TUITION & FEE PROCESS TUITION & FEE PROCESS GUIDELINEGUIDELINE

TUITION & FEE PROCESS TUITION & FEE PROCESS GUIDELINEGUIDELINE

Draft Policy ReviewDraft Policy Review

Financial Area Financial Area RepresentativesRepresentatives

April 21, 2008April 21, 2008

Draft Policy ReviewDraft Policy Review

Financial Area Financial Area RepresentativesRepresentatives

April 21, 2008April 21, 2008

Audit RecommendationsAudit RecommendationsAudit RecommendationsAudit Recommendations

Assign overall responsibility for the annual tuition and fees update process, and prepare process documentation to include roles, timelines, and deliverables.

Establish criteria for excessive year end unexpended balances and request documentation supporting the justification for the accumulation.

Assign overall responsibility for the annual tuition and fees update process, and prepare process documentation to include roles, timelines, and deliverables.

Establish criteria for excessive year end unexpended balances and request documentation supporting the justification for the accumulation.

Tuition & Fee Process Guideline Tuition & Fee Process Guideline ScopeScope

Tuition & Fee Process Guideline Tuition & Fee Process Guideline ScopeScope

Designated tuition and mandatory, college/course, laboratory or other incidental fee rates and/or changes.

Communication of fee information to students and university constituents.

Requirements for fee revenue Reserves.

Authority for annual revenue budgets, expenditures and year-end balances (retained earnings).

Authority for rate (cost) reviews.

Designated tuition and mandatory, college/course, laboratory or other incidental fee rates and/or changes.

Communication of fee information to students and university constituents.

Requirements for fee revenue Reserves.

Authority for annual revenue budgets, expenditures and year-end balances (retained earnings).

Authority for rate (cost) reviews.

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

Establishing Designated Tuition and Mandatory Fee Rates:

Board of Regents approve tuition & mandatory fee rates for two year periods.

Spring following legislative year

Associate VP – Financial Affairs coordinates the T&F Process in accordance with The UT System guidelines.

Tuition & Fee Committee & public hearings are required.

Establishing Designated Tuition and Mandatory Fee Rates:

Board of Regents approve tuition & mandatory fee rates for two year periods.

Spring following legislative year

Associate VP – Financial Affairs coordinates the T&F Process in accordance with The UT System guidelines.

Tuition & Fee Committee & public hearings are required.

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

Establishing the Designated Tuition Rate

Lowest amount possible to cover incremental changes in mandatory & fixed costs

Conservative estimates of growth Cap may be imposed by UT System

In FY09, our rate goes from $101/SCH to $110/SCH (+8.9%)

Establishing the Designated Tuition Rate

Lowest amount possible to cover incremental changes in mandatory & fixed costs

Conservative estimates of growth Cap may be imposed by UT System

In FY09, our rate goes from $101/SCH to $110/SCH (+8.9%)

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

Process Guidelines and Process Guidelines and ResponsibilitiesResponsibilities

In FY09, Designated Tuition is the only new

discretionary source of income for UTSA E&G budgets to fund:

$1.176M in required Financial Aid $2M New Faculty Recruitments $2.77M in Merit Salary increases $0.290M for Bad Debt Allowance & Texas

Tomorrow

Other budget increments are reallocations of previously recovered revenue

(except for BoR approved mandatory fee increases.)

In FY09, Designated Tuition is the only new

discretionary source of income for UTSA E&G budgets to fund:

$1.176M in required Financial Aid $2M New Faculty Recruitments $2.77M in Merit Salary increases $0.290M for Bad Debt Allowance & Texas

Tomorrow

Other budget increments are reallocations of previously recovered revenue

(except for BoR approved mandatory fee increases.)

Establishing / Changing Fee Rates or Establishing / Changing Fee Rates or JustificationsJustifications

Establishing / Changing Fee Rates or Establishing / Changing Fee Rates or JustificationsJustifications

Use Fee Request Form Zero based budget approach For existing fees, requires re-validation of

the rate charged to students based on budgeted semester credit hour projections and expenditures. Allows for cost analysis of current situation Allows for cost analysis of current situation

versus the requirements when the fee was versus the requirements when the fee was originally established. originally established.

Changes must be endorsed by VP/Provost and vetted through fee committees/student organizations as appropriate.

Use Fee Request Form Zero based budget approach For existing fees, requires re-validation of

the rate charged to students based on budgeted semester credit hour projections and expenditures. Allows for cost analysis of current situation Allows for cost analysis of current situation

versus the requirements when the fee was versus the requirements when the fee was originally established. originally established.

Changes must be endorsed by VP/Provost and vetted through fee committees/student organizations as appropriate.

Establishing / Changing Fee Rates or Establishing / Changing Fee Rates or JustificationsJustifications

Establishing / Changing Fee Rates or Establishing / Changing Fee Rates or JustificationsJustifications

Authority of the President Upon prior review and approval of the

Executive Vice Chancellor for Academic Affairs, the President can approve new or changes to: Laboratory or course fees College fees (other) Incidental fees

Can be done ‘off cycle’ if necessary for exceptional

circumstances.

Authority of the President Upon prior review and approval of the

Executive Vice Chancellor for Academic Affairs, the President can approve new or changes to: Laboratory or course fees College fees (other) Incidental fees

Can be done ‘off cycle’ if necessary for exceptional

circumstances.

Communication of Fee Rates and Communication of Fee Rates and ChangesChanges

Communication of Fee Rates and Communication of Fee Rates and ChangesChanges

Committees Banner Student Information System Websites Academic Publications / Information

Bulletin Other

Committees Banner Student Information System Websites Academic Publications / Information

Bulletin Other

Retained EarningsRetained Earnings Retained EarningsRetained Earnings

Retained earnings (carryforward balances and reserves) are appropriate for:

Working Capital – when expenditures precede revenue

Current Operations – if projected expenses can not be covered by projected income

Capital Replacement – offset economic effects of depreciation

Planned Future Operations

Requirements are documented each year for the AVP-Financial Affairs to review and make recommendations.

Retained earnings (carryforward balances and reserves) are appropriate for:

Working Capital – when expenditures precede revenue

Current Operations – if projected expenses can not be covered by projected income

Capital Replacement – offset economic effects of depreciation

Planned Future Operations

Requirements are documented each year for the AVP-Financial Affairs to review and make recommendations.

Revenue Financial AssessmentRevenue Financial AssessmentRevenue Financial AssessmentRevenue Financial Assessment

Sr. Director of Budget – establishes revenue targets based on CY revenue & projected enrollment or other changes.

Deviations are mutually agreed upon.

Expenditures monitored by fee administrators.

In accordance with justification

Stakeholder appropriateness test

Retained earnings exceeding 15% must be approved by VPBA or designee.

Sr. Director of Budget – establishes revenue targets based on CY revenue & projected enrollment or other changes.

Deviations are mutually agreed upon.

Expenditures monitored by fee administrators.

In accordance with justification

Stakeholder appropriateness test

Retained earnings exceeding 15% must be approved by VPBA or designee.

Periodic Review of Approved RatesPeriodic Review of Approved RatesPeriodic Review of Approved RatesPeriodic Review of Approved Rates

AVP-Financial Affairs Authority Focus – Cost Recovery of

Expenditures Are students being appropriately

charged? Are Reserves being expended for the

intended purpose? Is UTSA subsidizing costs and is the

level of subsidy appropriate?

AVP-Financial Affairs Authority Focus – Cost Recovery of

Expenditures Are students being appropriately

charged? Are Reserves being expended for the

intended purpose? Is UTSA subsidizing costs and is the

level of subsidy appropriate?

Periodic Review of Approved RatesPeriodic Review of Approved RatesPeriodic Review of Approved RatesPeriodic Review of Approved Rates

Recommendation to UTSA Administration about rate appropriateness.

Appropriateness of expenditures within the approved justification remains the responsibility of each VP and is not the focus of this activity.

Internal & External Auditors may examine that aspect (as well as the rate appropriateness.)

Recommendation to UTSA Administration about rate appropriateness.

Appropriateness of expenditures within the approved justification remains the responsibility of each VP and is not the focus of this activity.

Internal & External Auditors may examine that aspect (as well as the rate appropriateness.)