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UM System updates finance policies, puts in cost-cutting measures regarding fleet management; immediate savings of up to $2 million could result

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Christian Basi

January 11, 2018

COLUMBIA, MO – Effective February 1, 2018, University of Missouri System officials will update policies and initiate cost-cutting measures regarding the university’s fleet. The actions, which come following recommendations from a statewide taskforce, could generate immediate recurring annual savings of $1.5 – 2 million for the UM System. The UM System has been an active participant in the state of Missouri Chief Operating Officer’s Fleet Management Taskforce since October. The taskforce was designed to help manage the state’s fleet of vehicles more efficiently and effectively.

“This is just one more opportunity for us to deliver upon our commitment to be good fiscal stewards and identify administrative and operational efficiencies systemwide,” UM System Vice President for Finance Ryan Rapp said. “As the UM System representative to the taskforce, I appreciate the insights of industry experts, the leadership of Chief Operating Officer Drew Erdmann and the sponsorship of the Hawthorn Foundation to align public sector practices and share best practices from industry leaders.”

The UM System will update Business Policies regarding Methods of Transportations (BPM 22602) and Vehicles (BPM 24006), with the following changes:

  • Reduction of mileage reimbursement rate from 50.5 cents/mile to 37 cents/mile for travel by personal vehicle. This revised policy aligns with the state of Missouri’s’ current mileage rate.
  • Development of a new Trip Optimizer tool. With the assistance of the state and Enterprise, this tool will help travelers determine the most cost effective means of travel by vehicle. The tool will include two options: the use of a rental vehicle and reimbursement for personal vehicle miles. 
  • Collaborate with the state on longer-term initiatives including bulk fuel purchases, asset disposal and a fleet management system.

“The University is pleased to be part of this effort,” UM System President Mun Choi said. “As with all of our recognized cost-savings, this will allow us continue to invest further in the success of our students, faculty and staff and bring value to the citizens of Missouri through community and economic development.”

The taskforce, comprised of private sector fleet managers and industry experts looked at state practices across all state agencies including the Missouri Office of Administration, Department of Conservation, Missouri State Highway Patrol, Missouri Department of Transportation, and the UM System.  These agencies and institutions worked with private sector fleet managers and industry experts to analyze current state fleet practices and data, share best practices, and provide recommendations to improve fleet operations.

The Task Force launched in October 2017 in Jefferson City and released its summary report today. See the Hawthorn Foundation's website for additional information at: www.hawthornfoundation.org/ee-task-forces.