Program Audit To Guide School Budgets

(from the Chronicle of Higher Education) In response to financial challenges, colleges often focus on cutting costs, perhaps putting certain programs on the chopping block. Campus leaders are less likely to examine the core of what they do — particularly to analyze their academic offerings as a whole, says Richard Staisloff, a former chief financial officer at a small college who is now a consultant. “Academic programs should be considered as a portfolio, not merely a collection of program offerings,” he says. The portfolio concept lets colleges see the finances of individual programs, as well as how they fit within the institution, including their contributions to enrollment and student success. Each program should be evaluated in terms of mission (the specialties of the institution), market (what students want) and margin (generating revenue to support the mission). Here are three crucial steps.

• Scrutinize student yield and progress. A program with few applicants and high yield may simply need better marketing and recruitment. A program with many applicants and low yield could redesign courses to better capitalize on interest.
• Measure efficiency and productivity. An evaluation should examine such factors as the mix of courses, number of sections, class size, fill rate and faculty course-release time.
• Take a hard look at administration. Any portfolio review should consider administrative services and how they can be delivered more cost effectively.