Structure of Instructional Spending at Private Institutions

Topics: Tuition and Fees, Revenue Enhancement, Administration and Finance

This is a preview of restricted content.

  • If you are an EAB member, please log in.
  • If you are logged in and still see this message, the content is outside your membership portfolio, and we invite you to learn more by contacting us.
  • If you are not an EAB member and wish to learn more, please contact us.

Research Questions

  • What percentage of expense lines do instructional costs represent at small and mid-size private institutions?
  • What expenses do finance staff allocate as instructional costs?
  • How do administrators determine appropriate instructional spending levels?

Summary

Finance teams rely on NACUBO guidelines to determine which expenses to allocate as instructional expenses. Although finance teams rely on the same guidelines, accountants may classify expenses differently based on interpretation of NACUBO standards. This report outlines variance in allocation methods across five small and mid-size private institutions. Additionally, the report identifies the limitations of benchmarking instructional spending with peer institutions through IPEDs to determine appropriate instructional spending levels.