Aligning revenue and expenditures to institutional mission: A multi-dimensional analysis of resource allocations in a community college
This study analyzed spending in a community college to determine how dollars were aligned to the institution's mission. Using the Coopers & Lybrand LLP computerized reporting tool called the Finance Analysis Model (FAM), this study developed the FAM into a Higher Education Finance Model (HEFM). Data from 1996–1998 were collected from the colleges' general statement of accounts and was submitted for analysis to evaluate spending by function, cluster, unit, and productivity.^ Several major findings emerged in this study which have broad implications for academicians, fiscal and accounting managers, stakeholders, and policy makers in higher education. First, to determine the alignment of spending and the disclosure of financial and nonfinancial indicators in a college, the unique framework and methodology of the HEFM were superior to disaggregated institutional financial reports. ^ Second, although community college students and their academic needs are strikingly different, this study found that expenditures per student varied significantly. Spending for low-end and remedial students was lower than spending for mainstreamed, transfer, and honor students. ^ Lastly, the HEFM can be used to answer questions about levels and trends in revenues and expenditures in higher education. Such information can be integrated into budget-making decisions and ultimately facilitate getting more dollars into academic programs. ^
Education, Community College|Education, Finance|Economics, Finance
Joseph Angelo Vasti,
"Aligning revenue and expenditures to institutional mission: A multi-dimensional analysis of resource allocations in a community college"
(January 1, 1999).
ETD Collection for Fordham University.