Business Procedures Manual

Fiscal Affairs Division

Current Date: Oct 30, 2024

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Section 21.0: Study Abroad Programs

Introduction

Last modified: March 22, 2019

This section details the business procedures for study abroad programs, to ensure sound and consistent financial management of these complex operations. All study abroad programs administered solely by a ÐÔÊÓ½çAPP (USG) institution or in conjunction with a private provider must adhere to all state accounting rules and Board of Regents policies.

The policies included in this section apply to all USG institution led study abroad programs. Programs run in conjunction with private entities or non-USG institutions should adhere to these polices as closely as possible. In addition to the financial aspects of study abroad programs contained in this section, institutions should also consult the USG Study Abroad Handbook for best practices regarding risk management, academic programming and program management located at /international_education/study_abroad/study_abroad_handbook.

21.1 Establishment and Approval

Last modified: February 21, 2019

Every study abroad program established by a ÐÔÊÓ½çAPP (USG) institution must be approved by the president of the institution, or his/her designee, under the authority delegated to the president by the Chancellor.

Inaugural year approval must consider the following factors:

  • financially self-sustaining budget through a combination of educational and general funds and the Study Abroad Program Charge (see section 21.2)
  • reasonable charges assessed to students based on actual program costs
  • avoidance of duplicate programs within the institution and the USG (See USG Study Abroad Directory for programs search)
  • safety of the location
  • student learning outcomes
  • adherence to class contact hour requirements (See BOR Policy Manual section 3.4.4 )

Annually, institutions must conduct a review of all returning study abroad programs. The annual review must include:

  • a review of the budget to ensure that it remains sufficient to cover the proposed activities and that costs remain reasonable for students
  • a review of fund balances to ensure that funds due to students have been refunded and excessive balances have not accrued (see section 21.2 )
  • verification that the Emergency Reserve Fund has been replenished or maintained (see section 21.2 )
  • a safety and security assessment of the program location and activities

Institutions are to develop and document a procedure for approving programs that remain substantially unchanged from year to year. Annual approvals should remain on file and be made available upon request. Substantial changes to programs (including costs, structure and/or location) will require review and approval by the president or his/her designee before continuing.

21.2 Budgeting and Accounting

Last modified: February 21, 2019

Budgeting

The budget for study abroad programs should be based on a reasonable projection of operating costs in the host country, including consideration of projected currency exchange rates. The program budget is designed to help institutions and program faculty plan and set a fair charge for students and to help students plan their finances for the semester. Final program budget information should also be shared with the institution’s Financial Aid office so these costs can be included in determining participants’ cost of attendance for the term they will be abroad.

Study abroad student costs generally consist of two components:

  1. Tuition and mandatory student fees related to course registration (see section 21.3 )
  2. Program Charge

The Program Charge is the amount charged to students, separate from tuition and fees, to pay for the study abroad trip. Each program should consider the following costs in developing its overall budget and an appropriate Program Charge. The list below reflects general categories for the types of costs that may be included in the Program Charge:

  1. Transportation costs such as airfare, transportation to and from the airport on-site, transportation to field experiences, or between program locations
  2. Housing
  3. Meals
  4. Health insurance (BOR negotiates this insurance for all USG programs. See for current policy information)
  5. Costs for classrooms, guest lecturers, tickets for academic and cultural field experiences and similar activities
  6. Visa fees
  7. Costs for providers or on-site guides
  8. Administrative costs such as promotional materials, orientation supplies and related items
  9. Reserve amount to cover unanticipated contingencies/emergencies (See Emergency Reserve Fund section below)
  10. The Program Charge may include costs to cover travel-related expenses for faculty and staff participants (i.e. housing, per diems, transportation, field experiences) however, institutions are encouraged to pay for faculty and staff expenses from state and tuition funds in order to keep student costs low. Payments and/or reimbursements for faculty and staff travel should follow Business Procedures Manual section 4.0. Faculty and staff travel costs must be presented in the inaugural budget approved by the president or his/her designee, and be reviewed and re-approved each year in the annual review. Under no circumstances should personal services (salary and fringe benefits) be included in the Program Charge.

Specific programs may need to include additional items in order to deliver the experiential academic content in their discipline. Some items may not be applicable for all programs, and programs may choose to include or exclude others. If programs do not include critical items (like airfare or meals) in their Program Charge, students must be informed of this exclusion so that they can plan how they will cover these costs separately.

The costs incurred by an institution for staffing and operating a study abroad office must be paid from state funds, tuition, and/or general fees. Faculty and instructional staff salaries must also be paid from state, tuition and general fee fund sources, as should faculty travel to the fullest extent possible. Other direct costs that are specific to study abroad programs may be paid from the study abroad Program Charge.

Program Charges should be assessed in the student information system whenever practical. The payment deadlines and refund schedules for these charges will vary from program to program. Payment due dates and refund dates can be earlier, but should not be later than the due dates and refund dates for students taking campus-based courses. Program Charges are considered elective fees that do not require BOR approval. As such, institutions should follow concepts found in the BOR Policy Manual section 7.3.3.2 and in the Business Procedures Manual section 24.3.2, namely that the fee should be specific in scope and set at the lowest rate possible to cover specific costs in order to maintain affordability. This is achieved by following the budgeting guidelines in this section. The Office of Fiscal Affairs does not require study abroad Program Charges be submitted along with other elective fees during the annual reporting process.

To mitigate currency fluctuations, careful review of markets should be followed during budget creation. Bank accounts in foreign countries may be opened under very limited circumstances and are subject to BOR Policy Manual section 7.5.1 and Business Procedures Manual section 9.1. The purchase of currency exchange futures contracts, which establish a fixed rate of foreign currency exchange for specified U.S. dollar amounts at designated dates, is not allowed.

Required Program Emergency Reserve Fund (Fund 20XXX)

Maintaining a reserve fund allows programs to manage unanticipated costs that may arise between the budget planning phase and actual travel. The Emergency Reserve Fund must be maintained in a restricted account (Fund 20XXX) and must sustain a balance of at least 5% of the total of all study abroad program charge budgets, but no more than 15%. For example, if an institution’s overall budget for 10 programs equals $50,000, the Emergency Reserve Fund must maintain at least $2,500 (5%), but no more than $7,500 (15%). An institution may distinguish separate Emergency Reserve Funds for each program, however, a single fund is recommended for this purpose. Instances where withdrawal from the Emergency Reserve Fund is warranted include, but are not limited to:

  1. Currency fluctuations that raise costs for items that need to be paid in the local currency
  2. Changes to published rates for transportation, such as airfare or local transit
  3. Changes to published transit schedules that may require re-routing for the group
  4. Incidents at the local site that require alterations to the program (such as quarantines, strikes, emergencies not immediately covered by insurance) or extends the time students spend overseas

Emergency Reserve Funds are initially established through additional amounts being added to the program charge fee. The collection of the Emergency Reserve Fund should be spread over a period of no more than 5 years to maintain student affordability. The 5 year period applies to both new programs and for existing programs that withdrew money from the emergency reserve fund for a documented emergency. Once the desired emergency reserve fund amount is collected (between 5% and 15%), collection of the Emergency Reserve Fund should be removed from the program charge fee. If monies are withdrawn from the Emergency Reserve Fund account due to an emergency instance described above, collection of the funds should be included in the program charge fee until the 5% to 15% reserved is replenished through non-mandatory transfers from Fund 14000 to Fund 20000.

Accounting

Financial activity attributable to study abroad programs is recorded in multiple funds:

  1. Tuition for credit hours related to study abroad programs is recorded in Fund 10500
  2. Mandatory fees are recorded in the appropriate funds as outlined in Section 24 of the Business Procedures Manual.
  3. Effective July 1, 2019 the study abroad Program Charge is recorded as a Department Sales and Service (DS&S) fund, which is Fund 14XXX. Program Charge revenue and related expenses are recorded in a DS&S account specific to the responsible program or office. Student-specific expenses must be paid from the DS&S account. Typical student specific costs include travel, lodging, tours, meals, event fees, and student supplies.
  4. Emergency Reserve Fund is recorded in Fund 20XXX.

Supporting documentation that shows revenue, expense and fund balances (14XXX and 20XXX), must be maintained for audit purposes and provided for the required annual institutional budget review. Excess funds realized at the end of a program in Departmental Sales and Services fund must be used first to replenish the required Emergency Reserve Fund, if applicable. Once the Emergency Reserve Fund is replenished, additional excess funds may be encumbered via purchase orders, with acceptable documentation, for payment of future deposits, site visits or other known future costs. Final excess funds remaining (other than nominal amounts) must be refunded to students. When excess funds occur, institutions should review program charge budgets in order to reduce the Program Charge the following year to prevent over collection of funds from students.

21.3 Registration and Fee Payment

Last modified: February 21, 2019

All USG study abroad students pay tuition, applicable mandatory fees, and Program Charges. Per BOR Policy 7.3.4.1, an institution may award a waiver of the out-of-state tuition differential for students participating in a USG study abroad program. Some mandatory fees may be waived in accordance with BOR Policy Manual section 7.4.1.2.

Tuition and fees should be assessed in the student information system at the time of registration. Payment due dates and refund dates for tuition and fees should be no later than those for students taking campus-based courses. In some cases an earlier deadline may be required. Deadlines for payment of the Program Charge may be set by the individual study abroad office.

Study abroad offices, academic departments and program directors should avoid directly receiving payments from students. Collection of deposits, application fees and the Program Charge should be assessed in the student information system. If using the student information system is not possible, payment should be collected via electronic source (e.g. Touchnet, Marketplace) or students should deposit into a designated account at the Bursar’s office.

In many instances, a USG student may remain registered at his/her home institution during the period of international study. Students remain eligible for all appropriate financial aid as long as a program is approved for credit and is part of a degree program. Financial aid awards may be adjusted to reflect the actual cost of attendance for a particular study abroad program, which includes the costs of transportation, living costs, visa fees and health insurance.

21.4 Acquiring Goods and Services Abroad

Last modified: February 21, 2019

To the maximum extent possible, arrangements for goods and services needed while abroad should be paid directly to the vendor from the general fund account and/or the DS&S account established for collection of the Program Charge for the study abroad program. A contract should be created with vendors when arranging goods and services abroad and should be reviewed and approved by the institution as stated in Business Procedures Manual section 3.4.1. Payments should be made in accordance with approved contracts. There are, however, situations in which payment for goods and services abroad must be rendered at the time they are acquired. In these situations, institutions may use several methods to make payments while abroad.

Any of the following (or a combination) can be used for purchases and expenses associated with a study abroad program:

  • Bank account in foreign country (BOR Policy Manual section 7.5.1 and Business Procedures Manual section 9.1)
  • Procurement card (P-Card)
    Note: Each campus has submitted a P-card plan to the Office of Planning and Budget and Department of Administrative Services (DOAS) detailing approved use. P-Card holders should review their institution’s individualized P-Card plan to ensure they are in compliance. A P-Card may be used for the following (See Business Procedures Manual section 3 for full explanation):
    • Student food, lodging and travel
    • Entrance fees to educational venues
    • Operating expenses and supplies
    • Fuel for rental vehicles
    • Emergency situations
  • Check request
  • ATM card
  • Stored value card
  • Traveler’s check
  • Cash advance/petty cash advance to an authorized institutional representative (excessive cash advances should be avoided)
  • Direct payment by an authorized institutional representative from personal funds, with a reimbursement request to follow

Study abroad programs should comply with all applicable BOR and institution policies regarding procurement and use of these payment methods.

The State Accounting Office and DOAS encourages faculty and university employees to use a personal credit card to pay for their travel expenses, whenever practical, and then to use travel expense reimbursement procedures. When practical, faculty and university employees should utilize direct billing for airfare, ground transportation, and long-term housing to assist managing expenditures occurred abroad.

Each institution will have the authority to determine the best way to handle payment for purchases and expenses for its study abroad programs. A petty cash fund may be established to pay for goods/services while in a foreign country in accordance with Business Procedures Manual section 4.8. However, due to the risks and responsibilities associated with petty cash, its use should be limited to those situations in which other payment alternatives are not an option.

Institutions using petty cash must have the following in place:

  • Petty cash application and approval process
  • Procedures for opening a petty cash bank account
  • Reconciliation guidelines
  • Closeout guidelines
  • Management, record-keeping, and reimbursement procedures

Many foreign countries offer refunds of sales taxes, often called value-added taxes or VAT, for purchases of goods and services associated with study abroad programs. Institutions should actively pursue these options, in order to reduce program costs to participating students.

© 2024 Board of Regents of the ÐÔÊÓ½çAPP
270 Washington Street, S.W.,
Atlanta, Georgia  30334
U.S.A.

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