS organization-the EHS Office. In FY2001, the EHS Office made a single telephone number available to the MIT community, 2-EHSS. This number eliminates the need for members of our community to determine whom to call for EHS service. The EHS Office also completed plans to collocate in early FY2002 in Building N52. While professionals in the EHS Office have retained their principle areas of expertise (e.g., environmental compliance, hazardous waste management, hazard assessment, and emergency preparedness and response; biosafety; industrial hygiene; radiation protection; and fire and life safety), we are shedding our separate department distinctions and broadening our base of EHS expertise to provide even better service to the MIT community. Lou DiBerardinis is directing the new EHS Office.
The EHS Office reports to the Environmental Programs Office (EPO), headed by the Managing Director for Environmental Programs. EPO oversees the EHS Office and establishes its direction and priorities. William Van Schalkwyk was promoted to a directing role within the EPO. The EPO works with the Environmental Council, the Institute Committee on EHS, and MIT's academic, research, and administrative leadership to develop EHS policy and sponsors and coordinates positive EHS initiatives among many constituents of the MIT community.
MIT Settlement of U.S. EPA and Justice Department Settlement
On April 18, 2001, MIT successfully settled a U.S. Environmental Protection Agency (EPA) and U.S. Justice Department (Justice) enforcement action resulting from a May, 1998 broad campus inspection, with MIT, EPA, and Justice signing a Consent Decree. On June 18, 2001, the Federal District Court approved the Consent Decree. EPA and Justice alleged numerous violations of the Resource Conservation and Recovery Act (RCRA, the federal hazardous waste management act), as well as violations of the Clean Water and Clean Air Acts, relating to container labeling, storage, inspection and other waste management requirements, training, monitoring and recording-keeping in research operations and at MIT's incinerator and oil storage facilities. There was no actual harm to the environment. EPA issued a letter to MIT with the Consent Decree praising MIT for its proactive response to the inspection. EPA noted that the many operational improvements as well as campus "green" initiatives which have been implemented, demonstrate MIT's commitment to environmental stewardship, and go beyond Consent Decree requirements.
The Consent Decree requires MIT to pay a $150,000 cash penalty and to undertake $405,000 of beneficial Supplemental Environmental Projects. More importantly, the Consent Decree requires MIT to make numerous improvements in its environmental operations, accountability systems, and management and organizational infrastructure, both locally in DLCs and centrally in MIT's EHS Office. EPA, Justice, and the Federal Court will oversee MIT's environmental operations, both centrally and in DLCs, until all Consent Decree Requirements are satisfied-for about five years.
MIT EHS Management System
One of the most significant Consent Decree requirements, which MIT proactively began in FY2000 and continued to pursue in FY2001, is the design and implementation of an environmental management system at MIT to more systematically manage environmental compliance, as well as toxic use reduction and environmental performance across the Institute. Commercially available management systems generally rely on central command and control, aren't designed to respect the independence of research, and won't work at MIT. To avoid EPA's usual requirement that a typical management system be implemented in nine months, MIT convinced EPA to give us more than four years to design and implement a comprehensive and integrated EHS Management System that respects the independence of research and teaching, creates better EHS accountability, and improves EHS legal compliance and good practices at MIT. (There are interim deadlines for components of the management system ranging from three months to three or four years.) By providing one approach to environmental health and safety management, DLCs will have one management system for these closely related subjects. EPA expects this MIT EHS Management System to be a model for academic research institutions. It will be implemented centrally in the EHS Office and locally in all DLCs.
The MIT EHS Management System design and implementation are being overseen by an Ad Hoc Subcommittee of the Institute Committee on EHS, co-chaired by the Vice President and Dean of Research and the Managing Director for Environmental Programs and Senior Counsel. Representatives of many DLCs, EPO, the EHS Office, and many administrative offices serve on the Subcommittee. Additional representatives of DLCs and other MIT constituencies serve on Working Committees, which are developing options and recommendations for components of the EHS Management System. These Committees, EPO, and the EHS Office will be reaching out to the broad MIT community to provide updates and receive input. The EHS Office supports this work and will be the stewards of the system once it is completed.
A discovery process to identify software needs for the system and possible solutions was completed in FY2001. The Information Systems Department led this process, which involved members of the EHS Office and some DLCs.
Supplemental Environmental Projects
MIT is undertaking three Supplemental Environmental Projects (SEPs) under the Consent Decree. The SEPs, all of which were commenced in FY2001, are an environmental education and projects program with the Cambridge Public Schools, which is being managed by the MIT Program on Environmental Education and Research as well as the EHS Office; a "Virtual Environmental Campus," a web-based environmental compliance and operations tool, which graphically depicts good practices on a typical campus; and an environmentally beneficial biofiltration stormwater management system at the Stata Center, presently under construction.
Succession in Radiation Protection Leadership
After a distinguished 40-year career at MIT, Frank Masse retired at the end of FY2001. Although Frank continues to consult to the EHS Team and to make important contributions to the radiation protection program, new leadership has succeeded his tenure as head of radiation protection programs at MIT. Mitchell Galanek assumed the role of head of radiation protection programs on campus. Frederick McWilliams assumed the role of head of radiation protection programs at the Research Reactor. Gerald Fallon assumed this role at Bates Linear Accelerator.
Additional Service and Program Improvements
The EHS Office upgraded MIT's Occupational Safety and Health Administration (OSHA) Hazard Communication and General Safety Standards program, worked with DLCs to amend their OSHA Chemical Hygiene Plans to incorporate appropriate information on hazardous waste management under RCRA, and upgraded MIT's Department of Transportation regulatory program.
Support of Research Experiments
The Bates Radiation Protection unit of the EHS Office supported Research at Bates in FY2001, including two important experiments, the Virtual Compton Scatter and the Compton Polarimeter. This unit modeled and evaluated shielding requirements, established monitoring during experiments, and designed and evaluated interlocking requirements. The Research Reactor Radiation Protection unit supported research at the Reactor, including by providing advice on irradiation procedures, activity estimates and experimental design and protocols, and negotiating the acquisition of equipment from Brookhaven National Laboratories.
The EHS Office offered enhanced, web-based EHS regulatory training in FY2001 through a third hazardous waste management module and an enhanced chemical hygiene module. The EHS Management System will address regulatory and good practices training. Modules which can be flexibly combined to create custom training programs will maximize the relevance and minimize the time spent in training. Although core content on each subject matter will be uniform, DLCs will be able to choose delivery options (e.g., web-delivery, in-person presentations, or videotape delivery) that work best for them.
Two experienced and highly qualified safety professionals assumed leadership roles in the safety unit of the EHS Office. Joe Pinciaro was promoted to the role of Deputy Director for Safety and Peter Bochnak assumed the role of Senior EHS Officer, concentrating on Safety but also on broad EHS initiatives. Under their leadership, the EHS Office worked with the Facilities Department to develop protocols for fire safety in renovation and construction projects.
Integration of EHS Consideration Capital Project Design Project
The EHS Office developed guidelines, "Best Practices for Project Managers and Designers" to assist the Capital Projects group in recognizing and addressing a full range of important EHS issues during design and construction of new and renovated buildings. This effort complements the "Green Building Initiative" summarized below. Plans for 24 major construction projects and 350 renovation projects were reviewed for EHS considerations within the context of the overall goals of the projects. The EHS Office also secured expert environmental consulting services to support capital projects at favorable rates.
EHS inspection programs (including those for laboratory fume hoods, asbestos, and hazardous waste storage areas) were upgraded through the use of hand-held computers for some data collection. Medical surveillance of animal handlers also was converted to an electronic system to provide for more efficient and timely processing and record keeping.
Enhanced Emergency Response/Consolidated On-call System
The EHS Office worked with colleagues in other emergency prevention and response departments and the Director of Public Safety, Managing Director for Environmental Programs, and Director of Enterprise Services to systematize and upgrade MIT's overall emergency response approach.
The newly consolidated EHS Office also developed a consolidated on-call system for EHS emergency response. This system provides MIT's emergency response operations center with a single lead on-call EHS professional. The lead on-call EHS professional has four additional on-call EHS professionals as back-up, covering all EHS disciplines, seven days a week, 24 hours a day. This approach provides one point of contact for emergency responders on all EHS issues, and places the burden of delivering the appropriate scope of coordinated EHS response on the EHS Office rather than on the emergency response operations center.
EHS Cross-Training and Client Service Training
All professional EHS staff received broad EHS training to supplement their primary areas of expertise in FY 01. This broad training will allow each EHS Office member to provide more comprehensive service to DLCs, while also making better use of our staff resources and providing enhanced career opportunities to professional EHS staff.
The entire EHS Office also participated in client service training in FY01 to enhance their ability to serve the MIT community. Five principles were reinforced: professionalism, client service, teamwork, sustainable approaches, and accountability.
Positive EHS Initiatives—"Green Campus Initiatives"
In FY2001, the Environmental Programs Task Force, sponsored by the Managing Director for Environmental Programs and comprising representatives of the Facilities Department, the Campus Activities Complex, the Copy Technology Centers, the Publishing Services Bureau, the Procurement Department, Dining Services, the Executive Vice President's Office, Residential Life, and the EHS Office, led a number of campus "green" initiatives. These include MIT's recycling program, green procurement program, and food waste composting program. The Green Buildings Task Force, sponsored by the Managing Director for Environmental Programs and the Director of Facilities, with leadership by Professors Leon Glicksman and Leslie Norford and Dean of Architecture William Mitchell, and comprising representatives of MIT's Capital Building Program, Facilities Department, EHS Team and EPO, lead the development of long-term goals to reduce the campus' impact on the environment. The significant accomplishments of these Task Forces are summarized below.
From January 2000 through December 2001, MIT's total recycling rate increased from approximately 10.5 percent to 20.3 percent. The scope of recycling was expanded from white paper only, very limited newspaper, glass, aluminum, limited plastics and yard waste, to all types of paper, cardboard, magazines and newspapers (desk-side in gray bins and in blue-topped bins in many common areas) and glass, aluminum and plastics 1-7 (in green-topped bins in many common areas), yard waste, computer equipment, metal, and wood. MIT's custodial staff, members of the Environmental Programs Task Force (EPTF), and broad participation by the MIT community were instrumental in the success of this effort. The EPTF also welcomed Recycling Liaisons representing DLCs across the Institute. The Recycling Liaisons joined in the Task Force's efforts by encouraging their colleagues to participate in recycling and other green campus programs. The Recycling Liaisons are critical to further increasing community participation.
Food Waste Composting
Dining Services and the EPTF initiated a food waste composting program in Walker Memorial and two dormitories. Over four tons of food waste per month was composted. This program is being expanded to other large dining venues on campus.
Green Goods Procurement
The Procurement Department, Copy Technology Centers, and EPTF led a green goods procurement program, focusing on the largest volume goods procured on campus-paper products. From calendar years 2000 to 2001, MIT's procurement of green or recycled products increased by 21 percent overall. The Copy Technology Centers increased the use of 30 to 50 percent recycled-content, process chlorine-free white paper from less than one percent to 100 percent. (Specialty recycled paper use increased from 10 percent to 90 percent.) The Purchasing Department, Information Systems, Athena Clusters, and a number of other departments also converted to recycled-content stocks, resulting in MIT's overall use of recycled paper reaching more than 64 percent.
Green Building Goals
The Green Building Task Force developed 10 draft long-term goals for reducing the environmental impacts of campus operations and building construction and renovation. These are energy conservation; greenhouse gas reduction; improved indoor environment; improved urban environment; increased recycling and conservation of materials; keeping total energy consumption constant even as campus facilities expand; reduced consumption of materials and resources (including office supplies, laboratory supplies, and water); reduced hazardous waste streams; reduced total campus emissions including emissions from transportation; and supporting community and regional sustainability efforts. These draft goals are being incorporated in the Facilities Department's capital project program, and are intended to be finalized in FY2002.
Stormwater Design Contest with EPA
The EHS Team designed and began implementing a stormwater management system design contest focused on solutions for residential properties, as part of EPA's Clean Charles 2005 Initiative. The overall Initiative's goal is to make the Charles River fishable and swimmable by 2005. MIT is designing the contest with EPA, and will be offering an $8,000 prize for the winning design and $10,000 for implementation.
Other Regulatory Interactions
There were no formal EPA, Massachusetts Department of Environmental Protection, or OSHA inspections of MIT in FY2001.
The Massachusetts Water Resources Authority notified MIT that our utilities plant (operated by the Facilities Department) was one of only a few facilities without significant violations in 2000.
The Nuclear Regulatory Commission inspected the Research Reactor twice during the year. There were no violations. The Massachusetts Department of Public Health inspected the campus' radiation protection program under its license as well. There were no violations, and inspectors praised MIT's program.
The EHS Team worked with the Cambridge Fire Department on emergency planning procedures and conducted radiation safety, chemical and biological hazards, and air sampling training for the Fire Department's Hazardous Materials Response Team. Members of the EHS Team also participated on the Cambridge Local Emergency Planning Committee.
Like the "shot heard around the world," construction can be felt all over MIT and what follows will revolutionize our environment. The major building initiative currently underway is expanding and dramatically changing the campus. When completed, it will feature five new buildings designed by the premier architects of our time. The Department of Facilities is honored to be the leader for this initiative.
In order to undertake this extensive building program, our department increased in staff from 560 to over 600. The Capital Projects group, charged with implementing the task, joins the other areas in Facilities that serve the MIT community in a variety of ways: Custodial, Design and Construction, Grounds, Mail Services, Repair and Maintenance, Recycling, and Utilities.
In addition to the building boom this year, also notable was the settlement reached by our Utilities section with NSTAR Electric over disputed costs related to the cogeneration plant dating from 1995. A payment of $1.7 million was received, representing partial refund of our Customer Transition Charge tariff payments made from 1995 to 1997.
A major focus of the Department of Facilities was the execution of its strategic goals: Improve Customer Service; Enhance and Protect MIT's Assets; Design, Build, and Deliver $800 Million in Capital Construction; Make Continuous Process Improvements; Meet MIT's Commitment to be a Model Environmental Citizen; Develop the Individual and Organizational Capability Needed for the Future. In April, members of our Operational Leadership Team joined the department's assistant directors for a session with the Executive Vice President. The purpose of the meeting was to align our efforts with the five administrative themes that he had outlined last year.
Administrative Theme Initiatives
In response to the Administrative Advisory Council's "hot button" issues, Facilities hosted a series of lunchtime forums aimed at educating customers on our services. Topics included: custodial services, recycling, energy conservation initiatives, ordering services electronically, and space planning and reconfiguration. The response to the series was so strong that additional forums will be held during the coming year.
Working with Controller's Accounting Office, Internal Audit, the Office of Sponsored Programs, and the Office of Budget and Financial Planning, we developed and documented a new approval process for Capital Projects. With help from Financial Systems Services, we also developed an invoice tracking system for Capital Projects that has been extended to include Design and Construction Services. These examples show how, in the past year, we have implemented new financial practices and improved existing ones in order to provide clearer, more concise, and timely information for decision makers who rely on us.
A project prioritization methodology developed by MIT's Department of Nuclear Engineering was modified for use in our Infrastructure Renewal Program. This was a collaborative effort between Professor George Apostolakis, his graduate student, Dr. Richard Weil, Dr. Dimitrios Karydas of FM Global, and Facilities' Infrastructure Renewal core team. The Facilities' core team members also collaborated with Judith Stein of Organization and Employee Development to create a project selection process.
The fourth annual report addressing infrastructure renewal, Infrastructure Renewal at MIT: Planning, Persistence, and Improved Communication, was published in February 2001. Fifteen million dollars was allocated this fiscal year for infrastructure renewal projects. Projects of special note include Phase II of the Residential Life Fire-Safety Systems Renewal Program and Phase II of Fire Alarm, Sprinkler, and Lab Ventilation Upgrades for Building 13.
As construction causes disruption on campus, we are aware of the importance of preserving green space for our community. As part of the campus beautification initiative, begun in FY2000, our Grounds Services area coordinated the development of a new garden and seating area in the inner courtyard outside Building 6. This secluded space, underutilized for many years, now provides a quiet place to relax and enjoy the outdoors.
As a result of benchmarking efforts with both educational institutions and private industry, we now know that our custodians clean 33 percent more square footage than the industry standard. This has led us to modify some custodial processes in an attempt to develop a staffing plan that could enhance the cleanliness of the campus. The plan, when approved and implemented, is expected to address many of the current cleaning issues on campus.
The department is committed to integrating environmentally responsible development practices into its building ventures. These practices propose the creation of well-designed buildings and site environments that are healthy to occupy, effectively use natural resources, and are economical and durable. To ensure their implementation, the department has rewritten its design specifications book to include these practices. The new MIT Code of Design Practice, due to be released in September, revisits all construction practices and highlights "green" technologies within each building system.
In February, the department began collecting data from members of the MIT community on their satisfaction with our services through a customer survey. The results of that survey have given us a focus on which areas of the campus require additional attention in regard to cleaning and repair and maintenance. Also, our Design and Construction area initiated a customer survey upon completion of renovation projects. The data collected from these surveys will be useful in future remodeling and space changes.
We were quite proud when the International Publishing Management Association (IPMA) awarded the 2000 Mail Center of the Year honor to our MIT Mail Services. The award recognized MIT for outstanding improvements in the areas of new technology, cost savings, and processes. The IPMA Awards/Honors Committee stated that "MIT was selected as the winner because of its dramatic improvements in the overall mail operation."
Several members of our staff were presenters at conferences and symposia this year. At the Build Boston forum in November, the team working on the fire-safety improvements.
The Capital Projects Group, established last year, has built a strong and effective construction management function necessary to handle MIT's current building program. The team consists of experienced, capable professionals, including planning, design, and construction project managers, various specialists, and administrative support staff.
During the past year, they have managed six projects under construction, 10 in the design phase, and numerous in the study phase. In addition, several milestones were accomplished, including the permitting of five major projects, two groundbreakings, and three new and significant architect selections.
A huge effort such as this building program requires that a solid reporting and tracking system be established. The seasoned members of the group were able to enact a formal decision-making structure for capital project approval and reporting procedures to maintain strong oversight and accountability. The group also developed an overall construction program budget and a schedule-tracking function with projection capability. In addition, the group wrote a procedures manual for project management, budget and schedule tools, and updated design standards.
In order to minimize disruption to the community and to keep people informed, Facilities has launched both a construction impact mitigation program and a comprehensive communications effort. In the fall, a construction web site was established and weekly updates continue to be published in Tech Talk and The Tech. This August, an expanded web site is scheduled to launch.
Work continued on the following major projects during the year:
- The Ray and Maria Stata Center for Computer, Information and Intelligence Sciences. Design development proceeded, while construction continued on the underground garage. Construction of the slurry wall was completed in October 2000. The reinforced concrete structure for the below-grade facilities should be finished by September 2001.
- Excavation began on Simmons Hall, a 10-story undergraduate dormitory on Vassar Street in October. The dormitory was designed to include space for activities to support and enhance student life. The award-winning design features 10 atria, an exercise room, study areas, a cafeteria, and a multi-purpose room. The project is on schedule for fall 2002 occupancy.
- Construction of Phase I of the Albert and Barrie Zesiger Sports and Fitness Center began in September and will complete MIT's 25-year athletic and recreation plan. This first phase includes a 50-meter Olympic pool and instructional pools with spectator seating for 500, a health and fitness area, six squash courts, a multi-activity court, administrative offices, and renovated general and team locker rooms. The schematic design is complete for Phase II of the project, which will eventually replace Rockwell Cage and provide additional athletic facilities. The project is scheduled for completion in June 2002.
- 224 Albany Street, the conversion of Building NW30 from an early 20th century mill building to efficiency apartment-style housing for 120 graduate students began in July 2000. Kitchen facilities, sleeping alcoves, and individual baths will be provided. Construction is scheduled to be completed in August 2001.
- The construction of student housing at Sidney and Pacific Street., which began in January, continues on the fast track. The steel structure is almost complete and the building, which will house approximately 700 students, will be occupied next summer.
- The installation of underground utilities at Vassar Street to support the Stata Center, Building NW30, the Zesiger Sports and Fitness Center, and Simmons Hall continues. Water mains in support of Simmons Hall are installed to the east end of the site. Chilled water, fire protection water, telephone and electric duct banks are progressing west from Steinbrenner Stadium to Audrey Street. Telephone and electric duct banks are complete to NW30 while the chilled water is scheduled to be completed this coming summer. Steam piping is installed from Massachusetts Avenue west to Building NW13 and will be placed over the roof at NW13 and NW14.
- The multi-phase renovation of the Dreyfus Chemistry Building, Building 18, continues. During this infrastructure renewal project, all labs, support, and office spaces will be renovated in vertical phases from one end of the building to the other while the building is two-thirds occupied. This project will provide a more efficient, safe, and code-compliant layout; address energy conservation issues; and will repair and upgrade the exposed concrete skin. Expected completion is summer of 2003.
The Media Lab extension project design development continued. Master planning for the expansion to the Sloan School/School of Humanities, Arts, and Social Sciences in the East Campus began. Design development also is underway for the Vassar Streetscape project.
Architectural selections were made for the Sloan/SHASS expansion and the Brain and Cognitive Science Center (BCSC). Schematic design on the latter began in June 2001. This complex will house the McGovern Institute for Brain Research, the Department of Brain and Cognitive Sciences, and the Center for Learning and Memory, as well as space for the Division of Comparative Medicine. Program planning for BCSC began in late summer 2000.
Design and Construction
Design and Construction (DCS) finished the second phase of renovations to Building 45. The scope of this work essentially completes the remodeling necessary to accommodate the growing needs of the Capital Projects and Design and Construction groups. Through a co-location in Building 45, Facilities' oversight of all design and construction activities has led to improved coordination of both large-scale and small-scale construction projects.
This past year, DCS and Repair and Maintenance (R&M) created a position of Shutdown Coordinator to provide dedicated attention to the growing number of system shutdown requests required by renovations. William Homeyer, Jr., a heating and ventilation mechanic in the R&M area of our department for several years, was hired to fill this position. Because of his knowledge of the Institute and experience in Facilities, he made a very smooth transition to DCS. As a result, the position has been extremely successful and has resulted in greater control and predictability to shutdowns and has helped to minimize inconvenience to the MIT community.
Highlights of the year in the Design and Construction area included retrofitting of the Bechtel Lecture Hall, Room 1-390, with state of the art distance learning capabilities and completion of work to accommodate the Center for Learning and Memory in Buildings E17 and E18.
In addition, two classrooms were completed on the first and second floors of Building 1. These rooms feature data and power distribution. Feedback from professors regarding the new "touch screen" lighting and audio-visual controls has been very positive. These rooms reap the benefits of air handling equipment installed in the prior year's campaign. In the past, classroom renovations generally created a need for dedicated air handling units.
The William Barton Rogers building's entrance is undergoing improvements. The Information Center in Building 7 was renovated in the spring, greatly enhancing MIT's "front door." The refurbishment includes a contemporary design with a central service desk. In addition, work is currently underway to restore and clean the masonry in Lobby 7 and is anticipated to be completed in the fall.
Design and construction is ongoing for a small distance learning facility in Building 8 and a state of the art lecture hall on the third floor of Building 3, both of which will add to MIT's distance learning initiatives.
In addition to the specific projects noted above, DCS completed approximately 80 space changes of various sizes and numerous smaller interior design renovations, as well as a number of ADA-accessibility projects.
Finance and Accounting
The volume of construction on campus has changed the way the department does business. We have improved our vendor selection and documentation procedure while establishing more interactive relationships with departments whose work aligns with the construction process. We also have cultivated strong working relationships with the diverse new group of planning and construction professionals now working in the capital construction area. This combination of efforts is making it possible for us to integrate financial practices while maintaining strong accountability. In addition, operation of our core business units has been enhanced to meet known needs of the Institute community as well as looking for ways to anticipate needs that have not been articulated.
Our focus on improving the quality and timeliness of information provided to clients continued in FY2001. Paying greater attention to the needs of clients has had an impact on the operation of our business units and has offered an opportunity to make changes in our financial practices. To improve reporting for client services, we first redistributed workload, streamlining the data input process. To improve visibility and encourage interaction with clients, representatives of the Facilities Finance and Accounting group attended our departmental series of customer forums. Through this venue, clients are able to have more complex conversations about processes, which results in an environment that fosters collaboration. Recently, we posted a new reporting tool on the Data Warehouse web site that allows clients easier access to internal orders. We continue to look for ways to improve our purchasing and vendor payment process, which also affect client accounts.
SAP training continues to be a major focus. This year, the Facilities Learning and Performance Team developed a class on SAP reporting that was specifically designed to meet the needs of project managers.
The Information Technology (IT) group continues to support the wide range of departmental activity. Among the outstanding issues addressed in FY2001 were SAP enhancements, a major upgrade to the Maximo work-tracking system in the Repair and Maintenance group, and unprecedented staff growth and a resulting increased demand on the time and resources of the group. Frameworks, a new system for managing the paperwork associated with construction projects, was implemented. The team continued to provide training and support for these and other applications.
Several enhanced PC and Macintosh programs have been developed for use by Facilities employees. The Maximo system was prepared for rollout to the Office of Residential Life and Student Life Programs.
The department has upgraded its local area network environment with new servers and upgraded hardware. We continue to work to address local area networking issues related to our moves to Buildings NE20 and 45.
Efforts to keep the interiors and exteriors of our campus pleasant and appealing continued during the past year. These include replacement of drapes in E53, replacement of carpeting in the Grier Room as well as the W34 Lobby, repair and refinishing of the Barker Library floor, and indoor and outdoor garden enhancements to numerous locations.
Building Services created educational materials for our customers outlining their services and quantifying how often and what types of cleaning are done. This topic was featured at the first of our customer forum series.
A current reorganization underway in Repair and Maintenance (R&M) separates the unit into two functional areas: structural services; and mechanical, electrical, and plumbing services, with a manager dedicated to each section. The Zone operations will remain essentially as they are but will report to the Director of Operations for the next year. The Director and the two R&M managers will work closely to ensure continuous customer service and process improvement.
Through Maximo, Facilities' work order tracking system, we tabulated that 37,000 repair and maintenance work orders were completed, a nine percent increase over the previous year. In addition, through Maximo, we implemented an automatic response system so that customers are now immediately notified via email when a job has been completed.
Due to an increase in volume of special events on campus, we replaced and updated electrical supplies and equipment to better and more reliably serve the MIT community.
Administration of services at the Bates Linear Accelerator Complex in Middleton, MA is now provided by a private management firm located close to the complex but under the guidance of Department of Facilities personnel. Contracting for service has allowed us to more efficiently manage the facility and bring greater technical expertise into the complex. The distance to Middleton from the Cambridge campus has always presented a challenge in providing good facility services. Local management provides improved resources while department oversight ensures the operation is consistent with that of the main campus.
In an effort to remove recycling material more efficiently, two Grounds staff were hired to concentrate on the pickup of recyclable materials such as paper, aluminum, plastic, cardboard, CRTs, wood and metal, and transport them to a central location on the outskirts of campus. This process was developed to avoid multiple vendors' vehicles driving around campus to pick up material, adding to vehicular traffic. The new procedure also allows us to get the best price for removal.
Mail Services put a package tracking system into operation that can trace the progress of an item after it is delivered to one of the two receiving points on campus. This process, which parallels one used by UPS, will improve accountability and also provide us with metrics for quantifying how many employees handle a package during delivery.
Construction of Chiller No. 6, which adds 5,000 tons of chilled water production capacity to meet the cooling needs of the new buildings, was completed. Also, Phase I of the distribution expansion in the railroad right-of-way was finished in time to coordinate with the Chiller No. 6 work and the Massachusetts Avenue storm drain project. That construction by the City of Cambridge at our front door spanned the entire year and will continue for several months. It required relocation of several MIT utility crossings and continuous coordination and communication efforts to mitigate disruption to our community.
Replacement of the large condensate tank on the roof of the plant was accomplished, as was continuing renewal of steam distribution components, high voltage electrical sectionalizing switches, domestic water piping and pumps in the main group, and lab waste piping in Building 6. A fire suppression deluge system was installed for the gas turbine, mitigating loss exposure of that very expensive asset. The control system for the East Campus Chilled Water Plant (built in 1980) was replaced with current technology equipment with no plant outage. It will provide reliable and detailed control from the Central Utility Plant.
Water conservation improvements by reduction and reuse of water continue. A new central and automated landscape irrigation control system was installed with a weather station and central computer control of sprinkling software accounts for temperature, wind, humidity, solar radiation, and recent rainfall. To date, the system now controls irrigation of Killian Court and Briggs Field.
The department's environmental team tackled several issues this year including the implementation of a facilities inspection program that incorporates hand-held technology to record results. This new practice will shorten the time necessary to record safety concerns, including the storage of hazardous materials and the use of equipment. In addition, they led an effort with the Learning and Performance team to merge and customize environmental and safety training modules for each job type to maximize effectiveness of class time for recipients.
Exceptionally high natural gas prices through the winter significantly affected the energy budget, especially since MIT uses mostly gas for production of electricity, steam, and chilled water. Plant systems were configured to minimize energy use and facilitate switching to lower cost oil within the restrictions of our environmental permits. Also, we increased the frequency and sophistication of our gas price projections to keep senior management apprised of the magnitude of the budget overrun.
After several attempts over the past decade, a new shift schedule was implemented for the watch engineers who operate the Central Utility Plant 24/7. A backwardly rotating 8-hour shift, which was physiologically difficult, was replaced by a system devised by the union staff themselves: a combination of 12- and 8-hour shifts, non-rotating.
An initiative to streamline and enhance the interview and hiring processes within the department was launched. Facilities developed an internal process and electronic forms to improve communication and reduce the paperwork between our department and the Department of Human Resources. It was a successful effort that involved cooperation and understanding within our department and with Human Resources.
Members of our staff created a new hire orientation manual that will introduce new employees to Facilities as well as their specific work group and that provides overall information about the Institute. In addition, our Learning and Performance team instituted a one-day orientation program for new employees. Its purpose is to teach the basic courses including communication and customer relations and diversity. The program also includes a tour of parts of the campus.
The Learning and Performance team also is reviewing the set of internal courses currently being offered for our staff to enhance their skills and comply with both internal and external safety and code regulations. The team is expanding its computer and technical training classes as well as incorporating training on key internal procedures.
Facilities designed and implemented a plan for participation in the MIT Rewards and Recognition initiative. It consists of three levels of awards that include the Infinite Mile award ("Wonderful and Outstanding Work" Award), the Criteria Awards (to reinforce our department's strategic goals), and Director awards (overall recognition). During 2001, the following awards were given to recognize our department employees: 70 W.O.W. awards ($25 gift certificate), 10 criteria awards ($250 check), and two Director Awards ($1,000 check).
In January, Pat Kennedy Graham joined our department as Executive Administrator. Pat's experience includes 13 years at Lincoln Laboratory as an associate group leader in the Administration Division and more than five years as managing director in the consultant services environment. In addition to handling the department's personnel issues and our learning and performance efforts, Pat will look at the department holistically in an effort to coordinate functions between the service areas.
As a result of the restructuring of Repair and Maintenance, two new manager positions were created. A manager of structural services, David McCormick, started in May. A search for a manager of mechanical, electrical, and plumbing is in progress and we anticipate hiring someone to fill the position this summer.
The chief engineer of the Central Utility Plant, Charles Studebaker, announced his plan to retire in August 2001, after 20 years at MIT. This allowed an early selection process for his replacement and several months of overlap for a smooth transition to new leadership. We were pleased to appoint Arthur May as the new chief engineer effective April 2001, as an internal promotion.
A memorial service was held at the MIT Chapel on June 28 for a dear friend of the Institute. Miles Cowen worked at the Institute for more than 30 years in the Department of Buildings and Power that later became the Phyical Plant and is now Facilities. Before his retirement in 1976, he held the position of Assistant Director for Special Services in the Plant. Among his many responsibilities were preparations for Commencement. It was well known that Miles and his wife, Alice,would wash the flags and press them for the graduation exercises and Alumni Day. He will be missed by all who knew him.
The Operational Leadership Team met with the Human Resources Diversity Group to learn more about the Institute's initiatives and to share steps Facilities takes to make our group more diverse.
More information about the Department of Facilities can be found online at http://web.mit.edu/facilities/.
The Parking and Transportation Office (PTO) is responsible for the operations of the following:
- Parking Permit Allocation, Issuance and Management
- Parking Facility Management for 4,814 spaces
- Parking Violation Issuance and Management
- Subsidized MBTA Pass Program
- Saferide Shuttle Program
- TECH Shuttle
The director of Parking and Transportation provides day-to-day management of the department, and the rest of the staff are employed by Standard Parking. There are presently 30 full-time equivalent employees working under the auspices of Parking and Transportation.
The PTO is committed to providing a high level of customer service to those within the community as well to those from outside of MIT. PTO also provides effective planning to ensure the maximum usage of all parking facilities. This also includes consideration for facility placement, construction, and repairs.
MIT was awarded the 2001 City of Cambridge GoGreen Business Award in the large business transportation category. This award is given to "businesses that are leaders in promoting transportation options such as subsidizing MBTA passes, operating a shuttle bus to a nearby T stop, providing secure parking for bicycles, and allowing employees to telecommute." Jim Gascoigne of the Charles River Transportation Management Association nominated MIT for this award. The award ceremony was held on June 18th at Cambridge City Hall.
Administrative Themes Initiatives
The PTO is very interested in our customers' needs and concerns. In order to serve our customers more effectively, we use different methods to hear from them. We held a parking coordinators luncheon that brings together at least one employee from every department on campus to discuss parking allocations and other issues. We held a Transportation Fair to provide information on alternative commuting strategies and bicycle tips. We keep an email list so we can provide the community with messages concerning parking and transportation impacts. These are examples of the PTO's efforts on client orientation.
Collaboration was another theme that the PTO worked on this year. Efforts were made with Campus Police to develop and implement a successful abandoned bicycle removal program and a new service agreement. The PTO also worked with the new tenants of Building W92 to implement a parking and access program that would best benefit the occupants and visitors of this building.
The creation of a service agreement with Campus Police provides a sustainable platform, which will not be effected by personnel changes in either department. A service agreement with the Facilities department is being worked out presently.
One other aspect that these service agreements provide is accountability. With these documents, we will be able to recognize the responsible parties for enforcement, facility cleaning, and maintenance.
By following the above four themes professionally, we provide a valuable and well-positioned department to the Institute. The PTO will continue to investigate new technological and business process models to provide our services in a cost efficient and productive manner.
Parking Permit Allocation, Issuance, and Management
MIT is required by the Federal Clean Air Act of 1973, to provide parking to no more than 36 percent of the MIT commuting population. Due to this restriction, parking permits are not available to all who would like to have one. The total annual number of available parking permits is determined via an allocation system by the Parking Office each July. These allocations are distributed to each department for assignment. The local assignment of allocations provides a more flexible distribution system that accounts for special circumstances within that department.
There are currently 5,852 members of the MIT community with parking privileges, accounting for 7,819 stickers. There are 15 different parking permit types; 12 for employees and three for students. Parking allocations are done annually and take effect around September 15 of each year. All parking permits are valid from September 1st through September 15th of the following year. This means that the Parking Office issues nearly 7,000 parking stickers between August 15th and September 15th annually.
Parking Facility Management
MIT has four parking garages and 23 open parking lots. The parking garages are the Albany Garage, the West Garage, the East Garage, and the Hayward Garage. All of the facilities have maintenance needs, including capital repair projects. The PTO coordinates these projects while maintaining a level of service needed to accommodate the Institute.
The allocation process distributes parking permits throughout all of our parking spaces on campus. For this reason, the intensity of use of each location is predetermined. In most parking locations, each space is over-allocated by a factor of .1 to .5 depending on intensity of use. The PTO must also accommodate the Institute's visitors and the occasional parking users using the same spaces. Due to the uncertainty of how many visitors and occasional users will come in each day, the lots will fill up from time to time. Overall, this approach has provided the maximum use of space possible, with minimal inconvenience to our customers.
This year we lost the Pacific Street Annex lot for construction of the new graduate student residence. We also have lost portions of the West Lot, Kresge Lot, and Albany Street Lots for construction of Simmons Hall, the Central Athletic Facility, and utility improvements respectively. In total more than 600 parking spaces have been taken out of service for construction needs.
Parking Violation Issuance and Management
The Campus Police as well as the PTO issue MIT motor vehicle violations on campus. There are 13 different motor vehicle violations.
Table 3. Motor Vehicle Violation Statistics
|Violation Type||12 Mos. Issued||Fee|
|Parking Over Time Limit for Zone||435||$20|
|No Permit for this Area||9,213||$20|
|Parking in Area Not Marked for Parking||683||$20|
|Blocking Roadway, Driveway, Entrance or Crosswalk||129||$30|
|Parking in a No Parking Zone||1,031||$30|
|Parking or Driving on Sidewalk or Lawn||250||$30|
|Blocking Fire Lane or Hydrant||182||$40|
|Parking In Reserved Space||173||$40|
|Blocking Loading Zone or Dumpster||135||$50|
|Parking in Area Reserved for Handicapped||82||$50|
|Blocking Wheelchair Ramp||25||$50|
|Driving to Endanger||3||$50|
There were 12,348 violations issued during the year ending on May 1, 2001. This was an increase of 20 percent from the year before. Most of this increase is a result of construction vehicles and activity pressures on campus parking facilities.
Subsidized MBTA Pass Program
This year MIT increased the subsidy for MBTA passes for employees and students. Previously the subsidy was $10 per pass. The new subsidy is now 50 percent of cost for over 90 percent of participants. The subsidy for a Bus pass is 62.5 percent, for Subway, Combo, Combo+, Zone 1 and Zone 2 the subsidy is 50 percent, and for Zone 3 and above the subsidy is 50 percent of the face value of a Zone 2 pass.
MIT has also relaxed the eligibility requirements for this program. We now allow residential students to participate in the subsidized program. Enrollment is now over 4,000, almost evenly split between students and employees.
Saferide Shuttle Program
The Saferide Shuttle Program operates from 6pm to 3am, Sunday through Wednesday and from 6pm to 4am, Thursday through Saturday. There are currently five passenger vans, three of which are 12 passenger, and the other two are HP-accessible and can seat 10 passengers.
The vans operate on fixed routes each day of the year. There are two routes that serve Boston (East and West) and two routes that serve Cambridge (East and West). The last van is put into service during heavy demand or when one of the other vans is out for service.
All members of the MIT community are eligible to use the Saferide service. However, the vast majority of passengers are students going to and from their living quarters. The service times and routes are determined by the location of student residence houses.
Use of Saferide has significantly increased in the past few years. There has been considerable discussion to upgrade the service to accommodate the increased demand.
The TECH Shuttle was designed to provide daytime transportation to all members of the MIT community. The route operates in a loop from Kendall Square via the T stop, to Audrey Street by the Tang and Westgate residences. The shuttle runs from 7am to 7pm Monday through Friday.
The shuttle bus is owned and operated by Paul Revere, and coordinated by the Charles River Transportation Management Association (CRTMA). The PTO works with the CRTMA to determine the schedule, routes, and headways for the shuttle. MIT provides 100 percent of the cost of this shuttle that serves 200,000 passengers per year.
More information about this department can be found online at http://web.mit.edu/parking/www/.
The Senior Counsel's Office offers legal services and counseling to the MIT community on MIT matters, and also can arrange for outside legal services when needed. Our office comprises MIT's Senior Counsel, Jamie Lewis Keith, and three additional experienced counsel who joined the office in FY2001, Contract Counsel, Margaret Brill, Litigation and Risk Management Counsel, Mark DiVincenzo (who is also an experienced employment lawyer), and Environmental Counsel, Dan Winograd. We are always available as problem solvers and thinking partners. We will help MIT offices to accomplish their objectives; we strive to enable, not to prevent. We will empower areas with information so that they can balance risks and benefits, and make informed decisions. Our office's expertise includes: structuring, negotiating, and documenting major research and other collaborations and transactions (which we do with the Office of Sponsored Programs and the involved DLCs); export controls; privacy and information requests; contracts; litigation; mediation; investigations; employment and student issues; real estate and corporate law; environmental health and safety laws and permitting; and insurance and risk management issues.
The scope of clients served and matters handled by the Senior Counsel's Office in FY2001 include:
- DLCs (including the Media Laboratory) and the Office of Sponsored Programs on international research collaboration agreements and export controls;
- the Dean for Undergraduate Education and the Dean for Graduate Students on student conduct and discipline, pornography policies, affirmative action programs, contracts for services and events, employment issues, and litigation;
- Academic DLCs on employment matters, policy development, contracts, and Massachusetts and Cambridge Commissions Against Discrimination claims;
- Human Resources on a broad range of employment and benefits matters;
- The Medical Department on employment, policy, benefits, and other matters;
- The Controller's Office, Sloan Student Financial Services, and Student Financial Services on a major loan program and related contracts;
- The Facilities Department on contracts for design and construction and land-use and environmental permitting relating to a large number of new construction and renovation projects on campus;
- The Registrar's Office and DLCs on requests for student information (including "Buckley Amendment" issues);
- The Controller and Human Resources Department on tax issues, including intermediate sanctions law and policy;
- The Archives on litigation, gifts, and collections;
- Student Financial Services on debt collection;
- The Alumni Association and Events Planning Department on contracts for services and events, and dispute resolution with outside vendors;
- The Family Resource Center on proposals and contract terms for a new child care center operator;
- Lincoln Laboratory on contract and state procurement and real estate law issues;
- The Real Estate Office on real estate transactions, land-use and environmental permitting, and environmental due diligence and indemnifications;
- MIT as a "potentially responsible party" at a number of superfund sites;
- Many DLCs on legal process document handling (e.g., subpoenas and complaints);
- The Office of Disability and Residential Life and Student Life Programs on reasonable accommodations for students and employees;
- Dining Services on contracts;
- The Facilities Department on environmental consulting contracts;
- The Information Systems Department on policy, free speech, and other issues;
- The Integrated Conflict Management System Committee; and
- The Task Force on Emergency Preparedness and Response.
The Senior Counsel, working with the Director of Sponsored Programs and the Controller, represented MIT and the Media Laboratory in an initial agreement and a research and collaboration agreement with the Government of India and a new Indian company. The purpose of the undertaking is to "bridge the digital gap" and bring technology to the villages of India to support development of the social, educational, and economic infrastructure of the country and its people.
The Senior Counsel also represented MIT in its major settlement with the EPA and the Justice Department arising from a May, 1998 inspection of MIT's campus and subsequent enforcement action.
The Senior Counsel oversaw MIT's defense of a lawsuit filed by an abutter to the new student residence, Simmons Hall, on Vassar Street. The suit challenged the zoning special permit approval. She also represented MIT as legal counsel, assisting the Executive Vice President and Managing Director of Real Estate to negotiate and document a settlement agreement, which allowed the project to proceed.
The Senior Counsel's Office manages MIT's outside legal services funding. In FY2001, the Office continued an initiative with the Controller's Accounting Office begun in FY2000 to better account for and report on legal expenditures across the Institute. Legal costs can fluctuate from year to year for a number of reasons, including unanticipated litigation and other events, more or less efficient use of inside and outside counsel, and significant increases or decreases of programs. From FY2000 (the first year of the Senior Counsel's Office and of more comprehensive cost tracking), to FY2001 (when the Office gained additional experienced counsel and greater capacity to provide in-house services), the amounts paid to the largest billing outside firm were down by approximately $220,000. The amounts paid to the second largest billing firm were down $120,000. Even with an unprecedented level of real estate and other investment activity in the Treasurer's Office, resulting in an approximately $800,000 increase in legal costs for that Office, MIT's total outside legal costs increased a de minimus amount, $28,000, from FY2000 to FY2001.
The Task Force on Emergency Preparedness and Response, sponsored by the Managing Director for Risk Management/Senior Counsel and Director of Enterprise Services and comprising all MIT emergency response departments (including the EHS Office, Facilities Department, Senior Counsel's Office, Residential Life, Dean of Student Life Office, Campus Police, News Office, Medical Department, Registrar, and others) completed its work. The Task Force documented and made more systematic MIT's emergency response approach and clarified and documented the roles and responsibilities of each of the various departments in responding to five major types of emergencies. These include fires; environmental release and chemical, radioactive, or biological spills; crimes; utility disasters; floods, and other natural disasters; and severe injuries and death.
During this process, the need for an emergency response leader to coordinate the work of the different departments involved in emergency response and to be a steward of the new system, became apparent. Anne Glavin, in her new role as Director of Public Safety, assumed this lead coordinator and stewardship role.
MIT entered into a contract with the City of Cambridge under which the Fire Department will provide confined space rescue services to MIT. Some EHS Office and Facilities Department staff will be trained and will have initial and back-up response capabilities. The EHS Office will provide joint training for Fire Department and MIT confined space rescuers.
The Managing Director for Risk Management/Senior Counsel and Institute Auditor collaborated on a number of risk identification and management initiatives. The Controller and Director of Sponsored Programs also were involved. These matters included guidelines for complex transactions (including international transactions); work on intermediate sanctions issues and policies; work on controls within the EHS Management System design; and work for the Auditing Committee on their role in risk management review. MIT's Litigation and Risk Management Counsel worked with the Controller and Insurance Manager to assess risks, analyze insurance needs, and identify areas where risks may be better managed.