Problems with Using IPEDS Finance Data for Comparisons AAUDE Case Study, Columbus Ohio May 2003

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Problems withUsing IPEDS Finance Data for
ComparisonsAAUDE Case Study, Columbus OhioMay
2003
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Problems withUsing IPEDS Finance Data for
Comparisons

• Revenues
• Expenditures
• Examples
• Changes in IPEDS Finance
• Conclusions Looking Ahead

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Problems withUsing IPEDS Finance Data for
Comparisons

• TheCenter review of financials included

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Problems withUsing IPEDS Finance Data for
Comparisons

• REVENUES (Part A)
• Appropriations may/may not contain
• Main Campus Only
• Branch Campuses
• Medical Center
• Ag Extension/Ag Experiment Station

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Problems withUsing IPEDS Finance Data for
Comparisons

• Tuition Fee Revenue Can Be Reported
• In Part A, Line 1 (Tuition Fees), or
• In Part A, Line 4 (State Appropriations),or
• Both Line 1 and Line 4

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Problems withUsing IPEDS Finance Data for
Comparisons

• Endowment Income
• May/may not be reported in Part A, Line 10
• Sometimes determined by spending formula alone
• Sometimes includes yield (interest and dividends)

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Problems withUsing IPEDS Finance Data for
Comparisons

• Unclear where the following revenues are reported
  (inconsistent)
• Appropriations derived from auxiliaries
• Agency funds
• Appropriations for capital outlays
• Investment income

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Problems withUsing IPEDS Finance Data for
Comparisons

• Sales Services of Educational Activities (Part
  A, Line 11)
• What is included here?
• IPEDS Definition Revenues incidental to the
  conduct of instruction, research, or public
  service. Examples include film rentals, testing
  services, scientific and literary publications,
  university presses, and dairy products.

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Problems withUsing IPEDS Finance Data for
Comparisons

• Other Sources of Revenue
• (Part A, Line 14)
• What is included here?
• Recent ad hoc query on Other Sources of Revenue
  (Purdue)

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Example Using Revenues

• 1999-2000 Revenue
• 1999-2000 FTE
• Revenue
• State Appropriations Tuition Fees
• Local Appropriations
• (Source IPEDS Finance, 1999-2000)
• __________
• Note Example is from Equity in Funding in the
  State University System of Florida, by the
  Council for Education Policy, Research, and
  Improvement (CEPRI), 2002.

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Example Using Revenues

• The Problem
• Numerator for UF includes revenues for
• Ag Experiment Station
• Ag Extension
• Health Science Center
• (Above account for 35 of UF numerator)

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Example Using Revenues

• 652 million Total Numerator for UF
• Less 117 million for Ag
• Less 113 million for Health Science Center
• Resulting ratio changes from
• 15,856 ? 10,276

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Problems withUsing IPEDS Finance Data for
Comparisons

• EXPENDITURES (Part B)
• The following are sometimes paid by state
  sometimes paid by university
• If paid by university, not separately identified
• Debt Service
• Workers Compensation
• Fringe Benefits
• Retirement
• Utilities

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Problems withUsing IPEDS Finance Data for
Comparisons

• Use of fund accounting to determine spending in
  instruction and research categories is
  problematic.
• Expenditures for the following may or may not be
  included. If included, not separately
  identified.
• Central Office (System)
• Athletics
• Foundation (fund-raising arm)

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Problems withUsing IPEDS Finance Data for
Comparisons

• Research Expenditures (Part
  B, Line 2)
• May or may not reflect institutions expenditures
  on separately budgeted research (due to system
  accounting practices, etc.)
• Research expenditures for work conducted by
  affiliated or university-owned hospitals may or
  may not get counted here.
• Varying definitions of Research

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Problems withUsing IPEDS Finance Data for
Comparisons
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Problems withUsing IPEDS Finance Data for
Comparisons

• Kansas looked at expenditures by PCS Category
  among peers -
• Found that patterns vary dramatically from
  institution to institution depending upon land
  grant and medical center.

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Problems withUsing IPEDS Finance Data for
Comparisons

• Arizona Trend Analysis of Student Educational
  Expenditures per FTE in the 1990s
• Educational Expenditures Total Instruction,
  Academic Support, Institutional Support, and
  Student Services
• (Medical School costs computed and backed out
  statistically for comparison purposes.)

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Problems withUsing IPEDS Finance Data for
Comparisons
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Problems withUsing IPEDS Finance Data for
Comparisons

• CHANGES IN IPEDS FINANCE
• New form Optional now
• Mandatory Spring 2005
• http//nces.ed.gov/ipeds/web2000/GASB.asp
• Developed by working group organized through NPEC
  chaired by Larry Goldstein (NACUBO) for
  adherence to GASB 34/35

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Problems withUsing IPEDS Finance Data for
Comparisons

• Overview of New Finance Form
• Look and contents considerably different
• Clarifying questions added regarding system, or
  part of system
• Current funds reporting, as we know it, goes away
• Operating, non-operating other revenues (no
  distinguishing of current funds)

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Problems withUsing IPEDS Finance Data for
Comparisons

• Overview of New Finance Form, Contd.
• Expenses reported by function (instruction,
  research, etc.) and by natural classification
  (salaries, travel, etc.) in a matrix format
• Balance Sheet info added
• Capital asset costs required to be amortized over
  useful life of assets

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Problems withUsing IPEDS Finance Data for
Comparisons

• Overview of New Finance Form, Contd.
• Consideration of Discounts Allowances
• Tuition fees
• Sales services of auxiliaries hospital
  services
• Scholarships and fellowships

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Problems withUsing IPEDS Finance Data for
Comparisons

• CONCLUSIONS LOOKING AHEAD
• IPEDS Instructions may not be followed
  consistently by all institutions.
• Difficult to determine exactly how they differ.
• Notes from financial statements can help clarify.
• New GASB Standards impact uncertain.
• IPEDS Finance not intended for peer comparison
  purposes!

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Problems withUsing IPEDS Finance Data for
Comparisons

• To Measure or Not to Measure Thats Still in
  Question, by Larry Goldstein (NACUBO Business
  Officer, August 2002).
• Article addresses the issues that remain
  unresolved regarding a standard operating
  measure for colleges universities.

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Problems withUsing IPEDS Finance Data for
Comparisons

• QUESTION
• Is there interest among AAUDE in exchanging
  answers to a list of Clarifying Questions for
  IPEDS Finance?
• A Pilot?