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These are commonly referred to as " indirect costs " that are recovered in external grants and contracts for research , instruction , and outreach . Obviously , these represent issues for which universities are challenged on a daily basis . Funding in the amount of nearly $ 6.3 million is included for strategic investments , such as reducing the student / faculty ratio and converting some fixed-term faculty appointments to standing appointments . Anna Griswold ’ s presentation about federal student aid programs has set the stage for a brief discussion of the Higher Education Act which is administered by the U.S. Department of Education and scheduled for reauthorization in 2004 . These include the Hershey Medical Center , Auxiliary Enterprises , Agricultural Research Funds from the federal government , and Restricted Funds , which are primarily sponsored grants and contracts for research . In the current environment for higher education , activities related to cost savings , non-tuition revenue enhancements and strategic planning undoubtedly will be long-term issues for the University . I provide you with this background because these groups are “ leading the charge ” for the national higher education agenda .