An examination of financial management in higher education institutions covers the management process and related activities, organizational structure and assignment of responsibilities, interrelationships of financial management decisions and other areas of the institution, and the use and coordination of financial plans within the institution.…

In order to succeed, a college or university must link its mission and plans to the budget. The statement of cash flow is a useful tool to establish this connection and adjust expenditures when necessary. Financial Accounting Standards Board formats help in preparing statements for planning purposes. An example of cash flow statement use for…

Discusses what independent institutions of higher education said when surveyed about financial reporting practices and the desirability of an operating measure. Describes findings concerning who reports an operating measure, what is included as operating revenue, what is included as operating expense, how related disclosures are handled, and the…

Findings of a survey of 300 financial officers at public and independent 4-year and 2-year institutions of higher education concerning budget allocation trends since 1987 are presented in narrative and 24 charts. The survey documents changes in growth rates in allocations by various categories and distribution of expenditures by institution type.…

A 1989-90 report based on statistics from 531 public community and junior colleges in 36 states is summarized, including information on expenditures, revenues, and staffing. Tables provide (1) a summary by region; (2) a ranked list of states by revenues; and (3) a ranked list of states by total expenditures. (DB)

This article is an excerpt from the chapter titled "Information Technology and Systems" in the sixth edition of "College and University Business Administration." Issues addressed include competition for skilled IT staff, life-cycling budgeting and replacement, measuring and valuing the IT investment, funding mechanisms, and standards and technical…

Information on three categories of deferred gifts, deferred gift valuation, and reporting on deferred gifts are presented, based on the NACUBO publication entitled "Management Reporting Standards for Educational Institutions: Fund Raising and Related Activities." In addition, a summary is presented of the results of a 1982 informal…

Issues in credit rating for colleges and universities are discussed, along with the information needed by Standard and Poor's to rate the institutions' bond issue. (MSE)

A university strategic planning approach that allocates resources simultaneously from the top down (administratively) and from the bottom up (based on expressed needs of the schools, colleges, and support units), making adjustments late in the process, is described. (MSE)

A study by the National Association of College and University Business Officers (NACUBO) analyzed tuition discount ratios for small colleges with lower tuition, small colleges with higher tuition, and large colleges/universities. It examined average tuition discount percentages, average tuition rates and enrollments, percent of students aided, and…

College financial officers may be assuming that current high returns on endowment investments will continue. Mean reversion theory suggests that returns may be depressed in future years, making adherence to current investment policy difficult. Institutions have several financial management alternatives to minimize such problems. (MSE)

Data from an ongoing study of tuition discounting at independent colleges and universities are presented, with in-depth analysis of 1995 data for 270 institutions and summary data (1990-95) for 147 institutions. Implications of the discounting trend and issues are discussed, including how to inform the public of discounts and assessing how…

An approach used at Worcester Polytechnic Institute (Massachusetts) to explain the complexity of budget balancing to the institutional community is described. The model used facilitates the determination of necessary conditions for achieving budget equilibrium and suggests some approaches to restructuring expenses to ensure equilibrium. Four…

Suggestions for implementing new National Collegiate Athletic Association guidelines for intercollegiate athletics program financial audits include forming an internal task force, preparing an organization chart, choosing the type of audit, conducting a survey of booster groups, preparing a schedule of revenues and expenditures, selecting an…

Higher education institution business officers need to follow principles of presentation, judgment, and measurement in developing effective executive financial reports. Principles include (1) keep the statement simple; (2) be consistent in reporting from year to year; (3) determine user needs and interests; (4) limit data; (5) provide trend lines;…