663  Education Abroad Financial Procedures

Approved by President
Effective Date: June 5, 2017
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer:  Associate Vice President, Business and Finance

I. Purpose

Middle Tennessee State University (MTSU or University) establishes this policy of budgeting and accounting procedures for education abroad programs.

II. Scope

This policy is not applicable to third party programs.

III. Definitions

A.  Education Abroad Programs. Short-term programs led by MTSU faculty member(s) who teach MTSU courses specifically designed for an overseas location.

B.  Faculty Leader. The MTSU employee approved to provide instruction for the education abroad course and leads the education abroad course.

C.  Course Fees. Include tuition and mandatory fees related to the student’s actual registration for the education abroad course.

D.  Education Abroad Travel Fee Revenue. Fees paid by the student to cover specific travel expenses which include, but are not limited to, transportation, lodging, meals, event fees, student supplies, exchange rate variances, and may include the faculty leader’s travel expenses.

IV. Budgeting

A.  The University expects each education abroad program to be financially self-sustaining over time and accountable for good financial management practices.

1.  The Office of Education Abroad Program Director must complete a projected budget and submit it to the Vice Provost for International Affairs or designee.

2.  Budgeting for instructional costs paid from the general fund may consider both tuition revenues and state appropriations generated by student enrollments in education abroad programs, consistent with budgeting for other academic programs.

3.  The budgeting process should include the establishment of a contingency fund, appropriate to the size and scale of the University’s programs, to ensure that the University can meet reasonable contingencies that may arise during the operation of the program. The recommended  budget amount for this fund should be between five percent (5%) and twenty percent (20%) of the annual education abroad travel fees.

B.  Faculty leaders should base the budgeting process on a reasonable projection of operating costs in the host country, including consideration of projected currency exchange rates.

1.  In the program budget, the faculty leader should clearly identify which expenses are associated with course fees and note which expenses are associated with student-specific travel, which is collected as education abroad travel fee revenue.

2.  The program budget should specify if the expense is for the employees or students.

3.  The faculty leader should only use education abroad travel fee revenue for student expenses, which may include the faculty leader’s travel.

V. Registration and Fee Payment