Periodic Review Report to the Commission on Higher Education Middle States Association of Colleges and Schools June 1, 2005 Bernard M
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FinancesBackgroundBaruch receives both an expenditure allocation and a revenue target from CUNY. The expenditure allocation is the tax-levy budget that we are authorized to spend. The revenue target is the amount of tuition revenue the college is required to collect in order to spend the given allocation. If the College brings in revenue over the target, the College can either spend the extra revenue or carry it forward to the next fiscal year through City University Tuition Reimbursable Account (CUTRA). These funds in CUTRA can therefore be used as a reserve to cover budget needs in future years. Although successful in the past in building up substantial reserves, the combination of CUNY budget shortfalls and increased revenue targets have eroded these reserves. Being part of a University system, certain items that are usually funded by individual colleges are actually funded centrally and do not appear in the College’s budget. These include fringe benefits, rentals and heat, light and power. While not covered by the College’s budget, these costs are allocated centrally and are reported by CUNY when preparing data for Integrated Postsecondary Education Data System (IPEDS). The attached statements of revenues and expenses are taken from Baruch College’s IPEDS, shown here as Table 11, using the current IPEDS format. We have included revenues and expenses for the College’s Foundation, the Baruch College Fund, as separate line items. There have been significant changes in reporting during this five-year period. In 2002 the IPEDS format changed due to the implementation of several new Governmental Accounting Standards Board (GASB) pronouncements. The most significant change in 2002 was with the GASB 35 that required the reporting of tuition and fees net of any scholarship discounts and allowances. Also, for that year there was a significant reduction in the operations and maintenance expenses. This was due to the opening of the Vertical Campus. The University no longer incurred the cost for our leased buildings. 
During this five-year period from 2000 through 2004 there were two separate tuition increases. In the spring of 2002 the University’s Board of Trustees allowed Baruch College to raise tuition for its MBA program and in fall 2003 the University raised tuition for all students. Under normal circumstances the increase in revenue would result in an increase in the operating budget. However, due to our funding model, the increased revenue also resulted in an increased revenue target. So while tuition revenue increased our expenditure allocation did not keep pace. Directory: facultyhandbook -> documents documents -> Joe Collison documents -> Baruch College Strategic Plan 2005-2010 documents -> Summary of cue, 2006-2007 Download 1.07 Mb. Share with your friends:
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