Specifications for Resource Analysis (RA) in HEI

Revised June 2001

Introduction

Resource Analysis (RA) is the cost allocation process used by ODHE to determine the cost of instruction related to the instructional subsidy. It allocates all of the Instruction and General (I&G) costs for each campus to the subject codes and levels of all course sections taught by the campus.

The RA process is in a state of development. It is subject to change.

Scope

All costs for every campus reported in the Faculty and Instructional Non-faculty Funding (FF)Funding Unit Expenditure (FX)College Expenditure (CP), and Campus Expenditure (CX) files are allocated to the combinations of subject codes and levels of the enrolled course sections offered by the campus.

Overview

The costs that are allocated in RA are the actual expenses reported by the campuses at the end of each fiscal year.

All of these costs are allocated to some combination of subject and level of the various course sections offered by the campus in some term of the fiscal year. These costs then are converted to a per student full-time equivalent (FTE) basis and aggregated together for all public colleges and universities in the state.

The statewide average cost per student FTE for each combination of subject and level of any course section offered by any campus of a public college or university becomes the basis of state instructional subsidy for instruction in that subject at that level.

The process is executed for each fiscal year and calculates both Unrestricted and Total (Restricted plus Unrestricted) I&G costs.

Allocation Methodology

All source expenses are allocated to the object, subject, and level by multiplying the expense by a ratio. The ratios are constructed in such a way that the sum of all of the ratios used to allocate a given expense to all of its objects, subjects, and levels is equal to one. This ensures that the allocated costs are equal to the input costs. Depending on the expense, the ratios consist of such measures as student credit hours, course credit hours, instructor compensation, and square feet of facility space. The assumption is that the measured parameters reflect cost.

General Allocation Description

The following is a brief description of each step of the cost allocation process. A more detailed description of the same steps follows the table.

Step
Costs Allocated and Objects of Allocation
Allocation Strategies
1

Allocate instructors' campus level, fiscal year, salaries, and fringe benefits among the subjects and levels of the courses that they teach. 

For graduate level courses (Level D or M) split the course section into one, two or three components for doctoral, masters and Bac, based on the Rank of the enrollees. The SCH is divided and cost as well.

Course sections offered by Medical Funding unit should be excluded from this step as well as the salaries paid by Medical Funding units. Medical Funding unit expenses will be allocated separately in Step 5.

Use both Course Credit Hours (CCH) and Student Credit Hours (SCH) as allocators and take the average. Weight SCH by a curve, which relates SCH in a course section to hours worked by the instructor.* 

Use number of course sections instead of credit hours for instructors who teach any zero credit hour course sections and in the CCH allocation for instructors who teach individual studies courses which have fewer than four students enrolled. 

Distribute all credit hours among team teachers evenly. 

CCH is calculated as the average SCH for all students enrolled in the course section.

2

Subtract the allocated instructors' salaries and fringe benefits from the Funding Unit Expenditure (FX) file.

This is not an allocation step, but it is necessary because faculty salaries and fringe benefits are carried both in the Faculty and Instructional Non-faculty Funding (FF) file and the Funding Unit Expenditure (FX) file. The funding unit carried in the FF file identifies the funding unit that pays the instructor.

3

Prorate college expenses to funding unit.

Use Total Funding Unit (conpensation cost only, not other cost, so as to avoid prorating college costs to funding units with no courses taught. change added 9/28/2000)) expenses to prorate both Unrestricted and Total College expenses.

4

Allocate Funding Unit Overhead expenses to the subjects and levels of the course sections offered by the funding unit.

Use instructors' compensation as the allocator in the CCH allocation and SCH as the allocator in the SCH allocation. The funding unit reported in the Course Sections Taught (ST) file identifies the funding unit that offers the course section.

5

Expenses from the Medical Funding units are allocated both to the professional level of the Medical Subject code corresponding to their name and to the subjects and levels of the course sections offered by the Medical Funding unit. 

Note for FY 1999 only, Steps 5a, 5a1 and 5a2 are replaced by using the table at the very end of this document. This is because professional medicine was only coded in HEI starting in Summer term 1999.

Convert professional medical headcounts from the Professional Medical students in the Student Enrollment (SN) file to SCH (15 SCH per head per term). Then allocate all of the funds to the subject code corresponding to the funding unit name at professional level and to the subjects and levels of other course sections offered by these funding units based on SCH. Medical Funding units are: 

  • MEDICINE (511201),  
  • DENTISTRY (510401),  
  • OPTOMETRY (511701),  
  • VETERINARY MEDICINE (512401),  
  • CLINICAL PSYCHOLOGY (420101), and  
  • OSTEOPATHY (511901). 

Note the special processing below for FY 1999 only.

6

Summarize the unallocated funding unit costs to the campus level.

This is not an allocation step, but it is necessary because funding units without course sections may have some or all of their costs unallocated at this point in the process. It is a simple summarization to the campus level creating a new campus expense called Unallocated Funding Unit Overhead. This new cost is allocated in Step 7, using SCH as the allocator.

7

Allocate student services, academic support, institutional support, and the unallocated funding unit overhead expenses to all subjects and levels of course sections offered by the campus. 

SCH is the allocator.

8

Allocate library expenses to all subjects and levels of course sections offered by the campus.

SCH is the allocator, but graduate SCH is weighted by a factor of three.

9

Allocate Plant Operation and Maintenance (POM) expenses to various cost categories at the campus level. The categories are: 

  • Instructional Classrooms,
  • Instructional Laboratories,
  • Other Areas Used for Instruction,
  • Student Services, 
  • Graduate Libraries,
  • Undergraduate Libraries, and
  • Institutional Support.

Use Net Assignable Square Footage (NASF) by function code from the Area Inventory (AI) file to allocate to Instructional (functions 10 and 21), Student Services (function 52), Libraries (function 40), and Institutional Support (functions 51 and 54). 

Use weighted SCH to further allocate libraries to graduate and undergraduate. 

Use NASF by Area Type to further allocate Instructional to Classroom (area type 110 and 115), Lab (area type 210 and 215), and Other (all other area type values).

10

Allocate campus POM for student services, institutional support, undergraduate libraries, and classrooms to all subjects and levels of course sections offered by the campus. Restrict undergraduate libraries to undergraduate levels.

SCH is the allocator.

11

Allocate campus graduate library POM to all subjects and graduate levels of course sections offered by the campus.

The instructors' salaries and fringe benefits allocated to all subject code and level combinations of course sections offered by the campus calculated in Step 1 is the allocator.

12

Allocate campus lab POM to all subjects of areas classified as Instructional and Laboratory in Step 9. Allocate to only those subjects that have generated SCH. For those campuses with no subject codes that have both NASF in instructional laboratories and SCH, allocate to all subject and level combinations which have SCH based on SCH.

NASF from the Area Inventory (AI) file summarized by subject for areas identified as Instructional and Laboratory in Step 9 is the allocator for allocating to subject. SCH is the allocator from subject to level.

13

Allocate campus Other Instructional POM to all subjects of areas classified as Instructional and Other in Step 9. Allocate to only those subjects that have SCH (because Regents allocates cost on a per student basis). For those campuses with no subject codes that have both NASF in Instructional Other Rooms and Instructor's Compensation, allocate to all subject and level combinations which have SCH based on SCH. 

Note, Instructor's Comp comes from Step 1, except for Professional Medicine, it comes from the Medical Funding Unit FX file. 
Note: Subject Codes with NASF but no SCH, will have $0 allocated for Other POM.

NASF from the Area Inventory (AI) file summarized by subject for areas identified as Instructional and Other in Step 9 is the allocator for allocating to subject. Instructor's compensation based on the CCR allocation is the allocator from Subject to Level.. For Offices (Room Type 310), use the first two digits of Subject and expand it to include all corresponding Subjects that have Instructor's compensation. This is because offices are assigned to more general Subjects than courses.

14

Allocate Law Library expense to Subject 220101, Level P.

All costs are allocated to a single subject code and level.

15

Allocate Med Library expense to Subject 511201, Level P, except for OHUN it is allocated to 511901.

All costs are allocated to a single subject code and level.

20

Balance all allocated cost to input cost for each campus.

 
21

Combine all allocated cost into a single table summed by fiscal year, campus, subject and level.

 
22

Add faculty data to the cost allocation table. Faculty data is the total Course Credit Hours reported for the sections in this aggregation broken down by the rank of the instructors, and by Full Time Part Time.

Faculty Rank is derived from the FD file Appointment Status and Faculty Rank. Use GA as the Rank if the Appointment Status is GA, use Faculty Rank for all other Appointment Status's, combine Ranks NR, OT, and UK into an "All Others" Rank. 

Full Time Part Time is derived from the FD file Appointment Status. Use GA if the Appointment Status is GA, "Full Time" if the Appointment Status is 09 or 11, and "Part Time" for Appointment Status of PT. 

Course Credit Hours of the sections are calculated and allocated to the instructors the same as in Step 1. The average of the Student Credit Hours of the enrolled students in the Course Credit Hours of the section. In the case of team teaching the Course Credits are divided equally among all instructors of the section.

23

Add section size to the cost allocation table. We want average section size both for all sections and sections excluding individual instruction. For the second group we will exclude all sections with fewer than four enrollees. 

In addition, add a distribution of the number of sections with various ranges of enrollments (1 - 3, 4 - 10, 11 - 50, >50)

Keep number of sections and number of enrollees in the cost allocation table, so that we can roll up the averages to higher levels of aggregation. 

 

*The curve used for the weighted SCH was selected by a study documented in Curve Fitting for Student Credit Hour Weights in Resource Analysis.

 

Data Tables Used in Resource Analysis

  1. Academic Calendar: Reports calendar type for converting Student Credit Hours to FTE. 
  2. Area Inventory: Reports Function Code, Room Type and NASF for allocating POM. 
  3. Campus Expenses: Reports campus level costs to be allocated. 
  4. College Expenses: Reports college level costs to be allocated. 
  5. Course Enrollments: Reports SCH and course section size. 
  6. Course Inventory: Reports the Subject Code and Level of a course. 
  7. Course Section Taught: Relates instructor to course section. 
  8. Course Section Type: Might be used to identify individual studies, more likely we will use section size. 
  9. Course Section: Reports Funding Unit offering the section. 
  10. Faculty Demographics: Reports Instructor rank and full-time/part-time. 
  11. Faculty Funding: Reports instructor compensation to be allocated and Funding Units paying the instructor. 
  12. Funding Unit: Relates Funding Unit to College. 
  13. Funding Unit Expenses: Reports funding unit level costs, beyond instructor compensation to be allocated. 
  14. Institution SSN: Reports which instructor ids are codes for generic instructors. 
  15. Medical Enrollments: Reports professional medical enrollments. 
  16. Student Enrollment: Reports Student Rank. 

Outputs

Outputs of the Resource Analysis process consist of the:

  1. A permanent table (Resource Analysis Allocated Cost table),
  2. A query to select and summarize data from the Resource Analysis Allocated Cost table.

 

Resource Analysis Allocated Cost Table

Allocated costs should be saved in a table for each combination of fiscal year, campus, subject, and level.

The attributes are:

  1. Fiscal Year (key),
  2. Campus (key),
  3. Subject Code (key),
  4. Level (key),
  5. Compensation (Unrestricted and Total), allocated in Step 1,
  6. Funding Unit Overhead (Unrestricted and Total), allocated in Step 4,
  7. Medical Funding Unit Cost (Unrestricted and Total), allocated in Step 5,
  8. Student Services (Unrestricted and Total), allocated in Step 7,
  9. Academic Support (Unrestricted and Total), allocated in Step 7,
  10. Institutional Support (Unrestricted and Total), allocated in Step 7,
  11. Unallocated Funding Unit Overhead (Unrestricted and Total), allocated in Step 7, rolled up in step 6,
  12. Library (Unrestricted and Total), allocated in Steps 8 14, and 15,
  13. POM (Unrestricted and Total), allocated in Steps 9 - 13,
  14. Student FTE (Total, Lower Division, Upper Division, Master's, Doctoral, and Professional, added in Step 21,
  15. Instructor FTE (Total, Professor, Assoc. Professor, Asst. Professor, Instructor, Lecturer, GA, All Others), added in Step 22,
  16. Section Size (Number of Regular Sections, Number of Independent Studies Sections, Enrollments in All Sections, Enrollments in Regular Sections), added in Step 23.

Query Input

Selection

  1. One or more fiscal years,
  2. Unrestricted or Total cost (not both),
  3. Campus varieties
    1. One or more Institution Types
    2. One or more Institutions
    3. One or more campuses
  4. One or more Levels
  5. Program Code varieties
    1. One or more Subject Fields
    2. One or more 2 digit Subject Codes
    3. One or more 4 digit Subject Codes
    4. One or more 6 digit Subject Codes
  6. One or more Subsidy Model (Subsidy Model selection is mutually exclusive with Subject Code or Level selection)
  7. Output format (screen oriented or download).

Undecided Issues

  1. How should costs be allocated for cross registered enrollments?

Detailed Specifications

Programming the Process

The COBOL source code with imbedded SQL is located on the Regents LAN at Y:\elldrv\Resource Analysis\res_anla.pco.

Special table of Professional Medical FTE for FY 1999 only. Used in Step 5 in place of Steps 5a, 5a1 and 5a2. 
Note the SCH recorded are the input FTE, not the adjusted FTE used in Subsidy. 
 

FY
inst
code
fund
unit id
Subject
Level
FUSL
SCH
UD
SCH
LD
SCH
M
SCH
D
SCH
P
SCH
1999 OHUN OSTEOPATHY 511901 P 19545 0 0 0 0 19545
1999 NECM MEDICINE 511201 P 19875 0 0 0 0 19875
1999 MCOT MEDICINE 511201 P 27240 0 0 0 0 27240
1999 WSUN MEDICINE 511201 P 17100 0 0 0 0 17100
1999 CINC MEDICINE 511201 P 29820 0 0 0 0 29820
1999 OHSU MEDICINE 511201 P 40425 0 0 0 0 40425
1999 WSUN CLINICAL PSYCHOLOGY 420201 P 5250 0 0 0 0 5250
1999 OHSU DENTISTRY 510401 P 18345 0 0 0 0 18345
1999 OHSU OPTOMETRY 511701 P 12060 0 0 0 0 12060
1999 OHSU VETERINARY MEDICINE 512401 P 25770 0 0 0 0 25770