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NDUS Procedures

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SUBJECT: 800s: Financial affairs EFFECTIVE: March 14, 2018
Section: 805.3.1 Distance Learning Courses - Revenue Distribution

  1. If a course or program is provided by a home or provider institution (the same institution may be both the home and provider institution) on site at another campus (the receiving institution), a standard revenue distribution applies unless the institutions negotiate and agree to a different revenue distribution agreement. The standardized revenue distributions attempt to align revenue allocations with expenses incurred by the participating campuses. The model assumes that the participating institutions are generally incurring the following expenses:
    1. Provider Institution:
      1. Instruction; and
      2. Academic Support, excluding library
    2. Home Institution:
      1. Library;
      2. Student Services; and
      3. Institutional Support
    3. Receiving Institution:
      1. Physical Plant

  2. Funds shall be transferred between campuses at the end of the semester, after the home institution verifies that payments were received from the students. If a student has a receivable, the revenue is not transferred until the receivable is paid.

  3. Subject to annual review and agreement of participating institutions to substitute a different revenue distribution model, the standard tuition revenue split is 60% provider institution, 20% home institution and 20% receiving institution. The home institution is responsible for transferring funds to the other participating institutions (i.e. provider or receiving site).

    Example 1: One institution is the home and receiving institution and another institution is the provider institution:
    The provider institution remits 40% of the provider institution's tuition collections to the home institution at the end of the semester as reimbursement for physical plant, library, student services and institutional support.

    Example 2: One institution is both the home institution and provider and another institution is the receiving institution:
    The home institution remits 20% of the home institution's tuition collections to the receiving institution at the end of the semester as reimbursement for physical plant.

Reference: SBHE Policy - 805.3  

Chancellor's Cabinet meeting, June 2001; Amendment, Chancellor's Cabinet meeting, September 26, 2002; Amendment, Chancellor's Cabinet meeting, November 19, 2003; Amendment, Chancellor's Cabinet meeting, October 22, 2008; Reviewed, Chancellor's Cabinet meeting, March 14, 2018.
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