How are campuses being held accountable for the funds they currently receive?
Each institution’s board of trustees is accountable for how money received by the institution is spent. The Board of Regents evaluates each institution’s financial health using a standardized method modeled by Klynveld, Peat, Marwick and Goerdeler (KPMG) accounting firm. Three financial ratios and acceptable threshold ranges for each ratio are used to gauge an institution’s financial condition. A significant proportion of campus appropriations is performance-based. The largest portion of state funds, the State Share of Instruction, is based on statewide average costs, and campuses have an incentive to keep costs low.
