An approach to evaluating debt capacity for capital spending, designed for a midsize independent institution of higher education with a solid enrollment base, is outlined. Factors in determining and assessing debt capacity ratios are discussed. It is suggested that the analysis be projected over a three-year period to provide a consistent basis…

The tax-exempt status of most independent colleges and universities will likely be challenged eventually, and institutions would be wise to take preemptive action by developing arguments, both financial and cultural, to support the claim that they provide substantial benefits to the community. A Rollins College (Florida) economic impact study…

Outlines an approach to better collection of delinquent college tuition that connects students with outstanding tuition to lenders. Suggests criteria for selecting an appropriate lender, and highlights benefits both for student motivation to repay debts and for institutional cash flow. (MSE)

The value-added statement (VAS), relatively unknown in the United States, is used in financial reports by many European companies. Saint Bonaventure University (New York) has adapted a VAS to make it appropriate for not-for-profit universities by identifying stakeholder groups (students, faculty, administrators/support personnel, creditors, the…

Over a decade ago New Jersey granted significant financial and operating autonomy to its state colleges. A look back to 1986, when the legislation was being implemented, identifies elements that enabled the successful transfer of responsibilities from the state to the campus. These included three categories of specific autonomies: cash management,…

Recounts the restructuring and resulting survival of Park University (Missouri) over the last decade. A process of evaluating the university's competitive strategy resulted in changes in tuition pricing; development of the Park School of Distance Learning, which serves primarily military installations; minority student marketing; and development…

A discussion of the reasons for the high cost of university buildings focuses on the uniqueness and complexity of university facilities and the danger of comparing the costs of different buildings. (MSE)

Indiana University-Purdue University Indianapolis developed an economic model for resource allocation in its dental school and undergraduate business administration program, using responsibility centered management and total quality management techniques. The evolution, design, results, and limitations of the model are discussed. (MSE)

The National Association of College and University Business Officers (NACUBO) has produced a national study of public two-year college finances useful as an institutional planning tool. The report consists of four products: a fiscal year 1995 national sample of data; a more detailed analysis facilitating comparison of college peer groups; a…

The chief financial officer of Long Island University (New York) for 50 years recounts the beginnings of her career and traces changes in higher education since 1947 through the post-war boom, unplanned expansion in the 1950s and 1960s, resulting budget problems, and difficulties with public image in the 1980s. Perspectives on her administrative…

Explanation of the technological setting in which college and university financial systems have developed is provided for financial officers, to aid in devising a plan for the chart of accounts and erecting an efficient, logical, flexible financial structure. Topics include software/hardware advances, understanding the demand for financial…

Results of a National Association of College and University Business Officers survey concerning tuition discounting policies found that one-third of higher education's stated revenue stream consists of phantom dollars, with less than 10% of students paying published tuition. Data on freshman and other discounting rates, financial aid strategies,…

The current higher education context for "Campus Financial Systems for the Future," a guide for college administrators that identifies structures and approaches for financial systems adaptable to different needs, is discussed. The guide was developed by the National Association of College and University Business Officers (NACUBO) and the…

A survey of 90 colleges and universities found that 40 percent have internal audit departments. Information on auditor time allocation, salary ranges, departmental independence, and auditor roles and responsibilities was collected. A summary analysis by type of institution (large, small, research, nonresearch, public, independent, four-year,…

The sources of rising costs vary considerably among colleges and universities of different sectors, missions, and size. In addition, the changing environment of the 1980s led institutions in different directions, depending on the faculty and students they sought to attract and the sources of revenue available. (MSE)