financial management in higher education...

Financial management in higher education institutions for Eastern Mediterranean countries

Financial management in higher education institutions for Eastern

Mediterranean countries

Report of a sub-regional workshop Patras, Greece, 29 M a y to 2 June 1995

U N E S C O : International Institute for Educational Planning

The designations employed and the presentation of material throughout this document do not imply the expression of any opinion whatsoever on the part of U N E S C O or П Е Р concerning the legal status of any country, territory, city or area or its authorities, or concerning its frontiers or boundaries.

The workshop which is the subject of this report was organized by the IIEP in cooperation with the Greek Ministry of Education and Religious Affairs and the University of Patras.

The costs of the workshop and of the publication of this report have been covered by I T A L Y / U N E S C O Funds-in-Trust and by voluntary contributions m a d e by several M e m b e r s States of U N E S C O , the list of which will be found at the end of the document.

This volume has been typeset using IIEP's computer facilities and has been printed in IIEP's printshop.

International Institute for Educational Planning 7 - 9 rue Eugène-Delacroix, 75116 Paris

© U N E S C O November 1995 IIEP/jn

Contents

I. The context 1

П . Objectives of the workshop 2

Ш . The profile of the countries, institutions and participants 2

IV. The organization of the programme 4

V . Discussions during the workshop 5

VI. Evaluation of the workshop 8

V u . Follow-up of the workshop 9

Appendices 11

Appendix I. Participating universities 13

Appendix II. List of participants 14

Appendix III. Programme of the workshop 17

Appendix IV. Introductory statement By Jacques Hallak, Assistant Director-General, U N E S C O , Director, H E P 19

Appendix V . Trends in institutional management in higher education 21

Appendix VI. Trends noted in Western European countries in financial

management of higher education institutions 32

Appendix VII. List of papers presented 43

Appendix V H I . Problems of management council for higher education by Gabi A. Baramki, Secretary-General 44

i

Contents

Appendix IX. General aspects of institutional management at the Middle-East Technical University by Türker Gürkan, Vice-President 49

Appendix X . Accelerated growth: the dilemmas facing the Open University by Ehud Or 67

Appendix XI . Management of finance in the University by N.J. Vakis, Director of Administration and Finance 73

Appendix XII. The cost of education and financial adjustments to fiscal stress: experiences from Yarmouk University, Jordan by Yaser M. Adwanan, Vice-President, Administration and Financial Affairs 88

Appendix XIII. Financial management in higher education for Eastern Mediterranean countries by Mohammad Sarsour, Birzeit University 115

Appendix X I V . The Hebrew University of Jerusalem - A research University in Israel by Shabtay Dover, Director, Research and Development Authority 122

Report of a sub-regional workshop on Financial management in higher education institutions

for Eastern Mediterranean countries'

I. T h e context

In recent years, institutions of higher education have experienced major changes in the environment in which they operate. These changes relate to all aspects of their relevant environment, i.e. the political, demographic, socio-economic and technological spheres. The following trends are widely referred to in the literature:

financial austerity in the public sector in general and in higher education in particular; continuous expansion of student numbers due to ever increasing social demand; increased pressure from government for accountability and market transparency from the consumers of higher education, i.e. students, their parents and employers; a trend towards more institutional autonomy and devolution of responsibility from the State to the institutions and from the centre of institutions to the basic units; the availability of information technology creating more potential for effective management information systems; the availability of communication technology and the revolution it entails for accessing and disseminating information and organized knowledge.

S o m e of these changes have impacted heavily on the structures and processes of higher education institutions. Within this context, governments have indicated that they are increasingly concerned with the management capacity of higher education institutions, the efficiency of resource utilization, cost-effectiveness and accountability. T w o general trends m a y be mentioned as underlying rationales. First, institutional management in the past was largely perceived as a subsidiary function of a higher education institution, which was governed traditionally in a collégial w a y by the community of scholars with low State interference, in the anglo-saxon tradition, or through tight input steering in continental Europe and most other continents. At a m o m e n t where resources were plentiful and systems expanding, decisions could easily be m a d e by consensus. In a context of austerity, economic crisis and diminishing resources, however, hard choices and often selective retrenchment seem to be increasingly necessary in order to ensure the survival of institutions. Second, in m a n y countries there is a growing tendency to shift from governmental steering through direct control over inputs and by bureaucratic procedures to indirect steering by means of contractual arrangements. It is hoped that this is a more effective strategy for inducing change in higher education institutions since it has been observed that most changes in higher education are initiated at the grass-roots level. A s a consequence, more autonomy is granted with regard to academic policies and management. However , institutions are required to be accountable for the w a y resources are used and outcomes achieved.

1

Financial management in institutions of higher education for Eastern Mediterranean countries

These important changes in the environments of higher education institutions have led to major modifications in the roles and functions of higher education managers. Heads of institutions, besides their traditional role as communicators between internal and external constituencies and stakeholders, need to have increasingly more skills in the area of policymaking and public relations. The tasks of high-level administrators have also become more complex. F r o m tasks formerly geared towards routine management and administration, they are n o w located at the interface of technical and policy-making functions. Their understanding of the nature of higher education institutions and major options or strategies available to each problem area, need to be strengthened in addition to reinforcing their technical knowledge in their respective administrative specialities.

II. Objectives of the workshop

In order to respond to the above-mentioned challenge, the 1 Ш Р has been conducting, since 1989, a research programme consisting of two main components:

e preparing selected case studies on the management of change in universities leading to the better utilization of resources;

• establishing an information base on recent changes in governmental policies and institutional responses to improve institutional management worldwide.

In order to respond to the m a n y demands on training in the area of institutional management, the H E P has integrated its research results in the development and ongoing adaptation of training materials. These have already been used in four workshops conducted for universities in southern Africa, Anglophone West Africa, South-East Asia and East Asia. The workshop conducted in the Eastern Mediterranean region is the fifth of these workshops.

The workshop's overall objectives were:

(i) to inform the participants about the general aspects of managing institutions of higher education;

(ii) to provide a forum for exchange of national experiences in the institutions of higher education on the problems of managing financial resources;

(iii) to present some selected planning and management concepts and techniques aimed at better utilization of financial resources; and

(iv) to identify strategies for better management of financial resources in the institutions of higher education represented.

1 П . T h e profile of the countries, institutions and participants

The Greek Ministry of National Education and Religious Affairs, took the initiative to invite the IIEP to jointly organize this workshop with the University of Parras. The countries to be invited from the Eastern Mediterranean region were Cyprus, Egypt, Jordan, Israel, Turkey as well as Palestine.

2

Report of a sub-regional workshop

F r o m a long history of conflict and war in the region, recent events such as the Agreements reached in Oslo and Washington have created major expectations and hope for a peaceful and sustainable settlement of decade-long conflicts in the Near East region. The promotion of the culture of peace by implementing programmes in its o w n areas of competence is a major priority for U N E S C O . It is within this framework that the 1 Ш Р took the initiative to bring together professionals to share experience and ideas in their particular field of expertise. Collaboration a m o n g university scholars is beginning to take place, as demonstrated by a project conducted jointly by the Hebrew University of Jerusalem and the University of Bethlehem, located in the West Bank, concerned with joint management of water resources. Exchange in the area of institutional management appeared as a relatively n e w field of professional interaction.

In addition to this highly challenging political background, the Eastern Mediterranean region represents indeed a rich tapestry of cultures and traditions comprising the Christian orthodox culture of Greece and Cyprus, Jewish cultures of Israel and the Muslim culture of Turkey, Jordan, Egypt as well as Palestine. Also, the countries represented are quite diverse with respect to their state of economic development. They comprise countries of intermediate income such as Egypt, Jordan and Turkey as well as countries belonging to the high-income group such as Israel, Greece and Cyprus. This diversity of economic development, of course, has a heavy impact on the level of financial support governments can provide to their higher education institutions.

Most of the Eastern Mediterranean countries represented, can be proud of a long tradition of higher education in their countries which goes back, for instance in the Turkish case, to the Ottoman Empire. They have developed, with the exception of Cyprus, quite diversified higher education systems in terms of types and numbers of institutions. Major differences exist a m o n g institutions in the w a y their relations with their government are coordinated. O n the one hand, there is a tradition of low governmental interference and institutional self-regulation, as in the case of Israel and, to a large extent, also in Cyprus and Palestine, and, to a more limited extent, in Jordan, where institutions within a framework of governmental policies, enjoy a high degree of latitude over m a n y managerial and academic decisions. O n the other hand, institutions in Egypt, Greece and Turkey are still tightly controlled by central government administration. Greece and Turkey do not allow for the development of private higher education, with the exception of so-called foundation universities in Turkey, which are set up as a private foundation with a non-profit-making aim.

The institutions which participated (see Appendix I) were chosen in such a w a y as to represent as m u c h as possible the.broad spectrum of different types of national institutions, such as a traditional fully-fledged comprehensive university, an institution with a science and technological orientation, or a more recently-created university. S o m e of the institutions were founded at the beginning of the century, others were created more recently as a consequence of ever-growing social demand for higher education during the 1970s. The University of Cyprus and Harokopeio University are the most recently created universities of the group and have been operating only since the early 1990s. With regard to their size in terms of student numbers, differences are even more striking. Cairo University has 110,000 students and Harokopeio University comprises at present a student body of only 216 students specialized in h o m e economics.

3


Participants in the workshop were those in charge of financial management at their university. These were either Vice-Presidents for Administration and Finance, or Heads of Administration or Officers. Participants thus included high-level academic administrators as well as top permanent administrators (see Appendix II). This enabled a broader vision of management problems as perceived by these two distinct groups of participants.

IV. T h e organization of the p r o g r a m m e

The workshop was opened with an address by the Rector of the University of Parras, Professor S . Alahiotis. Speeches followed by the Secretary General of the Greek Ministry of National Education and Religious Affairs, M r M . Stavrakakis, and the ADG/Director IffiP, M r Jacques Hallak. All speakers underlined the importance of university management as a tool for inducing change in higher education institutions and expressed their hopes that the workshop would contribute to the dissemination of n e w innovative ideas in the area.

The programme of the workshop (see Appendix III) was conceived in such a w a y as to allow participants opportunities for an intensive exchange of experiences either by means of presenting their university's financial management system or through a problem-solving exercise on a fictitious university, where participants had to draw on their expertise in designing a financial strategy for that institution.

The programme was organized in two modules:

(i) a short one on general questions of institutional management, comprising:

an introductory presentation on concepts and international experiences; and

participants' presentations of the structures and problems of their university's management systems;

(ii) a second module on financial management, including:

0 an overview on experiences in Western-European countries;

e participants' presentations of their systems of financial management;

e an exercise on designing a strategy for the financial survival of a fictitious university of 'Erewhon' by means of establishing alternative scenarios.

The programme included a get-together at the Rector's office, for a discussion of management structures and problems of the University of Parras, and a closing dinner headed by the Deputy Mayor of the city of Parras.

4


V . Discussions during the workshop

1. Exchange of experience

The substantive part of the workshop was opened with a keynote speech by the H E P ' S Director (see Appendix TV), w h o outlined some basic concepts and major trends in institutional management in Western-European higher education. A discussion of major trends which were occurring in the environment of higher education institutions, indicated that m a n y institutions were experiencing a shift of the steering philosophies used by their governments. Traditionally self-regulated institutions, such as the British universities, are experiencing more State interference, whereas institutions traditionally under centralized planning and control, in m a n y countries, have been given recently more institutional autonomy, most often accompanied with a claim of a posteriori evaluations of outputs. A s a result, institutions are moving away from the traditional system of collégial decision-making in the direction of a more centralized line of management, on the one hand, and devolution of administrative autonomy to the basic units, on the other. The latter is done in order to encourage a greater sense of responsibility in the use of resources and more initiative in the search for n e w resources. A s a consequence, there is major need for capacity building in institutional management, which needs to be addressed from three different angles: (i) development of h u m a n resources; (ii) institution-building; and (iii) creating a favourable environment. Also, in order to support management, there have to be adequate information systems and systems of incentives to be used by managers to induce organizational change.

In order to introduce the topic of financial management, an overview of trends in Western-European countries was presented (see Appendix VI).

Participants' presentations (see list in Appendix VIT) m a d e during the session of general aspects of institutional management concerned the particular structures and functions either of the national co-ordinating bodies for higher education, as in the cases of Palestine and Turkey, or the institutional structures and problems, as in the cases of Yarmouk, Mansura, M E T U and the Israeli Open University (see selection of papers, Appendices VIII, IX and X). Problems presented focused in several cases on issues such as the university-government relationship, rigidity due to traditional organizational structures and the prevailing model of collégial decision-making. The case of the Israeli O p e n University was given, where participants were exposed to the particular problem of a distance-teaching institution operating largely on a cost-recovery basis. The O p e n University of Israel is confronted n o w with major competitors, which might endanger the institution's financial survival, since students' fees represent the bulk of its income.

Presentations were organized in two panel discussions with two participants presenting general comments or asking specific questions (for selection of papers cf. Appendices XI, XII, XIII and XIV).

The diversity of the systems of financial management were clearly brought out in the debate. S o m e universities, such as Gazi University and the University of Parras, put major emphasis on the rigidities and the limited latitude of their financial management due to tight bureaucratic control by means of rules and regulations. However, the growing importance of extra-budgetary funds, channelled in the case of Greek universities through the University

5


Research Councils and, in the case of Turkish institutions, through the revolving funds, were reported. This created, however, administrative problems due to lack of unified accounting systems.

Y a r m o u k , Birzeit and J U S T pointed out their difficulties with, and strategies for, matching means and ends. These latter universities have all developed, more recently, financial strategies of cost recovery, of increasing student fees and cost reduction. Y a r m o u k is confronted with a major problem of over-staffing, in particular in the support-staff area, due to decreasing student numbers and to over-recruitment in the past. The newly-created University of Cyprus represented a special case, in that considerable parts of its appropriations were not spent in the past fiscal year since certain decision-making structures were not yet in place. The Hebrew University of Jerusalem, an institution with a strong research potential, m a d e a presentation on the financing of its research activities, pointing out the relative importance of the different funding sources.

2. Methodological training in strategic financial management

The second part of the workshop was oriented towards methodologies. Participants were confronted with the particular problems of the fictitious university of Erewhon, faced with a governmental policy aiming at a major increase in overall national student numbers, parallel to the reduction of funding per student. Participants were invited to analyse basic performance indicators in the area of finances and quality of education (input, process and output factors) and then had to design a strategy aiming at financial survival and maintaining the University's comparative advantage.

The preparation of this strategy was conducted within the frame of a role-playing g a m e , whereby participants were divided up into two working parties consisting of a vice-chancellor, finance officer, dean of faculties of medicine, science and technology, social science and humanities, as well as representatives of staff and students.

In order to comply with the governmental policy of increasing overall student numbers, Working Group 1 suggested to change student numbers according to the following guidelines:

e increase of 10 per cent in the Faculty of Medicine; e increase of 10 per cent in the Faculty of Science and Technology; e increase of 15 per cent in the Faculty of Social Science; and, e decrease of 10 per cent in the Faculty of Humanities (in deficit in the base year

situation).

In order to contain costs, staff replacements to be frozen for professors and lecturers, contact hours per teacher, per year, to be increased by three in comparison with the base year scenario and class sizes to be brought up to 30 in medicine, 35 in engineering and 40 in the social sciences and humanities. Tuition fees are to be increased by 30 per cent across the board for all faculties; this s u m would include a registration fee to be paid by n e w students at the beginning of their studies.

With this strategy of cost containment, cost recovery and increased admissions (however unevenly distributed a m o n g the faculties), the University would produce a

6


considerable surplus of about 9 million H e p $. T h e Faculty of Humanities would still be in deficit, but the University decided that it rather prefers to remain a comprehensive traditional university having the other universities subsidizing its Faculty of Humanities. T h e attached charts (Appendix XV) show that under the proposed strategy, the University would comply with governmental targets of student numbers (Chart I). However , the University would lose some of its comparative advantages of student study success (measured by means of a percentage of students successfully completing a course). Also, its student-staff ratio would worsen considerably in social sciences and humanities, where study success is diminishing and drop-outs rising. Also, the University will have to face major problems with its students, w h o will go on strike in the light of the increases in tuition fees.

Working Group 2 presented a strategy somewhat different from that of Working Group 1. In its mission statement, it suggests to:

(i) continue to provide high-level education;

(ii) m a k e education in the university more relevant to the needs of the community and the developmental requirements of the Republic;

(iii) maintain research at a high level and m o v e into applied research.

This suggested mission statement was translated into the following targets:

(a) the introduction of n e w graduate programmes;

(b) the expansion of continuing education programmes;

(c) a look at income-generating activities and to link students in engineering and business with the industrial and business community;

(d) to charge fees gradually to reach 5 to 15 per cent of cost and keep sufficient funds for needy students.

In terms of operational decisions, the working group suggests to:

(i) reduce slightly the admissions in the Humanities Faculty (745 instead of 790 as suggested in the base scenario) since the Humanities Faculty produces a deficit in the base year;

(ii) increase post-graduate admissions in the social sciences and the humanities;

(iii) increase slighdy the salaries of lecturers in the Humanities Faculty, which are particularly low in comparison with the salaries paid in all the other Faculties;

(iv) recruit more professors instead of recruiting more lecturers (especially in engineering, social sciences and humanities, where professors are the most likely to generate extra-budgetary funds) and m o r e support staff;

7


(v) increase considerably the fees for full-time students (e.g. from 100 H e p $ to 1,200 H e p

$ in 1993 in the Faculty of Medicine).

The group suggests to increase tuition fees radically from the first year of the planning period onwards (1994), at the expense of the University having to face major student strikes in 1995. However , in 1998 only the social science students would still be on strike, the other faculties having calmed d o w n . The financial situation of the University will be reversed, with a surplus of 9.6 H e p $. Also, the University would have maintained its comparative advantage of favourable teaching/learning conditions and in maintaining its research potential (cf. Appendix XVI).

This exercise of scenario-building, led participants to the discussion of the desirability of a university generating surpluses and reinvesting these in the capital market. In m a n y countries public universities are still considered as non-profit-making entities and financial management is widely concerned with keeping the university's finance in balance. In other cases, however, universities have become highly entrepreneurial and some participants thought that this does not necessarily jeopardize the quality of education and research produced.

V I . Evaluation of the workshop

Participants highly appreciated the opportunity offered of sharing problems and innovative experiences with colleagues from the sub-region. D u e to the long history of tension among countries, working relations between higher education managers could only be established recently and are usually concentrated in the academic area. A s a consequence, the parts of the workshop based on participants' presentations were rated very positively.

However , the following suggestions for improvement were made with regard to the other parts of the workshop:

(i) concentrate the programme on one module (i.e. financial management instead of both general aspects and financial management);

(ii) give more time for exchange of ideas and experience, perhaps by identifying specific innovative experiences of universities, to be presented during the workshop;

(iii) adapt the practical exercise to the needs of professionals of management and high-level administrators. At present, it could be used only for junior administrators, or be given as a reading assignment;

(iv) reduce the time for the role-playing game and scenario-building and use a real instead of a fictitious case;

(v) send training materials in beforehand so that participants can better prepare themselves for the workshop.

8


VII. Follow-up of the workshop

During the evaluation session at the end of the workshop, participants expressed their interest in organizing a follow-up meeting in one of the participating universities. Birzeit, Cyprus or the Hebrew University offered their hospitality in this respect. It was suggested to convene a preparatory meeting in Israel, during S u m m e r 1995, whose purpose would be to prepare a proposal for a follow-up. This proposal could be presented for financing to the M E D - C A M P U S ' project of the European Union, whose objective is to stimulate collaboration among universities in northern Europe and the Mediterranean region. Participants suggested the following topics as objectives for a possible follow-up meeting:

fund-raising with special emphasis on attracting research funds from national and international organizations;

privatization through sub-contracting and cost recovery;

n e w challenges to universities: distance education, n e w technology for education, responsiveness to societal needs;

e quality management.

In particular, the last topic stimulated m u c h interest by all the participants since quality management is high on the political agenda in the countries represented.

9

I

Appendices

Appendix I Participating universities

Cyprus

Egypt

University of Cyprus

University of Cairo University of Mansourah

Greece University of Patras, Harokopio University

Israel Hebrew University of Jerusalem Open University of Israel

Jordan Yarmouk University Jordan University of Science and Technology

Palestine AI Aznar University Birzeit University Council for Higher Education

Turkey Ankara University Gazi University Middle-East Technical University

13

Appendix II List of participants

Cyprus Dr Nicos J. V A K I S Director of Administration and Finance University of Cyprus P . O . B . 537 Nicosia

Fax: Tel:

(357-2) 47.63.04 (357-2) 36.61.86

Egypt M r Mosad Saleh Hussein H A S S A N Mansourah University Faculty of L a w Post Office 35516 Fax:

Tel:

M r Youssry Abdelhameed R A D W A N Secretary General of Faculty of Commerce Cairo University Sarwat Street Fax: Giza Tel:

(2050) 34 75 29 (2050) 35 93 91

(202) 62.46.20 (202) 5726166

Greece M r Nikos M Á N D A L O S University of Parras Student Information Office Panepistimioupolis 26110 Parras

Fax.: (30.61) 99.17.11 Tel.: (30.61) 99.76.09

Israel

Takis Y A N N O P O U L O S Responsible for Financial Management Harokopio University 70 Eleftheriou Venizelou A v . KaUithaea, Athens P C 17671

Dr Shabtay D O V E R Director Research and Development Authority Hebrew University of Jerusalem Terra-Sancta Building Jerusalem 91904

Fax.: Tel.:

Fax.:

Tel:

(30-61) 957-70-50 (30 61) 957-70-51/5

(972-2) 66-47-40 (972-2) 65-86-612/3

14

Appendices

M r Ehud O R , Director-General The Open University of Israel M a x R o w e Educational Centre 16 Klausner Street, P . O . Box 39328 Ramat-Aviv, Tel-Aviv 61392

Fax.: (972-3) 64.60.572 Tel.: (972-3) 64.60.204

Jordan M r Anas A L O M A R ! Director-General Financial Affairs Jordan University of Science and Technology Irbid

Fax: (962-2) 29.51.23

Telex 55545 Just Jo Tel: (962-2)29.51.11 ext.2663

Professor Ali Husein M A G A B L E H Chairman Banking and Finance Department Yarmouk University Irbid

Fax: (962-2) 27.47.25

Tel: (962-2)27.11.00

Professor Yaser A D W A N Vice-President Administration and Financial Affairs Yarmouk University P . O . B o x 566 Irbid

Fax: (962-2) 27.47.25 Tel: (962-2)27.11.00

Palestine Professor Gabi Andoni B A R A M K I Secretary-General Council for Higher Education P . O . B o x 17360 Jerusalem Palestinian National Authority

Dr Mohammad SARSOUR Birzeit University P . O . B o x 14

Birzeit

Dr Jawad Ashour W A D I Al Azhar University P . O . Box 1277 Gaza

Fax. Tel:

Fax.

Tel.

Fax: Tel:

(972-2) 995 45 18 (972-2) 995 44 90

(972-2) 995 76 56 (972-2) 998 20 42

(972-7) 82 31 80 (972-7) 82 40 10

15

Appendices

Turkey Professor Dr Üstün D Î K E C Gazi University, Faculty of Public Finance and Economics Science Besevler, Ankara

Professor Dr Ali Erkan E K E Vice-President Ankara University Tondogan 6100 Ankara

Professor Dr Türker G Ü R K A N Vice-President Middle-East Technical University Ismet Inönü Bul vari 06531 Ankara

Fax: Tel:

Fax: Tel:

Fax: Tel:

(90 312) 212 68 53/1104 (90 312) 221 21 07

(90 312) 223 63 70 (90 312) 213 22 40 (90 312) 213 18 30

90-312-210-1105 90-312-210-1102

Appendix HI Programme of the workshop

M o n d a y 29 M a y

lOhOO- U h O O Welcoming address, S .N . Alahiotis Official opening, M . Papavasiliou Stavrakakis Introductory statement, J. Hallak

Module 1: Introduction

llh30 - 12h30

12h30 - 13h30

15h00 - 18h00

20h00

Keynote speech: Trends in institutional management, J. Hallak Short presentation of participants' institutions

Presentation of institutional cases: general aspects of institutional management and discussion. Chair: J. Hallak, G . Williams

Presentation (continued)

Cocktail

Coffee break llhOO - Lunch break 13h30

Module 2: Financial management Part I. Financial management: its context and its role in attaining university

goals

Tuesday, 30 M a y

9h00 - 9h30

9h30 - 12h30

Plenary presentation and discussion: Review of trends noted in developed countries as regards strategies to improve financial management, M . Martin

Presentation of institutional cases of financial management in participants' universities and discussion of problems of financial management in Eastern Mediterranean countries. Chair: J. Hallak, G . Williams (Group work)

12h30 - 13h30 Plenary presentation and discussion. Chair: G . Williams

17

Appendices

Part II. Financial management and performance indicators as instruments of decision-making

15h00 - 17h00 Plenary session: Techniques of financial management in universities, G . Williams

19h00 Visit of the University of Patras and get-together at the Rector's office,

S . N . Alahiotis

Wednesday, 31 M a y

9h00 - 13h30 Exercise on financial management, G . Williams, M . Martin

15h00 - 17h00 Computer simulation on alternative scenarios of financing a university, G . Williams, M . Martin

Thursday, 1 June

9h00 - 13h30 Role-playing game: alternative scenarios of financing a university,

G . Williams, M . Martin

15h00 - 17h00 Role-playing game (continued)

Friday, 2 June

9h00 - llhOO Plenary discussion on alternative scenarios. Chair: J. Hallak

llh30 - 13h30 Evaluation and closing ceremony

18

Appendix IV Introductory statement

by Jacques Hallak Assistant Director-General, U N E S C O ,

Director, 1 Ш Р

O n the occasion of the opening ceremony of the Sub-Regional Workshop on Financial Management in Higher Education, 29 M a y - 2 June, 1995 at the University of Parras, at 10h30 a . m .

The subject of this workshop is a burning issue for the whole world today. Higher education around the world is going through a crisis. Financial scarcity, lack of relevance of contents and methods in the context of acceleration in the development of knowledge in general, and in information technology in particular, unemployment and underemployment of higher education graduates and public demand for accountability, among other factors, are putting increasing pressure on the institutions to become cost-effective. Moreover, w e are observing a paradigm shift in the method of educational management. Ministries are giving away more and more managerial responsibility to the institutions of higher education, retaining the regulatory and control functions for themselves. The universities of the region represented here are also experiencing the same phenomena. These phenomena call for increased managerial competence among the senior officials of the institutions of higher education.

The International Institute for Educational Planning, the Centre for training, research and dissemination of U N E S C O , observing these developments, launched in 1989, an international research programme on the problems of higher education management at the institutional level to create a knowledge base on the methods of better utilization of existing resources. It is n o w ready to share its experience with interested members of the higher education community through workshops, seminars, policy forums and training programmes in different parts of the world. Similar workshops have been held in Asia and Africa and are being organized in Latin America. The present workshop is a response to the increasing demand for the dissemination of such knowledge. At the request of the Minister of Education of Greece, IIEP was very pleased to hold this workshop for the sub-region in Greece. Participants have come from Cyprus, Egypt, Israel, Jordan, Palestine, Turkey and, of course, Greece.

Solutions to the above problems of ineffectiveness have to be sought at both policy and institutional levels. The workshop will deal mainly with the latter but will nevertheless increase awareness of what needs to be done at policy level to improve managerial effectiveness, and of the fact that MinistryAnstitution co-ordination is vital in this regard. This workshop focuses on the general aspects of university management and financial management. Finance is the key area of any institutional management. A n d , w e are hoping to achieve concrete results by sharing with you methodologies and techniques with the help of regular exercises, a simulation model and role-playing game.

19

Appendices

The variety of conditions prevailing in the countries and universities represented in this workshop is a major asset. The contrast is indeed significant, between the fast establishment of a n e w university in Cyprus, the growing responsibilities assumed by universities of Palestine in reconstructing the Palestine socio-economic set-up, the pressure for increased deregulation or self-regulation experienced by universities in Greece, while Turkey, Israel, Jordan and Egypt offer examples of a rich tapestry of settings and trends experienced by countries.

Distinguished participants, while this workshop will consist of lectures, practical exercises, role playing and computer simulation, with alternative scenarios, an important aspect of it is the exchange of institutional experiences brought here by yourselves. W e would like to learn more from each other's experience. The size of our group of country and university participants was deliberately limited to allow a vast, two-day exchange of information. Management is not a science; in m y view, it is an art which comes with practice, and I urge each of you to take advantage of talking to each other and to establish good linkages. I must express m y thanks to the relevant authorities of your institutions for agreeing to release you for the w e e k from your important functions and responsibilities.

I a m also grateful to the national resource persons w h o have agreed to take time off from their regular managerial work to be with us to share their experience.

Thanks are also due to the staff of the Ministry of Education of Greece and to the University of Patras for meticulous planning and hard preparatory work.

T h e П Е Р team consists of Professor Gareth Williams of the United K i n g d o m and M r s Michaela Martin and myself. Professor Williams' expertise in this field is going to be an asset for the workshop.

M r Representative of the M O N E R A , I would like to express again the great satisfaction m y Institute has derived from co-operating with your administration during the last three decades in the field of training and research in educational planning and management. IIEP still remembers the study visit its trainees had in Greece, as the country's guests, to acquaint themselves with its education system. IIEP is also proud to have some of its alumni holding high positions in the Ministry and the academic community of Greece, including one of the organizers of the present workshop.

I wish you all a very successful workshop.

20

Appendix V Trends in institutional management

in higher education

Introductory r e m a r k s

In recent years there have been serious changes in the management of higher education institutions. While this has been a more significant trend in Western-European universities, it is a trend that is spreading to other regions.

Universities in countries previously under centralized planning and control are undergoing significant change as a result of pressure from governments and the shift to a market-based economy. Such a period of change provides an opportunity to take a fresh look at institutions, their relevance to the needs of a changing society, their management, and their utilization of resources.

Around the world, institutions need to become more accountable to society due to the current financial situation that means that resources for public sector spending are constrained. In countries traditionally under centralized planning and control, this situation presents an even larger challenge to the higher education sector and to the individual institutions, as decision-making is increasingly devolved from the Ministry to the institutions themselves.

The concern with institutional management in higher education has become an increasingly important topic over the last decade. Within the context of evolving education systems, higher education is becoming a top priority on educational policy agenda, and its management is increasingly seen as a potential lever for change at the institutional level of higher education.

Part I: Institutional management in the university

The structure of an organization has a significant impact upon the w a y it is managed. The structure of the university has a long history. While it m a y vary somewhat from country to country, there are two basic organizational principles of the traditional university. First, they are largely organized by departments relating to the academic disciplines. A s a consequence, the major source of identification of an academic staff m e m b e r is not the institution but his/her disciplinary belonging. Second, while there are differing models of decision-making within the university, the collégial model is still fairly widespread. It is recognized n o w that the collégial model functions well in times w h e n resources are plentiful; however, it is less successful w h e n hard choices of selective resource allocation need to be m a d e .

21

Appendices

1. The organization of the university

The traditional university can be classified as a professional bureaucracy with a decentralized departmental or faculty structure. In 1976, Weick 1 identified the advantages and disadvantages of the departmental structure and what he called 'loose coupling'.

Advantages of the departmental structure are the following:

« it allows some portions of the organization to persist while others change; it provides m a n y independent remote-sensing mechanisms;

• it is good for localized adaptation - one element can be swift and economical to adapt as compared to the whole;

• any breakdown in one element can be sealed off; it gives more self-determination to actors close to the primary processes of higher education (i.e. teaching and research);

e it should be more efficient since co-ordination takes time and money .

Disadvantages of the departmental structure m a y be the following:

it is a non-rational system of fund allocation; it is incapable of being used as a means of overall change since the whole system tends to sustain overall innovation;

• any beneficial innovation cannot easily be diffused and institutionalized; e there might be some duplication in administration, negotiation, etc.

2. Decision-making in the university: the collégial model

The most c o m m o n model of decision-making in traditional higher education institutions is the collégial one: most decisions are m a d e by a community of individuals and groups w h o share c o m m o n goals and objectives for the organization.

This means that:

decision-making is committee-based, both at the central institutional and at the faculty or department level; decisions are largely m a d e according to a consensus reached a m o n g colleagues;

• arriving at a consensus is time consuming and w h e n faced with a crisis or constraints, decisions have to be m a d e quickly and cannot also be based on consensus.

During the last decade of rapidly changing socio-economic environments and resource constraints, universities have had to embark on restructuring their systems of institutional decision-making. This was done in several ways: e reducing the number of advisory structures with a view to speeding up the process of

decision-making; instituting centralized line management with direct lines of accountability;

• giving a more powerful role to the central authorities of the university in financial management and in orienting and controlling department activities; Vice Chancellors are more like chief executives and m a y be supported by deputies with responsibilities for the main resources of finance, staff, space.

22

Appendices

Part II: T h e trends in institutional m a n a g e m e n t

The combination of financial stringency and demands for improved efficiency has forced higher education institutions to:

• reduce expenditure; e seek n e w sources of funding; and • improve the utilization of existing resources.

At the same time, changing societal needs have meant:

• increased diversification in order to produce n e w types of graduates in response to the changing needs of the labour market;

e closer links with industry; and the introduction of n e w educational delivery methods such as distance learning to improve learner access.

This has contributed to:

° changes in governmental steering policies for higher education; and changes in the mechanisms, structures and styles of institutional management.

1. The first major change: governmental steering policies

T w o major types of governmental steering policies for higher education have been described2;

direct centralized planning and control as seen in some continental European countries (e.g. Austria, France, Italy, Portugal, Greece, Turkey); and

• self-regulation within a broad framework of accountability, which is to be found in the U S A and Israel (greater use of free-market incentives), and in the Netherlands, Jordan and the United Kingdom (under State guidelines).

Researchers in the 1980s showed that most government-initiated systems reforms had failed in systems with a tradition of strong governmental interference in higher education. In particular, curricular reforms and changes of governance generally were not a success. Only where the specific characteristics of higher education institutions were met, could change be achieved. O n the other hand, it was seen that innovations were numerous, but initiated and located at the grass-roots level, that is within basic units or by individual academics. They were thus of an incremental nature and they were often not disseminated due to the fragmented organizational structure of institutions.

However, from the late 1980s, and as a consequence of the failure of far-reaching reform, Education Ministries or governmental agencies concerned with higher education have changed the approach they are using for steering higher education. Instead of formerly detailed legislative frameworks and bureaucratic control, options such as steering at a distance have been adopted more recently.

23

Appendices

The trend of governments in continental Europe adopting a remote steering approach was coupled with the claim for evaluation of outcomes as a counterpart of increased institutional autonomy. A s a consequence, procedures of evaluation concerned with the performance and results obtained by higher education institutions were set up in countries like France and the Netherlands. While taking different features in a particular system of higher education, evaluation mechanisms in several Western-European countries have converged to show some or several of the following components:

a government or independent agency to oversee the evaluation system at the institutional level;

» self-evaluation prior to peer evaluation, as well as periodically, as stipulated by the institution; periodic peer review and site visits by the agency; periodic reports, post-evaluation visit by the agency, and annual reports as compiled by the institution from departmental evaluation.

The differences lie in the follow-up. In only one case, the United Kingdom, do evaluations or assessments still affect funding decisions. Most rely for their effect on publication and the veiled threat that if institutions have not acted to improve matters, the government will take the appropriate action.

The trend to self-regulation appears to offer more potential to improve management and accomplish change for the following reasons:

the individual university itself can react to government policy and changing conditions in the light of its o w n situation; individuals have more leeway for taking initiative; universities will be aware that they should not always look to government to solve problems; universities m a y undertake measures to respond to local needs.

2. The second major change: institutional management practices

It is clear that institutional management is significantly influenced by the type of governmental steering policy in force. In addition to policy, certain governments (the Netherlands, the United K i n g d o m and Israel) have become increasingly concerned not only with outputs, such as the number and quality of graduates, but also with institutional processes in general and with management methods. Thus, institutions in these particular countries have been obliged to implement change at a relatively rapid rate in m a n y spheres of their activity.

This being said, certain c o m m o n changes in institutional management can be seen, regardless of the type of government steering policy:

mission statements to clarify and disseminate internally and externally the objectives of the university;

• adoption of strategic management as a means to counterbalance organizational fragmentation and to create consensus a m o n g main institutional options and choices;

24

Appendices

• allocation of global amounts and devolving them to decision-making units and using the budget to control unit costs and ensure rational use of resources, including teachers;

• appraisal and accountability measures imposed by governments in a variety of forms to cover teaching, research, services and management;

• setting up of additional units within universities for industrial/community liaison and public relations for fund-raising activities;

• mergers and branch campuses to create institutions of an economic size.

Universities in different countries have responded to changes in their specific environment in diverse ways. Therefore, it is important to consider institutional experiences in the light of national reform initiatives.

Part III: S elf-regulation and accountability

In systems based upon self-regulation, the responsibility for the management of resources and accountability rests at the level of the institution. T w o countries serve as examples of government pressure on higher education institutions to improve management in recent years: the United Kingdom and the Netherlands.

Example O n e : T h e United K i n g d o m

In the United Kingdom, the initial impetus for change was given by the 1985 Jarratt Committee, to investigate university efficiency, which recommended:

e more business-like structures; a strong central executive authority responsible for strategic planning; the Vice-Chancellor to be chief executive and to receive management training; small high-level planning and resource committees; use of performance indicators for resource allocation decisions; staff appraisal and development; and

• greater devolution of financial management to departments.

Subsequently, in 1988, a nationwide project funded by the government to computerize key areas of management information was begun. Core requirements for statistics include students, staff, capital assets, equipment, financial data, and management statistics so as to give proper support to academic departments in devolved budgeting.

The University Funding Council has closely supervised the financial management of higher education institutions. Reduction of public funding and externally imposed competition for teaching and research funds have caused internal restructuring, such as the mergers of small departments and departments into multidisciplinary schools. This was supposed to allow a better sharing of staff resources among departments with a view to bringing d o w n staff/student ratios and unit costs3.

25

Appendices

In 1990, 31 universities found themselves in a deficit position unacceptable to the government4. The following options were offered to them:

• the closure of uneconomic departments; increasing student numbers; and

• taking on commercial activities.

The results of the government measures can be clearly seen:

one of the latest reports shows that non-central funding in some institutions increased from 5 per cent to 25 per cent of the total budget between 1984 and 1989; public allocation per student has decreased by 26 per cent per year during 1989-1994;

e university management changed in the late 1980s; Vice-Chancellors are more like U S A university presidents and spend more of their time on external relations and fund-raising;

• the number of Professional Vice-Chancellors has increased and their functions have been more specifically delineated.

Three policies have been adopted generally:

overall planning of resources; accountability, with departments acting as self-managed cost centres, with professors experiencing more intense competition in raising research money; measurement of output with a range of evaluation mechanisms5.

O n e university adopted criteria of excellence and efficiency (programmes were closed which were not attracting high-ability students) - here the key decision-maker was the Vice-Chancellor, supported by special advisory groups on budgetary and academic planning. Other universities not so affected by financial constraint put emphasis on their role as social innovators - e.g. Centre for Continuing Education - and broadening access as well as excellence6.

Example T w o : T h e Netherlands

After the introduction of the 1985 L a w on university biennial policy-making and planning, each university had to publish a planning document which served as the basis for discussions with the Ministry of Education. It was proposed that there be a three-year cycle of policy/budget/evaluation reports. Reports can lead to changes in policy, and policy or evaluation can change the budget.

The cycle proceeds as follows:

• each faculty prepares a strategic plan based on an analysis of its strengths and weaknesses in teaching and research, from which they formulate goals;

• the university plan for the next four years is then drawn up;

the plan is subsequently converted to budget decisions which specify the allocation of resources to achieve specific goals: approximately 90-95 per cent is allocated to

26

Appendices

recurrent expenditure on teaching, education-related research, administration, and maintenance; the remainder being retained to fund innovative institutional initiatives;

• evaluation is carried out according to indicators such as graduates by subject and level, supplemented by external visiting committees7.

Institutions receive a lump s u m to cover staff and maintenance costs based on the number of first-year students minus a drop-out rate. They are free to spend these funds according to their o w n objectives. However, salary scales are determined by legislation and government approval is required for posts at the highest levels. Investment is covered by project funds.

These measures contributed to the following changes:

between 1975-1990 student numbers increased by 40 per cent; the unit cost per student decreased by 27 per cent;

» the trend to inter-disciplinarity has been strengthened, and due to recent mergers, their profiles are similar instead of being diversified according to a strategic institutional profile.

Part I V : Centralized planning a n d control

Under this type of system, as might be expected, initiatives to improve the efficiency of university management are taken mainly at the centre.

1. Western Europe

The extent of centralized control in continental Europe is decreasing, for example:

the 1989 Italian law to give universities control over appointments and teaching methods;

® France's four-year regional development contracts, which allow for the participation of municipalities and enterprises in university decision-making.

Discussions have begun in France, Germany and Spain on n e w ways of steering systems of higher education, that is, increasing institutional autonomy and making the government control function more remote11.

The latest critiques of the French system as regards management reported:

although universities have just elaborated four-year plans, State annual budget engagements do not always consider the priorities laid d o w n in the development plans;

accounting procedures are archaic with no analysis and an incapacity to calculate real cost of training; m u c h time is taken getting around regulations;

• Central staff management creates rigidity12.

27

Appendices

The National Evaluation Committee has recently begun to recommend the decentralization of budgets to faculties in large universities.

2. Eastern Mediterranean countries

Example O n e : Greece

Education in Greece is the responsibility of the State according to Article 16 of the Greek Constitutions of 1975. For higher education, in particular, it states that all university-level institutions must be legal entities in public law and totally self-governing. These institutions are financed and supervised by the State. F r o m this statement it is evident that the nature of the relationship between universities and the State depends upon the definition of the two significant words: self-governed' and supervision'.

In Greece there is an exceptionally detailed legislative framework for the higher education and decisions have to be centrally approved. All relevant documentation, whether financial or academic, has to be sent to the central administration.

Despite the actual constitutional ban on private universities, there are private university-level institutions or branches of foreign universities which operate in Greece. They m a y not use the title "institution of higher education", and the degrees which these institutions award are not officially recognized. Proposals for education reforms towards increased privatization has led to mass protests, violent demonstrations and caused the resignation of the Education Minister in 1990.

Example T w o : Turkey

Higher Education in Turkey is also centralized. The current structure, established in 1981, attributes to the Higher Education Council, its Turkish acronym ( Y Ö K ) , the supreme authority for higher education21. The Y Ö K is a co-ordinating, planning, supervisory, and policy-making body for higher education. Appointment procedures for senior staff are of a uniform nature across the country. Only 7 of the 24 members of the Y Ö K are university professors. The others are appointed either by the President of the Republic or by the Council of Ministers.

There are 29 universities and 27 higher education institutions (1993)13. A m o n g the universities, 28 are run by the State and one is private. F rom the early 1970s to 1991 private universities were closed d o w n after a constitutional court ruling that the State alone m a y found universities. However , the Hacettepe Medical University Foundation kept running. Through an amendment to the Higher Education L a w in 1991, foundations are permitted again to establish private universities.

28

Appendices

Concluding remarks

Recognition of the urgency of adopting a more managerial cost-effective approach to running universities was initially resisted by academics in Western European countries. They concluded that the university is not a commercial enterprise, that it has above all a social role to play. M a n y of them did not and do not want to spend their time and energy on matters which they feel to be the responsibility of administration and the Vice-Chancellor.

In principle, efficiency requires that those using resources should ensure their optimal use and should be accountable. Hence, the trend has been to decentralization and departmental management in Western-European countries.

Lessons learned

Lesson O n e : T h e importance of management capacity in the university

O n e of the major lessons learned from the experiences of Western-European countries is that governments neglected the importance of management capacity in institutions in the past. The introduction of necessary reforms and economies m a y be hindered by a lack of expertise to implement directives, by inertia or even by outright resistance.

Lesson T w o : T h e need for management expertise at the government level

Another major lesson is the importance of university management expertise at government level. Since institutions in many countries must wait for the government to issue its directives or seek approval, Ministries should ensure their capacity to give adequate support in all domains. This means that they should play a facilitator as well as an interventionary role.

Lesson Three: T h e need to pool expertise at the international or regional level

The amount of support in the form of expertise and funding given in certain Western industrialized countries by governmental agencies for successful management reform has been extremely high. In this respect, groups of countries could profit from the setting up of regional forums to pool their expertise and experience in the field of improving higher education management. Associations of Universities have such an objective and an impetus needs to be given to their work.

Lesson Four: Internal understanding and acceptance

The proposed changes must be seen by the various actors within the university to be necessary, and appropriate steps must be introduced in a comprehensive and phased package. The integrated nature of university activities and management should be taken into account, so that funding, structures, and external pressures are all taken into consideration. This will ensure the best chance of predisposing the universities to accept change.

29

Appendices

Lesson Five: Analysis of management structures and procedures

Institutional management practices have an impact upon all the departments of the university and can ensure that the appropriate actions are taken. Ideally, reforms should be preceded by an analysis of management structures and procedures in order to ensure that they are adequate. It is essential to have a sufficiently powerful executive level to ensure overall institutional planning, co-ordination, evaluation and accountability.

Lesson Six: Better linkages of the university with its socio-economic environment

Another means of opening up the university and reinforcing the executive level has been the use of Governing Boards containing a majority of external members as steering committees. This allows universities to be better connected with their socio-economic environments. Government policies through university legislation can create a conducive institutional framework for linking universities with their environments.

Lesson Seven: T h e need for accountability measures

A s far as strategies to improve university management are concerned, it would seem that it has been realized by governments and the consumers of higher education in m a n y countries, that not enough emphasis has been put on 'accountability' measures. Evaluation on its o w n without follow-up exerts insufficient pressure. Government agencies, buffer organizations and good executive-level management can ensure 'accountability', providing that the necessary data are available and are reliable. A s w e have seen, data are very important: relevant, reliable and timely data have been the basis of successful development and change in both self-regulatory and centrally-planned systems.

Lesson Eight: Maintenance of m o m e n t u m

Once implementation of reforms has begun, measures should be put in place to ensure that m o m e n t u m is maintained. Deadlines, feedback and targets should be established. It should be noted that the length of the time period for consolidation should not be allowed to be a resistance manoeuvre.

Similarly, governments in their role as client and supervisor should try to establish a policy of continual search for improvement. Systems that have remained unchanged for a long period of time tend to perceive demands for reform as a disruption, rather than as part of the normal pattern of governance to keep the system up to date. Adaptation and acceptance of change will be an increasingly critical factor in institutional efficiency in the coming years.

30

Appendices

References

1. Weick, K . (1976). "Educational organizations as loosely coupled systems". Administration Science Quarterly, Vol. 21.

2. For example: van Vught, F. (1991). "Autonomy and accountability in government/university relations". World Bank Seminar, Improvement of higher education in developing countries, Kuala Lumpur.

3. Neave, G . (1989). "Competition and collaboration". Summary report, Symposium: Centre Strategic Management, Brussels.

4. Times Higher Education Supplement. 1990.

5. Cowen, R . (1990). "Management and evaluation of entrepreneurial university: case of England". CEPES meeting Plovdir.

6. Buchert, L . "Practice of strategic management". Summary report: Symposium on innovation policy in universities, idem (3).

7. A x , T . (1989). "The policy and budget cycle at Erasmus University." 11th EAIR Forum.

8. D e Groot, H . (1990). New financial model in higher education, the Dutch case. I M H E XGC.

9. Henry, M . (1994). The restructuring of higher education in Australia. UNESCCVIIEP Research Report N o . 99. UNESCO/International Institute for Educational Planning.

10. Iram, Y . (1992). "Centralization trends in higher education: Israel's Planning and Grants Committee", in Higher Education, the international journal of higher education and educational planning, Vol. 27, N o . 1, January 1992. Kluwer Academic Publishers, p. 36.

11. Van Vught, F. (1991). "Flexibility production and pattern man". Higher Education Policy, Vol. 4. No. 4.

12. Gusatz, M . (1991). "Seven handicaps of universities". Le Monde.

13. Turkish Republic. The Ministry of National Education (1994). "Developments in national education in Turkey", Paper presented at the International Conference of Education, 44th Session, Geneva, 1994, Ed. Ankara 1994, p. 32.

31

Appendix VI Trends noted in western European countries in

financial management of higher education institutions

Introductory remarks

Given the financial crisis, evolution and change in the environment and the need for accountability, higher education institutions in most western European countries have introduced changes in the management of finance. These changes can be considered from the perspective of the type of institution, self-regulated or centrally controlled.

The type of governmental steering policy determines to a large extent the functions and procedures included in financial management. Those depend also on the following factors:

e the type and extent of government funding; the type of institution (private/public, research/teaching); and the decision-making structure (centralized/decentralized).

The administration of a university in which the main financial decisions are concerned with allocating a predetermined s u m according to academic priorities is very different from one in which most of the important decisions concerned with, for example, the employment of staff, are taken outside the institution. Neither of these has m u c h in c o m m o n with the market-oriented university in which income is earned directly by the activities of the basic operating units and the individual members of staff within them. In the latter case, one of the main preoccupations of the managers is to establish a system of incentives that will encourage all m e m b e r s of the operating units to respond to changing market opportunities in a manner that simultaneously contributes to the income of the university and maintains its academic integrity.

Change in the functions and procedures of institutional financial management has often occurred as a response to changes in the external environment of higher education institutions, a m o n g which are the following:

most western European governments have set up directly or indirectly programmes of financial austerity for the public sector in general, and for higher education in particular; there has been continuous expansion of student numbers;

e there is increased pressure from government and the consumers of higher education for accountability;

• generally there is increased autonomy and a devolution of responsibility from the State to the institutions and from the centre of institutions to the basic units; there is more prudence in resource allocation; there is more vigilance with respect to resource utilization.

32

Appendices

Part I: The changing external environment and the institutional budget

More recently a number of changes have occurred, in particular with regard to the mechanisms by which governments allocate resources. From an approach of input steering by means of line-item budget, m a n y western European governments have introduced n e w mechanisms for the allocation of funds to their institutions.

Procedural changes in the types of budgets used

1. T h e line-item budget

The line-item budget still prevails in m a n y continental European countries. Under this system, the higher education institution receives State funding subdivided into expenditure categories. Specific amounts are allocated to each line item or category of expenditure, and the money can be spent only within these categories. Often surpluses cannot be carried forward to the next budgetary year and have to be returned.

Normally, the categories of expenditure are determined by:

input factors of higher education production functions, that is, personnel, investments, teaching and research material, travel expenses, building maintenance, etc.; organizational sub-units of an institution;

e personnel expenditure which relates to the positions to be filled.

Within this framework, the relations between State and higher education institutions can be characterized as input-steering:

* planning and control functions are integrated into the budget, with the main emphasis of planning and control on input and process structures by the tight determination in advance of the proportions of higher education input factors; there are no incentives for output, quality, or outcomes improvement incorporated in this model of higher education budgeting and usually actual funds allocated are appropriated to institutions on the basis of increments in line with inflation and staff expansion.

2 . T h e l u m p - s u m budget

Over the past decade, the gap between practices of financial management in centralized and self-regulated systems has widened enormously. Institutions traditionally or newly located within a framework of self-regulation, receive their funds in lump sums, not subdivided into expenditure and organizational categories. This allows the institution to determine h o w the funds should be allocated.

Several governments in western Europe, such as the Netherlands and Finland, for instance, have introduced lump-sum budgeting after a period of line-item budgeting. They have shifted their attention from 'input accountability' to 'output accountability'. This means that institutions are expected to report on their educational and research outcomes to the government and the public.

33

Appendices

L u m p - s u m amounts for teaching programmes are usually only a part of university funding covering, say, staff, administration and maintenance, based on the number of students priced by discipline. Research and investment are covered by other funds according to a set formula.

3. T h e formula-based budget

More recently, governments in many western European countries have adopted formulae for determining the funding level of their institutions. These formulae are intended to convey clear messages to the institutions of higher education with regard to expected outcomes, such as:

students enrolled; number of students graduating (or reduction of wastage); research performance according to peer judgment;

» research performance according to additional non-State resources attracted; number of research positions filled (in order to determine recurrent funds).

Funding formulae m a y also be based on input factors such as:

amount of space utilized; hours to be taught according to programme structure and students enrolled.

4. Special-purpose funding

It is increasingly the practice to divide up overall funding into the areas of teaching and research or by priority objectives which the government wish to achieve. Thus, special-purpose funding is used to allocate earmarked funds (funds for which the purpose has been specified). This might mean establishing a certain programme or research unit at one or several institutions, financing an early retirement or ' n e w blood' policy, funding investment, introduction of information technology, compensation for teaching overload, etc. Special-purpose funds m a y take the form of contracts: money is provided on the condition that certain objectives are accomplished within the resources available.

5. Incentive budgeting

Finally, some governments have initiated schemes of incentive budgeting (additional government money is deployed to achieve certain impacts). Incentives might also be directed towards more general goals, such as quality improvement, shortening of the duration of studies, or it might be focused on some specific goals such as influencing the subject group balance in favour of certain subjects. The main feature of incentive budgeting is a limited amount of funds with impacts on government priority areas. However, institutions are requested to submit innovative projects to government and the final decision for funding remains with it.

34

Appendices

F r o m the above-mentioned innovations, one can conclude the following:

• there is a trend of granting more financial autonomy in countries previously under centralized planning and control in the form of lump-sum allocation; however, institutions traditionally self-regulated have experienced more governmental interference. There is a trend to divide lump-sum budgets into special-purpose funds (teaching and research related) as well as retaining a limited amount of overall funding for innovative initiatives.

A s a consequence, it appears that institutions in both self-regulated and centrally-planned systems of higher education receive the resources needed in the form of multiple budgets, according to different criteria. This has resulted in more autonomy and more flexibility with respect to the allocation of funds within institutions. At the same time, State appropriations, at least in terms of unit cost per student, have been reduced.

Diversification of resources by means of contract research, consulting and the provision of continuous education services are becoming increasingly important as sources of funding. They are viewed1, as a significant n e w funding mechanism in western European countries. In the western part of Germany, for instance, external earnings of institutions have increased by 50 per cent over the last 15 years; the industrial component having risen rapidly by 130 per cent between 1980 and 1985.

In recent years w e have also witnessed a polarization of financial management systems:

in traditionally or newly self-regulated higher education institutions, financial management has become m u c h more akin to business management, involving decisions on income-generating activities, savings and investments (in trusts, business parks or companies) as well as the purchasing of equipment, maintenance, accounting, financial control and audit, which requires that a long-term view be taken of the institution's development in line with strategic aims; in centrally-planned institutions, which are still numerous in the western European context, financial management is still equivalent to an annual budgeting exercise, involving accounting and control of relatively small recurrent expenditures: investment in buildings and equipment being decided by the Treasury or Ministry of Education, w h o also pay the salaries of staff.

Part II: C h a n g e s in institutional financial m a n a g e m e n t in western

industrialized countries

1. Institutional financial management under self-regulated systems

The need for sound financial control necessitated m a n y of the changes in university management, such as:

• the strengthening of central management; the re-grouping of basic units to act as cost centres;

35

Appendices

the upgrading of a m e m b e r of the finance staff to Deputy Vice-Chancellor for Financial Affairs or the inclusion of a Financial Manager in the top decision-making group; mission statements, so as to measure performance against an institutional profile and orient allocations to priority areas.

The United Kingdom and the Netherlands provide interesting examples of change within a self-regulated system. S o m e experience from Israel and Jordan will also be reviewed. Probably the most radical changes have taken place in the United Kingdom.

Example O n e : T h e United K i n g d o m

Since the early 1980s in the United Kingdom, government policy has been dominated by the:

• concern to reduce public expenditure per higher education student; e need to increase efficiency by encouraging universities to earn income and also to be

m u c h more strictly accountable for grants received, a requirement which has become increasingly important in the 1990s.

The first round of cuts in the early 1980s ranged from 6 to 30 per cent according to the institution. S o m e special arrangements mitigated the worst effects, such as, early retirement compensation and protection of priority engineering and technical programmes. Subsequently, strategies focused on separating resources for teaching and research and making funding conditional on delivery.

The 1988 Education Reform Act gave both greater autonomy for resource management of institutions and also set stricter accountability measures, based on the argument that resources are likely to be used more effectively if those responsible for educational services are given m a x i m u m discretion to deploy them in response to local needs.

The Universities Funding Council (UFC) initiated a system of funding whereby institutions put in bids for certain numbers of student places by broad bands of disciplines. In practice, the system was only accepted by the public sector institutions. The university sector demonstrated its reluctance to bid too low and thereby force d o w n the unit of funding even more. A s a result, in 1991 the U F C abandoned the system and set only provisional targets. A s of 1992 it was decided that for the next two years universities would be guaranteed only the number of funded places allocated for 1991-1992. A n y decisions on increases were to be based on the proportion of students at a university above the funded number.

In short, the government had found a way of securing expansion at low marginal costs and higher education institutions were obliged to accede in order to obtain their funds. F rom 1989 to 1993, public spending per graduate in Britain has dropped every year by 26 per cent.

36

Appendices

This restructuring of financial sources imposed great strains on the management of institutions, with a number of results:

• m a n y of them devolved budgets to the departmental level, either including or excluding staff salaries (the latter make up 72 to 90 per cent of department expenditure);

• most institutions also appointed or increased the number of senior officers concerned with fund raising, industrial liaison and overseas students;

e more information was made available within the institution for accountability and decision-making purposes;

the quantity and quality of comparative information is n o w improved, particularly with the annual publication of University Management Statistics and Performance Indicators, which oblige institutions to ask questions and seek reasons for variance; therefore, it is n o w possible to compare expenditure on central administration, libraries, computers and premises;

programme budgeting has been generally adopted and the cost per student per annum by discipline is n o w compared between universities.

Most universities have adopted some type of formula funding in allocating resources internally, e.g. weighting such as 1 P h . D = 3 undergraduates for the purpose of staff, library and laboratory allocations, as well as norms and ratios. S o m e maintain central control over academic and support staff establishment; others allocate all funds, after taking off the resources necessary for central administration, to faculties to be shared by consensus among the departments.

Thus there is a n e w emphasis on the department as a performer and the pressure of competition between departments. Management of finance is considered to be one of the critical tasks for the next decade. N o w the arena for action of Finance Officers in the United Kingdom universities is increasing. The skills needed to find ways round a rapidly changing higher education system, with n e w funding structures and n e w penalties, has meant a rise in the need for very alert, skilled professional administrators.

Example T w o : T h e Netherlands

The Netherlands adopted a different method of funding: from a tradition of central planning and control, institutions receive n o w a lump sum to cover staff and maintenance based on the number of first-year students minus drop-outs, which they are free to spend according to their o w n preferences. However, salaries are limited by legislation and government approval is required for the highest posts. Investment is covered by project funds, and research funds are allocated on Full Time Equivalent (FIE) academic staff and according to past levels. Ex-post evaluation of research projects and study programmes have been introduced. A s in the United Kingdom, student numbers increased and the unit cost per student decreased.

37

Appendices

Under this funding system:

• institutions must adapt their capacity to changing demands and the job market;

• they must assess their output in terms of quality and deliver performance reports to the Higher Education Inspectorate for 'meta-evaluation';

• programmes of study are to be more flexible, i.e. modular;

e each institution will also be given a mission budget to finance innovative projects and centres of excellence.

Universities reacted differently to the n e w type of funding. The small and n e w University of Twente decided it would have to m a k e some very radical changes if it were to survive in an economically deprived region of the country. It divided its annual government funding into 85 per cent for distribution to the faculties and 15 per cent for incentives and n e w , strategic areas. Faculties were pressured to seek income and rationalize their programmes by making them cost centres, to which all costs are charged (even overheads and charges for renting teaching and research space). Budgets (in line with the national funding system) are output based (combination of student numbers and graduate output). A n e w accounting system was introduced and a separate business organization (science park) established. The system has been working for several years n o w and is acknowledged to be the most advanced in the Netherlands. The university no longer has financial problems, self-generation of income has been increasing rapidly and so are student numbers. However, this entrepreneurial style of financial management brings other problems: faculty staff have to be given a great deal of training and explanations (some are still not yet fitted for the job). Also, in order to be able to establish output-related costs, there must be an efficient management information system which can give precise results.

Example Three: Israel

The main sources of income of Israeli higher education institutions are: (i) State funding determined and paid by the Planning and Grants Committee ( P G C ) , (ii) income from current donations, (iii) revenue from endowment funds, (iv) tuition fees, (v) public and private research contracts and grants, at h o m e and abroad, (vi) sales of services (including teaching services). In the 1980s, the P G C provided 55 to 75 per cent of the ordinary budget of higher education institutions. The P G C operates through five budgetary channels: the direct global allocation, matching allocations, allocations for research, earmarked allocations, and allocations for development. Through each of these channels, and by determining their relative share in the general budget, the P G C exerts influence on the development of higher education.

Israeli's Planning and Grants Committee was created in 1974, to function as a buffer between the higher education institutions and the government in financing institutions. The majority of its members are academics, with a view to guaranteeing freedom from State interference in academic matters while providing mechanisms for accountability. The powers of the P G C have considerably increased over the past decade. It assumes n o w a role in evaluating the performance of higher education institutions and allocates a part of the funds accordingly. Performance indicators used are number of students and graduates by degree,

38

Appendices

level and field of study, the value of research grants, scope and quality of research in the institutions. Thus, the P G C determines annually the allocation to each institution, based on its work programme, proposed development, and on its research output as well as its training of highly skilled professionals3.

Example Four: Jordan

The budgeting system of the university sector in Jordan has one unique aspect to it: the University Tax L a w imposes a tax on goods and creates thus a permanent resource in the budget of Jordan's universities. Such a mechanism is supposed to contribute to the financial autonomy of higher education institutions. However, since this resource is tightly linked to economic conjuncture, the repercussions m a y at times be severe.

In Jordan, State subsidization of higher education institutions represents the major source of income, however donations and student fees contribute a significant proportion of institutional income4.

2 . Financial management in universities under centralized planning and control

Example O n e : France

In France, the first steps to change financial management began in 1989, when the Ministry of Education started a system of four-year contracts which n o w cover 64 universities, as well as providing supplementary credits for development of new innovative projects proposed by institutions. Universities have been motivated to define their strengths and weaknesses and, for the first time, have taken part in a global debate.

The contract system showed up the archaic nature of university financial management; the norms to distribute credits covered only number of students and surface area. Running costs per discipline were not known. The Ministry and universities are n o w experimenting with new procedures and tools, including computerization. Funds for basic running costs were to be calculated on standard criteria.

In order to establish the criteria for basic recurrent expenditure, studies were being undertaken in seven universities and credits were to be based on this analysis in 1993. Institutions would have to accept some real autonomy, presidents could have more power and could require better administrators, while department heads could also have the responsibility to work within the set allocations. This is considered to be a revolutionary m o v e , given the long years of centralized management.

Other continental European countries have as yet made only minor changes to funding, not having m a d e the critical decision to allow for self-regulation.

Example T w o : Greece

The present financial control in Greece is centralized and strict. It is exercised by the public auditing services in a w a y that reduces to a large extent the managerial autonomy of higher education institutions.

39

Appendices

However, any m e m b e r can do consulting for public or private customers as long as it is done 'within' the university: the university receives 10 to 15 per cent of the total income. There is a Special Research Funds Committee, which operates independently of the university or of the Public Auditor, essentially like a private consulting company with its o w n operating budget and staff. There seems to be no enforced upper limit on the amount thus earned by a staff m e m b e r per year. E E C research funds and Ministry of Industry, Research and Technology funds, are allocated on a competitive basis to the universities (submission of proposals, evaluation by peers, etc.) through the Special Research Funds Committee5.

A subject of reform under discussion is the foundation of private universities. Despite the constitutional prohibition, this subject has been discussed by the government for some years n o w . A m o n g the supporters of this idea are those w h o believe that private universities might reduce the exodus of Greek students abroad.

E x a m p l e Three: Turkey

The major source of income of Turkish universities is the State subsidy. However, universities m a y generate extra-budgetary resources through contracts, research projects and consulting services with industry.

Through the Council of Ministers, the Turkish Council of Higher Education ( T C H E ) , a parastatal body, submits a lump-sum demand for financing the universities to parliament, taking into consideration the individual budgetary demands of all the universities. Every fiscal year, the budget thus allocated for each university consists of capital investment and recurrent expenditure.

Concluding remarks

Even within the most well-run institutions there is normally some excess capacity. This means that there is some room to manoeuvre within budgetary constraints, and this knowledge can provide an incentive for staff to attempt to achieve more under an existing budget allocation. Research has shown that better performance can be obtained if those concerned with academic and administrative decisions have a say in the budget which will subsequently be used to evaluate their performance6.

H o w m u c h financial devolution there should be to the departments and other basic operating units will, according to O E C D (1990)8, be one of the key management issues of the 1990s.

The arguments in favour of more departmental autonomy are:

• it will encourage a greater sense of responsibility in the use of resources, since opportunity costs are more easily appreciated in small decision-making units;

• departmental loyalty is more likely to encourage individual members to seek outside funds for the benefit of the unit as a whole;

40

Appendices

• comparisons of performance indicators between independently-managed departments can help central administrators judge the relative efficiency with which different activities are being carried out.

The arguments against department financial autonomy are:

• The smaller the cost centre, the less likely it is there will be staff with the necessary expertise to take meaningful resource allocation decisions: the siting of cost centres is at present either at departmental, faculty or central level, depending on the size of the institution and its managerial ethos.

If too m u c h time in academic departments is spent on management issues, this will conflict with the performance of their central academic tasks.

Decisions on the academic staff salaries cannot be fully delegated to small departments because they constitute such a large proportion of total costs that relatively minor variations in individual salaries can have a major effect on the finance of a relatively small cost centre. In m a n y countries, the main decisions on the academic staff establishments are still taken outside otherwise autonomous universities for similar reasons.

e Departmental financial autonomy also requires an up-to-date computerized management information system to keep all concerned informed and provide the necessary continuous monitoring and control system.

O n e can conclude that the trend of devolving authority over budgets to the basic institutional units is likely to spread to m a n y more countries worldwide. However , there should be evaluative work done in order to analyse both the extent to which intended outcomes have been achieved and what unintended results have occurred.

41

Appendices

References

1. Taylor, M . G . (1991). " N e w financial models: Summary report in higher education management", Vol. 3, N o . 3, November.

2. Cleverly, J. (1987). "The concept of enterprise and the Chinese universities". In Comparative Education, Vol. 23. N o . 3.

3. Iram, Y . (1992). Article on Israel in: The Encyclopedia of Higher Education, Vol. 1, National Systems of Higher Education, Editors in Chief: Burton R . Clark and G u y R . Neave, Pergamon Press, Oxford, N e w York, Seoul, Tokyo, 1992, pp. 343-355. A n d Iram, Y . (1992) "Centralization trends in higher education: Israel's Planning and Grants Committee" in Higher Education, the international journal of higher education and educational planning. Vol. 27, N o . 1, January 1992, pp. 33-44, Kluwer Academic Publishers.

4. A b u Sheikha, M . (1994). 'The development of education in the Hasheimite Kingdom of Jordan 1993-1994. Presented at the International Conference on Education, Geneva 1994. Published by: The General Directorate of Planning, Research and Development, Ministry of Education, p. 34.

5. Keils, H . R . (1990). "The development of performance indicators for higher education. A compendium for seven countries". Programme for Institutional Management in Higher Education. Organisation for Economic Co-operation and Development. Paris, p. 63.

6. Arnold, J.; Hope, T . (1989). "The budgeting process in financial management in education". Open University, Milton Keynes. United Kingdom.

7. Simkins, T . (1989). "Budgeting as a political and organizational process in educational institutions". In Financial management in education, Open University, Milton Keynes. United Kingdom.

8. O E C D (1990). "Changing patterns in finance of higher education". In Innovation in Education, N o . 55. February.

42

Appendix VII List of papers presented

A reflection of the organizational structure of Yarmouk University and its budget deficit by Professor A . Magableh.

The Palestinian Council of Higher Education, Problems of management by Professor Baramki.

The Higher Education Council in Turkey by Professor Eke.

General aspects of institutional management at the Middle East Technical University (METU), Turkey by Professor Giirkan.

Managing growth within a university: the case of the Open University of Israel by M r Or.

Management of finance at the University of Cyprus by Dr Vakis.

Management of finance at the Jordan University of Science and Technology by M r Alomari.

Management of finance in the Turkish universities: The Gazi University case by Professor Dîkeç.

Financial management at Birzeit University by Dr Sarsour.

Managing research at the Hebrew University of Jerusalem by Dr Dover.

Financial management at the University ofPatras by Professor Liberatos.

The cost of education and financial adjustment to fiscal stress: experiences from Yarmouk University by Professor A d w a n .

43

Appendix VIH Problems of Management

Council for Higher Education

by Professor Gabi A . Baramki Secretary-General

A . The Council for Higher Education

T h e Council for Higher Education was established in 1977, to co-ordinate the work amongst universities and to give them support - both financial and legal/moral in the absence of a national government to handle such problems. It was composed of about 50 members from the academic community and the public - mayors, professionals and representatives of major institutions in the country. This body (general assembly) elected an executive committee that handled the day-to-day affairs of the Council.

T h e Council functioned as the highest body in charge of higher education. It helped finance the running costs of the universities, set up committees to look into accepting n e w colleges and specializations, co-ordinated the work amongst universities, and generally represented the universities collectively with international bodies wherever the need arose.

T h e Council changed its mandate in 1990 to include, in its responsibilities, community colleges and schools (primary and secondary) that were not under the direct jurisdiction of the military authorities. This situation continued until September 1994, w h e n the education portfolio was transferred to the Palestinian Authority and the Ministry of Education and Higher Education was set up with the Council taken under its umbrella.

T h e Council for Higher Education is part of the newly-established Ministry of Education and Higher Education, and is supervising and co-ordinating the activities of the different institutions of higher education in Palestine, within the framework of national policy.

T h e Council's mission as stated in its by-laws is to plan and co-ordinate higher education in the West B a n k and Gaza Strip, and to draw up and implement general higher education policies. A s such, the Council is responsible for:

• setting goals and plans for higher education; « accrediting existing programmes in the universities;

securing and distributing financial resources to the different institutions as well as supervising yearly budgets;

• approving the establishment of n e w programmes and institutions of higher education according to precise criteria;

• deciding on the fields of specialization of each institution; • supervising general admission policies;

encouraging scientific research and facilitating inter-university co-ordination; establishing inter-cultural co-operation links with foreign institutions;

• providing information on higher education in the country.

44

Appendices

В. Management structure of the Council

T h e Council at present is m a d e up of 16 m e m b e r s . It is headed by the Minister of Education and Higher Education. All eight presidents of the Palestinian universities are m e m b e r s of this Council, and the following eight universities are represented in it:

A l Q u d s University, Jerusalem Al Q u d s O p e n University, Jerusalem Bethlehem University, Bethlehem Birzeit University, Birzeit Hebron University, Hebron A n Najah University, Nablus T h e Islamic University, Gaza Al Azhar University, Gaza

All universities have their o w n administrative organization, with a President, a Vice-President, a Board of Trustees, colleges headed by a D e a n and administrative councils at the department, college and university levels.

T h e Council at present is run by an office consisting of the Director (Secretary-General), a co-ordinator and assistants that handle different activities of the Council. T h e Council office executes decisions taken by the Council and follows up on policy matters.

T h e following are the areas of activity of the Council's work:

(a) relationship with the Palestinian universities; (b) international contacts with academic and other bodies; (c) setting a general strategy for Palestinian higher education.

(a) Relationship with the Palestinian universities

T h e Palestinian universities started as non-profit, private organizations but all along enjoyed national support and public funding (direct and indirect). T h e universities n o w c o m e under the umbrella of the Council, which has responsibility for the following:

(i) Finance

All public funds are channelled through the Council and distributed amongst the universities in accordance with a formula agreed upon by the Council. T h e Council also suggests the fees for the universities annually and the salary scale for all personnel.

(ii) Co-ordination amongst universities

This function aims at streamlining the work of the universities and helping to improve efficiency in certain activities. It takes the form of arranging meetings of heads of departments such as finance, libraries, admissions offices, computer centres and others, to work on, and find solutions for, c o m m o n problems. The Council also supports the training of personnel in these universities whenever possible. T w o projects have already taken shape -

45

Appendices

one, the forming of a c o m m o n library index for all university libraries and a periodical list, in order to cut costs to universities and to improve the availability of reference materials for them - and two, starting a network system amongst universities and hopefully connecting them all to international networks and databases.

(iii) Quality control

The Council has established a section for the accreditation of existing programmes in the universities and will also set criteria for establishing n e w departments or colleges. This is with the intention to construct quality programmes that comply with international standards.

(b) International contacts with academic and other bodies

The Council plays a focal role as a co-ordinating body with international institutions in the following activities:

(i) U N E S C O , with its various programmes dealing with higher education

In this case the Council acts as the national government counterpart dealing with U N E S C O . All collective projects for universities, as well as individual projects to be supported by U N E S C O , pass through the Council for approval and co-ordination.

(ii) P E A C E (Palestinian-European Academic Co-operation in Education) Programme

The programme was established under the umbrella of the Council and continues to operate as such. It has opened the door to co-operation between European and Palestinian universities in the areas of student and staff mobility and research. The programme received financial support from both U N E S C O and the European Union and a second phase of the programme will be launched soon.

(iii) Relations with governments interested in supporting higher education (through foreign ministry aid programmes) are conducted through the Council

The Council also acts as the contact point with national Associations of Universities or similar bodies. In this context, the Council also arranges programmes for visits of such bodies to the various Palestinian universities.

(iv) Relationship with funding bodies (EU and others)

This is an important function of the Council at this stage, where funds for the recurring costs of the universities are quite scarce, and at a time w h e n the National Authority is unable to support such activity from funds of its o w n . The work includes preparing the proposals, distribution of funds and reporting on such activity.

46

Appendices

(с) Setting a general strategy for Palestinian higher education

This is a task that the Council is undertaking in its o w n n e w structure. A working document was prepared by an ad hoc committee for the strategy of higher education in the coming five years. This was followed by a workshop, and a report will be issued soon outlining the various aspects to be followed. Essentially, there will be stress on high-quality education and the student as the major force of change and development in the newly-formed Palestinian State. Preparing the future leaders in the various fields, also means filling the gaps of fields not available at the universities at present. Also of great importance is the multiplicity (not duplication) of programmes within the framework of unifying the Palestinian people in the various areas, both in Palestine and the Diaspora. There are at present seven universities in Palestine and one open university, and the strategy involves strengthening these universities rather than allowing new ones to crop up - especially private colleges established as investment centres.

C . Current problems encountered

The main problem encountered by the universities is that of funding. In the absence of regular government support, this means over-reliance on external funding, which is not regular and not dependable. This makes it very difficult for universities to plan ahead and develop in the areas needed by the community. Until such time when the P N A (Palestinian National Authority) is able to collect its o w n taxes and form a reliable annual budget, this issue (finance) will remain the most pressing one.

Another problem is the lack of co-ordination amongst the universities, especially in the establishment of new programmes (where, which university and h o w ) . This is also partly related to finance. But quality-control of programmes and ensuring that all universities abide by it, will be a challenge for the Council as it will be the first time that such an issue is handled centrally.

Naturally superimposed on all this is the continued occupation of the West Bank (including East Jerusalem) and the difficulty of movement from one part of the territories to another, both for students and faculty members. It is true that the universities - by and large - are no longer closed by military order, but the closing of Jerusalem and Gaza led to consequences in terms of poor co-operation and co-ordination amongst universities and it does not improve the efficiency of the university system.

D . T h e universities

Background information

Higher education in Palestine is generally at an undergraduate level, with universities organized on an American system and delivering B.A./B.Sc.-level degrees. Students enrolled for B.A./B.Sc.-level studies for the year 1993-94 totalled 24,922, out of which close to 38 per cent were w o m e n , distributed among the eight universities and the three community colleges offering four-year programmes. Only a few graduate programmes exist, totalling some 225 students. Studies thus require four to five years (five to six years for most engineering degrees). However, in the past few years, students have shown that, due to the difficulties

47

Appendices

generated by an abnormal political situation, it took a liberal arts student an average of five to seven years to complete his/her degree.

Students do not necessarily attend the university closest to their place of residence, but m a k e considerable efforts to attend the university of their choice which, especially for students coming from the Gaza Strip and needing a certain number of permits from the Israeli authorities to c o m e to the West Bank , is not without creating additional and specific legal problems. In view of the limited opportunities and difficulties they have lived under through the years, Palestinian families have c o m e to value their children's education as the first necessary step towards better living conditions, thus also explaining an increasing number of female university graduates.

The existing institutions of higher education in Palestine were founded in the 1970s under constant harassment by the Israeli military occupation. Indeed, in addition to the severe restrictions imposed on the freedom of movement , often making it difficult for students and faculty m e m b e r s to access campus facilities on a regular basis, military-ordered closures were imposed on the universities for periods of 36 to 51 months. The different institutions responded with amazing creativity and flexibility, organizing classes in private houses and rented apartments in the neighbouring towns, and, in spite of the extraordinary conditions, enrolment continued to increase over the years.

D u e to the political and economic situations, Palestinian education has been supported over the years mainly through external private or organizations' donations, with tuition fees covering only about 15 per cent of general budgetary needs. However , during the Intifada, and even more so in the years following the Gulf war, external funding, especially from Palestinians in the Gulf, was substantially reduced, if not altogether halted, burdening the universities with an important financial crisis. This situation has m a d e it increasingly difficult for all Palestinian institutions to develop normally, having difficulty in covering basic operational costs, such as the payment of employees, let alone able to strengthen and develop academic facilities and programmes.

All universities function on a semester basis, with the exception of Al Azhar University in Gaza, which is yearly based. H u m a n resources are beyond doubt one of the Palestinian universities' greatest riches, with more than half of faculty m e m b e r s having graduated from renowned American and European institutions. The rest mostly hold degrees from good Arab and Eastern-European universities, and a few graduated from Israeli universities.

48

Appendix IX General aspects of institutional management

at the Middle-East Technical University

by Professor Dr Türker Gürkan Vice-President

I. T h e University

The Middle-East Technical University is devoted to the pursuit and application of knowledge for the social, cultural, economic, scientific and technological development of our society and mankind through achievements in teaching, research and community service that are of the highest international standards.

It is one of the several State universities which are distributed all over the country. O f the 57 universities 53 are State owned, while the remaining four are private. The total number of undergraduate students admitted to the Turkish university system was 215,000 in 1994. A total of 3,354 students were admitted to M E T U in 1994. O f these 1,260 were w o m e n . The number of foreign students admitted was 164. N e w M . S . students in 1994 were 920; while 152 students started the P h . D programmes.

M E T U is situated about 7 kilometres from Ankara, the capital of the Republic of Turkey. The medium of instruction is English. It is regarded as one of the most prominent technical universities in Turkey. Therefore it attracts some of the best-qualified students in the country.

Tables 1-2 show the distribution of student enrolment and academic personnel among various faculties and departments. Table 3 shows the number of academic staff by rank.

49

Appendices

Distribution of student enrolment among faculties and departments.

Table 1. Student enrolment (1994)

FACULTY

Engineering

Arts and Sciences

Architecture

Economic and Admin.

Education

Grad. School of Marine Sciences

Vocational School of Higher Education

DEPT.

Elea/Elect. Mechanical Civil Chemical Mining Petroleum Industrial Metallurg. Geological Eng. Sei. Env. Computer Aeronaut. Food T O T A L

Math. Sociology Chemistry Psychology Physics Philosophy History Biology Statistics TOTAL

Architect. City & Reg. PL Ind. Des. TOTAL

Pol. sei. & pub. adm. Managemt. Economics Int. relations TOTAL

Sei. ed. Ed. sei. For. lang. ed. Phys. ed. & sports T O T A L

-

Food Tech. Welding Automation DepL of Fine Arts and Music T O T A L

GEN. TOTAL

PREP. S C H O O L

103 138 109 78 51 31 51 64 52

41 48 38 49

853

96 75

139 93

145 74 73 52 66

813

46

40 21

107

127 83 99

52 361

326 57

51

133 567

-

38 43 42

123

2,824

BACHELORS

950 974 885 546 244 153 331 401 239

249 329 162 281

5,744

467 220 497 251 628 147 179 270 495

3,154

368

241 137 746

566 625 608

256 2,055

882 170

379

198 1,629

-

23 12 26

61

13,389

M A S TERS

247 222 194 44 54 19 62 80 30 16 38 86 35 36

1,163

29 33 95 31 45 26

31 19

309

120

66

186

47 115 87

72 321

21 36

41

9 107

6

-

2,092

Ph.D

76 46 42 23 31

7 16 18 23

9 6

29 7 9

342

13 29 31

20 24

24 6

147

44

31

75

11 30

1

42

11 30

42

10

-

640

Special*

16 6

13 3 3 1 3 3 2 1 3 7 4 2

67

5 10 6 3

12 4

6

46

3

5

8

2 3 6

11

2 3

6

11

-

1

169

Conditional**

3

13

9

3

28

9

1 9

1 1

21

1

1

2

8

8 16

5

1 6

-

-

73

T O T A L

1,395 1,386 1,243

694 383 211 476 566 346

35 337 499 249 377

8,197

610 376 760 378 851 284 252 384 587

4,490

582

384 153

1,124

753 835 827

398 2,813

1,247 296

478

341 2,362

16

61 55 68

1 68

19,187

* S P E C I A L : Non-degree students ** C O N D I T I O N A L : Students taking prerequisite courses for master's and doctoral

programmes 50

Appendices

Distribution of academic personnel a m o n g faculties and departments.

Table 2 . Academic personnel (1994)

FACULTY

Engineering

Arts and

Sciences

Architecture

Economic and

Administrative

Sciences

Education

School of

Foreign

Languages

DEPARTMENT

Elec/ El.

Mechanical

Civil

Chemical

Mining

Petroleum

Industrial

Metallurgical

Geological

Eng.Science

Env.

Computer

Aeronautical

Food

TOTAL

Mathematics

Sociology

Chemistry

Psychology

Physics

Philosophy

History

Biology

Statistics

TOTAL

Architecture

City & Reg. PL

Ind. Design

TOTAL

Pol. Sei. & Pub.

Admin.

Management

Economics

Int. relations

TOTAL

Sei. education

Ed. science

For. lang. ed.

Phys.ed.& sports

TOTAL

Basic English

M o d . languages

T O T A L

Grad. Seh. of Social Sciences

Grad. Sch. of Nat. & A p p . Science

Grad. Sch. of Marine Sciences

Voc. Sch. of Higher Ed.

President's Office

G E N E R A L T O T A L

PROF.

29 33 29 16 8 2 5

14 7 8 6 6 5 6

174

13 3

26 6

22 3 3 8 5

89

10 10 0

20

4 7

10 1

20

8 6 6 0

20

0 0 0

0

0

7

0

0

332

ASSOC. PROF.

14 11 8 3 7 2 4 2 5 2 4 3 4 3

72

8 4 9 0

17 1 3 6 0

48

2 4 0 6

4 2 6 4

16

4 3 5 1

13

0 0 0

0

0

4

1

0

160

ASST. PROF.

5 5 7 1 0 5 6 5 4 4 2 9 2 4

59

9 3 4 3 9 1 0 3 1

33

5 5 2

12

5 3 4 3

15

4 6 3 2

15

0 0 0

0

0

7

4

0

145

INSTR.

8 5 6 2 0 0 2 0 2 2 0 3 0 0

30

7 3 0 2 5 2 1 2 2

24

11 7 7

25

3 2 1 0 6

2 2 2 1 7

127 24

151

0

0

1

5

0

249

RES. ASST.

60 57 50 36 21 12 27 24 21

8

13 24 11 15

379

33 6

58 6

49 9 4

21 8

194

35 18 7

60

21 23 16 11 71

17 5 7 8

37

0 9 9

20

28

17

49

0

864

OTHERS *

3 3 4 4 3 1 2 9 1 1 1 2 0 1

35

0 0 4 0 3 0 0 2 1

10

3 2 2 7

0 0 0 0 0

1 1 1 0 3

1 0 1

0

0

0

1

135

192

TOTAL

119 114 104 62 39 22 46 54 40 25 26 47 22 29

749

70 19

101 17

105 16 11 42 17

398

66 46 18

130

37 37 37 19

130

36 23 24 12 95

128 33

161

20

28

36

60

135

" "

Others: Lecturer, Specialist, Educational Planner, Translator 51

Appendices

Table 3. Staff by rank (1994-1995)

Rank

Professor Associate Professor Assistant Professor Instructor Lecturer Research Assistant

Quantity

332 148 327 306 162

1 065

2 340

II. University management structure

(i) Autonomy

M E T U operates within the general terms dictated by the Charter of Higher Education. Most of its funding comes from the government. The funding is allocated by activity (line budgeting). The decisions with respect to operational and investment budget are eventually m a d e by the Ministry of Finance and the State Planning Organization. The University has rather limited autonomy in regard to the State funds.

Although general operational parameters are set nationally by the Higher Education Council, the University has freedom in setting its curricula and academic rules and regulations. N e w faculties can only be established by the National Assembly, while departments and n e w academic programmes are authorized by the Higher Education Council.

Student admissions at the undergraduate level are based upon a nationwide entrance examination organized by the Higher Education Council. Thus the students are admitted based on the choices that they m a k e and their relative ranking in a two-level examination. The University has more autonomy in admission of graduate students.

52

Appendices

Governance structure

Figure I. University-wide level

President

University Board (Deans and 3 elected

faculty)

Senate (Deans, Heads of Schools

elected faculty)

Committees on administrative matters (mixed academic and

administrative personnel)

Committees on academic matters

(academic personnel)

Faculty level

Dean

Administrative Board (Dean and 6 elected faculty)

Academic Board (Dean and Department Heads,

6 elected faculty)

53

Appendices

F I G U R E 2. O R G A N I Z A T I O N A L S T R U C T U R E

Faculties Schools Centres

University Board

Vice Pres

President

idents

Academic Units

Senate

and Assistant Presidents

Secretary General

Administrative Units

Sections Offices

54

Appendices

The organizational structure of the University is dictated by the Charter of Higher Education. Thus there is relatively little flexibility in making structural changes. However, it has created the posts of four assistant presidents. A n industrial liaison office is a recent addition.

The organization, in general, allows for adequate vertical and horizontal flow of communication. The information flow is not at the desired level: this is not, however, due to the organizational structure, but is related to insufficiency of procedures for information flow and reporting practices.

Ш . M a n a g e m e n t information

The following information is collected and analysed each year with respect to various activities (the ones with* indicate the performance indicators):

Educational activities

The ranking of the departments in terms of choices m a d e by the entering students.

* The ranking of the departments in terms of success of students at the nationwide entrance examination.

The success of students in courses that they take at different faculties and schools.

* Ratio of graduates to total student population for each discipline.

* Ratio of graduates to faculty number for each department.

* Student load per faculty for each department.

Distribution of foreign students among departments.

Personnel

e Distribution of faculty and other personnel among departments.

e Distribution of faculty with external duties in other universities and public affairs.

The numbers of faculty promoted, added or lost for each rank for each department.

Research and publications

* The number and budget of contract research projects for each department.

* The number and budget of grants for each department.

* Relative ranking of the universities and the faculties in terms of the share that they get from funding agencies.

55

Appendices

* The number of total publications produced for each department.

* The number of publications included in SCI for each department.

* N u m b e r of presentations at Conferences per faculty and its distribution.

* N u m b e r of publications included in SCI per faculty and its distribution.

Budget and funds

• Government appropriations and their distribution a m o n g units and activities.

« Income generated through student fees.

* Income generated through contract research and its distribution among departments.

• N e w equipment.

Construction.

Miscellaneous

e The number of students with scholarship.

The number of students living in C a m p u s .

The number and distribution of cultural activities.

e The number and distribution of sport activities.

Administrative computing support is provided through the Computer Centre. Additionally several administrative units have their o w n computing systems. Computers are used for:

staff records/payroll;

student admissions and administration;

budgeting and accounting;

e interactive registration;

library automation;

• communication, transfer of files and documents.

56

Appendices

IV. Quality control

The following are used for quality control of outputs:

Ratio of students successful in entrance to graduate school.

• Evaluation by international accreditation boards.

Evaluation of faculty by students.

N u m b e r of publications in SCI.

V . M a n a g e m e n t of external relations

Contract research mechanisms have been in existence within the University administrative system for over 20 years and there n o w exist well-established procedures for its administration and management. Contract research provides significant income to some of the academic units. The administration and accounting is carried out by a separate department employing seven personnel. Contract research mechanisms provide for consultancy, public services, patent evaluation, testing and measurement.

The University serves the local and national community in the following ways:

it acts as a reference laboratory;

continuing-education courses are widespread (there exists a centre);

e access to the library is provided for researchers of other universities and organizations;

it has developed a C W I S to which people in Turkey and abroad have access. M E T U is the main access node of Turkey to Internet.

The University has an Alumni Office, established in 1992, in which the records of approximately 15,000 of a total of 40,000 graduates are kept. Since 1993 a trimestrial journal is issued and sent freely to those graduates by the University. There are 10 Alumni Associations established in different cities in Turkey. Fund raising is a joint effort by the University Administration and the Alumni; most of the funds generated are used for student housing and scholarship.

There is an International Relations Office, dealing mostly with co-operation agreements with other universities, especially in relation to the student-exchange programmes.

V I . Implementing reform/change

S o m e major proposals for change (some of which have already commenced) are:

• a radical shift to graduate studies by a reduction of undergraduate load;

57

Appendices

the concept of a technopolis close to the University which will drastically influence the w a y the University interacts with the industries; the concept of a central measurement and testing laboratory;

• ' wide use of computers in education and for retrieval and transmission of information.

The most important success factors in implementing innovations at the University are the unbiased and rational approach of the community to n e w ideas and proposals and the transparency of the administration.

VII. Current problems encountered

The problems of management the University is facing m a y be collected under two headings: internal problems and external problems. Actually the external problems are the dominant and the decisive ones and the internal problems m a y be somewhat related to them. First, external problems:

(1) Problems in financing: the funds are insufficient; the line-budgeting system used by the government causes a tremendous amount of inflexibility and inefficiency.

(2) Problems in the policies related to employment; the government is controlling the number of available positions and is allocating funds for them. Usually the salaries are low but the number of positions available is large. Thus there are employed (both academics and non-academics) in m a n y instances, people with below-average qualifications. This, in turn, causes inefficient use of resources and poor quality in services.

(3) Problems with the national assembly; it frequently grants amnesty to students w h o have been expelled from the university system due to academic failure. This increases turnover and results in poor quality.

(4) Problems with the legal system; the courts interfere with academic affairs - there are cases where a court promotes an academician of low performance, or decides that a failing student should be evaluated as successful again, due to legal considerations.

A s far as internal problems are concerned, one can list the following:

Rigid organizational and management structure. • Lack of enthusiasm by the faculty due to low level of income. ° Difficulty in structure due to multiple and duplicating financial mechanisms.

Difficulty in measuring the performance of the spending units as the financial data with the existing system and structure are distorted.

• W e a k administrative posts as these are usually filled by an election mechanism involving voting by the faculty.

• Insufficient use of bodies and committees in the governance structure, as the organization structure is rigid and does not allow for formal implementation of such modifications.

58

SUPPLEMENTARY MATERIAL

BACHELOR'S DEGREES GRANTED

(1994)

FACULTY

Engineering

Arts and

Sciences

Architecture

Economic and

Administrative

Sciences

Education

Technical High

G E N E R A L TOT

D E P A R T M E N T

E'.ec.-Electronic

Mechanical

Civil Chemical

Mining Petroleum

Industrial Metallurgical

Geological Engineering Sei.

Environmental Computer Aeronautical

Food T O T A L

Mathematics

Sociology

Chemistry Psychology

Physics Philosophy

History

Biology Statistics

T O T A L

Architecture

City and Regional PI. Industrial Desian

T O T A L

Polit.Sci.&Pubi.Adm.

Management

Economics

Inteml. Relations

TOT M

Science Education Educational Sei.

Foreign Lang. Ed.

Phys. Ed. and Sports T O T A L

School Feed Technology Welding

Automation Phvs. Ed. and Spcrts

T O T A L

AL

N U M B E

184 211 202 149 37 35 55 83 34

1

62 73 23 54

1214

67 39 64 53 80 16 24 45 98 486

64 53 23 145

104 137 118 39 398

163 28 52 23 271

2 1

3 23 6

2520

MASTER'S AND DOCTORAL DEGREES

GRANTED (1994) D E P A R T M E N T Masters Ph.D. TOTAL

Graduate School of Natural and Applied Sciences Architecture

City and Regional PI.

Physics

Chemistry

Mathematics

Biology

Bio-Chemistry

Bio-Technology

Statistics

Science Education

Engineering Sei. Environmental Eng.

Civil Eng.

Chemical Eng.

Geological Eng.

Elec. - Electronic Eng.

Mechanical Eng.

Mining Eng.

Petroleum Eng.

Industrial Eng.

Metallurgical Eng.

Computer Eng.

Aeronautical Eng.

Food Eng.

T O T A L

9 8 8 11 3 8 3 4 3 4 5 4 38 11 10 40 34 7 1 11 19 14 4 3

262

3 3 8 9 4 2 1 -1 1 1 -2 1 -4 2 1 * 1 1 • -1 46

Graduate School of Social Sciences Polit.Sci.&Publ.Acm. Management

Economics

Internl. Relations

Sociology

Psychology

Philosophy

Educational Sei.

Foreign Lang. Ed.

Phys. Ed. and Sports

TOTAL

Graduate School of N

6 20 1 1 5 4 1 6 4 8 66

arine S

Physical Oceanography 1

Marine 3io.& Fishery

Marina Geo.& Geophy

TOTAL

2 2 5

1 ---1 -4 2 1 -10

ciences

----

G E N E R A L TOTAL 333 56

12

11

16

20

7

10

4

4

4

5

6

4

40

12

10

44

35

8

1

12

20

14

4

4

308

7

20

1

1

6

4

5

8

5

8

76

1

2

2

5

389

Appendices

Table 5. Publications of teaching staff (1994)

FACULTY

Engineering

Arts and

Sciences

Architecture

E canamic

and admin.

sciences

Education

D E P A R T M E N T

E Ice/Electronic

Mechanical

Civil

Chemical

Mining

Petroleum

Industrial

Metallurgical

Geological

Engineering

science

Environmental

Computer

Aeronautical

Food

T O T A L

Mathematics

Sociology

Chemistry

Psychology

Physics

Philosophy

History

Biology

Statistics

T O T A L

Architechturc

City & Reg.

Planning

Indusrial Design

T O T A L

Pol. sei. &

public « H m m

Management

Economics

Int. relations

T O T A L

Sei. education

Edjcience

For. lang. ed.

Physical ed. &

sports

T O T A L

Graduate School of Marine

Sciences

G E N E R A L T O T A L

ARTICLES

National

0

S

4

2

2

0

6

9

11

1

2

10

1

1

54

2

18

6

3

13

35

8

18

0

103

39

20

9

68

7

2

23

4

36

3

14

19

13

49

1

311

Inter

national

14

17

23

30

7

5

11

25

15

3

8

2

12

16

188

13

10

70

9

54

2

1

19

2

180

3

3

0

6

11

3

12

7

33

10

8

7

0

25

19

451

PAPERS

National

9

16

48

29

7

9

15

3

25

3

15

10

10

4

203

1

16

37

21

2

11

9

34

2

133

11

8

3

22

0

7

6

3

16

21

10

9

3

43

11

428

Inter

national

61

37

40

11

15

7

13

9

17

10

11

24

17

0

272

0

7

19

14

15

5

2

27

5

94

9

1

0

10

1

4

10

7

22

3

2

10

2

17

5

420

Test book

national

0

0

2

0

0

1

2

0

0

0

5

0

0

0

10

1

0

0

0

0

0

1

1

0

3

0

4

0

4

2

2

4

1

9

6

1

1

0

8

1

35

Class notes

Inter

national

2

6

10

0

0

0

2

3

1

3

1

4

11

0

43

0

2

0

0

0

0

0

1

3

6

1

2

0

3

0

0

1

1

2

0

0

0

0

0

0

54

OTHERS

0

17

14

9

12

4

16

7

6

1

12

3

0

5

106

0

0

0

0

0

0

0

0

0

0

0

0

0

0

4

0

10

0

14

0

2

0

0

2

0

122

T O T A L

86

98

141

81

43

26

65

56

75

21

54

53

51

26

876

17

53

132

47

84

53

21

100

12

519

63

38

12

113

25

18

66

23

132

43

37

46

18

144

37

1,821

60

Appendices

COMPUTER RESOURCES IBM Scalable P O W E R parallel Systems SP2 (nautilus) Operating System : AIX 3.2.5 ; Number of Nodes : 8 ; In every node, Processor : 1 P O W E R 2 Processor ; Memory : 64 M B ; Disk : 1 G B Control Work Station : IBM 2 2 W Work station ; Tape Una : 2.3 G B external drive

IBM RISC/6C0 POWERserver 590 System (rorqual) Operating System : AIX 3.2.5 ; Memory : 512 M B ; Disk : 4 G B ; Tape Unit : 5 G B external tape drive

IBM RISC/6C00 POWERserver 590 System (narwhal) Operating System : AIX 3.2.5 ; Memory : 512 M B ; Disk : 4 G B

IBM RISC/6C0 POWERserver 590 System (beluga) Operating System : AIX 3.2.5 ; Memory : 64 M B ; Disk : 2 G B

External Disk Space in UNIX-Based Systems 80 G B (unfcrmated) ; 63 G 3 (formated) Raidiant Array Disk (RAID)

IBM 3C90/180S + Vector Processor Operating System : IBM VfvMA SP R2.1 ; Memory : 64 M3+64 M 3 Expanded Memory ; Disks : 22.5 G B (unformated) 3380/AJ4 and 3380/BJ4 Disk Drives ;-Tape Units : 2 x Cardridga Drive (32000 bpi) 2 x IBM Reel Drive (9-Track 1600/6259 bpi) ; Line Printers : 2 x IBM 4245 (2000 Ipm) ; Communications Control Units : IBM 3720 (SDLC, B S C , X.25 connection capability) ; LAN Connection Control Unit : IBM 3172 (TCP/IP Token-Ring connection capability) ; Terminal Control Units : 3 x IBM 3174/TIL 2 x IBM 3174 SIL (Token-Ring connection capability) 6 x 3174/53R (LAN connection capability) ; Terminals : 135 x 3191/A10 ; 15 x 31SZ'GIY ; Graphic Control Unit : 5088/001 ; Graphic Processor : 5086/001 ; Graphic Monitors : 2 x 5081/016 ¡Plotters: 1 x 5136/002 p 1 x6132/CC1

H P 9C0/317S System (knidos) Operating System : H P - U X R9 ; Memory : 64 M B ; Disk : 5 G 3

IBM Я ISC 600C/320 System (ephesus) Operating System : S U N O S ; Memory : 32 M B ; Disk : 2.3 G 3

UNISYS U6000765 System (perge) Operating System : UNIX ; Memory : 43 M B ; Disk : 4 G B

IBM RISC/6000 /320 System (side) Operating System : AIX 3.2.5 ; Memory : 16 M B ; Disk : 840 M B

C O M P U T E R N E T W O R K C O N N E C T I O N S Local Network : M E T U - N E T ; Token-Ring Backbone (32 Academic and Administrative sites), Fiber Optic, 16 Mbps, Department Local Networks; FDDI, Ethernet. ; National : T U V A K A (Bitnet) ; International : INTERNET (Direct), all other Networks by Gateways To M E T U W E B Server (METU-CWIS) over Internet : THere was 428,645 access from 20,523 different sites and transfered 1.8 G B data

P C R O O M S Mechanical Engineering Dept. : 30 x PC 486 SX + 1 x Novell Netware Sewer + Cisco 4000 Router Physics Department : 20 x P C 435SX + 1 x Novell Netware Server + Cisco 4C00 Router Civil Engineering Department : 35 x PC 486SX + 1 x Novell Netware Server + Cisco 4000 Router Computer Engineering Dept. : 17 x Macintosh + Mac Quadra - 300 Server A U X 16 M B Computer Engineering Dept. : 4x Tatung-Sun clone -16 M 3

4x H P work station 1 6 M B Dormitcry 1 : 32 x PC 386SX + 1 x Novell Netware Server + Netware / Cabletron Minimmac Dormitcry 2 : 30 x PC 385SX + 1 x Novell Netware Server + Netware / Cabletron Minimmac

UNIX-3ased Systems opened on 2/10/1994. Total number of users on UNIX-Based Systems (3/10/1994-31/12/1994) : 6186 (1550-rcrqual, 4635 narwhal) Processor using percentage of UNIX-Based Systems (3/10/1994-31/12/1194) : %60-rcrqual, % 51-narwhal Out of order date of IBM 3090 : 21/10/1994 Processor using percentage of !3M 3090 (1/1 - 21/10/1994) : % 74 Number of answered questions on M E T U - C C Hot-Line (253-by telephone, 157 by e-mail) Associated with seminars which were given by M E T U - C C en October 1994 : Number cf seminars : 27 542 academic personds joined to seminars

61

Appendices

ciNfefè REPORTING TO OFFICE OF

THE PRESIDENT

CONTINUING EDUCATION (SEM)

CAD-CAM & ROBOTICS (3ÍLTÍR)

SOUTHEAST ANATOLIA PROJECT

(GAP)

WELDING TECHNOLOGY & NON-DESTRUCTIVE

TESTING (KAYNAK)

BLACK S E A S CENTRAL ASIA

(KORA)

AUDIO-VISUAL SYSTEMS RESEARCH

APPLICATION (GÍSAM)

PRESERVATION & EVALUATION OF

HISTORICAL ARTIFACTS (TAÇDAM)

C O M P U T E R CENTER"

RESEARCH UNITS ATTACHED

TO TÜBÍTAK (Scenic ar.d Technical Resei-ch

Cour.di d Turkey)

• .Ankara Institute of Electronics Research 4 Development

• Software R - 0 Unit • Cera-ic & Composite Malaria's Unit ( S E K O M )

• M o d e n Production Systems • Defense industry Control Unit • High Energy Astrophysics

RESEARCH Aí¿n SERVICE

CENTEhV

EARTHQUAKE ENG.

COASTAL i HARBÔft ENG.

SOIL MECHANICS

TRANSPORTATION

WATER SOURCES

MACHINE DESIGN & MANUFACTURING

THERMAL ENVIRONMENTS

THERMAL PROCESSES

AERODYNAMICS & ELECTROMECHANICS

SYSTEM SCIENCES

ENVIRONMENTAL ISSUES

GEOLOGY-GEOPHYSICS

JFORMATICS

BIOTECHNOLOGY

INTERNATIONAL HEAT • & MASS TRANSFER

HIGH ENERGY PHYSICS

RESEARCH CENTERS REPORTING

TO DEPARTMENTS

MANAGEMENT & ADMINISTRATION SYSTEMS

ECONOMICS &

SOCIAL SCIENCES

INTERNATIONAL RELATIONS-REGION

EUROPEA.N COMMUNITY

POLYMER CHEMISTRY

HOUSING RESEARCH (KAM)

M E T U DEVELOPMENT FOUNDATION

- G Û D A S (Food Prediction & DsráLcrTlNC.) •

- E ВI ( Serenes, Сотри as i Cxsirucicn sNC)

-Middle East Software Services INC

-Private High School

Air Fores - METU Development & Post Graduate Education

TECHNOPARK M E T U - K C S G E 3

TECHN.DEVELOP.CENT.

PAL Petroleum Research Lab.

Append'

Table 6. Projects supported by University Research Fund 1994

Engineering

Arts and Sciences

Architecture

Economic and

Administrative

Sciences

Education

UNITS

Elec/Electronic

Mechanical

Civil

Chemical

Mining

Petroleum

Industrial

Metallurgical

Geological

Engineering sciences

Environmental

Computer

Aeronautical

Food

TOTAL

Mathematics

Sociology

Chemistry

Psychology

Physics

Philosophy

History

Biology

Statistics

TOTAL

Architecture

City and Regional Planning

Industrial design

TOTAL

Political science and public

administration

Management

Economics

International relations

TOTAL

Science education

Educational sciences

Foreign language education

Physical education and sports

T O T A L

University (President's office)

Graduate School of Social Sciences

Graduate School of Natural and Applied Science

Graduate School of Marine Science

GENERAL TOTAL

No. of projects

8

6

3

7

3

2

2

5

5

2

2

4

1

5

55

1

2

8

2

4

1

2

10

0

31*

7

1

0

9*

2

2

5

1

10

2

3

1

0

7*

7

4

3

1

127

N o . of

projects/

faculty

member**

0.14

0.11

0.06

0.32

0.20

0.22

0.12

0.24

0.28

0.13

0.17

0.19

0.09

0.38

0.16

0.03

0.15

0.21

0.18

0.08

0.14

0.29

0.53

0.16

0.25

0.04

0.14

0.13

0.14

0.24

0.13

0.17

0.11

0.18

0.06

0.13

-

-

-

0.05

0.14

Funds

U S $ *

1,076

555

245

712

168

131

132

520

218

96

185

362

26

424

4,850

275

230

819

82

580

60

65

300

0

2,491

161

20

0

549

100

155

256

155

666

155

141

7

0

548

7,920

153

215

50

17,442

Funds/

Faculty

member

19

10

5

32

11

15

8

25

12

6

15

17

2

33

14

7

18

21

7

11

9

9

16

13

6

1

9

6

11

12

19

11

9

8

1

10

-

-

-

3

20

U S $ based currencies are calculated on mid-year currency rate. A G U D O S : Contract Research & Projects

Appendices

Projects active in 1994 (Library)

A.

1.

2. 3.

4. 5.

National projects

Tübitak projects

Tbag

Misag

Ktçag

Eeeag

Intag

Ybag

Debag

Ydabçag

Tegag

Togtag

Tag Vhag

Doprag

Dept. Technological research projects

Other projects

Eczacibasipag

Taek

Ministry of Cultural affairs

Research Fund Projects

Agudóg Projects

N u m b e r of Projects

526

161 38 31 19 17 16 10 11 6 3 2 1 1 6

18 3 1 1 1

127 217

N u m b e r of books

N u m b e r of periodicals (Vol.)

Periodicals (subscriptions)

Building area

Ankara C a m p u s

Educational buildings

Administration buildings

C o m m o n buildings

Residences & guesthouse

Student dormitories

Buildings under constructions

Erudemli campus

Uludag skiing Lodge

275 078

119 284

1 990

421 983

204 216

6 035

45 871

8 318

61 378

96 165

6 596

Total 435 099

B . International projects

1. E C projects

Medical Campus

Avicene

EC 2. Nato projects

Agard

Collaborative research

SFS

Linkage

3. Cost projects

4. Other projects

IAGA British Council

UNESCO UNIDO UNDP EUREKA Volkswgen Foundation NSF German technical co-operation

NSA W B IOC T W A S

76

13 9 3 1

22 10 7 4 1 6

35 7 7 4 3 3 3 2

Sports facilities

2 Gymnasiums

One football stadium (grass field)

with a seating capacity of 10,000

6 football fields of various sizes

12 tennis courts

Outdoor volleyball courts

2 lifecourses (8 k m . and 2 k m )

Elmadlag skiing facilities

Uludag skiing facilities

Boathouse and rowing facilities

Body building hall

Gymnastic hall

Olympic size indoor swimming pool

Outdoor swimming pool

TOTAL

Total funding $25 Million

Funding/Faculty Members : $ 27.800

Number of Projects/Faculty Members: 0.7

602

64

Appendices

SUMMARY STATISTICS (1994)

Number cf Faculty Members

Insírucícrs and Research Asst.

Total Number of Students

Number of Foreign Students Number of Turkish Students

Student (Underg.) / Fac. Mem.+liNST

Bachelor's Degrees Granted

Master's Degrees Granted

Dcctcral Degrees Granted

Number of Overall Publications

Overall Publication / Fac. M e m .

International Publications

International Publication / Fac. M e m .

Current Expenditure / Student (S)

Building Area / Student (m2)

Social /Academic Clubs

1993-1994 Cultural and Social Activities

Sports Teams

Sports Clubs

637 1,113

19187

1023

18159

15.11

2520

333 56

1821

2.87

925 1.45

1.3-2.952

22.68

51

758

26

4

65

Appendix X Accelerated growth: the dilemmas facing

the Open University

by Ehud Or

Background

The Open University is a distance-learning university accredited to award the bachelor's degree. It enables its students to learn at their o w n pace, wherever they live, without having to interrupt any of their other activities. Studies are based on material prepared in advance (usually books, although a variety of technological means m a y soon become part of the teaching method). Students are assisted by tutors at meetings that take place anywhere from once every three or four weeks to a three-hour weekly tutorial. Students are required to hand in assignments and sit for examinations at the end of each semester. A student w h o has fulfilled all requirements earns credits (mostly six, though some courses are worth three or four credits). A student w h o has accumulated 108 credits (between 18 and 24 courses) in accordance with certain rules governing the curriculum and type of courses, is entitled to a B . A . degree.

The Open University was established in 1974 by the Rothschild Foundation and the Government of Israel. Since 1992, the Rothschild Foundation no longer contributes towards the operational budget and the University receives an allocation from the Planning and Grants Committee - the executive organ of the Council for Higher Education.

In addition to academic studies - the mainstay of its activities - the University offers a selection of non-academic programmes.

Data

In the academic year 1994/95, student enrolment stood at 60,000 (some 9,000 F T E -students on a full-time equivalent scale).

The rate of growth from the previous year was 34 per cent and it followed five years of an average annual increase of 17 per cent. Compared to 1988/89, the total growth was 200 per cent (or threefold). During that period there was an equally steady increase in the rate of course completion (from 61 per cent to 65 per cent) as well as in that of students w h o declared their intention to pursue an academic degree (from 58 per cent to 80 per cent).

Government participation in the Open University's budget represents 22 per cent of revenues (or 29 per cent if w e include tax refunds by special arrangement with the Rothschild Foundation dating back to the Agreement signed when the Open University was established). The extent of participation had dropped from 28 per cent in 1988/89 (35 per cent including tax reimbursement).

During that period, the Open University's personnel grew by 33 per cent, from 360 to 480 (not including tutors) while overheads went d o w n from 25 per cent to 20 per cent (including a library and other academic infrastructure).

67

Appendices

Environment

In recent years, a growing number of n e w institutions have been offering an array of higher education programmes. Last year, the Knesset (the Israeli Parliament) passed the

Colleges Act' - a law authorizing regional colleges, teachers' training colleges and other institutions that meet certain requirements, to confer the bachelor's degree.

O u r assessment is that supply will exceed d e m a n d (which has also been on the ascent). Although the O p e n University has enjoyed growth and success beyond all expectations, this trend m a y yet b e c o m e reversed.

Basic assumptions

T h e O p e n University's economic management is based on several basic assumptions:

(a) T h e O p e n University is a fully-fledged university and must at all times maintain high standards of excellence.

(b) Its budget must be balanced and deficits cannot be planned for. It is therefore imperative that the O p e n University's resources be managed with great flexibility.

(c) T h e O p e n University's academic activity enjoys the economies of scale - tuition fees cover all direct expenditure as well as overheads related to studies.

(d) Non-academic activities must cover costs and overheads. This is a condition for the existence of the various programmes.

Structure of the O p e n University's budget

(a) T h e structure of revenues and expenditure of the O p e n University in the current academic year 1994/95, excluding tax reimbursement, in millions of dollars, is:

Revenues

Government allocation

Academic tuition

Extra-academic tuition

Sale of books

Others

Total

8.4

19.9

7.1

0.8

2.0

38.2

%

22

52

19

2

5

100

Expenditure

Direct

Development

Senior Faculty 3.1

Overheads

Total

25.3

3.1

3.1

6.7

—

38.2

%

66

8

8

18

—

100

(b) T h e O p e n University is a labour-intensive organization: 71 per cent of the expenses are related to m a n p o w e r .

68

Appendices

(с) F r o m the data one can learn:

1. Seventy-eight per cent of the revenues are self-generated by the O p e n University.

2 . A comparison of the development, senior faculty and overhead items ($12,900,000 total) with the national allocation ($8,400,000) reveals that the O p e n University is under-budgeted in this sense.

3. It is of great importance to maintain at least the current ratio between expenses and other expenditure, in order to remain flexible, in case of changes.

Organizational di lemmas

T h e organizational structure of the O p e n University has remained virtually unchanged since its establishment. T h e enormous expansion (its scope has tripled, as seen above) calls for a re-evaluation of this structure and its suitability to meet needs.

Organizational changes have a price, both in real terms (more functions) and indirectly (dissatisfaction of employees w h o m a y feel their position has been undermined; a certain amount of friction that m a y cramp the system before it can once again reach its balance' and function smoothly).

T h e present uncertainty poses some problematic choices: on the one hand, one must m a k e organizational adjustments in order to handle the present scope of activity and, even more so, the continuing expansion. O n the other, a decline in activities would leave one with

tomorrow's structure' vis-a-vis yesterday's level of activity'.

Several criteria should guide discussions w h e n envisaging a n e w structure:

(a) Intensified academic control over the teaching process. Today the H e a d of the Teaching Division is directly responsible for some 150 course co-ordinators. H e is assisted in this task by the O p e n University's senior faculty.

(b) Better administrative facilities for students. The massive growth of the O p e n University's student body sometimes works to the detriment of the individual student.

(c) Closer co-operation with colleges and other institutions. Studies organized by various bodies account for the better part of the O p e n University's expansion. If one wishes to continue this collaboration one must strengthen control over these programmes while, at the same time, striving to meet the needs and requirements of these institutions.

(d) A n ability to adapt teaching methods and products. O n e must be able to accommodate various sectors of the population and provide solutions in different areas, thus taking advantage of n e w opportunities and responding to needs that have not been fulfilled before.

(e) Prowess on the technological front. T h e O p e n University must maintain its lead in the use of advanced technology in distance-learning.

69

Appendices

Economic dilemmas

The O p e n University's great reliance on income generated by its o w n activities makes it extremely vulnerable. The financial reserves at its disposal are small and a quick adjustment of expenditure to revenues is essential. This situation creates some dilemmas:

(a) The extent of investments in development

Since the continued growth of the Open University depends on diversification and on the development of n e w , innovative teaching methods, the resources available for this purpose must be significantly increased.

Each project involves millions of dollars and takes a long time. The necessary funding should obviously come from outside sources. However, the University must be able to allocate about a million dollars every year from its o w n resources, for the preliminary examination of ideas before they are formulated as concrete proposals capable of attracting funds.

A s in all research and development endeavours, particularly in the academic field, one must take into consideration that some of the projects m a y come to naught. This, however, should not deter one from further investments.

(b) Decline in academic enrolment

1. Assuming that only 50 per cent of tuition fees go towards direct expenses that would cease as soon as registrations drop (tutoring, study centres, mailings, books), every 1,000 registrations lost would m e a n a $190,000 loss of income, which is equivalent to 7.6 position (out of 422 positions not including senior faculty and senior management). In other words, a 1.6 per cent decrease in enrolment would involve a 1.8 per cent decrease in positions across the board (including jobs not directly related to the operation of courses).

2 . Furthermore, if the decrease rate is the same for all courses, it would dilute the study groups, in which case one would not even be saving the direct costs (such as tutoring and study centres) and the damage would be even greater.

3. The main problem in a situation of dec Une is trying to assess whether one is facing an ongoing process or whether the trend m a y be reversed. Given the modest surpluses at one's disposal, one cannot afford to ponder this question for too long.

4 . Coping with a decline caused by competition requires more investments in teaching, marketing and advertising. Here, too, slim reserves preclude the possibility of a sustained, sizable outlay.

70

Appendices

(с) Decree in non-academic revenues

The following are the figures for the past three years:

1993

1994

1995

Revenues (in thousands of $)

3,269

3,956

4,352

Surplus (in thousands of $)

642

1,157

671

%

20

29

15

The decrease in 1995 is the result of growing competition, a drop in income (in real terms and owing to smaller groups of students), and a rise in costs (teaching and advertising).

Despite the decline one was left with a small surplus. But its impact on the general picture is equivalent to 19 average full-time positions.

(d) Wage increase

There is constant pressure to raise salaries, especially given the expanding activities and a streamlined, rationalized operating system. A 1 per cent general salary increase (in real terms) equals $272,000, or 11 average full-time positions, or an additional 2,000 academic registrations (assuming that 65 per cent of tuition fees represent increased activity) - which means a 3.3 per cent increase.

S u m m a r y

The substantial increase in activity of the Open University, funded by the University's o w n income (primarily tuition), reflects the advantages of its method of activity. At the same time, the University m a y be more vulnerable and unable to react immediately if directions change notably. Beyond adjustments necessitated by changes, the O p e n University should seek to increase significantly and in real terms public participation in the budget, to create funds of substantial scope which could bridge interim periods of temporary decreases in income.

71

Appendices O

N

ON

ON

in OO O

O O

N

CO *� c3 О <D

CD +->

«-*

£ •<

—<

ci

13 о ci

00

Vi

> •

r-l

с G

0)

ocation

incl. refund

=3 к

4

S 2

are of PGC in revenu

incl. refund

Л S K

ел ""З

4

л -d

ел 3

Л ё ü .§-.-

Tota: pend

ocation3

ncl. tax refund

Total PGC all« not incl. i refund tax

•о

«i 'S "fe 2 в .S -о

Total rev not incl. tax refun

ï *o

u ¡g a §

"•* O

и . "О

О

£

Й 00

С <D

ТЭ Э

Ми

„ и

С. "р О

'S 'В

Ё К

^ Л

2 -о

Ц-1

tA

5 S" lié

Zo

o

CA

'S с

¿2 Й

s 's •& s" о

о g

Ä

PÍ -a

ON

? NO

O

O

CO

t-en T?

§ OO

O

N

<S

00 oo (N

r-8 en en

0\

m

тГ OO en

t—

Ti-тГ en

tN

en

^ Tt

in en

TJ-en O es

o t-

.o\

*"*

»o OO тГ 00 O

N

3 t-; vi en

o •ч-

« S t— § Ox

OO O

N Iren (N

(N

(N

S О ON

en

§ (N

Tien

t-CS

es

en OO in

en m

TJ-

ON

О OO i>

NO OO m

0O

ON

en en en

О ON

t—

00

OO Ш

OO •4-

T? in OO r~~

<

t-r-en es

ON

es NO un vn

s ТГ ON

•4-

es t-i 00 NO

s m

en

NO t-Ш

ON

*"'

t-00 NO OO O

N

NO vi en

00 es

en O

N

S ON

ТГ

$ vn O

N 1—

1

ON

00 en

S О »П

in

t—

in C

S О

ч тГ

Б •ч-O

N

en in in

Tt

NO

NO OO

en m

oo О Tt m

es O

N

" 00 00 t-OO O

N

in en

»n 00 es

^^ es

S ' w'

t-m

m

en in

00 о en О es

Tien O

N тг

ON

OO 00 t-m

in

in es »n

en t-NO t-es

i> m

es NO

en О es

es t—

00

00 m

S es

ON

00 OO 00 ON

00 en en

О S »n ON

NO t->n

ТГ o es es

OO OO O

N vn

OO en es in NO

»n OO O

N in

OO es

es

,_< NO

4—i

s en en es

en

ON

en es en es

8 ON

00 O

N

t-;

en

m 8 m

T? NO NS

« Tien es

00 m

m

о ON

ON

en » T?

S S TICO en

ON

l> NO

NO

S о я NO Irin

en 00 es о en

ON

& ON O

N

Tt

en

en

es

in in Tl-

я en Tt t->n en m

NO es

en 00 NO ires en NO ТГ 00

о OO t—

«n t-NO t-O

N en en

t-OÑ

N

O

m

S ON

es O

N

t-es Tien t-en

es O

N

ON

O

N

Tt

en

es

es en

« es ТГ oo NO t-Tl-O

N 1res

OO NO en OO

О es O

N OO OO

Titeo егл t-8 О «n en

ON

es t-O

N in NO

es

en

ON

en О O

N

en Tl-»n

Ti

en O

N

?î O

N

ON

Tf

ON

es

en es es

OO

OO

T?

en m

O

O

m

о es о en О m

OO о es

t-t-00 es о es in in en C7\

NO

m T?

ЧО 00 t-"&> NO

t-es en

? 00 O

N

es Tl-t-îû T

f

TJ-

ON

en O

N

ON

00

es

о es

T-00 O

N en

es NO

es

'NO

ON

2 "o t—

vn C

S о >n

NO

о � 00

"&i

en NO

О es NO en es

00 NO es O

N m

m

ON

T?

ON

ON

.s .5

&£&

72

Appendix XI M a n a g e m e n t of finance in the University

by D r N . J . Vakis Director of Administration and Finance

I. T h e University

(a) The University mission

The University of Cyprus is a teaching and research institution aiming at:

the provision of education mainly in specializations contributing to the social, economic and cultural development of the Republic and the people of Cyprus as a whole;

• the advancement of knowledge and its practical applications by teaching, research and other means;

« the encouragement of study and research and the provision of facilities to this end generally;

• the safeguarding of academic freedom and the freedom of scientific investigation and dissemination of ideas; the contribution to the mutual understanding among the communities of the Republic and the cultivation of their tradition and culture; the development of co-operation with foreign academic and scientific institutions; the granting and award of degrees, diplomas and other titles.

(b) Place in higher education system

The University of Cyprus is the highest educational institution in the Republic. It was established in September 1989, and has n o w (1994-95) taken its third intake of students. With a further intake of 500 in September 1995, it will reach about 2,000 students and will have met its initial planning targets.

(c) Students and academic staff: organizational and governance structure

Students by discipline and staff by level for 1994/95 are shown in Tables 1 and 2 .

The present staff/student ratio is 1:10.8. In the year 1992/93, 16 per cent of the universities in the U K had a ratio 1:10, while 29 per cent had a ratio of 1:10-15 and 44 per cent had a ratio of 1:15-20.

Organizational and governance structure is shown in Charts А , В and С

73

Appendices

Table 1. Students by discipline for the academic year 1994/1995

School

Humanities and social sciences

Pure and applied sciences

.

Economics and management

Department

Greek studies, philosophy and history Education Turkish studies Foreign languages and literatures

Total

Computer science Mathematics and statistics Natural sciences

Total

Economics Public and business administration

Total

General total

N o . of students

103 609

69 69

850

82 91 38

211

186 245

431

1,492

Table 2. Staff by level for the academic year 1994/1995

Academic and other staff

Professors

Associate professors

Assistant professors

Lecturers

Special teaching staff

Research assistants

Visiting staff:

Professors

Associate professors

Assistant professors

Lecturers

Total

N o . of positions

13

25

33

34

21

31

157

11

3

2

2

18

175

74

Appendix XI

CHART A

ACADEMIC STRUCTURE

UNIVERSITY COUNCIL

RECTOR VICE- RECTOR

3 MEMBERS OF ACADEMIC STAFF 4 CITIZENS APPOINTED BY THE GOVERNMENT

3 CITIZENS APPOINTED BY THE SENATE 1 STUDENT

DIRECTOR OF ADMINISTRATION AND FINANCE (NON-VOTING) ELECTED REPRESENTATIVE OF ADMINISTRATIVE STAFF (NON-VOTING)

SENATE

RECTOR VICE- RECTOR

DEANS 3 MEMBERS FROM EACH SCHOOL

3 STUDENTS DIRECTOR OF ADMINISTRATION AND FINANCE (NON-VOTING)

DIRECTOR OF LIBRARY (NON-VOTING)

I SCHOOL BOARD

DEAN

DEPUTY DEAN

CHAIRPERSONS OF DEPARTMENTS

2 MEMBERS FROM EACH DEPARTMENT

2 STUDENTS REPRESENTATIVES

" *

DEPARTMENTAL BOARD

PROFESSORS

i ¡

ASSOCIATE PROFESSORS

ASSISTANT PROFESSORS AND LECTURERS

(HALF THE NUMBER OF PERMANENT STAFF)

2 STUDENTS

Appendices

CHART В

ADMINISTRATIVE STRUCTURE

UNIVERSITY COUNCIL

SENATE

RECTOR

VICE-RECTOR

DIRECTOR OF ADMINISTRATION AND FINANCE

SECRETARIAT

INTERNAL AUDIT

HEAD OF ACADEMIC AFFAIRS

AND STUDENT WELFARE

HEAD OF COMPUTER SCIENCE

ADMINISTRATIVE STAFF

DIRECTOR OF LIBRARY

HEAD OF EXTERNAL AFFAIRS

AND PROJECTS


HEAD OF FINANCE AND PERSONNEL


HEAD OF TECHNICAL

SERVICES



76

CHART С

GOVERNANCE STRUCTURE

Appendix XI

SCHOOL BOARDS

ÜEANS

DEPARTMENT BOARDS

CHAIRPERSONS

UNIVERSITY COUNCIL

CHAIRPERSON

SENATE

RECTOR

VICE-RECTOR

DIRECTOR OF ADMINISTRATION AND FINANCE

SECRETARIAT INTERNAL AUDIT

HEADS OF ADMINISTRATIVE

DEPARTMENTS DIRECTOR OF LIBRARY

77

Appendices

(d) Powers and responsibilities of University bodies

1. University Council

Manages and controls the administrative and financial affairs of the University and its property and, in particular, prepares the annual budget.

Promotes, in the best possible manner, the interests and objectives of the University.

Ratifies the appointments and promotions of the academic and administrative staff.

2. Senate

Approves the decisions of the rector, the academic programmes, the level of entrance and sessional examinations, the marking or grading system, the election and promotions of academic staff and the award of diplomas and degrees.

Determines the requirements of the University in building facilities and equipment, the apportionment of the budget and the relations of the University with other universities and educational institutions.

R e c o m m e n d s to the council the establishment or abolition of schools or departments and the number of students to be admitted to the University.

Appoints committees from amongst its members and m a y delegate to them any of its authorities.

Reports to the University Council any matter referred to it by the council for consideration and submission of a report.

3. School Board

At the school level it has all the authorities which the Senate has at the university level.

The decisions of school boards are subject to the approval of the Senate.

4. Department Board

Responsible for the research and teaching work of the department within the framework of the decisions of the School Board.

The Chairperson of the department has responsibility for its current administration.

(e) Academic programmes

Schools and departments are shown in Chart D .

78

Appendix XI

CHART D

SCHOOLS AND DEPARTMENTS

SCHOOLS

HUMANITIES AND SOCIAL SCIENCES

PURE AND APPLIED SCIENCES

DEPARTMENTS DEPARTMENTS

EDUCATION

FOREIGN LANGUAGES AND

LITERATURES

GREEK STUDIES PHILOSOPHY AND HISTORY

SOCIAL AND POLITICAL SCIENCE

TURKISH STUDIES

ARCHAEOLOGICAL RESEARCH UNIT

COMPUTER SCIENCE

ECONOMICS AND MANAGMENT

DEPARTMENTS

MATHEMATICS AND STATISTICS

NATURAL SCIENCE

ECONOMICS

PUBLIC AND BUSINESS

ADMINISTRATION

79

Appendices

The University of Cyprus currently offers the following programmes and degrees:

1. School of Humanities and Social Sciences

• Department of Education

(i) Bachelor's degree in elementary school teaching

(ii) Bachelor's degree in kindergarten teaching

Department of Foreign Languages and Literatures

Bachelor's degree in English language and literature

Department of Greek Studies, Philosophy and History

(i) Bachelor's degree in Greek studies - Latin

(ii) Bachelor's degree in Greek studies - philosophy

(iii) Bachelor's degree in Greek studies - history

Department of Social and Political Sciences

Presently the department offers the following courses as électives for students of other

departments:

(i) Sociology

(ii) Political science

A Bachelor's degree will be offered at a later stage.

Department of Turkish Studies

Bachelor's degree in Turkish studies.

Archaeological Research Unit

The archaeological research unit offers elective courses on all aspects of Cypriot

archaeology.

2 . School of Pure and Applied Sciences

e Department of Computer Sciences

Bachelor's degree in computer science

e Department of Mathematics and Statistics

Bachelor's degree in mathematics and/or mathematics and statistics

Department of Natural Sciences

Bachelor's degree in physics or chemistry

80

Appendix XI

3. School of Economics and Management

Department of Economics Bachelor's degree in economics

• Department of Public and Business Administration Bachelor's degree in public and business administration

II. T h e financial situation of the University

(a) Expenditure

Table 3. Approved budget and actual expenditure for 1994

S / N o .

1

2

3

4

5

6

Categories

Academic staff

Administrative staff

Running costs

General administrative and maintenance costs

Capital investment expenditure

Provision for unforeseen expenditure

Total

C Y £ budgeted

3,002,421

812,432

410,660

628,000

3,060,000

250,000

8,163,513

C Y £ actual

2,350,503

629,245

307,718

447,083

1,974,123

-

5,708,672

% spent

78

77

75

71

65

-

70

Note: 1 CY£ = US$ 2.25

(b) Income

Government subsidy

The University is wholly dependant on government subsidy.

e Other sources of income

The University's other sources of income during 1994, amounted to approximately CYP300,000 consisting mainly of donations and bank interest received from deposit accounts.

• Past trends and constraints

Since the University is only in its third year of student intake, there are few statistical data available to reach any realistic conclusions.

Based on actual expenditure for 1994, the following financial indicators were derived (see Table 4):

81

Appendices

Table 4 . Financial indicators

S / N o .

1

•2

3

4

5

6

7

8

Description of the financial indicators

Average cost per faculty member

Average cost per administrative staff member

Average cost per student (includes capital expenditure)

Average cost per student (excludes capital expenditure)

Expenditure for academic staff as a percentage of total expenditure

Expenditure for administrative staff as a percentage of total expenditure

Running and administrative expenditure as a percentage of total expenditure

Capital expenditure as a percentage of total expenditure

1994

C Y P 15,775

C Y P 6,293

C Y P 6,003

C Y P 3,927

41

11

14

34

100

Note: 1 C Y P = U S $ 2.25

III. Structure of financial m a n a g e m e n t

1. The budget process

The mechanism by which the University secures funds from the government is shown in Chart E.

2. Basis of distributing internal resources

Resources are allocated internally taking into account the following factors:

(i) number of academic staff per department; (ii) number of students per department; (iii) other specific needs.

3. The latitude of departments to spend

The latitude of the departments to spend governmental resources is restricted by:

(i) availability of funds;

(ii) type of expense items; (iii) internal rules and control systems; (iv) allocation of funds for capital items is restricted to library books and

periodicals and laboratory equipment. All other expenditure is presently controlled centrally.

82

Appendix XI

There is greater flexibility to incur expenditure from non-government funds and resources (donations/contributions) by individual departments, provided that funds are used explicitly for the purpose for which they were donated, or granted.

Chart E . BUDGET PREPARATION AND APPROVAL PROCEDURES

ACADEMIC AND ADMINISTRATIVE DEPARTMENTS

ir

BUDGET COMMITTEE

4 r

SENATE

*r

UNIVERSITY COUNCIL

i ?

MINISTRY OF EDUCATION AND CULTURE

• — • — '

MINISTRY OF FINANCE

COUNCIL OF MINISTERS

HOUSE OF REPRESENTATIVES

83

Appendices

I V . Responsibility for financial m a n a g e m e n t functions within the University

1. W h o is responsible?

(a) Exercising control on expenditure

According to the University Act, the officer authorized to exercise control over the expenditure of the University is the Director of Administration and Finance. T h e Director has the authority to delegate power to other officers.

Internal Control Rules and Regulations of the University have to be strictly observed and obeyed by each officer of the University. The Director of Administration and Finance is responsible for the accountability procedures of the University.

T h e annual audit of the University's financial statements is carried out by the office of the General Auditor of the Republic of Cyprus. Recently, the University has appointed its o w n internal auditor. This will undoubtedly encourage financial management to exercise greater control over expenditure, safeguarding the assets of the University and controlling its resources more efficiently and effectively.

(b) Managing the University's cash reserves

A s already stated, the University is basically funded by the government. Funds approved through the budget are transferred to the University quarterly. The University has therefore very little cash reserve in hand and for a very short period of time; these funds are invested for short periods in bank deposit accounts earning interest.

(c) Financial data and annual reports

The preparation of annual reports and financial information or specific reports is the responsibility of the accounts section.

(d) Ensuring that resources are allocated and used efficiently

Allocation of budget and other resources is the responsibility of the Senate following suggestions by the Senate committees.

(e) Establishing mechanisms to encourage individuals and departments to generate income for the University

T h e University currently generates some income through various contributions or donations from individuals or institutions (e.g. banking organizations) in order to carry out certain research programmes or organize various seminars.

84

Appendix XI

V . P r o b l e m s in establishing efficient financial m a n a g e m e n t

There are various factors causing serious difficulties in establishing efficient financial management .

1. T h e absence of a University campus

T h e University's academic and administrative personnel is currently dispersed over several buildings, located around the main University building; most of them are not within walking distance. This leads to difficulties such as:

(a) increased administrative and running costs (e.g. rents, travelling, salaries, light and heat, building repairs and maintenance);

(b) increased capital cost (e.g. machinery, equipment, computer equipment); (c) loss of significant time by both administrative and academic staff; (d) increased administrative staff is required (e.g. secretaries, messengers); (e) serious problems of communication and co-ordination.

2 . Lack of academic and social space

T h e fact that the staff, academic and administrative, is spread over m a n y different premises, makes both the administrative and the academic work very difficult, time-consuming and financially costly. T h e absence of academic and social facilities makes life awkward for teaching staff, students and administrators.

T h e under-provision of library, teaching, office and social space, the dislocation of academic life and the lack of any residential provision for students, cause serious problems and prevent the University from realizing its potential. With these constraints, the University development is halted at a point w h e n it is well below economic size, both academically and financially.

3. T h e budget process

Since the University's financial resources are fully dependent on government grant, long-term plans and policies are indirectly dictated through the budget. The goals of financial management are thus becoming difficult to achieve.

However , it is fair to state that the government has so far supported the University in budgetary terms.

4 . T h e absence of a 'permanent governing board'

T h e University of Cyprus was until recently managed by an interim governing board' whose member s were non-residents. The absence from Cyprus of the interim governing board has certainly caused numerous management problems, especially in decision-making. With the appointment of the University Council in early M a y 1995, the election of rector and vice-rector, the University is n o w able to take the reins of its o w n management .

85

Appendices

5. The slow decision-making process

External factors m a k e it difficult sometimes for significant decisions to be taken within reasonable time; this leads to increased costs when the final decision is m a d e .

6. Bureaucracy

The University of Cyprus is no exception to the bureaucratic rule. The lack of any previous university experience leads to unnecessary bureaucracy at both the institutional and national level. This makes the task of administration even more difficult, especially w h e n crucial decisions need to be taken.

7. Establishment of efficient 'internal control systems'

Improvement in internal control systems will not only lead to substantial reduction in administrative and running costs, but also to proper, efficient and effective control and safeguard of all capital expenditure.

8. The scale factor

At 2,000 students, the diseconomies of scale are apparent. In the late 1970s it was argued that the University needed to have at least 4,000 students in order to take advantage of the economies of scale. In the 1990s, the figure will be higher. The diseconomies of scale are also reflected in the administrative costs, which amount to 14 per cent of total recurrent costs.

9. Communication and co-operation

The success of any organization is highly dependent on its h u m a n resources. Efficient communication and co-operation between its component groups is a very important factor for an effective and efficient management.

G o o d co-ordination will keep costs d o w n . Lack of an appropriate academic/administrative interface will tend to push costs up because the administration will tend to become a remote bureaucracy more concerned with monitoring decision-making and expenditure, than participating in it.

V I . Recent innovations to i m p r o v e the present system of financial m a n a g e m e n t

Despite the fact that the University is in its early stages of development, enough experience has been gained, so as to enable some realistic conclusions and recommendations on improving financial management.

First, the government needs to base its funding to the University on certain criteria, comparative statistical indicators or any clearly-defined strategic plans as to h o w the University fits into the national, economic and cultural framework.

86

Appendix XI

Secondly, the present process of the government approving detailed line budget' in which, a m o n g others, individual n e w posts m a y or m a y not be approved, must be abandoned. Such a process raises real questions of the University's autonomy and the possibility of political interference. The government needs to approve a total sum, a so-called block grant' and leave the University to distribute this s u m internally. This has been accepted elsewhere partly as a means of obtaining more efficient and effective expenditure in the universities themselves. The government can review h o w the resources it has allocated are being used through the national audit process;

Thirdly, with the completion of the student intake, the government needs to consider funding the University for a longer period than on an annual basis. In this respect, the University must submit a strategic plan for its development over the next five years, together with a detailed statement of financial needs for each year, broken into broad subject categories.

Finally, with the constitution of the Senate and the Council, the University must establish an effective budgeting and resource allocation machinery, e.g. by establishing joint committees or any other procedures deemed necessary.

87

Appendix XII The cost of education and financial adjustments

to fiscal stress: experiences from Y a r m o u k University, Jordan

by Professor Yaser M . A d w a n a n

Vice-President, Administration and Financial Affairs

I. Introduction

Yarmouk University ( Y U ) was founded in 1976, in the northern region of the Kingdom. The University received its first group of students at the beginning of the academic year of 1976-77 at a place regarded first as a temporary site. In 1986, the University was split into two universities; Jordan University of Science and Technology (JUST) was born and housed on the permanent site of Y U . All buildings, capital investments, colleges of sciences and medicine, laboratories and assets were handed over to J U S T University. A s a result, the intended temporary site of Y U became permanent, along with all the accompanying disadvantages.

(a) The philosophy of the University

1. Advancement of science and knowledge and utilization thereof, in the development of the country.

2 . Improvement of the quality of education. 3. Provision of academic and non-academic services to the community. 4 . Promotion of academic relationships and co-operation between Y U and other

universities.

(b) Objectives of the University

1. Giving more opportunity for higher education. 2. Preparing technical and specialized trained cadres. 3. Creating a scientific nucleus capable of producing research and studies for the

advancement of knowledge and progress in Jordan. 4 . Serving local and regional communities. 5. Developing better understanding and closer relationships between people and cultures.

At present, the University embraces seven faculties, four centres, and one institute, with 37 undergraduate programmes and 25 graduate programmes for the Master degrees. It has also been decided to initiate two doctorate programmes in history and Arabic literature (Annex 1).

The University has agreements and working programmes or protocols with 51 universities and 10 scientific or cultural institutions and centres. The co-operation agreements include: exchanging faculty members and researchers, students, administrators, technicians, and printed materials, etc.

88

Appendix XII

T h e number of enrolled students in the University in the A u t u m n semester of 1994/95 exceeded 16,000. Since 1980, a total of 35,000 students have graduated from the University (Annex 2).

T o date, the University has sent 403 students abroad, mostly to the United States, Britain, and France, on scholarships to obtain doctorate degrees in various specializations. Most of them have completed their studies and begun work in the University, while others (64) are still in the process of completing their degrees (Annex 3). The total number of faculty members currently exceeds 673 in various fields and specialties (Annex 4).

(c) The structure and governance body of the University

The governance body of the University comprises the following:

1. The Council of Higher Education, which approves the establishment of faculties and programmes, reviews higher education policies, decides admission policy, and approves the university budgets.

2. The University Council, which is the highest council in the University organizational structure, is in charge of suggesting students' admission policies, to the Council of Higher Education, and sets general policy and regulations that govern actions leading to the achievement of the university goals. It also regulates university affairs, reviews the budget policies and programmes, and evaluates implementation of general policies and by-laws.

3. The Deans' Council, in addition to duties entrusted to it by the higher education laws, regulates the affairs of academic disciplines, approves curricula and programmes, and co-ordinates education policies in the University. The deans' council is also charged with the goal of development and enhancement of academic tasks and standards and review of policies and actions of disciplines and academic staff. Additionally, the deans' council develops and approves policies concerning students' researches, faculty recruitment, selection, promotion and scholarship policies.

4. The President, is entrusted with the duties of co-ordinating policies of the University and setting up plans and strategies to achieve the University goals. H e is also in charge of implementing the decisions and by-laws m a d e by the University Council, Deans' Council and the Council of Higher Education. His responsibility extends to solving problems, and devising solutions, in co-operation with appropriate committees, bodies, and councils. H e represents the University and resides over meetings of the University councils.

5. The Vice-Presidents: T w o vice-presidents are assigned to assist the president in handling affairs of the University. Duties and functional responsibilities have been assigned or delegated to them in their particular domain.

The Vice-President for Academic Affairs: hierarchically, he is in charge of reviewing all academic affairs of colleges, students, scholarships, and promotion of faculties, with the help of a designated academic committee. All

89

Appendices

colleges and centres of an academic nature, report to the vice-president of academic affairs regarding issues, problems and policies of an academic nature.

• The Vice-President for Administrative and Financial Affairs: he is charged with managing administrative and financial matters in the University with the help of directors of administration units and committees. His duties include preparing and formulating administrative and financial policies and strategies of the University and devising methods and solutions to the problems pertinent to finance and administration. His duties extend to supervising the implementations of financial decisions and dealing with appropriate committees (budget planning, organization) and personnel. H e is also in charge of the budget preparation committee and allocates resources in co-operation with college deans and heads of faculties and administrative departments and programmes. All concerns and issues of administration and financial matters are reported to him from various colleges and units in the University. In addition, he directs supervision of administration and financial units in the University.

6. Assistants to the President: the president has also two assistants: one is in charge of issue of supplies and tenders, while the other is in charge of investment funds. The president's authority over such issues has recently been delegated to the vice-president of administrative affairs, and they report to his office directly.

(d) The organizational structure

While the previously-mentioned governing bodies of the University are part of its organizational structure, the following units are directly engaged in handling financial matters and issues.

1. Department of Finance

The department is charged with the management of all university funds and finance in accordance with the laws, by-laws, regulations, and decisions m a d e subsequently thereto. It is also charged with the development and implementation of the budget, plans, programmes, and procedures related to financial actions. The department is also responsible for taking the necessary measures and precautions and adopts adequate means of controlling and safeguarding the university funds and financial register.

T h e department implements the financial regulations, decisions approved by the University, and is charged with the preparation and execution of the University draft budget, operation of the financial accounts and keeping the books and registers.

The department prepares and analyses the financial and periodical reports which show financial trends in the University's activities and reports to and updates University officials on University accounts and the overall situation. It produces a monthly report on the financial position of the University, another report on expenditures and revenues every three months, and the annual financial report on the budget situation.

90

Appendix XII

2. Planning and Development Office

It provides suggestions and drafts plans to develop the University in general and gives advice on the development of work methods and simplifications and improvement of departmental functions through training and development. In addition, the department is in charge of plans and development projects for the University and reviews the University's present and future trends.

3. Financial Control Bureau

The bureau is charged with the task of reviewing and auditing internally the University revenues, expenditures, assets, and administrative decisions, to m a k e sure financial measures are sound. In addition, it is charged with the tasks of checking and testing the accuracy of operatives and data related to finance and the conformity of various University departments' actions, books, and registers to effective University laws and decisions.

The office also exercises the jurisdiction which ensures that University funds are properly disposed of, and their records and accounts are correct. Information obtained by the office and resulting from its duties are treated confidentially.

(e) The structure of University finance

e Revenue sources The University revenues c o m e from the following main sources:

1. Centrally-collected taxes

The main source of revenue for the University are the 'University' taxes imposed by the government on each single sale, by or through individuals or corporations, in the country. The tax is collected centrally by the Ministry of Finance and distributed among the five semi-State universities in Jordan, by the Council for Higher Education. The fund which comes from taxes, is disbursed unevenly between the five universities, according to four unstated basic categories of weights based on the number of students, development needed, budget totals, and n e w programmes. The collected revenues are then deposited in the University accounts every three months.

2. Government subsidy (fund)

The subsidy fund source is usually provided as grants from the central government's budget. The amount of funds received varies among universities from year to year. N o formal formula exists for the distribution of funds among universities, but the cabinet decides the funds on the basis of recommendation by the Higher Council for Education. The Ministry of Finance transfers the m o n e y every three months.

91

Appendices

3. Loans

This source is an extraordinary source of revenue which is usually provided on an ad hoc basis by the central government, or loans taken by the University from banks and guaranteed by the government.

4. Tuition and fees

It is the primary source of the University's revenue and is the second largest proportion of income after taxes collected centrally by the government. Students pay for their tuition in cash for the credit hours they register every semester, in addition to lump-sum fees for services.

Other sources of revenue c o m e from:

(i) fees obtained for services and consultations provided for the community and private institutions;

(ii) funded studies through the Jordanian Studies Centre; (iii) fees from other local or regional institutions abroad; (iv) services provided as consultations and training.

Table 1. Distribution of revenue sources for 1990-1994

Year Source

Gov . subsidy

Tuition

School tuition

Consultations

Taxes

Others (Donations)

Capital returns

Deficit

Total revenues

1990

950,000

4,382,451

150,689

61,629

4,933,172

348,966

1,019,478

000

11,846,385

1991

475,000

5,191,212

163,922

54,826

5,761,714

355,205

972,644

000

12,974,523

1992

000

5,118,503

219,227

61,071

8,811,338

555,473

1,233,458

000

15,999,070

1993

000

4,950,510

202,169

84,700

8,706,897

365,979

1,204,192

4,475,824

19,990,271

1994

500,000

5,678,149

186,182

102,664

8,696,458

509,765

1,129,455

3,128,348

19,931,021

% 1994

2.5

28.0

1.0

0.5

44.0

2.6

5.6

15.8

100

5. Donations

The main source of donations comes from the private sector, in addition to donations from individuals or local, regional and international institutions to the University in terms of equipment, m o n e y , buildings or chairs. This source usually covers the budget deficit for previous years. For example, the Islamic studies received last year 10,000 J D in donations, the economics college received a computer laboratory of 60,000 J D and the Institute of Archaeology received a little over 50,000 J D .

92

Appendix XII

6. University investment funds

The University invests assets in stocks and real estate. The investment returns are either reinvested or reallocated as University funds to support its budget for financing some income-generating projects. Last year, the investment fund supported the University budget by 750,000 J D . The fund is also expected to finance, in 1995, an investment building for the University.

Although all sources of revenue have been growing, in absolute number, the University budget is suffering from deficit. Devaluation of the Jordanian dinar in 1988 has been devastating for the University budget. This is particularly true for the purchase of scientific equipment and laboratories. T h e Jordanian dinar used to be equivalent almost to 3 dollars prior to October 1988; currently, the J D value runs at around 1.4 dollars. This implies an extra expense per item of purchasing from abroad (almost a 100 per cent increase in the price of each single item). In addition, capital investment in the College of Engineering and Sciences cost the University, in 1993/1994, more than 3 million J D in buildings, laboratories and equipment before accreditation.

• The University expenditures

University expenditures are categorized in the budget according to objects of expenditure. In Table 2 , it is apparent that the recurrent expenditure category is the largest object of expenditure, which includes expenses on salaries and wages for the University staff. It also includes securities and benefits associated with wages and salaries, such as savings, bonuses, retirement, securities, etc.

Table 2. Distribution of expenditure by objects for F Y 1990-1994

Salary

Faculty salaries

Employee salaries

Workers' wages

Total

Securities and benefits

Supplies

Students' service

General service

Research and scholarship

Capital expenditure

Development Expenditure

Loans and debt payment

Total

1990

3,075,883

1,974,796

116,004

6,217,683

1,122,913

689,829

349,825

1,021,007

424,892

723,316

769,645

500,275

11,846,385

1991

3,664,425

1,954,064

1,221,772

6,840,261

1,312,112

659,492

344,671

812,518

328,912

799,819

1,372,655

504,583

12,974,523

1992

3,983,513

2,531,296

1,409,675

7,924,484

1,547,492

793,790

324,473

982,584

543,830

1,238,277

593,100

2,051,040

15,999,070

,1993

5,486,865

3,076,121

17,482,261

10,311,247

1,784,073

861,726

376,586

1,132,163

744,505

1,747,587

4,440,798

2,591,586

19,990,271

1994

6,150,461

3,347,350

2,018,903

11,516,714

2,039,834

755,140

329,558

1,154,267

711,148

1,342,563

644,815

1,436,982

19,931,021

93

Appendices

The distribution of expenses on various expenditure objects.

It is apparent that expenditure has been growing in almost all categories, especially for salaries and wages. This is due to increments in salaries given to employees and faculty members in 1993/1994. Student activity costs remain almost constant with little variation. Central administration costs have increased by over 10 per cent over the period.

II. T h e cost of education activities at Y a r m o u k University

This section aims at analysing the cost of education at Y a r m o u k University for the Fiscal Year 1994. The study employs the criteria of cost per course/student. For the purpose of this analysis, data were collected from the finance department, and registrar, utilizing information derived from the computerized system of expenditures and revenues.

1. The cost analysis is based on the cost per credit hours and not cost per student, in general, since a student in any discipline is required to take m a n y credit hours provided by other schools, or colleges. For example, each student in the university regardless of his field is required to take 21 (as a university requirement/hours) and 27 credit/hours as college requirements. The cost per student varies from one discipline to another and from one college to another. Therefore, the cost per credit hour achieves the following advantages, and it is more accurate than cost per student at large (Annex 5) .

2 . Tying the direct cost to units (cost centres) to achieve a clearer picture of unit cost, since indirect cost of education is not tied to a specific college.

3. Excluding expenses which are not related directly to education purposes.

4 . Determining the optimal economic size of each department for future planning.

Table 3. Courses distribution by college for 1993-1994

College

Science

Econ. and adm.

Art

Engineering

Education and

fine aits

Religion

Physical

education

Total

Total courses

FaU

1994/93

14,641

14,592

20,403

3,808

15,101

5,871

2,075

71,541

Summer

1994/93

5,789

5,946

7,515

1,470

4,904

2,081

1,192

28,897

Spring

1994/93

14,408

15,663

21,953

3,906

11,222

6,361

2,494

76,007

Total

34,838

36,201

49,871

9,184

26,277

14,313

5,761

176,445

% of semester to total

Fall

1994/93

20.5

20.4

28.5

5.3

14.2

8.2

2.9

100.0

Summer

1994/93

20.0

20.6

26.0

5.1

17.0

7.2

4.1

100.0

Spring

1994/93

19.0

20.6

28.9

5.1

14.7

8.4

3.3

100.0

Total

19.7

20.5

28.3

5.2

14.9

8.1

3.3

100.0

% of change

FaU 94/95

Spring 93/94

-2.6

7.3

7.6

2.6

10.6

8.4

20.2

6.2

Archaeology and language courses are included.

94

Appendix XII

T o achieve the above-mentioned purpose, the study concentrates on the following points:

1. Analysis of current cost per course/section in each college provided by various academic departments and the teaching cost of the University staff, determined by the number of students registered for each faculty m e m b e r in each department.

2. Analysis of actual expenditure for F Y 1994, for determining direct/indirect expenses according to academic disciplines and administrative departments (Annex 6).

3. Determination of the cost of the courses, which is then calculated as per section/students.

4. Analysis of the cost objects of other departments' activities.

Table 4. Average teaching load by college

College

Science

Economics and adm. sciences

Art

Engineering

Education and fine arts

Religion

Physical education

Total

Total course

34,838

36,201

49,871

9,184

26,277

14,313

5,761

136,445

Faculty member*

124

72

158

29

73

25

16

497

Average load for each member

281

502

316

317

360

572

360

355

Extra load payment **

1,005

1,574

1,194

2,281

1,015

1,307

1,360

1,249

* Present active members ** Cost (payment) for each faculty member

Data pertinent to the (student) course provided by each college and the actual teaching staff are gathered for the Spring/Autumn semesters and S u m m e r sessions. The following observations are made:

1. The College of Science, Economics and Art provided 69 per cent of all university courses.

2. The number of courses offered between 1993-1994 rose by 6.2 per cent.

3. Differences exist a m o n g colleges in terms of the teaching load for staff members (counted on the bases of the number of students in each section/course). For science

95

Appendices

college, the average number of students for each staff m e m b e r (teaching load) was 280 students per a n n u m , while the average number reaches 572 students in the College of Islamic Studies.

4. A strong correlation exists between the average teaching load and the average extra-load payments (teaching load increases as an extra payment given to staff teaching overloads).

(a) Expenditure analysis

For the purpose of this study, an examination of expenses on university activities as it relates to education were analysed and categorized as follows:

1. Expenses which have no direct relation to teaching/education activities are excluded. These are:

a. Model childrens' schools

b. Capital expenses (stocks, etc)

c. Restaurants

d. Scholarships abroad

e. Credited accounts

in JD

306,700

959,000

221,900

459,500

875,700 (commitments)

2. Administrative and operations expenses (distributed proportionally according to the number of courses offered by each college):

Central administration Computer centre Public relations Student deanships Library Admission and registrar Projects office Auditing office Finance Services

373,500 174,100 313,300 585,200 699,000 180,600 35,810 56,000

180,060 1,848,300

Social security Insurance Personnel Development office Production Supply Security Building Tender office Total

411,600 668,500 158,000 35,100

639,100 640,800 361,600 33,000

293,000 7,819,900

Administrative costs represent 47 per cent of total recurrent expenditure, reallocating directly 2.5 million J D of recurrent expenditures to colleges, data analyses are carried out on:

(i) cost share of college employees in social security for each faculty's teaching expenses;

(ii) the cost share of college employees of overload expenses; (iii) college share of savings fund for their employees;

f. Infrastructure

g. Deanship of research

h. Centre for Jordanian studies

i. Continuing education

j. Housing (dormitories)

in J D

150,000

268,700

40,500

140,200

100,000

96

Appendix XII

(iv) college share of cost on health insurance, investment, department production and maintenance.

3. Direct expenditures are distributed a m o n g colleges on the bases of course/student cost:

(i) Recurrent expenditures: Recurrent expenditures constitute the largest proportion of expenditure item in the University budget. W a g e s , salaries, employee benefits and securities are the main consumers of University finance. The University spends close to 66 per cent of its budget on this category alone.

(ii) Capital expenditure, such as equipment, laboratories, vehicles, buildings and land acquisition, constitutes around 20 per cent of the total budget.

(iii) Expenditures including central administrations and services, consume the rest of the budget.

Table 5. Average cost of course by college

College

Engineering

Science

Physical education

Arts


Economics and a d m . science

Religion

Total

Direct

112

75

59

47

39

27

27

49

Indirect

44

44

44

44

44

44

44

44

Total

156

119

103

91

83

71

71

63

% of student tuition

share of direct cost

40

40

41

51

62

89

89

Salaries and wages in addition to employees' benefits and securities constitute 66 per cent of the total budget expenditure (81 per cent of total expenses of education, direct expenses). Salaries of faculty members in all colleges constitute only 48 per cent of the total expenses on salaries and wages by the University, while employees' (non-academic) salaries take almost 52 per cent of the total expenditure on salaries and wages.

The cost for some of the above-mentioned expenditure categories m a y have an indirect relation to education (e.g. research funds/scholarships was around 711,148 J D , in 1994). However , w e cannot include it fully in one fiscal year since it covers expenses for research and scholarships which m a y run over m a n y years, and vary considerably through the year.

The criteria cost, per student at large, m a y be used here, but still the criteria of the course cost will ultimately reveal more accurately the student cost per college. However , a preferred method is to employ course/student cost, since existing differential variations a m o n g faculties do not exceed 3 per cent of total expenditures a m o n g faculties. Based on this criteria

97

Appendices

for total cost, it is considered more accurate, since it deals with cost per student per college or discipline.

It should be mentioned here, that a disparity in the cost of education exists between colleges. In sciences and engineering the cost per student is higher in J D terms, by 75 per cent over the average cost by humanities (Annex 7).

(b) Measures to reduce cost disparity include:

1. Increasing the number of students admitted to sciences, engineering, and physical education colleges. In this respect, the University is planning to increase the total number of students admitted to these colleges to 120 students in each department, every year.

2. Studying ways of reducing the cost of establishing n e w laboratories for engineering and sciences colleges. A proposal has been m a d e to collaborate with neighbouring J U S T University to utilize their laboratories for Y a r m o u k students on the bases of leasing (renting) laboratory time.

3. Analysis of average cost of teaching, administration, supply and equipment, and other costs for students in each course (Table 6). The results of direct costs reveal:

Table 6. Distribution of average direct cost of course in J D by College for 1994

College

Science

Arts

Economics and admin, science

Engineering


Religion

Physical education

Average

Faculties' salary

37.7

31.3

18.4

33.3

25.9

16.8

34.7

28.1

Employees' salary

8.10

4.3

1.9

11.7

3.4

2.8

11.9

4.9

Supplies

6.3

1

0.1

7.9

1.7

0.6

1.4

2.3

Direct capital

11.5

44.9

4.6

Summer and

overload

7

6.8

4.8

11.2

5.1

4.1

7.5

6.2

Share of benefits

4.4

3.7

1.8

2.9

2.5

2.5

3.8

3.1

Tota 1

75

47

27

112

39

27

59

49

The average cost of teaching salary per course ranges between 17 J D in the college of education and 38 J D in the sciences college. This rise in teaching costs for science m a y be explained by:

1. The cost of faculty m e m b e r salaries in the college of sciences has risen more than in other colleges, since it is one of the largest and oldest colleges in the University. For example, the percentag of professors and associate professors in the sciences is 44 per cent of the total college faculty, 45 per cent in arts, 41 per cent in engineering, and only 32 per cent in Islamic studies, 30 per cent in fine arts, 29 per cent in economics and 14 per cent in physical education.

98

Appendix XII

2. The costs of employees' and technicians' salaries and other associated benefits have risen m u c h in the colleges of physical education, sciences and engineering, while such costs are less for the faculties of economics, Islamic studies, and arts.

3. The capital cost for each course in the college of engineering has risen relative to other costs for the faculty, due to n e w laboratories and equipment.

4. The cost of extra-load payments and s u m m e r sessions in engineering reached 11 J D per course/student, while for religion it cost 4 J D .

(c) Analysis of major cost components

1. Employees' salaries and wages: the total expenditures on wages and salaries of employees reached 13.4 million J D in 1994, which constitutes 66 per cent of total budget expenditures and 81 per cent of recurrent expenditures of education costs, which are distributed as follows:

(i) the percentage share of direct salaries and wages (10,261,802 J D ) is 77 per cent of total salary expenditure;

(ii) the percentage share of extra work payments (1,174,000 JD) is 9 per cent of total salary expenditures;

(iii) the percentage share of university payments for employee securities reached 14 per cent (1,933,300 JD) of total salary expenditures.

2. The faculty members ' salaries represent 48 per cent of the total expenditures on salaries and wages, while salaries of employees and workers represent 52 per cent of total direct expenditures. The cost of salaries and wages is considered to be a problematic issue for the University management, since it consumes a large portion of the University budget and represents m u c h higher than acceptable standards.

3. The present figures of salaries and wages expenditures have resulted from a policy of over-employment, recruitment and staffing, due basically to employing more personnel than needed in the University. The total number of employees reached, in 1994, 1,825, while faculty members reached 673, of which 20 per cent are currently on leave of absence or on sabbatical leave. The percentage of faculty members to employees is currently 1:3 which is double the acceptable international standard. The employment inflation is very clearly responsible for m u c h of the cost increase per student/course, particularly since the percentage of student enrolment dropped by an average of 8 per cent between 1990-94, while employees increased by 22 per cent for the same period.

4. Currently, the cost per faculty m e m b e r is 9,985 J D , including the cost of extra teaching load and 4,729 J D per employee. However, the percentage share of cost carried by the University of faculty securities and benefits constitutes 10 per cent only of the total cost of salaries, while it represents 18 per cent for employees and 20 per cent for workers as percentages of total cost of salaries and wages. In J D terms, the

99

Appendices

yearly indirect cost is 1,000, 800, 520 for each faculty m e m b e r , employee, and worker respectively.

5. The percentage increase in salaries between 1990-1994 climbed to 81 per cent for employees and 65 per cent for faculty members.

6. Despite decreases in the number of enrolled students between 1990-1994, the number of courses offered by the University increased by 13 per cent over the same period. The enrolment drop was probably due to cancellation of evening-study programmes in 1991-1992. The continuation of present trends of salaries and benefits increases (averaging 20 per cent yearly) m a y threaten further the University's future, financial situation and cause further growth decline in the progress and financing ability of the University.

7. The University witnessed between 1990-1994 an increase in the ratio of faculty to employees from 1:2.7 to 1:3, and an increase in the ratio of employees to students from 1:11 in 1990 to 1:8. This is considered by the University management as an indication of inefficiency and quality decline (Table 7).

Table 7. Comparison of University faculty, and employees' and students' ratios 1990/91 - 1993/94

Indicators

Ratio of employees to faculty members

Faculty member/students

Employee/students

Courses/Faculty

Courses/employee

1990/91

1/2.8

1/31

1/11

1/292

1/104

1993/94

1/3

1/24

1/8

1/274

1/90

8. Despite the apparent ratio decline of faculty to students from 31 students in 1990, for each faculty m e m b e r , to 24 in 1994, the ratio remains constant if w e exclude research/teaching assistants, which are numbered at 14, from the total number of faculty numbers. Furthermore, the ratio of faculty/student varies a m o n g colleges, for example, 25 students in physical education, 26 in engineering and art, 46 in Islamic studies and 51 in economics for each faculty m e m b e r . This ratio exceeds the international standards of faculty/students ratio, which ranges between 15-25 for sciences and engineering colleges and 25-40 for humanities.

9. The cost of health insurance in 1994 totalled 1,056,096 J D , of which 240,868 J D is paid by the University staff (Table 8). This means that the cost of health for each insured m e m b e r in the University is about 270 J D .

100

Appendix XII

Table 8. Distribution of health insurance cost for 1994

Cost paid (in JD)

200 and above

1000-1999

500-999

200-499

100-199

Less than 100

Total

Number of insured

28

123

422

790

421

621

24.6

Total cost

70,907

163,006

288,000

268,600

63,420

22,100

876.96

Average cost of each insured

2,535

1,325

682

340

150

36

364

(%)

recipients

1.2

5.1

17.6

32.8

17.5

25.8

100

of the total

8.1

18.6

32.9

30.7

7.2

2.5

100

However, the actual cost of each insured m e m b e r varies tremendously, ranging between 100 J D to 1,550 J D . Almost 6 per cent of the insured cost 27 per cent of total health cost, and 26 per cent of the insured cost less than 25 per cent of the insurance cost.

(d) Suggestions

T o reduce the cost per student, and to increase the University's ability to combat financial pressures, following are some suggestions:

1. Planning courses scheduled on a yearly basis rather than on a semester basis; this will allow departments to offer courses for the A u t u m n semester which m a y not be offered for the Spring semester.

2. Cancelling courses or sessions which have less than 20 students for the undergraduate programmes, to reduce costs of teaching per student.

3. Increasing the number of admitted students in engineering, sciences and physical education to utilize fully their capacity and h u m a n resources.

4. Limiting the m i n i m u m number of students registering for graduate studies to five students (at present there are classes with only two students).

5. Increasing enrolment in each graduate programme from an average of 10 students to 25 students each year.

6. Co-ordinating plans between schools in each faculty to establish an interdisciplinary approach to teaching and cross-listing of courses for different, but s o m e h o w related, departments.

7. Re-establishing and expanding the evening programmes in selected schools to further utilize the university facilities.

101

Appendices

8. N o t allowing graduate students to register for less than six hours each semester; at present they are allowed to register for three credit hours.

9 . Market ing and promoting graduate and undergraduate p r o g r a m m e s abroad, especially in archaeology, Arabic language p r o g r a m m e s for non-native speakers of Arabic in language centres, and other fields.

(e) Organization

1. Freezing e m p l o y m e n t for the c o m i n g five years, with limited exceptions. A t present e m p l o y m e n t is frozen for 1 9 9 5 .

2 . Redistributing and reallocating staff, and utilizing s o m e qualified administrators for teaching positions in the University.

3 . Encouraging early retirement.

4 . Restructuring the organization, w h i c h is currently being considered seriously b y the University m a n a g e m e n t (administration with service).

5. Continuing the policy of reorganization and rehabilitation of employees to meet n e w demands and developments.

6 . Establishing a unified cost-accounting system for the university units.

7 . Lifting subsidies for s o m e units, or at least reducing subsidized activities b y 5 0 per cent, such as m o d e l school, students' dormitories and restaurants.

(f) Recommendations

1. Central governments should give m o r e grants or funds to universities, since the State decides admissions policy and the n u m b e r of students allocated to each university and also determines tuition.

2 . Raising students' tuition b y 1 0 0 per cent, at least of the current level. Students' tuition per credit hour is currently 8 J D in humanities and 1 0 J D in sciences, while students in a private university pay , for example , 4 0 J D in humanities and 6 0 J D in sciences. This m a y raise university revenues b y an additional 3 0 per cent of total revenues and compensa te for s o m e loss of revenues due to inflation and the dinar devaluation.

III. Strategies a n d innovations to i m p r o v e financial m a n a g e m e n t

T h e University has e m p l o y e d m a n y strategies to c o m b a t fiscal stress and improve its finance. Chief a m o n g these are: organizational strategies, interpersonal strategy, and co-production strategy, in addition to the budgetary strategy. These four strategies and the tactics (which give t h e m expression) are presented next. T h e specific examples of strategies

102

Appendix XII

used by the University are not intended to be comprehensive, but rather to provide specific illustrations drawn from the University's recent experiences.

(a) Budgetary strategy

This strategy addresses h o w the University has attempted to effect retrenchment through alterations of its budgets. This is the strategy most used and commented upon in the literature. The tactics that give it form are familiar ones: seeking direct means of developing n e w revenue sources and/or effecting expenditure cuts.

Under fiscal pressure the University budget has become more of an instrument for targeting cuts and generating n e w revenues, than devising and licensing n e w programmes and continuous revenues. It is also becoming less of a stabilizing and certain process and more of an instrument of change. (This year, for example, tax revenues were withheld by the Ministry of Finance for three months for no clear reason). This makes detailed planning more difficult.

Programmes and activities costly to the University were tested for cutting or elimination, while those which m a y possibly provide revenues receive major consideration on the University policy agenda. For example, capital investment in activities which generate revenues has increased (more m o n e y was put into establishing a heritage m u s e u m and a natural history m u s e u m , which generate income through entrance fees).

(b) Tactics of such strategy include:

1. The University is developing a small parking construction, at the edge of its northern side, to serve traders w h o have to pay parking fees.

2. Tourists and visitors pay entrance fees to the heritage and natural history m u s e u m s .

3. The University housing in the Red Sea site, which was built to serve the University staff, particularly the marine science station, is leased to University staff, w h o take vacations and visit the Aqaba (Red Sea) resort area.

4. Maintenance: a deferral policy of not replacing capital stock and deferring maintenance is being used.

(c) Organizational strategy

Remarkably, the structure of University programmes and departments' services has remained continuous and budget functions have been quite steady.

Tactics of such strategy include:

1. Overload teaching is still provided, but is reduced.

103

Appendices

2. Health insurance is seen as an essential benefit, and is still provided, but through a government comprehensive health centre (provided by the Health Ministry for one-third of the total cost of health insurance in the previous year, health insurance is paid by the University, to the Ministry of Health).

3. Facilities are still provided for community users (like theatres and conference halls) but are charged for.

4. Merging multiple departments into single departments: department of planning merged with department of development; buildings and estates bureau merged with the office of engineering and maintenance.

5. Consolidation of multiple activities into a single bureau.

6. Transferring the cost of research typing, e.g. to researchers, whereas previously provided by the University.

7. Cutting organizational costs (e.g. regulating energy consumptions, reduction of the scale of operations, cutting expenses of students' extra-curriculum activities). Organizationally, the issue of fiscal stress was quickly assigned an instrumental role. The need for continuous flow of revenues prompted university administrators to concentrate on obtaining finance though short-run economy-efficiency criteria.

8. Organizations kept costs low by cutting operations, laying off employees, consolidating activities, freezing benefits and cost cutting.

Areas where organizational strategies have been used, were not only limited to internal re-orientation and re-design of structure. Strategies attempted by the university administration to effect the budget, extended to external organizations:

1. N e w ventures and inter-jurisdictional co-operation between university functions have been a practical feature of organizational strategy.

2. Co-operative agreements, with other universities or institutes.

3. Combining functions or services between universities to share certain responsibilities for which both are held accountable, are a m o n g strategies adopted by the University, providing joint services such as health service/marine science station; inter-library usage w a s shared with Jordan University; staff housing/the model school; and storage was also shared with J U S T University.

(d) Entrepreneurial strategy

T h e third strategy focuses on financial issues, but not in the form of budgetary outcomes alone. This market-oriented strategy focuses instead on a particular w a y of altering incentives that bear on h o w a budget is developed. Rather than depending on central budget allocations as a principal device for determining h o w m u c h of particular services will be produced, this strategy opens up consumer-choice dynamics as an element of the revenue process

104

Appendix XII

(Strausman, 1981:55). Costs are associated with particular services, and beneficiaries of these services are asked to bear all or some portions of these costs.

Using various expressions of pricing devices, a market-oriented strategy is designed to associate costs with benefits for setting the level at which a particular service is to be provided. This is responsive to the observation m a d e by some economists that any free good' will be consumed irrespective of the priority it has to consumers (Samuelson, 1987).


1. Instead of rationing a limited number of accepted students, in the computer training centre they are rationed by prices so that those w h o want some (or more) of them, are allowed to get them by paying for them (Poole, 1980).

2. The strategy encourages some departments to become more market sensitive in developing services that will sell' in the sense that receivers will pay fees and charges for services they want.

3. People pay for services provided by various departments, such as painting and design services in the department of arts, or using the swimming pool in the physical education department, or computer training in the computer department.

4. Entry fees and charges for m u s e u m s , university band and sports facilities.

5. The University contracted out services like cleaning and equipment maintenance.

(e) Co-production strategy

The University has attempted to combine private resources with University resources in n e w ways to co-produce services. Such combinations m a y have the effect of achieving multiple (often joint) outcomes from previously separate systems.


1. Offering recreation activities for local community and staff using the University's facilities, while salary of recreational staff are paid by recipients. Resources are combined from both the University and private sources (e.g. University facilities and the time of volunteers interested in recreational activity).

2. Sharing costs of excavation by Y U and other international institutes, whereby Y U provides housing, transportation, administrative services, while other institutions pay for the cost of excavating and the cost of publishing results.

3. Building a research station in Jordan valley with a European university.

4. Fund-raising: the University receives funds raised by leasing computer time for research and conferences.

105

Appendices

5. U s e of volunteers; for example photographers, sports trainers, festivals, etc.

6. Hiring of part-time professionals.

(f) Conjoining strategy: a policy blender

It is clear that a fiscal crisis in the University has produced a considerable ferment as to strategies and measures to deal with it. Perhaps w e tend to over-estimate the weight of budgetary strategies, even though these have clearly been an outpouring of creative energy in developing ways of handling fiscal crises beyond straightforward budgetary processes;

The four strategies, organizational, budgetary, entrepreneurial and co-productive and their attendant tactics, could be a more useful approach than assuming that all adoptive methods to retrenchment are derived from budgetary strategy alone. While this has been useful, it is also fair to emphasize that the most effective strategy appears to be one that conjoined elements of all four strategies.

T o illustrate the conjoining strategy, one m a y say that some of the most sophisticated cases are ones where the University has interwoven several strategies to produce a particular outcome. W h e n the University, for example, began putting a price on its community service (beyond a certain level assumed to be free') the University was using a market-oriented strategy (using price to discipline demand) that had a direct budgetary outcome (new revenue was raised), that was in part designed to produce a different organizational outcome within the University (a decreased portion of available time to be expended on this service), and that worked, in part, by creating a n e w public/private co-operation (university worktime linked to private funds from the specifically-benefited public). Nonetheless, the four categories are a useful means of highlighting the diversity of strategies that have been employed in effecting retrenchment, especially to m a k e clear that these policies are by no means limited to budgetary ones. They almost always have some budgetary consequence, but they should not properly be thought of as if they were principally budgetary devices.

T o further illustrate this point, one m a y cite the University budget's formation, where the University effected a change that appeared to be budgetary, but is best understood as a sophisticated conjoining strategy. Prior to fiscal pressure on University budgets, the University had annually set the budget on a line-item basis, holding the accountable to assure that there was no over-expenditure by year's end. Following fiscal stress in the budget, the University decided that there were so few n e w funds to commit, that the amount of effort they had invested in line-item budget review was not worth the energy. They instead began adopting the prior year's budget as the next year's budget, and combining functions like securities with salaries, and wages as recurrent expenditures, and assistance with others, in one category. This has the effect of giving the University the right during the year, to propose altered programme levels and services. Additionally, it allows to shift funds in the University budget between expenditures function and to evade conditions set by the Higher Council of Education on funds.

This acted to create a powerful set of incentives to increase revenues by fee and decreased expenditures in less valued activities. Since this included the right to partially carry forward funds between fiscal years, the role of the University, as an example, changed rather

106

Appendix XII

dramatically. Previously, the college would lose1 unexpended funds (i.e., the funds would return to the general fund for re-budgeting) and would therefore, by year's end, find ways (however inefficient) to spend assigned funds to exhaustion. Subsequent to the change, colleges had great incentives to save (in order to develop funds to start preferred projects).

(g) Problems

Despite the successful efforts and measures taken by the University to improve its financial management capability, m a n y problems and obstacles remain chronic. Major among these obstacles are:

1. Fiscal pressure: budget stress increases on a yearly base parallel to increases in cost of education and n e w demands on budget, like salary adjustment, and inflation.

2. Over-employment: the University ratio of faculty employees, which runs at around 1:3, and employees/students 1:8, is an indication of the inefficiency and reflects the under-utilization of employees. Unfortunately, little can be done about it, labour laws in Jordan prevent the University management from down-sizing or laying off employees. Measures to reduce its effects include: freezing employment, no rehabilitation and retraining, no replacement.

3. The final number of admitted students is not actually decided by the Higher Council of Education, but rather by the number allocated in accordance with the quota system of admission, which is not subject to approval by the Council, but by the government.

4. Frozen tuition: The tuition per credit is determined by the government and not by the University. Tuition remains constant at 8 J D per hour, since 1980, and is considered by m a n y politicians as not a viable solution, politically, at this stage.

5. Absence of a unified accounting system, and data which can be used on categorized and itemized forms. Recently, the University management m a d e a decision to establish a cost system in the finance department.

6. The existing information system is disintegrated. Each unit has its o w n information which m a y not be connected to other units' information systems. The University is currently implementing an information network which m a y overcome such a problem.

7. The debt payment which has been shouldered by the University in order to build its intended permanent site, that eventually became J U S T University.

107

Appendices

Annex 1. Graduate students by faculty, specialization, degree and sex in the first semester (1994/1995)

Faculty Degree Sex Specialization

Grand total

Faculty of Science

Faculty of Arts

Faculty of Education and Art

Faculty of Economics and A d m . Science

Faculty of Sharia and Islamic Studies

Faculty of Archaeology and Anthropology

Language Centre

Total

M . Sc. Mathematics Physics Chemistry Biological science Statistics Earth and env. science

Total

M . A . Arabic lang, and lit. English lang, and lit. History

Total

M . A .

Diploma

A d m . & ed. found. Educational psychology Curricula & teaching

A d m . and ed. found. Educational psychology Curricula & teaching

Total

M . A . Business adm. Public adm. Economics

Total

M . A .

Diploma

Islamic econ. Education in Islam

Islamic studies

Total

M . A . Archaeology Anthropology Epigraphy

Total

M . A . Translation

F

298

42

7 6 9

11 5 4

58

34 7

17

118

14 16 21

9 17 41

6

2 2 2

17

3 8

6

35

14 13

8

22

22

M

962

135

35 21 23 14 14 28

152

77 42 33

409

70 58 58

40 23

160

67

10 9

48

85

37 35

13

84

28 32 24

30

30

T

1,260

177

42 27 32 25 19 32

210

111 49 50

527

84 74 79

49 40

201

73

12 11 50

102

40 43

19

119

42 45 32

52

52

108

Appendix XII

Annex 2. Students enrolled for the Bachelor's Degree by Faculty and sex in the first semester (1994/1995)

Sex Faculty

Total

Faculty of Science Faculty of Arts Faculty of Education and Art Faculty of Economics and Administrative Science Hijjawi College for Applied Engineering Faculty of Sharia and Islamic Studies Faculty of Physical Education

F

6,318

1,307 2,423

888 948 117 534 101

M

7,701

1,610 1,623

506 2,621

652 386 303

Total

14,019

2,917 4,046 1,394 3,569

769 920 404

Annex 3. P h . D , M . A . and M . Sc. scholarship grants awarded by Yarmouk University on 30 October 1994

Sex Faculty/Centre

Total

Faculty of Science Faculty of Arts Faculty of Education and Art Faculty of Economics and Administrative Science Hijjawi College for Applied Engineering Faculty of Physical Education Institute of Archaeology and Anthropology

F

4

1 2

1

M

60

8 3

18 7

19 1 4

Total

64

8 3

19 9

19 2 4

109

Appendices •ä с«

ей

э I -

ä ï

S

. ^

о ад

. Я

^

о щ

со U .

о .д £* 5 *° •§ '* §< ^ J •"< ^ ° ё з

da «¿

в о

и

та 2

о, SP Я

•!-! b

-, tí 4

И1

¿а •я о •�

й Theo

CA О

сл

>» л ^ fe

App. Cent

"О

с —

2 S О

S

3 о

СП vo

ON

^н C

N »-I

y—i

Я Я

я •<

P-.

^H

fT) >—

I

¡11 й

i ce

л V

U

en ой Л

CU

^ О

)

ей л н

3 •

се рц S

•V

и э

I

о о

СП СП

рц

я я

СЛ

ее S JO ü S

¿8

<¡ со PQ PQ

О

Cl«:

110

Appendix XII

ON ON

5-н <D ел

а СЛ

PU l-i

cS

<Ü

Ы)

О

ел

13 О >

ft ел ел

О

U

»Л

X (D

С

с <

ел

И

С

Ы

J

о и с* ы я о ё ел

а

ел

ел < Z ел H Z Ы

О

¡Э

ел

fe

О

Си Ed

NUMB

M о H я

р

.2 «

-С

о (Я

С

5 'S 3

,2 в

"3 О

S

i СЯ

C

J

Сч а»

CA

в .о |Й>

в о

•3 eu

я в

и

.3. "О

„

и

ш

¿6 <

¡SD

в "С си

eu

"5Ь в

с «

J СЯ

ь>

< ел

CJ

• •

=

е

о с

В

TS

о я

И

¿3

СУ

и В "3 ел

ЬС

в а» «s

ЕЯ aj •«

И

=

¡ £

*-

"Д

ОЗ

W

О. cu

т—1

s I—I

о in

i—l

vn

i-H

oo m

S vO

CS NO

1—1

i-H

l-i

оо

s с

es" i—

1

cu о с CU

'о ел

CS O

N

m

1—

1

о го t

m

^ со

1—1

ON

г»

VO

5 г

i—*

о го" 1—

<

ON

CS m

СЯ Св

.a ь i

'S О

.3 к

в w <

о 1-1

-Н

oí

CO

I—

1

т—

1

ON

со

8 1—1

о ON

VO

го

1—

1

ON

VO

1—1

о ^ in"

I—(

<ч т—

1

I—I

s 1 ON

оо 1—

1

es"

ON

ON

s 1—

H

c

«o

CS

ON

со

CS

со

CS O

N

CS -3-l-H

I—I

v©

i-H

m

r-CU

3 4

с с

ев <U

Л и

ОО

о оо. со"

з оо со

CS

CS

ьо с

•g <u .5 ьо с W

"3-O

N

К

CS vo

Tf

CS "Sf l-H

VO

ON

00

S. m

"

го

VO

I—1

I—1

ON

8 CO

58 CS

С ел

О g

Я

<«

° «•>

t3

.S

И fe

т—1

г

оо. in

"

«у

vO

со

CS in

vn

VO

о f

I—1

ON

OO

CO

g

VO

CO

O

N

J-

О i-H

I—

1

g So *a3 Pi

m

r-о es"

CS

r-m

in

l-H

CO

1—1

1—

1

о CS

00

•3-

oo C

S 1—

1

CS ON

с 13 • rt •У

ев со

О

>

3

J3 "О

Pv, W

r~

CO

°i cs"

in

о CS es"

I-H

i-H

"* CS

l-H

CS

со

13 в

о •a

o О

G

3

.и

"ТЗ 'о

W ел

v5 ^ i—

i

со

1-Н

i—

I

СО

\о

CS ON

vo

m

t—i

S vo es in

l-H

VO

CS

i-H

ON

T-H

Д CU

а

'о i<

С

О

N©

О

о со"

Tf

1-Н

00,

45 r

О

, гГ

ю

со

f~

rf

О

»О

NO, NO

1

С?\ со

о тН

4

fS

ON

т

fS

я »л

VÓ4

У-(

V)

СО

VO

тН

"я -4

-1

о

111

Appendices 2 "о

H

a

П «a

w

A3 "°

Он

O)

О

О

co^ od in

O

N, ^"

О

О

1—1

od VO oo-

oo vo

со

8 со oo"

m es" i—

i

oo

VO CS VO

СЮ

i—i

CS

о о oo о" г—

^1-

I—I

CS

"3-С

П

ON •sí-"

o" l-H

CS

ON

VO"

о о ON O

N r—

I 0

0

8 00

m CS

ON vo" r—

I

vo"

о о 8 VO

m

vo"

vo

c¿

8

•síe

s

СП

, oo

es" CS vo" CS

•sr o" CS

CO

in"

8 со m vo

CO

vo"

CO

I—

I

CO

•s

f

e о

11

о о °°« ON" г-vo

г-; od oo

•sl-

•<t

•SJ-oo m

•sl-

cs" •4

-•sl-CS

oo es"

«n VO

8 ON

CS

es vo" CS

с

,c "Sc а

Ы

in

о со

8 cs" »n es" 1—

(

8 CO

O

N"

VO

г«; O

N"

ON

vo"

о о co^ r^

es о

CO

C

O

•sf

•sl-

00

¿8

=

s

& с

а

с о

с«

У 1?

у Ы

^ ел

in

vo VO

vo oq_ •чт"

CS Г-"

8 ON

ON

8 in

es" oo es"

о CS vo" CO

C3

4> s»

та _

а

и

2 H

У

b

Й IM

i

•si-

es" »n in

•sf

i—<

со

•s

í;

со" 1—

I

es

es" oo es

ON oo" •si"

8 es es

8 ON

•sí-8

^1-es"

•s

í;

»n vo, O

N

•sl-

со со es"

8 со, in

1-4

vO„

es"

8 о •sl-in

4>

и

s "•а

с

и

ы

э о

-а

8 о 'S, Ё

ш

8 •ta

8. о

•*г

о" in

in_ •s

f

8 in

»n

с в CS

Pu

s E

3 C

O

CO

со

с -1—

(

СО

X

I

S

.5 о

тз с

оо O

N "ST

оо со оо •si"

"

со

5 с

112

Appendix XII

Annex 7. Comparison of College expenditures and tuition revenues per college students for 1994

College

Science

Arts

Economics

Engineering

Education & Fine Arts

Religions

Physical Education

Total

Total cost

Direct

2,615,300

2,337,400

979,400

1,027,300

1,012,800

382,900

341,900

8,697,000

Indirect

1,540,500

2,213,000

1,603,100

406,600

1,165,100

633,400

258,200

7,819,900

Total

4,155,800

4,550,400

2,582,500

1,433,900

2,177,900

1,016,300

600,100

16,516,900

Revenues

1,184,500

1,446,300

1,049,800

450,000

762,000

415,100

167,100

5,474,800

% of tuition coverage of direct

expenses

45

62

107

44

75

108

49

63

% of tuition coverage of

total expenses

29

38

41

32

35

41

28

33

113

Appendix XIII Financial management in higher education

for eastern Mediterranean countries

by Dr M o h a m m a d Sarsour Birzeit University

I. Introduction

Universities in the Occupied Territories

The population of the West Bank and Gaza is approximately 2.2 million. There are eight universities, which vary in size and specialty in the West B a n k and Gaza.

Six universities are located in the West Bank Cities of:

Birzeit City of Birzeit Bethlehem City of Bethlehem Hebron City of Hebron Jerusalem City of Jerusalem and branches in four different locations El-Najah City of Nablus El-Quads City of Jerusalem with branches in different cities

A s for the universities in Gaza, there are two universities both located in Gaza City:

Islamic University Al Azhar University

Students

There are 29,508 students in all the universities of the Occupied Territories. Male students number 16,611 (56.3 per cent), and female, 12,897 (43.6 per cent).

Students in Palestinian universities are mostly enrolled in education, arts, commerce, science, and engineering. There are 7,660 students attending education colleges, 5,484 students attending arts colleges, 4,519 attending commerce, 4,724 science and 1,541 attending engineering colleges. This represents 76 per cent of the total number of students in all universities. The other 24 per cent are divided a m o n g other colleges such as law, religion, nursing, etc.

Employment

Palestinian universities employ a total of 1,274 full-time faculty members , of which 1,105 are male and 169 female, and a total of 3,000 full-time employees in administrative and other service-related jobs, of which 2,366 are male and the rest are female.

115

Appendices

Graduates in Palestinian universities

For the academic year 1993-94, there were 1,837 students w h o graduated that year, in which 991 were male and 846 female.

Libraries in Palestinian universities

There are 483,807 books, articles and other sources of information, such as video-slides and microfilms, in Palestinian universities.

II. Birzeit University

1. Background

Birzeit University is an independent Palestinian institution of higher learning located in Birzeit, a small town about 26 kilometres north of Jerusalem in the West Bank. It was founded in 1924, as a small school providing much-needed educational opportunities for the boys and girls of Birzeit and the neighbouring villages. B y 1961, the school had developed into Birzeit College, granting an associate in arts and an associate in science degrees. After the war in June 1967, and the military occupation of the West Bank and the Gaza strip, the college saw the pressing need for establishing an Arab university in the area and announced, in 1972, the development of a four-year programme leading to Bachelor's degrees in both arts and science. In 1975, the name of the college was officially changed to Birzeit University.

Birzeit University is governed by an autonomous board of trustees composed of educators and professionals from the Palestinian community, and is a m e m b e r of the Association of Arab Universities.

At present it consists of four faculties, the Faculty of Arts, the Faculty of Commerce and Economics, the Faculty of Science and the Faculty of Engineering, all of which grant Bachelor's degrees. In 1995, Birzeit also offered its first post-graduate programmes, in international relations and education, awarding M . A . degrees.

During the past decade, enrolment has increased from a few hundred to 3,000 students. The student body comes from all regions of the West Bank and the Gaza Strip. A n e w Campus , opened in 1980, accommodates the increasing needs of the University.

Birzeit University is guided by the principles of academic freedom and upholds independence of thought, promoting academic excellence and a co-operative spirit. It strives to prepare young m e n and w o m e n of the country for responsible and useful leadership and citizenship in the community and has continued to do so in extraordinary circumstances.

Since the military occupation of the West Bank and Gaza in 1967, by Israel, the University has been subjected to frequent harassment and acts of violation of international conventions and human rights. These have included the shooting and killing of students, administrative detention and the deportation of students and staff, restrictions on receiving books and periodicals, and frequent military-ordered closures. The longest period of closure started shortly after the beginning of the Palestinian uprising (Intifada) in December 1987,

116

Appendices

w h e n the University was closed by military order without any explanation, for more than four years.

The University challenged this prolonged closure, which threatened the very survival of the University as such, by operating according to make-shift arrangements and holding classes in student and faculty homes and renting premises outside the University campus. Although this could never replace formal classes on the campus, where the library, laboratories and other facilities are available, the University has clung to its academic standards and has graduated students, albeit with a lot of effort and at great cost.

Following its re-opening in M a y 1992, Birzeit University continued to function as Palestine's premier university for higher learning, opening n e w research units such as the law centre, w o m e n ' s studies unit, and Mediterranean studies programme. These joined with the existing Institute for Palestinian Archaeology, the centre for the study and documentation of Palestinian society, centre for environmental and occupational health science, continuing education department, community health unit, and engineering centre for planning and design, in carrying out some of the most distinguished research in the region.

2. Academic information

(a) Admission requirements

The General Secondary Education Certificate is the basic requirement for admission. Applicants must also sit for a set of examinations consisting of ability and aptitude tests as well as an English proficiency examination.

(b) Academic programme

Major fields in the Faculty of Arts are: Arabic language and literature, English language and literature, history, society and anthropology. Archaeology is offered as a double major with history, anthropology or sociology. The Department of Education and Psychology offers a teaching certificate, which qualifies teachers at the high-school level. A diploma in translation is offered by the Department of Languages and Translation.

Major fields in the Faculty of Science are: biology, chemistry, mathematics and physics. Combined majors are: the teaching of biology, chemistry, physics and mathematics.

The Faculty of C o m m e r c e and Economics offers majors in accounting, business administration and economics.

The Faculty of Engineering offers majors in civil engineering, electrical engineering, mechanical engineering and architecture.

Elective and required courses are given in several other fields: anthropology, biochemistry, computer science, culture studies, education, French, general science, geography, G e r m a n , Hebrew, history, journalism, library science, music, philosophy, physical education, political science, psychology, and social work.

117

Appendices

(c) Degree requirement

The requirements for a bachelor's degree are a m i n i m u m of 120 credit hours for arts and for commerce and economics, 128 for science, and 170 for engineering.

1. University requirements: All undergraduate students in the University are required to take a total of 21 credit hours in this category. Courses include Arabic, English, library, science, physical education and a sequence of four courses in cultural studies.

2. Faculty requirements: These are courses that are required of all students in a faculty and generally consist of introductory courses in the basic disciplines and total 20-30 per cent of all requirements, depending on the faculty.

3. Department requirements: These are introductory and advanced courses in the area of specialization and in other closely-related areas. These amount to 35-55 per cent of the total credit hour requirements.

4. Electives: In addition to the above requirements, students m a y choose courses outside their area of specialization.

5. Community work requirement: A s part of graduation requirements, all students have to complete a m i n i m u m of 120 hours of community work.

(d) International studies

The Palestine and Arabic Studies (PAS) programme is an academic programme at Birzeit University, that offers international students the opportunity to combine the study of the Arabic language with Arab culture, society and politics, including that of Palestine. International students carry on their studies while experiencing at first hand the political, social realities of the area.

Drawing upon its inventory or reputable language and social science professors, Birzeit University has produced a comprehensive study programme offering accredited courses of academic quality, together with series of special lectures and field trips. The year-round programme can be attended for either one or two semesters. The P A S programme is open to university students and graduates from around the world, and to those working in a field related to the Middle-East, w h o wish to gain an in-depth knowledge of the region, its language, and cultures.

The P A S programme comprises the Arabic language and social science courses from which students m a y select a m a x i m u m of four each semester. The Arabic courses include four levels of modern standard Arabic and three of colloquial Arabic (Palestinian dialect).

The Arabic courses are designed to teach the language as an integral part of the culture, while the social sciences courses, taught in English, provide analyses of Arab and Palestinian issues in the disciplines of politics, sociology, literature, and history. International students proficient in Arabic m a y , with permission, take social science courses taught in Arabic and offered within the University's regular programme. Contact P A S for further details.

118

Appendices

Birzeit University aims at integrating international students into its regular student body. T o facilitate integration and to overcome cultural differences, P A S participants are required to participate in an orientation programme and students have access to advisers and counsellors in the University's Student Services Unit.

III. Community development programmes

1. Community Health Department

Established in 1981, the Community Health Department works to improve the structure and quality of health services to Palestinians. It provides teachers, training and consultation and performs research feasibility studies and evaluations of health services in the Occupied Territory. Since its inception, the department has developed four major areas of expertise: general survey research, maternal and child health, water and sanitation, and health education. It also assists in formulating policies and plans for primary health care provision in Palestine. While the Department's focus is primary health care, its staff continues to be actively engaged in researching, monitoring and evaluating health care developments in Palestine.

2. Environmental and Occupational Health Science Centre

Established in 1983, the Environmental and Occupational Health Science Centre monitors organic and inorganic pollutants in farm produce and water. It monitors quality control of pharmaceutical and food products manufactured and marketed in the West Bank and Gaza, carries out studies and research in areas related to environmental and occupational health, and recommends work-safety regulations coupled with educational programmes.

The centre has concluded a number of agreements with local firms to perform quality-control studies and monitoring programmes as part of its technology in the service of society programme.

3. Literacy and adult education programme

Established in 1976, the literacy and adult education programme holds regular training sessions for teachers and develops educational materials and educational techniques for the literacy programme in the West Bank and Gaza Strip. It also provides agricultural extension and family life development education and conducts social and educational studies related to the general problem of literacy.

4 . Continuing Education Department

Established in 1991, the Continuing Education Department emphasizes training and extends the managerial, technical and service skills of Palestinians. The department conducts courses and workshops in the field of computers and computerization, management, education, language training and specialized industrial skills for local industry.

119

Appendices

5. Engineering Centre for Planning and Design

Established in 1991, and attached to the Faculty of Engineering, the Engineering Centre for Planning and Design oversees the execution of development projects and provides technical advice about regulations and standards to public and private institutions. It also provides Palestinians with technical supervision for construction work to meet standard specifications.

IV. Structure for financial management

All universities in the Occupied Territories are currently, and have been, receiving funds.

The E E C , for the last two years, was the main source of funding for almost 60 per cent of all universities' budgets. This fund is received by the Higher Education Council ( Н Е С ) and distributed based on a formula established and agreed on by all universities.

For the past two years, the Higher Education Council, representing the Palestinian universities, negotiated an agreement with the E E C to fund higher education in Palestine, to the amount of $15 million. This type of funding to our knowledge will cease at the end of 1995.

Birzeit University, as is the case with all other universities, receives its share of this fund, which constitutes approximately 60 per cent of the university budget.

In addition to E E C funds, the University depends on students' fees and registration for about 20 per cent of its budget. This leaves 10 per cent of the budget, for which the University counts on special programmes and services at the University for some of it, and funding through special and private organizations and individuals for the other part.

Salaries and other related items constitute a large share (about 65 per cent to 70 per cent) of the total University expenses.

V . Responsibilities for financial m a n a g e m e n t

Functions within the University

1. According to the University rules and regulations, the President of the University submits by 1 June, of every year, to the board of trustees, a recommended budget for its approval. Once it is approved, the Vice-President for administration and finance exercises control of expenditures.

2 . The Finance Office, within the Administration and Finance Department, manages the cash reserve and acts accordingly.

3. The Finance Office is responsible for generating the necessary statistical and financial reports.

120

Appendices

4 . The Vice-President for administration and finance offices is responsible for the accuracy and control over the allocation of funds within the departments.

5. The Vice-President for administration and finance, with the President of the University's approval, encourages the departments and the different services at the University to generate income.

VI. Problems of establishing efficient financial management

O n e of the most difficult problems facing Birzeit University and other universities in Palestine, is funding. Since 60 to 70 per cent of funds are dependent on international assistance, based on whatever agreement or understanding has been made for the year, University planning will be very limited to a year-by-year basis.

Student registration and fees constitute 20 per cent of the total budget. It is, therefore, very difficult to raise the fees, due to the economic problems in Palestine.

A lack of well-designed financial systems increases the problem of compiling financial and statistical reports to help management in decision-making and planning.

VII. Recent innovation

The University is currently in the process of testing a major student registration system, using such up-to-date technology as O R A C L E for datebase and designing a financial system using the same software, in order to enhance its ability as a management tool to receive statistical information to help in University planning, and at the same time to provide the University with auditing and accurate information.

121

Appendix XIV

T h e H e b r e w University of Jerusalem

A research university in Israel

by D r Shabtay Dover

Director, Research and Development Authority

The Hebrew University of Jerusalem (HUJ) was opened on 1 April 1925, on Mount Scopus (the laying of the cornerstone had taken place in 1918). From the outset, its teaching was based on research, since its founders came from Central Europe - mainly Germany - and brought with them the von-Humboldt concept that academic education and research should be carried out under one roof.

The University's first three research institutes were in microbiology, chemistry and Jewish studies, with a total of 33 faculty members and 141 students. A teaching programme was inaugurated soon after. In 1931, the University awarded its first degrees, the Master of Arts, to 13 graduate students, to be followed by the awarding of P h . D and B . A . degrees.

B y 1947, the University had grown to the stature of a large, well-established research and teaching institution. It comprised faculties or other units in the humanities, science, medicine, education and agriculture (the last at a campus in Rehovot); the Jewish National and University Library; a University press; and an adult education centre. Student enrolment exceeded 1,000 and there were some 200 faculty members.

The W a r of Independence left the University cut off from its main campus on Mount Scopus. The University was forced to seek other quarters, and its various components were scattered in buildings throughout Jerusalem. In 1953, construction began on a new main campus at Givat R a m in the heart of Jerusalem. A few years later, work began, in cooperation with the Hadassah Medical Organization, on a medical science campus in Ein Kerem in South-West Jerusalem. B y the beginning of 1967, the number of schools and other units had been greatly increased, and student enrolment exceeded 12,500 divided among the two campuses in Jerusalem and in Rehovot.

With the reunification of Jerusalem in 1967, the University's long exile from Mount Scopus ended. W o r k began immediately on restoring and expanding the original campus, and a School for Overseas Students was opened there in 1971. In 1981, the construction was completed, and Mount Scopus again became the main campus of the Hebrew University.

Today, the Hebrew University comprises, on its four campuses, seven faculties (science, medicine, dental medicine, agriculture, humanities, social sciences and law); 17 schools, including applied science and technology, education, pharmacy, public health and business administration; 16 specialized research institutes; and some 60 research centres within the various faculties. The H U J academic profile is summarized in Table 1. A s can be seen from Table 2, all academic disciplines are covered except engineering.

122

Appendices

T h e H U J has the largest academic faculty of any university in Israel (Figure 2) and is second in the number of its students, following Tel-Aviv University (Table 2). The H U J leads again in the number of P h . D candidates (Table 3). The correlation between sponsored research and the number of students per faculty m e m b e r and the correlation between the number of graduate students and the total number of students at all the seven universities in Israel are shown in Figures 3 and 4. It can be seen that the H U J is second only to the W e i z m a n n Institute of Science, which is almost entirely a research institution, and that there is a high linkage between research education and the number of sponsored research projects carried out by university academic staff.

S o m e years ago, the H U J established a special unit, the Authority for Research and Development ( A R D ) , to handle the complex task of helping its faculty to identify appropriate funding sources, to submit suitably prepared proposals on time and to administer research grants according to the stipulations of the granting source (Figure 5). The A R D is quite successful in obtaining research funds from all over the world (Figures 6, 7 and 8). Unfortunately, the share of industry in funding research at the H U J is still limited to 8.3 per cent of the total, as can be seen in Figure 9.

The research performance of the H U J in some priority areas (Figures 10 and 11) is shown in Table 4. O n e of the most important criteria for the assessment of scientific activity is the number of grant proposal submissions by each individual faculty m e m b e r and each department. The submissions by faculty and its breakdown is shown in Figures 12 and 13. These figures taken in conjunction with the number of research grants awarded in a faculty (Figure 14) show the success rate in the competition for extramural research funding. A s shown in Table 5, the success rate of the H U J is quite remarkable.

The H U J allocates its internal budgets according to the total number of students enrolled in each department, the rate of proposal submission, the success rate in obtaining research contracts and the number of research students, as shown in Table 6.

The requirement of the H U J from its individual faculty members is high performance in teaching and in research. Important tools for the measurement of teaching performance are the annual Student Satisfactory Survey' and the number of students graduating. The measurement of research performance is calculated according to the faculty member's annual output of papers in high-level international journals.

T o s u m up: the H U J , with its four active campuses and nearly 23,000 students, is looking forward to the twenty-first century with full confidence that it will retain and enhance its status as one of the world's leading research universities.

123

Appendices

Fast facts about the Hebrew University

Founded: 1918.

Opened: 1925.

Campuses: Mount Scopus, Givat R a m , Ein Kerem (all in Jerusalem) and Rehovot.

Academic staff: 1,400 senior faculty members.

Students: Nearly 23,000 full-time students, of w h o m one-third are graduate students and about 1,500 overseas students. A n additional 14,000 students are in continuing education and extension courses.

Degrees granted: Over 90,000.

Faculties: Humanities, social sciences, science, agriculture, medicine, dental medicine and L a w .

Schools: School of Education; Jerusalem School of Business Administration sponsored by the Israel Discount Bank; Paul Baerwald School of Social Work ; Fredy and Nadine Herrmann Graduate School of Applied Science; School of Nutritional Sciences; Koret School of Veterinary Medicine; Hebrew University-Hadassah Medical School; Henrietta Szold-Hadassah-Hebrew University School of Nursing; Hadassah-Hebrew University School of Occupational Therapy; School of Pharmacy; Braun Hebrew University-Hadassah School of Public Health and Community Medicine; Hebrew University-Hadassah School of Dental Medicine founded by the Alpha O m e g a Fraternity; School of Library Science, Archive and Information Studies; Rothberg School for Overseas Students.

Other units: Jewish National and University Library; Joseph Saltiel Centre for Pre-academic Studies; Martin В über Centre for Continuing Education; Harry S. Truman Research Institute for the Advancement of Peace; Institute for Advanced Studies; Cosell Centre for Physical Education, Leisure and Health Promotion; Authority for Research and Development; Yissum Research Development Corporation; Magnes Press; Jerusalem and University Botanical Garden (Givat R a m ) ; Montague Lamport Botanical Garden (Mount Scopus).

Research: Over 2,500 projects, close to 40 per cent of all civilian research conducted in Israel.

124

Appendices

Table 1. N u m b e r of students in Israeli universities 1993/94

Total

Hebrew University

Technion

Tel-Aviv University

Bar-Ilan University

B G University Negev

Haifa University

Weizmann Institute

Total

84,990

19,130

10,470

23,440

13,320

8,220

9,760

740

B A / B S c

58,630

11,770

7,590

15,420

9,890

6,390

7,570

-

M A / M S c

20,330

5,440

2,200

6,700

2,550

1,400

1,810

230

PhD

4,930

1,720

640

1,070

560

310

120

510

Diploma

1,100

200

40

250

320

120

170

-

Percentages

Total

Hebrew University

Technion

Tel-Aviv University

Bar-Ilan University

Haifa University

B G University Negev

Weizmann Institute

100

22.5

12.3

27.6

15.7

11.4

9.7

0.9

100

20.1

12.9

26.3

16.9

12.9

10.9

-

100

26.8

10.8

33.0

12.5

8.8

6.9

1.1

100

34.9

13.0

21.7

11.4

2.4

6.3

10.3

100

18.2

3.6

22.7

29.1

15.5

10.9

-

Table 2. Degrees awarded at Israeli universities 1993/1994

Degree

Total

B A / B S c

M A / M S c

PhD

Diploma

Total

15,573

11,144

3,153

556

720

HUJ

3,827

2,615

900

158

154

Technion

1,892

1,335

413

111

33

Tel-Aviv

4,346

3,123

953

127

143

Bar-Han

2,140

1,599

331

44

166

Haifa

1,731

1,334

235

12

150

B . G . Negev

1,479

1,138

248

19

74

Weizmann

158

-

73

85

-

Percentages

Total

BA/Bsc

M A / M S c

PhD

Diploma

100.0

100.0

100.0

100.0

100.0

24.6

23.5

28.5

28.4

21.4

12.1

12.0

13.1

200

4.6

27.9

28.0

30.2

22.8

19.9

13.7

14.3

10.5

7.9

23.1

11.1

12.0

7.5

2.2

20.8

9.5

10.2

7.9

3.4

10.3

1.0

-

2.3

15.3

-

Appendices

Table 3. Scientific and scholarly publications of faculty m e m b e r s of Israeli universities 1992

Scientific area

Humanities

Education

Social sciences

Medicine

Math, and computer science

Exact sciences

Life sciences

Engineering

Total

409

211

543

928

191

784

664

358

HUJ

148

31

158

304

35

183

193

-

Technion

1

11

-

138

52

137

14

210

Tel-Aviv

116

38

152

370

51

160

114

70

Ваг-Пап

63

40

114

-

7

55

42

-

Haifa

54

67

77

-

10

-

9

-

B G U Negev

28

14

42

116

8

73

34

78

Weizmann

-

10

-

-

29

176

258

-

Percentages

Humanities

Education

Social sciences

Medicine

Math, and computer science

Exact sciences

Life sciences

Engineering

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.00

36.1

14.6

29.0

32.7

18.4

23.3

29.0

-

0.2

5.4

-

14.9

27.3

17.5

2.2

58.6

28.4

17.9

28.0

39.9

26.4

20.4

17.2

19.7

15.3

18.9

21.0

-

3.4

7.0

6.3

-

13.2

31.9

14.3

-

5.1

-

1.4

-

6.8

6.6

7.7

12.5

4.4

9.3

5.1

21.7

-

4.7

-

-

14.9

22.4

38.8

-

126

Appendices

Table 4. P h . D and M A / M S c . students at The Hebrew University of Jerusalem 1993-1995

Faculty

Humanities, including education

Social sciences

Law

Social work

Library sciences

Total

Science

Medicine M . D .

Medical science

Dentistry

Pharmacy

Occupational therapy

Agriculture

Veterinary science

Total

Grand total

M A / M S c . students

1993

1,860

1,438

239

275

95

3,907

698

262

261

127

63

58

451

101

2,021

5,928

1994

1,612

1,343

207

232

86

3,480

635

265

315

135

63

-

419

83

1,915

5,395

1995

1,459

1,365

170

221

81

3,296

651

255

292

142

50

-

392

82

1,864

5,160

Ph .D students

1993

578

166

41

23

1

809

615

-

211

22

52

-

246

-

1,146

1,955

1994

547

158

32

21

1

759

628

-

232

24

53

-

244

-

1,181

1,940

1995

537

156

32

18

2

745

630

-

222

25

47

-

235

-

1,159

1,904

127

П Е Р publications and documents

More than 750 titles on all aspects of educational planning have been published by the International Institute for Educational Planning. A comprehensive catalogue, giving details of their availability, includes research reports, case studies, seminar documents, training materials, occasional papers and reference books in the following subject categories:

Economics of education, costs and financing.

Manpower and employment.

Demographic studies.

The location of schools (school map) and sub-national planning.

Administration and management.

Curriculum development and evaluation.

Educational technology.

Primary, secondary and higher education.

Vocational and technical education.

Non-formal, out-of-school, adult and rural education.

Copies of the catalogue m a y be obtained from the IIEP Publications Unit on request.

T h e International Institute for Educational Planning

The International Institute for Educational Planning (IIEP) is an international centre for advanced training and research in the field of educational planning. It was established by U N E S C O in 1963 and is financed by U N E S C O and by voluntary contributions from M e m b e r States. In recent years the following M e m b e r States have provided voluntary contributions to the Institute: Belgium, Canada, Denmark, Finland, Iceland, India, Ireland, Norway, Sweden, Switzerland and Venezuela.

The Institute's aim is to contribute to the development of education throughout the world, by expanding both knowledge and the supply of competent professionals in the field of educational planning. In this endeavour the Institute co-operates with interested training and research organizations in M e m b e r States. The Governing Board of the IIEP, which approves the Institute's programme and budget, consists of a m a x i m u m of eight elected members and four members designated by the United Nations Organization and certain of its specialized agencies and institutes.

Chairman: Lennart Wohlgemuth (Sweden), Director, Nordic Institute of African Studies, Uppsala.

Designated Members: K. Y. Amoako, Director, Education and Social Policy Department, The World Bank. Harka Gurung, Director, Asian and Pacific Development Centre ( A P D C ) , Kuala Lumpur. Cristian Ossa, Director, Macroeconomic and Social Policy, Analysis Division, Department

of Economic and Social Information and Policy Analysis, United Nations. Tito Egargo Contado, Chief, Agricultural Education and Extension Group, H u m a n Resources,

Institutions and Agrarian Reform Division, Food and Agriculture Organization (FAO) .

Elected Members: Isao Amagi (Japan), Special Adviser to the Minister of Education, Science and Culture,

Tokyo. Mohamed Dowidar (Egypt), Professor and President of the Department of Economics, Faculty

of L a w , University of Alexandria, Alexandria. Kabiru Kinyanjui (Kenya), Senior Programme Officer, Social Sciences Division, International

Development Research Centre (IDRC), Nairobi. Tamas Kozma (Hungary), Director-General, Hungarian Institute for Educational Research,

Budapest. Yolanda M . Rojas (Costa Rica), Academic Vice-Rector, University of Costa Rica, San José. Michel Ver nier es (France), Professor of Economic Sciences, University of Paris I, Panthéon-

Sorbonne, Paris.

Inquiries about the Institute should be addressed to: The Office of the Director, International Institute for Educational Planning, 7-9 rue Eugène-Delacroix, 75116 Paris, France.

financial management in higher education...

Documents