Although there is support for the general idea, there are differences of opinion regarding some specific matters, as explained below

$1.$ Central Administration Sector: Many expenses occur in the central administration sector but these expenses are related to the administration of each faculty and this is considered unfair and they do not want to be responsible for the allocation of costs that they cannot

control.

$2.$ Gifts and Donations: Income from annual gifts will be reduced by the costs of fundraising activities. The net amount of annual gifts plus endowment income $($except gifts and endowment income designated for a particular school$)$ will be allocated by the

Chancellor, in accordance with its decisions regarding the needs of each school, with the approval of the board of trustees. The deans thought this gave too much authority to$.$ They do not have a specific alternative but believe that a way needs to be developed to reduce the Chancellor's authority.

$3.$ Sports:Piedmont's athletic teams do not generate enough revenue to cover the operating costs of the athletic department. The proposal is to make the department self$-$sustaining by charging fees to students who participate in sports or who use swimming pools, tennis courts, gymnasiums and other facilities individually. While there is no strong opposition, some feel that this will lead to student dissatisfaction, as will the influx of new coursework.

$4.$ Computer: Today, major mainframe computers and related equipment are located and supervised by engineering schools. Students and faculty members may use them as they wish, subject to informal checks against excessive use by those in the computer room.

About a quarter of the computer's capacity is used for administrative work. Several departmental mainframe computers and hundreds of microcomputers and word processors are located throughout the university, but there is no central record of how many there are.

The proposal is that each engineering school computer user will be charged a fee based on usage. This fee will cover all equipment costs, including overhead costs. Each school is responsible for requlating the amount of costs that can be incurred by lecturers and students so that the total costs do not exceed the approved school budget. $($Computers have software that easily attributes costs to individual users.$)$ Some deans objected to this plan. They indicated that neither students nor faculty understood the potential value of computers, and they wanted to encourage their use as an important part of the educational and research experience. They argued that the charges would have the opposite effect. Computers and equipment can be used by students and staff freely, this leads to

excessive spending on excessive use

$5.$ Cross Registration: Currently, students enrolled at one school can take courses at another school free of charge. The proposal is that the school where the course is taken will reimburse the school where the student is enrolled. The amount charged is the total semester tuition fees of the school where the course is taken, divided by the number of courses the student usually takes in one semester, with adjustments for variations in credit hours.

$6.$ Maintenance: Each school has a maintenance department that is responsible for house maintenance on its part of the campus and for minor maintenance work. Considerable work was carried out at the school's request by the central maintenance department. The proposal is that in the future central maintenance departments will charge schools and other profit centers for the work they do at the actual cost of the work, including costs

direct and overhead costs. The dean of the business school said that this was acceptable as long as the profit center was authorized to perform maintenance work by outside contractors if the price was lower than that charged by the maintenance department. Malcolm explained that he had discussed this possibility with the head of maintenance, who opposed it on the grounds that outside contractors could not be held accountable for the high quality standards Piedmont required.

$7.$ Library: University libraries are major repositories of books and other materials, and there are small libraries in every school. The proposal is that every student and lecturer who uses the university library will be charged a fee, either on an annual basis or based on time spent in the library or number of books withdrawn. $($The library had a secure entrance where a guard was stationed, so records of who used it could be obtained without too much difficulty.$)$ There was some dissatisfaction with the amount of paperwork required for the plan, but it was not. considered as important as some other items.

Question:

$1.$ What kind of control system do you propose for this problem?