In a day of reduced student demand, a number of colleges have turned to their athletic programs to help fill a portion of excess capacity.  The idea is that an additional student paying anything is better than no student at all. At the outset, let me say that this strategy can be helpful within the […]

As a cost accountant in a former life, I have always found it interesting the way that tuition remission is handled. Basically, the full cost of the benefit is apportioned to fringe benefits under “operating costs” and the entire amount of tuition is recognized as revenue, with no offsetting tuition discount. Let me identify a […]

Some have asked whether certain expense and revenue relationships typify the successful institution. Here are six I have gleaned from working with a variety of clients: Salaries and benefits should not exceed 80% of net tuition revenue. Direct instructional salary and benefits should not exceed 35% of net tuition. Spending on institutional advancement should not exceed […]

After publishing a list of twenty characteristics that are common to healthy institutions, some conversations have ensued with various clients, asking about other components.  Tuition discounting has been the most popular.  So, here is a list updated to 25 characteristics.  See how you are doing in comparison with these standards: Annual net tuition per traditional […]

A colleague, Craig Mahler, shared this article earlier today. Having worked with a variety of boards over the past year and a half, I am pleased to see this level of attention paid to their role. My observation is that individual board members either accept everything that comes from the administration or are skeptical and […]

One of the common questions I have been asked during my trek to 20+ clients over the past two years involves the financial performance statistics institutions should be shooting for. That is, what are the benchmarks that typify the better-performing colleges and universities? Here is a rundown of twenty, based on my numerous visits: GAAP-based […]

As the higher education industry absorbed the impact of SFAS 93, followed by 115 and 116, many balked at the funding of depreciation expense. Prior to those landmark pronouncements, various “funds” were deployed to capture activity within the capital spending and financing arenas. It was common to call the payment of principal on debt and […]

If you do not have a degree completion or graduate program for adults, you can skip this edition. For those who have such programs, a common approach is to recruit a group of students as a cohort. Ideally, that cohort remains together throughout the program, encouraging each other to stay with it and accomplish the […]

Students have moved in, parents are back home, relationships have started … and ended, first exams delivered and disciplinary counsels are full of agenda items. Yup, it’s that time of year. Oh, and the traditional census is underway, with a crowd awaiting the puffs of smoke, signaling the year’s revenue projection has been calculated. There […]

The first week of August is upon us and whatever will betide the fall is becoming more clear. What are some of my clients doing around this time? Well, first of all, the deadline for finalizing payment for the fall often occurs this week. I have suggested a deadline of August 5th through 9th as […]