At the end of each fiscal year, all of the expenses and encumbrances for off-campus credit programs for that year (both direct and indirect) will be subtracted from the total tuition revenues generated. This will result in the off-campus net revenue.

Sixty percent (60%) of the off-campus net revenue will be returned directly to the departments that offered off-campus credit courses in that year.

A dollar value is assigned to the Student Credit Hours (SCH) generated off-campus by dividing the total dollars available for paybacks by the total SCH generated off-campus.

The specific amount returned to each department is calculated by multiplying the total SCH generated by a department times the dollar value of the SCH for departments.

Twenty percent (20%) of the off-campus net revenue will be returned to the deans of each college. The return for each college is calculated by multiplying the sum of all of the SCH generated by that college's departments times the dollar value of the SCH for the colleges.

Twenty percent (20%) of the off-campus net revenue will be returned to the Vice President for Academic Affairs or the Vice President for FSU-Grand Rapids.

Incentive payoffs for the entire fiscal year will be calculated at the end of the fiscal year, and added to the budget for the following fiscal year as payment.