Guidelines for Handling Surpluses and Deficits in Study Abroad Program Accounts
Background
The Education Abroad Committee and the Council on International Programs met
on October 10, 2013, to discuss best practices for managing surpluses and deficits
in study abroad program accounts. ISU does not currently have guidelines for this
procedure and CALS was interested in gathering input from other units on campus
in order to reach consensus on best practices.
Units strive to develop accurate budgets for study abroad programs. While these
estimates are normally very close to the actual costs of the program there are
extenuating circumstances that make highly accurate budgeting for international
travel inherently difficult or impossible. These factors include exchange rate
fluctuations, swings in airfare and hotel pricing, building in a cushion to manage
unanticipated risks as they arise, changes in circumstances since the site visit or
last offering of the program, etc.
Guidelines
1) When a significant unanticipated surplus becomes known prior to the
program departure then the amount charged to student Ubills can be
reduced. When a deficit becomes known there is very little that can be
done to increase the cost borne by students.
2) When deficits and surpluses occur across several study abroad programs
the management entity for that unit (either a college or the Study Abroad
Center) will determine the fairest, most feasible manner to handle the
situation. All of the following options (and possibly others or variations of
these) are acceptable and available to the management entity:
a. In cases of surpluses and deficits the management entity can sweep
those into a non-restricted account. If a net positive balance across
accounts exists the management entity can re-invest those funds in
study abroad program development, Implementation, and
administration to benefit students.
b. In cases of surpluses in one or more programs the surplus(es) can be
applied to the same or similar program when it is offered again to
reduce the cost to students.
3) In exceptional circumstances a refund can be made to students who are
enrolled at ISU in the semester following the program. Such refunds can be
made if one or more of the following conditions exist:
a. ISU recommends that when the surplus of a single study abroad
program exceeds 10% of the program fees paid by students that
reimbursement should be provided. While some units may choose
to reimburse amounts that are less than $500 per student, it is more
typical that reimbursements are processed when the surplus per
student reaches or exceeds the $500 threshold.
b. If the program is only expected to be offered one time (there is no
ongoing program to which these funds could be applied).