ERIC Number: ED161369
Record Type: RIE
Publication Date: 1978-May
Reference Count: 0
Institutional Financial Assessment: Methodology and Meaning. AIR Forum Paper 1978.
Jenny, Hans H.
Some approaches to the financial analysis of educational institutions are discussed. Higher education, and education in general, is viewed as a service industry that relies on human effort, and knowledge about human performance is held to be a prerequisite to understanding how changes in budgets affect educational quality. Long-range planning in higher education is essential to financial assessment, and judgment about the relative adequacy of given financial data depends on knowledge of an institution's educational objectives. Indices of educational quality should identify changes in the quality of personnel performance and of practices concerning the curriculum, and careful attention should be given to value-added quality indicators, particularly when student quality and progress are being assessed. All financial accounting should include deflated expenditure data in order to reflect the impact inflation has on real spending. Prevailing accounting and financing practices tend to ignore the crucial role played by capital in educational institutions. The size of available expendable resources is one important aspect for consideration in assessing institutional financial health. A study by Bowen and Minter is discussed, and a list of characteristics of a quality institution is appended. (SW)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the annual Association for Institutional Research Forum (18th, Houston, Texas, May 21-25, 1978)