5 March 2025
J Tamu
By email: [FYI request #29897 email]
Tēnā koe J Tamu
Official information request regarding Commerce Cost per point and
Student Services Fees
I refer to your request for information under the Official Information Act 1982 (the Act)
dated 27 January 2025:
1.
“The factors determining the current cost of $64.16 per point for an
undergraduate commerce paper, and a breakdown of associated overheads
as a percentage of the total cost, provided in Excel format if possible.
2.
The reasoning behind the recent increase in student services fees for 2025,
including all relevant documentation, reports, meeting minutes, or decisions
that explain the justification for this increase.
3.
Has there been any consultation with students regarding the increase in
student services fees? If so, which student organisations do they represent,
what feedback was received, and how was it incorporated into the decision-
making process?”
The factors determining the current cost of $64.16 per point for an
undergraduate commerce paper, and a breakdown of associated overheads
as a percentage of the total cost, provided in Excel format if possible
The University’s revenue and expense budgets are set separately and independently from
each other. Tuition fees are considered within the context of the overall funding
environment. The fees charged for course papers are not determined simply by the costs
(direct and overhead) of providing that paper i.e. that the direct costs of providing an
undergraduate Commerce paper is calculated and then overhead and necessary margin
are included to arrive at the total cost of providing an undergraduate commerce paper.
Rather, tuition fees are determined as the result of a number of factors, including:
•
The University’s forecast cost base, including people costs, occupancy costs and
operating expenses, including depreciation and financing (interest) cost.
•
The University’s forecast revenue from sources including government funding,
tuition revenue (from both domestic and full fee students), research revenue,
philanthropy, and other revenue including commercial revenue.
•
The desire by the University’s Council to run a modest surplus to allow for some
growth in capital expenditure relative to depreciation and to provide headroom
against unforeseen contingencies. The FY25 budget is for a surplus of 0.4% of
revenue.
•
The
Annual Maximum Fee Movement (AMFM) regulations which limit how much
tuition fees can be increased each year, relative to fees for the prior year. Since its
introduction, cumulative increases in AMFM have been less than cumulative CPI
increases.
These factors are used to determine the percentage of increase necessary which is then
applied to the previous year’s cost for each paper. Overall each faculty makes a positive
contribution towards the surplus, which is expected and needed to cover the central costs
of the University, such as the Library.
Whilst we have a budget for each Faculty, including the Wellington School of Business
and Government, for budgeting purposes we do not separately break down and allocate
costs within this Faculty to undergraduate and post-graduate courses.
As such, the University does not hold a breakdown of associated overheads as a
percentage of the total cost of commerce papers. Therefore, this aspect of your request is
refused in accordance with s18(e) of the Act as the information does not exist. However,
we have attached a paper considered the by the University Council at its 9 September
2024 meeting that contains the supporting rationale for fee increases for 2025.
The reasoning behind the recent increase in student services fees for 2025,
including all relevant documentation, reports, meeting minutes, or decisions
that explain the justification for this increase.
An increase to the Student Services Fee was approved by the University Council at its
meeting held on 9 September 2024. The report and minutes from this meeting that
explain the rationale for the increase are attached. Also attached are documents from
meetings of the Advisory Committee on the Student Services Fee (ACSSF), the
University’s Finance Committee and Te Hiwa (the University’s Senior leadership Team)
which considered the matter.
Has there been any consultation with students regarding the increase in
student services fees? If so, which student organisations do they represent,
what feedback was received, and how was it incorporated into the decision-
making process?
The University is required to consult with students when setting Student Services Fees
(SSF). The University works in partnership with students through the Advisory
Committee on the Student Services Fee (ACSSF), an oversight advisory group made up of
staff and student representatives which typically meets monthly. The student
representatives are from VUWSA and Ngāi Tauira who, via the Student Assembly, consult
with the student body on any changes to the SSF. The Student Assembly is a forum led by
students for students and includes a diverse range of student communities. It provides a
platform for students to receive the relevant SSF information and have an opportunity to
shape the rate of the SSF and how the money raised is spent.
Results from the 2023 Student Voice-Have Your Say were also used to inform the
recommendations of the ACSSF. This survey ran in Trimester 2 between 31 July 2023 –
20 August 2023 and included questions about awareness, use, and satisfaction of SSF
funded services. These results are attached.
You have the right to seek an investigation and review by the Ombudsman of the
decisions made regarding this request. Information about how to make a complaint is
available at
www.ombudsman.parliament.nz or freephone 0800 802 602.
If you wish to discuss this decision with us, please feel free to contact me at
[VUW request email].
Ngā mihi nui
Blair Doherty
Senior Advisor, Official Information and Privacy
Legal Services
Te Herenga Waka—Victoria University of Wellington
