Strategic Budgeting, Frequently Asked Questions

Frequently Asked Questions
Tuition and Reporting
How is current year budgeted tuition revenue allocated (what year is the information based)?

Budgeted gross tuition is allocated based on each unit’s percentage share of credit-hour activity in the most recently completed full year. To illustrate: When preparing the FY2017 budget in the spring and summer of 2016, the academic year 2015-2016 will not yet be complete. Therefore, we will use credit-hour data for Fall 2014, Spring 2015, and Summer 2015 to determine each college/school's percentage share of budgeted gross tuition.

Is there a difference between in state and out of state allocation of tuition revenue to colleges?

No, however, budgeted gross tuition revenue is pooled and allocated according to applicable formulas by residency on each college’s income statement.

What is the definition of “aid” and “waivers” and why is the allocation labeled “formula + direct” on each college’s income statement?

“Aid” comprises undergraduate and graduate financial aid and scholarships, not including pass-through items such as federally awarded financial aid; “Waivers” are foregone gross undergraduate and graduate tuition. The “allocation” of both aid and waivers relates to the distribution of such via applicable formula and relates to awards made at an institutional level. The “direct” assessment of both aid and waivers relates to college/school-awarded aid and waivers for both undergraduate and graduate students.

How are distance education tuition revenues allocated?

Tuition from approved graduate-level programs and online undergraduate completer programs with a unique fee structure will flow directly to the unit generating the revenue as a direct Distance Learning Fee. All other distance education credit hours will be included in the appropriate tuition pool (undergraduate, graduate, resident, non-resident) for allocation.

Is the distance education fee (for AY2015-16, $85 per graduate distance education credit hour) included in the Direct Revenue Distance Learning Fees?

Yes

How will distance education tuition and contractual fees associated with strategic plan initiatives be treated (for example, online completer programs offered in conjunction with Everspring)?

Tuition will flow directly to the unit generating the revenue as a direct Distance Learning Fee. Any contractual payments to third parties will be paid by the applicable college pursuant to the contract.

Where is the $8/credit hour distribution in the new model?

The historical $8/credit hour distribution is included in the allocation of gross tuition. There will not be a separate allocation.

How will employee tuition waivers be allocated in the new model?

The funding for employee tuition benefit is included in the calculation of the federally negotiated fixed fringe benefit rate. When an employee takes advantage of the tuition benefit, the associated waiver is applied to the AU Fixed Fringe Fund rather than the college/school.

Why is graduate tuition pooled when graduate students pay a fixed price for tuition?

Graduate students do not pay a fixed price for tuition. All students pay a per-hour tuition rate. The per-semester rate is capped at 12 hours and 9 hours for undergraduate and graduate students, respectively.

Last updated: May 13, 2021