Problems with the Information Exchange Procedures (IEP) developed by the National Center for Higher Education Management Systems are discussed. IEP procedures analyze student records, faculty effort, and annual expenditures. The particular approach taken in the analysis of the student faculty relationship has important theoretical problems, is too complex and costly, and adds little significant insight for use in university administration. The descriptive approach of IEP is based on the faculty activity report which has numerous validity problems that destroy the potential use of its major contribution: the calculation of unit costs. The complex relationships between faculty and students, which are causes of the costs, are concealed by this effort. The errors of measurement chiefly center around the accuracy and validity of the faculty activity reports and the "representativeness" of data from a particular time period. Additional error results from problems such as social security matches between salary and faculty activity records, program classification structure matches between student records and faculty activity records, and the consistency across institutions of the types of operational decisions necessary in any large project. The complexity of the calculations used to produce the indices serves to compound the errors of measurement of the inputs. (SW)