An Audit Report on the Higher Education Coordinating Board's Oversight of Distance Education at Texas's General Academic Institutions of Higher Education
November 2011
Report Number 12-006
Overall Conclusion
The Higher Education Coordinating Board (Coordinating Board) acts as an information resource on distance education, as required by the Texas Education Code. In addition, the Coordinating Board developed a Distance Learning Master Plan, received institutional plans from higher education institutions, and was notified of distance education courses and approved distance education programs, as required by the Texas Education Code and the Texas Administrative Code. Through its Distance Learning Master Plan, which the Coordinating Board is reviewing, and its policies and rules, the Coordinating Board provides guidance to general academic institutions of higher education institutions as they develop and operate their distance education programs.
Distance education is becoming an increasingly important part of the delivery of higher education. As of August 2010, all 37 public general academic institutions of higher education in Texas (excluding community colleges) reported that they offered distance education courses. For the Fall 2009 and Spring 2010 semesters, those 37 general academic institutions of higher education reported that they offered 1,074,306 semester credit hours through distance education, based on data reported to the Coordinating Board.
The State Auditor's Office surveyed Texas's 37 general academic institutions of higher education that confer undergraduate degrees about their experiences implementing distance education programs, and the institutions reported the following:
- During the 2009-2010 academic year, the 37 general academic institutions of higher education offered a total of 462 distance education degree programs, and 52.6 percent of those distance education degree programs were offered fully online. See Table 5 in Chapter 2 and Appendix 2 for a list of all degree programs offered by the 37 general academic institutions of higher education surveyed.
- During the 2009-2010 academic year, institutions offered approximately 69,231 formula-funded courses for academic credit and 1,046 self-supporting courses for academic credit. Of the total 70,277 total unique courses, approximately 15.8 percent (11,090 courses) were offered via distance education. See Tables 1 and 2 in Chapter 1 for additional information about the distance education courses offered by the 37 general academic institutions of higher education surveyed.
- Specific financial data for distance education-related expenditures and revenues was not readily available at most of the institutions surveyed or at the Coordinating Board. Most of the institutions reported that they do not separately track distance education-related revenue or expenditures. Of the 37 institutions surveyed, 2 institutions did not provide any estimated or actual amounts for revenues and expenditures for distance education. Of the 35 institutions that provided estimated or actual amounts for revenues and/or expenditures for distance education:
- - Thirty-two institutions reported that they spent approximately $103.0 million for distance education-related expenditures (specifically for faculty and instructors, technology, and administration costs) in fiscal year 2010.
- - Thirty-three institutions reported that they generated approximately $187.5 million in distance education-related revenue (specifically from tuition and fees) in fiscal year 2010.
The reported totals of distance education-related revenue and expenditures are not based on identical groups of general academic institutions of higher education and there is no consistent definition for distance education expenditures and revenues. Therefore, the reported totals for distance education expenditures and revenues are not comparable. Of the 35 institutions that provided auditors with specific financial data for distance education, 2 did not provide an amount for revenue and 3 institutions did not provide an amount for expenditures. (See Chapter 2-B for additional information about distance education-related financial data.)
- Twenty-one general academic institutions of higher education reported approximately $10.1 million in distance education-related contract amounts for contract periods ranging from June 2002 through May 2016. However, several institutions, citing confidentiality clauses, did not report a contract amount. See Appendix 3 for a list of all contracts that the higher education institutions provided to auditors.