Decisions made by administrative agencies play a big role in how colleges and universities manage their money. These decisions come from various rules and funding programs. Let’s break down their impact in a few important areas:

1. Federal Funding Rules:

   • About 62% of the money that public colleges get comes from federal and state sources. This makes it really important for schools to follow the rules set by these agencies.
   • The Department of Education gives out more than $150 billion each year in federal financial aid. Universities must stick to strict guidelines on how to use this money.

2. Costs of Following the Rules:

   • A study showed that it costs colleges about $1,000 for each full-time student just to comply with federal rules. This can be a huge financial strain, especially for smaller schools.
   • In 2022, colleges spent around $2 billion in total on costs related to following these agency rules.

3. Changes in Governance:

   • Decisions made by agencies about rules like Title IX can change how colleges are governed. This often means schools have to create new committees and oversight groups, which can increase administrative costs by about 10%.
   • More attention from agencies like the Department of Labor on laws about wages and hours has forced nearly 25% of colleges to change their budgets. Many of these schools didn’t have to deal with such oversight before.

4. Accountability of Institutions:

   • Agencies often require colleges to meet certain performance goals, like graduation rates and job placement numbers. Schools are now more responsible for meeting these goals, which can affect their funding and financial health.

In short, the rules and decisions from administrative agencies not only affect how colleges deal with money but also change how they are governed. This creates a situation where schools need to be more accountable and careful about following the rules.