STATE OF ILLINOIS BOARD OF HIGHER EDUCATION INSTRUCTION MANUAL FOR COMPLETING THE ANNUAL STUDY OF COSTS IN ILLINOIS PUBLIC UNIVERSITIES October 1995 Printed on Recycled Paper

Printed by Authority of the State of Illinois 10/95 - 50 c.

TABLE OF CONTENTS Page PREFACE.............................................................................................................................................. i I. OBJECTIVES AND OVERVIEW ...................................................................................... I-1 I-1.0 Objectives .............................................................................................................. I-1 I-2.0 Classification of Costs ........................................................................................... I-1 I-2.1 Direct Expenditures................................................................................. I-1 I-2.2 Support Costs .......................................................................................... I-1 I-2.3 Instructional Unit Costs .......................................................................... I-3 I-3.0 Historical Development......................................................................................... I-3 II. THE CLASSIFICATION OF COSTS................................................................................. II-1 II-1.0 Overview................................................................................................................ II-1 II-2.0 Direct Costs ........................................................................................................... II-1 II-2.1 Instruction................................................................................................ II-1 II-2.2 Organized Research ................................................................................ II-2 II-2.3 Public Service.......................................................................................... II-3 II-3.0 Support Costs......................................................................................................... II-3 II-3.1 Departmental Overhead .......................................................................... II-3 II-3.2 College or School Overheads ................................................................. II-3 II-3.3 Overhead Unique to a Function.............................................................. II-4 II-3.4 Academic Support................................................................................... II-5 II-3.5 Student Services ...................................................................................... II-5 II-3.6 Independent Operations .......................................................................... II-5 II-3.7 Institutional Support................................................................................ II-5 II-3.8 Operation and Maintenance of Physical Plant........................................ II-5 II-4.0 Faculty Activity Analysis Procedures (FAA)....................................................... II-6 II-4.1 Whose Salaries Should be Allocated...................................................... II-6 II-4.2 Who Should Not Complete a FAA......................................................... II-6 II-4.3 What Should be Counted ........................................................................ II-6 II-4.4 How Should They be Counted................................................................ II-6 II-4.5 Sample FAA............................................................................................ II-7 II-4.6 Examples ................................................................................................. II-7 II-5.0 Faculty Credit Hour Study .................................................................................... II-9 II-5.1 Staff Years............................................................................................... II-9 II-5.2 Allocation of Staff Years ........................................................................ II-10 II-5.3 Example................................................................................................... II-11 II-6.0 Submission Requirements ..................................................................................... II-14 II-6.1 Record Format......................................................................................... II-14 i

Page III. STUDENT AND COURSE FILES...................................................................................... III-1 III-1.0 Overview................................................................................................................ III-1 III-2.0 Courses and Credits............................................................................................... III-1 III-3.0 Students ................................................................................................................. III-1 III-3.1 Student Levels ......................................................................................... III-1 III-4.0 Classification of Instructional Programs............................................................... III-2 III-4.1 Student Majors ........................................................................................ III-2 III-5.0 Credit Hour Reconciliation ................................................................................... III-2 III-6.0 Induced Course Load Matrix (ICLM)................................................................... III-2 III-6.1 Submitting the ICLM.............................................................................. III-2 III-6.2 Record Format......................................................................................... III-4 IV. ALLOCATING COSTS....................................................................................................... IV-1 IV-1.0 Introduction............................................................................................................ IV-1 IV-2.0 Fiscal Year Expenditures....................................................................................... IV-1 IV-2.1 Excluded Expenditures ........................................................................... IV-1 IV-3.0 Summer Session .................................................................................................... IV-1 IV-4.0 Cost Reconciliation Forms .................................................................................... IV-2 IV-5.0 System Offices....................................................................................................... IV-2 IV-6.0 Allocating Costs .................................................................................................... IV-2 IV-6.1 Allocating Salaries .................................................................................. IV-2 IV-6.2 Instruction................................................................................................ IV-2 IV-6.3 Organized Research ................................................................................ IV-3 IV-6.4 Public Service.......................................................................................... IV-3 IV-7.0 Allocating Support Costs....................................................................................... IV-3 IV-7.1 Departmental Overheads......................................................................... IV-4 IV-7.2 College or School Overheads ................................................................. IV-4 IV-7.3 Overhead Support Unique to a Function................................................ IV-7 IV-7.4 Academic Support................................................................................... IV-7 IV-7.5 Student Services ...................................................................................... IV-8 IV-7.6 Independent Operations .......................................................................... IV-8 IV-7.7 Institutional Support................................................................................ IV-8 IV-7.8 Operation and Maintenance of Physical Plant........................................ IV-8 IV-8.0 Summary of Allocations........................................................................................ IV-8 IV-9.0 Calculating Unit Costs........................................................................................... IV-8 V. SUBMITTING DISCIPLINE AND PROGRAM COSTS.................................................. V-1 V-1.0 Overview................................................................................................................ V-1 V-2.0 Submitting Discipline Costs.................................................................................. V-1 ii

Page V-2.1 Hard Copy ............................................................................................... V-1 V-2.2 Machine Readable Copy......................................................................... V-1 V-2.3 Record Format......................................................................................... V-1 V-3.0 Reconciliation Forms............................................................................................. V-2 V-4.0 Majors ................................................................................................................. V-2 V-5.0 Calculating Program/Major Costs......................................................................... V-3 V-6.0 Submission Requirements ..................................................................................... V-4 VI. HYPOTHETICAL CASE STUDY...................................................................................... VI-1 VI-1.0 Introduction............................................................................................................ VI-1 VI-2.0 Student Records..................................................................................................... VI-1 VI-3.0 Allocating Costs .................................................................................................... VI-1 VI-3.1 Departmental Overhead .......................................................................... VI-1 VI-3.2 College or School Overheads ................................................................. VI-10 VI-3.3 Overhead Unique to a Function.............................................................. VI-10 VI-3.4 Academic Support................................................................................... VI-17 VI-3.5 Student Services ...................................................................................... VI-17 VI-3.6 Independent Operations .......................................................................... VI-17 VI-3.7 Institutional Support................................................................................ VI-17 VI-3.8 Operation and Maintenance of Physical Plant........................................ VI-33 VI-3.9 Summary of Allocations ......................................................................... VI-33 VI-4.0 Instructional Unit Costs......................................................................................... VI-33 VI-5.0 Program Costs........................................................................................................ VI-33 APPENDIX ........................................................................................................................................... 1 Submission Schedule ............................................................................................................ 3 Suggestions for Assigning New CIP Codes......................................................................... 5 Instructions for Completing Form A: Discipline Cost Study.............................................. 6 Instructions for Completing Form C: Reconciliation of Cost Study Expendi- tures to Total Estimated State-Appropriated Operating Expenditures.............................. 8 Instructions for Completing Form D: Reconciliation of Estimated Expendi- tures Used for the Cost Study to Final Audited Expenditures .......................................... 10 Instructions for Completing Form GH: Appropriated Funds Expenditures for Organized Research and Public Service Activities ..................................................... 13 Instructions for Completing Form J: Nonappropriated Funds Expenditures for Instruction, Organized Research, and Public Service.................................................. 16 iii

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PREFACE Every year since 1965 the Illinois Board of Higher Education has completed a study of costs at public universities in Illinois. This study results in the annual publication of a Discipline Unit Cost Study, a Comparative Cost Study, a Program Major Cost Study, and a Faculty Credit Hour Study. A variety of special analytical studies also result from this effort. This detailed examination of costs, especially over time, is an invaluable aid to planners, budgeters, administrators, researchers, faculty and state officials in the continuous effort to provide the most effective and efficient postsecondary education system possible. The same detail that ensures the cost study's utility requires careful codification of procedures. This manual carefully describes the information and procedures necessary for each university to complete the annual Cost Study. The procedures and data used in the Cost Study have been developed with the cooperation of the staff of each public university. Their past assistance and anticipated future cooperation in this on-going effort are greatly appreciated. Richard D. Wagner Executive Director v

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CHAPTER I OBJECTIVES AND OVERVIEW I - 1.0 Objectives The principal objectives of identifying the operating costs of public universities are: 1. To help formulate the annual operations and grants budget for public universities. 2. To assist university administrators in program planning and re-evaluation. 3. To establish a historical reference for the study of changing instructional costs. 4. To increase the efficiency and effectiveness of postsecondary education in Illinois. To help meet these objectives, the Illinois Board of Higher Education currently publishes three basic analyses of Cost Study data: a faculty credit hour study (Chapter II); a study of units costs in each discipline, including a comparative study of discipline costs among institutions (Chapter V); and a program/major unit cost study (Chapter V). I - 2.0 Classification of Costs The three primary missions of public universities in Illinois are Instruction, Research, and Public Service. While the organization of each university is unique in many respects, it is possible to classify the activities of each university, and therefore its costs, in terms of these three primary functions. This is the central process of the Cost Study. The classification of activities and costs is based upon the responsibilities assigned to the faculty and administration. These assignments provide both direct service to and support for the primary functions. Each university collects a Faculty Activity Analysis (FAA) for each faculty member, administrator and professional staff member who has assigned time to Instruction, Research or Public Service. Chapter II gives a complete and detailed description of the FAA. I - 2.1 Direct Expenditures The FAA identifies those assignments which provide direct service in each of the primary functions. Within the Instruction function, direct service is subdivided into three categories: direct instruction, indirect instruction and departmental research. The Instruction function also is separated into four student levels: lower division, upper division, graduate I and graduate II. Each of these cost categories and the student enrollment levels are defined more completely in Chapters II and III. Figure I-1 displays, graphically, the breakdown of direct expenditures among the primary functions. The direct expenditures shown in Figure I-1 also are classified by discipline. Definitions for academic disciplines are provided in Chapter III. I - 2.2 Support Costs After direct service costs are allocated to the primary functions, the remaining costs associated with all budgetary units are classified into one of several support categories. Briefly, support costs are allocated to the following cost categories: 1. Departmental Overhead 2. College Overhead

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3. Overhead Unique to a Function 4. Academic Support 5. Student Services 6. Independent Operations 7. Institutional Support 8. Operation and Maintenance of the Physical Plant Costs within each of these categories are allocated among the three primary functions. Figure I-2 displays the relationship between all cost categories and primary functions. I - 2.3 Instructional Units Costs After all state appropriated funds have been distributed among the three primary functions and classified by cost category, instructional unit costs are derived by dividing costs by student credit hours generated in each instructional level within each discipline. Of course, units costs at various levels of aggregation also are possible. A complete and detailed description of the procedures for defining and classifying student credit hours is provided in Chapter III. I - 3.0 Historical Development The Cost Study is an outgrowth of the Illinois Master Plan for Higher Education-Phase I and has been in use since fiscal year 1965. In the master planning activities, the Illinois Board of Higher Education began to develop consistent procedures for collecting information on public university financial operations. Arthur Andersen and Company was retained to review existing financial information maintained by universities. A Budget Formula Committee was formed and, with the help of the Arthur Andersen report1, developed the first procedures for the Cost Study. In 1970, the Faculty Studies Task Force established a subcommittee to review the Cost Study procedures. New procedures, adopted in January of 1972 involved new definitions of graduate I and II instructional levels, a new discipline taxonomy, and a new functional category called organized activities. The Cost Study procedures were again reviewed in 1975 by a technical committee of Board staff and system and institutional representatives. Changes that were adopted by this committee included a revised time table for submission of data, use of end-of-year estimated expenditures rather than audited expenditures, inclusion of off-campus instructional activities, a closer conformity to the Resource Allocation and Management Program (RAMP) structure for financial planning and management, and procedures for producing the program/major unit cost and faculty load studies. Since 1975 other changes have been made as a result of annual discussions with institutional and system representatives and the work of a more formally organized review committee which met in 1980. The original revision of this manual reflects all changes made by the Spring of 1982. Any further revisions will be made by supplementing or replacing pages in this manual. 1Review of Comparability of Data Relating to Educational and General Expenditures of the Six State-

Supported Universities for the Fiscal Years Ended June 30, 1960, 1961 and 1962.

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CHAPTER II THE CLASSIFICATION OF COSTS II - 1.0 Overview This chapter is concerned with defining and classifying the costs of the university. The Cost Study divides costs into two broad categories, those that provide direct service and those that provide support for direct service activities. Throughout this Manual, direct service refers to direct instruction, indirect instruction, departmental research, direct organized research, or direct public service. Section II-2.0 discusses direct costs and includes definitions for the three primary functions and cost categories. Support cost categories are discussed in Section II-3.0. Direct costs are determined from the FAA which is discussed in Sections II-4.0 through II-4.6. The Faculty Credit Hour Study, which is published annually by the Illinois Board of Higher Education, is described in Section II-5.0 through II-6.1. II - 2.0 Direct Costs The FAA is used to classify faculty and administrator activities. The salaries associated with the direct service activities are allocated among the three primary functions--Instruction, Organized Research, and Public Service. Salaries and other expenditures not assigned to direct service costs are allocated to one of the support cost categories. Support costs categories are defined beginning in Section II-3.0 and the technical procedures of the FAA are discussed in Section II-4.0. The sections below discuss the Direct Costs associated with the three primary functions. The definitions are derived from RAMP for public universities. II - 2.1 Instruction This primary function consists of those activities carried out for the explicit purpose of eliciting some measure of educational change in a learner or group of learners. "Educational change" is defined to include: 1. Acquisition or improved understanding of some portion of a body of knowledge. 2. Adoption of new or different attitudes. 3. Acquisition or increased mastery of a skill or set of skills. Activities carried out to elicit educational changes include both "teaching" activities and "facilitating" activities. Academic advising is generally carried out in support of an instructional program. II - 2.11 Direct Instruction Direct Instruction includes activities associated with direct contact instruction of students in specific courses, supervision of student teaching and applied studies, thesis supervision, independent study and tutorials.

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II - 2.12 Indirect Instruction This category includes those assigned activities which encompass duties closely related to Direct Instruction of students other than direct contact teaching. A sample of activities and whether they should be assigned to indirect instruction is provided below. Indirect Activity Instruction If Not, What? 1. Meeting with advisees Yes 2. Coaching an intercollegiate athletic team No Student Services 3. Meeting with teaching assistants responsible for Yes separate sections of an introductory course 4. Setting up glassware for chemistry lab classes Yes 5 .Writing a computer program to be used by students Yes in next semester's class 6. Teaching remedial math or reading No Direct Instruction 7. Directing a play sponsored by the department Yes 8. Serving as director or curator of the university's No Academic Support museum 9. Chairing a departmental committee No Departmental Overhead

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II - 2.13 Departmental Research This category should include research duties specifically assigned to a faculty member by the head of an academic department or a departmental committee. Such assigned effort, which usually need not be approved by a university research committee, may contribute to the professional development of a faculty member and lead to publication or other scholarly recognition. With the exception of a released time institutional contribution required by the terms of an externally (i.e., non-university) funded research grant, all research effort assigned at the departmental level should be included as Departmental Research. Departmental Research should not be used as a catch-all for residual faculty activities which cannot be categorized elsewhere. If there are departmental activities which cannot be categorized elsewhere, they should be included in the Departmental Overhead category (see Section II-3.1 below). Neither Departmental Research nor Indirect Instruction can be classified as Organized Research or Public Service. II - 2.2 Organized Research Activities outside the department intended to produce one or more research outcomes including the creation of knowledge, reorganization of knowledge, and the application of knowledge are to be reported in Organized Research. Research duties specifically assigned to a faculty member by the head of an academic department or a departmental committee and financed with departmental funds should be classified as Departmental Research (see Section II-2.13). Outside the department, Organized Research activities may be conducted by a number of organizational entities including research centers, bureaus, institutes and experimental stations. State supported laboratory schools also are considered separately organized research centers. Organized Research may be carried out on an individual or project basis if financed from centrally administered, competitive institutional grants to individual faculty members. These awards support research activity during the summer term for faculty on academic year appointments. Direct service expenditures within Organized Research also includes that proportion of research that is supported by in-kind departmental contributions to the cost of an externally funded research project. Such a contractual relationship with an entity outside the university is necessary to classify such expenses as Organized Research. II - 2.3 Public Service Public Service includes those program elements established to make available to the public the various unique resources and capabilities of the institution for the purpose of responding to a community need or solving a community problem. This function consists of various nondegree instructional programs which are classified as community education and various consulting activities which are assigned to faculty or other representatives of the university community. No activity, however, should be classified and recognized as an official university activity unless it has been officially assigned by a department head, dean, vice president or president. For example, faculty consulting for a community agency which is not a part of an official university assignment would not be reported in this function, nor would it be reported in any other function. In some cases, institutes and centers may be organized for the purpose of providing Public Service. For example, an agriculture experimental station provides both Organized Research and Public Service. However, only Public Service activities of such a station should be classified in this function. Direct service supplied to a broadcasting service operated for the benefit of the general public should be classified here. In some cases, however, broadcasting services also are utilized to support instructional programs in radio and television communications. Faculty and staff activities associated with the instructional component of this service should not be categorized in this function but should be allocated to the Instruction function. Broadcasting services operated as a student service, limited only to the geographical area of the university campus for the benefit of students, staff and faculty, should be classified under student services (see Section II-3.5 below).

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Direct service expenditures within Public Service also include that proportion of public or community service that is supported by in-kind departmental contributions to the cost of an externally funded community service project. Such a contractual relationship with an entity outside the university is necessary to classify such expenses as Public Service. II - 3.0 Support Costs Support Costs are composed of those expenditures from the FAA which are not allocated to direct service and those expenditures from organizational units designed to support direct service. Support costs are assigned to eight different cost categories. Each category is defined and described below. II - 3.1 Departmental Overhead Departmental Overhead is the first category of support activities. As such, it represents those departmental activities that cannot be classified as direct service. It includes administrative duties and the activities of office support personnel, and other departmental contractual services. It also includes equipment and supply costs and sabbatical leave costs. These will be discussed more fully in the chapter on allocating costs. II - 3.2 College or School Overheads This category includes all administrative activities at the college or school level. It is separated from the normal RAMP functional classification programs in order to reflect academic support activities that are limited to a subset of disciplines. It should include all administrative duties, and the activities of college or school level support personnel. Clerical and other contractual services associated with the college or school office also would be classified here. As was the case with departmental overheads, college level equipment and supply costs and the costs involved in administrative leaves should be included in this category. II - 3.3 Overhead Unique to a Function Activities which support only a single primary function are to be classified in this category. As an example, Table II-1 lists several organizational units and illustrates whether each should be allocated to Overhead Unique to a Function. If so, it shows which primary function; and, if not, the other cost category to which it should be allocated. II - 3.4 Academic Support Academic Support activities are carried out in direct support of the three primary functions: Instruction, Organized Research and Public Service. They are to be distinguished from support programs such as student services and institutional support (Sections II-3.5 and II-3.6). Academic support includes activities related to the preservation, maintenance, and display of both the stock of knowledge and educational materials (for example, library services and museums), teaching hospitals and clinics, and activities directly related to the administration of academic programs. Activities associated with academic administration and academic senates should be included here.

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Table II-1 EXAMPLES OF ACTIVITIES ALLOCATED (OR NOT ALLOCATED) TO OVERHEAD UNIQUE TO A FUNCTION Include in Overhead Unique If Yes, Which If No, What Other Activity to a Function Function? Category? 1. High School/Community Yes Instruction College Relations 2. Equipment and Supplies for No Departmental Overhead an Institute or Center in Public Service or Organized Research 3. Office of Grants and Contracts Yes Organized Management Research 4. Campus Radio Station No Direct Instruction or Public Service in Appropriate Discipline or Student Services 5. Registration, Admissions and Yes Instruction Records 6. Administration of Physical Yes Instruction Education Facilities 7. Administration of a Nuclear No College or School Over- Reactor Test Facility head in College of Science or Engineering 8. Campus Museums No Academic Support 9. Administration of Continuing Yes Instruction or Education Public Service* *If the Continuing Education office serves both the instruction and public service functions, then the

administrative costs of the office should be split between the two using a special activity analysis submitted with the discipline costs.

II - 3.5 Student Services Student Services activities: 1) expand the dimensions of the students' educational and social development by providing cultural, social, and athletic experiences; 2) provide those services and conveniences needed by students as members of an on-campus, resident student body; and 3) assist students in dealing with personal problems and relationships as well as in their transition from a student to a fully contributing member of society and the labor force. In addition to these types of activities, student services also include student financial assistance activities. Examples of activities included are lecture series, music activities, art exhibitions, concerts, films, intramural athletics, recreation programs, student government,

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student yearbook, student magazines and student clubs. In addition, activities associated with counseling and career services, student health services, intercollegiate athletics, and the financial aid office should be classified in this category. All costs in this category are allocated to the Instruction function. II - 3.6 Independent Operations This category includes the activities associated with student auxiliary services and programs and activities which are unrelated to the primary missions of the university. Student auxiliary services include those activities which are provided for the comfort and convenience of an on-campus, resident student body and should be classified into this category. Fees are normally charged to students for these services. The following activities are examples of student auxiliary services: Housing Services, Food Services, Retail Services and Concessions, and Specialized Services. Other Independent Operations might include airports, conference centers, restaurants and hotels. All costs in this category are allocated to the Instruction function. II - 3.7 Institutional Support The Institutional Support category includes those activities which support the institution's overall functioning. The activities do this by: 1) providing for planning and executive direction; 2) providing for administrative and logistical services; 3) enhancing relationships with the institution's constituencies; and 4) providing services and conveniences for the employees of the institution. Examples of activities included: Board of Trustees, Governing Board, Chancellor, President, Provost, Vice-Chancellors, Vice-Presidents, institutional research, budget planning, and academic planning and facilities planning committees. Also included in this category are payroll operations, bursar, cashier, treasurer, comptroller, business officer, internal auditing, endowment management, the affirmative action office, receiving/shipping, inventory control, room scheduling, personnel administrative and faculty and staff auxiliary services. Public relations offices, governmental relations offices, alumni events and publications, and fund raising activities also are classified here. Those administrative activities that do not have an institution-wide focus should be classified elsewhere. II - 3.8 Operation and Maintenance of Physical Plant This category consists of those activities related to maintaining existing grounds and facilities, providing utility services, campus security and fire protection, physical plant transportation, and rental of space. In addition, those activities related to the direct and indirect supervision and administration of the plant operation and maintenance program should be classified here. II - 4.0 Faculty Activity Analysis Procedures The FAA is a way of classifying the officially assigned activities of faculty and staff to the primary functions and cost categories defined above. As such, it is the basic building block of the Cost Study. The sections below describe who should complete a FAA and what information the FAA should supply. II - 4.1 Whose Salaries Should be Allocated All faculty and administrative employees assigned to provide direct service should complete a FAA. At the discretion of the institution, other personnel may or may not be required to complete a FAA. Faculty employees are those personnel having academic rank who have departmental assignments in instruction, organized research and public service. This includes academic department heads. The faculty employee category includes professors, associate professors, assistant professors, instructors, lecturers and graduate assistants. Graduate research and teaching assistants should all be classified as Graduate Assistants. "Administrative employees" are defined as those with primary executive, administrative, and management assignments within the university. These assignments involve planning, organizing, managing and directing the university and its sub-units. Employees classified as Other Professionals who provide direct service, should be required to complete a FAA. Other Professionals are those employees with non-civil service appointments with primary

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responsibilities in noninstructional areas and who cannot be classified as Administrative. An example might be the assistant librarian. These employees may work under the direction of an administrative employee with primary executive and managerial assignment, but will not have a primary executive or managerial assignment themselves. Part-time and temporary employees meeting these definitions also should complete a FAA. II - 4.2 Who Should Not Complete a FAA Civil Service employees and employees paid from non-state appropriated funds (excluding cost recovery funds) are not required to complete the FAA. II - 4.3 What Should be Counted The Cost Study operates on the concept of official assignments. The FAA should account for 100 percent of the officially assigned activities paid for by state appropriations (excluding cost recovery funds) and categorized among the three primary functions. II - 4.4 How Should They be Counted The distribution of assigned activities should be expressed in percentage terms and reflect the official assignments by a supervisor, such as a department head or dean. Figure II-1 illustrates how the sum of a faculty or staff member's assignments should total 100 percent. Figure II-1 ACTIVITY CATEGORIES Category Percent of Time A. Direct Service Activities Instruction 1. Direct Instruction 2. Indirect Instruction 3. Departmental Research Organized Research 1. Direct Research Public Service 1. Direct Service B. Support Services Activities TOTAL (100 percent of officially assigned workload from state appropriated funds) For faculty providing direct instruction, the FAA should identify the specific courses taught so that they may be cross-referenced with course files.

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II - 4.5 Sample Faculty Activity Analysis Figure II-2 is a sample FAA form. Note that all three direct cost categories, direct and indirect instruction and departmental research are differentiated on the form. The two other primary functions, Organized Research and Public Service, also are included. On this particular form, space is provided for specific information such as credits and enrollments by instructional level. This is not a necessary part of the form as long as this same information is available from course records. At the bottom of the form, the department head provides the percentages of assigned activities for the various functions. These percentages will be used to distribute salaries across functions. II - 4.6 Examples 1. Dr. Schwann, in filling out her FAA, estimated that she spent 22 hours per week in direct

instructional activities this past term, teaching two physiology courses. She also estimated she spent five hours per week advising students and about two and one-half hours per week serving on the advisory board of a local medical clinic. Most of Dr. Schwann's time was occupied by her research project on phosphorylation--22½ hours per week. Dr. Schwann's FAA is shown as an example in Figure II-3. Notice the bottom of Dr. Schwann's FAA. Her department chairman reviewed her form and supplied the appropriate percentages. It is these percentages that are used to allocate salary. Dr. Schwann's annual salary is $30,000. Based on her FAA, direct salary costs would be divided as follows: $6,000 to direct instruction (.4 x $30,000/2), $1,500 to indirect instruction, $6,750 to departmental research, and $750 to public service.

Since Dr. Schwann served on the medical clinic's advisory board at the request of her department

chairman, this activity is a legitimate public service activity. 2. Dr. Jones is the Director of Institutional Research at the public university. Last semester the

vice-president assigned Dr. Jones to teach a course for the statistics department in addition to his regular duties as the Director. Dr. Jones was instructed to spend five hours per week in direct instruction. Dr. Jones' annual salary is $32,000 and his contract is for 12 months. Since the semester at his institution is four and one-half months long, and since 12½ percent of Dr. Jones' time was spent on direct instruction that semester, $1,500 would be allocated to direct instruction and assigned to the statistics department: (4.5 ÷ 12) x .125 x $32,000. The remaining $30,500 would be allocated to Institutional Support and distributed among the disciplines according to the procedures described in Chapter IV.

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II - 5.0 Faculty Credit Hour Study The completed FAA forms allows the institution to calculate the credit hours produced per staff year by discipline and instructional level. Each year the Illinois Board of Higher Education publishes the results of the most recent Faculty Credit Hour Study. II - 5.1 Staff Years A staff year is a measure of staff effort over a 12-month period. For professional personnel other than those holding faculty appointments, a staff year is defined as a person in a full-time position working for one year, including vacation. Part-time positions, or those which are of less than a year's duration, should be counted as the appropriate portion of a staff year. For example, if the normal work week is 40 hours, a position requiring 20 hours work per week would be .5 staff years; a position requiring 40 hours per week for nine months would be .75 staff years. The university definition of normal work week should be used for staff year calculations. For faculty appointments, one staff year is the equivalent of a full-time teaching load for 12 months including one month vacation. There are two steps in determining faculty staff years. First, the workload of each faculty member should be expressed as the appropriate fraction of a full-time workload. Normally, the fraction of a workload is included in a faculty member's contract. While each institution employs its own definition of a full-time teaching load, usual practice is between nine and 12 credit hours per term. Definition of workloads for graduate assistants should be on approximately the same basis as regular faculty. For example, if a full-time faculty load is 12 credit hours per term, a graduate student teaching three hours would be .25 of a normal full-time workload. Graduate assistants with noninstructional assignments may have workloads defined in terms of hours worked per week assuming a full-time workload of 40 hours per week. For faculty and staff who receive part of their salary from non-state funds, only that proportion of their workload that is paid from state appropriated funds should be counted towards a staff year. Similarly, if one-third of a faculty member's time has been assigned to something other than the three primary functions or departmental, college or school overhead, then for the purposes of the Faculty Credit Hour Study, the workload is two-thirds full-time. The second step in determining staff years is to count the number of months an individual is on contract, and multiply the workload fraction by the number of months worked. The resulting "staff months" figure is then divided by 12 to arrive at staff years. Thus, a professor teaching a normal full-time workload on a nine-month contract would he converted into staff years as follows: 1 full-time workload x 9 months = 0.75 staff years 12 months A lecturer teaching half-time on a 12-month contract would be converted to staff years as follows: .5 full-time workload x 12 months = 0.5 staff years 12 months II - 5.11 Summer Compensation Frequently a faculty member who has a nine-month contract is afforded the opportunity to teach in the summer. If support for that summer contract is from state appropriated funds, then the summer assignment should be added to the faculty member's staff-year total. If the summer contract is full-time for three months then the summer assignment represents .25 staff years (3 ÷ 12) and should be added to this staff member's staff year figure for the ensuing academic year.

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II - 5.12 Extra Compensation Any teaching duties above and beyond a full-time workload in any given term should be considered "extra compensation" and the equivalent overload staff years added to the total. For example, if a normal full-time workload is defined as 12 credit hours per semester and a faculty member teaches 15 hours the first semester and 12 hours the next, then this faculty member would end up with .844 staff years. 15 hours x 4.5 months + 12 hours x 4.5 months 12 hours 12 h ours . 12 months Overload staff years should not be computed on the amount of the adjustment to salary. II - 5.2 Allocation of Staff Years Staff year assignments are allocated to the various functions and cost categories in the following sequence. 1. A total staff year assignment is calculated for each staff member based on contractual

terms and employment records. 2. Total staff year assignments are allocated to the three primary functions (Instruction,

Organized Research, and Public Service) based on the assignments shown on the FAA. 3. Within the Instruction function, staff year assignments are allocated to the cost categories

direct instruction, indirect instruction and departmental research based on assignments in the FAA.

4. Within the direct instruction category, staff year assignments are assigned to courses based

on the credit hour value of the courses. In the cases of independent study and thesis supervision, however, the credit hour value may not accurately reflect the teaching effort required. In these cases it is preferable to use the proportion of independent study or thesis contact hours to total contact hours as the method of allocating staff years.

5. Within each course, staff year assignments are allocated to instructional levels based on the

distribution of credit hours. 6. Staff year assignments for indirect instruction and departmental research are allocated to

the instructional levels in direct proportion to the distribution in the direct instruction category.

7. Staff having departmental administration assignments have their staff years distributed to

the primary functions in proportion to the total departmental staff year assignments to those functions.

8. The portion of the departmental administration staff years assigned to the Instruction

function are distributed to student level based on the distribution of total staff years to level within the department.

9. Student credit hours, staff year assignments by student level, and staff year assignments for

Organized Research and Public Service are accumulated to the four-digit CIP level. 10. Student credit hours, staff year assignments by student level and staff year assignments for

Organized Research and Public Service are accumulated across terms to an annual total. For the purposes of the Cost Study, the summer term is considered the first term of the

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ensuing fiscal year. For example, credit hours and staff year assignments that begin in the summer term before July 1, 1995 would still be included as part of the fiscal year 1996 Cost Study.

II - 5.3 Example In Section II-4.0 a sample FAA form was shown for Dr. Schwann. Since all of Dr. Schwann's salary is paid from state funds and all of her assignments are attributable to one or more of the three primary functions, all of Dr. Schwann's staff year assignments for the year would be 1.0. Since Figure II-3 shows activity for only one semester (4½ months), it represents .375 staff years. At the bottom of her FAA, Dr. Schwann's department head has summarized her assignments in percentage terms. Dr. Schwann's .375 staff year assignment for this term would be allocated as follows: Instruction (0.95 x .375) = 0.356 Organized Research (0.00 x .375) = 0.000 Public Service (0.05 x .375) = 0.019 Total 0.375 Within the Instruction function, staff years for direct and indirect instruction and departmental research would be allocated as follows: Direct Instruction (0.40 x .375) = 0.150 Indirection Instruction (0.10 x .375) = 0.038 Departmental Research (0.45 x .375) = 0.168 Total 0.356 Dr. Schwann taught two courses this term. Her direct instruction staff year assignment would be distributed to these two courses as follows: Proportion of Total Staff Year Course Credits Credits Assignment Physiology 101 4 .571 086 Physiology 201 3 .429 064 The staff year assignment for Physiology 101 can be apportioned to the individual student levels based on credit hours as follows: Staff Year Instruction Level Credit Hours Percent Assignment Lower Division 0 - 000 Upper Division 124 67.4 058 Graduate I 60 32.6 028 Graduate II 0 - .000 Total 184 100.0 .086

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The staff year assignment for Physiology 201 can be apportioned to the individual student levels based on credit hours as follows: Staff Year Instruction Level Credit Hours Percent Assignment Lower Division 0 - .000 Upper Division 300 83.3 .053 Graduate I 60 16.7 .011 Graduate II 0 - .000 Total 360 100.0 .064 The direct instruction staff year assignments for Dr. Schwann's two courses total as follows: Staff Year Instruction Level Assignment Percent Lower Division 0.000 - Upper Division 0.111 74.0 Graduate I 0.039 26.0 Graduate II 0.000 - Total 0.150 100.0 Dr. Schwann's staff year assignments for indirect instruction and departmental research would be apportioned to the four instructional levels based upon the proportionate distribution in direct instruction. Indirect Departmental Instruction Level Instruction Research Lower Division 0.000 - Upper Division 0.028 0.124 Graduate I 0.010 0.044 Graduate II 0.000 - Total 0.038 0.168 Figure II-4 summarizes Dr. Schwann's semester assignments in staff-year terms. Individual staff-year assignments should be summarized to the four-digit CIP code level as described in the Appendix. II - 6.0 Submission Requirements Each public university will submit to the Illinois Board of Higher Education the annual staff year assignments summed to the four-digit CIP level. It is not necessary to submit a Faculty Credit Hour Study for each term. It also is not necessary to submit a record for which the staff years for all functions is zero. After staff year assignments have been accumulated, they should be rounded to two decimal places and the decimal points should not be punched. Information should be submitted in machine readable form. The tape should be a standard label, nine-track, 6250 b.p.i., with a logical record length of 80 (LRECL = 80). Block sizes should be approximately 4,000.

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Figure II-4 DR. SCHWANN'S STAFF YEAR ASSIGNMENTS FOR FALL SEMESTER Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Service 0.000 0.111 0.039 0.000 0.000 0.019 0.169 Indirect Instruction 0.000 0.028 0.010 0.000 - - 0.038 Departmental Research 0.000 0.124 0.044 0.000 - - 0.168 Total 0.000 0.263 0.093 0.000 0.000 0.019 0.375 II - 6.1 Record Format The following formats should be used to submit data for the Faculty Credit Hour Study. All fields should be right-justified. Columns Code Field 1-2 Institution 01 Chicago State University 02 Eastern Illinois University 03 Governors State University 04 Northeastern Illinois University 05 Western Illinois University 06 Illinois State University 07 Northern Illinois University 09 Southern Illinois University at Carbondale 10 Southern Illinois University at Edwardsville 11 University of Illinois at Chicago 08 University of Illinois at Springfield 12 University of Illinois at Urbana-Champaign 13 University of Illinois-General University 3 b Blank 4-7 # Four-digit CIP discipline codes 8 b Blank 9 Student Instruction Level 1 Lower Division 2 Upper Division 3 Graduate I 4 Graduate II 5 Total 10 b Blank 11-12 # Last two digits of fiscal year (e.g., FY1995 = 95)

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13 b Blank 14-20 # Total credit hours for appropriate student level 21-27* # Staff years for Direct Instruction 28-34* # Staff years for Indirect Instruction 35-41* # Staff years for Departmental Research 42-48* # Staff years for Departmental Administration 49-55* # Staff years for Total Departmental 56-62* # Staff years for Organized Research 63-69* # Staff years for Public Service 70-77** # Staff years for All Functions 78-80 b Blank *All of these fields are seven columns in length with two decimal positions implied. The decimal point should

not be punched. **This field is eight columns long with two decimal positions implied. The decimal point should not be

punched.

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CHAPTER III STUDENT AND COURSE FILES III - 1.0 Overview This chapter discusses the necessary student and course records for producing the Cost Study. The definitions of courses and credits to be included in the Cost Study are presented in Section III-2.0. Section III-3.0 describes which students should be counted for Cost Study purposes and provides definitions for student levels. The new Classification of Instructional Programs (CIP) which assigns CIP numbers to disciplines and programs is discussed in Section III-4.0. Section III-5.0 discusses the relationship between Cost Study credit hours and those reported in RAMP. Section III-6.0 describes the Induced Course Load Matrix (ICLM) and provides record formats for submitting the ICLM. III - 2.0 Courses and Credits Only courses taught by faculty and staff paid from state appropriated funds (excluding cost recovery funds) are to be included in the Cost Study. Credit hours generated from courses taught by faculty members whose salaries are paid from non-state appropriated funds, such as external grants or agencies, should be excluded from the Cost Study. All credit hours should be expressed as semester credit hours. Each quarter credit hour is equal to two-thirds of one semester credit hour. III - 3.0 Students Only students still enrolled by each term's census date should be counted in the Cost Study. The census date should be set no earlier than ten working days after the close of registration or the day which a student is obligated to pay at least 50 percent of that term's tuition and fees, whichever is later. If registration for off-campus and/or late starting classes is not held at the same time as registration for on-campus classes, then a separate census date for these classes should be established. This separate census date also should meet the 50 percent of tuition and fees obligation outlined above. Credit hours generated by students enrolled in courses that have been excluded from the Cost Study according to the guidelines in Section III-2.0 above, should not be included in the Cost Study. III - 3.1 Student Levels For the purposes of the Cost Study, student levels are defined as follows: 1. Lower Division: An undergraduate student who has completed fewer than 60 semester

hours (90 quarter hours) or the equivalent. According to this definition, then, Governors State University and the University of Illinois at Springfield should not report lower-division credits since they do not admit lower-division students. All students pursuing an associate degree should be classified as lower division regardless of the credit hours they have earned.

2. Upper Division: An undergraduate student who has completed at least 60 semester hours

(90 quarter hours). Also, students who may have graduated but who have not yet been admitted to the graduate division or to a professional college or school giving a post-baccalaureate degree should be considered upper division students.

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3. Graduate I: A student holding a bona fide bachelor's degree who has been admitted to the graduate division or to a professional school either as a candidate for a master's degree, or advanced degree or certificate, or as an unclassified graduate student.

4. Graduate II: A student holding a bona fide master's degree or certificate beyond the

master's degree, who has been admitted to a doctoral program. Also a student holding a bona fide bachelor's degree and who has been admitted to a doctoral program who has completed at least 30 semester credit hours toward the doctoral degree.

III - 4.0 Classification of Instructional Program The Cost Study uses the Classification of Instructional Programs published by the National Center for Education Statistics (NCES) to group disciplinary programs. This classification scheme assigns a two-digit number to 50 general disciplinary programs. Each program is further subdivided by assigning a four-digit number to specific curricula. The resulting six-digit number allows a level of specificity that can reflect the unique program mix at each institution. Annually, the Board of Higher Education provides institutions a listing of approved instructional programs in Illinois public universities and their corresponding six-digit codes. III - 4.1 Student Majors At some point, each student is officially accepted into a degree major. For the purposes of the Cost Study, a student's major is limited to one of the institution's authorized degree programs to which a six-digit CIP number has been assigned. Students who have not yet officially declared a major should be classified as undecided and given a CIP code of 000000. III - 6.0 Induced Course Load Matrix All of the student and course information used in the various reports of the Cost Study can be efficiently stored in the form of an ICLM. Essentially, an ICLM identifies the credit hours generated in any given discipline by student level and major. For example, an ICLM will identify how many credit hours in English were generated by lower division Physics majors. Figure III-1 presents an abbreviated ICLM. The disciplines are aggregated in the left column and the program majors are specified across the top. In this example, lower division linguistics majors took 360 credits from the English discipline and upper division chemistry majors took 23 credits from the psychology discipline. Looking at the sample ICLM from another perspective, 63 percent of the credit hours generated by chemistry majors were taken in the chemistry disciplines, while only 26 percent of the credit hours generated by business and management majors were in the business administration discipline. III - 6.1 Submitting the Induced Course Load Matrix Each institution will submit to the Illinois Board of Higher Education its ICLM for the preceding year. The matrix should contain all the credit hours generated and equal those reported on the discipline costs. The matrix also should show the four-digit codes indicating the disciplines offering the credit hours, the six-digit CIP codes of the majors taking the credits, the institution and year codes. It is not necessary to submit a record in which all credit hour fields are zero. This information should be submitted in machine readable form, either on punched cards or magnetic tape. If magnetic tape is submitted, it should be a standard label, nine-track, 6250 b.p.i. tape. The logical record length (LRECL) should be 80 and the block size of approximately 4,000.

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III - 6.2 Record Format The following codebook indicates in which fields information is to be punched. Columns Code Field 1-2 Institution Code 01 Chicago State University 02 Eastern Illinois University 03 Governors State University 04 Northeastern Illinois University 05 Western Illinois University 06 Illinois State University 07 Northern Illinois University 09 Southern Illinois University at Carbondale 10 Southern Illinois University at Edwardsville 11 University of Illinois at Chicago 08 University of Illinois at Springfield 12 University of Illinois at Urbana-Champaign 13 University of Illinois-General University 3 b Blank 4-7 # Four-digit CIP code representing discipline from which

credit hours emanated. 8 b Blank 9-14 # Six-digit CIP code representing majors taking the credit

hours from the above discipline. 15 Program sub-code. 16-17 # Last two digits of fiscal year (e.g., FY1995 = 95). 18 b Blank 19-26 # Number of credit hours taken by lower division majors

in the above discipline. 27 b Blank 28-35 # Number of credit hours taken by upper division majors

in the above discipline. 36 b Blank 37-44 # Number of credit hours taken by graduate I majors in

the above discipline. 45 b Blank 46-53 # Number of credit hours taken by graduate II majors in

the above discipline.

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54 b Blank 55-62 # Total number of credit hours taken by the above major

in the above discipline. 63-80 b Blank Note: All credit hour fields are eight columns in length and credit hours should be right-justified. III - 6.3 Example An abbreviated ICLM was presented in Figure III-1. Figure III-2 shows how selected credits from English majors (code 230101), Chemistry majors (code 400501), and Business and Management (code 520201) might be coded.

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CHAPTER IV ALLOCATING COSTS IV - 1.0 Introduction Chapter II demonstrated how the FAA is used to classify activities to the direct and indirect instruction and departmental research categories of Instruction and to direct services under Organized Research and Public Service. The other cost categories defined in Sections II-3.1 to II-3.8 are considered support categories. This chapter will discuss how the costs associated with these categories are allocated among the academic disciplines and instructional levels and presents a detailed case study of allocation procedures. IV - 2.0 Fiscal Year Expenditures Financial data reported in the Cost Study should include all expenditures from state appropriated funds for a fiscal year, including the lapse period (i.e., July 1 to September 30). Appropriations which have not been obligated by June 30 and expended by September 30 should not be included in the Cost Study but reported as "estimated lapsed appropriations" on Form C. Form C is a reconciliation of Cost Study expenditures to total estimated state appropriated operating expenditures. A sample Form C is shown in the Appendix. IV - 2.1 Excluded Expenditures The following classes of expenditures should be excluded from the Cost Study. 1. All nonappropriated funds, including state funds received through contracts with other

state agencies. 2. All funds appropriated for capital expenditures. 3. Retirement contributions. 4. Cost recovery revenues from self-supporting activities. 5. State and federal student financial aid, including awards, grants, fellowships, fee

payments and loans. Appropriated funds which pay for student employment, however, should be included in the Cost Study.

6. Costs for Workers Compensation. 7. Overhead costs for the University of Illinois Medical Center and the Schools of Medicine

and Dental Medicine at Southern Illinois University. 8. Costs associated with operations of university presses. Form C allows space for these excluded costs to be itemized. IV - 3.0 Summer Session Most summer sessions extend across two fiscal years. Since most costs incurred in a summer session are associated with appropriations of the succeeding fiscal year, the summer session is considered the first term of the fiscal year. For example, the summer session in 1995 is considered the first term in the fiscal year 1996 Cost Study. Thus, all costs and credit hours associated with the 1995 summer session are reported in the fiscal year 1996 Cost Study.

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IV - 4.0 Cost Reconciliation Forms Form C reconciles Cost Study expenditures to total estimated state appropriated operating expenditures. After a university's expenditures have been audited, Form D will reconcile the audited expenditures with the estimated expenditures reported on Form C. Copies of both forms are shown in the Appendix. If the difference between audited and estimated expenditures is greater than one percent, it may be necessary to recalculate and resubmit the Cost Study using final audited expenditure data. IV - 5.0 System Offices Costs for the system offices of the Board of Governors Universities, Board of Regents, and Southern Illinois University should be allocated to each university within the respective system based on that university's proportion of the total system appropriations. For example, if Eastern Illinois University received 20 percent of the amount appropriated to all universities in the Board of Governors system, then 20 percent of the appropriations for the governing board should be allocated to Eastern Illinois University. These costs should be assigned to the institutional support category. IV - 6.0 Allocating Costs Chapters I and II discuss the direct and support costs allocated among the three primary functions--Instruction, Organized Research and Public Service. In the Cost Study it is necessary to allocate these costs by discipline and to allocate the costs for instruction among the four enrollment levels. The remainder of this chapter will discuss how each cost category is to be allocated to the primary functions, the enrollment levels within the Instruction function, and the discipline. IV - 6.1 Allocating Salaries First, faculty and staff salaries should be allocated based on the completed FAA form discussed in Chapter II. Assignment of salaries to each of the primary functions is discussed below. IV - 6.2 Instruction As described in Chapter II, costs associated with the Instruction function are further divided in two ways. They are first separated into direct instruction, indirect instruction and departmental research depending on assignments. They also are divided into four instructional levels--lower division, upper division, graduate I and graduate II--based upon student enrollment in courses. (See Section II-2.0 to II-3.8 for definitions of the cost categories and Section III-3.1 for definitions of the four instructional levels.) IV - 6.21 Direct Instruction Allocation of salaries to direct instruction is based on the FAA. Within the direct instruction category, salaries are further allocated among the six-digit CIP codes of the courses taught. The salaries are assigned to each course based on that course's proportion of total credits taught by the faculty member. For example, Dr. Schwann was shown in Section II-4.6 to have provided seven credits worth of direct instruction in two physiology courses, both of which have a CIP code of 260706. Physiology 101 carried four credits so 4/7 of Dr. Schwann's direct instruction allocation went to Physiology 101. Physiology 201 carried three credits, so 3/7 of the direct instruction salary was allocated to this course. In the cases of independent study and thesis supervision, however, the credit hour value may not accurately reflect the teaching effort required. In these cases, it is preferable to use the proportion of independent study or thesis contact hours to total contact hours as the method for allocating direct instruction costs.

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Within each course, the allocation of salaries is allocated to instructional levels based on the enrollment within each level. To use Dr. Schwann as an example again, upper division students generated 124 of the 184 credit hours in Physiology 101; therefore, this proportion of the costs allocated to this course would be assigned to upper division. In most cases, however, the course offerings of a department may span more than one six-digit CIP code. In these cases salaries would be divided between two or more six-digit codes according to the content of each course being taught. In other cases, courses offered by one department might be taught by faculty who are assigned to another department. The allocation of salaries in such a case, again, should be to the six-digit CIP code associated with the course. The general rule is that the allocation of salaries follows the disciplinary orientation of the course regardless of its organizational affiliation. IV - 6.22 Indirect Instruction If it is possible to allocate indirect instruction salaries directly to a course, for example paper graders assigned to a specific course, then these costs would be distributed in the same manner as direct instruction (i.e, by enrollment in each institutional level). Indirect instruction salaries that cannot be allocated directly to a course should be accumulated for a discipline. The total indirect instruction salaries are then allocated across instructional levels based on the discipline's direct salary contribution. IV - 6.23 Departmental Research When a faculty member is assigned to do departmental research, that portion of his/her salary is allocated to the instructional levels based on the faculty member's distribution of direct salary for the year. IV - 6.3 - Organized Research Faculty salaries for direct organized research are determined from the FAA. If the faculty member holds a joint appointment in a separately organized research center or institute, the direct service salary should be assigned to the six-digit CIP code of the center or institute. If the direct service salary of the faculty member represents departmental cost sharing, then the salary should be assigned to the six-digit CIP code of the department to which the faculty member is assigned. IV - 6.4 Public Service Faculty salaries for public service should be allocated in the same manner as salaries for organized research. That is, joint appointment salaries should be assigned to the six-digit CIP code of the separately organized public service center or institute. Cost-sharing salaries should be assigned to the six-digit CIP code of the assigned department. IV - 7.0 Allocating Support Costs Once all direct costs have been allocated, the six-digit CIP codes should be aggregated to the first four digits. For example, the six-digit CIP codes 260401 and 260402, Cell Biology and Molecular Biology, respectively, would be aggregated into the same four-digit CIP code 2604. Support costs are allocated to the four-digit CIP code level. Every university is encouraged to attribute as many support costs as possible directly to units responsible for overhead charges through accurate charge-back systems. Travel, telecommunications, postage, automotive use, academic computing, photocopying and printing services are examples of support costs which should either be budgeted directly to organizational units or attributable to them based on actual usage. Overhead support costs assigned or budgeted to academic departments should be reported as Departmental Overheads. If the organizational unit to which overhead support costs are assigned or budgeted

IV-4

is not an academic department, they should be reported in the appropriate cost category of the Cost Study. For example, overhead support of a Student Affairs office should be reported under Student Services. IV - 7.1 Departmental Overheads Whenever possible, departmental overheads should be assigned to specific four-digit CIP codes. In some cases, departments may encompass more than one four-digit CIP code. If an overhead item cannot be assigned directly to one code, it should be allocated to all codes within a department on the basis of the subtotal of direct and indirect instruction and departmental research costs. Within any given four-digit CIP code, overhead costs should be allocated to instructional levels, organized research, and/or public service, based on the proportion of preceding subtotal costs. An example will help illustrate this procedure. The biology department at institution Y divides its course offerings between two four-digit CIP codes: 2601, general biology, and 2604, cell biology. In the last academic year, the biology department incurred $230,959 in department overhead. Figure IV-1 displays the direct costs for code 2601 and Figure IV-2 displays the direct costs for code 2604. The departmental overhead for the biology department can be allocated as follows. First, since CIP code 2601 accounted for 17.8 percent of the department costs on these first three categories, a similar proportion, or $41,111, of the departmental overheads would be allocated to this code, and the remaining $189,848 would be allocated to the code 2604. Second, within each code the departmental overhead would be allocated to the functions and levels based on their proportion of the subtotal costs (e.g., lower division in code 2601 would get 39.1 percent of the $41,111). Figures IV-3 and IV-4 show the direct costs plus allocated department overhead for the two codes in the biology department. IV - 7.2 College or School Overheads College or School Overheads should be identified for each school or college according to the definition in Chapter II. Any specific portion of these costs which can be specifically applied to an individual department should be allocated to that department in the same manner as departmental overheads (i.e., based on the proportion of costs at each instructional and function level). Of course, now the cost ratios will be calculated using the subtotal of direct instruction, indirect instruction, departmental research and departmental overheads (see Figures IV-3 and IV-4). Written documentation should accompany submitted costs detailing specific departmental allocations. Specifically, the documentation should specify the nature of the expenditure, the amount of the expenditure, the department to which the expenditure is being allocated, and the reason for using a non-standard allocation procedure. The college or school overheads which cannot be specifically allocated to departments should be totaled for all departments in the college and then prorated among the college's or school's four-digit CIP codes based on the ratio of instructional, organized research, or public service costs to total costs through the first four categories.

Figure IV-1 DIRECT COSTS FOR CIP CODE 2601 Instruction Other Costs by Function Lower Upper Graduate Graduate Organized Public Total Division Division I II Total Research Service All Functions Direct Salary Costs $113,929 $127,268 $ 51,075 - $ 292,272 - - $ 292,272 Indirect Salary Costs 4,611 5,024 1,975 - 11,611 - - 11,610 Departmental Research 4,058 2,805 2,594 - 9,457 - - 9,457 Subtotal $122,598 $135,097 $ 55,644 - $ 313,339 - - $ 313,339 Percent Distribution 39.1% 43.1% 17.8% - 100.0% - - 100.0% Figure IV-2 DIRECT COSTS FOR CIP CODE 2604 Instruction Other Costs by Function Lower Upper Graduate Graduate Organized Public Total Division Division I II Total Research Service All Functions Direct Salary Costs $105,033 $345,896 $195,688 $3,038 $ 649,655 $278,740 $105,712 $1,034,107 Indirect Salary Costs 48,600 88,095 51,638 2,671 191,004 - - 191,004 Departmental Research 39,316 111,579 64,813 1,545 217,253 - - 217,253 Subtotal $192,949 $545,570 $312,139 $7,254 $1,057,912 $278,740 $105,712 $1,442,364 Percent Distribution 13.4% 37.8% 21.6% 0.5% 73.3% 19.3% 7.4% 100.0%

Figure IV-3 DIRECT COSTS AND DEPARTMENTAL OVERHEADS FOR CIP CODE 2601 Instruction Other Costs by Function Lower Upper Graduate Graduate Organized Public Total Division Division I II Total Research Service All Functions Direct Salary Costs $113,929 $127,268 $ 51,075 - $ 292,272 - - $ 292,272 Indirect Salary Costs 4,611 5,024 1,975 - 11,610 - - 11,610 Departmental Research 4,058 2,805 2,594 - 9,457 - - 9,457 Departmental Overhead 16,074 17,719 7,318 41,111 - - 41,111 Subtotal $138,672 $152,816 $ 62,962 - $ 354,450 - - $ 354,450 Percent Distribution 39.1% 43.1% 17.8% - 100.0% - - 100.0% Figure IV-4 DIRECT COSTS AND DEPARTMENTAL OVERHEADS FOR CIP CODE 2604 Instruction Other Costs by Function Lower Upper Graduate Graduate Organized Public Total Division Division I II Total Research Service All Functions Direct Salary Costs $105,033 $345,896 $195,688 $3,038 $ 649,655 $278,740 $105,712 $1,034,107 Indirect Salary Costs 48,600 88,095 51,638 2,671 191,004 - - 191,004 Departmental Research 39,316 111,579 64,813 1,545 217,253 - - 217,253 Departmental Overhead 25,440 71,763 41,007 949 139,159 36,641 14,048 189,848 Subtotal $218,389 $617,333 $353,146 $8,203 $1,197,071 $315,381 $119,760 $1,632,212 Percent Distribution 13.4% 37.8% 21.6% 0.5% 73.3% 19.3% 7.4% 100.0%

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IV - 7.3 Overhead Support Unique to a Function The only organizational units reported as overhead unique to a function are those units which provide purely administrative support and service to the direct service units which are categorized into one functional area. Each primary function is discussed separately below. IV - 7.31 Overhead Unique to Instruction If possible, overhead support and service to the Instruction function should be allocated directly to a department or school through a charge-back or similar allocation system and reported as departmental or school overheads. Support costs which cannot be allocated and which meet the criteria of overhead unique to a function should be accumulated and allocated to the disciplines and instructional levels as follows. First, the accumulated overhead costs are allocated to the individual four-digit CIP codes based on each code's proportion of the total student credit hours generated. For example, if code 1202 generated 1.7 percent of the institution's credit hours, it would receive 1.7 percent of the accumulated overhead unique to the function of Instruction. Secondly, within each four-digit CIP code total overhead costs are allocated to each instructional level based on the level's share of student credit hours. For example, if within code 1202 lower division accounted for 37.5 percent of the student credit hours, then 37.5 percent of the overhead unique to the Instruction function allocated to code 1202 would be allocated to lower division. IV - 7.32 Overhead Unique to Organized Research Support costs which are unique to the Organized Research function and which cannot be allocated as department, college or school overheads should be accumulated and prorated among the four-digit discipline codes based on each code's proportion of the preceding Organized Research subtotal costs. For example, if CIP code 0301 accounted for 21.0 percent of the institution's subtotaled direct costs plus departmental, college and school overheads for Organized Research, then code 0301 would receive 21.0 percent of the accumulated overhead unique to Organized Research. IV - 7.33 Overhead Unique to Public Service Support costs which are unique to the Public Service function and which cannot be allocated as departmental, college or school overheads, should be accumulated and prorated among the four-digit discipline codes based on each code's proportion of the preceding subtotal costs for Public Service. This is the same procedure by which overhead unique to organized research is allocated, except that the Public Service subtotal is used. IV - 7.34 Organizational Units Service Two Functions In some cases, organizational units may have separate components, each of which serves a separate function. For example, a continuing education unit may serve Instruction (degree credit courses) and Public Service (non-degree credit courses). A standard allocation procedure may not result in a fair allocation of the costs of this unit to the two functions served. In this case, it will be necessary to split the costs of the unit among the two functions using a special analysis and documentation submitted with the Cost Study. IV - 7.4 Academic Support Academic Support is allocated on the basis of the total costs which have preceded it. As was the case with college or school overheads, academic support costs for the entire institution will be distributed among the disciplines and primary functions based on the four-digit CIP code's share of the subtotal of the costs already allocated (i.e., direct salary through overhead unique to a function). For example, if the subtotal costs for graduate I engineering were $5,365,427 and the subtotal for the institution was $29,807,928, then graduate I engineering would receive 18.0 percent of all academic overheads.

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IV - 7.5 Student Services Since student services do not apply to Organized Research and Public Service, its costs are distributed only over the four-digit CIP codes and the four instructional levels by proportion of student credit hours just as was overhead unique to the Instruction function. IV - 7.6 Independent Operations The Legislative Audit Commission (LAC) University Guidelines of 1982 prohibit the state subsidy of independent operations. Any costs reported in this category should be fully explained in terms of compliance with the Guidelines. IV - 7.7 Institutional Support State funds for institutional support are allocated to all three primary functions. They should be allocated to the four-digit CIP codes based on each code's proportion of the subtotaled costs which have preceded institutional support. Within each code, institutional support costs are to be prorated among the four Instruction levels, Organized Research, and Public Service based on proportion of costs. For example, if direct salary through independent operations costs for code 0401 total $4,289,462 and for the entire institution they totaled $37,641,299, then code 0401 would be allocated 11.4 percent of institutional support costs. If lower division instruction accounted for 42 percent of the $4,289,462, then lower division would receive 4.79 percent of the accumulated institutional support costs (.114 x .42 = .0479). IV - 7.8 Operation and Maintenance of Physical Plant State support for the operations and maintenance of the physical plant is allocated to each primary function and four-digit CIP discipline codes in the same manner as state support for institutional support is allocated. IV - 8.0 Summary of Allocations Direct costs are allocated to six-digit CIP codes based upon the FAA. After all direct costs are allocated, six-digit CIP codes are aggregated to the four-digit level. Support costs are allocated to the four-digit level based either on distribution of student credit hours or proportion of preceding subtotal costs depending on the cost category. Figure IV-5 summarizes the allocation basis for each cost category. IV - 9.0 Calculating Unit Costs Units costs are determined by dividing the accumulated costs within a given instructional level by the total student credit hours generated by students classified in that enrollment level. The total instructional unit costs are calculated by dividing the total costs across all instructional levels by the total number of credit hours generated.

Figure IV-5 BASIS OF ALLOCATION OF COSTS TO DISCIPLINES Instruction Other Costs by Function Lower Upper Graduate Graduate Organized Public Total Division Division I II Total Research Service All Functions 1. Direct Salary Costs FAA FAA FAA FAA FAA FAA FAA Σ 2. Indirect Salary Cost FAA/SCH FAA/SCH FAA/SCH FAA/SCH FAA - - Σ 3. Departmental Research FAA/SCH FAA/SCH FAA/SCH FAA/SCH FAA Σ 4. Departmental Overhead $ $ $ $ $ $ $ Σ 5. College or School Overhead $ $ $ $ $ $ $ Σ 6. Subtotal Department and College Costs Σ Σ Σ Σ Σ Σ Σ Σ 7. Overhead Support Unique to Function SCH SCH SCH SCH Σ $ $ Σ 8. Academic Support $ $ $ $ $ $ $ Σ 9. Student Services SCH SCH SCH SCH Σ - - Σ 10. Independent Operations SCH SCH SCH SCH Σ - - Σ 11. Institutional Support $ $ $ $ $ $ $ Σ 12. Subtotal with Univer- sity Overheads - - - - - - - - 13. O & M Physical Plant $ $ $ $ $ $ $ Σ 14. Total All Costs Σ Σ Σ Σ Σ Σ Σ Σ Legend: FAA - Faculty Activity Analysis $ - Percentage of Accumulated Costs SCH - Percentage of Student Credit Hours Σ - Summation

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CHAPTER V SUBMITTING DISCIPLINE AND PROGRAM COSTS V - 1.0 Overview This chapter provides directions concerning the content and format of information to be submitted to the Illinois Board of Higher Education staff. The first part provides codes and formats for submitting discipline costs. The next section discusses several reconciliation forms which are to be submitted with the discipline costs. The last section discusses the concept of program/major costs and describes how these costs are calculated. V - 2.0 Submitting Discipline Costs Every fall each university submits to the Illinois Board of Higher Education staff the preceding fiscal year's costs for each four-digit CIP discipline code for each primary function by cost category. Student credit hours also are submitted for each four-digit CIP discipline code by each instructional level. Form A, shown in the Appendix, shows the information to be submitted in schematic form. V - 2.1 Hard Copy Form A or a facsimile should be submitted for each four-digit discipline code as well as one for the institution total (CIP code 9999). V - 2.2 Machine Readable Copy In addition to the hard copy, a machine readable medium should be submitted containing the information on each Form A. Data should be submitted on a 3.5-inch diskette. The logical record length (LRECL) should be 80 and block size should be approximately 4,000. V - 2.3 Record Format The following codebook indicates in which fields information is to be punched. All fields should be right-justified. Columns Code Field 1-2 Institution Code 01 Chicago State University 02 Eastern Illinois University 03 Governors State University 04 Northeastern Illinois University 05 Western Illinois University 06 Illinois State University 07 Northern Illinois University 09 Southern Illinois University at Carbondale 10 Southern Illinois University at Edwardsville 11 University of Illinois at Chicago 08 University of Illinois at Springfield 12 University of Illinois at Urbana-Champaign 13 University of Illinois-General University 3-5 Line Codes 100, 201-214 (see Form A)

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6-9 Four-digit CIP codes (see the Appendix) 10 b Blank 11-18 # Lower Division 19-26 # Upper Division 27-34 # Graduate I 35-42 # Graduate II 43-51 # Total Instruction 52-59 # Organized Research 60-67 # Public Service 68-76 # Total All Functions 77-78 b Blank 79-80 Last two digits of fiscal year (e.g., FY1995 = 95) V - 3.0 Reconciliation Forms In addition to the hard copy and the machine readable form of the Cost Study, several reconciliation forms also must be submitted. The forms and more detailed instructions are presented in the Appendix. Form C, Reconciliation of Cost Study Expenditures to Total Estimated State-Appropriated Operating Expenditures - As discussed in Chapter IV, the expenditures in the Cost Study are based on actual expenditures from the fiscal year appropriations including lapse period (i.e., July 1 to September 30). Funds which have not been obligated by June 30 and expended by September 30 should not be reported in the Cost Study but reported as unexpended funds. The form also provides for details of costs excluded from the Cost Study. Form D, Reconciliation of Estimated Expenditures Used for the Cost Study to Final Audited Expenditures - When final expenditures for a fiscal year have been audited, Form D should be submitted comparing the final audited figure with line 7 on Form C, and showing the difference. If the variance between cost study expenditures and audited expenditures is greater than one percent it may be necessary to revise the data submitted earlier. V - 4.0 Majors All students enrolled in a university must eventually decide in which approved program they will pursue a degree. Usually, this decision is made in the sophomore or junior year. As was discussed in Chapter III, a student major should be kept as part of the student record. Thus, when student records are merged with course records to form the ICLM it is possible to identify the courses taken during the fiscal year by each student major. All approved programs are assigned a six-digit CIP code. A special code of 000000 is assigned to students who have not yet declared a major.

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V - 5.0 Calculating Program/Major Costs Program/major costs can be calculated from the submitted discipline costs and the ICLM. Discipline unit costs are calculated for each four-digit discipline code. The ICLM specifies the credit hours generated in each four-digit discipline code by each six-digit program/major code by instruction level. When the appropriate discipline unit costs are multiplied by the credit hours in the ICLM, the resulting dollar amounts represents the instructional costs for each instructional level for each program/major. Summing across instructional levels yields total instructional costs for each program/major. Once total instructional costs have been calculated for each program/major, unit costs may be calculated by dividing instructional costs by total student credit hours generated by each program/major. An example will help illustrate the procedure. Figure V-1 displays direct instruction unit costs for six disciplines at a hypothetical university. The figure shows that it costs $12.02 for every credit hour taken in Business and Commerce by lower division students. One credit hour of graduate I level instruction in Psychology costs $62.82. Figure V-1 DIRECT INSTRUCTION COST PER CREDIT HOUR BY DISCIPLINE AND STUDENT LEVEL Discipline Lower Division Upper Division Graduate I Graduate II English $25.00 $30.00 $40.00 $60.00 Psychology 8.57 17.07 62.82 80.40 Chemistry 15.85 27.41 62.00 76.35 Business and Commerce 12.02 18.08 32.45 60.33 Accounting 11.86 22.26 40.00 56.71 Business Economics 12.05 18.85 33.78 63.30 Knowing how many credit hours are taken in the various disciplines by students majoring in different programs allows the researcher to calculate total instructional costs by program majors. That is, if the researcher knows exactly how many credits in each discipline were generated by upper division Chemistry majors, the total instructional costs for upper division Chemistry majors could be calculated by multiplying those credits by the appropriate unit costs.

V-4

The ICLM discussed in Chapter III supplies the information on credit hours necessary to perform the above calculations. Figure III-1 shows that upper division Chemistry majors generated the following credit hours: Discipline Credit Hours English 13 Psychology 23 Chemistry 135 Business and Commerce 6 Accounting 3 Business Economics 3 Total 183 When the above credit hours are multiplied by the appropriate unit costs and summed, the instructional costs for upper division Chemistry majors is obtained. Figure V-2 displays the calculations. Figure V-2 CALCULATING INSTRUCTIONAL COSTS FOR UPPER DIVISION CHEMISTRY MAJORS Discipline Unit Cost x Credits = Costs English $30.00 13 $ 390.00 Psychology 17.07 23 392.61 Chemistry 27.41 135 3,700.35 Business and Commerce 18.08 6 108.48 Accounting 22.26 3 66.78 Business Economics 18.85 3 56.55 Summation 183 $4,714.77 Figure V-2 shows that it cost $4,714.77 to produce the 183 credit hours by upper division Chemistry majors. When similar calculations are performed for all majors at all levels of instruction, a complete set of program/major costs is obtained. Figure V-3 shows the results of such a calculation. These dollar totals are transformed into unit costs by dividing by the total credits for each student level in each major, shown in Figure III-1. For example, the direct instruction costs for the 372 credits taken by lower division linguistics majors is $9,112.71. Thus, the unit cost for lower division linguistics majors is $24.50 per credit hour. V - 6.0 Submission Requirements Since each institution submits its discipline costs and the annual ICLM, the Illinois Board of Higher Education staff will perform the necessary computations to generate the Program/Major Cost Study.

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V-6

VI-1

CHAPTER VI HYPOTHETICAL CASE STUDY VI - 1.0 Introduction Throughout the preceding chapters specific examples have been given to illustrate the procedures of the FAA (Section II-4.0), the allocation of staff years (Section II-5.3), building an ICLM (Section III-6.0) and allocating direct and support costs (Sections IV-6.21 and IV-7.1 through IV-7.7). The rest of this chapter will demonstrate how a hypothetical university, Illinois University, would complete all the components of the Cost Study. VI - 2.0 Student Records Table VI-1 presents a partial list of the student records kept by Illinois University. Each student is assigned a unique identifier which allows names and other confidential information to be stored elsewhere. By keeping information on terms and years, the student files can keep historical information as well. For the purposes of the Cost Study, the most important information is the credits completed, the major code, term and year, the course name or number and course credits. These data allow Illinois University to build ICLMs at a number of different detail levels. For the Cost Study, the submitted ICLM should contain credit hours generated in specific disciplines by specific majors by instructional level for an entire year. Table VI-2 shows what such an ICLM would look like if it were based only on the three hypothetical students in Table VI-1. Notice that all 27 credits are accounted for, even the three credits in statistics by the master's candidate in special education. Even though this student withdrew from the course, it was after the census date and the student had paid more than 50 percent of the tuition by the time the Cost Study was compiled. Obviously, Illinois University enrolls more than three students. Table VI-3 shows portions of the full ICLM for Illinois University. This ICLM will be used later to produce the program/major costs for Illinois University. VI - 3.0 Allocating Costs Space does not permit a detailed presentation of how the FAA for all faculty members at Illinois University is used to allocate direct service costs. The researcher should refer to Sections IV-6.2 through IV-6.4 for the specific example of using the FAA for such purposes. The remainder of this section will demonstrate how support costs are allocated among disciplines. VI - 3.1 Departmental Overhead Tables VI-4 through VI-6 show the direct costs for the departments of business and management, clinical psychology and zoology. In the last academic year the business and management department generated $148,783 in departmental overhead, which would be apportioned to the instructional levels according to the percentages shown in Table VI-4. Thus, lower division would receive $23,061 (.155 x $148,783), upper division would receive $109,653 (.737 x $148,783), and graduate I would receive $16,069 (.108 x $148,783). Table VI-7 shows the direct costs plus departmental overhead for business and management. The clinical psychology and zoology departments generated $38,382 and $169,370, respectively, in departmental overheads. These costs would be allocated in the same way as those for business and management. Tables VI-8 and VI-9 show the resulting subtotals for each department.

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Table VI-1 STUDENT RECORDS FOR ILLINOIS UNIVERSITY Student 1 Student 2 Student n Unique Identifier 546729251 729765413 999887777 Degree Sought B.A. B.A. M.A. Credits Completed 24 101 12 Grade Points 75 247 36 Major 000000 140201 131001 Term I I I Year 1995 1995 1995 Course #1 English 101 Engineering 202 Spec. Ed. 545 Credits 3 3 3 Grade A C B Course #2 Spanish 101 Computer Sci. 205 Educ. Admin. 509 Credits 3 3 3 Grade B B B Course #3 Philosophy 101 English 101 Statistics 501 Credits 3 3 3 Grade A C Withdrew

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TABLE VI-4 DIRECT SERVICE COSTS FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $67,962 $347,457 $51,717 -0- -0- -0- $467,136 Indirect Instruction 6,360 6,360 -0- -0- -0- -0- 12,720 Departmental Research -0- 790 306 -0- -0- -0- 1,096 Subtotal $74,322 $354,607 $52,023 -0- -0- -0- $480,952 Percent of Total 15.5% 73.7% 10.8% - - - 100.0% TABLE VI-5 DIRECT SERVICE COSTS FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $57,686 $86,304 $46,315 -0- $4,142 $2,256 $196,703 Indirect Instruction 3,701 3,701 -0- -0- -0- -0- 7,402 Departmental Research -0- 533 291 -0- -0- -0- 824 Subtotal $61,387 $90,538 $46,606 -0- $4,142 $2,256 $204,929 Percent of Total 30.0% 44.2% 22.7% - 2.0% 1.1% 100.0%

TABLE VI-6 DIRECT SERVICE COSTS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $184,561 $217,506 $72,626 -0- $10,362 $4,506 $489,561 Indirect Instruction 33,200 17,408 -0- -0- -0- -0- 50,608 Departmental Research -0- 1,698 -0- -0- -0- -0- 1,698 Subtotal $217,761 $236,612 $72,626 -0- $10,362 $4,506 $541,867 Percent of Total 40.2% 43.7% 13.4% - 1.9% 0.8% 100.0%

TABLE VI-7 DIRECT SERVICE COSTS AND DEPARTMENTAL OVERHEADS FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $67,962 $347,457 $51,717 -0- -0- -0- $467,136 Indirect Instruction 6,360 6,360 -0- -0- -0- -0- 12,720 Departmental Research -0- 790 306 -0- -0- -0- 1,096 Departmental Overhead 23,061 109,653 16,069 -0- -0- -0- 148,783 Subtotal $97,383 $464,260 $68,092 -0- -0- -0- $629,735 Percent of Total 15.5% 73.7% 10.8% - - - 100.0%

VI-8

TABLE VI-8 DIRECT SERVICE COSTS AND DEPARTMENTAL OVERHEADS FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $57,686 $ 86,304 $46,315 -0- $4,142 $2,256 $196,703 Indirect Instruction 3,701 3,701 -0- -0- -0- -0- 7,402 Departmental Research -0- 533 291 -0- -0- -0- 824 Departmental Overhead 11,515 16,964 8,713 -0- 768 422 38,382 Subtotal $72,902 $107,502 $55,319 -0- $4,910 $2,678 $243,311 Percent of Total 30.0% 44.2% 22.7% - 2.0% 1.1% 100.0%

TABLE VI-9 DIRECT SERVICE COSTS AND DEPARTMENTAL OVERHEADS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $184,561 $217,506 $72,626 -0- $10,362 $4,506 $489,561 Indirect Instruction 33,200 17,408 -0- -0- -0- -0- 50,608 Departmental Research -0- 1,698 -0- -0- -0- -0- 1,698 Departmental Overhead 68,087 74,015 22,696 -0- 3,218 1,354 169,370 Subtotal $285,848 $310,627 $95,322 -0- $13,580 $5,860 $711,237 Percent of Total 40.2% 43.7% 13.4% - 1.9% 0.8% 100.0%

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VI - 3.2 College or School Overheads The business and management department is part of the School of Business at Illinois University while the clinical psychology and zoology departments are part of the College of Letters and Science. The School of Business reported an overhead of $41,161 last academic year, only $1,242 of which it could directly attribute to the business and management department. This $1,242 would be spread across the three pertinent instruction levels according to the percentages at the bottom of Table VI-7. The remaining $39,919 are allocated to each instructional level based on its ratio of costs to total costs as has already been allocated. The School of Business subtotal for direct instruction, direct service to organized research and public service, indirect instruction, departmental research and departmental overheads is $1,096,274. Thus, business and management would receive $24,173 in college or school overheads (($629,735 ÷ $1,096,274) x $39,919 + $1,242). This amount would then be distributed among the three levels of instruction according to the percent distribution shown at the bottom of Table VI-7. Table VI-10 summarizes the allocated costs through college or school overheads and shows the proportionate distribution among instructional levels. The College of Letters and Sciences at Illinois University had $238,253 in overheads after allocating everything that could be directed to specific departments. Neither the clinical psychology department nor the zoology department received any direct allocation. The college's subtotal of direct instruction, direct service to organized research and public service, indirect instruction and departmental research was $2,888,694. Each department's share of these overhead costs is calculated in the same manner as was business and management and the results are shown in Tables VI-11 and VI-12. VI - 3.3 Overhead Unique to a Function Illinois University generated $603,376 in overhead unique to a function. Of this amount, $434,837 were in overheads unique to the instruction function, $122,881 were in overhead unique to organized research, and $45,688 were in overhead unique to public service. In Section IV-7.3 it was explained that overheads unique to instruction would be distributed to individual disciplines based on student credit hours. Table VI-13 summarizes the credit hours generated in business and management, clinical psychology and zoology as well as the total university's. Table VI-14 shows the percent of the total institution's credit hours by the same three disciplines and levels of instruction. Each discipline would receive its portion of the overhead unique to the instruction function based on the percentages shown in Table VI-14. For example, lower division business and management would receive $30,917 (.0711 x $434,837) and upper division clinical psychology would receive $5,914 (.0136 x $434,837). Section IV-7.3 also explained that overheads unique to organized research and public service are to be allocated to individual disciplines based upon the discipline's proportion of preceding organized research and public service costs. Illinois University expended $668,791 in organized research in the cost categories preceding overhead unique to a function. The same expenditure for public service was $224,933. Since business and management had no costs in either function, it would receive no allocation. Clinical psychology expended $5,311 in organized research, or 0.8 percent of the institution total. Thus, 0.8 percent of the $122,881 in overhead unique to organized research, or $983, would be allocated to clinical psychology. Tables VI-15 through VI-17 show the department and college subtotals plus the overhead unique to a function allocations for the three example disciplines.

TABLE VI-10 DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND SCHOOL OVERHEADS FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $ 67,962 $347,457 $51,717 -0- -0- -0- $467,136 Indirect Instruction 6,360 6,360 -0- -0- -0- -0- 12,720 Departmental Research -0- 790 306 -0- -0- -0- 1,096 Departmental Overhead 23,061 109,653 16,069 -0- -0- -0- 148,783 College or School Overhead 3,747 17,816 2,610 -0- -0- -0- 24,173 Subtotal $101,130 $482,076 $70,702 -0- -0- -0- $653,908 Percent of Total 15.5% 73.7% 10.8% - - - 100.0%

TABLE VI-11 DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND COLLEGE OVERHEADS FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $57,686 $ 86,304 $46,315 -0- $4,142 $2,256 $196,703 Indirect Instruction 3,701 3,701 -0- -0- -0- -0- 7,402 Departmental Research -0- 533 291 -0- -0- -0- 824 Departmental Overhead 11,515 16,964 8,713 -0- 768 422 38,382 College or School Overhead 6,020 8,870 4,555 -0- 401 221 20,067 Subtotal $78,922 $116,372 $59,874 -0- $5,311 $2,899 $263,378 Percent of Total 30.0% 44.2% 22.7% - 2.0% 1.1% 100.0%

TABLE VI-12 DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND COLLEGE OVERHEADS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $184,561 $217,506 $72,626 -0- $10,362 $4,506 $489,561 Indirect Instruction 33,200 17,408 -0- -0- -0- -0- 50,608 Departmental Research -0- 1,698 -0- -0- -0- -0- 1,698 Departmental Overhead 68,087 74,015 22,696 -0- 3,218 1,354 169,370 College or School Overhead 23,582 25,635 7,860 -0- 1,115 469 58,661 Subtotal $309,430 $336,262 $103,182 -0- $14,695 $6,329 $769,898 Percent of Total 40.2% 43.7% 13.4% - 1.9% 0.8% 100.0%

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TABLE VI-13 STUDENT CREDIT HOURS IN SELECTED DISCIPLINES Lower Upper Graduate Graduate Division Division I II Total Business and Management 11,148 14,047 3,937 -0- 29,132 Clinical Psychology 2,465 2,131 2,657 -0- 7,253 Zoology 7,177 2,749 978 -0- 10,904 All Disciplines 74,681 69,017 12,986 -0- 156,684 TABLE VI-14 PROPORTION OF STUDENT CREDIT HOURS BY DISCIPLINE AND LEVEL OF INSTRUCTION Lower Upper Graduate Graduate Division Division I II Total Business and Management 7.11 8.97 2.51 0.0 18.59 Clinical Psychology 1.57 1.36 1.70 0.0 4.63 Zoology 4.58 1.75 0.62 0.0 6.95 All Disciplines 47.66 44.05 8.29 0.0 100.00

TABLE VI-15 DEPARTMENTAL AND COLLEGE COSTS AND OVERHEAD UNIQUE TO A FUNCTION FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $101,130 $482,076 $70,702 -0- -0- -0- $653,908 Overhead Unique to a Function 30,917 39,005 10,914 -0- -0- -0- 80,836 Subtotal $132,047 $521,081 $81,616 -0- -0- -0- $734,744 Percent of Total 18.0% 70.9% 11.1% - - - 100.0% TABLE VI-16 DEPARTMENTAL AND COLLEGE COSTS AND OVERHEAD UNIQUE TO A FUNCTION FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $78,922 $116,372 $59,874 -0- $5,311 $2,899 $263,378 Overhead Unique to a Function 6,827 5,914 7,392 -0- 983 594 21,710 Subtotal $85,749 $122,286 $67,266 -0- $6,294 $3,493 $285,088 Percent of Total 30.1% 42.9% 23.6% - 2.2% 1.2% 100.0%

TABLE VI-17 DEPARTMENTAL AND COLLEGE COSTS AND OVERHEAD UNIQUE TO A FUNCTION FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $309,430 $336,262 $103,182 -0- $14,695 $6,329 $769,898 Overhead Unique to a Function 19,916 7,610 2,696 -0- 2,703 1,279 34,204 Subtotal $329,346 $343,872 $105,878 -0- $17,398 $7,608 $804,102 Percent of Total 41.0% 42.8% 13.2% - 2.2% 0.9% 100.0%

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VI - 3.4 Academic Support In Section IV-7.4 it was explained how academic support costs are distributed to the disciplines based on the subtotal of costs which have preceded it. At Illinois University $5,520,518 are allocated in the departmental and college categories plus the overhead unique to a function category. Another $640,890 are classified as Academic Support. Tables VI-15 through VI-17 show that business and management, clinical psychology and sociology have $734,745, $285,088 and $804,102, respectively, in the cost category through and including overhead unique to a function. These amounts represent 13.3, 5.2, and 14.6 percent, respectively, of Illinois' allocation up to this point. Consequently, a similar proportion of the academic support costs would be allocated to each discipline. Business and management would receive $85,238. Clinical psychology would receive $33,327. Zoology would receive $93,570. Each of these disciplines would then allocate these amounts to the four levels of instruction, organized research, and public service in proportion to the preceding subtotal costs. Tables VI-18 through VI-20 show the results of these operations. VI - 3.5 Student Services Since student services do no apply to organized research or public service, its costs are distributed only over the four instructional levels by proportion of student credit hours just as was overhead unique to the instruction function. Illinois University expended $557,777 in support of student services. These monies would be allocated to the three disciplines based on the percentages shown on Table VI-14. VI - 3.6 Independent Operations Like student services, independent operations do not apply to organized research and public service. Also like student services, the institution's expenditures for independent operations are distributed to the disciplines based on student credit hours. Illinois University expended $105,276 for independent operations last academic year. Tables VI-21 through VI-23 show the addition of student services and independent operations costs to the three disciplines. The Legislative Audit Commission (LAC) University Guidelines of 1982 prohibit the state subsidy of independent operations. Any costs reported in this category should be fully explained in terms of compliance with the Guidelines. VI - 3.7 Institutional Support As was described in Section IV-7.7, institutional support is allocated to the disciplines based on its share of the subtotaled costs from the preceding cost categories. Tables VI-21 through VI-23 show the subtotals for the three example disciplines by function. For the entire university, the subtotal of preceding costs is $2,117,603 for lower division, $3,582,826 for upper division, $1,011,762 for graduate I, $0 for graduate II, $76,689 for organized research, and $35,581 for public service for a total of $6,824,461. Illinois University expended $892,998 for institutional support last academic year. Based on the above subtotals, then, $277,094 would be attributed to lower division ($2,117,603 ÷ $6,824,461 x $892,998). Upper division would receive $468,822. Graduate I would receive $132,392, organized research would be allocated $10,034 and public service would get $4,656. After allocating these monies to the different functions and instructional levels, the subtotals are distributed back to the disciplines based on their share of the function's total. For example, business and management's subtotal for the preceding cost categories for lower division is $194,571. This represents 9.19 percent of the institution's lower division subtotal ($194,571 ÷ $2,117,603). Therefore, 9.19 percent of institutional support for lower division would be allocated to business and management, or $25,463. Tables VI-24 through VI-26 show the results of applying this procedure to all three example disciplines.

TABLE VI-18 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION AND ACADEMIC SUPPORT FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $101,130 $482,076 $70,702 -0- -0- -0- $653,908 Overhead Unique to a Function 30,917 39,005 10,914 -0- -0- -0- 80,836 Academic Support 15,381 60,244 9,613 -0- -0- -0- 85,238 Subtotal $147,428 $581,325 $91,229 -0- -0- -0- $819,982 Percent of Total 18.0% 70.9% 11.1% - - - 100.0% TABLE VI-19 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION AND ACADEMIC SUPPORT FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $78,922 $116,372 $59,874 -0- $5,311 $2,899 $263,378 Overhead Unique to a Function 6,827 5,914 7,392 -0- 983 594 21,710 Academic Support 10,254 14,100 7,691 -0- 641 641 33,327 Subtotal $96,003 $136,386 $74,957 -0- $6,935 $4,134 $318,415 Percent of Total 30.1% 42.9% 23.6% - 2.2% 1.2% 100.0%

TABLE VI-20 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION AND ACADEMIC SUPPORT FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $309,430 $336,262 $103,182 -0- $14,695 $6,329 $769,898 Overhead Unique to a Function 19,916 7,610 2,696 -0- 2,703 1,279 34,204 Academic Support 38,261 39,927 12,818 -0- 1,923 641 93,570 Subtotal $367,607 $383,799 $118,696 -0- $19,321 $8,249 $897,672 Percent of Total 41.0% 42.8% 13.2% - 2.2% 0.8% 100.0%

TABLE VI-21 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION, ACADEMIC SUPPORT, STUDENT SERVICES, AND INDEPENDENT OPERATIONS FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $101,130 $482,076 $ 70,702 -0- -0- -0- $653,908 Overhead Unique to a Function 30,917 39,005 10,914 -0- -0- -0- 80,836 Academic Support 15,381 60,244 9,613 -0- -0- -0- 85,238 Student Services 39,658 50,033 14,000 -0- -0- -0- 103,691 Independent Operations 7,485 9,443 2,642 -0- -0- -0- 19,570 Subtotal $194,571 $641,801 $107,871 -0- -0- -0- $943,243 Percent of Total 20.6% 68.0% 11.4% - - - 100.0%

TABLE VI-22 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION, ACADEMIC SUPPORT, STUDENT SERVICES, AND INDEPENDENT OPERATIONS FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $ 78,922 $116,372 $59,874 -0- $5,311 $2,899 $263,378 Overhead Unique to a Function 6,827 5,914 7,392 -0- 983 594 21,710 Academic Support 10,254 14,100 7,691 -0- 641 641 33,327 Student Services 8,757 7,586 9,482 -0- -0- -0- 25,825 Independent Operations 1,653 1,432 1,790 -0- -0- -0- 4,875 Subtotal $106,413 $145,404 $86,229 -0- $6,935 $4,134 $349,115 Percent of Total 30.5% 41.6% 24.7% - 2.0% 1.2% 100.0%

TABLE VI-23 DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION, ACADEMIC SUPPORT, STUDENT SERVICES, AND INDEPENDENT OPERATIONS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal Departmental and College Costs $309,430 $336,262 $103,182 -0- $14,695 $6,329 $769,898 Overhead Unique to a Function 19,916 7,610 2,696 -0- 2,703 1,279 34,204 Academic Support 38,261 39,927 12,818 -0- 1,923 641 93,570 Student Services 25,546 9,761 3,458 -0- -0- -0- 38,765 Independent Operations 4,822 1,842 653 -0- -0- -0- 7,317 Subtotal $397,975 $395,402 $122,807 -0- $19,321 $8,249 $943,754 Percent of Total 42.2% 41.9% 13.0% - 2.1% 0.9% 100.0%

TABLE VI-24 INSTITUTIONAL SUPPORT COSTS BY FUNCTION FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $194,571 $640,801 $107,871 -0- -0- -0- $ 943,243 Institutional Support 25,897 83,942 14,288 -0- -0- -0- 124,127 Subtotal $220,468 $724,743 $122,159 -0- -0- -0- $1,067,370 Percent of Total 20.7% 67.9% 11.4% - - - 100.0% TABLE VI-25 INSTITUTIONAL SUPPORT COSTS BY FUNCTION FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $106,413 $145,404 $86,229 -0- $6,935 $4,134 $349,115 Institutional Support 14,288 18,753 11,609 -0- 893 893 46,436 Subtotal $120,701 $164,157 $97,838 -0- $7,828 $5,027 $395,551 Percent of Total 30.5% 41.5% 24.7% - 2.0% 1.3% 100.0%

TABLE VI-26 INSTITUTIONAL SUPPORT FOR COSTS BY FUNCTION FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $397,975 $395,402 $122,807 -0- $19,321 $8,249 $ 943,754 Institutional Support 51,794 51,794 16,074 -0- 2,679 893 123,234 Subtotal $449,769 $447,196 $138,881 -0- $22,000 $9,142 $1,066,988 Percent of Total 42.2% 41.9% 13.0% - 2.1% 0.9% 100.0%

TABLE VI-27 OPERATION AND MAINTENANCE OF PHYSICAL PLANT COSTS ALLOCATED TO BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $220,468 $724,743 $122,159 -0- -0- -0- $1,067,370 Operation and Maintenance of Physical Plant 44,054 142,797 24,306 -0- -0- -0- 211,157 Subtotal $264,522 $867,540 $146,465 -0- -0- -0- $1,278,527 Percent of Total 20.7% 67.9% 11.5% - - - 100.0% TABLE VI-28 OPERATION AND MAINTENANCE OF PHYSICAL PLANT COSTS ALLOCATED TO CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $120,701 $164,157 $ 97,838 -0- $7,828 $5,027 $395,551 Operation and Maintenance of Physical Plant 24,306 31,901 19,748 -0- 1,519 1,519 78,993 Subtotal $145,007 $196,058 $117,586 -0- $9,347 $6,546 $474,544 Percent of Total 30.6% 41.3% 24.8% - 2.0% 1.4% 100.0%

TABLE VI-29 OPERATION AND MAINTENANCE OF PHYSICAL PLANT COSTS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Subtotal of Preceding Costs $449,769 $447,196 $138,881 -0- $22,000 $ 9,142 $1,066,988 Operation and Maintenance of Physical Plant 88,108 88,108 27,344 -0- 4,557 1,519 209,636 Subtotal $537,877 $535,304 $166,225 -0- $26,557 $10,661 $1,276,624 Percent of Total 42.1% 41.9% 13.0% - 2.1% 0.8% 100.0%

TABLE VI-30 SUMMARY OF COSTS FOR BUSINESS AND MANAGEMENT Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $ 67,962 $347,457 $ 51,717 -0- -0- -0- $ 467,136 Indirect Instruction 6,360 6,360 -0- -0- -0- -0- 12,720 Departmental Research -0- 790 306 -0- -0- -0- 1,096 Departmental Overhead 23,061 109,653 16,069 -0- -0- -0- 148,783 College or School Overhead 3,747 17,816 2,610 -0- -0- -0- 24,173 Overhead Unique to a Function 30,917 39,005 10,914 -0- -0- -0- 80,836 Academic Support 15,381 60,244 9,613 -0- -0- -0- 85,238 Student Services 39,658 50,033 14,000 -0- -0- -0- 103,691 Independent Operations 7,485 9,443 2,642 -0- -0- -0- 19,570 Institutional Support 25,897 83,942 14,288 -0- -0- -0- 124,127 Operation and Maintenance of Physical Plant 44,054 142,797 24,306 -0- -0- -0- 211,157 Total $264,522 $867,540 $146,465 -0- -0- -0- $1,278,527

TABLE VI-31 SUMMARY OF COSTS FOR CLINICAL PSYCHOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $ 57,686 $ 86,304 $ 46,315 -0- $4,142 $2,256 $196,703 Indirect Instruction 3,701 3,701 -0- -0- -0- -0- 7,402 Departmental Research -0- 533 291 -0- -0- -0- 824 Departmental Overhead 11,515 16,964 8,713 -0- 768 422 38,382 College or School Overhead 6,020 8,870 4,555 -0- 401 221 20,067 Overhead Unique to a Function 6,827 5,914 7,392 -0- 983 594 21,710 Academic Support 10,254 14,100 7,691 -0- 641 691 33,327 Student Services 8,757 7,586 9,482 -0- -0- -0- 25,825 Independent Operations 1,653 1,432 1,790 -0- -0- -0- 4,875 Institutional Support 14,288 18,753 11,609 -0- 893 893 46,436 Operation and Maintenance of Physical Plant 24,306 31,901 19,748 -0- 1,519 1,519 78,993 Total $145,007 $196,058 $117,586 -0- $9,347 $6,546 $474,544

TABLE VI-32 SUMMARY OF COSTS FOR ZOOLOGY Instruction Lower Upper Graduate Graduate Organized Public Division Division I II Research Service Total Direct Instruction or Service $184,561 $217,506 $ 72,626 -0- $10,362 $ 4,506 $ 489,561 Indirect Instruction 33,200 17,408 -0- -0- -0- -0- 50,608 Departmental Research -0- 1,698 -0- -0- -0- -0- 1,698 Departmental Overhead 68,087 74,015 22,696 -0- 3,218 1,354 169,370 College or School Overhead 23,582 25,635 7,860 -0- 1,115 469 58,661 Overhead Unique to a Function 19,916 7,610 2,696 -0- 2,703 1,279 34,204 Academic Support 38,261 39,927 12,818 -0- 1,923 641 93,570 Student Services 25,546 9,761 3,458 -0- -0- -0- 38,765 Independent Operations 4,822 1,842 653 -0- -0- -0- 7,317 Institutional Support 51,794 51,794 16,074 -0- 2,679 893 123,234 Operation and Maintenance of Physical Plant 88,108 88,108 27,344 -0- 4,557 1,519 209,636 Total $537,877 $535,304 $166,225 -0- $26,557 $10,661 $1,276,624

TABLE VI-33 INSTRUCTIONAL UNIT COSTS Lower Upper Graduate Graduate Division Division I II Total Business and Management Student Credit Hours 11,148 14,047 3,937 -0- 29,132 Direct Instruction Costs Per Credit Hour $ 6.10$ 24.74 $ 13.14-0- $ 16.04 Departmental and College Costs Per Credit Hour $ 9.07$ 34.32 $ 17.96-0- $ 22.45 Total Costs Per Credit Hour $23.73$ 61.76 $ 37.20-0- $ 43.89 Clinical Psychology Student Credit Hours 2,465 2,131 2,657 -0- 7,253 Direct Instruction Costs Per Credit Hour $23.40$ 40.50 $ 17.43-0- $ 27.12 Departmental and College Costs Per Credit Hour $32.02$ 54.61 $ 22.53-0- $ 36.31 Total Costs Per Credit Hour $58.83$ 92.00 $ 44.26-0- $ 65.43 Zoology Student Credit Hours 7,177 2,749 978 -0- 10,904 Direct Instruction Costs Per Credit Hour $25.72$ 79.12 $ 74.26-0- $ 44.90 Departmental and College Costs Per Credit Hour $43.11$122.32 $105.50-0- $ 70.61 Total Costs Per Credit Hour $74.94$194.73 $169.96-0- $117.08

TABLE VI-34 UNIT COSTS FOR ALL OTHER DISCIPLINES Lower Upper Graduate Graduate Division Division I II Total Student Credit Hours 53,891 50,090 5,414 -0- 109,395 Total Costs Per Credit Hour $35.78 $65.14 $170.19 -0- $55.88

VI-32

TABLE VI-35 EXAMPLE PROCEDURE FOR CALCULATING PROGRAM/MAJOR COSTS FROM DISCIPLINE COSTS AND THE INDUCED COURSE LOAD MATRIX FOR LOWER DIVISION GENERAL BIOLOGY MAJORS Discipline Credits Rate Costs Business and Management 3 x $23.73 = $ 71.19 Accounting 0 x 35.78 = -0- Computer Science 51 x 35.78 = 1,824.78 American Literature 120 x 35.78 = 4,293.60 Zoology 695 x 74.94 = 52,083.30 Cell Biology 581 x 35.78 = 20,788.18 Mathematics 287 x 35.78 = 10,268.86 Statistics 63 x 35.78 = 2,254.14 Philosophy 9 x 35.78 = 322.02 Clinical Psychology 21 x 58.83 = 1,235.43 All Other Disciplines 400 x 35.78 = 14,312.00 Total 2,230 $107,453.50

VI-33

VI - 3.8 Operation of Maintenance of Physical Plant Operation and Maintenance of Physical Plant is allocated in the same way as institutional support (i.e., based on the proportion of costs before Operation and Maintenance are included). Through the preceding cost categories, Illinois University expended $2,394,697 for lower division instruction, $4,051,648 for upper division instruction, $1,444,154 for graduate I instruction, $0 for graduate II instruction, $86,723 for organized research, and $40,237 for public service for a total of $7,717,459. It also expended $1,519,112 for Operation and Maintenance of Physical Plant. Therefore, lower division instruction would be allocated $471,374 of Operation and Maintenance ($2,394,697 ÷ $7,717,459 x $1,519,112). Upper division instruction would receive $797,530, graduate I instruction would be $225,216, no dollars would be allocated to graduate II, organized research would receive $170,071, and public service would receive $7,921. These amounts, in turn, would be distributed to the disciplines based on their share of the functions costs. For example, business and management's lower division subtotal costs to this point are 9.21 percent of all lower division instructional costs ($220,468 ÷ $2,394,697), so it would receive a similar share of lower division operation and maintenance costs, or $44,054. Tables VI-27 through VI-29 show the results of applying these procedures to all three example disciplines. VI - 3.9 Summary of Allocations Tables VI-30 through VI-32 summarize the direct and support costs for the three example disciplines. VI - 4.0 Instructional Unit Costs To calculate instructional unit costs divide the costs in Tables VI-30 through VI-32 by the credit hours shown in Table VI-13. For example, total lower division costs for clinical psychology are $145,007. This discipline also generated 2,465 lower division credit hours, so the resulting lower division unit costs are $58.83 per credit hour. Table VI-33 displays the instructional unit costs for the three example disciplines at three different levels of aggregation: direct instruction, the subtotal of department and college costs, and total costs. VI - 5.0 Program Costs Once unit costs are calculated for all disciplines, program costs can be calculated by multiplying the unit costs by the appropriate cells of the ICLM. Program costs represent the costs associated with the unique mix of courses taken by different majors. Before this procedure can be demonstrated for Illinois University, unit costs for each other discipline would have to be calculated. For demonstration purposes only, all other disciplines have been combined into a single group and the total unit costs shown in Table VI-34. Any credit hours taken in disciplines other than the three example disciplines, then, will have this combined rate applied to them in this example. To calculate the total costs associated with lower division general biology majors, the entries in the first column in the ICLM (Figure VI-2) would be multiplied by the appropriate credit hour rate and then summed as is shown on Table VI-35. Since lower division general biology majors generated 2,230 credit hours, their unit costs are $48.19 per credit hour. That is, on the average it costs Illinois University $48.19 to provide a credit hour's worth of instruction to lower division general biology majors. Similar calculations could be performed for the other levels of general biology as well as the other majors.

VI-34

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APPENDIX

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SUBMISSION SCHEDULE Submission Date Items to be Submitted October 15 Discipline Cost: 1. Machine Readable 2. Hard Copy (Form A) 3. Credit Hour Reconciliation (Form C) 4. Appropriated Funds Expenditures for Organized Research and Public

Service Activities (Form GH) November 15 Faculty Credit Hour: 1. Machine Readable 2. Hard Copy 3. Nonappropriated Funds Expenditures for Instruction, Organized

Research, and Public Service (Form J) December 15 Induced Course Load Matrix: Reconciliation of Estimated Expenditures to Audited Expenditures (Form D) NOTE: When any submission date falls on a weekend, the data is due on the following Monday.

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SUGGESTIONS FOR ASSIGNING NEW CIP CODES The use of the new Classification of Instructional Programs coding system in the annual Cost Study has raised some questions about procedures and comparability of coding among institutions. Because the Cost Study is designed to serve both the institutions' and the state's planning and budgeting purposes, it must strike a balance between the institutions' needs to reflect its unique organizational structure and the state's need for comparable disciplinary grouping. In assigning new CIP codes from the classification, this dual purpose should be kept in mind. The Classification of Instructional Programs published by the National Center for Educational Statistics is a disciplinary taxonomy organized about traditional departmental lines at the four-digit level. To accommodate the variety of organizational structures which may not parallel the classification's definition of a discipline, it may be necessary to review the courses offered by each academic/budgetary unit and assign the appropriate six-digit CIP code to each course. Expenditures and credit hours can then be aggregated to the four-digit level via the FAA. The following guidelines should be used in assigning codes to courses. 1. Is there a direct correspondence between a department (academic/budgetary unit) and a single

four-digit CIP code? If so, all courses in the unit should be coded with the single CIP number. Classifying one or two courses in a different code because of minor description variations would limit the usefulness for institutional purposes. For example, many social science departments offer their own statistics or quantitative methods courses. These courses should be classified in the appropriate social science code rather than as statistics. It is understood that the social science disciplines include quantitative course matter.

2. Does the department (academic/budgetary unit) offer a degree program in more than one six-

digit code? If so, the courses for each program should be classified accordingly. For example, a department of Government might offer degrees in both political science and public administration. In this case, courses dealing with political science should be coded under political science (45.1001) and courses dealing with public administration should be coded under public administration (44.0401). It is expected that approved degree programs showing credit hours also will show discipline credit hours.

3. Does the instructor of a multidisciplinary course have an appointment in a disciplinary

department or unit? If a course is truly multidisciplinary and does not fit any one category it should be assigned the code of the instructor's "home" unit.

4. What is of greatest utility to your planning and budgeting function? If one of the above

guidelines does not suggest an appropriate code and a course may legitimately be classified into more than one code, classify it in the code that makes the most sense for your planning efforts.

A review of a course's title and, perhaps, its brief catalog description should be sufficient to classify a course.

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INSTRUCTIONS FOR COMPLETING FORM A DISCIPLINE COST STUDY Form A is the hard copy version of the credit hours and costs submitted in machine readable form. Form A or a facsimile should be produced from the deck or tape submitted to the Illinois Board of Higher Education, checked for accuracy, and submitted with the machine readable device. NOTE: It is not necessary to submit a Form A for a four-digit code that produced no credit hours and, therefore, no costs. Similarly, no card or tape records should be submitted for a four-digit code with no credit hours and, therefore, no costs.

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INSTRUCTIONS FOR COMPLETING FORM C RECONCILIATION OF COST STUDY EXPENDITURES TO TOTAL ESTIMATED STATE-APPROPRIATED OPERATING EXPENDITURES Form C reconciles the Cost Study expenditures to the total state operating appropriation. Line 1 is the state operating appropriation for the fiscal year of the Cost Study. Line 2 provides space for the actual expenditures which occurred between July 1 and June 30 of the fiscal year. Line 3 is the expenditures made during the lapse period (June 30 to September 30) immediately following the fiscal year. All expenditures during the lapse period must have been obligated by June 30. The sum of lines 2 and 3 is the total estimated expenditures from state-appropriated funds. This should be reported on line 4. Line 6 provides space for itemizing the costs excluded from the Cost Study. When line 6 is subtracted from line 4 the difference is the expenditures included in the cost study. This amount is reported on line 7.

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FORM C RECONCILIATION OF COST STUDY EXPENDITURES TO TOTAL ESTIMATED STATE-APPROPRIATED OPERATING EXPENDITURES Institution Fiscal Year 1. State Operating Appropriations for Fiscal Year 2. Actual Expenditures for Fiscal Year: July 1 to June 30 3. Estimated Lapse Period Expenditures for Fiscal Year Based on Obligations as of June 30 4. Total Estimated Expenditures from State-Appropriated Funds (line 2 plus line 3) 5. Estimated Lapsed Appropriations for Fiscal Year (line 1 less line 4) 6. Expenditures Excluded from Unit Cost Stud Retirement Contributions Refunds Student Aid Other: 7. Expenditures Included in Unit Cost Study (line 4 less line 6)

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INSTRUCTIONS FOR COMPLETING FORM D RECONCILIATION OF ESTIMATED EXPENDITURES USED FOR THE COST STUDY TO FINAL AUDITED EXPENDITURES Form D reconciles Cost Study expenditures with final audited expenditures. Line 1 is the expenditures used in the Cost Study (the amount shown on line 7 on Form C). Line 2 is the final audited expenditures for the fiscal year of the Cost Study. The difference between line 2 and line 1 is reported on line 3 as the variance. Line 4 is the percent difference this variance represents over the final audited expenditures.

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FORM D RECONCILIATION OF ESTIMATED EXPENDITURES USED FOR THE COST STUDY TO FINAL AUDITED EXPENDITURES Institution __________________________ Fiscal Year______________ 1. Estimated Expenditures from State-Appropriated Operating ______________ Funds Used for Cost Study (Form C, line 7) 2. Final Audited Expenditures for Fiscal Year ______________ 3. Variance (line 2 less line 1) ______________ 4. Percent Difference (line 3 divided by line 2) ______________

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Part A

INSTRUCTIONS FOR COMPLETING FORM GH APPROPRIATED FUNDS EXPENDITURES FOR ORGANIZED RESEARCH AND PUBLIC SERVICE ACTIVITIES

Part A collects expenditure information for all separately organized research and public service centers and institutes. The list of these separately organized units is generated annually from the Board of Higher Education's Program Inventory. Only those entities included on the Board's Inventory are to be included on this list. Total expenditures from appropriated funds for organized research and public service activities are to be provided for each approved center or institute. A separate line is provided for a total for Part A. Part B Part B collects organized research and public service expenditure information for all academic departments. Departmental organized research expenditures are subdivided among three funding categories: expenditures for cost sharing with external grants and contracts; competitive, centrally administered organized research grants; and departmental overheads associated with organized research. Departmental public service expenditures are subdivided among two funding categories: direct public service and departmental overheads associated with public service. NOTE, departmental direct service research activities carried out with appropriated funds not funded through one of the above categories should be classified as departmental research. Centrally administered grant or support programs such as a Provost's Research Program or the Vice President for Research's incentive grant program typically are relatively small compared to the institution's total research and public service expenditures and are meant to be competitive. Expenditures in this Part are no longer required to be reported separately by discipline. Part C Part C collects organized research and public service expenditure information for all schools and colleges administrative offices. Like Part B, Part C requests organized research expenditures subdivided among three funding categories: expenditures for cost sharing with external grants and contracts; competitive, centrally administered organized research grants; and departmental overheads associated with organized research. Schools and colleges expenditures for public service are subdivided among two funding categories: direct public service and departmental overheads associated with public service. Expenditures in this Part are not required to be reported separately by discipline. Part D Parts A, B, and C should capture the majority of organized research and public service activities. Part D provides an opportunity to report organized research and public service expenditures by separately organized units that are not approved centers or institutes, academic departments, or schools or colleges. Institutions should provide a separate list of the individual units reported in Part D. Expenditures in this Part are not required to be reported separately by discipline. Part E Part E requests total expenditures from state appropriated funds that support functions unique to organized research and public service. Examples of such expenditures might include an institution's Office of Contracts and Grants or administrative operations of Cooperative Extension Centers. Total expenditures from state appropriated funds for Part E should equal the total expenditures reported on Line 207 of the Discipline Cost study for all disciplines. Expenditures in this Part are not required to be reported separately by discipline.

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INSTRUCTIONS FOR COMPLETING FORM GH APPROPRIATED FUNDS EXPENDITURES FOR ORGANIZED RESEARCH AND PUBLIC SERVICE ACTIVITIES (continued) Part F Part F requests expenditures for all other institutional support allocated to organized research and public service programs. These expenditures should equal the expenditures reported in the Discipline Cost Study for organized research and public service on Lines 208, 209, 210, 211, and 213. Part G The summation of Parts A through F. These expenditures should equal the amount submitted for organized research and public service on line 214 of the Discipline Cost Study.

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INSTRUCTIONS FOR COMPLETING FORM J NONAPPROPRIATED FUNDS EXPENDITURES FOR

INSTRUCTION, ORGANIZED RESEARCH, AND PUBLIC SERVICE Form J requests expenditure data from nonappropriated funds for instruction, organized research and public service activities by approved centers and institutes, academic departments, schools and colleges, and other separately organized units. Specifically, expenditures included on Form J should include those from restricted purpose funds reported on Table 0142 of the Public Universities Resource Allocation and Management Program (RAMP) and selected unrestricted funds reported on Table 0140 of RAMP (see below for specific lines to be included from Table 0140). All expenditures should be reported in thousands of dollars with one decimal place shown (e.g., $427,659=$427.7). Part A of Form J requests expenditures from nonappropriated funds for direct organized research and public service performed by approved centers or institutes. The Board of Higher Education maintains an inventory of all such approved units and Form J is preprinted using this inventory. Any requests for additions, deletions, or modifications to this list should be made in writing to the Board of Higher Education, Academic Affairs section. The expenditures reported in Part A may be from restricted purpose grants and/or contracts (line 040, columns 1, 2, and 3, of RAMP Table 0142), restricted private gifts, grants, and contracts (line 050, columns 1, 2, and 3, of Table RAMP 0142), restricted endowment income earmarked for the center or institute (line 060, columns 1, 2, and 3, of RAMP Table 0142), other restricted income (line 070, columns 1, 2, and 3, of RAMP Table 0142), or unrestricted sales and services of education departments (line 100, columns 1, 2, and 3, of RAMP Table 0140) as long as these funds are generated by the center or institute and held locally for expenditure by that unit. Private gifts that are donated for the purpose of exchange or promotion in fundraising efforts (e.g., goods or services donated to local radio or TV station for promotion in fundraising efforts) should not be included in Part A. Part B of Form J requests expenditures from nonappropriated funds for instruction, organized research, and public service performed by faculty members as part of their assignments in academic departments as opposed to separately organized centers or institutes. Expenditures from the same categories of funds (see instructions for Part A above) should be included in Part B. Currently, it is not necessary to report expenditures by individual disciplines or departments; only a subtotal for Part B is required. Part C requests the same information as Parts A and B for Schools and Colleges. Currently, it is not necessary to report expenditures by individual disciplines or schools or colleges, only a subtotal for Part C is required. Part D requests the same information as Parts A, B, and C for other separately organized units not reported in Parts, A, B, or C. A list of such units should be attached to Form J. Part E is the total of expenditures from nonappropriated funds for instruction, organized research, and public service. The amounts shown on Part E should equal the totals reported in columns 1, 2 and 3 of line 90 on RAMP Table 0142 and columns 1, 2, and 3, of line 100 of RAMP Table 0140, excluding College Work Study Grants. The following should not be reported on Form J: College Work Study Grants, any form of student financial aid grant, unrestricted grants, gifts, or appropriations (except where noted in Part A, above), and unrestricted endowment income.

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SUBMISSION SCHEDULE Submission Date Items to be Submitted October 15 Discipline Cost 1. Machine Readable 2. Hard Copy (Form A) 3. Credit Hour Reconciliation (Form C) 4. Appropriated Funds Expenditures for Organized Research and Public

Service Activities (Form GH) November 15 Faculty Credit Hour 1. Machine Readable

2. Hard Copy

December 15 Induced Course Load Matrix 1. Reconciliation of Estimated Expenditures to Auidted Expenditures

(Form D) 2. Nonappropriated Funds Expenditures for Instruction, Organized

Research, and Public Service (Form J) NOTE: When any submission date falls on a weekend, the data is due on the following Monday.

(Rev. 10/97)

INSTRUCTIONS FOR COMPLETING FORM C RECONCILIATION OF COST STUDY EXPENDITURES TO TOTAL

ESTIMATED STATE—APPROPRIATED AND UNIVERSITY INCOME FUND OPERATING EXPENDITURES

Form C reconciles the Cost Study expenditures to the total state operating appropriation and University Income Fund expenditures. Line 1 is the state operating appropriation and University Income Fund expenditures for the fiscal year of the Cost Study. Line 2 provides space for the actual expenditures, which occurred between July 1 and June 30 of the fiscal year. Line 3 is the expenditures made during the lapse period (July 1 through August 31) i ediately following the fiscal year. All expenditures during the lapse period must have been obligated by June 30. The sum of lines 2 and 3 is the total estimated expenditures from state..appropriated funds and University Income Funds. This should be reported on line 4. Line 6 provides space for itemizing the costs excluded from the Cost Study. Line 7 should include expenditures not included in the campuses expenditures that should be included in the Cost Study expenditures (e.g., central administration). Line 8 should be the total expenditures included in the Cost Study (line 4, less line 6, plus line 7).

(Rev. 10/97)

RECONCILIATION OF COST STUDY EXPENDITURES TO TOTAL ESTIMATED STATE-APPROPRIATED AND UNIVERSITY INCOME FUND

OPERATING EXPENDITURES

Institution________________________ Fiscal Year_____________ 1. State Operating Appropriations and University Income _______________ Fund for Fiscal Year 2. Actual Expenditures for Fiscal Year: July 1 to June _______________ 30 3. Estimated Lapse Period Expenditures for Fiscal Year _______________ Based on Obligations as of June 30 4. Total Estimated Expenditures from State- _______________ Appropriated Funds and University Income Funds (line 2 plus line 3) 5. Estimated Lapsed Appropriations for Fiscal Year _______________ (line 1 less line 4) 6. Expenditures Excluded from Unit Cost Study _______________ Retirement Con ibutions ___________________ Refunds ___________________ Student Aid ___________________ Other: ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ 7. Other Expenditures Included in Unit Cost Study (line ________________ 4, less line 6, plus line 7) 8. Expenditures Included in Unit Cost Study ________________ Fiscal Year

(Rev. 10/97)

INSTRUCTION FOR COMPLETING FORM D RECONCILIATION OF ESTIMATED STATE-APPROPRIATED AND

UNIVERSITY INCOME FUND EXPENDITURES USED FOR THE COST STUDY TO FINAL AUDITED EXPENDITURES

Form D reconciles the Cost Study expenditures with final audited expenditures. Line 1 is

the expenditures used in the Cost Study (the amount shown Form C, line 8). Line 2 is the final audited expenditures from state-appropriated funds and University Income Funds for the fiscal year of the Cost Study. The difference between line2 and line 1 is reported on line 3 as the variance. Line 4 is the percent difference this variance represents over the final auidted expenditures.

(Rev. 10/97)

RECONCILIATION OF ESTIMATED STATE-APPROPRIATED AND UNIVERSITY INCOME FUND EXPENDITURES USED FOR

THE COST STUDY TO FINAL AUDITED EXPENDITURES

Institution _________________________________ Fiscal Year ________________ 1. Estimated Expenditures from State-Appropriated Operating Funds and University Income Funds Used For Cost Study (Form C, Line8) ________________ 2. Final Audited Expenditures from State-Appropriated Funds and University Income Funds for Fiscal Year ________________ 3. Variance (line 2 less line 1) ________________ 4. Percent Difference (line 3 divided by line 2) ________________

(Rev. 10/97)

INSTRUCTIONS FOR COMPLETING FORM GH STATE-APPROPRIATED AND UNIVERSITY INCOME FUND

EXPENDITURES FOR ORGANIZED RESEARCH AND PUBLIC SERVICE ACTIVITIES

Part A. Part A collects expenditure information for all separately organized research and public service centers and institutes. The list of these separately organized units is generated annually from the Board of Higher Education’s Program Inventory. Only those entities included on the Board’s Inventory are to be included on this list. Total expenditures from appropriated funds for organized research and public service activities are to be provided for each approved center or institute. A separate line is provided for a total for Part A. Part B. Part B collects organized research and public service expenditure information for all academic departments. Departmental organized research expenditures are subdivided among three funding categories: expenditures for cost sharing with external grants and con acts; com-petitive, centrally administered organized research grants; and departmental overheads associated with organized research. Departmental public service expenditures are subdivided among two funding categories: direct public service and departmental overheads associated with public service. NOTE: departmental direct service research activities carried out with appropriated funds not funded through one of the above categories should be classified as departmental research. Cen ally administered grant or support programs such as a Provost’s Research Program or the Vice President for Research’s incentive grant program typically are relatively small compared to the institution’s total research and public service expenditures and are meant to be com etitive. Expenditures in this Part are no longer required to be reported separately by discipline. Part C. Part C collects organized research and public service expenditure information for all schools and college administrative offices. Like Part B, Part C requests organized research expenditures subdivided among three funding categories: expenditures for cost sharing with external grants and contracts; competitive, centrally administered organized research grants; and departmental overheads associated with organized research. Schools and colleges expenditures for public service are subdivided among two funding categories: direct public service and depart-mental overheads associated with public service. Expenditures in this Part are no required to be reported separately by discipline. Part D. Parts A, B, and C should capture the majority of organized research and public service activities. Part D provides an oppo ni to report organized research and public service expenditures by separately organized units that are not approved centers or institutes, academic departments, or schools or colleges. Institutions should provide a separate list of the individual units reported in Part D. Expenditures in this Part are not required to be reported separately by discipline. Part E. Part E requests total expenditures from state appropriated funds that support functions unique to organized research and public service. Examples of such expenditures might include an institution’s Office of Contracts and Grants or administrative operations of Cooperative Extension Centets. Total expenditures from state appropriated funds for Part E should equal the total expenditures reported on Line 207 of the Discipline Cost Study for all disciplines. Expenditures in this Part are not required to be reported separately by discipline. Part F. Part F requests expenditures for all other institutional support allocated to organized research and public service programs. These expenditures should equal the expenditures reported in the Discipline Cost Study for organized research and public service on Lines 208, 209, 210, 211, and 213. Part G. The summation of Parts A through F. These expenditures should equal the amount submitted for organized research and public service on line 214 of the Discipline Cost Study.

(Rev. 10/97)

(Rev. 10/97)