BT06 Course-Related Fees Approval

CONTENTS:

• Purpose
• Scope
• University Course-Related Fees and Specific Charges
• Guidelines for Consideration of New University Student-Course Related Fees and Specific Charges
• Guidelines for Consideration of Change In Existing Student-Course Related Fees or Specific Charges
• Approval Process
• Further Information
• Revision History
  • Most Recent Changes
  • Revision History

PURPOSE:

This describes The Pennsylvania State University’s (University) policy pertaining to the approval and application of general fund student course-related fees, and to proposals for new, or changes to existing, student fees and specific charges, including Study Abroad embedded course and travel fees.

SCOPE

The University’s budget policies are applicable throughout the University, including all direct and indirect subsidiaries, and are required to be followed by all University employees who engage in financial, accounting, purchasing or other transactions, including University employees who in the course of their assigned duties engage in such transactions on behalf of third parties such as the Penn State Alumni Association or other related entities. The University’s budget policies are not applicable to Penn State Health or its subsidiaries, or to Penn College of Technology, each of which has its own budget policies.

UNIVERSITY STUDENT COURSE-RELATED FEES AND SPECIFIC CHARGES:

New or modified student course-related fees and specific charges will be considered only when the level of service required exceeds that which can be reasonably committed by the University and expected by the student..

This policy applies to proposals for new, or changes to existing, general fund student course-related fees and charges, including Study Abroad embedded course and travel fees. Upon approval, new or modified fees and charges will become effective on July 1 each year as a part of the regular general funds budget.

Changes for fees and specific charges ordinarily will not be considered after the budget for the year becomes operative each July 1. In emergency situations, however, proposals for changes during the interim periods may be presented through channels to the Office of Budget and Finance for review and disposition on an exception basis.

GUIDELINES FOR CONSIDERATION OF NEW UNIVERSITY STUDENT-COURSE RELATED FEES AND SPECIFIC CHARGES:

A new student course-related fee or specific charge will be considered upon recommendation of the budget executive responsible for the unit proposing the fee. Fee proposals and specific charges will be considered for approval by the Associate Vice President for Budget and Finance.

Review of proposed new fees and specific charges will be based at all levels on the following considerations:

1. The fee or charge must be reasonable and equitable, and must not be an obstacle to those students who have need for access to the service;
2. Fees and charges for services beyond basic levels must be posted, or otherwise be made known, to prospective users;
3. The proposed fees and charges should not be presented as a means of increasing departmental income.

New student fees, charges, or changes to existing fees in auxiliary enterprises or other restricted funds supported activities, will be submitted through established channels for review and approval of the Executive Vice President and Provost or appropriate Senior Vice President, or designee. Such proposals should be made as a part of annual budget submissions for such activities.

Charges for attendance at cultural, entertainment, or athletic events are not considered to be student fees or charges in the above context and are governed by other policies.

GUIDELINES FOR CONSIDERATION OF CHANGE IN EXISTING STUDENT COURSE-RELATED FEES OR SPECIFIC CHARGES:

A change to an existing student course-related fee or charge will be considered upon the recommendation of the budget executive responsible for the unit involved. Changes for fees and specific charges will be considered for approval by the Associate Vice President for Budget and Finance.

The review and approval for changes to course-related fees or specific charges will be based upon the following considerations and/or requirements:

1. It must be shown that the service provided by the fee or charge cannot continue without a change. This should be illustrated via the submission of a financial analysis along with a narrative statement.
2. The consequences of eliminating the student service should be indicated in the event the fee or charge is not approved and the service must be discontinued.
3. The change to the fee or charge must not increase the price so as to be an obstacle to those students requiring the service.
4. Changes to fees and charges must be posted, or otherwise be made known to the users.
5. Changes to fees and charges should not be presented as a means of increasing departmental income.

APPROVAL PROCESS:

The unit requesting approval must complete the form Course-Related Fees Approval and submit through established approval workflow, attaching all prepared supporting documentation.

FURTHER INFORMATION:

For questions or additional details, please contact the Office of Budget and Finance.

To request changes to this policy, please contact the Office of Systems & Procedures by submitting a GURU Technical Service Request form.

Revision History:

Most Recent Changes:

• May 23, 2023 - complete review and update:
  • Updated Purpose section to include the full name of the University.
  • Addition of the Scope section
  • Changed the Policy Steward from the University Budget Officer to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
  • Changed the Further Information contact from the University Budget Officer to the Office of Budget and Finance

Revision History (and effective dates, where known):

• February 1, 2023 - Editorial changes:
  • Added Budget Director as Subject Matter Expert (SME)
  • Changed the Policy Steward from the University Budget Officer to the Associate Vice President for Budget and Finance, per the directive of the Senior Vice President for Finance and Business
  • Changed the Further Information contact from the University Budget Officer to the Office of Budget and Finance.
• March 5, 2014 - Changes made in PURPOSE and UNIVERSITY STUDENT COURSE-RELATED FEES AND SPECIFIC CHARGES sections to reflect that the policy now also covers Study Abroad embedded course and travel fees. Also, verbiage and links updated in the APPROVAL PROCESS section to reflect the creation of the new Submission of Proposal for New or Existing Student Course-Related Fees Form, created to handle requests for new, or changes to existing, fees and charges.
• October 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
• December 15, 2011 - Revisions made to GUIDELINES FOR CONSIDERATION OF NEW UNIVERSITY STUDENT-COURSE RELATED FEES AND SPECIFIC CHARGES and GUIDELINES FOR CONSIDERATION OF CHANGE IN EXISTING STUDENT COURSE-RELATED FEES OR SPECIFIC CHARGES sections, to reflect current processing (new fees no longer considered at annual planning and budget hearing; proposals now considered for approval by University Budget Officer). An APPROVAL PROCESS section was added, providing guidance on how areas must request approval for new or existing fees.
• August 23, 2000:
  • Sections BREAKAGE and SUPPLIES AND EQUIPMENT removed.
  • Under section UNIVERSITY STUDENT COURSE-RELATED FEES AND SPECIFIC CHARGES, removed the sentence "Such fees and charges will be considered for the purpose of increasing departmental income."
  • Under the section GUIDELINES FOR CONSIDERATION OF NEW UNIVERSITY STUDENT-COURSE RELATED FEES AND SPECIFIC CHARGES, removed the sentence "The justification for a new fee or charge should be presented in the unit's submission of its annual budget recommendations to the Office of Budget and Resource Analysis."
  • Under the section GUIDELINES FOR CONSIDERATION OF CHANGE IN EXISTING STUDENT COURSE-RELATED FEES OR SPECIFIC CHARGES, removed the sentence "The justification to change the fee or specific charge should be presented in the units' submission of its annual budget recommendations to the Office of Budget and Resource Analysis."
  • "Office of Budget and Resource Analysis" changed to "University Budget Office.")
• October, 1981- New Policy, University Student Fees.