archive-org.com » ORG » A » AAUP.ORG

Total: 1208

Choose link from "Titles, links and description words view":

Or switch to "Titles and links view".
  • Understanding Institutional Finances | AAUP
    a state agency or legislative website If the financial reports you need are not available on a website ask for paper copies from one or more of the offices noted above Again these are public documents and as a faculty representative you are most certainly entitled to participate in the financial planning process Be persistent if necessary 4 What should I know about getting data on private nonprofit colleges and universities Although private institutions do have more leeway in what documents they make public their nonprofit status means that significant amounts of institutional financial information should be readily accessible All nonprofit institutions are required to file a Form 990 with the Internal Revenue Service each year The 990 includes aggregate financial information on revenue expenditures changes in net assets or fund balance assets and liabilities and some limited figures on compensation and lobbying expenditures It may also include copies of audited financial statements The Form 990 is a public document so your institutional finance or business office should provide a copy upon request This will likely get you the most recent information available If for some reason the administration is not forthcoming you can obtain copies of 990 forms from either of two sources Depending on the institution the forms available may not be the most current The Foundation Center 990 Finder Note that the 990 PF form is for private foundations Guidestar Basic information including 990 forms is available at no cost although registration is required Private colleges and universities also frequently have fully staffed development offices since they are often significantly reliant on charitable giving The development or advancement office may produce an annual report which may include a more or less detailed annual financial statement Although the level of detail in these statements may not be sufficient for a thorough analysis of the institution s position it may be useful to know what information the college or university is providing to prospective donors Remember basic principles of shared governance mean that you should not need to resort to subterfuge to obtain financial documents Your administration should provide these documents in support of the faculty s participation in institutional planning 5 What should I know about getting data on private for profit colleges and universities For profit institutions may be less forthcoming with full details of their financial operations and less likely to provide mechanisms for faculty participation in decision making Indeed for profits have very few full time faculty Even so for profit institutions are subject to IPEDS Finance reporting requirements albeit with less detail and those of their regional accreditor if so accredited In addition if shares of the institution are publicly traded annual reports including financial statements should be available 6 What should I be looking for in reviewing institutional financial information Ideally faculty representatives and institutional financial administrators will collaborate in an ongoing review of institutional financial information and they will be provided complete data and sufficient explanation to enable all parties to participate in significant decisions Faculty members with some experience in accounting business or economics may be able to use these Accounting Guidelines for Analysis of Financial Exigency along with data from financial statements obtained as described above to begin a thorough analysis of the institution s financial position Even if complete information is not available or if faculty representatives do not have sufficient financial analytical capabilities there are key pieces of information for which to look In each case it s very important to get data from more than one year many financial indicators are useful only when tracked over time And assertions about national averages or typical practices are no substitute for the real data from your institution a State and local operating funds For public institutions support from state and or local government is often a significant revenue source Calculate state local funding as a percent of total revenues Note that an appropriation is only a projected amount and in some cases represents an upper limit rather than actual revenues Pay attention to the dollar amount of state and local funding as well as the percentage If state and local dollars are increasing but they make up a decreasing percentage of total funding that may be an indication of inappropriate spending choices Insist that these funds be used to support core functions instruction and research and that spending cuts be made elsewhere first It s also important to know that funds from state and local government sources are generally not designated for certain types of expenditures Although funding may follow a formula the institution usually has significant discretion in how the funds are spent Unfortunately however it is often true that capital funds for buildings and land acquisition are restricted That doesn t mean those capital projects are the best use of funds however Ask for the details and be a little skeptical b Tuition dependence Especially for private institutions tuition and fees are a substantial proportion of annual revenues Enrollment figures are important for many public institutions as well but the effects on funding are often less direct or immediate Calculate tuition fees as a percent of total revenues Be sure you know whether the tuition figures are net of discounts and or financial aid Ask for details on enrollment projections used to forecast tuition revenues faculty members should be a part of decisions on changes to basic admissions policies that will affect the institution s direction and financial health c Endowment income Earnings from institutional endowment and or investment funds may be a significant source of operating revenue especially for private colleges and universities However institutions vary widely in the contribution of these revenues to the regular operating budget Just because the market is down doesn t mean that your institution s operating budget must be cut find out specifically how much investment income was anticipated in budget planning for the year d Expenditure on instruction Calculate spending on instruction as a percent of total expenditures In

    Original URL path: http://www.aaup.org/i-need-help/responding-financial-crisis/understanding-institutional-finances (2016-02-13)
    Open archived version from archive


  • Organizing the Faculty Response | AAUP
    grievances and opportunities for publicizing and organizing faculty Many faculty members wish to do something but don t know what will be most effective A key to engaging them is to give them tasks that will involve limited and known time commitments This can mean asking them to spend fifteen minutes encouraging department colleagues to attend a meeting about the financial crisis or to spend five minutes forwarding the chapter newsletter to colleagues or to spend ten minutes placing flyers in department mail boxes or to spend an hour gathering department information about the effects of budget cuts and forwarding it to union or senate leaders It is also a good idea to ask faculty to engage in efforts that tap into their own interests and abilities e g accounting math statistics and business professors analyzing data arts faculty creating visuals for flyers and posters communications professors devising plans for contacting and speaking with the media and political science professors contacting legislators and advising the chapter on political legislative tactics For faculty who lack job security identify low visibility activities they can do without risk such as honing the chapter message making safe phone calls photocopying materials and discretely providing information to chapter leaders The key point is to give everyone activities that are time specific that are not too time consuming that correspond to their particular interests and abilities that they are likely to do and for which they can be held accountable Their own small involvement makes greater involvement more likely later on 2 Most of our faculty members believe the administration s unsupported claims that the general economic crisis has created a crisis at our institution How can we better educate our colleagues on this issue Accomplishing this task is a matter of providing them the facts clearly simply and repeatedly We are finding that many administrators make unsupported claims that can be fairly easily challenged by asking for supporting documentation Constantly remind your colleagues that the burden is on the administration to demonstrate that financial problems are as dire as administrative officers claim The entire faculty is more likely to be well informed if the chapter delivers the information in different forms through broadcast e mails newsletters department representatives and in public forums All colleges departments and governance bodies will be dealing with budget cutbacks so try to get on the agendas for their meetings Be prepared to respond as quickly as possible to questionable or inaccurate claims Accounting math statistics and business professors have particularly high credibility on financial issues therefore it is beneficial to identify and prepare individuals from these departments to be spokespersons in challenging the claims of the administration Government Relations and Lobbying 1 What should I say to legislators about the financial crisis Because the focus is on getting and keeping people working right now emphasize both the short and long term economic impact of colleges and universities In the short term numerous colleges and universities are huge employers and the multiplier effect in cities with institutions is large In the long term a more educated citizenry makes less use of entitlements while adding significantly to tax revenues 2 How do I find out which legislators are most relevant for this issue All elected officials should hear from their constituents but the policymakers on relevant committees like appropriations and education wield the most power in determining what bills make it to the floor for a vote and they determine the form in which such bills arrive See links to all state legislatures as well as some advocacy pointer in the AAUP s Online Advocacy Center 3 What tips does the AAUP have for writing letters to elected officials First and foremost keep it short and to the point Academic writing is very different in style than the kind of writing used in state capitols and AAUP members need to remember to think in terms of bullet points when communicating with elected officials Additionally don t try to sell a position solely on principle i e in terms of right or wrong Sell your position by making it clear why your proposal is best for the district state country and how it benefits constituents Use numbers statistics and facts instead of simply appealing to the idea of the public good Your representatives have to make some very tough choices from among a number of worthy projects Using good data tell them exactly how to sell your proposal to the voters and their peers Anything you can share about local employment numbers if local unemployment rates are lower than the overall state level or average local income if it s higher than the state average i e a higher tax base is persuasive Even data that show lower local incarceration rates or lower than average use of public assistance demonstrates how beneficial our institutions are to the economy 4 I am at a private university Would it be useful for me to inform elected officials about the financial crisis on my campus Your situation is trickier because legislators cannot do as much directly to support private institutions However many private institutions do receive some funding from public agencies and this relationship might give those agencies and related elected officials reason to pay attention to the financial crisis affecting an entity they are funding Municipal governments often provide some funding to local institutions and government agencies that provide financial aid take an interest in the quality of education for which that aid is paying Legislators are likely to be interested for example in faculty reductions that increase the student faculty ratio cause course cancellations or delay graduation dates Additionally private colleges and universities can be large employers and often make significant contributions to local and state economies as well as to the revenues of local and state governments partly through the income tax on their employees These factors give local and state legislators reason to be concerned about the financial health budget cuts and

    Original URL path: http://www.aaup.org/i-need-help/responding-financial-crisis/organizing-faculty-response (2016-02-13)
    Open archived version from archive

  • Accounting Guidelines for Analysis of Financial Exigency | AAUP
    ratios would be going forward Still in order to make reliable estimates of the future all prior years must be included The analysis that one should perform in order to make such a claim entails three levels of data examination described below Variables utilized by Moody s to assess the financial condition of universities these variables consider items from the Statement of Activities and Statement of Net Assets focusing on revenue expenses and the level of net assets which is an indication of financial flexibility Financial Vulnerability through what is called the FVI or financial vulnerability index Debt to cash flow analysis Metrics Used by Moody s Moody s uses three variables then puts various weights on those variables and comes up with a composite score for an institution The ratios are all derived from the main components of the Statement of Net Assets and the Statement of Activities The ratios are described below The three ratios are Viability ratio Expendable net assets divided by plant debt Note if plant debt is zero then the viability ratio is not calculated and a viability score of 5 is automatically assigned Primary reserve ratio Expendable net assets divided by total operating expenses Net Income Ratio Change in total net assets divided by total revenues The definitions of the components of those ratios are Expendable net assets The sum of unrestricted net assets and restricted expendable net assets Plant debt Total long term debt including the current portion thereof including but not limited to bonds payable notes payable and capital lease obligations Total Revenues Total operating revenues plus total non operating revenues plus capital appropriations capital grants and gifts and additions to permanent endowments Total operating expenses Total operating expenses plus interest on long term debt Total non operating expenses All expenses reported as non operating with the exception of interest expenses Change in total net assets Total revenues operating and non operating minus total expenses operating and non operating A composite score is compiled and below are the numbers assigned to each variable A score of 5 indicates the highest degree of fiscal strength in each category Financial Vulnerability Index FVI This is an index that is akin to a bankruptcy prediction model in the corporate world For nonprofit organizations a recent study examined several thousand nonprofit financial statements and determined which variables are most important in predicting financial trouble Then a score is created that will yield a rating based on these variables This score is called the financial vulnerability index or FVI If the FVI is 0 10 there is no financial problem If the FVI is between 0 10 and 0 20 there may be a problem If the FVI is 0 20 there is a potential problem Metrics Utilized Surplus Margin Revenues Expenses Revenues Revenue concentration ratio revenue from the sources over total revenue square each source s and then sum The fewer revenue sources the more vulnerable If only 1 source the revenue concentration is one Debt

    Original URL path: http://www.aaup.org/i-need-help/responding-financial-crisis/accounting-guidelines-analysis-financial-exigency (2016-02-13)
    Open archived version from archive

  • Letter to University of Illinois Faculty Regarding Finances | AAUP
    the data we drew upon We also reiterate and emphasize the data that are required for meaningful faculty involvement in decision making and indeed for the deliberations among various parties that are key to good decision making Here we offer three overriding points First the University Senates Conference acknowledges that furloughs are a short term effort designed to help keep the ship afloat by buying time until the State begins to pay its bills And at the end of their first point they acknowledge that one strategy proposed in the Bunsis report refunding the furloughs should be considered The point is that rather than buying time with faculty and staff s monies at worst the university should be borrowing those monies from its faculty and staff and repaying them with interest So our report has successfully triggered consideration of an option that previously was not on the table We continue to believe that the other options we identified should be pursued first but at least there is agreement on this one option Second the University Senates Conference suggests that we are posing a roseate view of the situation because we do not support furloughs But it is not the AAUP that posed the short term solution of furloughs to the short term problem of cash flow rather it was the university administration and an administration that did so even with a 2010 budget that built in continued disproportionate increases in administrative costs We quite clearly believe that there are long range patterns that compromise higher education institutions We made such points in the statement The Failure of Furloughs recently sent to UIC and UIUC faculty by General Secretary Gary Rhoades there are long term patterns in resource allocation within universities as well as to universities from the state that are compromising the quality and core missions of our institutions and we believe these patterns need to be redressed by rebalancing investment for instance in educational versus in administrative expenditures This was a case we also set out last year in a statement on furloughs issued by our Collective Bargaining Congress Executive Committee Thus our position has quite clearly been that furloughs are a failure to address the trends that are undermining public higher education So we are pleased by and support the call of the University Senates Conference for a top to bottom review of university expenditures a review that puts everything on the table and we appreciate their recognition in our report of the significant issue of administrative costs That is precisely the sort of action we would have hoped our report would trigger As a friendly amendment to this we would emphasize as we discuss below that what also must be on the table is the most recent audited financial statement of the university An open review requires the university to open its books to faculty more fully and in a more timely fashion than has been done this academic year Third the University Senates Conference indicate that

    Original URL path: http://www.aaup.org/i-need-help/responding-financial-crisis/letter-university-illinois-faculty-regarding-finances (2016-02-13)
    Open archived version from archive

  • The Role of the Faculty in Conditions of Financial Exigency | AAUP
    from the faculty to the administration over curricular matters that affect the educational missions of institutions for which the faculty should always bear the primary responsibility In most cases the decisions to close programs are made unilaterally and are driven by criteria that are not essentially educational in nature they are therefore not only procedurally but also substantively illegitimate Increasingly administrators are making budgetary decisions that profoundly affect the curricula and the educational missions of their institutions rarely are those decisions recognized as decisions about the curriculum even though the elimination of entire programs of study ostensibly for financial reasons has obvious implications for the curricular range and the academic integrity of any university This report responds to this state of affairs in two ways one by making recommendations intended to strengthen shared governance and faculty consultation with regard to program closures and two by addressing the gap between Regulation 4c and Regulation 4d of the AAUP s Recommended Institutional Regulations on Academic Freedom and Tenure Regulation 4c pertains to financial exigency and Regulation 4d concerns program discontinuance based on educational considerations First as to governance and consultation this report insists that faculty members must be involved in consultation and deliberation at every stage of the process beginning with a determination that a state of financial exigency exists We offer specific recommendations for such faculty involvement Before any proposals for program discontinuance on financial grounds are made or entertained the faculty should have the opportunity to render an assessment in writing on the institution s financial condition Faculty bodies participating in the process may be drawn from the faculty senate or elected as ad hoc committees by the faculty they should not be appointed by the administration The faculty should have access to at minimum five years of audited financial statements current and following year budgets and detailed cashflow estimates for future years In order to make informed proposals about the financial impact of program closures the faculty needs access to detailed program department and administrative unit budgets The faculty should determine whether all feasible alternatives to termination of appointments have been pursued including expenditure of one time money or reserves as bridge funding furloughs pay cuts deferred compensation plans early retirement packages deferral of nonessential capital expenditures and cuts to noneducational programs and services including expenses for administration Faculty members in a program being considered for discontinuance because of financial exigency should be informed in writing that it is being so considered and given at least thirty days in which to respond Tenured tenure track and contingent faculty members should be involved Second this report proposes a more detailed and specific definition of financial exigency that will extend the standard of exigency to situations not covered by our previous definition As set forth in the introduction our new definition names a condition that is less dramatic than that in which the very existence of the institution is immediately in jeopardy but is vastly more serious and threatening to the

    Original URL path: http://www.aaup.org/report/role-faculty-conditions-financial-exigency (2016-02-13)
    Open archived version from archive

  • Hotel Information for 2016 Annual Conference | AAUP
    Local Toolkit Issue Campaigns Find Chapters Conferences Start a Chapter Hotel Information for 2016 Annual Conference Mayflower Hotel 1127 Connecticut Avenue NW Washington DC 20036 The Mayflower Hotel Autograph Collection opened in 1925 and was quickly labeled as Washington DC s Second Best Address by President Harry Truman The Grand Ballroom has served as the backdrop for every Presidential Inaugural Ball from Coolidge through Reagan It is the Progressive Grand Dame of the Nation s Capital and a 4 diamond luxury hotel The Mayflower is listed with the National Registry of Historic Places and is just 4 blocks from the White House It is convenient to Georgetown and the Red Line Farragut North Online Reservations Make your Online Reservations at the Mayflower Renaissance Hotel now to receive the special AAUP group rate of 244 night for a single or double plus applicable taxes Your AAUP guest reservation includes complimentary internet in your room and access to the fitness center There are a limited number of rooms available at this rate so we encourage you to make your reservations as soon as possible to guarantee availability Phone Reservations If you book by phone please use the following dedicated Group Reservation phone numbers This will ensure you receive the special block rate of 244 Mention the group name AAUP Reservations Toll Free 1 888 236 2427 Reservations Local Phone 1 202 347 3000 Reservation Deadline and Information Reservations must be made on or before Tuesday May 24 2016 All reservations must be accompanied by a first night room deposit or guaranteed with a major credit card Hotel rooms are subject to applicable taxes currently 14 5 The AAUP rate will be honored three 3 days before and three 3 days after the conference depending on room availability Check in time is 3

    Original URL path: http://www.aaup.org/get-involved/upcoming-events/aaup-annual-conference/hotel-information-2016-annual-conference (2016-02-13)
    Open archived version from archive

  • 2016 Delegate Forms | AAUP
    Tenure Review Retirement Sexual Diversity Gender Identity Teaching Evaluation Tenure Women in Higher Education Reports Publications AAUP Policies Reports Academe Economic Status Report Compensation Survey Bulletin of the AAUP The Redbook Journal of Academic Freedom AAUP Bookstore News AAUP in the News AAUP Updates For the Media Get Involved Upcoming Events Local Toolkit Issue Campaigns Find Chapters Conferences Start a Chapter I Need Help With Workplace Issues Understanding Terms and Abbreviations Responding to Financial Crisis You are here Home Get Involved Upcoming Events AAUP Annual Conference Upcoming Events AAUP Annual Conference Hotel Information Delegate Forms Governance Conference Past Events Local Toolkit Issue Campaigns Find Chapters Conferences Start a Chapter 2016 Delegate Forms AAUP 2016 Delegate Forms Guide The AAUP Annual Conference runs June 15 19 and includes three different business meetings To vote in these meetings you must complete the appropriate delegate certification form Each meeting has a different certification form and different rules for credentialing delegates Use this guide to help you navigate through the credentialing process Delegates to the AAUP Collective Bargaining Congress Business Meeting June 16 2016 Delegates to the Assembly of State Conferences Business Meeting June 17 2016 Chapter Delegates to the 102nd Annual Meeting June 18 2016 Conference Delegates to the 102nd Annual Meeting June 18 2016 Chapters and Conferences Are you looking for a campus based chapter of the AAUP or for your local state organization See a list of chapters or state conferences Start a Chapter Active AAUP chapters serve the profession on more than 450 campuses by supporting principles and programs that vitally affect the quality of higher education and professional life Find out how you can start a chapter at your college or university Learn more Employment Opportunities AAUP staff position openings and positions with AAUP chapter and affiliates are posted

    Original URL path: http://www.aaup.org/get-involved/upcoming-events/aaup-annual-conference/2016-delegate-forms (2016-02-13)
    Open archived version from archive

  • Annual Conference and Annual Business Meeting | AAUP
    Ed Intellectual Property Accreditation Sexual Harassment Assault Academic Research Civility Conflicts of Interest Collective Bargaining Hiring and Promotions Discrimination Diversity Affirmative Action Ethics Faculty Work Workload Family Work Grading Graduate Students The Academic Bill of Rights Minority Serving Institutions Post Tenure Review Retirement Sexual Diversity Gender Identity Teaching Evaluation Tenure Women in Higher Education Reports Publications AAUP Policies Reports Academe Economic Status Report Compensation Survey Bulletin of the AAUP The Redbook Journal of Academic Freedom AAUP Bookstore News AAUP in the News AAUP Updates For the Media Get Involved Upcoming Events Local Toolkit Issue Campaigns Find Chapters Conferences Start a Chapter I Need Help With Workplace Issues Understanding Terms and Abbreviations Responding to Financial Crisis You are here Home Annual Conference and Annual Business Meeting 2013 AAUP Annual Conference Join your colleagues for the AAUP s Annual Conference on the State of Higher Education and the annual business meeting of the AAUP Online registration is closed but on site registration starts June 12 at the hotel Read more about 2013 AAUP Annual Conference 2015 AAUP Annual Conference Join your colleagues for the AAUP s Annual Conference on the State of Higher Education and the annual business meeting of the AAUP

    Original URL path: http://www.aaup.org/event-categories/annual-conference-and-annual-business-meeting (2016-02-13)
    Open archived version from archive



  •