The University of North Carolina (UNC) is a public, multi-campus university with 16 higher education institutions that differ in size, complexity, and scope. Since 2006, the UNC system has engaged in 11 operational efficiency projects that have saved $101.2 million to date. Despite these savings, the UNC system lacks important characteristics of a comprehensive approach to operational efficiency. The system also does not use specific metrics that measure the operational efficiency of its constituent institutions and lacks a reliable funding source for these efforts. In addition, most campuses do not track savings from operational efficiency efforts. The General Assembly should direct the UNC system to develop a more comprehensive approach to operational efficiency, including adopting a board policy stating its commitment and goals for these efforts, adopting metrics to track operational performance, and improving chancellor accountability.
Subsequent Agency Actions:
- In August 2014, the UNC Board of Governors adopted a Policy on Efficiency and Effectiveness for the UNC system.
- Effective April 1, 2014, an organizational realignment was completed at General Administration to enable UNC to increase its focus on efficiency and accountability efforts.
- In August 2014, the UNC Board of Governors adopted efficiency metrics to use in funding decisions and improve transparency.