K. Financial Considerations: Projected revenues should be sufficient to support a successful program, and must cover the estimated costs of the program.

1. Expenditures for program initiation and annual operation should be estimated and displayed in the proposed budget. The summary should enable the reader to understand expenditures for a period representative of one full program cycle. A model for presenting expenditure estimates for academic program changes appears in Budget Model. One column should be completed for each year in the cycle.

Expenses related to the Au.D. will be very similar to the master's degree it is replacing. Personnel expenses are related to the participation of Drs. Singer and Preece and part-time adjunct faculty. To determine the expenses related to Drs. Singer and Preece, a model was used that assumes that 75% of an individual faculty member's salary is accounted for by delivery of the curriculum. Faculty work on a 12-credit-per-semester basis, nine credits in course delivery and three credits in support of students beyond course delivery. The data below assume that Dr. Singer makes $75,000 per year and Dr. Preece $65,000. The figures represent the prorated portion of participation in the Au.D. program as opposed to teaching in other degree programs.

Program Year	I	II	III	IV
Singer	$34,031	$43,3125	$40,218	$34,031
Preece	$32,175	$32,175	$30,468	$30,468

The average number of credits taught in the Au.D. program per year by adjunct faculty is 14. Assuming an approximate cost of $1,000 per credit offered, the annual cost for adjuncts is $14,000.

From the above, the cost of delivering the Au.D. is listed below on a per year basis through the four-year degree cycle.

I	II	III	V
$80,206	$89,486	$84,686	$78,499

There are no new or additional expenses compared to the master's degree in audiology the Au.D. replaces. This is specifically true with respect to administrators, support staff, operating expenses, travel, capital, and student assistance.

2. Revenue estimates should be provided for a similar period of time. For a new program, the appropriateness and feasibility of instituting differential tuition and/or fees should be addressed. A model for presenting revenue estimates for academic program changes appears in Budget Model. One column should be completed for each year in the cycle. For the first year, distinguish between existing and new resources. Caution: The expenditure and revenue estimates are the portion of the proposal which tend to cause the greatest difficulty. It is advised that the model forms be used for reporting this information and that proposal developers work with appropriate budget personnel.

Estimation of revenue in the Au.D. program is based on the following assumptions:

a. 90 credits;

b. four-year program;

c. five students per year enter the program;

d. one of five students entering is a Rhode Island resident; and

e. tuition costs are fixed.

The number of students in the Au.D. program will increase incrementally by five for each of the first four years of the program. At that time, the number of students will plateau at 20 and remain fixed. Therefore, revenue will increase incrementally over the first four years and stabilize at $202,200 annually. Precise determination of revenue from years one to three is difficult because some students in the current master's program will transition into the Au.D. If this were a new program, zero based, revenue would rise proportionately over the first four years.

3. Describe how current institutional resources will be redeployed or extra institutional resources will be obtained to support the program (e.g., describe program eliminations, external sources of monies, etc.)

Institutional resources that support the master's degree in audiology will be deployed to manage the Au.D. program. The master's program will be terminated upon approval of the Au.D. No funding for the Au.D. is required beyond the funding used to support the master's program.