NACUBO Update SACUBO 2004 Annual Meeting James E. Morley, Jr., President

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NACUBO UpdateSACUBO 2004 Annual MeetingJames
E. Morley, Jr., President CEO National
Association of College and University Business
Officers
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Legislative Issuesin 2004
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Legislative Issues in 2004

• HEA Reauthorization
• College Costs
• FY05 Budget
• Medicare Modernization Act of 2003

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Legislative Issues HEA Reauthorization

• Congress is reauthorizing the Higher Education
  Act of 1965, but no major action anticipated
  until after November elections
• Current law runs out in September 2004 and can be
  extended
• The HEA impacts institutions in numerous ways
• Unfunded mandates
• Federal student assistance, including grants,
  loans, and campus-based aid
• Grants to institutions
• Oversight of Department of Education

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Legislative Issues HEA Reauthorization

• Central themes of reauthorization include
• College cost and price
• Access and choice for students
• Administrative efficiency
• Institutional accountability

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Legislative Issues College Costs

• First shot across the bow is bill by Rep.
  McKeon (R-CA), originally introduced in 2003 and
  amended significantly in early 2004
• Would create an Affordability Index with
  mandated institutional reports
• Portion of bill possibly subjecting institutions
  to sanctions dropped
• Bill also addresses transfer of credits between
  institutions and offers some regulatory relief

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Legislative Issues College Costs

• Senate Democrats introduced bill which would
• Penalize state governments reducing higher
  education funding by more than 10 percent in one
  year
• Raise Pell Grant maximum to 4,500 from current
  4,050
• Double size of Hope Scholarship tax credit
• Offer incentives for institutions to participate
  in the Direct Loan program

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Legislative Issues FY05 Budget

• Pell Grant maximum is static for third year
• New loan program proposals
• Loan limits raised for fist time since 1986
• Expansion of Lifetime Learning Credit proposed
• Treasury Department plans new enforcement efforts

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Legislative Issues Medicare 2003

• Prescription drug benefit rules for
  employer-sponsored health care programs
• Federal subsidy is 28 of covered prescription
  drug costs actually paid by participant between
  250 - 5,000

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Legislative Issues HEROES Act

• HEROES Act extends existing law assisting
  military personnel with temporary deferments or
  delays in repayment of their federal student
  loans when they are called to active duty
• Also provides guidelines for institutions on
  refunding of tuition and re-enrollment processing
  for affected students
• Regulations issued on December 12, 2003

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Legislative Issues CARE Act

• CARE Act seeks to provide tax breaks encouraging
  donations to nonprofit organizations, including
  colleges and universities
• Bill currently in political limbo in Senate and
  unlikely to move soon
• If passed, bill could positively impact donations
  to institutions
• Allows non-itemizing individual tax filers to
  take a deduction of between 250 and 500 in 2003
  and 2004 tax years
• Permits IRA rollovers to charities without tax
  penalty after 59.5 years of age

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Regulatory Issuesin 2004
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Regulatory Issues in 2004

• Department of Education
• Environmental Protection Agency
• Internal Revenue Service

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Regulatory IssuesDepartment of Education (ED)

• eZ-Audit requires institutions to provide data
  elements from their financial statements over the
  Web along with a PDF of their audit
• Still must submit audit under OMB Circular A-133
• NACUBO lobbied against the program, and continues
  to have serious concerns
• Revised eZ-Audit templates available 3/15/04
• Work with financial services at your institution
• NACUBO and other associations commenting as of
  4/22/04

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Regulatory IssuesEnvironmental Protection
Agency (EPA)

• EPA enforcement continues to target colleges and
  universities
• EPA Sector Initiative six associations working
  with EPA HQ and regions
• Environmental Management Systems (EMS)
• Performance Measurement
• Regulatory Change

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Regulatory Issues Internal Revenue Service

• Information Reporting for the Education Tax
  Credits 2003 first year for reporting financial
  data to students and the IRS on Form 1098-T
• New Publication 970, Tax Benefits for Higher
  Education, provides guidance for students and
  parents
• Focused audits on nonresident alien compliance
  continue

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Regulatory Issues Internal Revenue Service

• Student FICA withholding for certain student
  employees
• Aimed at subjecting medical residents to FICA
  withholding
• NACUBO Web cast available, with IRS
  representatives explaining details of proposed
  rules

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NACUBO Activities The Entrepreneurial Campus

• NACUBOs Annual Meeting in Milwaukee
• July 17-20
• Theme The Entrepreneurial Campus
• General Sessions
• Jim Collins
• Derek Bok
• Larry Sabato

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Emerging Issues
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Emerging IssuesPerformance Measurement

• Started with GASB project on service efforts and
  accomplishments, aimed at identifying appropriate
  criteria for performance measures
• NACUBO survey in December to find out what
  measures are being used by colleges and
  universities
• Focused on internal measures that institutions
  can use to mark progress toward goals, compare
  programs
• Aiming for a practical template for institutional
  use

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Emerging Issues Human Resources

• Members are finding HR issues rising
• Health care costs
• Litigation
• Morale in the face of budget cuts
• Demographics of work force

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BUILDINGORGANIZATIONALCAPACITY
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PUBLIC TO PRIVATE GOOD
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PRODUCER TO CONSUMER-DRIVEN MARKET
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UNSUSTAINABLE PRICE INCREASES
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NACUBOS BUILDING ORGANIZATIONAL CAPACITY PROJECT
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• Vision, Mission, Goals
• Policies
• Processes
• Structure
• Systems
• Infrastructure
• Governance
• Culture

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• VISION, MISSION, GOALS The fundamental purpose
  and significant aspirations of the institution or
  activity.
• POLICIES The core principles guiding all
  aspects of the realization of the mission and
  purpose.
• PROCESSES The means by which the mission and
  goals are realized.
• STRUCTURE The organization of people and
  activities aligned and identified to accomplish
  mission, goals, and core processes.

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• SYSTEMS The supporting information and other
  processes that promote effective communication,
  management, and oversight.
• INFRASTRUCTURE The human, physical, and
  financial support assets in place to create and
  sustain the entire effort as defined by the
  vision and mission.
• GOVERNANCE The exercise of authority,
  responsibility, and control over goals,
  activities, and results.
• CULTURE The overall character, values, beliefs,
  and style of the organizationits essential
  personality.

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OUTCOMES

• Cases
• Workshops
• Graduate School Curriculum

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THANK YOU!