How Do You Stack Up?

Transcription

1 How Do You Stack Up? Charles Tegen Associate Vice President for Finance Clemson University 2014 Managerial Analysis and Decision Support Charlotte, North Carolina November 13, 2014 Session Outline Benchmarking Comparison to peers Peer data sources IPEDS Integrated Postsecondary Education Data System Moody s Metrics NACUBO Research Other sources of peer data 1

2 Comparison of an institution s data or processes to others Comparison typically made with similar organizations or with those considered an example of best practice Institutions have unique characteristics Mission Curriculum Communities Organizational climate Benchmarking Peer Comparison Creating a Comparison Group This is not a task to do by yourself Buy in required from key administrators Should be a participatory process Representation from other campus stakeholders Issues to consider Role of data Role of statistical analysis Role of judgment Peers and urban legends 2

3 Most Common Comparison Groups Peer this group is usually similar in scope or mission. The key here is similar, not identical. Competitor institutions with which the home institution competes for resources; e.g., financial, students, research, faculty, etc. Aspirant this is a group of institutions that may or may not be similar to the home institution in mission or control (i.e., public or private), but which possesses attributes or reflects qualities that the home institution wishes to posses as well. Most Common Comparison Groups Predetermined often grouped with these attributes: Jurisdictional shares geography, political or legal jurisdiction. Could even be a separate group based on athletic conference. Classification based generally uses the Carnegie Classification. The Carnegie Foundation has classified 4,634 institutions into 33 different classifications. For example, there are 108 universities in the Research Universities/Very High research (RU/VH) category, 73 under public and 35 private, not for profit. Traditional this group shares some common, historical relationship. 3

4 How many Institutions? Peer Comparisons? Smaller number is usually better. The number of institutions depends on the purpose of the comparative analysis and the nature of the institution. We usually rely on institutions, which has worked well. Should we have only one list or several? Consider having several lists depending on the purpose of the comparison. A benchmarking analysis of a full time MBA program uses different peer institutions than a doctoral engineering analysis; athletics department will use yet another list. Peer Group Caveats Beware of hidden agendas Beware of internal politics at every level that have the potential to cloud the issues and influence the peer group selection 4

5 Key Benchmarking Measurement Indicators Key Performance Indicators Magnitudes Ratios Percentages How many? How much? May not be appropriate for comparing heterogeneous institutions. Relative measures. How many per XYZ? More appropriate for comparing heterogeneous institutions. Relative measures. Appropriate when comparing to a group or category of variables What is IPEDS? Integrated Postsecondary Education Data System A system of survey components Collects data from postsecondary education providers in several areas Interrelated components collect institution level data Mandatory for all institutions that have a Program Participation Agreement (PPA) Voluntary for all non PPA institutions 5

6 Postsecondary Education Provider Postsecondary provider determined by highest degree awarded Baccalaureate or higher institutions 2 year award institutions Less than 2 year institutions IPEDS excludes providers like military bases, corporations, prison instruction, test preparation services and high schools with vocational programs. IPEDS Universe Title IV eligible institutions = 6,896 Reporting is mandatory 2,853 are 4 yr; 2,259 are 2 yr; 1,784 are <2 yr 2,015 are public; 1,865 are not for profit; 3,016 are forprofit ~2/3 are degree granting Not Title IV eligible Reporting is not mandatory 186 submitted at least one survey 6

7 Collect data describing universe of postsecondary education institutions Maintain statistics on enrolled students, migration, retention, graduation rates, financial aid, student demographics Monitor institutional revenues, expenses, costs Provide planners and policy makers with statistics for planning and decision making Peer analysis/benchmarking Why does IPEDS exist? How does IPEDS get the data? From institutional contacts and state coordinators Institutional Research coordinates with key areas of your institution State Education Agencies (SEA) A Key holder is assigned at each Title IV postsecondary institution 3 cycles per year fall, winter, spring 9 interrelated surveys fit to provide institutional information 7

8 IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle IC Institutional Characteristics: Directory information, admissions, tuition and pricing; questions that determine other components (IC Header) IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle EF IC Fall Enrollment: Student counts by level, R/E/G, age, migration; retention rates 8

9 IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle EF IC E12 12 month Enrollment: Unduplicated headcount, instructional activity IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle EF IC E12 C Completions: Degrees and certificates awarded 9

10 IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle EF IC E12 C GRS Graduation Rates: Students graduating within 150% of normal time IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle EF IC GR200 E12 C GRS 200% Grad Rates: Students graduating within 200% of normal time 10

11 IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle SFA EF IC GR200 E12 C GRS Student Financial Aid: Number of students receiving aid and average amount, by type of aid; net price IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle HR EF IC E12 C Human Resources: Instructional staff and other employees, by position, R/E/G, salary SFA GR200 GRS 11

12 IPEDS IPEDS is a series of 9 interrelated survey components that fit together like a puzzle F HR SFA EF IC GR200 E12 C GRS Finance: Institutional revenues, expenses, net assets/ financial position Fall Collection Institutional Characteristics Key Information who, what, where, why Control or affiliation; mission statement Admissions criteria; award level of degrees offered Student charges: tuition and fees/cost of attendance Degree Completions By major By race/ethnicity and gender By level 12 Month Enrollment Unduplicated headcount for entire year by level, gender, race/ethnicity Credit hours or contact hours FTE calculation used to compute revenue per FTE; expenses per FTE 12

13 Human Resources Fall staff # of FT faculty by contract length and salary class intervals # of FT non-faculty by primary occupational activity and salary class intervals Tenure of FT faculty by academic rank Salaries Rank, gender, and length of contract Total salary outlay Fringe benefits information Employees by Assigned Position (medical schools required to report separately) FT and PT status Faculty status and tenure status (if applicable) Student Financial Aid Winter Collection State, federal, and institutional grants Spring Collection Fall Enrollment By gender, race/ethnicity, level, residency, cohort (first time, full time data) Finance Revenues by source (e.g., tuition and fees, government grants and contracts, private gifts) Expenses by function (e.g., instruction, research, academic support, institutional support) Physical plant assets and indebtedness Endowment investments Graduation Rates 4, 5 and 6 year rate by gender, race/ethnicity, athletes Graduation Rates 200% 13

14 How Can You Use IPEDS? Data reported by your institution is available from nearly all postsecondary institutions Peer comparison lookup data for one peer or download data for several peer institutions Use the comparison group established by your Key holder, or easily create your own peer group Ability to calculate your own variables and trend analysis IPEDS Data IPEDS Data Center The Data Center is a single access point for retrieving IPEDS data, whether looking up an institution, doing peer comparisons, or creating your own dataset. Data Feedback Reports (DFRs) Institution College Navigator Students, parents and public 14

15 National Center for Educational Statistics - Are Surprises Possible? 15

16 Using IPEDS? Peer price comparison analysis Peer costs analysis Faculty salary analysis Productivity analysis e.g., PhD degrees awarded per faculty for all peers within your Carnegie Classification KPI Key Performance Indicators dashboard 16

17 IPED Moody s Investors Service 17

18 Reports College Affordability and Transparency Center Types Highest / Lowest Tuition Change Highest / Lowest Net Price Change Price of attendance after grant and scholarship aid Can choose by institutional sector Based on Fall 2012 Institutional Characteristics and Spring 2013 Financial Aid Reporting 18

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20 Moody s Investors Service Bond credit ratings 226 four year public institutions 287 four year private institutions Provides median values by rating category Aaa, Aa1, Aa2, Aa3 A1, A2, A3 Baa1, Baa2, Baa3, SG 20

21 Moody s Investors Service Annually - issues a median report for Public and Private Universities Themes in FY 2013 Public Median Report Decreasing enrollment Net tuition pressures Operating pressures cash flow Capital spending Financial resources (total) growing Moody s Investors Service Provides medians on data, changes and ratios Market Position - operating revenue, primary selectivity, primary matriculation, net tuition per student, average gift per student Operating Performance operating cash flow margin, average debt service coverage, revenue diversity Balance Sheet and Capital Investment total cash and investment, expendable financial resources to direct debt, expendable financial resources to operations, dent to operating revenues, monthly cash on hand, monthly liquidity to direct debt 21

22 Moody s Metrics State Appropriations per Student State support per student full time equivalent (FTE) Educational Expenses per Student Educational expenses incurred per student FTE Total Tuition Discount Scholarships funded by unrestricted resources + restricted endowments + external sources / gross tuition and fee revenue Moody s Metrics Freshman Selectivity/Student Demand Number of acceptances / number of applicants Freshman Matriculation/Student Demand Number of students enrolled / number of applications accepted Net Tuition per Student: [Gross tuition and fee revenue scholarship discount and allowances scholarship expense] / total FTE 22

23 NACUBO Resources Annual Studies Tuition Discounting Endowment (NES) NACUBO Research Website Provides locations for other resources Other Peer Data Sources 23

24 Other Potential Data Sources Your Institutional Research office (local or state level) Accreditation organizations Regional (e.g., Middle States, North Central, SACS, WACS, etc) Discipline specific (e.g., ABET, NAAB, AACSB, etc) Various higher education consortia 24

25 Common Data Set (CDS) initiative is a collaborative effort among data providers in the higher education community Questions? 25

26 Questions? 26