Streamlined property purchases among early benefits of changes to fiscal rules

Though flexibility became law in June, more significant changes likely won't appear for months

Legislation signed by the governor in June gave the University of Colorado and other higher education institutions greater control of financial operations, but significant changes to fiscal rules are still months away.

"We have taken the position that we will continue to follow most fiscal rules and procedures for the near future. This will give state officials and the Board of Regents assurances that we are not doing anything 'risky,'" said Geoff Barsch, assistant vice president for budget and finance. "We have a working group that is reviewing all of the rules related to accounting, purchasing, travel, capital construction and other areas to look for efficiencies that can be gained."

Senate Bill 10-003 gave public colleges and universities greater flexibility in setting tuition rates and in financial affairs, including purchasing and awarding contracts and buying or selling real estate. While the law's main purpose is to provide an infusion of cash at a time when state funding is decreasing, it also allows the university to make fiscal decisions without seeking state approval.

CU President Bruce D. Benson has said the law allows the university to operate more efficiently and effectively by reducing paperwork and getting rid of redundancies and delays.

The first step in the process of opting out of state fiscal rules was for the Board of Regents to approve the exemption. It did so in June, and now the university is operating under its own rules for the current fiscal year.

Employees won't notice major changes for a few months, Barsch said, but some of the immediate results of the law are a new procurement card and streamlined property purchases.

"Efficiency is gained immediately through having authority for approval within our system as opposed to waiting on approval from the State Controller or other state agencies," Barsch said.

The second stage in the process of opting out of state fiscal rules is determining ways to make university policies more efficient and making the everyday operation of the university easier, said Robert Kuehler, assistant vice president and university controller. That likely will be accomplished in the next few months.