Discussion of the report of the National Commission on the Cost of Higher Education, "Straight Talk About College Costs and Prices," looks at the distinction made between what it costs the institution to educate an individual and its tuition, and some other principles fundamental to understanding higher education finance. The report's findings are…

Describes how San Francisco State University (California) used off-balance-sheet financing to build high-quality student living units with little or no risk to university finances. Discusses financing models, the investment banker's role, partnership with a nonprofit foundation which issued the housing bonds, the foundation's credit enhancement,…

Discussion of asset allocation for college/university endowment funds focuses on three levels of risk: (1) the absolute risk of the portfolio (usually leading to asset diversification); (2) the benchmark risk (usually comparison with peer institutions; and (3) personal career risk (which may incline managers toward maximizing short-term returns,…

A credit-rating tool for colleges seeking bond financing is described, using The Colorado College experience as a case study. The process discussed gives college chief financial officers a better understanding of how the bond rating agencies evaluate institutions' credit-worthiness. Substantial data charts and graphs are use for illustration. (MSE)

Recommendations for investing college/university endowment funds focus on identifying structural and skill-based competitive advantages. These include the long institutional time horizon and the ability to endure short-term volatility. Implications for endowment management are applied to selecting an endowment manager and asset allocation. (DB)

Elements of an effective management program for colleges and universities are examined. Five basic purposes of an effective program of cash management are identified: developing accurate cash projections, managing cash receipts, controlling cash disbursements, establishing sound banking relationships, and investing funds. It is suggested that all…

Long-range financial planning for plant renewal and upkeep is discussed. Traditional approaches and financial equilibrium planning approaches are described, as well as funding sources and expending these funds. (MLW)

The diverse ways in which two-year colleges use and present data from the National Association of College and University Business Officers' annual study of comparative financial statistics are described and illustrated. (MSE)

Colleges are offering innovative financing plans, some risky, that allow families to pay college costs in a rational manner and in turn keep enrollment up. They include tuition futures plans, electronic funds transfer, gift certificates, credit card payments, megaloans, tuition stabilization plans, institutional loans, tuition matching, and…

Discusses how higher education institutions can market their risk financing program to insurance brokers and insurance companies to obtain superior, cost effective coverage in the current buyer's market. Explains the development of a marketing package, the negotiating process, and the selection of brokers and insurance companies. (MDM)

Describes the experience of two small colleges, Chatham and Wesley, that survived the financial distress common to small school today. Discusses their lessons: reinforce strengths, rebuild the strongest financial source, diversify income, manage debt, and run a disciplined budget and financial management system. (EV)

Colleges and universities historically have ignored the capital costs associated with institutional administration in their estimates of overall and per-student costs. This neglect leads to distortion of data, misunderstandings, and uninformed decision making. The real costs should be recognized in institutional accounting. (MSE)

A national ranking of 508 colleges and universities, based on the size of their endowment funds and life-income-fund assets, is presented. Over 80% of endowment wealth is held by 124 institutions; 31 institutions have over $1 billion in endowment assets. Returns averaged 18% in the last fiscal year; there was little change in investment patterns.…

Discusses scenario planning, a method for evaluating capital investments by weighing their potential benefit to the future of the institution. (EV)

Yale University's on-line examination of accounting and administrative systems is discussed. Program goals are to review financial management systems at the university to identify weaknesses in internal controls, and to fulfill all audit requirements of federal grants and contracts. After outlining the quarterly audit cycle, advantages of the…