Describes a statistical model that can be used to compute an institution's expected enrollment yield and an average discount to obtain a net tuition and fees forecast for the coming year; using this information, resource allocation decisions can be made earlier and with confidence. (EV)

Identifies various roles of a college or university's endowment fund, such as serving as a rainy day fund, funding one-time capital requirements, and enhancing program quality. Considers implications of various roles for asset allocation and endowment spending. (DB)

It is argued that colleges and universities can use direct allocation costing to provide quantitative information needed for decision making. This method of analysis requires institutions to modify traditional ideas of costing, looking to the private sector for examples of accurate costing techniques. (MSE)

Strategic planning enables colleges to direct discretionary dollars into high-impact areas that can enhance critical core activities, improving output. When the institution can disinvest financial resources in weak or noncritical core areas and redirect them through careful budgeting, it improves its chances for success. (MSE)

Strategies for reallocation of resources that were used by five public colleges are discussed. Attention is directed to the efforts of institutions that are under severe political, economic, and time pressure. At each of the following schools that were visited, meetings were held with key administrators, faculty members, and students: the…

This article describes activity-based costing (ABC) and how this tool may help management understand the costs of major activities and identify possible alternatives. Also discussed are the traditional costing systems used by higher education and ways of applying ABC to higher education. (GLR)

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,…

Outdated and cumbersome administrative processes and technology at the University of Missouri prompted use of business process reengineering (BPR) techniques to bring about change. BPR helped quantify staff resources and costs associated with major administrative processes, know where those processes were occurring, and understand opportunities…

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)

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

To meet demand for increased funding, in a period of probable declining investment returns, colleges and universities must fine-tune their asset suballocations to enhance returns. While the institution should adhere to major asset allocation classes, there can be much flexibility, and enhanced return, in shifting suballocations within the major…

A random sample of 300 financial officers at public and independent 4-year and public 2-year institutions reveal their projected fiscal 1992 year-end expenditures and 1992-93 budget allocations. Summarized in chart form are the findings on changes in growth rates on salary and wage allocations for a variety of institutional functions. (GLR)

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.…

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…

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)