In support of further advancing online, asynchronous program offerings available to students at Old Dominion University, an incentive system for departments and colleges is necessary. This policy explains how online programs will be developed and net tuition revenue will be distributed to achieve this goal.

            
The Office of Distance Learning will collaborate with University administrators to identify and agree upon programs to be developed in an online format. Once a program has been selected for development, the University will invest in the cost of producing the courses by providing design and development support from the Office of Distance Learning's Center for Learning and Teaching and allocating $4,500 per faculty developer for each course developed in an online format when produced with the support of the Center for Learning and Teaching.

            
The revenue sharing process begins the fiscal year agreed upon as the year the online program is launched. In order to provide a level of funding stability for each department, a baseline will be set for a base funding level resulting from the cumulative net revenue from the initial year of the program's course offerings. For each subsequent fiscal year, the base will be adjusted up, or down, per the previous year's actual net revenue. The net revenue will be calculated annually using the Online Program Revenue Share Worksheets, as described in the Procedures section of this document.

            
The terms of this revenue sharing policy will not impact current base funding levels. Each College and Department is accountable for the use of funds received through the revenue share process. A portion of the funding must be used to support and advance the college's distance learning program obligations. Once these obligations have been met, remaining funds can be used to support other initiatives.

            
The Office of Distance Learning is responsible for preparing the Online Program Revenue Share Worksheets and will calculate resulting allocations for each college and department on an annual basis. The total revenue earned from each online course offering less the cost of instruction associated with the offering will be calculated to determine the net revenue for all courses included in the approved online program. Instructional cost information used in the calculations is provided/verified by Academic Affairs and the Departments prior to finalizing the revenue share distributions each semester. At the start of each fiscal year, these calculations will be used to make adjustments to the allocated base funding per the initial base fund allocation for the online revenue share. The University Budget Office will verify and apply these amounts to the base budget adjustments of each college annually.

            
For all supporting information and documentation see www.dl.odu.edu/revenue_share/