Secondary Education Cost Accountability
All secondary education level schools (such as universities and colleges) with more than 1,000 students, must provide an annual report that shows the schools revenues, expenses and other key figures.
Colleges’ tuition prices have been soaring in the past couple of decades. And I do not believe that the way to fight this problem is to throw more taxpayers’ money at it, as that tends to result in schools just increasing the tuition prices because they know more money is now available. It’s also near impossible to determine why schools tuitions have increased so much, as they do not have to disclose their financial statements.
According to the Department of Education data, administrative positions at colleges and universities have grown by 60 percent between 1993 and 2009, which is 10 times the rate of growth of tenured faculty positions.
These institutions claim that they have to increase costs. Professors aren’t getting paid more. The level of education is not increasing. We need to see where these costs are going. Only then can be hold these institutions responsible when they act irresponsibly.
Every company on the stock market must get an annual audit from a reputable accounting firm. Investors require this because they want to know how the organization is spending their money and exactly how much profit the organization is earning. Investors demanded this because they are investing their money in the organization, so the SEC made it a requirement.
In regards to our colleges and universities, I think the taxpayers have invested too much money in these institutions without being able to see what is really happening behind the scenes. Therefore, a reputable accounting firm must be hired by all secondary education level institutions with over 1,000 students to provide assurance that the financial statements released by the institution is correct, just as it is done on the stock market.
At a minimum, each financial statement must display the following expenses:
Administrative labor costs, Instructor labor costs, 10 highest compensated employees.