CURRENT FUNDS REVENUES AND EXPENDITURES OF INSTITUTIONS OF HIGHER EDUCATION: FISCAL YEARS 1984 THROUGH 1992

CURRENT FUNDS REVENUES AND EXPENDITURES OF INSTITUTIONS OF HIGHER EDUCATION: FISCAL YEARS 1984 THROUGH 1992

INTRODUCTION

This report presents revenue and expenditure data of the nation's accredited institutions of higher education over the nine-year period from fiscal year 1984 through fiscal year 1992. Data are from the Integrated Postsecondary Education Data System (IPEDS) "Finance" surveys from fiscal year 1987 (FY87) through fiscal year 1992 (FY92) and the Higher Education General Information Survey (HEGIS) from fiscal year 1984 (FY84) through fiscal year 1986 (FY86). These surveys collected information on revenues and expenditures, expenditures on scholarships and fellowships, and other financial data. This survey report includes information only on institutions of higher education which are accredited at the college level by an agency recognized by the Secretary, U.S. Department of Education. Definitions of the terms used in this report are available in the glossary.

REVENUES

In FY92, institutions of higher education received revenues of over $160 billion. Almost 26 percent of institutional revenues came from tuition and fees, and another 23 percent came from state appropriations (table 1). Among public institutions, about 17 percent of revenues were from tuition and fees and 36 percent from state appropriations (table 3). Among private institutions, 41 percent of current fund revenues were generated by tuition and fees, while state appropriations accounted for less than one-half of one percent (table 5). Thus, whereas tuition and fees were an important revenue source for both public and private institutions, state appropriations were a negligible revenue source for private institutions. Another 23 percent of current fund revenues of both public and private institutions were derived from sales and services, with almost 21 percent coming from sales and services of auxiliary enterprises (e.g., bookstores, dormitories) or hospitals. Auxiliary enterprises, however, are not considered part of education and general revenues since their revenues are designated to support auxiliary activities rather than to support the instructional or research missions of the institution. Of all other sources of revenues (e.g. local appropriations, private gifts, grants and contracts), only revenues from the federal government exceeded 10 percent of current fund revenues. Among all institutions 12 percent of revenues were provided by the federal government, primarily in the form of restricted grants and contracts (excluding Pell grants).

In FY92, the pattern of revenues by source for 4-year institutions reflected quite closely the pattern of all institutions. For all 4-year institutions about 26 percent of current fund revenues came from tuition and fees, 21 percent from state appropriations, 26 percent from sales and services, and 13 percent were from the federal government. Among 4-year public institutions, about 17 percent of revenues came from tuition and fees, 35 percent from state appropriations, 27 percent from sales and services, and 12 percent from the federal government (table 7). For 4-year private institutions, 40 percent of revenues were derived from tuition and fees, less than 1 percent were from state appropriations, 24 percent were from sales and services, and 16 percent were from the federal government (table 7).

The pattern of revenues of public and private 2-year institutions differed somewhat from that of their 4-year counterparts. Among 2-year public institutions, almost 20 percent of revenues were from tuition and fees and 42 percent were from state appropriations. Additionally, local appropriations were an important source of revenues for public 2-year schools, accounting for 17 percent of their current fund revenues. For 2-year private institutions, more than two-thirds (68 percent) of current fund revenues were from tuition and fees. Sales and services were a relatively small source of revenues for both public and private 2-year institutions, while revenues from the federal government accounted for only 5 and 4 percent of public and private 2-year institutions' revenues, respectively (table 9).

Since FY84, among all institutions and in the public and private sectors as well, there have been some slight shifts in the relative percentage of current fund revenues accounted for by the various sources of revenues, with tuition and fees and sales and services accounting for a higher percentage of current fund revenues in FY92 than in FY84, and state appropriations accounting for a smaller percentage. The percentage of current fund revenues from federal sources has stayed about the same over this time period (tables 1, 3, and 5).

Changes in the amount of revenues from various sources between FY91 and FY92, and between FY84 and FY92 reflect these percentage shifts. In current dollars, current fund revenues increased 7.8 percent for all institutions between FY91 and FY92. In the same time period, revenues from tuition and fees and sales and services increased at a higher rate than current fund revenues, with tuition and fees revenues increasing 11 percent and revenues from sales and services increasing 10 percent. State appropriations, on the other hand, increased only 2 percent from FY91 to FY92. Over the period from FY84 to FY92, current fund revenues in current dollars increased 91 percent, as did revenues from federal sources. However, tuition and fee revenues and revenues from sales and service increased by 111 percent and 103 percent, respectively, while revenues from state appropriations increased only 56 percent during this 8 year period.

In constant FY92 dollars, current fund revenues increased about 4.5 percent between FY91 and FY92, an increase mirrored in both the public and private sectors. Tuition and fee revenues increased by almost 8 percent over all, about 11 percent in public institutions and over 5 percent in privates. Revenues from federal sources and sales and services also increased in this one year period, by about 5 and 7 percent, respectively. However, for public institutions, revenues from state sources decreased by almost 1 percent (table 20).

Since fiscal year 1984, increases in revenues from tuition and fees have exceeded the rate of inflation every year. The 7.6 percent increase between FY91 and FY92 was exceeded only once in the eight year period by an 8.8 percent increase between FY86 and FY87 (derived from table 20).

The 5 percent increase in federal sources of revenues averaged across all institutions had a somewhat uneven distribution between public and private institutions. Increases in federal revenues to public institutions averaged 7 percent in constant dollars between FY91 and FY92, while federal revenues to private institutions increased only 3.5 percent (derived from table 17).

State appropriations to public institutions did not keep pace with inflation in FY91 and continued to lose ground in FY92. These real declines in state appropriations followed annual increases in constant dollars from FY84 to FY90 (table 20). The apparent 3 percent increase in state appropriations between FY90 and FY91 and the 2.6 percent increase between FY91 and FY92 (in current dollars) (table 3) were, in terms of constant FY92 dollars, real decreases of 2.1 percent and 0.9 percent, respectively (derived from table 20).

EXPENDITURES

In fiscal year 1992, institutions of higher education expended approximately $156 billion. About 78 percent of expenditures were for education and general (E & G) expenditures, that is, expenditures that support the institution and its mission (table 2). For the purpose of this report, expenditure categories that support the mission of the institution include instruction, research and public service. Functions that support the institution (i.e., administrative expenditures) are considered to include academic support, institutional support, student services and operation and maintenance of plant. Scholarship and fellowship expenditures, while a part of E & G expenditures, are difficult to place as either supporting the institutional mission or the institution itself and are considered separately.

Instruction was the single largest expenditure category, accounting for almost 31 percent of current fund expenditures and almost 40 percent of E & G expenditures. Research accounted for about 9 percent of current fund expenditures and 12 percent of E & G expenditures, while public service accounted for only 3.5 percent of current fund expenditures and 4.5 percent of E & G expenditures. Together these three expenditure categories made up more than half of total E & G expenditures in FY92 (table 2).

Of the administrative expenditures, institutional support had the highest level of expenditures accounting for over 9 percent of current fund expenditures and 12 percent of E & G expenditures; academic support and operations and maintenance each accounted for almost 7 percent of total and almost 9 percent of E & G expenditures, while student services accounted for less than 5 percent of current fund expenditures. Together these support functions accounted for almost 28 percent of current fund expenditures and more than 35 percent of E & G expenditures. Expenditures on scholarships and fellowships were almost 6 percent of total institutional expenditures and 7.5 percent of E & G expenditures (table 2).

Public institutions tended to allocate more of current fund expenditures to E & G expenditures than did privates (derived from tables 4 and 6). Among 4-year public institutions, expenditures supporting the institutional mission were over 47 percent of current fund expenditures and 62 percent of E & G expenditures. Among 4-year privates slightly over 36 percent of total and 49 percent of E & G expenditures were allocated to instruction, research and public service. Public 4-year institutions allocated a higher percentage of current fund expenditures to each of these three categories than did privates (table 8).

Private 4-year institutions, on the other hand, allocated slightly more of current fund expenditures to administrative support functions than did public 4-year institutions, although not each support expenditure category had a higher share of current fund expenditures in private institutions than in public. For example, 4-year private institutions spent about 10 percent of current fund expenditures on institutional support compared with about 7 percent for 4-year publics. Four-year public institutions, however, spent over 7 percent of current fund expenditures on academic support compared to privates' less than 6 percent. Additionally, 4-year private institutions allocated a substantially higher percentage of current fund expenditures to scholarships and grants (10 percent of total) than did 4-year publics (3 percent of total) (table 8).

In both public and private 2-year institutions, E & G expenditures constituted about 92 percent of their current fund expenditures, although the patterns of their expenditures were quite different. Whereas 2-year public institutions expended almost 47 percent of current fund expenditures on instruction, private 2-year institutions spent slightly less than 29 percent on this function. Among administrative support categories, 2-year privates spent over 20 percent of current fund expenditures on institutional support compared with the 14 percent spent by publics. Privates also expended slightly more of current fund expenditures on student services and operations and maintenance of plant than did publics, although both public and private 2-year institutions spent about 8 percent of their current fund expenditures on academic support. Additionally, as with 4-year institutions, private 2-year institutions allocated substantially more to scholarships and fellowships than did public 2-year schools, 11 percent of current fund expenditures to 3 percent (table 10).

From FY91 to FY92 expenditures in current dollars increased by 7 percent in all institutions, the smallest one-year current dollar increase in current fund expenditures since 1985. Total E & G expenditures increased during this same period by 6.5 percent. Of the institutional mission expenditure categories, only expenditures for public service increased at a higher rate (8 percent) than total E & G. Among institutional support expenditure categories, only student services increased at a higher rate (6.9 percent) than total E & G. The 20 percent increase in expenditures for scholarships and grants (excluding Pell grants) was, by far, the largest increase of all E & G expenditure categories. The smallest one year increase in expenditures was the 2.8 percent increase for operations and maintenance of plant (table 2).

In FY92, expenditures for almost all categories exceeded the rate of inflation. In constant FY92 dollars, total E & G expenditures increased by over 3 percent, due primarily to increased expenditures for scholarships and grants. These increased in real terms by over 16 percent between FY91 and FY92. Of all other expenditure categories, only expenditures for public service and student services exceeded the rate of increase in total E & G expenditures. Expenditures on public service increased almost 5 percent and expenditures on student services increased almost 4 percent (table 21).

Public and private institutions differed somewhat in rates of change in expenditures by category. Overall, for example, private institutions increased total E & G expenditures by almost 5 percent in constant FY92 dollars between FY91 and FY92, while publics increased them by a little over 2 percent. Similarly, private institutions increased spending on instruction by over 4 percent between FY91 and FY92, while public institutions increased instructional expenditures by only a little over 1 percent. Notably, both public and private institutions had large increases in expenditures on scholarships and fellowships in this one year period, increasing in public institutions by over 17 percent and in private institutions by almost 16 percent.

In comparing changes in expenditures over the period from FY84 to FY92 between public and private institutions, it is possible to catch a glimpse of the relative priorities that institutions place on the various institutional functions. For example, of the institutional mission expenditure categories, and, in constant dollars, private institutions increased expenditures on instruction and public service at a higher rate than public institutions. Public institutions, on the other hand, had a higher rate of increase on expenditures for research. Among the administrative support categories, private institutions had higher percentage changes than public institutions for most of these categories over the 8 year period between FY84 and FY92, except for expenditures on academic support which had about an equal rate of change in both public and private institutions.

REVENUES AND EXPENDITURES COMPARED

While the IPEDS finance survey is not intended as a balance sheet, it is of interest to compare institutional revenues with institutional expenditures and their relative changes since FY91. In fiscal year 1991, current fund expenditures were 98 percent of current fund revenues; in fiscal year 1992, current fund expenditures were 97 percent of current fund revenues. Between FY91 and FY92, current fund revenues increased 7.7 percent for public institutions while current fund expenditures increased 6.3 percent (derived from table 16). For private institutions, current fund revenues increased 8.0 percent while current fund expenditures increased 8.0 percent (derived from table 17). In constant dollars, current fund revenues of public institutions increased 4.4 percent and current fund expenditures increased 3.0 percent (derived from tables 20 and 21); current fund revenues of private institutions increased 4.6 percent and current fund expenditures increased 5.0 percent (derived from tables 20 and 21).

SUMMARY

In examining finance data from FY91 to FY92 and over time since FY84, three important themes become evident. First, tuition and fees are an increasingly important revenue source for both public and private institutions, with revenues from tuition and fees increasing almost 8 percent overall in constant dollars in just the one-year period from FY91 to FY92 with increases in public institutions about 11 percent and increases in private institutions of over 5 percent.

Second, state appropriations, a negligible revenue source for private institutions but a critical source for publics started to decline, in constant dollars, between FY90 and FY91 and continued that decline between FY91 and FY92, with decreases of 2.1 percent and 1.0 percent in constant FY92 dollars between FY90 and FY91 and FY91 and FY92, respectively.

Third, expenditures for scholarships and fellowships are consuming an increasingly larger share of institutional expenditures for both public and private institutions. They were almost 6 percent of current fund expenditures over all institutions and 7.5 percent of E & G expenditures in FY92. As might be expected, this share was substantially higher for private institutions than for publics: 4-year and 2-year private institutions allocated 10 and 11 percent of current fund expenditures to scholarships and fellowships while public 4-year and 2-year institutions allocated about 3 percent. Additionally, in the period between FY91 and FY92 there was a 20 percent increase in expenditures for scholarships and fellowships (excluding Pell grants) and this was, by far, the largest one-year increase of all E & G expenditure categories. In constant FY92 dollars, the 20 percent current dollar increase translates into increases in public institutions of over 17 percent and increases in private institutions of almost 16 percent.

GLOSSARY

Academic Support (expenditures). Expenditures for the support services that are an integral part of the institution's primary mission of instruction, research, or public service. Includes expenditures for museums, galleries, audiovisual services, academic computing support, ancillary support, academic administration, personnel development, and course and curriculum development. Also includes expenditures for veterinary and dental clinics if their primary purpose is to support the institutional program. Excludes expenditures for libraries. [Note: This definition is an operational definition used in this and all previous editions of SHEP and may not be consistent with the terms used in the 1987 IPEDS glossary.]

Auxiliary Enterprise Expenditures. Costs incurred for goods and services used to operate those essentially self-supporting operations of the institution that exist to furnish a service to students, faculty or staff and that charge a fee that is related to the cost of the service, although not necessarily equal to the cost of the service.

Auxiliary Enterprise Revenues. Revenues generated by or collected from the auxiliary enterprise operations of the institution that exist to furnish a service to students, faculty or staff and that charge a fee that is related to the cost of the service, although not necessarily equal to the cost of the service.

Control of Institution. Includes public, private nonprofit, and private for-profit institutions.

Current Funds Expenditures. The costs incurred for goods and services used in the conduct of the institution's operations. They include the acquisition cost of capital assets, such as equipment and library books, to the extent current funds are budgeted for and used by operating departments for such purposes.

Current Funds Revenues. Includes all unrestricted revenues earned during the reporting period as well as restricted revenues to the extent that such funds were expended for current operating purposes. They do not include restricted current funds received but not expended because these revenues have not been earned.

Educational and General (E&G) Expenditures. Educational and general expenditures include current fund expenditures for instruction, research, public service, academic support, student services, institutional support, operation and maintenance of plant, scholarships and fellowships, and educational and general mandatory transfers. Educational and general expenditures exclude expenditures for auxiliary enterprises, hospitals, and independent operations. Pell Grants are excluded.

Educational and General (E&G) Revenues. Consists of current fund revenues from federal, state, and local appropriations; tuition income; government grants and contracts; private gifts, grants, and endowment income; sales and services of educational activities; and other revenues. Excluded from E&G revenues are income from sales and services of auxiliary enterprises, sales and services of hospitals, independent operations, and revenues for capital purposes. E&G funds include only those funds intended for operating purposes. Pell Grants are excluded.

Endowment Income (revenues). Includes the unrestricted income of endowment and similar funds; restricted income of endowment and similar funds to the extent expended for current operating purposes; and income from funds held in trust by others under irrevocable trusts. Does not include capital gains or losses. Such gains when spent for current operations are treated as transfers, not revenues.

Federal Appropriations (revenues). Includes dollars appropriated or made available by the federal government to public or private institutions of higher education for current operating expenses and not for specific projects or programs. Examples are federal land-grant appropriations and federal revenue sharing funds. Federal appropriations received through state channels are included in the total for federal appropriations. Federal grants and contracts are excluded.

Federal Grants and Contracts (revenues). Includes revenues from federal agencies that are for specific research projects or other types of programs such as administrative allowances for student aid. Examples are research projects, training programs, and similar activities for which amounts are received or expenditures are reimbursable under the terms of a government grant or contract. Includes indirect costs recovered. Pell Grants awarded to student are excluded, although the administration allowance for Pell Grants are included.

4-Year-and-Above Institution. Any institution whose highest degree awarded in the fiscal year for which data are being reported was a baccalaureate or higher.

Institutional Support (expenditures). Expenditures for the day-to-day operational support of the institution. Includes expenditures for general administrative services, executive direction and planning, legal and fiscal operations, and public relations/development. Excludes expenditures for physical plant operations.

Instruction (expenditures). Expenditures of the colleges, schools, departments, and other instructional divisions of the institution and expenditures for departmental research and public service that are not separately budgeted. Includes expenditures for credit and noncredit activities. Excludes expenditures for academic administration where the primary function is administration (e.g., academic deans). This category also includes general academic instruction, occupational and vocational instruction, special session instruction, community education, preparatory and adult basic education, and remedial and tutorial instruction conducted by the teaching faculty for the institution's students.

Level of Institution. A classification of an institution based on the highest degree certificate or diploma awarded during the fiscal year for which data are being reported.

Libraries (expenditures). Expenditures for all print material, microfilm, microfiche, audiovisual materials such as records and films, and computer software. Excludes expenditures for hardware of any kind (e.g., computer terminals, microfiche readers, record players, and projectors).

Operation and Maintenance of Plant (expenditures). Expenditures for operations established to provide service and maintenance related to campus grounds and facilities used for educational and general purposes.

Other Sources (revenues). Includes sales and services of educational activities and revenues derived from the sales of goods or services that are incidental to the conduct of instruction, research, or public service. Examples include film rentals, scientific and literary publications, testing services, university presses, and dairy products. Also includes all items or revenues not covered elsewhere. Examples are interest income and gains (net of losses) from investments of unrestricted current funds. Includes revenues resulting from the sales and services of internal service departments to persons or agencies external to the institution (e.g., the sale of computer time).

Pell Grant Expenditures. Expenditures for scholarships and fellowships funded by Pell Grants. Pell Grants are a type of federal student financial aid that provides eligible undergraduate students with need-based grants to help them defray the cost of postsecondary education. (Public Law 92-318, as amended, Public Law 94-482, Education Amendments of 1972, Title IV; 20 USC 107a-1976.)

Private Gifts, Grants, and Contracts (revenues). Revenues from private donors for which no legal consideration is involved and from private contracts for specific goods and services provided to the funder as stipulation for receipt of the funds. Includes only those gifts, grants, and contracts that are directly related to instruction, research, public service, or other institutional purposes. Includes monies received as a result of gifts, grants, or contracts from a foreign government. Also includes the estimated dollar amount of contributed services.

Private For-Profit Institution. An educational institution that is under private control and whose profits, derived from revenues, are subject to taxation.

Private Nonprofit Institution. An educational institution which is controlled by an individual or by an agency other than a state, subdivision of a state, or the federal government, which is usually supported primarily by other than public funds, and the operation of whose program rests with other than publicly elected or appointed officials.

Private Institution. Includes both private for-profit and private nonprofit institutions, unless otherwise noted.

Public Service (expenditures). Funds budgeted specifically for public service and expended for activities established primarily to provide noninstructional services beneficial to groups external to the institution. Examples are seminars and projects provided to particular sectors of the community, and expenditures for community services and cooperative extension services.

Public Institution. Includes all educational institutions under the control of or affiliated with federal, state, local, or state-related agencies.

Research (expenditures). Funds expended for activities specifically organized to produce research outcomes and commissioned by an agency either external to the institution or separately budgeted by an organizational unit within the institution.

Restricted Educational and General (E&G) Revenues. Those funds available for financing operations but which are limited by donors and other external agencies to specific purposes, programs, departments, or schools. Externally imposed restrictions are to be contrasted with internal designations imposed by the governing board on unrestricted funds.

Scholarships and Fellowships (expenditures). Expenditures given in the form of outright grants and trainee stipends to individuals enrolled in formal coursework, either for credit or not. Excludes Pell Grants. Includes aid to students in the form of tuition or fee remissions. Excludes those remissions that are granted because of faculty or staff status. Also excludes College work-study program expenses.

Institutional. Expenditures for scholarships and fellowships from revenues generated by the institution such as tuition and fees revenues, endowment income, sales and services of educational activities, and other sources.
Other Federal. Expenditures for scholarships and fellowships, excluding Pell Grants, received from federal government agencies.
Private. Expenditures for scholarships and fellowships received from private sources such as businesses, foundations, individuals, and foreign governments.
State and Local. Expenditures for scholarships and fellowships provided by state and local governments.

State and Local Appropriations (revenues). Dollars appropriated or made available by state and local governments to public or private postsecondary institutions for current operating expenses and not for specific projects or programs. Grants and contracts are excluded. Charges for room, board, and other services rendered by auxiliary enterprises are not included here.

State and Local Grants and Contracts (revenues). Includes revenues from state and local government agencies which are for specific research projects or other types of programs such as student aid. Examples are research projects, training programs, and similar activities for which amounts are received or expenditures are reimbursable under the terms of a government grant or contract. Includes indirect costs recovered.

Student Services (expenditures). Funds expended for admissions, registrar activities, and activities whose primary purpose is to contribute to students' emotional and physical well-being and to their intellectual, cultural, and social development outside the context of the formal instructional program. Examples are career guidance, counseling, financial aid administration, and student health services (except when operated as a self-supporting auxiliary enterprise).

Tuition and Fees (revenues). Charges assessed against students for educational purposes. Includes tuition and fee remissions or exemptions even though there is no intention of collecting from the student. Includes tuition and fees that are remitted to the state as an offset to the state appropriation. Excludes charges for room, board, and other services rendered by auxiliary enterprises.

2-Year Institution. Any institution whose highest degree awarded during the fiscal year for which data are being reported was an associate's degree, or a certificate, or diploma in a program of at least 2 but less than 4 years in length.

SURVEY METHODOLOGY

OVERVIEW

The FY92 data on financial characteristics of higher education institutions are from the "Finance" and "Consolidated" surveys that are conducted annually by the NCES. These surveys are part of (IPEDS), which has replaced the Higher Education General Information Survey (HEGIS). The financial data in this report represent higher education institutions in the 50 states and the District of Columbia and the outlying areas.

Financial data for institutions of higher education, that is, those institutions that are accredited at the higher education level by an agency recognized by the Secretary of Education, were previously collected by the HEGIS Financial Characteristics of Higher Education Institutions survey, in operation from fiscal year 1966 through fiscal year 1986. The Federal Interagency Committee on Education (FICE) code that permits the identification of the higher education universe is contained on the file.

UNIVERSE OF INSTITUTIONS IN SURVEY

The universe of postsecondary education institutions is determined by the IPEDS "Institutional Characteristics" (IC) survey conducted annually by NCES. Using the IC master list of institutions, the "Finance" (F) survey was mailed to 4,110 postsecondary institutions and the "Consolidated" (CN) survey, that collected a limited amount of financial data, was mailed to 3,373 institutions. Therefore, a total of 7,483 institutions received a survey (F or CN) which collected financial data. This report contains data only for institutions recognized by the Secretary of Education as accredited at the higher education level in the 50 states and the District of Columbia (3,654 institutions).

RESPONSE RATES BY LEVEL AND CONTROL FOR HIGHER EDUCATION INSTITUTIONS

Table A shows the number of higher education institutions in sectors 0 through 9 that received a survey form in the 50 states and the District of Columbia by level and control of the institution. The unit response rates were calculated as the ratio of the number of institutions responding to the survey divided by the number of institutions receiving the survey form.

     Table A.--FY 1992 survey response rates for institutions of higher
              education by sector:  50 states and the District of Columbia.
                                Final    Number     Response  
            Sector              universe responded  rate
                           
            Total               3,654     3,196     87.5
                              
       0 -  Central office         43        43    100.0
                               
       1 -  4-year, public        600       589     98.2
       2 -  4-year, nonprofit   1,487     1,314     88.4
       3 -  4-year, for-profit     75        36     48.0
       4 -  2-year, public      1,018       950     93.3
       5 -  2-year, nonprofit     173       122     70.5
       6 -  2-year, for-profit    237       137     57.8
       
       8 -  less-than-2-year
            nonprofit               1         1    100.0
       9 -  less-than-2-year
            for-profit             20         4     20.0

MAILOUT AND FOLLOWUP PROCEDURES

The survey forms were mailed out in July 1992 and the survey results were collected from November 1992 through April 1993.

Followup for survey nonresponse began in December 1992 by telephone and letter. These institutions were asked to provide current funds revenues and expenditures by major category (e.g., tuition and fees, instruction, scholarships and fellowships), or at least total current funds revenues and expenditures (if contacted by telephone).

EDITING PROCEDURES

For schools reporting detail in current funds revenues (part A) and expenditures data (current funds expenditures, part B, and expenditures on scholarships and grants, part E), the following editing procedures were used:

(1) The unrestricted and restricted columns of current funds revenues and expenditures were totaled for each line. The generated totals of each line were compared to reported totals.
(2) Generated totals replaced reported totals if differences were within ranges set in the error resolution guidelines. If differences between generated and reported totals were outside these ranges, the line was flagged as an error.
(3) Consistency checks for all parts were performed.
(4) Telephone calls were made to check data inconsistencies if these fell outside of the error resolution guidelines. For example, if the difference between reported totals and generated totals exceeded ranges set by the guidelines, the institutions were called; if not, generated totals replaced reported totals.

IMPUTATION PROCEDURES

(1) Imputations for nonrespondents to the FY92 "Finance" survey, who had previously responded to the FY87, FY88, FY89 FY90 or FY91 "Finance" surveys, were based on the most recent data reported by these institutions in those years. Institutions were grouped by control and the highest degree granted in FY92. Private for profit 4-year institutions were combined with private nonprofit 4-year institutions and private for-profit 2-year and less than 2-year schools were combined into one group regardless of the highest degree granted. Total current funds revenues per FTE was calculated for FY92 and for the previous years for each group. A rate of change from previous year to current year was calculated for total current funds revenues per FTE student for each group and was applied to the nonrespondent's previously reported part A data. For parts B and E, the rate of change was calculated for responding institutions from total educational and general expenditures and transfers per FTE and applied to the most recent prior year data of nonresponding institutions for all of parts B and E. Full-time equivalent enrollment (FTE) was computed from Fall enrollment data of the corresponding fiscal year.

(2) For institutions that did not respond to any of the six survey years (FY87 through FY92), a hot deck strategy was used: Institutions completing the F form were sorted into hot deck groups formed as a combination of control, religious affiliation highest degree granted, geographic region, state (if public), and presence of a medical (M.D., D.D.S., D.V.M., O.D. degree) or medical-related (chiropractic, optometric, or podiatric) school. A donor school was selected from the same hot deck group as the non- responding institution. Fall enrollment data from 1991 were used to compute a full-time equivalent (FTE) enrollment figure for both the nonresponding institution and its matched institution. The ratio of the FTE of the recipient institution over the FTE of the donor institution was computed. The resulting factor was multiplied by the donor institution's actual value for those items which enrollment directly affects: tuition and fees, government appropriations, grants and contracts, sales and service of educational activities, instruction, student services and scholarship and fellowship expenditures. All other items for the recipient's record were taken without adjustment from the donor record. This process was repeated for every data item in parts A, B and E.

(3) Schools that returned finance data on the CN form or were contacted via PETS (Postsecondary Education Telephone System) supplied data in a few fields as follows:

              Variable name  Description
                    A013           Tuition and fees
                                       Other sources
                    A163           Total revenues
                    B013           Instruction
                    B093           Scholarships, fellowships
                                       Other expenditures
                    B223           Total expenditures

Data in tuition and fees (A013), total revenues (A163), instruction (B013), scholarships and fellowships (B093) and total expenditures (B223) were used as reported. Data in "other sources" and "other expenditures" were distributed to all other fields in parts A, B and E on the "Finance" form, based on the average percentage distribution for institutions in the same groups (described in 2). For example, 2-year public institutions were distributed according to the average percentage distribution of all public 2-year institutions.

(4) Item nonresponse imputations were performed by distributing total columns to restricted and unrestricted based on the average distribution of schools in the non-respondents imputation class. If an institution reported academic support but did not report library expenditures, expenditure data from the IPEDS "Academic Library" survey were used to determine library expenditures in FY92. For salary expenditures (part B column 4, lines 1 through 8) group ratios of salary expenditures to total salary expenditures for each expenditure category were calculated and applied to reported total salary expenditures (Part B column 4 line 23).

Two-hundred-sixty institutions were imputed using previously reported finance data. 152 institutions were imputed using method (2) above. 68 institutions were not imputed. These are institutions that have never reported to the finance survey so using the prior year method was not possible and they are sufficiently unique institutions, such as rabbinical institutions, so that forming proper imputation classes with a reasonable number of donors was also not possible. Community College of the Air Force was also not imputed for the same reason. Only parts A, B and E of the finance survey form were imputed for nonresponding institutions. For all parts except parts C (clarifying questions) and I (expendable fund balances) individual items were imputed.

ACKNOWLEDGMENTS

The authors appreciate the reviewers of this report: Vance Grant, Office of the Assistant Secretary for Educational Research and Improvement; Hans Jenny, National Association of College and University Business Officer; Carol Fuller, National Institute of Independent Colleges and Universities; John Minter, John Minter Associates; Thomas Snyder, Steven Broughman, Michael Cohen, and Susan Ahmed, .