2 UTSA has developed a process to systematically review all fees to: 1. 1.Analyze expenditures and transfers to ensure appropriate use consistent with the fee justification and Texas Ed. Code Evaluate balances at year end & establish appropriate reserve set-asides for future usage Confirm fee rate is based on budgeted requirements and approved reserves Document spending plans for fee balances in excess of allowed limits. UTSA has developed a process to systematically review all fees to: 1. 1.Analyze expenditures and transfers to ensure appropriate use consistent with the fee justification and Texas Ed. Code Evaluate balances at year end & establish appropriate reserve set-asides for future usage Confirm fee rate is based on budgeted requirements and approved reserves Document spending plans for fee balances in excess of allowed limits. Analyze expenditures and transfers Evaluate reserves Validate fee rate Document spending plan

3 Fee process is published in a Financial Administration guideline: /1.2.html See specifically Section H. Fee process is published in a Financial Administration guideline: /1.2.html See specifically Section H.

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5 Expenditures and transfers from fee related revenues must meet: Texas Education Code regulations Fee justification guidelines Expenditures and transfers from fee related revenues must meet: Texas Education Code regulations Fee justification guidelines

6 a set of statutes governing public education. Example: Sec International Education Fee a) The governing board of an institution of higher education, other than The University of Texas at Austin, may charge and collect from students registered at the institution a fee in an amount not less than $1 and not more than $4 for each semester or summer session. The amount of the fee may be increased only if the increase is approved by a majority vote of the students at the institution participating in an election called for that purpose. (b) Fees collected under this section shall be deposited in the institution's international education financial aid fund, a fund outside the state treasury. Money in the fund may be used only to assist students participating in international student exchange or study programs. (c) The international education financial aid fund shall be used in accordance with guidelines jointly developed by the student governing body of the institution and the administration of the institution. If an institution does not have a student governing body, the president may appoint a committee of students to assist with the development of the guidelines. (d) The fee imposed under this section may not be considered in determining the maximum student services fee that may be charged students enrolled at the institution under Section (b) of this code. a set of statutes governing public education. Example: Sec International Education Fee a) The governing board of an institution of higher education, other than The University of Texas at Austin, may charge and collect from students registered at the institution a fee in an amount not less than $1 and not more than $4 for each semester or summer session. The amount of the fee may be increased only if the increase is approved by a majority vote of the students at the institution participating in an election called for that purpose. (b) Fees collected under this section shall be deposited in the institution's international education financial aid fund, a fund outside the state treasury. Money in the fund may be used only to assist students participating in international student exchange or study programs. (c) The international education financial aid fund shall be used in accordance with guidelines jointly developed by the student governing body of the institution and the administration of the institution. If an institution does not have a student governing body, the president may appoint a committee of students to assist with the development of the guidelines. (d) The fee imposed under this section may not be considered in determining the maximum student services fee that may be charged students enrolled at the institution under Section (b) of this code.

7 Fee Justifications describe the intended use of the fee; for most fees this was provided when the fee was first approved. Narrative is normally generic; however, proposed expenditures are implied to be part of the ‘justified’ usage. Our process allows for a zero base budget to be reviewed vis-à-vis the current fee justification. Example: Identification Card Fee To defray costs of producing and distributing student ID cards Fee Justifications describe the intended use of the fee; for most fees this was provided when the fee was first approved. Narrative is normally generic; however, proposed expenditures are implied to be part of the ‘justified’ usage. Our process allows for a zero base budget to be reviewed vis-à-vis the current fee justification. Example: Identification Card Fee To defray costs of producing and distributing student ID cards

8 Samples of expenditures were reviewed and found to be in compliance, however there were a few recommendations: Texas Education Code for the University Center fee should be revised to specifically include student activities and programs. Currently, the code states these funds should be used “for the sole purpose of financing, operating, maintaining, and improving a student union building.” When the fee is to be specifically used for facility renovations, this should be included in the fee justification and normally a result of retained earnings at fiscal year end. Samples of expenditures were reviewed and found to be in compliance, however there were a few recommendations: Texas Education Code for the University Center fee should be revised to specifically include student activities and programs. Currently, the code states these funds should be used “for the sole purpose of financing, operating, maintaining, and improving a student union building.” When the fee is to be specifically used for facility renovations, this should be included in the fee justification and normally a result of retained earnings at fiscal year end.

9 Reserves are funds set aside for approved future uses consistent with UTSA guidelines to promote efficient and effective operations and help avoid significant fluctuations in the fees charged for services.

10 Computers, exercise equipment, furniture Equipment Replacement Remodel existing facilities Renovations Roof repairs and maintenance that has been put off versus done on a regular basis Deferred Maintenance One time costs required to start up a new programs or expand an existing one Planned Future Operations Hedge against enrollment fluctuations Revenue Fluctuation To contribute to university risk pool deductibles (when applicable) Insurance Deductible

11 Examples of approved reserves: Project / PurposeTotal Cost Estimated Date of Need Amount to set- aside per year Recreational Center Fee To replace carpet in lounges$30,000FY12$7,500 University Center FeeTo replace exterior furniture- UC I$50,000FY13$16,500 Library Services FeeTo replace Desktop Computers & Printers over a 3 – 7 year refresh period $850,000 (asset value) Each Yr Oldest Machines are refreshed $170,000

12 Budgeted Expenditures (consistent with justification) Net Addition to Reserves Fee Rate $ Projected Enrollment

13 $1,000,000 Budgeted Expenditures $250,000 ‘Required’ Addition to Reserves $2 / SCH with no min or no max 665,000 Total Semester Credit Hours for the Year Some equipment replacement or facility repair/renovation to be covered from reserves may need to be delayed to balance the budget and or avoid fee rate increases.

14 Assure that the fee rates are cost justified Provide transparency Verify fees are spent in accordance with applicable laws and policies Audit compliance Assure that the fee rates are cost justified Provide transparency Verify fees are spent in accordance with applicable laws and policies Audit compliance

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