An Intro to the Distribution of Tuition Revenue to Schools & Colleges under ABB.

An Intro to the Distribution of Tuition Revenue to Schools & Colleges under ABB

Outline

What is the “tuition revenue” distributed under ABB?

By what means is tuition revenue distributed to schools/colleges?

What is the timing of calculations and how does that translate into “true-up” and “incremental revenue”

Where do the data come from, and why don’t the numbers match EDW or UW Profiles?

Only net operating fee revenue is distributed to schools/colleges

2014-15 Full-Time Resident Undergraduate Charges:

Operating Fee $10,740Building Fee $565Total Tuition $11,305 S&A Fee $390Tech Fee $123IMA Bond Fee $96Facilities Renovation Fee $252U-PASS $228Total Fees $1,089 Total Tuition & Fees $12,394

Only net operating fee revenue is distributed to schools/colleges

Gross operating fee revenue is the sum of operating fees charged to students

The difference between gross and net operating revenue is a combination of two forms of financial aid: Tuition waived (foregone revenue) Revenue used for financial aid (which may

take the form of grants)

So, how do we calculate gross operating fee revenue?

We start with the operating fee charged to a student in a given tuition/residency category, which is dependent on the number of credits a student takes.

So, how do we calculate gross operating fee revenue?

We then simply multiply the number of students enrolled in a given tuition/residency category by the operating fee charged based on the number of credit hours they are taking.

SCH # Students Op Fee Total Charged

2 3 $100 $300

3 2 $150 $300

….

15 20 $1,000 $20,000

…

Tot 25 $20,600

Then, to get net operating fee revenue, we subtract four pools of financial aid that are subtracted:

1. “3% Need/1% Merit” Waiver Pool 4% of the resident portion of tuition that is

charged is subtracted and awarded as waivers.

Example:

Res NonRes

2014-15 Undergraduate Full-Time Operat-ing Fee

Resident Portion

Non-Resident Differential$30,965

$10,740

4% x $10,740 = $429.60

2. Waivers representing foregone revenue, e.g.:

TA/RA waivers Veteran’s waivers Waivers for children of fallen police

officers/fire-fighters


3. Legislated set-aside (5%)

5% of:Gross – 3%Need/1%Merit – Waivers

(foregone

revenue)


4. Additional aid pool for Undergraduate residents Undergraduate non-residents


In fact, only 70% of net operating fee revenue is distributed to schools/colleges

30% of net operating fee revenue is retained centrally. These funds are used for such things as:Utilities, grounds, maintenanceCentral services (e.g. libraries,

police)Strategic investments

(Provost Reinvestment fund)

So……

How is 70% of the net operating fee distributed to schools/colleges?

First, we “pool” net operating fee revenue by tuition groups:

> Undergrad> Grad Tier I> Grad Tier II> Grad Tier III> CoEnv Grad> Educ Grad> MSW> Public Health Grad> MPH> Engineering

Masters

> M Public Admin> MBA> Law (JD)> Law (Other Grad)> Nursing Grad> PharmD> Medicine (MD)> Dentistry (DDS)> Dentistry Grad

Then we distribute each pool according to the ABB distribution rules

> 60% based on SCH> 40% based on

degrees

Undergrads Grad/Professional

> 20% based on SCH> 80% based on major

enrollments

What does it mean to distribute $X in revenue based on SCH?

The Student Credit Hours from a given course section are associated with a school or college on the basis of the unit “responsible” for the course sectionThat does not mean the college from which the

faculty teaching the course section comeRather, with the exception of “official” joint

courses, each curriculum has one (or more) schools/colleges listed as “responsible”ACCTG: FosterMATH: A&SBIOEN: Engineering and SoM


In the case of “official” joint courses, one course is identified as the “responsible” course e.g., ENV H 461 is offered jointly with CEE 490, and CEE

490 is the responsible course, so all credits are attributed to Engineering

If a course section is offered jointly but is not designated as an official joint offering, then the credits are attributed to college based on how each student enrolls in the course.


We look at all the SCH taken by students in a given tuition category,

If a particular curriculum (BIOEN) is attributed to more than one college, then the associated SCH will be counted twice

Each school college gets a percentage of $X based on the percentage of total SCH in the pool for which they are responsible

CoE 120

CoE 120

CoE 120

CoE 120

CoE 120

SoM 120

Total 720

Undergraduate SCH

A A 120

C SCI 120

E E 120

M E 120

BIOEN 120

Total 600

CoE 83.3%

SoM 16.7%

Distributing based on major enrollments or degree majors:

Basically the same as SCH, with differences: We don’t have to worry about the “responsible course”

problem for majors and degrees We do have to deal with multiple degrees and majors,

however!

Suppose we award five students degrees at the baccalaureate level:

A&S Engr MedStudent 1 BA English 1Student 2 BA Philosophy 1

BSMath 1Physics 1

Student 3 BS Elect Eng 1Student 4 BA History 1Student 5 BS BioEng 1 1

We have:• 5 students• 6 degrees• 7 different majors• 8 “degree majors”

• 62.5% to A&S• 25% to Engineering• 12.5% to Med

When does this happen and what is the timing of the data used?

Okay, then…..

Although calculations are done in Spring, the “process” starts in Fall

• Each Fall, schools and colleges prepare for annual budget discussions with the Provost. In that process, they are asked to provide:• Recommendations for tuition rates for their

programs• Information about whether they wish to create

a new tuition category• Any expected substantial changes in

enrollment in their graduate/professional programs.

• By Spring, the proposed rates are usually fairly solid, and they are approved by Regents in June (early July if necessary)

Calculation of true-up

• As of spring census day (let’s use Spring 2015 as example):• Final tuition revenue estimate for 2014-15 is

calculated, using:• Census day enrollments (by tuition category, residency, and

SCH) for 2014-15• Tuition rates for 2014-15• Waivers (representing foregone revenue) awarded through

Spring census day

• That revenue estimate is calibrated to match the estimate of total collections (by campus) for 2014-15 based on collections received in combination with historical information about the pattern of collections received between Spring census day and the end of the fiscal yearif necessary)

Calculation of true-up distribution

• To calculate the true-up amounts, we first determine how final tuition revenue estimate that was calculated for 2014-15 should be distributed to units. Distribution:• Undergraduates:

• 60% based on actual SCH from 2014-15• 40% based on actual degree majors from 2013-14

• Graduate/Professional Students• 20% based on actual SCH from 2014-15• 80% based on actual majors enrollments from 2014-15

• The true-up to each unit is the difference between the final ABB distribution of revenue for 2014-15 and the projected distribution of 2014-15 revenue from the prior spring.

Calculation of incremental revenue for coming fiscal year

• To calculate the incremental revenue for the coming year, we must begin with a projection of the revenue pool for the coming year. For that, we assume:• Enrollments expected for the coming year. We handle

this differently for different groups:• Seattle undergraduate enrollments by residency: Based on

enrollment model that takes into account what is known about the admitted incoming undergraduate class

• Bothell and Tacoma enrollments – based on combination of historical trends and expectations of UWB and UWT administration

• Seattle graduate/professional programs: Assume prior year enrollments unless:• The unit indicates they expect a dramatic increase or decrease, or• We have evidence of a fairly constant trend

Calculation of incremental revenue for coming fiscal year

• We assume that the distribution of enrollment in each tuition/residency group across number of credits taken will remain the same as in the prior year. To get the projected revenue pool for the coming year (in this example, for 2015-16), we then combine that projected enrollment by SCH with:• The tuition rates for the coming year (these calculations

won’t be finalized until we have final rates)

• Information about changes in the use of tuition for aid or about expected changes in waiver awards

Calculation of the incremental revenue distribution

• To calculate the incremental revenue for each school and college, we first determine how the tuition revenue projected for 2015-16 should be distributed to units. Distribution:• Undergraduates:

• 60% based on actual SCH from 2014-15• 40% based on actual degree majors from 2013-14 (we

have made some adjustments periodically given trends or changes between schools)

• Graduate/Professional Students• 20% based on actual SCH from 2014-15• 80% based on actual majors enrollments from 2014-15

• Why don’t we adjust based on enrollment changes?• The incremental tuition to each unit is the difference

between the projected distribution for 2015-16 and the final distribution for 2014-15.

What is the relationship between this general framework and the ABB spreadsheets that you publish?

http://opb.washington.edu/content/annual-budgets

Moving beyond this level of abstraction……



So……

Where the heck do you get the data for these calculations?

Key Data Issues – How are ABB data sourced?

• ABB was built on the Planning and Budgeting Database rather than EDW because the relevant data elements didn’t exist in EDW.

• Requirements• Census day snapshots of enrollments and course

registrations• Mapping of curricula, majors, and degrees to fin orgs

• Good news!• Currently OPB and EDA are working to move

functionality from PNBDB into EDW. • Bad news:

• For now, you won’t be able to get the numbers out of EDW or Profiles

Key Data Issues – what parameters are used for inclusion into ABB calculations?

• Revenue calculation:• Students:

• Must be coded with a tuition code (mm_tuit_dist_tbl in sr_mini_master) that is associated with a tuition based program

• Must have an exemption code (mm_exempt_code) = 0

• Aid:• Calculated or, • Waivers representing foregone revenue:

• Identified by budget number and distributed out to fees based on waiver characteristics

• Coming improvements….table

Key Data Issues – what parameters are used for inclusion into ABB calculations?

• Distribution:• SCH:

• Credits from census-day course registrations• Excluding students with exemptions• Excluding self-sustaining course

• Majors:• For students without exemptions • For students who do NOT only have self-sustaining

registrations• Who are coded in mini-master with a “regular” tuition code• Excludes certificates (level=3, type=5)• Excludes GRAD-VIS

• Degrees:• All level=1

Key Data Issues – Mapping to fin orgs

• Why can’t we use dept_fas_org_code in sr_dept_code• Currently mappings are moved into EDW2.0• Available as coming improvement with PNBDB to EDW

project

QUESTIONS

Contact Carol [email protected]

mailto:[email protected]

An Intro to the Distribution of Tuition Revenue to Schools & Colleges under ABB.

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