Increasingly sophisticated analyses of costs and revenues have contributed to more effective financial management in higher education, with attention focused on ways in which fixed and variable factors contribute to direct or unit costs; analyses of cost-revenue relationships; differential effects of one-time and recurring costs; variety of…

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)

In college and university administration, overhead costs are often charged to programs indiscriminately, whereas the support activities that underlie those costs remain unanalyzed. It is time for institutions to decrease ineffective use of resources. Activity-based management attributes costs more accurately and can improve efficiency. (MSE)

New federal regulations concerning direct cost accounting for college and university research projects are explained. It is concluded that the new standard allows institutions to reduce the signatures required on cost transfers and use reasonable cost allocation methods to simplify distribution of direct costs when research is supported by…

Underscores the importance of informed decision making through accurate anticipation of cost incurrence in light of changing economic and environmental conditions. Explains the concepts of cost accounting, full allocation of costs, the selection of an allocation base, the allocation of indirect costs, depreciation, and implications for community…

Successful college and university investments hinge on an asset allocation strategy capable of meeting the institution's needs for income and growth in principal at the lowest possible risk. Periodic adjustments must be made when there is a shift in the institution's risk tolerance, modification in need for income distribution, and changes in…

Discussion of fiscal management in the reformed higher education systems of Eastern/Central Europe begins with analysis of reform attempts in two British universities and relates them to Eastern and Central European issues. It is argued that institutions must adopt a holistic approach to managing change and for addressing various staff, structure,…

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…

A guide to cost studies in higher education is presented, with emphasis directed to the response of a four-year public institution to an externally mandated cost study. Cost studies are usually requested to guide budget allocations, either from an internal campus need or from outside pressures. Although much effort has been expended by various…

Ways in which the external financial disclosures by universities may evaluate institutional economic viability are demonstrated. It is argued that the evaluation should take into account the effect of inflation and activity level. The evaluation model requires several years' information about revenues (general operating fund), the impact of…

Plant operation currently consumes about 8 percent of an institution's budget (10-12 percent is not uncommon), of which half is expended on energy. In addition, the deferred maintenance of existing plant, a measure by which many institutions balanced their budget or minimized their deficits, can no longer be postponed. Nationally, an estimated $22…

A budgeting handbook for academic administrators and faculty is presented. Economic and political influences on budgeting are considered, along with sources of funds for public and private colleges, and the chronology of the budget process. Multiyear summaries of the budget process in different types of colleges are included. Some major policy…

The National Association of College and University Business Officers (NACUBO) has identified public policy issues of interest to its membership in 1997, including those in budget and appropriations, college costs and pricing, distance learning and technology, environmental health and safety, federal audit and accounting standards, Higher Education…