Campus Finance Briefs

Subcategory of CFO News

‘Shopping Sheet’ Aims to Make College Costs Transparent

The Department of Education, in collaboration with the Consumer Financial Protection Bureau, has released a new, standardized format for financial aid award letters. The “Financial Aid Shopping Sheet” offers students and families a graphic summary of the cost of attendance and aid available and can be customized by each institution. The form makes it easy to compare costs and aid offers, and provides an index of how comparable schools perform against one another.

Industry News

  • Campus Management, a provider of enterprise software products and services, has announced a strategic alliance with EC Group, a professional services company specializing in financial aid management, regulatory compliance and institutional effectiveness.
  • The Texas Partners Federal Credit Union has joined the pool of about 500 credit unions that offer Sallie Mae’s Smart Option Student Loan referral program.

The ABCs of TDABC

Universities face a conundrum: Funding for higher education is on the decline, but enrollment is at an all time high—how can they do more with less? One answer may be Time-Driven Activity-Based Costing (TDABC). It’s a system to discern and analyze costs and compare this to what is driving demand. For example, a finance officer may know how much certain departments spend on which vendors, but not have the ability to align shared services (duplicate services or programs) between those departments.

A Third of Colleges on “Unsustainable Path”

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.

Where the Jobs Are

You might not know it when you recall all the faculty and staff layoffs of recent years, but according to a new report, the number of jobs in higher education continues to grow faster than overall U.S. employment. An analysis of U.S. Bureau of Labor Statistics data by HigherEdJobs.com finds that the number of jobs in higher education grew 2.1 percent during Q2 2012, compared to growth of 1.4 percent for all U.S. jobs. A year earlier in Q2 2011, the number of higher education jobs grew 2.2 percent, compared to overall job growth of 1.0 percent.

Airport Service Turns SUNY-Purchase Parking Lot into Revenue Generator

Officials at Purchase College, State University of New York, as elsewhere, have sought innovative ways to keep tuition low and cut costs. One such effort is Purchase Park2Fly (PP2F), now in existence for a year. The program allows passengers at neighboring Westchester County Airport to park on the campus’ vacant parking lot, at a cheaper rate than they could get on airport grounds and with a shuttle that picks up and drops off passengers to the airport.

Industry Briefs

Higher One has achieved Oracle Validated Integration of its CASHNet payment processing suite 2012.2 with Oracle’s PeopleSoft Campus Solutions 9.0. With this integration, colleges and universities, as well as students and parents, are able to easily process payment anytime, anywhere using the CASHNet payment processing suite. To achieve Oracle Validated Integration, Oracle partners are required to meet a stringent set of requirements that are based on the needs and priorities of the customers.

Nation’s First School of Philanthropy Slated for Indiana

Indiana University sees an opportunity to capitalize on the growing market for nonprofit workers with a formal School of Philanthropy at Indiana University-Purdue University Indianapolis.

Officials say nonprofits already account for 9 percent of U.S. wages and salaries, and are expected to grow as government and corporation philanthropy declines.

According to one recent study, nonprofit organizations with revenues of more than $250,000 will hire up to 640,000 more executives by 2016.

Budget Watch

  • 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.

Audit Alleges Fund Mismanagement

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."

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