What does this have to do with higher education finance and administration? Well, if you are like most of my college and university clients, there are long- range financial forecasts, disaster readiness plans, business conduct policies and compliance programs beckoning. These efforts seem daunting, especially since your inbox is already full, your calendar is booked and your staff is busy. But like skiing in New England, the initial obstacles soon fade when these projects yield rewarding results.

This February 29 edition of In the Know encourages you to get started and make the most of this extra day.

Happy Leap Day!

Tracy Filosa

There are always excuses. Expected and unexpected work keeps mounting, but the immediacy of the inbox does not diminish the long-term importance of planning, lucid documentation and compliance with industry standards. As I have written before, get started! Some examples:

• Articulate policies and expectations. Start writing down the accepted themes. Invite others to contribute their expertise. Compile the pieces, and before you know it you have a draft.
• Address misconduct before it becomes damaging and expensive.
• Communicate financial health and goals to broaden understanding and secure support.
• While you cannot prepare for everything, you can take steps to discuss and prepare for business disruption.

You won't immediately check all the to-dos off your list, but you will understand what they are, prioritize and formulate a plan to integrate them into the routine of your organization and, in the process, facilitate the work already underway.

Threat and/or opportunity
Getting started can yield pleasant surprises and worst case scenarios. Forward progress teaches you a lot about the nature of your task and team. If our youngest howled on the slopes, we had an exit strategy. We discovered that she was happy to be along with the pack (and should definitely wear a helmet). The link we thought might be the biggest threat to the ski trip was actually its greatest proponent.

As you begin work on these projects you might learn:

• The gift policy is understood and agreed upon and just needs to be written down.
• That although the disaster plan checklist is lengthy, many of the items have already been thought through by several departments, and they were looking for the go-ahead to work with IT on remote access and guidance regarding integration with other campus offices.
• Several departments have unsecured payment card information and the project will require extensive solutions and education.

But if you don't get started you won't know and you will not make any progress toward your documentation, planning and compliance goals.

It's worth it
"We are just too busy," is a common refrain for those putting off planning, policy and compliance efforts. A counter response: initiating these projects facilitates the work of the finance and administrative organization and raises the institutional awareness of this critical area.

Recently many finance professionals have been responding to shifts in the credit markets that have led to spikes in interest costs on certain variable rate debt instruments. The response to these complex and rapidly changing market conditions should be supported by institutional debt policies and plans that are in place that spell out when the institution will reorganize its portfolio. With these organizing principles in place the nimble organization is prepared to respond and knows how it will proceed under various scenarios. The work that went into establishing the policies up front enables a swift response to a problem and limits the costs to the institution.

While skiing is optional, planning, documenting policies and complying with industry standards are not. For many of these projects the hardest part is getting started. Once we find our way to the work we move beyond skepticism, gain momentum and are most often rewarded with progress.

Schools that enter into complex financial instruments and investment holdings should consider the risk and reward of these transactions. Sophisticated debt and investment portfolios require an infrastructure able to react to downturns and shifts in the markets. Infrastructure includes knowledgeable staff and advisors who have capacity to monitor and react to portfolio activity, and institutional policies that articulate portfolio goals and risk tolerance.

A recent article in the Boston Globe describes the impact the sub-prime credit market collapse is having on the debt portfolios of nonprofits and the swift reactions of institutional borrowers to limit the damages from this shift in market conditions.

Subprime crisis filters to Mass. nonprofits »

If you want to gain a deeper understanding of the Payment Card Industry Data Security Standards and how your institution can achieve and maintain compliance, you may want to attend the Treasury Institute for Higher Education PCI-DSS Workshop in May.

Our team from Tufts University will be presenting the multidisciplinary approach we applied to staffing and responding to the complex challenges of PCI compliance. To learn more about the Workshop follow this link:

TAF CONSULTING
TAF Consulting is a flexible, responsive consultancy that provides planning, documentation and training services to colleges, universities and other nonprofit organizations. TAF offers cost-effective solutions, so clients can access and develop industry-specific skills and expertise for their organizations.

Contact TAF or visit our website to learn more about our work and to read previous editions of In the Know.