1. Basic structures for governance and business operations
(1) Board of Governors (BOG) and Board of Councilors (BOC)
Regular BOG and BOC meetings were held in May and October of 2012 and February of 2013. In the BOG meeting in May, the performance and achievements of FY2011 were reported and evaluated. Key issues were discussed in detail by both the BOG and BOC. They include: New Faculty hiring discussed at the May meeting, and technology development and transfer at the October meeting. Both were discussed in detail in combined sessions that included all the relevant sub-committees of both the BOG and BOC.
A web-based or telephone conference system continued to be utilized for the BOG and BOC meetings to enhance efficiency as well as promote active participation of governors and councilors who were in distant locations.
The CEO/President continued to exercise leadership in all matters of daily operation of the OIST School Corporation and the OIST Graduate University and ensured steady implementation of the business plan.
(2) Auditors
Auditors conducted a total of 3 periodical audits, in September 2012, January 2013 and April 2013, on all aspects of business operations. A report was prepared after each audit on the result and it was explained to the President. At the same time, it was informed to all the concerning Vice Presidents and recommended improvements of business operations.
An Auditors' Audit Report for FY2012 will be submitted to BOG and BOC in May.
Aside from the periodical audit activities, while participating in Vice President for Administrative Compliance's weekly meetings, the Auditors gathered information on the business operations from the President, Provost, and other Vice Presidents when necessary to gain better understanding of the management condition of this University.
(3) Graduate University Operations
Support for efficient and effective review of student applications, implementation of a system for managing academic courses, and monitoring student performance were implemented. This included an online evaluation system for accepting and reviewing applications, a full academic management system (“Sakai”). Major restructuring of university IT was implemented.
(4) Organization
A Chief Information Officer position was established; an Information Services Support Section for general research and administrative IT was established; and the Scientific Computing Section in the Research Support Division was strengthened with new staff with additional high speed networking and programing experience. The Scientific Computing Committee membership was renewed and the Information Services Section was strengthened with new hires in networking, helpdesk, and server maintenance. An IT Service and Support Committee was established with broad representation of organizational elements. The networking, email, data storage, internet access all underwent major upgrades to provide greater functionality, reliability and security. These developments are reflected in the updated organization chart.
OIST continued to hold regular meetings with the President/CEO, Provost/Vice CEO, Vice Presidents, and Chairperson of Faculty Assembly etc. to share information and review the status of business operations.
OIST maintained close communication with the Cabinet Office (CAO) by submitting the monthly budget execution report, by preparing and implementing the Quarterly Meetings and by participating in the Expert Panel meeting. Quarterly Meetings with the Cabinet Office took place in April, August, November and January. An Expert Panel was held in July and December.
2. Budget Allocation and Execution
Budgetary units consistent with the organizational structure of the university are established and the necessary budget allocation to implement the Business Plan to each budgetary unit was made on that basis.
The ERP core system has been established to enable the division heads and section heads to monitor their budget execution status. The status of budget execution was reported every month to the President/CEO at the monthly Budget Review Meetings in order to ensure appropriate and integrated budget management including the Subsidy for Facilities. The budget execution status report to the CAO was submitted on a monthly basis. In addition, a specific budget execution report has been introduced to monitor external funding.
OIST conducted two budget re-allocations during the fiscal year to review the predetermined threshold and properly and effectively use the available funds.
The Sponsored Research Section held a seminar on the appropriate use and report of kakenhi and other competitive grants. The section also regularly monitored the compliance of the grant usage with different rules for different funding schemes, and supported the recipients to submit appropriate reports to the funding agencies.
The Vice President in charge of compliance reviewed the appropriateness of the negotiated contracts when those expenditures exceeded a predetermined threshold (Building construction 2.5M, Goods 1.6M, Services 1.0M, Lease 0.8M).
Due to the revision of threshold for negotiated contracts from a contract amount of 1.6M JPY to 5.0M JPY, further reductions of contract amounts and streamlining of contracting procedures were promoted.
OIST conducted internal audit under the Vice President in charge of compliance, and developed human resources through sending its staff to accounting training courses provided by Ministry of Finance Accounting Center and a national school in Kyusyu to ensure proper contract, procurement and accounting procedures.
A committee consisting of external experts was held twice and the committee reviewed contracts concluded by the University to ensure proper implementation of tendering.
In addition, OIST made efforts in ensuring fair and transparent procurement through measures such as establishing a committee including external experts and having their review on specifications of large research tools/equipment for each purchase based on the University’s policy and rules.
3. Efficiency of Business Operations
(1) Appropriate and Efficient Budget Execution
Processes and data sharing for Procurement of research equipment have been reorganized to improve accuracy of information across different sections. Specific databases and weekly reports have been put in place to keep the very tight procurement schedule on track. OIST succeeded in obtaining total discounts of 82M yen in research equipment procurement, and promoted lease contracts of large equipment (15 contracts) for more flexible budget execution. OIST also standardized procurement process that involves negotiations with foreign manufacturers by conducting tenders and contracts with direct participation of foreign companies.
OIST also reduced expenses by continuing unit-price contracts and annual contracts based on procurement plans of sequencing reagents, international flights, copy machine usage, and translation charges. OIST succeeded in maintaining 30 percent discount for sequencing reagents despite decrease of manufacturers' catalog price, and promoted unit-price contracts for facilitate-related items such as specialty gas and cooling media. OIST started a new contract for copy machine usage to select a specific manufacturer, expecting volume discounts.
The use of supply store is carefully monitored, and there is a steady increase of its volume of activity, which results in improved cost efficiency through bulk purchase.
The Common Resource Advisory Committee was held every month to consider requests for new research equipment, software, and spaces. Any duplication with existing resources and possibility of common/shared use were checked by the committee.
To ensure proper and efficient implementation of tendering and contracts, OIST established a similar committee to the Contract Review Committee in OIST PC consisting of external experts, which would start review of contracts concluded by the University. Following the first meeting of the University's contract review committee held in FY2011, the second (Aug 24, 2012) and the third (January 28, 2013) meetings were held in FY2012.
OIST also established the Specification Formulation Committee and Technical Examination Committee consisting of external experts to have their review on specifications of large research tools/equipment for each purchase exceeding 50M yen. Also, OIST ensured budget execution in compliance with laws and OIST Policies, Rules, and Procedures (PRP), by having contracts that exceed certain amount reviewed by the VPAC.
Thorough information disclosure was ensured, such as by disclosing the reason for the negotiated contract when those expenditures exceeded a predetermined threshold (Building construction 2.5M, Goods 1.6M, Services 1.0M, Lease 0.8M).
OIST succeeded in obtaining discounts of 55M yen by utilizing the international price benchmark results for negotiation. In consideration of researchers' needs, OIST expanded international procurement from multiple countries (U.S., Germany, U.K., Spain, Singapore, etc.) by dealing with inexpensive equipment as well.
OIST greatly improved efficiency in international negotiation by completing a standardized format for import contract.
A general review of operational risks with an insurance specialist has allowed to identify gaps and to improve the competitiveness of our tenders for renewal of insurances contracts, though better description of specifications and more open competition.
(2) Effective Use of Assets
Rules were established and put into operation for both long-term and short-term use of all OIST accommodation facilities. Vehicles (bus, small cars) acquired and rules for use by residents established. Shuttle bus and after-school child pick-up services implemented. Several facilities (shop, coin laundry, gym, residents’ lounge, meeting room, community kitchen) set up in Village Center.
The cafeteria kitchen was enlarged and a new is now operator engaged, with improved food services.
An efficient booking system for the Auditorium has been set up through the Community Relations Section. A brochure has been created and published explaining to prospective users the costs and procedures for using the auditorium. The auditorium has been used for several lectures, university meetings concerts and film shows.
All research facilities in Uruma City were restored and returned to owner, as no longer needed following completion of Lab 2.
4. Personnel Management
(1) Recruitment
The legal Counsel position is currently fulfilled by an experienced professor of law from Keio University who is very familiar with Japan’s academic system and intercultural academic environment. The CIO’s responsibility is fulfilled by the Scientific Senior Manager who reports directly to the President for this responsibility, and the Fund Raising Officer's responsibility and profile is being incorporated into a fund raising strategic plan.
In FY2012, the ratio of staff in administrative divisions to the total headcounts was 175:459 (38%). Administrative staff includes those in research support, IT, Academic affairs, student support, campus construction and facility management, the President and Provost offices, procurement, HR, Administrative compliance, Business development, budget and accounting. The ratio of labor costs to the total operational budget was 34%.
The expansion of the University’s function and size requires creation of new sections and reinforcement of others. All new positions are first advertised internally to give opportunities for internal mobility and allow for internal structural adjustments. Temporary peaks in activity are managed through hiring of staff on fixed-term contracts and if possible through temporary staff reallocation.
Diversity at the workplace and the gender balance have been respected and promoted in line with the relevant PRPs; Chapter 1 Who We Are:1.3 Core Values, 1.3.2 Respectful Workplace, Chapter 3 Faculty Handbook:3.2.4 Recruitment, Appointment, Promotion, Evaluation and Retirement of Faculty, and Chapter 31 Recruitment & Hiring: 31.1 Policy.
Under the leadership of the President, the Committee for Gender Equality was established in March 2013 initially to focus on gender equality in all aspects of university management as part of measures to promote diversity, especially in playing a central role in the establishment of a support system for female researchers and female administrators.
Diversity Officers have been assigned from among the three Search Committees to ensure the diversity standards for the search are met.
OIST launched a “Business Travel Support Program”, which exceptionally allows to cover transportation expenses by the University, to promote active participation of the child-rearing employees and the invited guests to conferences, symposiums and other events as a part of diversity policies of the University.
The Child Development Center opened in January 2012.
Negotiations have begun with Okinawa HelloWork to have English speaking staff in each center to allow direct communication with non-English speaking partners of OIST members looking for an occupation.
(2) Compensation
The salary compensation has been analyzed and restructured into several annual base salary ranges based upon job and qualification categories for all regular employees including Professors, both permanent and fixed-term.
Personnel expenses have been restrained through taking measures such as reducing the compensation of officers, suppressing salary increases of employees, etc.
In accordance with the reduction of retirement allowance levels of national public officials, revision of the retirement allowance is under study.
Housing allowance levels for each category of resident were established and implemented.
(3) Training and evaluation
The FY2012 training plans and programs have been implemented, including compulsory training in compliance organized by VPAC and harassment prevention with support of an external company specialized in multicultural working environments.
Staff training was a key measurement in the technology section because of the following three reasons: OIST developed a new patent application scheme, US patent law has changed, and a young former scientist was employed. The young staff attended 5 trainings for 10 days and senior stuff attended 4 trainings in FY2012.
OIST had staff in charge of procurement to participate in internal and external trainings and learn about systems and rules at other institutions to improve their knowledge and skills and compliance sensitivity. OIST developed the system to ensure internal control and compliance by further enhancing the inspection procedure for delivered goods.
The Research Safety Section prepared web-based training materials for basic research safety and other specific training needs, such as bio-safety, animal experiments, human subject study, and export control.
The performance evaluation process is now institutionalized and has been followed by all OIST organization according to a steady and coordinated planning. The bilingual web application supporting this process is working well. The results of these evaluations are used as a basis for career evolution and adjustment of compensation.
5. Compliance
OIST established the Building and Facilities Management Budget Review Committee and the PRP Review Committee in addition to the Contract Review Committee. VPAC reviewed the budget execution status and contracts exceeding a predetermined threshold as well as new and revised policies, rules and procedures from a view point of compliance.
OIST ensured appropriate creation, management and retention of documents concerning decision making and its processes in the operation, based on the Act concerning the Management of Public Documents and University policy and rules that were developed accordingly. OIST prepared a specification in order to establish Computerized Document Management System and initiated a vendor selection.
OIST conducted an internal audit based on the plan under the Vice President in charge of compliance to ensure proper contract, procurement and accounting procedures.
OIST put the materials and Q&As concerning Compliance onto the OIST internal Website TIDA. OIST also designed and implemented compliance training program as mandatory.
The Sponsored Research Section held a seminar on the appropriate use and report of kakenhi and other competitive grants. The section also regularly monitored the compliance of the usage with different rules for different funding schemes, and supported the recipients to submit appropriate reports to the funding agencies.
OIST continued to ensure that our research activities are compliant with pertinent laws and regulations by implementing relevant PRPs under the Vice Provost for Research.
6. Information Disclosure and Public Relations
All information was disclosed appropriately on the OIST Website and places to comply with the School Education Act and the Act on Access to Information held by Independent Administrative Institutions.
A News Center was set up on the OIST website. This new section of the website makes the university’s articles, photos, videos, and other content more visible, accessible, and searchable.
OIST is proud of its Website’s design, content and functionality. It is a truly bilingual university website, one of the kind in Japan.
There was a great increase in visitors accessing the website from Japan, Taiwan, and China. OIST saw a very significant increase in the number of unique visitors, approximately 81% of which are accessing from Japan
- FY2011: 272,173
- FY2012: 754,630
A detailed analysis of production of financial statements under international standards such as IFRS has been carried out with OIST’s accounting firm. It was decided not to pursue this option for the moment because of the additional cost and workload on the accounting staff.
OIST has set up a very effective bilingual website for the PRP.