College/Department Affiliate LOU - New program- Ac Year 25-26

    Administrative Understanding
    1. Learning Abroad Center (LAC) agrees to perform the duties and manage the responsibilities enumerated for the LAC in the Responsibility Matrix Department Affiliate programs.
    2. The sponsoring unit agrees to perform the duties and manage the responsibilities enumerated for the ‘Program Sponsor’ in the Responsibility Matrix Department Affiliate programs in addition to the detailed responsibilities listed below.
    3. Adhere to all University of Minnesota policies, including but not limited to, the Student Travel and Education Abroad: Health and Safety policy and accompanying Preparing for Student Travel and Education Abroad (Units) procedure, which requires the sponsoring unit to:
    4. Ensure appropriate contracting with partners by submitting program contracts for review to the GPS Alliance International, Health, Safety & Compliance team (GPS Contracts).
    5. Develop a 24-7 contact protocol and emergency plan. Submit the plan to the LAC and any appropriate sponsoring unit individuals. The plan should include all program emergency contact information including, but not limited to:

      • On Call International's contact information: 

        • Global 24/7 help line: +1 978-651-9224 
        • Call toll-free from the U.S. or Canada: 1-833-808-0254 
        • 24/7 live chat: oncallinternational.com/chat/direct 
        • Text-only number: +1 844-302-5131 
        • Email: mail@oncallinternational.com
      • Department Contact info #1
      • Department Contact info #2
      • Kevin Dostal Dauer, Director of International Health, Safety, and Compliance, dauer001@umn.edu; 612.625.5107
      • Affiliate contact information
      • On-site support staff information
    6. Determine the final per student program fee, which will include:
      • Affiliate program fee
      • LAC’s APAAC advising, placement, academic, and administrative costs ($550 for credit-bearing and non-credit programs)
      • International medical, security, and evacuation insurance cost of $2.50/day
      • Sponsoring Unit administrative fees (if applicable)
    7. Provide the LAC with estimated additional expenses for the following (as applicable):
      • Transportation to/from program site
      • Visa/required documents
      • Travel clinic/Immunizations
      • Housing deposit
      • Housing and/or meals not included in the program fee
      • Texts/materials
      • Essential daily living expenses
    8. Provide the LAC with the EFS string and combo code (if applicable) for transfer of funds.
    9. Provide the LAC with the affiliate’s or sponsoring unit’s program cancellation policy (whichever will be primary), approved by the sponsoring unit. The sponsoring unit must ensure that the cancellation policy is communicated in writing to students.
    10. Transmit payment to the program provider.
    11. Communicate with students who have concerns with their bill/program fee.
    Financial Understanding

    Program Fee/Billing 

    The sponsoring unit will establish an appropriate program fee for student participants that covers on-site costs for the program as well as the APAAC and international medical, security, and evacuation insurance. All revenue from the billing process will flow directly to the sponsoring unit account string provided to the LAC. The Department will provide the LAC with a detailed program fee.

    Mandatory University of Minnesota International medical, security, and evacuation insurance. 

    All program participants who will be in-country for some or all of the program duration are required by University policy to be covered by international health insurance when traveling abroad for University purposes. The LAC will enroll all student participants in the UofM’s international medical, security, and evacuation insurance. The LAC includes the cost of this insurance when billing the sponsoring unit account string (currently $2.50 per participant/day but subject to change). Once insurance has been purchased for a participant, the costs are not refundable, regardless of the reason for the cancellation and costs will be billed to the sponsoring unit. The LAC will inform units when the international insurance costs change—it often increases after these LOU agreements have been signed. The LAC does not determine the cost of international insurance.

    Application Fee 

    The $50 application fee covers the cost of processing the students’ application to the program and represents a financial commitment on the part of the student to the program. It is non-refundable across all programs regardless of sponsorship and will be paid either by the student or by the sponsoring unit in the case of program cancellation. Students with submitted, complete applications who are denied a spot on a program because the program is at capacity will have their application fee refunded and the sponsoring unit will not be charged. Sponsoring units can choose to pay the application fee on behalf of the student in extenuating circumstances.

    Cost Recovery Model

    The Learning Abroad Center is a ‘cost recovery unit’. It does not receive general tuition dollars from the University. Instead, there is an APAAC (advising, placement, academic and administrative costs) included within every program fee which covers the cost of LAC operations as listed in the responsibility matrix. For College/Department Affiliate programs, program ownership is with the sponsoring unit (College or Department). In these instances, the LAC charges the APAAC to the sponsoring unit along with the cost of mandatory international insurance. The sponsoring unit is responsible for including these costs in the overall program budget and including them in the program fee that is charged to the student participants. Should the sponsoring unit decide to not include the APAAC amounts into the per student program fee, the LAC will charge the sponsoring unit directly for these costs.

    First time program Base Cost model 

    The financial risk and reward for running international programs is with the unit sponsoring the program. When your program is first set up, the APAAC—though charged per participant—includes a base cost. The base APAAC recognizes that whether or not the program runs, the LAC devotes significant staff time and incurs costs associated with program setup and application management. For subsequent years, the sponsoring unit will only be charged the APAAC on a per student basis.

    APAAC Amounts

    The APAAC Base is $3,300. This is the minimum (prorated per the schedule below) the sponsoring unit will be charged. The APAAC is charged on a per student basis at a rate of $550, so the initial cost base is 6 students. 

    Examples:

    • APAAC for program with 4 students = $3,300 [Base = $3,300]
    • APAAC for program with 6 students = $3,300 [Base = $3,300]
    • APAAC for program with 8 students = $4,400 [8 x $550]
    • APAAC for program with 12 students = $6,600 [12 x $550]
    • APAAC for program with 20 students = $11,000 [20 x = $550]

    APAAC Pro-Rating Schedule for credit-bearing and non-credit programs

    • The sponsoring unit is responsible for 25% of the APAAC Base ($825) once the program is set up and activated in Slate and made live on the web application portal for students to apply.
    • The sponsoring unit is responsible for 50% of the APAAC Base ($1,650) once the first student applies to the program.
    • The sponsoring unit is responsible for 75% of the APAAC Base ($2,475) once two or more students have applied to the program.
    • The sponsoring unit is responsible for 100% of the APAAC Base ($3,300) once the first student has confirmed a spot on the program.

    Student Account Billing Procedures 

    • LAC will bill each student applicant a $50 application fee at the time of application. This fee will be refunded to the students and charged to the sponsoring unit if the program is canceled.
    • LAC will bill each confirmed student for the $400 deposit within three weeks of receiving the confirmation and payment agreement form.
    • LAC will transfer funds, less the APAAC and insurance cost, to the sponsoring unit. The sponsoring unit is in charge of transmitting payment to the affiliate. The remainder of the program fee will be billed to the confirmed student’s University of Minnesota account according to the normal billing schedule for that term. This includes the APAAC, international health insurance fees, any sponsoring unit administrative fees, and affiliate fees.

    Student Cancellations 

    The sponsoring unit must notify the LAC of any student cancellations as soon as possible. In the event of a student cancellation for any reason:
    • The sponsoring unit is responsible for establishing a refund policy. The cancellation and refund policy and process must be published in a prominent and accessible place for students prior to any student applications. 
    • The LAC will bill the student account according to the refund policy established by the sponsoring unit, but in all cases the LAC will retain (for any student canceling after confirming) the non-refundable application fee and Learning Abroad Center APAAC. The international medical, security, and evacuation insurance is also non-refundable once the overseas program begins. In the case of a cancellation prior to confirmation, only the $50 application fee will be retained.
    • Should the sponsoring unit wish to cover these costs for the student canceling, or any other costs pertaining to the program, they may do so—in which case the costs will be billed to the sponsoring unit rather than to the student.
    • If the student has been billed, the LAC will adjust the student’s billing according to the sponsoring unit’s refund policy, provided that written notification has been received by the student. LAC will also adjust the student’s registration, if necessary (and applicable). Students must provide the sponsoring unit with written notification.
    • It is the student’s responsibility to notify the Office of Student Finance of any changes in their program status and adjust their registration, if applicable.

    Program Cancellations 

    The sponsoring unit must notify the LAC of any program cancellations as soon as possible. In the event of a program cancellation for any reason:
    • The $50 application fee will be refunded to all students who have applied and will be charged instead to the sponsoring unit.
    • The LAC will charge the sponsoring unit for international medical, security, and evacuation insurance costs when it has been purchased for some or all individuals within the group.
    • The LAC does not assume any liability in any cases, for any reasons for expenses charged by external vendors or due by contracts signed on behalf of the program by the sponsoring unit.
    General Considerations
    1. The sponsoring unit is responsible for complying with all University policy and procedures including, but not limited to, those established by the Offices of Purchasing, General Counsel, Disbursement Services, and Payroll for bids and contracts, as well as processing all program-related payments and handling all overseas budget matters. This includes, but is not limited to, on-site instructional costs, on-site contracts and program expenses, all payroll documents for program leaders and any other persons receiving compensation from the program, travel documents, University of Minnesota fees, and the Learning Abroad Center APAAC. 
    2. The LAC does not assume responsibility for any debt or University policy violations on behalf of the program. 
    3. The LAC does not assume any liability for any aspect of the program activities. 
    4. Students participating on study abroad programs are granted a waiver from student service fees. 
    University Requirements
    1. Both parties agree to perform the duties and abide by the terms as laid out in the University’s “Student Travel and Education Abroad: Health & Safety Policy” found within the policy library. These policy requirements will be met by following the steps and responsibilities found in the Responsibility Matrix—Department Affiliate programs document.
      • The sponsoring unit will complete the “Unit Pre-Travel and Program Planning Requirements.” 
      • The Learning Abroad Center will complete the “Education Abroad Office requirements.” 
      • Additionally, the Learning Abroad Center will take the lead on ensuring all student participants complete the “Student Pre-Travel Requirements.” 
    2. It is imperative that all parties have ample time to adequately complete the actions detailed in the University’s Health and Safety policy and complete the actions detailed in this LOU.
    For these reasons,
    1. The Learning Abroad Center requires the LOU to be signed no later than 6 months prior to the program start date and all student application/confirmation paperwork to be turned into the LAC no later than 30 days before the program start date. 
    2. Should the sponsoring unit or the LAC not complete the requirements on this schedule, this LOU will be void. The LAC will not bill the unit for any APAAC (insurance and application fees may still be billed) but will instead refer the sponsoring unit to the International, Health, Safety, and Compliance (IHSC) team and the Office of General Counsel (OGC) to discuss any possible policy exemptions for the program. Rarely are exemptions granted; most often the program will not be able to run.
    Contact Information
    Program Information
    Financial Information
    EFS String format: Fund-DeptID-Program
    Agreement & Signature