You are here

Articles: Asset & Investments

The pace of change in the business offices of universities has never been faster. All eyes are on how institutions will manage the challenges of cost containment pressures, lower federal and state support, and the changing marketplace for higher education. With more demands on your resources—including personnel, capital and time—you have to ensure you are getting the most out of your business partnerships.

The Rutgers (N.J.) spying case and the Penn State abuse scandal, among others, highlight the liability risks of all types facing colleges and universities. From the other end of the risk spectrum, Tulane University’s (La.) long struggle to rebuild and recoup losses stemming from Hurricane Katrina illustrates the complexity of property damage risk management.

California Gov. Jerry Brown, with students and teachers behind him, gestures during a news conference after voting Tuesday, Nov. 6, 2012 in Oakland, Calif. The governor talked about his support for Proposition 30 that will increase funding for schools and public safety. (AP Photo/Eric Risberg)

While voters across the nation were glued to their screens last night counting electoral votes, the higher education community was holding its breath awaiting the answers on a number of important ballot initiatives, proving this year’s election was truly about more than blue and red for higher ed.

Finding funding for new technology investments in higher education can often seem overwhelming and stressful given the current economic environment. However, there are strategies available to support new technological initiatives. Administrators just need to do their homework and remain persistent to secure the funding needed to deploy these essential advancements.

The Future of Video in Education Summit

Video is changing the way we teach, learn, and do business on campus. How can you harness the power of online video—from lecture capture to campus events to student-generated content—to create new value? That was the focus of the Future of Video in Education Summit preceding UBTech 2012. Sponsored by Sonic Foundry, the summit examined those questions in a series of presentations and panel discussions.

A third of all colleges and universities in the United States are in a weaker financial state today than before 2005, according to a new study.
Colleges have more liabilities, higher debt service, and increasing expenses without the revenue or cash reserves to back them up, as well as limited ability to pass costs onto families, according to Boston-based Bain & Co.

Proving that few higher ed institutions are immune from the effects of the economy, schools such as Yale and MIT are included on Bain’s list.

  • Cuts in state funding have forced University of Alabama trustees to consider tuition increases for the fifth straight year. Tuition hikes ranging from 7 percent to 8.6 percent are expected for all three campuses. If approved, tuition for in-state undergraduate students will rise 7 percent from $4,300 per semester at the main Tuscaloosa campus to $4,600. Tuition for out-of-state students would rise nearly 5 percent from $10,950 per semester to $11,475.

What single key thing must campus administrators keep in mind when considering audio options?

“The one thing that needs to be understood for an audio solution across a campus is how to implement a simple solution for all environments that will need audio. The different classroom settings make it very difficult for an administrator to come up with a one-size-fits all type of solution.” —Tim Root, CTO and executive VP of new business development, Revolabs

The Pennsylvania State System of Higher Education revealed that an audit shows California University of Pennsylvania inappropriately used university employees to raise money for its private foundation and improperly diverted nearly $6 million to the same nonprofit.

The audit led to the firing of university President Angelo Armenti, who led the institution for nearly 20 years. Armenti says the audit findings are "baseless" and "unfounded."

Americans are increasingly choosing donor-advised funds (DAFs) as their preferred charitable giving vehicle. They have become the fastest growing vehicle in philanthropy, outnumbering private foundations by more than two-to-one. In 2010 (the most recent available data), grantmaking from DAFs totaled more than $6.1 billion, according to the “2011 Donor-Advised Fund Report” from National Philanthropic Trust.

Higher education costs are skyrocketing at a rate much higher than inflation. While states have drastically reduced public university budgets, those universities are constrained from raising tuition costs appreciably. Add to this the fact that higher education is a labor-intensive enterprise, and you begin to understand the dilemma in which we college administrators find ourselves.

Until recently, many 403(b) employee retirement plans were viewed not as actual plans but as clusters of individual employee contracts with different vendors. Higher ed institutions were like middle men, with their role limited to passing through employee contributions to individual plans. Administrators saw little need to pay much attention to their 403(b) plans or to exercise much oversight of third-party mutual funds or insurance companies managing employee funds.

Wading through compliance rules can be daunting for even the most seasoned administrator. The Higher Education Compliance Alliance, a new online resource, was launched on March 1 to help answer the most burning federal law and regulation questions.

The website features information on more than two dozen topics, including accounting, affirmative action, campus safety, HEOA compliance obligations, lobbying and political activities, and tax compliance, to name a few.

An Atlas of Giving report reveals that the education sector was the strongest for charitable giving in 2011. The sector received $54.30 billion in 2011, an increase of 9.8 percent over 2010 when donors gave $49.44 billion. Education still falls in second place to religious charities, with education accounting for 16 percent of total giving in 2011 and religion at 36 percent.

Acceptance of cloud computing—the practice of storing data in off-site servers rather than on campus—has been growing by leaps and bounds, at least in some areas. “It’s growing in the areas easier to rip and replace, such as CRM,” says Stan Swete, chief technology officer at Workday, which offers HR and Payroll systems through software as a service (SaaS).

Pages