Financial Health and Stability


The budgets and capital assets (land, buildings, and equipment) of Alabama’s public colleges and universities are significant. The management and stewardship of institutional budgets and facilities, therefore are crucial to long term institutional success and have been found to be an important factor in academic program quality and reputation, faculty hiring, student enrollment, and student outcomes. Ineffective financial and facility stewardship have also been found to impact programmatic and institutional accreditation. The following measures give insight to the financial operations of a college or university:

4.1 Institutional Revenues Report for Community Colleges, Institutional Revenues Report for Public Universities and Private State-Supported Institutions show the sources of revenues for the campuses including tuition, state appropriations and external funding from grants, contracts and auxiliary operations. This information is reported to IPEDS.

4.2 Institutional Expenditures Report for Community Colleges, Institutional Expenditures Report for Public Universities and Institutional Expenditures Report for State-Supported Private Institutions show how institutions spend their funds. Expenditures are differentiated into four subsets: (1) student-focused expenditures; (2) mission related expenditures; (3) autonomous activities expenditures; and (4) facilities and capital expenditures. This information is reported to IPEDS.

4.3 Financial Stability Report is a document that Alabama institutions submit to the regional accrediting agency (Southern Association of Colleges and Schools Commission on Colleges) for reporting financial health. Financial health can be illustrated by a variety of measures and therefore these reports will vary by institution.