University Times

Pitt's Business and Finance area saved the University $16.9 million during the last two fiscal years through cost cuts and revenue increases, Senior Vice Chancellor for Business and Finance Ben J. Tuchi told Senate Council Feb. 13.

Of the $16.9 million total, Business and Finance itself accrued $2.2 million in annual savings and $259,033 in one-time savings.

The rest of the savings were distributed among Pitt departments and responsibility centers (about $4.2 million annual, $291,000 one-time savings) and the general University ($7.2 million annual, $2.7 million one-time savings).

Business and Finance's annual report, available from Tuchi's office, lists dozens of examples of cost savings and revenue enhancements generated by his area. They include the following:

* Assigning a new Business and Finance staff member to collect delinquent tuition and miscellaneous receivables resulted in the recovery of over $450,000 during the last eight months of fiscal year 1993 and over $875,000 in FY 1994. It also has contributed to a reduction of $100,000 in tuition bad debt write-off in FY 1994.

* By negotiating favorable rates with natural gas utility companies and natural gas marketers, the University has saved $400,000 annually.

* The Software Site License program, established in May 1993, saved Pitt over $800,000 in FY 1994 by guaranteeing the greatest possible discounts on licensed software packages.

* Beginning April 1, 1994, the fee for an official Pitt transcript increased from $2 to $3 per copy. The change will generate an extra $50,000 annually, it was estimated.

The 28-page Business and Finance report also gives examples of improvements in customer service to students, faculty and staff; in external relations; in productivity, and in personnel development.

Business and Finance represents $119 million, or 16 percent of Pitt's total FY 1994 expenditures, according to the report.

The area's 1,505 employees represent 18 percent of the Pitt workforce; 1,303 of them (86.6 percent) earn less than $40,000; 684 (45.5 percent) earn less than $20,000, and 51 (3.4 percent) earn $60,000 or more.

— Bruce Steele