ERIC Number: ED252141
Record Type: RIE
Publication Date: 1984-Dec
Reference Count: 0
Monitoring the Financial Condition of Colleges and Universities. AAHE-ERIC Higher Education Research Currents.
AAHE Bulletin, p7-10 December 1984
Efforts to monitor the financial condition of colleges and universities have arisen from concerns about the effects of economic and demographic pressures. Researchers have attempted to monitor financial condition through two types of research: subjective studies and objective financial indicator studies. Subjective analyses can be useful for gauging constituent satisfaction with financial performance and priorities. Efforts to create objective indicators reflect a desire to monitor measurable changes in financial condition and to maintain financial strength through the effective use of available resources. An example of a commonly used financial indicator is the ratio of instructional expenditures to total educational and general expenditures. Some financial indicators may entail nonfinancial data (e.g., the ratios of new freshmen to total applicants accepted). The interpretation of a financial indicator rests on an assumption of what constitutes "sound" financial condition. For example, overreliance on tuition income is frequently cited as evidence of weak financial condition. The assessment of institutions can be undertaken by experts or based on a theoretical framework. Applications and limitations of financial indicators have been discussed in the literature. (SW)
Descriptors: Administrator Attitudes, Economic Factors, Educational Finance, Evaluation Criteria, Fiscal Capacity, Higher Education, Institutional Research, Money Management, Statistical Analysis
Publications Department, American Association for Higher Education, One Dupont Circle, Suite 780, Washington, DC 20036 ($1.00).
Publication Type: ERIC Publications; Reports - Descriptive; Collected Works - Proceedings
Education Level: N/A
Sponsor: National Inst. of Education (ED), Washington, DC.
Authoring Institution: ERIC Clearinghouse on Higher Education, Washington, DC.; American Association for Higher Education, Washington, DC.
Identifiers: Financial Indicators; Institutional Vitality