This chapter is intended for practitioners and scholars seeking to learn more about organizational finances. A hallmark of the U.S. higher education system is its heterogeneity. From research universities to community colleges, each institution seeks to excel in serving its respective mission. To do so, the institution must have a viable business…

Since their inception, intercollegiate athletics have engendered controversy and stimulated debate. Supporters assert that "college sports are significant in defining the essence of the American college and university", suggesting that benefits associated with athletics include more increased fundraising, positive public perceptions of graduates,…

Governing boards and administrations wrestle with complex endowment policy decisions that will determine current institutional quality and future institutional viability. This chapter presents data from the 2006 NACUBO Endowment Study (published in 2007), divided into the following issues of endowment management: historical returns; endowment…

One way colleges can approach cost control is by taking advantages of cooperative purchasing activities with other, similar institutions. Guiding principles for effective efforts include sharing the risk, sharing the resources, providing services to other institutions, and expanding institutional bargaining power through cooperation. Significant…

A carefully orchestrated capital budget, an essential element of corporate management, is particularly important for a small college with limited resources. A simple management system can be adopted to achieve institutional goals. (MSE)

The Financial Measurement Project, a NACUBO/ACE research program to accelerate the development and application of financial indicators, defines its goals as assistance in three distinct domains: (1) the internal management of institutions, (2) the state level, and (3) the development of national policy. (MLW)

The current discipline-based organizational structure of the college curriculum in which general education is treated as an isolated learning experience should be replaced with a more integrated curriculum. In addition, general education should take different forms in institutions with different missions. Such a curriculum redesign could help…

Strategic planning involves analysis of risks and opportunities; financial management entails balancing risks and resources to achieve institutional goals. A framework is suggested to help college administrators integrate the two functions. (Author/MSE)

Redirection of resources is an effective means of replying to institutional decline and managing conditions for growth. Ohio Wesleyan University used admissions spending and emphasis to increase student revenue, build reserves, and achieve specific objectives. Successful gift solicitation and issuance of debt can provide funds for other goals.…

College administrators in small and specialized colleges with a narrower margin for financial planning need a management process that continually renews the institution's sense of direction while ensuring that plans are matched to available resources. (MSE)

The ways in which ratio analysis can help in long-range planning, budgeting, and asset management to strengthen financial performance and help avoid financial difficulties are explained. Types of ratios considered include balance sheet ratios, net operating ratios, and contribution and demand ratios. (MSE)

Adaptation of the Total Quality Management approach to organizational improvement at Oregon State University involved creation of 10 pilot finance and administration teams and implementation of a 10-step problem-solving process. The approach has improved staff morale as well as client services. (MSE)

Large and small businesses have long financed capital projects through tax-exempt financing. Colleges that need large sums of money to retrofit campuses with energy-efficient equipment can achieve the lowest borrowing cost available through bond insurance. (Author/MSE)

The federal government's war on fraud, waste, and abuse in expenditure of federal funds has reached college campuses. Institutions that fail to heed this development are vulnerable to harsh sanctions. They must tighten accounting practices and recognize their liability for fraudulent practices of faculty and students. Internal investigations and…

A case study of financial turnaround at the highly specialized New England Conservatory of Music describes five strategies to balance costs and resources within the framework of the school's objectives. Areas of cost minimizing and revenue maximizing are outlined and discussed. (MSE)