Models of higher education institution functioning in the context of normative financing

Abstract

The article describes author's research in the field of higher education institution functioning in the context of normative financing and admission of fee-paying students. The article offers solutions to the problems related to achieving break-even point when functioning in the context of providing benefits for fee-paying students, using extra teaching space to increase the number of students and cost-cutting on permanents expenses. In order to obtain necessary results the author constructs three models allowing for determining financial position of the educational institution and using developed algorithm of simplified calculation of per-capita normative financing that correlates with basic layouts of its practical definition. Model results demonstrate that in the context of normative financing provision of benefits for fee-paying students weakens financial position of the institution, increase of teaching space for new students leads to financial deficit, coat-cutting on permanent expenses is possible only when they are firmly fixed and a certain number of students is achieved. Further research can be conducted in the field of correlation between the size of permanent costs with break-even point and construction of a model to reflect financial position of the institution in the context of single format of financing without taking into consideration individual peculiarities of functioning. Models developed and results obtained can be used by higher educational institutions as a basis for introducing benefits for fee-paying students and optimization of teaching space usage.