A Cost Analysis of Degree Programs for Aklan State University For the Asian Development Bank De La Salle University Research Team DR ANDREA SANTIAGO * MS. MITZIE PONCE * MS SHERRYL UY April 2003 1 EXECUTIVE SUMMARY The cost analysis was conducted for Aklan State University using data presented by the SUC. The financial, student and faculty information was for the calendar year 2001 while the course data provided was for the SY 2000-2001 and in other occasions one semester for a term in 2002-2003. In brief, the highlights of the cost analysis reveal the following: Enrollment 7,8881 Enrollment (net of Basic Education) 5,654 Graduates 2,010 No. of Teaching Faculty 308 Student Per Faculty 18.35 Total Expenditures P142,317,707 Tuition & Miscellaneous Fees 8,040,145 Other Income 9,354,745 Average Expenditures per Student P25,1712 Based on the computations made, the following are the indicative figures: Total number of sections offered for higher education 1,8773 Total number of sections offered for advanced education 86 Average class size for undergraduate subjects 39.78 Average class size for graduate subjects 14.17 Average unit cost per student for undergraduate subjects 362.81 Average unit cost per student for graduate subjects 423.97 Average MOOE per undergraduate student 512.23 Average MOOE per graduate student 368.98 Average indirect cost per student 9,981.67 1 1st term 2000-2001 2 Computed by dividing total university expenditures by total enrollment net of basic education. 3 Ibajay and Kalibo campuses provided data only for 1 term. All other campuses reported for 1 year. Thus the total number of sections and number of students taught is understated. i TABLE OF CONTENTS Executive Summary i University Level 1 Cost Analysis Across Campuses 7 Cost Analysis Per Campus Banga 12 Kalibo 16 New Washington 21 Ibajay 27 Makato 32 Qualifications 35 Appendix A. Brief Description of Methodology 37 Appendix B. Cost Analysis Per Subject for Banga Campus 38 1 COST ANALYSIS OF AKLAN STATE UNIVERSITY Dr. Andrea L. Santiago, Mitzie Ponce, Sherryl Uy This paper is a cost analysis of the financial statements of Aklan State University as part of the ABD Project on Normative Financing. The paper looks into the various cost components to arrive at the closest approximate to a Cost Per Degree Per Student. The Aklan State University (ASU) began as Banga Intermediate School in 1917, converted to the Capiz Farm School in 1918, evolved into the Banga Rural High School in 1928, renamed the Aklan Agricultural College in 1963, converted into the Aklan State College of Agriculture in 1992 and finally converted into the Aklan State University in 2001. Schools that were integrated by virtue of Republic Acts 7722, 8292, 8749 and 9055, the following institutions were integrated into the ASU: Roxas Memorial College of Arts and Trades in Ibajay established in 1957, Aklan National College of Fisheries in New Washington established as a high school in 1948, Northern Panay Teachers College in Makato created in 1966, and Western Aklan Polytechnic College previously known as Ibajay National Agricultural and Industrial School in 1994. Thus, the ASU campuses are spread over 5 locations: Banga, Kalibo, New Washington, Makato, and Ibajay. ASU has a total of 120 hectares spread over the 5 campuses. The main campus of Aklan State University is located in Banga, Aklan. Its 65 buildings and structures are housed in a total land area of 62.52 hectares. The New Washinton Campus, sitting on 13.30 hectares and housing 15 building structures, specializes in fisheries and marine sciences. The other campuses account for the remaining hectares, with Kalibo having the smallest land area. Total allotments from GAA and Fund 164 for 2001 amounted to P131,134,0004. 20% of its budgetary allotment was meant to support operations while the remaining 80% was divided among the five campuses. The main campus had the highest budgetary allocation equivalent to 31.7% of total budget. ASU Percent Allotments of Total General Budget Administration 21,262,000 16.21% Research 816,000 0.62% Extension 727,000 0.55% Regional Graduate Studies 2,485,000 1.90% ASU-Main 41,595,000 31.72% ASU-Kalibo Campus 28,714,000 21.90% ASU-New Washington Campus 20,076,000 15.31% ASU-Ibajay Campus 13,435,000 10.25% ASU-Makato Campus 2,024,000 1.54% Total Budget for Campuses 131,134,000 100.00% 4 Taken from Allotment budget of the Main Campus. 1 The total allotment was distributed among personnel services, MOOE and capital outlay in the following manner: Other GAA Income Total % of Total Personnel Services 104,067,000 3,326,000 107,393,000 81.90% MOOE 16,732,000 3,698,000 20,430,000 15.58% Capital Outlay 2,579,000 732,000 3,311,000 2.52% Total 123,378,000 7,756,000 131,134,000 % of Total 94.09% 5.91% Total actual expenditures for CY 2001 was P142,317,707. The breakdown below shows that a little below 80% was spent for personnel services. Much of the increase in expenditures was for MOOE. GAA Other Income Total % of Total Personnel Services 106,017,832 7,067,000 113,084,832 79.46% MOOE 16,731,000 10,685,875 27,416,875 19.26% Capital Outlay 1,165,000 651,000 1,816,000 1.28% Total 123,913,832 18,403,875 142,317,707 % of Total 87.07% 12.93% The CY 2001 expenditure level was P11.0 million higher than allotment. The difference was financed through other income, with P6.0 million to spare. A breakdown of the other sources of income that helped fund the expenditures of the university follows: Expenditures Income % Contribution Banga Campus 72,823,000 10,533,000 14.46% Kalibo Campus 31,799,000 5,144,000 16.18% New Washington Campus 22,085,707 581,875 2.63% Ibajay Campus 13,585,000 1,080,000 7.95% Makato Campus 2,025,000 56,015 2.77% Total 142,317,707 17,394,890 12.22% The table below shows that the main campus generated 60% of total other income. When compared to its total expenditures, the P10.5 million collection contributed to a 14.46% recovery rate. On the other hand, the Kalibo campus that generated 30% of the income in 2001 had a 16% recovery. The New Washington campus had the lowest contribution at only 2.63% of expenditures and unlike that of Makato campus that can be readily explained, the low level of income for New Washington is puzzling. 2 About 46% of income generated was for tuition fees and miscellaneous expenses. The balance of income generated came from the university cafeteria and the business affairs office. However when compared to total expenditure for these two areas, the income generated was short by P1.3 million. The Banga cafeteria was highly subsidized at P1.05 million. Business Tuition Fees Cafeteria Affairs Others Total Banga Campus 4,535,000 3,641,000 2,357,000 10,533,000 Kalibo Campus 1,992,000 128,000 3,024,000 5,144,000 New Washington Campus 557,130 24,745 581,875 Ibajay Campus 900,000 180,000 1,080,000 Makato Campus 56,015 56,015 8,040,145 3,769,000 5,381,000 204,745 17,394,890 Income Expenditures Income/Loss CAFETERIA Banga 3,641,000 4,694,000 (1,053,000) Kalibo 128,000 75,000 53,000 BUSINESS AFFAIRS Banga 2,357,000 2,300,000 57,000 Kalibo 3,024,000 3,442,000 (418,000) 9,150,000 10,511,000 (1,361,000) The P113.0 million personnel expenditures allocation supported a total of 447 official plantilla positions across the different campuses. 308 of these plantilla positions were teaching staff. The breakdown of plantilla positions per campus follows: Non- Faculty Faculty Total Banga Campus 135 60 195 Kalibo Campus 93 29 122 New Washington Campus 43 33 76 Ibajay Campus 30 17 47 Makato Campus 7 7 Total 308 139 447 3 The different ranks as well as the highest educational attainment of faculty members is summarized per campus and shown in the tables following. Almost 70% of the faculty members were either instructors or teachers. There was a very small 2% who possessed a doctorate degree and even a lesser percentage holding the rank of professor. 54% of the faculty members were only bachelor degree holders. Asso Asst Head Master Prof Prof Prof Instr. Tech Teacher Teacher Total Banga Campus 4 9 59 22 41 135 Kalibo Campus 31 7 55 93 New Washington Campus 21 4 3 15 43 Ibajay Campus 2 8 20 30 Makato Campus 7 7 Total 4 11 67 101 4 10 111 308 Doctoral Masteral Bachelors Total Banga Campus 8 86 31 135 Kalibo Campus 15 78 93 New Washington Campus 3 40 40 Ibajay Campus 1 8 21 30 Makato Campus 7 7 Total 9 112 167 308 2.92% 36.36% 54.22% Total enrollment for first term academic year 2000-2001 was 7,888, while total graduates for the year was 2,010 students. The breakdown of enrollment and graduates per level follows. Enrollment No Graduates TOTAL BASIC EDUCATION 2,234 688 TOTAL TECH/VOCATIONAL 1,500 543 TOTAL UNDERGRADUDATE 3,896 774 TOTAL MASTERS 219 4 TOTAL PHD 39 1 GRAND TOTAL 7,888 2,010 4 In terms of percentage, there were more basic education graduates than there were undergraduates. 688 students graduated from the basic education level and when compared to enrollment for the year, had a 30% graduation rate.