TUITION & FEE PROCESS GUIDELINE Draft Policy Review Financial Area Representatives

Draft Policy Review
Financial Area Representatives
April 21, 2008
Audit 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.
Tuition & Fee Process Guideline Scope
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 Responsibilities
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
Process Guidelines and Responsibilities
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 Responsibilities
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
Other budget increments are reallocations of previously recovered revenue
(except for BoR approved mandatory fee increases.)
Establishing / Changing Fee Rates or
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
versus the requirements when the fee was
originally established.
Changes must be endorsed by VP/Provost and
vetted through fee committees/student
organizations as appropriate.
Establishing / Changing Fee Rates or
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
Communication of Fee Rates and Changes
Banner Student Information System
Academic Publications / Information Bulletin
Retained Earnings
Retained earnings (carryforward balances
and reserves) are appropriate for:
Working Capital – when expenditures precede
Current Operations – if projected expenses can not
be covered by projected income
Capital Replacement – offset economic effects of
Planned Future Operations
Requirements are documented each year for the AVPFinancial Affairs to review and make recommendations.
Revenue 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.
Periodic 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
 Is UTSA subsidizing costs and is the level of
subsidy appropriate?
Periodic 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.)