STATE OF ILLINOIS BOARD OF HIGHER EDUCATION

Transcription

STATE OF ILLINOIS
BOARD OF HIGHER EDUCATION
INSTRUCTION MANUAL FOR COMPLETING THE ANNUAL STUDY OF
COSTS IN ILLINOIS PUBLIC UNIVERSITIES
October 1995
Printed on Recycled Paper
Printed by Authority of
the State of Illinois
10/95 - 50 c.
TABLE OF CONTENTS
Page
PREFACE ..............................................................................................................................................
i
I.
OBJECTIVES AND OVERVIEW ......................................................................................
I-1
I-1.0
I-2.0
Objectives ..............................................................................................................
Classification of Costs...........................................................................................
I-1
I-1
I-2.1
I-2.2
I-2.3
Direct Expenditures.................................................................................
Support Costs ..........................................................................................
Instructional Unit Costs ..........................................................................
I-1
I-1
I-3
Historical Development.........................................................................................
I-3
I-3.0
II.
THE CLASSIFICATION OF COSTS .................................................................................
II-1
II-1.0
II-2.0
Overview................................................................................................................
Direct Costs ...........................................................................................................
II-1
II-1
II-2.1
II-2.2
II-2.3
Instruction................................................................................................
Organized Research ................................................................................
Public Service..........................................................................................
II-1
II-2
II-3
Support Costs.........................................................................................................
II-3
II-3.1
II-3.2
II-3.3
II-3.4
II-3.5
II-3.6
II-3.7
II-3.8
Departmental Overhead ..........................................................................
College or School Overheads .................................................................
Overhead Unique to a Function..............................................................
Academic Support...................................................................................
Student Services ......................................................................................
Independent Operations ..........................................................................
Institutional Support................................................................................
Operation and Maintenance of Physical Plant........................................
II-3
II-3
II-4
II-5
II-5
II-5
II-5
II-5
Faculty Activity Analysis Procedures (FAA) .......................................................
II-6
II-4.1
II-4.2
II-4.3
II-4.4
II-4.5
II-4.6
Whose Salaries Should be Allocated......................................................
Who Should Not Complete a FAA.........................................................
What Should be Counted ........................................................................
How Should They be Counted................................................................
Sample FAA............................................................................................
Examples .................................................................................................
II-6
II-6
II-6
II-6
II-7
II-7
Faculty Credit Hour Study ....................................................................................
II-9
II-5.1
II-5.2
II-5.3
Staff Years...............................................................................................
Allocation of Staff Years ........................................................................
Example...................................................................................................
II-9
II-10
II-11
Submission Requirements .....................................................................................
II-14
II-6.1
II-14
II-3.0
II-4.0
II-5.0
II-6.0
Record Format.........................................................................................
i
Page
III.
STUDENT AND COURSE FILES......................................................................................
III-1
III-1.0
III-2.0
III-3.0
Overview................................................................................................................
Courses and Credits...............................................................................................
Students .................................................................................................................
III-1
III-1
III-1
III-3.1 Student Levels.........................................................................................
III-1
Classification of Instructional Programs...............................................................
III-2
III-4.1 Student Majors ........................................................................................
III-2
Credit Hour Reconciliation ...................................................................................
Induced Course Load Matrix (ICLM)...................................................................
III-2
III-2
III-6.1 Submitting the ICLM ..............................................................................
III-6.2 Record Format.........................................................................................
III-2
III-4
ALLOCATING COSTS .......................................................................................................
IV-1
IV-1.0
IV-2.0
Introduction............................................................................................................
Fiscal Year Expenditures.......................................................................................
IV-1
IV-1
IV-2.1 Excluded Expenditures ...........................................................................
IV-1
Summer Session ....................................................................................................
Cost Reconciliation Forms ....................................................................................
System Offices.......................................................................................................
Allocating Costs ....................................................................................................
IV-1
IV-2
IV-2
IV-2
IV-6.1
IV-6.2
IV-6.3
IV-6.4
Allocating Salaries ..................................................................................
Instruction................................................................................................
Organized Research ................................................................................
Public Service..........................................................................................
IV-2
IV-2
IV-3
IV-3
Allocating Support Costs.......................................................................................
IV-3
IV-7.1
IV-7.2
IV-7.3
IV-7.4
IV-7.5
IV-7.6
IV-7.7
IV-7.8
Departmental Overheads.........................................................................
Overhead Support Unique to a Function................................................
IV-4
IV-4
IV-7
IV-7
IV-8
IV-8
IV-8
IV-8
Summary of Allocations........................................................................................
Calculating Unit Costs...........................................................................................
IV-8
IV-8
III-4.0
III-5.0
III-6.0
IV.
IV-3.0
IV-4.0
IV-5.0
IV-6.0
IV-7.0
IV-8.0
IV-9.0
V.
SUBMITTING DISCIPLINE AND PROGRAM COSTS..................................................
V-1
V-1.0
V-2.0
V-1
V-1
Overview................................................................................................................
Submitting Discipline Costs..................................................................................
ii
Page
V-2.1
V-2.2
V-2.3
V-3.0
V-4.0
V-5.0
V-6.0
VI.
Hard Copy ...............................................................................................
Machine Readable Copy.........................................................................
Record Format.........................................................................................
V-1
V-1
V-1
Reconciliation Forms.............................................................................................
Majors .................................................................................................................
Calculating Program/Major Costs.........................................................................
Submission Requirements .....................................................................................
V-2
V-2
V-3
V-4
HYPOTHETICAL CASE STUDY......................................................................................
VI-1
VI-1.0
VI-2.0
VI-3.0
Introduction............................................................................................................
Student Records.....................................................................................................
Allocating Costs ....................................................................................................
VI-1
VI-1
VI-1
VI-3.1
VI-3.2
VI-3.3
VI-3.4
VI-3.5
VI-3.6
VI-3.7
VI-3.8
VI-3.9
Departmental Overhead ..........................................................................
Overhead Unique to a Function..............................................................
Summary of Allocations .........................................................................
VI-1
VI-10
VI-10
VI-17
VI-17
VI-17
VI-17
VI-33
VI-33
Instructional Unit Costs.........................................................................................
Program Costs........................................................................................................
VI-33
VI-33
VI-4.0
VI-5.0
APPENDIX ...........................................................................................................................................
1
Submission Schedule ............................................................................................................
Suggestions for Assigning New CIP Codes.........................................................................
Instructions for Completing Form A: Discipline Cost Study..............................................
Instructions for Completing Form C: Reconciliation of Cost Study Expenditures to Total Estimated State-Appropriated Operating Expenditures..............................
Instructions for Completing Form D: Reconciliation of Estimated Expenditures Used for the Cost Study to Final Audited Expenditures ..........................................
Instructions for Completing Form GH: Appropriated Funds Expenditures
for Organized Research and Public Service Activities .....................................................
Instructions for Completing Form J: Nonappropriated Funds Expenditures
for Instruction, Organized Research, and Public Service..................................................
3
5
6
iii
8
10
13
16
iv
PREFACE
Every year since 1965 the Illinois Board of Higher Education has completed a study of costs at public
universities in Illinois. This study results in the annual publication of a Discipline Unit Cost Study, a
Comparative Cost Study, a Program Major Cost Study, and a Faculty Credit Hour Study. A variety of special
analytical studies also result from this effort.
This detailed examination of costs, especially over time, is an invaluable aid to planners, budgeters,
administrators, researchers, faculty and state officials in the continuous effort to provide the most effective and
efficient postsecondary education system possible. The same detail that ensures the cost study's utility requires
careful codification of procedures. This manual carefully describes the information and procedures necessary
for each university to complete the annual Cost Study.
The procedures and data used in the Cost Study have been developed with the cooperation of the staff of
each public university. Their past assistance and anticipated future cooperation in this on-going effort are greatly
appreciated.
Richard D. Wagner
Executive Director
v
vi
CHAPTER I
OBJECTIVES AND OVERVIEW
I - 1.0 Objectives
The principal objectives of identifying the operating costs of public universities are:
1.
To help formulate the annual operations and grants budget for public universities.
2.
To assist university administrators in program planning and re-evaluation.
3.
To establish a historical reference for the study of changing instructional costs.
4.
To increase the efficiency and effectiveness of postsecondary education in Illinois.
To help meet these objectives, the Illinois Board of Higher Education currently publishes three basic
analyses of Cost Study data: a faculty credit hour study (Chapter II); a study of units costs in each discipline,
including a comparative study of discipline costs among institutions (Chapter V); and a program/major unit
cost study (Chapter V).
I - 2.0 Classification of Costs
The three primary missions of public universities in Illinois are Instruction, Research, and Public
Service. While the organization of each university is unique in many respects, it is possible to classify the
activities of each university, and therefore its costs, in terms of these three primary functions. This is the
central process of the Cost Study.
The classification of activities and costs is based upon the responsibilities assigned to the faculty and
administration. These assignments provide both direct service to and support for the primary functions. Each
university collects a Faculty Activity Analysis (FAA) for each faculty member, administrator and professional
staff member who has assigned time to Instruction, Research or Public Service. Chapter II gives a complete
and detailed description of the FAA.
I - 2.1 Direct Expenditures
The FAA identifies those assignments which provide direct service in each of the primary functions.
Within the Instruction function, direct service is subdivided into three categories: direct instruction, indirect
instruction and departmental research. The Instruction function also is separated into four student levels:
lower division, upper division, graduate I and graduate II. Each of these cost categories and the student
enrollment levels are defined more completely in Chapters II and III. Figure I-1 displays, graphically, the
breakdown of direct expenditures among the primary functions. The direct expenditures shown in Figure I-1
also are classified by discipline. Definitions for academic disciplines are provided in Chapter III.
I - 2.2 Support Costs
After direct service costs are allocated to the primary functions, the remaining costs associated with all
budgetary units are classified into one of several support categories. Briefly, support costs are allocated to the
following cost categories:
1.
Departmental Overhead
2.
College Overhead
I-1
I-2
3.
Overhead Unique to a Function
4.
Academic Support
5.
Student Services
6.
Independent Operations
7.
Institutional Support
8.
Operation and Maintenance of the Physical Plant
Costs within each of these categories are allocated among the three primary functions. Figure I-2
displays the relationship between all cost categories and primary functions.
I - 2.3 Instructional Units Costs
After all state appropriated funds have been distributed among the three primary functions and
classified by cost category, instructional unit costs are derived by dividing costs by student credit hours
generated in each instructional level within each discipline. Of course, units costs at various levels of
aggregation also are possible. A complete and detailed description of the procedures for defining and
classifying student credit hours is provided in Chapter III.
I - 3.0 Historical Development
The Cost Study is an outgrowth of the Illinois Master Plan for Higher Education-Phase I and has been
in use since fiscal year 1965. In the master planning activities, the Illinois Board of Higher Education began
to develop consistent procedures for collecting information on public university financial operations. Arthur
Andersen and Company was retained to review existing financial information maintained by universities. A
Budget Formula Committee was formed and, with the help of the Arthur Andersen report1, developed the first
procedures for the Cost Study.
In 1970, the Faculty Studies Task Force established a subcommittee to review the Cost Study
procedures. New procedures, adopted in January of 1972 involved new definitions of graduate I and II
instructional levels, a new discipline taxonomy, and a new functional category called organized activities.
The Cost Study procedures were again reviewed in 1975 by a technical committee of Board staff and
system and institutional representatives.
Changes that were adopted by this committee included a revised time table for submission of data, use
of end-of-year estimated expenditures rather than audited expenditures, inclusion of off-campus instructional
activities, a closer conformity to the Resource Allocation and Management Program (RAMP) structure for
financial planning and management, and procedures for producing the program/major unit cost and faculty
load studies. Since 1975 other changes have been made as a result of annual discussions with institutional and
system representatives and the work of a more formally organized review committee which met in 1980. The
original revision of this manual reflects all changes made by the Spring of 1982. Any further revisions will be
made by supplementing or replacing pages in this manual.
1
Review of Comparability of Data Relating to Educational and General Expenditures of the Six StateSupported Universities for the Fiscal Years Ended June 30, 1960, 1961 and 1962.
I-3
I-4
CHAPTER II
THE CLASSIFICATION OF COSTS
II - 1.0 Overview
This chapter is concerned with defining and classifying the costs of the university. The Cost Study
divides costs into two broad categories, those that provide direct service and those that provide support for
direct service activities. Throughout this Manual, direct service refers to direct instruction, indirect
instruction, departmental research, direct organized research, or direct public service. Section II-2.0 discusses
direct costs and includes definitions for the three primary functions and cost categories. Support cost
categories are discussed in Section II-3.0. Direct costs are determined from the FAA which is discussed in
Sections II-4.0 through II-4.6. The Faculty Credit Hour Study, which is published annually by the Illinois
Board of Higher Education, is described in Section II-5.0 through II-6.1.
II - 2.0 Direct Costs
The FAA is used to classify faculty and administrator activities. The salaries associated with the direct
service activities are allocated among the three primary functions--Instruction, Organized Research, and
Public Service. Salaries and other expenditures not assigned to direct service costs are allocated to one of the
support cost categories. Support costs categories are defined beginning in Section II-3.0 and the technical
procedures of the FAA are discussed in Section II-4.0. The sections below discuss the Direct Costs associated
with the three primary functions. The definitions are derived from RAMP for public universities.
II - 2.1 Instruction
This primary function consists of those activities carried out for the explicit purpose of eliciting some
measure of educational change in a learner or group of learners. "Educational change" is defined to include:
1.
Acquisition or improved understanding of some portion of a body of knowledge.
2.
Adoption of new or different attitudes.
3.
Acquisition or increased mastery of a skill or set of skills.
Activities carried out to elicit educational changes include both "teaching" activities and "facilitating"
activities. Academic advising is generally carried out in support of an instructional program.
II - 2.11 Direct Instruction
Direct Instruction includes activities associated with direct contact instruction of students in specific
courses, supervision of student teaching and applied studies, thesis supervision, independent study and
tutorials.
II-1
II - 2.12 Indirect Instruction
This category includes those assigned activities which encompass duties closely related to Direct
Instruction of students other than direct contact teaching. A sample of activities and whether they should be
assigned to indirect instruction is provided below.
Indirect
Instruction
Yes
1.
Activity
Meeting with advisees
2.
Coaching an intercollegiate athletic team
No
3.
Meeting with teaching assistants responsible for
separate sections of an introductory course
Yes
4.
Setting up glassware for chemistry lab classes
Yes
5
.Writing a computer program to be used by students
in next semester's class
Yes
6.
Teaching remedial math or reading
No
7.
Directing a play sponsored by the department
Yes
8.
Serving as director or curator of the university's
museum
No
Academic Support
9.
Chairing a departmental committee
No
II-2
If Not, What?
Student Services
Direct Instruction
II - 2.13 Departmental Research
This category should include research duties specifically assigned to a faculty member by the head of
an academic department or a departmental committee. Such assigned effort, which usually need not be
approved by a university research committee, may contribute to the professional development of a faculty
member and lead to publication or other scholarly recognition. With the exception of a released time
institutional contribution required by the terms of an externally (i.e., non-university) funded research grant, all
research effort assigned at the departmental level should be included as Departmental Research. Departmental
Research should not be used as a catch-all for residual faculty activities which cannot be categorized
elsewhere. If there are departmental activities which cannot be categorized elsewhere, they should be included
in the Departmental Overhead category (see Section II-3.1 below). Neither Departmental Research nor
Indirect Instruction can be classified as Organized Research or Public Service.
II - 2.2 Organized Research
Activities outside the department intended to produce one or more research outcomes including the
creation of knowledge, reorganization of knowledge, and the application of knowledge are to be reported in
Organized Research. Research duties specifically assigned to a faculty member by the head of an academic
department or a departmental committee and financed with departmental funds should be classified as
Departmental Research (see Section II-2.13).
Outside the department, Organized Research activities may be conducted by a number of organizational
entities including research centers, bureaus, institutes and experimental stations. State supported laboratory
schools also are considered separately organized research centers.
Organized Research may be carried out on an individual or project basis if financed from centrally
administered, competitive institutional grants to individual faculty members. These awards support research
activity during the summer term for faculty on academic year appointments.
Direct service expenditures within Organized Research also includes that proportion of research that is
supported by in-kind departmental contributions to the cost of an externally funded research project. Such a
contractual relationship with an entity outside the university is necessary to classify such expenses as
Organized Research.
II - 2.3 Public Service
Public Service includes those program elements established to make available to the public the various
unique resources and capabilities of the institution for the purpose of responding to a community need or
solving a community problem. This function consists of various nondegree instructional programs which are
classified as community education and various consulting activities which are assigned to faculty or other
representatives of the university community. No activity, however, should be classified and recognized as an
official university activity unless it has been officially assigned by a department head, dean, vice president or
president. For example, faculty consulting for a community agency which is not a part of an official
university assignment would not be reported in this function, nor would it be reported in any other function.
In some cases, institutes and centers may be organized for the purpose of providing Public Service. For
example, an agriculture experimental station provides both Organized Research and Public Service. However,
only Public Service activities of such a station should be classified in this function.
Direct service supplied to a broadcasting service operated for the benefit of the general public should be
classified here. In some cases, however, broadcasting services also are utilized to support instructional
programs in radio and television communications. Faculty and staff activities associated with the instructional
component of this service should not be categorized in this function but should be allocated to the Instruction
function. Broadcasting services operated as a student service, limited only to the geographical area of the
university campus for the benefit of students, staff and faculty, should be classified under student services (see
Section II-3.5 below).
II-3
Direct service expenditures within Public Service also include that proportion of public or community
service that is supported by in-kind departmental contributions to the cost of an externally funded community
service project. Such a contractual relationship with an entity outside the university is necessary to classify
such expenses as Public Service.
II - 3.0 Support Costs
Support Costs are composed of those expenditures from the FAA which are not allocated to direct
service and those expenditures from organizational units designed to support direct service. Support costs are
assigned to eight different cost categories. Each category is defined and described below.
II - 3.1 Departmental Overhead
Departmental Overhead is the first category of support activities. As such, it represents those
departmental activities that cannot be classified as direct service. It includes administrative duties and the
activities of office support personnel, and other departmental contractual services. It also includes equipment
and supply costs and sabbatical leave costs. These will be discussed more fully in the chapter on allocating
costs.
II - 3.2 College or School Overheads
This category includes all administrative activities at the college or school level. It is separated from
the normal RAMP functional classification programs in order to reflect academic support activities that are
limited to a subset of disciplines. It should include all administrative duties, and the activities of college or
school level support personnel. Clerical and other contractual services associated with the college or school
office also would be classified here. As was the case with departmental overheads, college level equipment
and supply costs and the costs involved in administrative leaves should be included in this category.
II - 3.3 Overhead Unique to a Function
Activities which support only a single primary function are to be classified in this category. As an
example, Table II-1 lists several organizational units and illustrates whether each should be allocated to
Overhead Unique to a Function. If so, it shows which primary function; and, if not, the other cost category to
which it should be allocated.
II - 3.4 Academic Support
Academic Support activities are carried out in direct support of the three primary functions:
Instruction, Organized Research and Public Service. They are to be distinguished from support programs such
as student services and institutional support (Sections II-3.5 and II-3.6). Academic support includes activities
related to the preservation, maintenance, and display of both the stock of knowledge and educational materials
(for example, library services and museums), teaching hospitals and clinics, and activities directly related to
the administration of academic programs. Activities associated with academic administration and academic
senates should be included here.
II-4
Table II-1
EXAMPLES OF ACTIVITIES ALLOCATED (OR NOT ALLOCATED)
TO OVERHEAD UNIQUE TO A FUNCTION
Activity
Include in
Overhead Unique
to a Function
If Yes, Which
Function?
If No, What Other
Category?
1. High School/Community
College Relations
Yes
Instruction
2. Equipment and Supplies for
an Institute or Center
No
3. Office of Grants and Contracts
Management
Yes
4. Campus Radio Station
No
5. Registration, Admissions and
Records
Yes
Instruction
6. Administration of Physical
Education Facilities
Yes
Instruction
7. Administration of a Nuclear
Reactor Test Facility
No
College or School Overhead in College of
Science or Engineering
8. Campus Museums
No
Academic Support
9. Administration of Continuing
Education
Yes
in Public Service or
Organized Research
Organized
Research
Direct Instruction or
Public Service in
Appropriate Discipline
or Student Services
Instruction or
Public Service*
*If the Continuing Education office serves both the instruction and public service functions, then the
administrative costs of the office should be split between the two using a special activity analysis
submitted with the discipline costs.
II - 3.5 Student Services
Student Services activities: 1) expand the dimensions of the students' educational and social
development by providing cultural, social, and athletic experiences; 2) provide those services and
conveniences needed by students as members of an on-campus, resident student body; and 3) assist students in
dealing with personal problems and relationships as well as in their transition from a student to a fully
contributing member of society and the labor force. In addition to these types of activities, student services
also include student financial assistance activities. Examples of activities included are lecture series, music
activities, art exhibitions, concerts, films, intramural athletics, recreation programs, student government,
II-5
student yearbook, student magazines and student clubs. In addition, activities associated with counseling and
career services, student health services, intercollegiate athletics, and the financial aid office should be
classified in this category. All costs in this category are allocated to the Instruction function.
II - 3.6 Independent Operations
This category includes the activities associated with student auxiliary services and programs and
activities which are unrelated to the primary missions of the university. Student auxiliary services include
those activities which are provided for the comfort and convenience of an on-campus, resident student body
and should be classified into this category. Fees are normally charged to students for these services. The
following activities are examples of student auxiliary services: Housing Services, Food Services, Retail
Services and Concessions, and Specialized Services. Other Independent Operations might include airports,
conference centers, restaurants and hotels. All costs in this category are allocated to the Instruction function.
II - 3.7 Institutional Support
The Institutional Support category includes those activities which support the institution's overall
functioning. The activities do this by: 1) providing for planning and executive direction; 2) providing for
administrative and logistical services; 3) enhancing relationships with the institution's constituencies; and 4)
providing services and conveniences for the employees of the institution. Examples of activities included:
Board of Trustees, Governing Board, Chancellor, President, Provost, Vice-Chancellors, Vice-Presidents,
institutional research, budget planning, and academic planning and facilities planning committees. Also
included in this category are payroll operations, bursar, cashier, treasurer, comptroller, business officer,
internal auditing, endowment management, the affirmative action office, receiving/shipping, inventory control,
room scheduling, personnel administrative and faculty and staff auxiliary services. Public relations offices,
governmental relations offices, alumni events and publications, and fund raising activities also are classified
here. Those administrative activities that do not have an institution-wide focus should be classified elsewhere.
II - 3.8 Operation and Maintenance of Physical Plant
This category consists of those activities related to maintaining existing grounds and facilities,
providing utility services, campus security and fire protection, physical plant transportation, and rental of
space. In addition, those activities related to the direct and indirect supervision and administration of the plant
operation and maintenance program should be classified here.
II - 4.0 Faculty Activity Analysis Procedures
The FAA is a way of classifying the officially assigned activities of faculty and staff to the primary
functions and cost categories defined above. As such, it is the basic building block of the Cost Study. The
sections below describe who should complete a FAA and what information the FAA should supply.
II - 4.1 Whose Salaries Should be Allocated
All faculty and administrative employees assigned to provide direct service should complete a FAA. At
the discretion of the institution, other personnel may or may not be required to complete a FAA. Faculty
employees are those personnel having academic rank who have departmental assignments in instruction,
organized research and public service. This includes academic department heads. The faculty employee
category includes professors, associate professors, assistant professors, instructors, lecturers and graduate
assistants. Graduate research and teaching assistants should all be classified as Graduate Assistants.
"Administrative employees" are defined as those with primary executive, administrative, and management
assignments within the university. These assignments involve planning, organizing, managing and directing
the university and its sub-units.
Employees classified as Other Professionals who provide direct service, should be required to complete
a FAA. Other Professionals are those employees with non-civil service appointments with primary
II-6
responsibilities in noninstructional areas and who cannot be classified as Administrative. An example might
be the assistant librarian. These employees may work under the direction of an administrative employee with
primary executive and managerial assignment, but will not have a primary executive or managerial assignment
themselves. Part-time and temporary employees meeting these definitions also should complete a FAA.
II - 4.2 Who Should Not Complete a FAA
Civil Service employees and employees paid from non-state appropriated funds (excluding cost
recovery funds) are not required to complete the FAA.
II - 4.3 What Should be Counted
The Cost Study operates on the concept of official assignments. The FAA should account for 100
percent of the officially assigned activities paid for by state appropriations (excluding cost recovery funds) and
categorized among the three primary functions.
II - 4.4 How Should They be Counted
The distribution of assigned activities should be expressed in percentage terms and reflect the official
assignments by a supervisor, such as a department head or dean. Figure II-1 illustrates how the sum of a
faculty or staff member's assignments should total 100 percent.
Figure II-1
ACTIVITY CATEGORIES
Category
A.
Percent of Time
Direct Service Activities
Instruction
1.
Direct Instruction
2.
Indirect Instruction
3.
Departmental Research
Organized Research
1.
Direct Research
Public Service
1.
B.
Direct Service
Support Services Activities
TOTAL (100 percent of officially assigned workload from state appropriated funds)
For faculty providing direct instruction, the FAA should identify the specific courses taught so that they
may be cross-referenced with course files.
II-7
II - 4.5 Sample Faculty Activity Analysis
Figure II-2 is a sample FAA form. Note that all three direct cost categories, direct and indirect
instruction and departmental research are differentiated on the form. The two other primary functions,
Organized Research and Public Service, also are included. On this particular form, space is provided for
specific information such as credits and enrollments by instructional level. This is not a necessary part of the
form as long as this same information is available from course records.
At the bottom of the form, the department head provides the percentages of assigned activities for the
various functions. These percentages will be used to distribute salaries across functions.
II - 4.6 Examples
1.
Dr. Schwann, in filling out her FAA, estimated that she spent 22 hours per week in direct
instructional activities this past term, teaching two physiology courses. She also estimated she
spent five hours per week advising students and about two and one-half hours per week serving
on the advisory board of a local medical clinic. Most of Dr. Schwann's time was occupied by
her research project on phosphorylation--22½ hours per week. Dr. Schwann's FAA is shown as
an example in Figure II-3. Notice the bottom of Dr. Schwann's FAA. Her department chairman
reviewed her form and supplied the appropriate percentages. It is these percentages that are used
to allocate salary. Dr. Schwann's annual salary is $30,000. Based on her FAA, direct salary
costs would be divided as follows: $6,000 to direct instruction (.4 x $30,000/2), $1,500 to
indirect instruction, $6,750 to departmental research, and $750 to public service.
Since Dr. Schwann served on the medical clinic's advisory board at the request of her department
chairman, this activity is a legitimate public service activity.
2.
Dr. Jones is the Director of Institutional Research at the public university. Last semester the
vice-president assigned Dr. Jones to teach a course for the statistics department in addition to his
regular duties as the Director. Dr. Jones was instructed to spend five hours per week in direct
instruction. Dr. Jones' annual salary is $32,000 and his contract is for 12 months. Since the
semester at his institution is four and one-half months long, and since 12½ percent of Dr. Jones'
time was spent on direct instruction that semester, $1,500 would be allocated to direct instruction
and assigned to the statistics department: (4.5 ÷ 12) x .125 x $32,000. The remaining $30,500
would be allocated to Institutional Support and distributed among the disciplines according to
the procedures described in Chapter IV.
II-8
II-9
II-10
II - 5.0 Faculty Credit Hour Study
The completed FAA forms allows the institution to calculate the credit hours produced per staff year by
discipline and instructional level. Each year the Illinois Board of Higher Education publishes the results of the
most recent Faculty Credit Hour Study.
II - 5.1 Staff Years
A staff year is a measure of staff effort over a 12-month period. For professional personnel other than
those holding faculty appointments, a staff year is defined as a person in a full-time position working for one
year, including vacation. Part-time positions, or those which are of less than a year's duration, should be
counted as the appropriate portion of a staff year. For example, if the normal work week is 40 hours, a
position requiring 20 hours work per week would be .5 staff years; a position requiring 40 hours per week for
nine months would be .75 staff years. The university definition of normal work week should be used for staff
year calculations. For faculty appointments, one staff year is the equivalent of a full-time teaching load for 12
months including one month vacation. There are two steps in determining faculty staff years. First, the
workload of each faculty member should be expressed as the appropriate fraction of a full-time workload.
Normally, the fraction of a workload is included in a faculty member's contract. While each institution
employs its own definition of a full-time teaching load, usual practice is between nine and 12 credit hours per
term.
Definition of workloads for graduate assistants should be on approximately the same basis as regular
faculty. For example, if a full-time faculty load is 12 credit hours per term, a graduate student teaching three
hours would be .25 of a normal full-time workload. Graduate assistants with noninstructional assignments
may have workloads defined in terms of hours worked per week assuming a full-time workload of 40 hours
per week.
For faculty and staff who receive part of their salary from non-state funds, only that proportion of their
workload that is paid from state appropriated funds should be counted towards a staff year. Similarly, if onethird of a faculty member's time has been assigned to something other than the three primary functions or
departmental, college or school overhead, then for the purposes of the Faculty Credit Hour Study, the
workload is two-thirds full-time.
The second step in determining staff years is to count the number of months an individual is on
contract, and multiply the workload fraction by the number of months worked. The resulting "staff months"
figure is then divided by 12 to arrive at staff years. Thus, a professor teaching a normal full-time workload on
a nine-month contract would he converted into staff years as follows:
1 full-time workload x 9 months = 0.75 staff years
12 months
A lecturer teaching half-time on a 12-month contract would be converted to staff years as follows:
.5 full-time workload x 12 months = 0.5 staff years
12 months
II - 5.11 Summer Compensation
Frequently a faculty member who has a nine-month contract is afforded the opportunity to teach in the
summer. If support for that summer contract is from state appropriated funds, then the summer assignment
should be added to the faculty member's staff-year total. If the summer contract is full-time for three months
then the summer assignment represents .25 staff years (3 ÷ 12) and should be added to this staff member's staff
year figure for the ensuing academic year.
II-11
II - 5.12 Extra Compensation
Any teaching duties above and beyond a full-time workload in any given term should be considered
"extra compensation" and the equivalent overload staff years added to the total. For example, if a normal fulltime workload is defined as 12 credit hours per semester and a faculty member teaches 15 hours the first
semester and 12 hours the next, then this faculty member would end up with .844 staff years.
15 hours x 4.5 months + 12 hours x 4.5 months
12 hours
12 h ours
.
12 months
Overload staff years should not be computed on the amount of the adjustment to salary.
II - 5.2 Allocation of Staff Years
Staff year assignments are allocated to the various functions and cost categories in the following
sequence.
1.
A total staff year assignment is calculated for each staff member based on contractual
terms and employment records.
2.
Total staff year assignments are allocated to the three primary functions (Instruction,
Organized Research, and Public Service) based on the assignments shown on the FAA.
3.
Within the Instruction function, staff year assignments are allocated to the cost categories
direct instruction, indirect instruction and departmental research based on assignments in
the FAA.
4.
Within the direct instruction category, staff year assignments are assigned to courses based
on the credit hour value of the courses. In the cases of independent study and thesis
supervision, however, the credit hour value may not accurately reflect the teaching effort
required. In these cases it is preferable to use the proportion of independent study or thesis
contact hours to total contact hours as the method of allocating staff years.
5.
Within each course, staff year assignments are allocated to instructional levels based on the
distribution of credit hours.
6.
Staff year assignments for indirect instruction and departmental research are allocated to
the instructional levels in direct proportion to the distribution in the direct instruction
category.
7.
Staff having departmental administration assignments have their staff years distributed to
the primary functions in proportion to the total departmental staff year assignments to those
functions.
8.
The portion of the departmental administration staff years assigned to the Instruction
function are distributed to student level based on the distribution of total staff years to level
within the department.
9.
Student credit hours, staff year assignments by student level, and staff year assignments for
Organized Research and Public Service are accumulated to the four-digit CIP level.
10. Student credit hours, staff year assignments by student level and staff year assignments for
Organized Research and Public Service are accumulated across terms to an annual total.
For the purposes of the Cost Study, the summer term is considered the first term of the
II-12
ensuing fiscal year. For example, credit hours and staff year assignments that begin in the
summer term before July 1, 1995 would still be included as part of the fiscal year 1996
Cost Study.
II - 5.3 Example
In Section II-4.0 a sample FAA form was shown for Dr. Schwann. Since all of Dr. Schwann's salary is
paid from state funds and all of her assignments are attributable to one or more of the three primary functions,
all of Dr. Schwann's staff year assignments for the year would be 1.0. Since Figure II-3 shows activity for
only one semester (4½ months), it represents .375 staff years. At the bottom of her FAA, Dr. Schwann's
department head has summarized her assignments in percentage terms. Dr. Schwann's .375 staff year
assignment for this term would be allocated as follows:
Instruction
Organized Research
Public Service
(0.95 x .375) =
(0.00 x .375) =
(0.05 x .375) =
Total
0.356
0.000
0.019
0.375
Within the Instruction function, staff years for direct and indirect instruction and departmental research
would be allocated as follows:
Direct Instruction
Indirection Instruction
(0.40 x .375) =
(0.10 x .375) =
(0.45 x .375) =
Total
0.150
0.038
0.168
0.356
Dr. Schwann taught two courses this term. Her direct instruction staff year assignment would be
distributed to these two courses as follows:
Course
Physiology 101
Physiology 201
Credits
4
3
Proportion
of Total
Credits
.571
.429
Staff Year
Assignment
086
064
The staff year assignment for Physiology 101 can be apportioned to the individual student levels based
on credit hours as follows:
Staff Year
Instruction Level
Credit Hours
Percent
Assignment
Lower Division
Upper Division
Graduate I
Graduate II
Total
0
124
60
0
67.4
32.6
-
000
058
028
.000
184
100.0
.086
II-13
The staff year assignment for Physiology 201 can be apportioned to the individual student levels based
on credit hours as follows:
Staff Year
Instruction Level
Credit Hours
Percent
Assignment
Lower Division
Upper Division
Graduate I
Graduate II
Total
0
300
60
0
83.3
16.7
-
.000
.053
.011
.000
360
100.0
.064
The direct instruction staff year assignments for Dr. Schwann's two courses total as follows:
Instruction Level
Staff Year
Assignment
Percent
Lower Division
Upper Division
Graduate I
Graduate II
0.000
0.111
0.039
0.000
74.0
26.0
-
Total
0.150
100.0
Dr. Schwann's staff year assignments for indirect instruction and departmental research would be
apportioned to the four instructional levels based upon the proportionate distribution in direct instruction.
Instruction Level
Indirect
Instruction
Lower Division
Upper Division
Graduate I
Graduate II
0.000
0.028
0.010
0.000
0.124
0.044
-
0.038
0.168
Total
Departmental
Research
Figure II-4 summarizes Dr. Schwann's semester assignments in staff-year terms. Individual staff-year
assignments should be summarized to the four-digit CIP code level as described in the Appendix.
II - 6.0 Submission Requirements
Each public university will submit to the Illinois Board of Higher Education the annual staff year
assignments summed to the four-digit CIP level. It is not necessary to submit a Faculty Credit Hour Study for
each term. It also is not necessary to submit a record for which the staff years for all functions is zero. After
staff year assignments have been accumulated, they should be rounded to two decimal places and the decimal
points should not be punched. Information should be submitted in machine readable form. The tape should
be a standard label, nine-track, 6250 b.p.i., with a logical record length of 80 (LRECL = 80). Block sizes
should be approximately 4,000.
II-14
Figure II-4
DR. SCHWANN'S STAFF YEAR ASSIGNMENTS FOR FALL SEMESTER
Lower
Upper
Division Division
Graduate Graduate
I
II
Organized Public
Research Service
Total
0.169
Direct Service
0.000
0.111
0.039
0.000
0.000
0.000
0.028
0.010
0.000
-
-
0.038
0.000
0.124
0.044
0.000
-
-
0.168
0.000
0.263
0.093
0.000
Total
0.000
0.019
0.019
0.375
II - 6.1 Record Format
The following formats should be used to submit data for the Faculty Credit Hour Study. All fields
should be right-justified.
Columns
Code
Field
1-2
Institution
01
02
03
04
05
06
07
09
10
11
08
12
13
Chicago State University
Eastern Illinois University
Governors State University
Northeastern Illinois University
Western Illinois University
Illinois State University
Northern Illinois University
Southern Illinois University at Carbondale
Southern Illinois University at Edwardsville
University of Illinois at Chicago
University of Illinois at Springfield
University of Illinois at Urbana-Champaign
University of Illinois-General University
3
b
Blank
4-7
#
Four-digit CIP discipline codes
8
b
Blank
9
Student Instruction Level
1
2
3
4
5
Lower Division
Upper Division
Graduate I
Graduate II
Total
10
b
Blank
11-12
#
Last two digits of fiscal year (e.g., FY1995 = 95)
II-15
13
b
Blank
14-20
#
Total credit hours for appropriate student level
21-27*
#
Staff years for Direct Instruction
28-34*
#
Staff years for Indirect Instruction
35-41*
#
Staff years for Departmental Research
42-48*
#
Staff years for Departmental Administration
49-55*
#
Staff years for Total Departmental
56-62*
#
Staff years for Organized Research
63-69*
#
Staff years for Public Service
70-77**
#
Staff years for All Functions
78-80
b
Blank
*All of these fields are seven columns in length with two decimal positions implied. The decimal point should
not be punched.
**This field is eight columns long with two decimal positions implied. The decimal point should not be
punched.
II-16
CHAPTER III
STUDENT AND COURSE FILES
III - 1.0 Overview
This chapter discusses the necessary student and course records for producing the Cost Study. The
definitions of courses and credits to be included in the Cost Study are presented in Section III-2.0. Section III3.0 describes which students should be counted for Cost Study purposes and provides definitions for student
levels. The new Classification of Instructional Programs (CIP) which assigns CIP numbers to disciplines and
programs is discussed in Section III-4.0. Section III-5.0 discusses the relationship between Cost Study credit
hours and those reported in RAMP. Section III-6.0 describes the Induced Course Load Matrix (ICLM) and
provides record formats for submitting the ICLM.
III - 2.0 Courses and Credits
Only courses taught by faculty and staff paid from state appropriated funds (excluding cost recovery
funds) are to be included in the Cost Study. Credit hours generated from courses taught by faculty members
whose salaries are paid from non-state appropriated funds, such as external grants or agencies, should be
excluded from the Cost Study. All credit hours should be expressed as semester credit hours. Each quarter
credit hour is equal to two-thirds of one semester credit hour.
III - 3.0 Students
Only students still enrolled by each term's census date should be counted in the Cost Study. The census
date should be set no earlier than ten working days after the close of registration or the day which a student is
obligated to pay at least 50 percent of that term's tuition and fees, whichever is later.
If registration for off-campus and/or late starting classes is not held at the same time as registration for
on-campus classes, then a separate census date for these classes should be established. This separate census
date also should meet the 50 percent of tuition and fees obligation outlined above.
Credit hours generated by students enrolled in courses that have been excluded from the Cost Study
according to the guidelines in Section III-2.0 above, should not be included in the Cost Study.
III - 3.1 Student Levels
For the purposes of the Cost Study, student levels are defined as follows:
1.
Lower Division: An undergraduate student who has completed fewer than 60 semester
hours (90 quarter hours) or the equivalent. According to this definition, then, Governors
State University and the University of Illinois at Springfield should not report lowerdivision credits since they do not admit lower-division students. All students pursuing an
associate degree should be classified as lower division regardless of the credit hours they
have earned.
2.
Upper Division: An undergraduate student who has completed at least 60 semester hours
(90 quarter hours). Also, students who may have graduated but who have not yet been
admitted to the graduate division or to a professional college or school giving a postbaccalaureate degree should be considered upper division students.
III-1
3.
Graduate I: A student holding a bona fide bachelor's degree who has been admitted to the
graduate division or to a professional school either as a candidate for a master's degree, or
advanced degree or certificate, or as an unclassified graduate student.
4.
Graduate II: A student holding a bona fide master's degree or certificate beyond the
master's degree, who has been admitted to a doctoral program. Also a student holding a
bona fide bachelor's degree and who has been admitted to a doctoral program who has
completed at least 30 semester credit hours toward the doctoral degree.
III - 4.0 Classification of Instructional Program
The Cost Study uses the Classification of Instructional Programs published by the National Center for
Education Statistics (NCES) to group disciplinary programs. This classification scheme assigns a two-digit
number to 50 general disciplinary programs. Each program is further subdivided by assigning a four-digit
number to specific curricula. The resulting six-digit number allows a level of specificity that can reflect the
unique program mix at each institution. Annually, the Board of Higher Education provides institutions a
listing of approved instructional programs in Illinois public universities and their corresponding six-digit
codes.
III - 4.1 Student Majors
At some point, each student is officially accepted into a degree major. For the purposes of the Cost
Study, a student's major is limited to one of the institution's authorized degree programs to which a six-digit
CIP number has been assigned. Students who have not yet officially declared a major should be classified as
undecided and given a CIP code of 000000.
III - 6.0 Induced Course Load Matrix
All of the student and course information used in the various reports of the Cost Study can be
efficiently stored in the form of an ICLM. Essentially, an ICLM identifies the credit hours generated in any
given discipline by student level and major. For example, an ICLM will identify how many credit hours in
English were generated by lower division Physics majors.
Figure III-1 presents an abbreviated ICLM. The disciplines are aggregated in the left column and the
program majors are specified across the top. In this example, lower division linguistics majors took 360
credits from the English discipline and upper division chemistry majors took 23 credits from the psychology
discipline. Looking at the sample ICLM from another perspective, 63 percent of the credit hours generated by
chemistry majors were taken in the chemistry disciplines, while only 26 percent of the credit hours generated
by business and management majors were in the business administration discipline.
III - 6.1 Submitting the Induced Course Load Matrix
Each institution will submit to the Illinois Board of Higher Education its ICLM for the preceding year.
The matrix should contain all the credit hours generated and equal those reported on the discipline costs. The
matrix also should show the four-digit codes indicating the disciplines offering the credit hours, the six-digit
CIP codes of the majors taking the credits, the institution and year codes. It is not necessary to submit a record
in which all credit hour fields are zero. This information should be submitted in machine readable form, either
on punched cards or magnetic tape. If magnetic tape is submitted, it should be a standard label, nine-track,
6250 b.p.i. tape. The logical record length (LRECL) should be 80 and the block size of approximately 4,000.
III-2
III-3
III - 6.2 Record Format
The following codebook indicates in which fields information is to be punched.
Columns
Code
Field
1-2
Institution Code
01
02
03
04
05
06
07
09
10
11
08
12
13
3
b
Blank
4-7
#
Four-digit CIP code representing discipline from which
credit hours emanated.
8
b
Blank
9-14
#
Six-digit CIP code representing majors taking the credit
hours from the above discipline.
15
Program sub-code.
16-17
#
Last two digits of fiscal year (e.g., FY1995 = 95).
18
b
Blank
19-26
#
Number of credit hours taken by lower division majors
in the above discipline.
27
b
Blank
28-35
#
Number of credit hours taken by upper division majors
36
b
Blank
37-44
#
Number of credit hours taken by graduate I majors in
the above discipline.
45
b
Blank
46-53
#
Number of credit hours taken by graduate II majors in
the above discipline.
III-4
54
b
Blank
55-62
#
Total number of credit hours taken by the above major
63-80
b
Blank
Note: All credit hour fields are eight columns in length and credit hours should be right-justified.
III - 6.3 Example
An abbreviated ICLM was presented in Figure III-1. Figure III-2 shows how selected credits from
English majors (code 230101), Chemistry majors (code 400501), and Business and Management (code
520201) might be coded.
III-5
III-6
CHAPTER IV
ALLOCATING COSTS
IV - 1.0 Introduction
Chapter II demonstrated how the FAA is used to classify activities to the direct and indirect instruction
and departmental research categories of Instruction and to direct services under Organized Research and
Public Service. The other cost categories defined in Sections II-3.1 to II-3.8 are considered support categories.
This chapter will discuss how the costs associated with these categories are allocated among the academic
disciplines and instructional levels and presents a detailed case study of allocation procedures.
IV - 2.0 Fiscal Year Expenditures
Financial data reported in the Cost Study should include all expenditures from state appropriated funds
for a fiscal year, including the lapse period (i.e., July 1 to September 30). Appropriations which have not been
obligated by June 30 and expended by September 30 should not be included in the Cost Study but reported as
"estimated lapsed appropriations" on Form C. Form C is a reconciliation of Cost Study expenditures to total
estimated state appropriated operating expenditures. A sample Form C is shown in the Appendix.
IV - 2.1 Excluded Expenditures
The following classes of expenditures should be excluded from the Cost Study.
1.
All nonappropriated funds, including state funds received through contracts with other
state agencies.
2.
All funds appropriated for capital expenditures.
3.
Retirement contributions.
4.
Cost recovery revenues from self-supporting activities.
5.
State and federal student financial aid, including awards, grants, fellowships, fee
payments and loans. Appropriated funds which pay for student employment, however,
should be included in the Cost Study.
6.
Costs for Workers Compensation.
7.
Overhead costs for the University of Illinois Medical Center and the Schools of Medicine
and Dental Medicine at Southern Illinois University.
8.
Costs associated with operations of university presses.
Form C allows space for these excluded costs to be itemized.
IV - 3.0 Summer Session
Most summer sessions extend across two fiscal years. Since most costs incurred in a summer session
are associated with appropriations of the succeeding fiscal year, the summer session is considered the first
term of the fiscal year. For example, the summer session in 1995 is considered the first term in the fiscal year
1996 Cost Study. Thus, all costs and credit hours associated with the 1995 summer session are reported in the
fiscal year 1996 Cost Study.
IV-1
IV - 4.0 Cost Reconciliation Forms
Form C reconciles Cost Study expenditures to total estimated state appropriated operating expenditures.
After a university's expenditures have been audited, Form D will reconcile the audited expenditures with the
estimated expenditures reported on Form C. Copies of both forms are shown in the Appendix. If the
difference between audited and estimated expenditures is greater than one percent, it may be necessary to
recalculate and resubmit the Cost Study using final audited expenditure data.
IV - 5.0 System Offices
Costs for the system offices of the Board of Governors Universities, Board of Regents, and Southern
Illinois University should be allocated to each university within the respective system based on that
university's proportion of the total system appropriations. For example, if Eastern Illinois University received
20 percent of the amount appropriated to all universities in the Board of Governors system, then 20 percent of
the appropriations for the governing board should be allocated to Eastern Illinois University. These costs
should be assigned to the institutional support category.
IV - 6.0 Allocating Costs
Chapters I and II discuss the direct and support costs allocated among the three primary functions-Instruction, Organized Research and Public Service. In the Cost Study it is necessary to allocate these costs
by discipline and to allocate the costs for instruction among the four enrollment levels. The remainder of this
chapter will discuss how each cost category is to be allocated to the primary functions, the enrollment levels
within the Instruction function, and the discipline.
IV - 6.1 Allocating Salaries
First, faculty and staff salaries should be allocated based on the completed FAA form discussed in
Chapter II. Assignment of salaries to each of the primary functions is discussed below.
IV - 6.2 Instruction
As described in Chapter II, costs associated with the Instruction function are further divided in two
ways. They are first separated into direct instruction, indirect instruction and departmental research depending
on assignments. They also are divided into four instructional levels--lower division, upper division, graduate I
and graduate II--based upon student enrollment in courses. (See Section II-2.0 to II-3.8 for definitions of the
cost categories and Section III-3.1 for definitions of the four instructional levels.)
IV - 6.21 Direct Instruction
Allocation of salaries to direct instruction is based on the FAA. Within the direct instruction category,
salaries are further allocated among the six-digit CIP codes of the courses taught. The salaries are assigned to
each course based on that course's proportion of total credits taught by the faculty member. For example, Dr.
Schwann was shown in Section II-4.6 to have provided seven credits worth of direct instruction in two
physiology courses, both of which have a CIP code of 260706. Physiology 101 carried four credits so 4/7 of
Dr. Schwann's direct instruction allocation went to Physiology 101. Physiology 201 carried three credits, so
3/7 of the direct instruction salary was allocated to this course.
In the cases of independent study and thesis supervision, however, the credit hour value may not
accurately reflect the teaching effort required. In these cases, it is preferable to use the proportion of
independent study or thesis contact hours to total contact hours as the method for allocating direct instruction
costs.
IV-2
Within each course, the allocation of salaries is allocated to instructional levels based on the enrollment
within each level. To use Dr. Schwann as an example again, upper division students generated 124 of the 184
credit hours in Physiology 101; therefore, this proportion of the costs allocated to this course would be
assigned to upper division. In most cases, however, the course offerings of a department may span more than
one six-digit CIP code. In these cases salaries would be divided between two or more six-digit codes
according to the content of each course being taught.
In other cases, courses offered by one department might be taught by faculty who are assigned to
another department. The allocation of salaries in such a case, again, should be to the six-digit CIP code
associated with the course. The general rule is that the allocation of salaries follows the disciplinary
orientation of the course regardless of its organizational affiliation.
IV - 6.22 Indirect Instruction
If it is possible to allocate indirect instruction salaries directly to a course, for example paper graders
assigned to a specific course, then these costs would be distributed in the same manner as direct instruction
(i.e, by enrollment in each institutional level). Indirect instruction salaries that cannot be allocated directly to a
course should be accumulated for a discipline. The total indirect instruction salaries are then allocated across
instructional levels based on the discipline's direct salary contribution.
IV - 6.23 Departmental Research
When a faculty member is assigned to do departmental research, that portion of his/her salary is
allocated to the instructional levels based on the faculty member's distribution of direct salary for the year.
IV - 6.3 - Organized Research
Faculty salaries for direct organized research are determined from the FAA. If the faculty member
holds a joint appointment in a separately organized research center or institute, the direct service salary should
be assigned to the six-digit CIP code of the center or institute. If the direct service salary of the faculty
member represents departmental cost sharing, then the salary should be assigned to the six-digit CIP code of
the department to which the faculty member is assigned.
IV - 6.4 Public Service
Faculty salaries for public service should be allocated in the same manner as salaries for organized
research. That is, joint appointment salaries should be assigned to the six-digit CIP code of the separately
organized public service center or institute. Cost-sharing salaries should be assigned to the six-digit CIP code
of the assigned department.
IV - 7.0 Allocating Support Costs
Once all direct costs have been allocated, the six-digit CIP codes should be aggregated to the first four
digits. For example, the six-digit CIP codes 260401 and 260402, Cell Biology and Molecular Biology,
respectively, would be aggregated into the same four-digit CIP code 2604. Support costs are allocated to the
four-digit CIP code level.
Every university is encouraged to attribute as many support costs as possible directly to units
responsible for overhead charges through accurate charge-back systems. Travel, telecommunications,
postage, automotive use, academic computing, photocopying and printing services are examples of support
costs which should either be budgeted directly to organizational units or attributable to them based on actual
usage.
Overhead support costs assigned or budgeted to academic departments should be reported as
Departmental Overheads. If the organizational unit to which overhead support costs are assigned or budgeted
IV-3
is not an academic department, they should be reported in the appropriate cost category of the Cost Study. For
example, overhead support of a Student Affairs office should be reported under Student Services.
IV - 7.1 Departmental Overheads
Whenever possible, departmental overheads should be assigned to specific four-digit CIP codes. In
some cases, departments may encompass more than one four-digit CIP code. If an overhead item cannot be
assigned directly to one code, it should be allocated to all codes within a department on the basis of the
subtotal of direct and indirect instruction and departmental research costs. Within any given four-digit CIP
code, overhead costs should be allocated to instructional levels, organized research, and/or public service,
based on the proportion of preceding subtotal costs. An example will help illustrate this procedure.
The biology department at institution Y divides its course offerings between two four-digit CIP codes:
2601, general biology, and 2604, cell biology. In the last academic year, the biology department incurred
$230,959 in department overhead. Figure IV-1 displays the direct costs for code 2601 and Figure IV-2
displays the direct costs for code 2604. The departmental overhead for the biology department can be
allocated as follows. First, since CIP code 2601 accounted for 17.8 percent of the department costs on these
first three categories, a similar proportion, or $41,111, of the departmental overheads would be allocated to
this code, and the remaining $189,848 would be allocated to the code 2604. Second, within each code the
departmental overhead would be allocated to the functions and levels based on their proportion of the subtotal
costs (e.g., lower division in code 2601 would get 39.1 percent of the $41,111). Figures IV-3 and IV-4 show
the direct costs plus allocated department overhead for the two codes in the biology department.
IV - 7.2 College or School Overheads
College or School Overheads should be identified for each school or college according to the definition
in Chapter II. Any specific portion of these costs which can be specifically applied to an individual
department should be allocated to that department in the same manner as departmental overheads (i.e., based
on the proportion of costs at each instructional and function level). Of course, now the cost ratios will be
calculated using the subtotal of direct instruction, indirect instruction, departmental research and departmental
overheads (see Figures IV-3 and IV-4). Written documentation should accompany submitted costs detailing
specific departmental allocations. Specifically, the documentation should specify the nature of the
expenditure, the amount of the expenditure, the department to which the expenditure is being allocated, and
the reason for using a non-standard allocation procedure.
The college or school overheads which cannot be specifically allocated to departments should be
totaled for all departments in the college and then prorated among the college's or school's four-digit CIP
codes based on the ratio of instructional, organized research, or public service costs to total costs through the
first four categories.
IV-4
Figure IV-1
DIRECT COSTS FOR CIP CODE 2601
Lower
Division
Direct Salary Costs
Instruction
Upper
Graduate Graduate
Division
I
II
Total
Other Costs by Function
Organized
Public
Research
Service
Total
All Functions
$113,929
$127,268
$ 51,075
-
$ 292,272
-
-
$ 292,272
Indirect Salary Costs
4,611
5,024
1,975
-
11,611
-
-
11,610
4,058
2,805
2,594
-
9,457
-
-
9,457
$122,598
$135,097
$ 55,644
-
$ 313,339
-
-
$ 313,339
-
-
Subtotal
Percent Distribution
39.1%
43.1%
17.8%
-
100.0%
100.0%
Figure IV-2
DIRECT COSTS FOR CIP CODE 2604
Lower
Division
Direct Salary Costs
Instruction
Upper
Graduate
Division
I
Graduate
II
Organized
Public
Total
Research
Service
All Functions
Total
$105,033
$345,896
$195,688
$3,038
$ 649,655
48,600
88,095
51,638
2,671
191,004
-
-
191,004
39,316
111,579
64,813
1,545
217,253
-
-
217,253
$192,949
$545,570
$312,139
$7,254
$1,057,912
Subtotal
13.4%
37.8%
21.6%
0.5%
73.3%
$278,740
$278,740
19.3%
$105,712
$105,712
7.4%
$1,034,107
$1,442,364
100.0%
Figure IV-3
DIRECT COSTS AND DEPARTMENTAL OVERHEADS FOR CIP CODE 2601
Lower
Division
Direct Salary Costs
Instruction
Upper
Graduate
Division
I
Graduate
II
Organized
Public
Total
Research
Service All Functions
Total
$113,929
$127,268
$ 51,075
-
$ 292,272
-
-
$ 292,272
4,611
5,024
1,975
-
11,610
-
-
11,610
4,058
2,805
2,594
-
9,457
-
-
9,457
16,074
17,719
7,318
41,111
-
-
41,111
$138,672
$152,816
$ 62,962
$ 354,450
-
-
$ 354,450
-
-
Subtotal
39.1%
43.1%
-
17.8%
-
100.0%
100.0%
Figure IV-4
DIRECT COSTS AND DEPARTMENTAL OVERHEADS FOR CIP CODE 2604
Lower
Division
Direct Salary Costs
Instruction
Upper
Graduate Graduate
Division
I
II
Organized
Public
Total
Research
Service
All Functions
Total
$105,033
$345,896
$195,688
$3,038
$ 649,655
48,600
88,095
51,638
2,671
191,004
-
-
191,004
39,316
111,579
64,813
1,545
217,253
-
-
217,253
25,440
71,763
41,007
949
139,159
36,641
14,048
189,848
$218,389
$617,333
$353,146
$8,203
$1,197,071
$315,381
$119,760
$1,632,212
Subtotal
13.4%
37.8%
21.6%
0.5%
73.3%
$278,740
19.3%
$105,712
7.4%
$1,034,107
100.0%
IV - 7.3 Overhead Support Unique to a Function
The only organizational units reported as overhead unique to a function are those units which provide
purely administrative support and service to the direct service units which are categorized into one functional
area. Each primary function is discussed separately below.
IV - 7.31 Overhead Unique to Instruction
If possible, overhead support and service to the Instruction function should be allocated directly to a
department or school through a charge-back or similar allocation system and reported as departmental or
school overheads. Support costs which cannot be allocated and which meet the criteria of overhead unique to
a function should be accumulated and allocated to the disciplines and instructional levels as follows. First, the
accumulated overhead costs are allocated to the individual four-digit CIP codes based on each code's
proportion of the total student credit hours generated. For example, if code 1202 generated 1.7 percent of the
institution's credit hours, it would receive 1.7 percent of the accumulated overhead unique to the function of
Instruction. Secondly, within each four-digit CIP code total overhead costs are allocated to each instructional
level based on the level's share of student credit hours. For example, if within code 1202 lower division
accounted for 37.5 percent of the student credit hours, then 37.5 percent of the overhead unique to the
Instruction function allocated to code 1202 would be allocated to lower division.
IV - 7.32 Overhead Unique to Organized Research
Support costs which are unique to the Organized Research function and which cannot be allocated as
department, college or school overheads should be accumulated and prorated among the four-digit discipline
codes based on each code's proportion of the preceding Organized Research subtotal costs. For example, if
CIP code 0301 accounted for 21.0 percent of the institution's subtotaled direct costs plus departmental, college
and school overheads for Organized Research, then code 0301 would receive 21.0 percent of the accumulated
overhead unique to Organized Research.
IV - 7.33 Overhead Unique to Public Service
Support costs which are unique to the Public Service function and which cannot be allocated as
departmental, college or school overheads, should be accumulated and prorated among the four-digit
discipline codes based on each code's proportion of the preceding subtotal costs for Public Service. This is the
same procedure by which overhead unique to organized research is allocated, except that the Public Service
subtotal is used.
IV - 7.34 Organizational Units Service Two Functions
In some cases, organizational units may have separate components, each of which serves a separate
function. For example, a continuing education unit may serve Instruction (degree credit courses) and Public
Service (non-degree credit courses). A standard allocation procedure may not result in a fair allocation of the
costs of this unit to the two functions served. In this case, it will be necessary to split the costs of the unit
among the two functions using a special analysis and documentation submitted with the Cost Study.
IV - 7.4 Academic Support
Academic Support is allocated on the basis of the total costs which have preceded it. As was the case
with college or school overheads, academic support costs for the entire institution will be distributed among
the disciplines and primary functions based on the four-digit CIP code's share of the subtotal of the costs
already allocated (i.e., direct salary through overhead unique to a function). For example, if the subtotal costs
for graduate I engineering were $5,365,427 and the subtotal for the institution was $29,807,928, then graduate
I engineering would receive 18.0 percent of all academic overheads.
IV-7
IV - 7.5 Student Services
Since student services do not apply to Organized Research and Public Service, its costs are distributed
only over the four-digit CIP codes and the four instructional levels by proportion of student credit hours just as
was overhead unique to the Instruction function.
IV - 7.6 Independent Operations
The Legislative Audit Commission (LAC) University Guidelines of 1982 prohibit the state subsidy of
independent operations. Any costs reported in this category should be fully explained in terms of compliance
with the Guidelines.
IV - 7.7 Institutional Support
State funds for institutional support are allocated to all three primary functions. They should be
allocated to the four-digit CIP codes based on each code's proportion of the subtotaled costs which have
preceded institutional support. Within each code, institutional support costs are to be prorated among the four
Instruction levels, Organized Research, and Public Service based on proportion of costs. For example, if
direct salary through independent operations costs for code 0401 total $4,289,462 and for the entire institution
they totaled $37,641,299, then code 0401 would be allocated 11.4 percent of institutional support costs. If
lower division instruction accounted for 42 percent of the $4,289,462, then lower division would receive 4.79
percent of the accumulated institutional support costs (.114 x .42 = .0479).
IV - 7.8 Operation and Maintenance of Physical Plant
State support for the operations and maintenance of the physical plant is allocated to each primary
function and four-digit CIP discipline codes in the same manner as state support for institutional support is
allocated.
IV - 8.0 Summary of Allocations
Direct costs are allocated to six-digit CIP codes based upon the FAA. After all direct costs are
allocated, six-digit CIP codes are aggregated to the four-digit level. Support costs are allocated to the fourdigit level based either on distribution of student credit hours or proportion of preceding subtotal costs
depending on the cost category. Figure IV-5 summarizes the allocation basis for each cost category.
IV - 9.0 Calculating Unit Costs
Units costs are determined by dividing the accumulated costs within a given instructional level by the
total student credit hours generated by students classified in that enrollment level. The total instructional unit
costs are calculated by dividing the total costs across all instructional levels by the total number of credit hours
generated.
IV-8
Figure IV-5
BASIS OF ALLOCATION OF COSTS TO DISCIPLINES
Lower
Division
FAA
FAA
FAA
Σ
FAA/SCH
FAA
-
-
Σ
FAA/SCH
FAA
2.
Indirect Salary Cost
FAA/SCH
FAA/SCH
FAA/SCH
3.
FAA/SCH
FAA/SCH
FAA/SCH
4.
$
$
$
$
$
$
$
Σ
5.
College or School
Overhead
$
$
$
$
$
$
$
Σ
6.
Subtotal Department
and College Costs
Σ
Σ
Σ
Σ
Σ
Σ
Σ
Σ
7.
Overhead Support
Unique to Function
SCH
SCH
SCH
SCH
Σ
$
$
Σ
$
$
$
$
$
$
$
Σ
SCH
SCH
SCH
SCH
Σ
-
-
SCH
SCH
SCH
SCH
Σ
-
-
Σ
11. Institutional Support
$
$
$
$
$
$
$
Σ
12. Subtotal with University Overheads
-
-
-
-
-
-
-
-
13. O & M Physical Plant
$
$
$
$
$
$
$
Σ
14. Total All Costs
Σ
Σ
Σ
Σ
Σ
Σ
Σ
Σ
9.
Student Services
Σ
10. Independent Operations
Legend:
FAA - Faculty Activity Analysis
SCH - Percentage of Student Credit Hours
FAA
Total
Organized
Public
Total
Research
Service
All Functions
Direct Salary Costs
Academic Support
FAA
Graduate
II
1.
8.
FAA
Instruction
Upper
Graduate
Division
I
FAA
Σ
$ - Percentage of Accumulated Costs
Σ - Summation
IV-10
CHAPTER V
SUBMITTING DISCIPLINE AND PROGRAM COSTS
V - 1.0 Overview
This chapter provides directions concerning the content and format of information to be submitted to
the Illinois Board of Higher Education staff. The first part provides codes and formats for submitting
discipline costs. The next section discusses several reconciliation forms which are to be submitted with the
discipline costs. The last section discusses the concept of program/major costs and describes how these costs
are calculated.
V - 2.0 Submitting Discipline Costs
Every fall each university submits to the Illinois Board of Higher Education staff the preceding fiscal
year's costs for each four-digit CIP discipline code for each primary function by cost category. Student credit
hours also are submitted for each four-digit CIP discipline code by each instructional level. Form A, shown in
the Appendix, shows the information to be submitted in schematic form.
V - 2.1 Hard Copy
Form A or a facsimile should be submitted for each four-digit discipline code as well as one for the
institution total (CIP code 9999).
V - 2.2 Machine Readable Copy
In addition to the hard copy, a machine readable medium should be submitted containing the
information on each Form A. Data should be submitted on a 3.5-inch diskette. The logical record length
(LRECL) should be 80 and block size should be approximately 4,000.
V - 2.3 Record Format
The following codebook indicates in which fields information is to be punched. All fields should be
right-justified.
Columns
Code
Field
1-2
Institution Code
01
02
03
04
05
06
07
09
10
11
08
12
13
3-5
Line Codes 100, 201-214 (see Form A)
V-1
6-9
Four-digit CIP codes (see the Appendix)
10
b
Blank
11-18
#
Lower Division
19-26
#
Upper Division
27-34
#
Graduate I
35-42
#
Graduate II
43-51
#
Total Instruction
52-59
#
Organized Research
60-67
#
Public Service
68-76
#
Total All Functions
77-78
b
Blank
79-80
Last two digits of fiscal year (e.g., FY1995 = 95)
V - 3.0 Reconciliation Forms
In addition to the hard copy and the machine readable form of the Cost Study, several reconciliation
forms also must be submitted. The forms and more detailed instructions are presented in the Appendix.
Form C, Reconciliation of Cost Study Expenditures to Total Estimated State-Appropriated Operating
Expenditures - As discussed in Chapter IV, the expenditures in the Cost Study are based on actual
expenditures from the fiscal year appropriations including lapse period (i.e., July 1 to September 30). Funds
which have not been obligated by June 30 and expended by September 30 should not be reported in the Cost
Study but reported as unexpended funds. The form also provides for details of costs excluded from the Cost
Study.
Form D, Reconciliation of Estimated Expenditures Used for the Cost Study to Final Audited
Expenditures - When final expenditures for a fiscal year have been audited, Form D should be submitted
comparing the final audited figure with line 7 on Form C, and showing the difference. If the variance between
cost study expenditures and audited expenditures is greater than one percent it may be necessary to revise the
data submitted earlier.
V - 4.0 Majors
All students enrolled in a university must eventually decide in which approved program they will
pursue a degree. Usually, this decision is made in the sophomore or junior year. As was discussed in Chapter
III, a student major should be kept as part of the student record. Thus, when student records are merged with
course records to form the ICLM it is possible to identify the courses taken during the fiscal year by each
student major. All approved programs are assigned a six-digit CIP code. A special code of 000000 is
assigned to students who have not yet declared a major.
V-2
V - 5.0 Calculating Program/Major Costs
Program/major costs can be calculated from the submitted discipline costs and the ICLM. Discipline
unit costs are calculated for each four-digit discipline code. The ICLM specifies the credit hours generated in
each four-digit discipline code by each six-digit program/major code by instruction level. When the
appropriate discipline unit costs are multiplied by the credit hours in the ICLM, the resulting dollar amounts
represents the instructional costs for each instructional level for each program/major. Summing across
instructional levels yields total instructional costs for each program/major.
Once total instructional costs have been calculated for each program/major, unit costs may be
calculated by dividing instructional costs by total student credit hours generated by each program/major. An
example will help illustrate the procedure.
Figure V-1 displays direct instruction unit costs for six disciplines at a hypothetical university. The
figure shows that it costs $12.02 for every credit hour taken in Business and Commerce by lower division
students. One credit hour of graduate I level instruction in Psychology costs $62.82.
Figure V-1
DIRECT INSTRUCTION COST PER CREDIT HOUR
BY DISCIPLINE AND STUDENT LEVEL
Discipline
English
Lower Division
Upper Division
Graduate I
Graduate II
$25.00
$30.00
$40.00
$60.00
Psychology
8.57
17.07
62.82
80.40
Chemistry
15.85
27.41
62.00
76.35
Business and Commerce
12.02
18.08
32.45
60.33
Accounting
11.86
22.26
40.00
56.71
Business Economics
12.05
18.85
33.78
63.30
Knowing how many credit hours are taken in the various disciplines by students majoring in different
programs allows the researcher to calculate total instructional costs by program majors. That is, if the
researcher knows exactly how many credits in each discipline were generated by upper division Chemistry
majors, the total instructional costs for upper division Chemistry majors could be calculated by multiplying
those credits by the appropriate unit costs.
V-3
The ICLM discussed in Chapter III supplies the information on credit hours necessary to perform the
above calculations. Figure III-1 shows that upper division Chemistry majors generated the following credit
hours:
Discipline
Credit Hours
English
Psychology
Chemistry
Accounting
Business Economics
Total
13
23
135
6
3
3
183
When the above credit hours are multiplied by the appropriate unit costs and summed, the instructional
costs for upper division Chemistry majors is obtained. Figure V-2 displays the calculations.
Figure V-2
CALCULATING INSTRUCTIONAL COSTS FOR
UPPER DIVISION CHEMISTRY MAJORS
Discipline
English
Unit Cost
x
$30.00
Credits
13
=
Costs
$ 390.00
Psychology
17.07
23
392.61
Chemistry
27.41
135
3,700.35
18.08
6
108.48
Accounting
22.26
3
66.78
Business Economics
18.85
3
56.55
183
$4,714.77
Summation
Figure V-2 shows that it cost $4,714.77 to produce the 183 credit hours by upper division Chemistry
majors. When similar calculations are performed for all majors at all levels of instruction, a complete set of
program/major costs is obtained. Figure V-3 shows the results of such a calculation.
These dollar totals are transformed into unit costs by dividing by the total credits for each student level
in each major, shown in Figure III-1. For example, the direct instruction costs for the 372 credits taken by
lower division linguistics majors is $9,112.71. Thus, the unit cost for lower division linguistics majors is
$24.50 per credit hour.
V - 6.0 Submission Requirements
Since each institution submits its discipline costs and the annual ICLM, the Illinois Board of Higher
Education staff will perform the necessary computations to generate the Program/Major Cost Study.
V-4
V-5
V-6
CHAPTER VI
HYPOTHETICAL CASE STUDY
VI - 1.0 Introduction
Throughout the preceding chapters specific examples have been given to illustrate the procedures of the
FAA (Section II-4.0), the allocation of staff years (Section II-5.3), building an ICLM (Section III-6.0) and
allocating direct and support costs (Sections IV-6.21 and IV-7.1 through IV-7.7). The rest of this chapter will
demonstrate how a hypothetical university, Illinois University, would complete all the components of the Cost
Study.
VI - 2.0 Student Records
Table VI-1 presents a partial list of the student records kept by Illinois University. Each student is
assigned a unique identifier which allows names and other confidential information to be stored elsewhere.
By keeping information on terms and years, the student files can keep historical information as well. For the
purposes of the Cost Study, the most important information is the credits completed, the major code, term and
year, the course name or number and course credits. These data allow Illinois University to build ICLMs at a
number of different detail levels. For the Cost Study, the submitted ICLM should contain credit hours
generated in specific disciplines by specific majors by instructional level for an entire year. Table VI-2 shows
what such an ICLM would look like if it were based only on the three hypothetical students in Table VI-1.
Notice that all 27 credits are accounted for, even the three credits in statistics by the master's candidate in
special education. Even though this student withdrew from the course, it was after the census date and the
student had paid more than 50 percent of the tuition by the time the Cost Study was compiled. Obviously,
Illinois University enrolls more than three students. Table VI-3 shows portions of the full ICLM for Illinois
University. This ICLM will be used later to produce the program/major costs for Illinois University.
VI - 3.0 Allocating Costs
Space does not permit a detailed presentation of how the FAA for all faculty members at Illinois
University is used to allocate direct service costs. The researcher should refer to Sections IV-6.2 through IV6.4 for the specific example of using the FAA for such purposes. The remainder of this section will
demonstrate how support costs are allocated among disciplines.
VI - 3.1 Departmental Overhead
Tables VI-4 through VI-6 show the direct costs for the departments of business and management,
clinical psychology and zoology. In the last academic year the business and management department
generated $148,783 in departmental overhead, which would be apportioned to the instructional levels
according to the percentages shown in Table VI-4. Thus, lower division would receive $23,061 (.155 x
$148,783), upper division would receive $109,653 (.737 x $148,783), and graduate I would receive $16,069
(.108 x $148,783). Table VI-7 shows the direct costs plus departmental overhead for business and
management. The clinical psychology and zoology departments generated $38,382 and $169,370,
respectively, in departmental overheads. These costs would be allocated in the same way as those for business
and management. Tables VI-8 and VI-9 show the resulting subtotals for each department.
VI-1
Table VI-1
STUDENT RECORDS FOR ILLINOIS UNIVERSITY
Student 1
Unique Identifier
Student 2
Student n
546729251
729765413
999887777
B.A.
B.A.
M.A.
Credits Completed
24
101
12
Grade Points
75
247
36
Major
Term
Year 1995
000000
I
1995
140201
I
1995
131001
I
Course #1
Credits
Grade
English 101
3
A
Engineering 202
3
C
Spec. Ed. 545
3
B
Course #2
Credits
Grade
Spanish 101
3
B
Computer Sci. 205
3
B
Educ. Admin. 509
3
B
Course #3
Credits
Grade
Philosophy 101
3
A
English 101
3
C
Statistics 501
3
Withdrew
Degree Sought
VI-2
VI-3
VI-4
TABLE VI-4
DIRECT SERVICE COSTS FOR BUSINESS AND MANAGEMENT
Direct Instruction or Service
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$67,962
$347,457
6,360
6,360
-0-
$74,322
15.5%
Graduate
I
$51,717
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
-0-
-0-
$467,136
-0-
-0-
-0-
12,720
790
306
-0-
-0-
-0-
1,096
$354,607
$52,023
-0-
-0-
-0-
$480,952
-
-
-
73.7%
10.8%
100.0%
TABLE VI-5
DIRECT SERVICE COSTS FOR CLINICAL PSYCHOLOGY
Lower
Division
Subtotal
Percent of Total
Instruction
Upper
Division
$57,686
$86,304
3,701
3,701
-0-
$61,387
30.0%
Graduate
I
$46,315
-0-
Graduate
II
Organized
Research
Public
Service
-0-
$4,142
$2,256
-0-
-0-
-0-
7,402
824
533
291
-0-
-0-
-0-
$90,538
$46,606
-0-
$4,142
$2,256
44.2%
22.7%
Total
-
2.0%
1.1%
$196,703
$204,929
100.0%
TABLE VI-6
DIRECT SERVICE COSTS FOR ZOOLOGY
Lower
Division
Subtotal
Percent of Total
Instruction
Upper
Division
Graduate
I
Organized
Research
Public
Service
Total
-0-
$10,362
$4,506
$489,561
$184,561
$217,506
33,200
17,408
-0-
-0-
-0-
-0-
50,608
1,698
-0-
-0-
-0-
-0-
1,698
-0-
$10,362
$4,506
-0-
$217,761
40.2%
$236,612
43.7%
$72,626
Graduate
II
$72,626
13.4%
-
1.9%
0.8%
$541,867
100.0%
TABLE VI-7
DIRECT SERVICE COSTS AND DEPARTMENTAL OVERHEADS FOR
BUSINESS AND MANAGEMENT
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$67,962
$347,457
6,360
6,360
-0-
Graduate
I
$51,717
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
-0-
-0-
$467,136
-0-
-0-
-0-
12,720
790
306
-0-
-0-
-0-
1,096
23,061
109,653
16,069
-0-
-0-
-0-
148,783
$97,383
$464,260
$68,092
-0-
-0-
-0-
$629,735
-
-
-
15.5%
73.7%
10.8%
100.0%
TABLE VI-8
CLINICAL PSYCHOLOGY
Lower
Division
Subtotal
Percent of Total
Instruction
Upper
Division
$57,686
$ 86,304
3,701
3,701
-0-
Graduate
I
$46,315
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
$4,142
$2,256
$196,703
-0-
-0-
-0-
7,402
824
533
291
-0-
-0-
-0-
11,515
16,964
8,713
-0-
768
422
$72,902
$107,502
$55,319
-0-
$4,910
$2,678
30.0%
44.2%
22.7%
VI-8
-
2.0%
1.1%
38,382
$243,311
100.0%
TABLE VI-9
ZOOLOGY
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$184,561
$217,506
33,200
17,408
1,698
-0-
Graduate
I
Graduate
II
Organized
Research
Public
Service
Total
-0-
$10,362
$4,506
$489,561
-0-
-0-
-0-
-0-
50,608
-0-
-0-
-0-
-0-
1,698
$72,626
68,087
74,015
22,696
-0-
3,218
1,354
169,370
$285,848
$310,627
$95,322
-0-
$13,580
$5,860
$711,237
40.2%
43.7%
13.4%
-
1.9%
0.8%
100.0%
VI - 3.2 College or School Overheads
The business and management department is part of the School of Business at Illinois University while
the clinical psychology and zoology departments are part of the College of Letters and Science. The School of
Business reported an overhead of $41,161 last academic year, only $1,242 of which it could directly attribute
to the business and management department. This $1,242 would be spread across the three pertinent
instruction levels according to the percentages at the bottom of Table VI-7. The remaining $39,919 are
allocated to each instructional level based on its ratio of costs to total costs as has already been allocated. The
School of Business subtotal for direct instruction, direct service to organized research and public service,
indirect instruction, departmental research and departmental overheads is $1,096,274. Thus, business and
management would receive $24,173 in college or school overheads (($629,735 ÷ $1,096,274) x $39,919 +
$1,242). This amount would then be distributed among the three levels of instruction according to the percent
distribution shown at the bottom of Table VI-7. Table VI-10 summarizes the allocated costs through college
or school overheads and shows the proportionate distribution among instructional levels.
The College of Letters and Sciences at Illinois University had $238,253 in overheads after allocating
everything that could be directed to specific departments. Neither the clinical psychology department nor the
zoology department received any direct allocation. The college's subtotal of direct instruction, direct service
to organized research and public service, indirect instruction and departmental research was $2,888,694. Each
department's share of these overhead costs is calculated in the same manner as was business and management
and the results are shown in Tables VI-11 and VI-12.
VI - 3.3 Overhead Unique to a Function
Illinois University generated $603,376 in overhead unique to a function. Of this amount, $434,837
were in overheads unique to the instruction function, $122,881 were in overhead unique to organized research,
and $45,688 were in overhead unique to public service.
In Section IV-7.3 it was explained that overheads unique to instruction would be distributed to
individual disciplines based on student credit hours. Table VI-13 summarizes the credit hours generated in
business and management, clinical psychology and zoology as well as the total university's. Table VI-14
shows the percent of the total institution's credit hours by the same three disciplines and levels of instruction.
Each discipline would receive its portion of the overhead unique to the instruction function based on the
percentages shown in Table VI-14. For example, lower division business and management would receive
$30,917 (.0711 x $434,837) and upper division clinical psychology would receive $5,914 (.0136 x $434,837).
Section IV-7.3 also explained that overheads unique to organized research and public service are to be
allocated to individual disciplines based upon the discipline's proportion of preceding organized research and
public service costs. Illinois University expended $668,791 in organized research in the cost categories
preceding overhead unique to a function. The same expenditure for public service was $224,933. Since
business and management had no costs in either function, it would receive no allocation. Clinical psychology
expended $5,311 in organized research, or 0.8 percent of the institution total. Thus, 0.8 percent of the
$122,881 in overhead unique to organized research, or $983, would be allocated to clinical psychology.
Tables VI-15 through VI-17 show the department and college subtotals plus the overhead unique to a function
allocations for the three example disciplines.
VI-10
TABLE VI-10
DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND SCHOOL OVERHEADS FOR
BUSINESS AND MANAGEMENT
College or School Overhead
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$ 67,962
$347,457
6,360
6,360
-0-
Graduate
I
$51,717
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
-0-
-0-
$467,136
-0-
-0-
-0-
12,720
790
306
-0-
-0-
-0-
1,096
23,061
109,653
16,069
-0-
-0-
-0-
148,783
3,747
17,816
2,610
-0-
-0-
-0-
24,173
$101,130
$482,076
$70,702
-0-
-0-
-0-
$653,908
-
-
-
15.5%
73.7%
10.8%
100.0%
TABLE VI-11
DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND COLLEGE OVERHEADS FOR
CLINICAL PSYCHOLOGY
Lower
Division
Subtotal
Percent of Total
Instruction
Upper
Division
$57,686
$ 86,304
3,701
3,701
-0-
Graduate
I
$46,315
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
$4,142
$2,256
$196,703
-0-
-0-
-0-
7,402
824
533
291
-0-
-0-
-0-
11,515
16,964
8,713
-0-
768
422
38,382
6,020
8,870
4,555
-0-
401
221
20,067
$78,922
$116,372
$59,874
-0-
$5,311
$2,899
30.0%
44.2%
22.7%
-
2.0%
1.1%
$263,378
100.0%
TABLE VI-12
DIRECT SERVICE COSTS, DEPARTMENTAL OVERHEADS, AND COLLEGE OVERHEADS FOR
ZOOLOGY
Lower
Division
Instruction
Upper
Division
$184,561
$217,506
33,200
17,408
1,698
-0-
Graduate
I
$72,626
Graduate
II
Organized
Research
Public
Service
Total
-0-
$10,362
$4,506
$489,561
-0-
-0-
-0-
-0-
50,608
-0-
-0-
-0-
-0-
1,698
68,087
74,015
22,696
-0-
3,218
1,354
169,370
23,582
25,635
7,860
-0-
1,115
469
58,661
$309,430
$336,262
$103,182
-0-
$14,695
$6,329
Subtotal
Percent of Total
40.2%
43.7%
13.4%
-
1.9%
0.8%
$769,898
100.0%
TABLE VI-13
STUDENT CREDIT HOURS IN SELECTED DISCIPLINES
Lower
Division
Upper
Division
11,148
14,047
Clinical Psychology
2,465
Zoology
Business and Management
All Disciplines
Graduate
I
Graduate
II
Total
3,937
-0-
29,132
2,131
2,657
-0-
7,253
7,177
2,749
978
-0-
10,904
74,681
69,017
12,986
-0-
156,684
TABLE VI-14
PROPORTION OF STUDENT CREDIT HOURS BY
DISCIPLINE AND LEVEL OF INSTRUCTION
Lower
Division
Upper
Division
Graduate
I
Graduate
II
Total
7.11
8.97
2.51
0.0
18.59
Clinical Psychology
1.57
1.36
1.70
0.0
4.63
Zoology
4.58
1.75
0.62
0.0
6.95
47.66
44.05
8.29
0.0
100.00
All Disciplines
VI-14
TABLE VI-15
DEPARTMENTAL AND COLLEGE COSTS AND OVERHEAD UNIQUE TO A FUNCTION
FOR BUSINESS AND MANAGEMENT
Instruction
Upper
Division
Graduate
I
$101,130
$482,076
$70,702
-0-
30,917
39,005
10,914
$132,047
$521,081
$81,616
Lower
Division
Subtotal Departmental and College Costs
Subtotal
Percent of Total
18.0%
70.9%
11.1%
Graduate
II
Organized
Research
Public
Service
Total
-0-
-0-
$653,908
-0-
-0-
-0-
80,836
-0-
-0-
-0-
$734,744
-
-
-
100.0%
TABLE VI-16
FOR CLINICAL PSYCHOLOGY
Instruction
Upper
Division
Graduate
I
$78,922
$116,372
$59,874
6,827
5,914
$85,749
$122,286
Lower
Division
Subtotal
Percent of Total
30.1%
42.9%
Organized
Research
Public
Service
Total
-0-
$5,311
$2,899
$263,378
7,392
-0-
983
594
21,710
$67,266
-0-
$6,294
$3,493
$285,088
23.6%
Graduate
II
-
2.2%
1.2%
100.0%
TABLE VI-17
FOR ZOOLOGY
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
Graduate
I
$309,430
$336,262
$103,182
-0-
$14,695
$6,329
$769,898
19,916
7,610
2,696
-0-
2,703
1,279
34,204
$329,346
$343,872
$105,878
-0-
$17,398
$7,608
$804,102
41.0%
42.8%
13.2%
Graduate
II
-
Organized
Research
2.2%
Public
Service
0.9%
Total
100.0%
VI - 3.4 Academic Support
In Section IV-7.4 it was explained how academic support costs are distributed to the disciplines based on
the subtotal of costs which have preceded it. At Illinois University $5,520,518 are allocated in the
departmental and college categories plus the overhead unique to a function category. Another $640,890 are
classified as Academic Support. Tables VI-15 through VI-17 show that business and management, clinical
psychology and sociology have $734,745, $285,088 and $804,102, respectively, in the cost category through
and including overhead unique to a function. These amounts represent 13.3, 5.2, and 14.6 percent,
respectively, of Illinois' allocation up to this point. Consequently, a similar proportion of the academic support
costs would be allocated to each discipline. Business and management would receive $85,238. Clinical
psychology would receive $33,327. Zoology would receive $93,570. Each of these disciplines would then
allocate these amounts to the four levels of instruction, organized research, and public service in proportion to
the preceding subtotal costs. Tables VI-18 through VI-20 show the results of these operations.
VI - 3.5 Student Services
Since student services do no apply to organized research or public service, its costs are distributed only
over the four instructional levels by proportion of student credit hours just as was overhead unique to the
instruction function. Illinois University expended $557,777 in support of student services. These monies
would be allocated to the three disciplines based on the percentages shown on Table VI-14.
VI - 3.6 Independent Operations
Like student services, independent operations do not apply to organized research and public service.
Also like student services, the institution's expenditures for independent operations are distributed to the
disciplines based on student credit hours. Illinois University expended $105,276 for independent operations
last academic year. Tables VI-21 through VI-23 show the addition of student services and independent
operations costs to the three disciplines. The Legislative Audit Commission (LAC) University Guidelines of
1982 prohibit the state subsidy of independent operations. Any costs reported in this category should be fully
explained in terms of compliance with the Guidelines.
VI - 3.7 Institutional Support
As was described in Section IV-7.7, institutional support is allocated to the disciplines based on its share
of the subtotaled costs from the preceding cost categories. Tables VI-21 through VI-23 show the subtotals for
the three example disciplines by function. For the entire university, the subtotal of preceding costs is
$2,117,603 for lower division, $3,582,826 for upper division, $1,011,762 for graduate I, $0 for graduate II,
$76,689 for organized research, and $35,581 for public service for a total of $6,824,461. Illinois University
expended $892,998 for institutional support last academic year. Based on the above subtotals, then, $277,094
would be attributed to lower division ($2,117,603 ÷ $6,824,461 x $892,998). Upper division would receive
$468,822. Graduate I would receive $132,392, organized research would be allocated $10,034 and public
service would get $4,656.
After allocating these monies to the different functions and instructional levels, the subtotals are
distributed back to the disciplines based on their share of the function's total. For example, business and
management's subtotal for the preceding cost categories for lower division is $194,571. This represents 9.19
percent of the institution's lower division subtotal ($194,571 ÷ $2,117,603). Therefore, 9.19 percent of
institutional support for lower division would be allocated to business and management, or $25,463. Tables
VI-24 through VI-26 show the results of applying this procedure to all three example disciplines.
VI-17
TABLE VI-18
DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION
AND ACADEMIC SUPPORT FOR BUSINESS AND MANAGEMENT
Lower
Division
Instruction
Upper
Division
Graduate
I
Graduate
II
Organized
Research
Public
Service
Total
$101,130
$482,076
$70,702
-0-
-0-
-0-
$653,908
30,917
39,005
10,914
-0-
-0-
-0-
80,836
Academic Support
15,381
60,244
9,613
-0-
-0-
-0-
85,238
$147,428
$581,325
$91,229
-0-
-0-
-0-
$819,982
-
-
-
Subtotal
Percent of Total
18.0%
70.9%
11.1%
100.0%
TABLE VI-19
AND ACADEMIC SUPPORT FOR CLINICAL PSYCHOLOGY
Lower
Division
Academic Support
Subtotal
Percent of Total
Instruction
Upper
Division
Graduate
I
Graduate
II
Organized
Research
Public
Service
$78,922
$116,372
$59,874
-0-
$5,311
6,827
5,914
7,392
-0-
983
594
21,710
10,254
14,100
7,691
-0-
641
641
33,327
$96,003
$136,386
$74,957
-0-
$6,935
30.1%
42.9%
23.6%
-
2.2%
$2,899
Total
$4,134
1.2%
$263,378
$318,415
100.0%
TABLE VI-20
AND ACADEMIC SUPPORT FOR ZOOLOGY
Lower
Division
Instruction
Upper
Division
$309,430
$336,262
$103,182
19,916
7,610
Academic Support
38,261
$367,607
Subtotal
Percent of Total
41.0%
Organized
Research
Public
Service
Total
-0-
$14,695
$6,329
$769,898
2,696
-0-
2,703
1,279
34,204
39,927
12,818
-0-
1,923
641
93,570
$383,799
$118,696
-0-
$19,321
$8,249
$897,672
42.8%
Graduate
I
13.2%
Graduate
II
-
2.2%
0.8%
100.0%
TABLE VI-21
DEPARTMENTAL AND COLLEGE COSTS, OVERHEAD UNIQUE TO A FUNCTION,
ACADEMIC SUPPORT, STUDENT SERVICES, AND INDEPENDENT OPERATIONS
Lower
Division
Instruction
Upper
Division
$101,130
$482,076
$ 70,702
-0-
-0-
-0-
$653,908
30,917
39,005
10,914
-0-
-0-
-0-
80,836
Academic Support
15,381
60,244
9,613
-0-
-0-
-0-
85,238
Student Services
39,658
50,033
14,000
-0-
-0-
-0-
103,691
7,485
9,443
2,642
-0-
-0-
-0-
19,570
$194,571
$641,801
$107,871
-0-
-0-
-0-
$943,243
-
-
-
Subtotal
Percent of Total
20.6%
68.0%
Graduate
I
11.4%
Graduate
II
Organized
Research
Public
Service
Total
100.0%
TABLE VI-22
Lower
Division
Instruction
Upper
Division
Graduate
I
Graduate
II
Organized
Research
Public
Service
Total
$ 78,922
$116,372
$59,874
-0-
$5,311
$2,899
$263,378
6,827
5,914
7,392
-0-
983
594
21,710
10,254
14,100
7,691
-0-
641
641
33,327
Student Services
8,757
7,586
9,482
-0-
-0-
-0-
25,825
1,653
1,432
1,790
-0-
-0-
-0-
4,875
$106,413
$145,404
$86,229
-0-
Academic Support
Subtotal
Percent of Total
30.5%
41.6%
24.7%
-
$6,935
2.0%
$4,134
1.2%
$349,115
100.0%
TABLE VI-23
FOR ZOOLOGY
Lower
Division
Instruction
Upper
Division
Graduate
I
Graduate
II
$309,430
$336,262
$103,182
-0-
19,916
7,610
2,696
Academic Support
38,261
39,927
Student Services
25,546
Subtotal
Percent of Total
Public
Service
Total
$14,695
$6,329
$769,898
-0-
2,703
1,279
34,204
12,818
-0-
1,923
641
93,570
9,761
3,458
-0-
-0-
-0-
38,765
4,822
1,842
653
-0-
-0-
-0-
7,317
$397,975
$395,402
$122,807
-0-
42.2%
41.9%
13.0%
-
Organized
Research
$19,321
2.1%
$8,249
0.9%
$943,754
100.0%
TABLE VI-24
INSTITUTIONAL SUPPORT COSTS BY FUNCTION
Subtotal of Preceding Costs
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$194,571
$640,801
$107,871
-0-
-0-
-0-
$ 943,243
25,897
83,942
14,288
-0-
-0-
-0-
124,127
$220,468
$724,743
$122,159
-0-
-0-
-0-
$1,067,370
-
-
-
20.7%
Graduate
I
67.9%
11.4%
Graduate
II
Organized
Research
Public
Service
Total
100.0%
TABLE VI-25
INSTITUTIONAL SUPPORT COSTS BY FUNCTION
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$106,413
$145,404
$86,229
14,288
18,753
$120,701
$164,157
30.5%
41.5%
Graduate
I
Organized
Research
Public
Service
-0-
$6,935
$4,134
$349,115
11,609
-0-
893
893
46,436
$97,838
-0-
$7,828
$5,027
$395,551
24.7%
Graduate
II
-
2.0%
1.3%
Total
100.0%
TABLE VI-26
INSTITUTIONAL SUPPORT FOR COSTS BY FUNCTION
FOR ZOOLOGY
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$397,975
$395,402
$122,807
51,794
51,794
$449,769
$447,196
42.2%
41.9%
Graduate
I
Organized
Research
Public
Service
-0-
$19,321
$8,249
$ 943,754
16,074
-0-
2,679
893
123,234
$138,881
-0-
$22,000
$9,142
$1,066,988
13.0%
Graduate
II
-
2.1%
0.9%
Total
100.0%
TABLE VI-27
OPERATION AND MAINTENANCE OF PHYSICAL PLANT COSTS
ALLOCATED TO BUSINESS AND MANAGEMENT
Operation and Maintenance of
Physical Plant
Subtotal
Percent of Total
Lower
Division
Instruction
Upper
Division
$220,468
$724,743
$122,159
-0-
-0-
-0-
$1,067,370
44,054
142,797
24,306
-0-
-0-
-0-
211,157
$264,522
$867,540
$146,465
-0-
-0-
-0-
$1,278,527
-
-
-
20.7%
Graduate
I
67.9%
11.5%
Graduate
II
Organized
Research
Public
Service
Total
100.0%
TABLE VI-28
ALLOCATED TO CLINICAL PSYCHOLOGY
Lower
Division
Physical Plant
Subtotal
Percent of Total
Instruction
Upper
Division
Graduate
I
Graduate
II
Organized
Research
Public
Service
Total
$120,701
$164,157
$ 97,838
-0-
$7,828
$5,027
$395,551
24,306
31,901
19,748
-0-
1,519
1,519
78,993
$145,007
$196,058
$117,586
-0-
$9,347
$6,546
$474,544
30.6%
41.3%
24.8%
-
2.0%
1.4%
100.0%
TABLE VI-29
FOR ZOOLOGY
Lower
Division
Physical Plant
Subtotal
Percent of Total
Instruction
Upper
Division
Graduate
I
Graduate
II
Organized
Research
Public
Service
Total
$449,769
$447,196
$138,881
-0-
$22,000
$ 9,142
$1,066,988
88,108
88,108
27,344
-0-
4,557
1,519
209,636
$537,877
$535,304
$166,225
-0-
$26,557
$10,661
$1,276,624
42.1%
41.9%
13.0%
-
2.1%
0.8%
100.0%
TABLE VI-30
SUMMARY OF COSTS FOR BUSINESS AND MANAGEMENT
Lower
Division
Instruction
Upper
Division
$ 67,962
$347,457
6,360
6,360
$ 51,717
-0-
Graduate
II
Organized
Research
Public
Service
Total
-0-
-0-
-0-
$ 467,136
-0-
-0-
-0-
12,720
790
306
-0-
-0-
-0-
1,096
23,061
109,653
16,069
-0-
-0-
-0-
148,783
3,747
17,816
2,610
-0-
-0-
-0-
24,173
30,917
39,005
10,914
-0-
-0-
-0-
80,836
Academic Support
15,381
60,244
9,613
-0-
-0-
-0-
85,238
Student Services
39,658
50,033
14,000
-0-
-0-
-0-
103,691
7,485
9,443
2,642
-0-
-0-
-0-
19,570
25,897
83,942
14,288
-0-
-0-
-0-
124,127
Physical Plant
44,054
142,797
24,306
-0-
-0-
-0-
211,157
$264,522
$867,540
$146,465
-0-
-0-
-0-
$1,278,527
Total
-0-
Graduate
I
TABLE VI-31
SUMMARY OF COSTS FOR CLINICAL PSYCHOLOGY
Lower
Division
Instruction
Upper
Division
$ 57,686
$ 86,304
3,701
3,701
Graduate
II
$ 46,315
-0-
-0-
Organized
Research
Public
Service
$4,142
$2,256
Total
$196,703
-0-
-0-
-0-
7,402
-0-
-0-
824
533
291
-0-
11,515
16,964
8,713
-0-
768
422
38,382
6,020
8,870
4,555
-0-
401
221
20,067
6,827
5,914
7,392
-0-
983
594
21,710
10,254
14,100
7,691
-0-
641
691
33,327
Student Services
8,757
7,586
9,482
-0-
-0-
-0-
25,825
1,653
1,432
1,790
-0-
-0-
-0-
4,875
14,288
18,753
11,609
-0-
893
893
46,436
Physical Plant
24,306
31,901
19,748
-0-
1,519
1,519
78,993
$145,007
$196,058
$117,586
-0-
$9,347
$6,546
$474,544
Academic Support
Total
-0-
Graduate
I
TABLE VI-32
SUMMARY OF COSTS FOR ZOOLOGY
Lower
Division
Instruction
Upper
Division
$184,561
$217,506
33,200
17,408
-0-
-0-
-0-
-0-
50,608
1,698
-0-
-0-
-0-
-0-
1,698
-0-
Graduate
I
$ 72,626
Graduate
II
Organized
Research
Public
Service
Total
-0-
$10,362
$ 4,506
$ 489,561
68,087
74,015
22,696
-0-
3,218
1,354
169,370
23,582
25,635
7,860
-0-
1,115
469
58,661
19,916
7,610
2,696
-0-
2,703
1,279
34,204
Academic Support
38,261
39,927
12,818
-0-
1,923
641
93,570
Student Services
25,546
9,761
3,458
-0-
-0-
-0-
38,765
4,822
1,842
653
-0-
-0-
-0-
7,317
51,794
51,794
16,074
-0-
2,679
893
123,234
Physical Plant
88,108
88,108
27,344
-0-
4,557
1,519
209,636
$537,877
$535,304
$166,225
-0-
$26,557
$10,661
$1,276,624
Total
TABLE VI-33
INSTRUCTIONAL UNIT COSTS
Lower
Division
Upper
Division
Graduate
I
Graduate
II
11,148
$ 6.10$ 24.74
$ 9.07$ 34.32
$23.73$ 61.76
14,047
$ 13.14-0$ 17.96-0$ 37.20-0-
3,937
$ 16.04
$ 22.45
$ 43.89
-0-
29,132
2,465
$23.40$ 40.50
$32.02$ 54.61
$58.83$ 92.00
2,131
$ 17.43-0$ 22.53-0$ 44.26-0-
2,657
$ 27.12
$ 36.31
$ 65.43
-0-
7,253
2,749
978
-0-
$25.72$ 79.12 $ 74.26-0$43.11$122.32 $105.50-0$74.94$194.73 $169.96-0-
$ 44.90
$ 70.61
$117.08
Total
Student Credit Hours
Direct Instruction Costs Per Credit Hour
Departmental and College Costs Per Credit Hour
Total Costs Per Credit Hour
Clinical Psychology
Zoology
10,904
7,177
TABLE VI-34
UNIT COSTS FOR ALL OTHER DISCIPLINES
Lower
Division
Upper
Division
Graduate
I
Graduate
II
53,891
50,090
5,414
-0-
109,395
$35.78
$65.14
$170.19
-0-
$55.88
Total
TABLE VI-35
EXAMPLE PROCEDURE FOR CALCULATING PROGRAM/MAJOR COSTS FROM
DISCIPLINE COSTS AND THE INDUCED COURSE LOAD MATRIX FOR
LOWER DIVISION GENERAL BIOLOGY MAJORS
Discipline
Credits
Rate
Costs
3
x
$23.73
=
Accounting
0
x
35.78
=
-0-
51
x
35.78
=
1,824.78
American Literature
120
x
35.78
=
4,293.60
Zoology
695
x
74.94
=
52,083.30
Cell Biology
581
x
35.78
=
20,788.18
Mathematics
287
x
35.78
=
10,268.86
63
x
35.78
=
2,254.14
9
x
35.78
=
322.02
Clinical Psychology
21
x
58.83
=
1,235.43
All Other Disciplines
400
x
35.78
=
14,312.00
Computer Science
Statistics
Philosophy
Total
2,230
$
71.19
$107,453.50
VI-32
VI - 3.8 Operation of Maintenance of Physical Plant
Operation and Maintenance of Physical Plant is allocated in the same way as institutional support (i.e.,
based on the proportion of costs before Operation and Maintenance are included). Through the preceding cost
categories, Illinois University expended $2,394,697 for lower division instruction, $4,051,648 for upper
division instruction, $1,444,154 for graduate I instruction, $0 for graduate II instruction, $86,723 for
organized research, and $40,237 for public service for a total of $7,717,459. It also expended $1,519,112 for
Operation and Maintenance of Physical Plant. Therefore, lower division instruction would be allocated
$471,374 of Operation and Maintenance ($2,394,697 ÷ $7,717,459 x $1,519,112). Upper division instruction
would receive $797,530, graduate I instruction would be $225,216, no dollars would be allocated to
graduate II, organized research would receive $170,071, and public service would receive $7,921. These
amounts, in turn, would be distributed to the disciplines based on their share of the functions costs. For
example, business and management's lower division subtotal costs to this point are 9.21 percent of all lower
division instructional costs ($220,468 ÷ $2,394,697), so it would receive a similar share of lower division
operation and maintenance costs, or $44,054. Tables VI-27 through VI-29 show the results of applying these
procedures to all three example disciplines.
VI - 3.9 Summary of Allocations
Tables VI-30 through VI-32 summarize the direct and support costs for the three example disciplines.
VI - 4.0 Instructional Unit Costs
To calculate instructional unit costs divide the costs in Tables VI-30 through VI-32 by the credit hours
shown in Table VI-13. For example, total lower division costs for clinical psychology are $145,007. This
discipline also generated 2,465 lower division credit hours, so the resulting lower division unit costs are
$58.83 per credit hour. Table VI-33 displays the instructional unit costs for the three example disciplines at
three different levels of aggregation: direct instruction, the subtotal of department and college costs, and total
costs.
VI - 5.0 Program Costs
Once unit costs are calculated for all disciplines, program costs can be calculated by multiplying the unit
costs by the appropriate cells of the ICLM. Program costs represent the costs associated with the unique mix
of courses taken by different majors. Before this procedure can be demonstrated for Illinois University, unit
costs for each other discipline would have to be calculated. For demonstration purposes only, all other
disciplines have been combined into a single group and the total unit costs shown in Table VI-34.
Any credit hours taken in disciplines other than the three example disciplines, then, will have this
combined rate applied to them in this example.
To calculate the total costs associated with lower division general biology majors, the entries in the first
column in the ICLM (Figure VI-2) would be multiplied by the appropriate credit hour rate and then summed
as is shown on Table VI-35.
Since lower division general biology majors generated 2,230 credit hours, their unit costs are $48.19 per
credit hour. That is, on the average it costs Illinois University $48.19 to provide a credit hour's worth of
instruction to lower division general biology majors. Similar calculations could be performed for the other
levels of general biology as well as the other majors.
VI-33
VI-34
APPENDIX
-1-
-2-
SUBMISSION SCHEDULE
Submission Date
October 15
November 15
December 15
Items to be Submitted
Discipline Cost:
1.
Machine Readable
2.
Hard Copy (Form A)
3.
Credit Hour Reconciliation (Form C)
4.
Appropriated Funds Expenditures for Organized Research and Public
Service Activities (Form GH)
Faculty Credit Hour:
1.
Machine Readable
2.
Hard Copy
3.
Nonappropriated Funds Expenditures for Instruction, Organized
Research, and Public Service (Form J)
Induced Course Load Matrix:
Reconciliation of Estimated Expenditures to Audited Expenditures (Form D)
NOTE: When any submission date falls on a weekend, the data is due on the following Monday.
-3-
-4-
SUGGESTIONS FOR ASSIGNING NEW CIP CODES
The use of the new Classification of Instructional Programs coding system in the annual Cost Study has
raised some questions about procedures and comparability of coding among institutions. Because the Cost
Study is designed to serve both the institutions' and the state's planning and budgeting purposes, it must strike
a balance between the institutions' needs to reflect its unique organizational structure and the state's need for
comparable disciplinary grouping. In assigning new CIP codes from the classification, this dual purpose
should be kept in mind.
The Classification of Instructional Programs published by the National Center for Educational Statistics
is a disciplinary taxonomy organized about traditional departmental lines at the four-digit level. To
accommodate the variety of organizational structures which may not parallel the classification's definition of a
discipline, it may be necessary to review the courses offered by each academic/budgetary unit and assign the
appropriate six-digit CIP code to each course. Expenditures and credit hours can then be aggregated to the
four-digit level via the FAA. The following guidelines should be used in assigning codes to courses.
1.
Is there a direct correspondence between a department (academic/budgetary unit) and a single
four-digit CIP code? If so, all courses in the unit should be coded with the single CIP number.
Classifying one or two courses in a different code because of minor description variations would
limit the usefulness for institutional purposes. For example, many social science departments
offer their own statistics or quantitative methods courses. These courses should be classified in
the appropriate social science code rather than as statistics. It is understood that the social
science disciplines include quantitative course matter.
2.
Does the department (academic/budgetary unit) offer a degree program in more than one sixdigit code? If so, the courses for each program should be classified accordingly. For example, a
department of Government might offer degrees in both political science and public
administration. In this case, courses dealing with political science should be coded under
political science (45.1001) and courses dealing with public administration should be coded under
public administration (44.0401). It is expected that approved degree programs showing credit
hours also will show discipline credit hours.
3.
Does the instructor of a multidisciplinary course have an appointment in a disciplinary
department or unit? If a course is truly multidisciplinary and does not fit any one category it
should be assigned the code of the instructor's "home" unit.
4.
What is of greatest utility to your planning and budgeting function? If one of the above
guidelines does not suggest an appropriate code and a course may legitimately be classified into
more than one code, classify it in the code that makes the most sense for your planning efforts.
A review of a course's title and, perhaps, its brief catalog description should be sufficient to classify a
course.
-5-
INSTRUCTIONS FOR COMPLETING FORM A
DISCIPLINE COST STUDY
Form A is the hard copy version of the credit hours and costs submitted in machine readable form.
Form A or a facsimile should be produced from the deck or tape submitted to the Illinois Board of Higher
Education, checked for accuracy, and submitted with the machine readable device. NOTE: It is not necessary
to submit a Form A for a four-digit code that produced no credit hours and, therefore, no costs. Similarly, no
card or tape records should be submitted for a four-digit code with no credit hours and, therefore, no costs.
-6-
-7-
INSTRUCTIONS FOR COMPLETING FORM C
RECONCILIATION OF COST STUDY EXPENDITURES TO TOTAL
ESTIMATED STATE-APPROPRIATED OPERATING EXPENDITURES
Form C reconciles the Cost Study expenditures to the total state operating appropriation. Line 1 is the
state operating appropriation for the fiscal year of the Cost Study.
Line 2 provides space for the actual expenditures which occurred between July 1 and June 30 of the
fiscal year.
Line 3 is the expenditures made during the lapse period (June 30 to September 30) immediately
following the fiscal year. All expenditures during the lapse period must have been obligated by June 30.
The sum of lines 2 and 3 is the total estimated expenditures from state-appropriated funds. This should
be reported on line 4.
Line 6 provides space for itemizing the costs excluded from the Cost Study. When line 6 is subtracted
from line 4 the difference is the expenditures included in the cost study. This amount is reported on line 7.
-8-
FORM C
ESTIMATED STATE-APPROPRIATED OPERATING EXPENDITURES
Institution
Fiscal Year
1.
State Operating Appropriations for Fiscal Year
2.
Actual Expenditures for Fiscal Year: July 1 to June 30
3.
Estimated Lapse Period Expenditures for Fiscal Year
Based on Obligations as of June 30
4.
Total Estimated Expenditures from State-Appropriated
Funds (line 2 plus line 3)
5.
Estimated Lapsed Appropriations for Fiscal Year
(line 1 less line 4)
6.
Expenditures Excluded from Unit Cost Stud
Retirement Contributions
Refunds
Student Aid
Other:
7.
Expenditures Included in Unit Cost Study
-9-
INSTRUCTIONS FOR COMPLETING FORM D
RECONCILIATION OF ESTIMATED EXPENDITURES USED FOR THE
COST STUDY TO FINAL AUDITED EXPENDITURES
Form D reconciles Cost Study expenditures with final audited expenditures. Line 1 is the expenditures
used in the Cost Study (the amount shown on line 7 on Form C). Line 2 is the final audited expenditures for
the fiscal year of the Cost Study. The difference between line 2 and line 1 is reported on line 3 as the variance.
Line 4 is the percent difference this variance represents over the final audited expenditures.
-10-
FORM D
RECONCILIATION OF ESTIMATED EXPENDITURES USED FOR THE
Institution __________________________
Fiscal Year______________
1.
Estimated Expenditures from State-Appropriated Operating
Funds Used for Cost Study (Form C, line 7)
______________
2.
Final Audited Expenditures for Fiscal Year
______________
3.
Variance (line 2 less line 1)
______________
4.
Percent Difference (line 3 divided by line 2)
______________
-11-
-12-
INSTRUCTIONS FOR COMPLETING FORM GH
APPROPRIATED FUNDS EXPENDITURES FOR ORGANIZED RESEARCH AND
PUBLIC SERVICE ACTIVITIES
Part A
Part A collects expenditure information for all separately organized research and public service centers
and institutes. The list of these separately organized units is generated annually from the Board of Higher
Education's Program Inventory. Only those entities included on the Board's Inventory are to be included on
this list. Total expenditures from appropriated funds for organized research and public service activities are to
be provided for each approved center or institute. A separate line is provided for a total for Part A.
Part B
Part B collects organized research and public service expenditure information for all academic
departments. Departmental organized research expenditures are subdivided among three funding categories:
expenditures for cost sharing with external grants and contracts; competitive, centrally administered organized
research grants; and departmental overheads associated with organized research. Departmental public service
expenditures are subdivided among two funding categories: direct public service and departmental overheads
associated with public service. NOTE, departmental direct service research activities carried out with
appropriated funds not funded through one of the above categories should be classified as departmental
research. Centrally administered grant or support programs such as a Provost's Research Program or the Vice
President for Research's incentive grant program typically are relatively small compared to the institution's
total research and public service expenditures and are meant to be competitive. Expenditures in this Part are
no longer required to be reported separately by discipline.
Part C
Part C collects organized research and public service expenditure information for all schools and
colleges administrative offices. Like Part B, Part C requests organized research expenditures subdivided
among three funding categories: expenditures for cost sharing with external grants and contracts; competitive,
centrally administered organized research grants; and departmental overheads associated with organized
research. Schools and colleges expenditures for public service are subdivided among two funding categories:
direct public service and departmental overheads associated with public service. Expenditures in this Part are
not required to be reported separately by discipline.
Part D
Parts A, B, and C should capture the majority of organized research and public service activities. Part
D provides an opportunity to report organized research and public service expenditures by separately
organized units that are not approved centers or institutes, academic departments, or schools or colleges.
Institutions should provide a separate list of the individual units reported in Part D. Expenditures in this Part
are not required to be reported separately by discipline.
Part E
Part E requests total expenditures from state appropriated funds that support functions unique to
organized research and public service. Examples of such expenditures might include an institution's Office of
Contracts and Grants or administrative operations of Cooperative Extension Centers. Total expenditures from
state appropriated funds for Part E should equal the total expenditures reported on Line 207 of the Discipline
Cost study for all disciplines. Expenditures in this Part are not required to be reported separately by discipline.
-13-
APPROPRIATED FUNDS EXPENDITURES FOR ORGANIZED RESEARCH AND
(continued)
Part F
Part F requests expenditures for all other institutional support allocated to organized research and public
service programs. These expenditures should equal the expenditures reported in the Discipline Cost Study for
organized research and public service on Lines 208, 209, 210, 211, and 213.
Part G
The summation of Parts A through F. These expenditures should equal the amount submitted for
organized research and public service on line 214 of the Discipline Cost Study.
-14-
-15-
INSTRUCTIONS FOR COMPLETING FORM J
NONAPPROPRIATED FUNDS EXPENDITURES FOR
INSTRUCTION, ORGANIZED RESEARCH, AND PUBLIC SERVICE
Form J requests expenditure data from nonappropriated funds for instruction, organized research and
public service activities by approved centers and institutes, academic departments, schools and colleges, and
other separately organized units. Specifically, expenditures included on Form J should include those from
restricted purpose funds reported on Table 0142 of the Public Universities Resource Allocation and
Management Program (RAMP) and selected unrestricted funds reported on Table 0140 of RAMP (see below
for specific lines to be included from Table 0140). All expenditures should be reported in thousands of dollars
with one decimal place shown (e.g., $427,659=$427.7).
Part A of Form J requests expenditures from nonappropriated funds for direct organized research and
public service performed by approved centers or institutes. The Board of Higher Education maintains an
inventory of all such approved units and Form J is preprinted using this inventory. Any requests for additions,
deletions, or modifications to this list should be made in writing to the Board of Higher Education, Academic
Affairs section.
The expenditures reported in Part A may be from restricted purpose grants and/or contracts (line 040,
columns 1, 2, and 3, of RAMP Table 0142), restricted private gifts, grants, and contracts (line 050, columns 1,
2, and 3, of Table RAMP 0142), restricted endowment income earmarked for the center or institute (line 060,
columns 1, 2, and 3, of RAMP Table 0142), other restricted income
(line 070, columns 1, 2, and 3, of RAMP Table 0142), or unrestricted sales and services of education
departments (line 100, columns 1, 2, and 3, of RAMP Table 0140) as long as these funds are generated by the
center or institute and held locally for expenditure by that unit. Private gifts that are donated for the purpose
of exchange or promotion in fundraising efforts (e.g., goods or services donated to local radio or TV station
for promotion in fundraising efforts) should not be included in Part A.
Part B of Form J requests expenditures from nonappropriated funds for instruction, organized research,
and public service performed by faculty members as part of their assignments in academic departments as
opposed to separately organized centers or institutes. Expenditures from the same categories of funds (see
instructions for Part A above) should be included in Part B. Currently, it is not necessary to report
expenditures by individual disciplines or departments; only a subtotal for Part B is required.
Part C requests the same information as Parts A and B for Schools and Colleges. Currently, it is not
necessary to report expenditures by individual disciplines or schools or colleges, only a subtotal for Part C is
required.
Part D requests the same information as Parts A, B, and C for other separately organized units not
reported in Parts, A, B, or C. A list of such units should be attached to Form J.
Part E is the total of expenditures from nonappropriated funds for instruction, organized research, and
public service. The amounts shown on Part E should equal the totals reported in columns 1, 2 and 3 of line 90
on RAMP Table 0142 and columns 1, 2, and 3, of line 100 of RAMP Table 0140, excluding College Work
Study Grants.
The following should not be reported on Form J: College Work Study Grants, any form of student
financial aid grant, unrestricted grants, gifts, or appropriations (except where noted in Part A, above), and
unrestricted endowment income.
-16-
-17-
SUBMISSION SCHEDULE
Submission Date
October 15
November 15
December 15
Items to be Submitted
Discipline Cost
1.
Machine Readable
2.
Hard Copy (Form A)
3.
Credit Hour Reconciliation (Form C)
4.
Appropriated Funds Expenditures for Organized Research and Public
Service Activities (Form GH)
Faculty Credit Hour
1.
Machine Readable
2.
Hard Copy
Induced Course Load Matrix
1.
2.
Reconciliation of Estimated Expenditures to Auidted Expenditures
(Form D)
Nonappropriated Funds Expenditures for Instruction, Organized
Research, and Public Service (Form J)
NOTE: When any submission date falls on a weekend, the data is due on the following Monday.
(Rev. 10/97)
INSTRUCTIONS FOR COMPLETING FORM C
ESTIMATED STATE—APPROPRIATED AND UNIVERSITY INCOME FUND
OPERATING EXPENDITURES
Form C reconciles the Cost Study expenditures to the total state operating appropriation
and University Income Fund expenditures. Line 1 is the state operating appropriation and
University Income Fund expenditures for the fiscal year of the Cost Study.
Line 2 provides space for the actual expenditures, which occurred between July 1 and
June 30 of the fiscal year.
Line 3 is the expenditures made during the lapse period (July 1 through August 31)
i ediately following the fiscal year. All expenditures during the lapse period must have been
obligated by June 30.
The sum of lines 2 and 3 is the total estimated expenditures from state..appropriated
funds and University Income Funds. This should be reported on line 4.
Line 6 provides space for itemizing the costs excluded from the Cost Study.
Line 7 should include expenditures not included in the campuses expenditures that
should be included in the Cost Study expenditures (e.g., central administration).
Line 8 should be the total expenditures included in the Cost Study (line 4, less line 6,
plus line 7).
(Rev. 10/97)
ESTIMATED STATE-APPROPRIATED AND UNIVERSITY INCOME FUND
OPERATING EXPENDITURES
Institution________________________
Fiscal Year_____________
1. State Operating Appropriations and University Income
Fund for Fiscal Year
_______________
2. Actual Expenditures for Fiscal Year: July 1 to June
30
_______________
3. Estimated Lapse Period Expenditures for Fiscal Year
Based on Obligations as of June 30
_______________
4. Total Estimated Expenditures from StateAppropriated Funds and University Income Funds
(line 2 plus line 3)
_______________
5. Estimated Lapsed Appropriations for Fiscal Year
_______________
6. Expenditures Excluded from Unit Cost Study
_______________
Retirement Con ibutions
___________________
Refunds
___________________
Student Aid
___________________
Other:
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
7. Other Expenditures Included in Unit Cost Study (line
4, less line 6, plus line 7)
________________
8. Expenditures Included in Unit Cost Study
Fiscal Year
________________
(Rev. 10/97)
INSTRUCTION FOR COMPLETING FORM D
RECONCILIATION OF ESTIMATED STATE-APPROPRIATED AND
UNIVERSITY INCOME FUND EXPENDITURES USED FOR THE
Form D reconciles the Cost Study expenditures with final audited expenditures. Line 1 is
the expenditures used in the Cost Study (the amount shown Form C, line 8). Line 2 is the final
audited expenditures from state-appropriated funds and University Income Funds for the fiscal
year of the Cost Study. The difference between line2 and line 1 is reported on line 3 as the
variance. Line 4 is the percent difference this variance represents over the final auidted
expenditures.
(Rev. 10/97)
RECONCILIATION OF ESTIMATED STATE-APPROPRIATED AND UNIVERSITY
INCOME FUND EXPENDITURES USED FOR
THE COST STUDY TO FINAL AUDITED EXPENDITURES
Institution _________________________________
1.
Fiscal Year ________________
Estimated Expenditures from State-Appropriated
Operating Funds and University Income Funds Used
For Cost Study (Form C, Line8)
________________
Final Audited Expenditures from State-Appropriated
Funds and University Income Funds for Fiscal Year
________________
3.
Variance (line 2 less line 1)
________________
4.
Percent Difference (line 3 divided by line 2)
________________
2.
(Rev. 10/97)
STATE-APPROPRIATED AND UNIVERSITY INCOME FUND
EXPENDITURES FOR ORGANIZED RESEARCH AND
Part A. Part A collects expenditure information for all separately organized research and public
service centers and institutes. The list of these separately organized units is generated annually from the
Board of Higher Education’s Program Inventory. Only those entities included on the Board’s Inventory are
to be included on this list. Total expenditures from appropriated funds for organized research and public
service activities are to be provided for each approved center or institute. A separate line is provided for a
total for Part A.
Part B. Part B collects organized research and public service expenditure information for all
academic departments. Departmental organized research expenditures are subdivided among three funding
categories: expenditures for cost sharing with external grants and con acts; com-petitive, centrally
administered organized research grants; and departmental overheads associated with organized research.
Departmental public service expenditures are subdivided among two funding categories: direct public
service and departmental overheads associated with public service. NOTE: departmental direct service
research activities carried out with appropriated funds not funded through one of the above categories
should be classified as departmental research. Cen ally administered grant or support programs such as a
Provost’s Research Program or the Vice President for Research’s incentive grant program typically are
relatively small compared to the institution’s total research and public service expenditures and are meant
to be com etitive. Expenditures in this Part are no longer required to be reported
separately by
discipline.
Part C. Part C collects organized research and public service expenditure information for all
schools and college administrative offices. Like Part B, Part C requests organized research expenditures
subdivided among three funding categories: expenditures for cost sharing with external grants and
contracts; competitive, centrally administered organized research grants; and departmental overheads
associated with organized research. Schools and colleges expenditures for public service are subdivided
among two funding categories: direct public service and depart-mental overheads associated with public
service. Expenditures in this Part are no required to be reported separately by discipline.
Part D. Parts A, B, and C should capture the majority of organized research and public service
activities. Part D provides an oppo ni to report organized research and public service expenditures by
separately organized units that are not approved centers or institutes, academic departments, or schools or
colleges. Institutions should provide a separate list of the individual units reported in Part D. Expenditures
in this Part are not required to be reported separately by discipline.
Part E. Part E requests total expenditures from state appropriated funds that support functions
unique to organized research and public service. Examples of such expenditures might include an
institution’s Office of Contracts and Grants or administrative operations of Cooperative Extension Centets.
Total expenditures from state appropriated funds for Part E should equal the total expenditures reported on
Line 207 of the Discipline Cost Study for all disciplines. Expenditures in this Part are not required to be
reported separately by discipline.
Part F. Part F requests expenditures for all other institutional support allocated to organized
research and public service programs. These expenditures should equal the
expenditures reported in
the Discipline Cost Study for organized research and public service on Lines 208, 209, 210, 211, and 213.
Part G. The summation of Parts A through F. These expenditures should equal the amount
submitted for organized research and public service on line 214 of the Discipline Cost Study.
(Rev. 10/97)
(Rev. 10/97)

STATE OF ILLINOIS BOARD OF HIGHER EDUCATION

Transcription

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