21.1 Establishment, Approval, and Budgeting
Every study abroad program sponsored or approved by a University System of Georgia (USG) institution must be authorized by the president of the institution, or his/her designee, under the authority delegated to the president by the Chancellor.
In accordance with those procedures, a completed Study Abroad Program Approval form must be submitted to the Board of Regents Office of International Education for final authorization. This form is contained in the USG Study Abroad Program Director’s Handbook, which is available online at: http://www.usg.edu/international_education/faculty_administrators/policies_procedures_forms
Each study abroad program is expected to be financially self-sustaining over time, and to be accountable for good financial management practices. A Projected Budget form from the USG Study Abroad Program Director’s Handbook must be completed by the Study Abroad Program Director and submitted to the sponsoring institution’s Chief Business Officer or his/her designee, along with the completed and signed Study Abroad Program Approval form. Approvals must be secured for the inaugural year of a program, but need not be secured for future years if the program remains substantially unchanged from the initial approval.
The budgeting process 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. In order to secure guaranteed exchange rates institutions may purchase currency exchange futures contracts, which establish a fixed rate of foreign currency exchange for specified U.S. dollar amounts at designated dates. Consistent with any contract that obligates the institution, it must be authorized by the institution’s president or his/her designee. For additional information for foreign exchange hedging or spot transactions, please refer to http://www.treasury.gatech.edu/contPrograms.html.
Budgeting for instructional costs paid from the general fund may consider both tuition revenues and state appropriations generated by student enrollments in study abroad programs, consistent with budgeting for other academic programs.
In addition, the budgeting process should include the establishment of a reserve fund, appropriate to the size and scale of the institution’s programs, to ensure that the institution can meet reasonable contingencies that may arise during the operation of the program. It is recommended that an amount not less than 5% nor more than 20% of the program fees be budgeted for this reserve.