Transcript Administrative Cost Ratio

 Institutional Support Expenditures
divided by
Total Operating Expense - Auxiliary Exp.
 According to the Legislative Budget Board:
“provides an indicator of the proportion of
operating budget being spent on
administrative costs.”
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 Institutional Support is a functional
expense classification defined by NACUBO
(National Association College & University
Business Officers) used to allocate costs
between higher education activities. As
reported on the AFR, it tells the reader
“why” an expense was incurred as
opposed to “what” was purchased.
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Institutional Support includes:

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
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
Executive Management – President, VPs &
their staff including operations related to planning
& legal
Fiscal Operations – Accounting, Bursar and bad
debt expense from loans but not from
receivables
General Administration– HR, Purchasing, etc.
Administrative Information Technology
Public Relations/Development
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



Instruction – costs directly related to instructional
mission (includes department chairs).
Academic Support – includes dean’s offices &
library, museums, academic computing & advising.
Research– includes expenses for activities
specifically organized to produce research whether
internal (separately budgeted) or externally funded.
Includes institutes and research centers.
Public Service – non instructional activities to
external groups. Includes conferences, institutes,
consulting & general advisory services.
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
Student Services – costs that have the primary
purpose of contributing to students’ emotional and
physical well being and intellectual, cultural &
social development (outside the context of the
formal instructional program.) Includes admissions
& records, student IT, student health, counseling
& career guidance, student activities, financial aid
administration.
Does not include intercollegiate athletics programs as those
must be identified as an Auxiliary Enterprise by Texas law.
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Operation & Maintenance of Plant – includes
administrative costs, building maintenance,
custodial, utilities, landscape / grounds, repair &
renovation, security & safety (police, disaster
preparedness, environmental health & safety,
etc.), logistical services (central receiving, stores)
and facilities related IT.
Scholarships & Fellowships
Auxiliary Enterprises– self supporting entities to
furnish goods or services to students, faculty,
staff or incidentally to the general public; includes
food services, athletics, residence halls and all
related administrative expenses.
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UTSA 5 Year
Administrative Cost Trend
AFR 2008
AFR 2009
AFR 2010
AFR 2011
AFR 2012
31,505,000
40,816,000
42,556,783
45,217,799
37,597,797
328,230,000
363,087,000
396,938,707
418,830,437
420,454,872
11.2%
11.2%
10.7%
10.8%
8.9%
FY03 (11.2%) FY04 (11.7%) FY05 (11.3%) FY06 (11.9%)
FY07 (10.3%)
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Institutional Support Expenditures
Total Operating Expense – Auxiliary Exp.
$ 37,597,797
____________ = 8.94%
$420,454,872
We have lowered the rate by 1.86%
Source: FY12 Annual Financial Report
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Evaluated opportunities to ‘spread’ costs coded
to Institutional Support as allowed by NACUBO
 $4.4M in IT expenditures allocated to Academic
Support
Corrected coding, $3.0M
Capitalized PeopleSoft project team salaries,
$965K- moved the expense to O&M of Plant
Administrative Overhead, $895K - moved the
expense to Auxiliaries
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AFR
2008
UT Tyler
AFR
2009
AFR
2010
AFR
2011
AFR
2012
12.7%
11.6%
11.8%
12.0%
12.6%
UT Permian Basin
9.3
9.7
8.2
6.8
11.1
UT Dallas
9.8
9.1
8.9
10.2
9.3
11.2
11.2
10.7
10.8
8.9
UT Pan Am
9.6
10.9
9.4
8.9
8.9
UT Brownsville
7.9
7.9
7.9
6.9
7.9
UT El Paso
7.7
7.7
7.8
7.7
7.6
UT Arlington
8.0
8.4
9.3
12.1
7.6
UT Austin
5.1
5.5
6.0
5.1
4.8
UT San Antonio
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UT System & Legislative pressures
 Measures administrative efficiency
 Stakeholder accountability
 Affordability of higher education
Chancellor’s Framework
2. B. 1. Utilize Incentive Based Compensation
Strategies:
 Presidential Performance Reviews
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Overall expenditures need to increase at
a rate higher than Institutional Support
costs increase
 Fill vacant faculty positions
 Add new faculty positions
 Increase restricted funding expenditures –
sponsored programs & gifts
 Reduce Institutional Support Costs
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