Criterion One Summary

Criterion One Summary

Presented by

Glen Menzies

April 18, 2006

Presented by

Glen Menzies

April 18, 2006

Subcommittee MembersSubcommittee Members

Glen Menzies, Chair Jim Allen Larry Bach Bill Barnes Sara Biskey Kellie Blanchard Cheryl Book

Glen Menzies, Chair Jim Allen Larry Bach Bill Barnes Sara Biskey Kellie Blanchard Cheryl Book

Gary Dop Greg Hayton Mark Keeler (student) Phil Mayo Nate Ruch Clint Watt

Gary Dop Greg Hayton Mark Keeler (student) Phil Mayo Nate Ruch Clint Watt

Criterion 1: Mission & IntegrityCriterion 1: Mission & Integrity

Criterion 1: Mission & IntegrityCriterion 1: Mission & Integrity

The organization operates with integrity to ensure the fulfillment of its mission through structures and processes that involve the board, administration, faculty, staff, and students.

The organization operates with integrity to ensure the fulfillment of its mission through structures and processes that involve the board, administration, faculty, staff, and students.

Core Components:Core Components:


a:The organization's mission documents are clear and articulate publicly the organization's commitments.




b:In its mission documents, the organization recognizes the diversity of its learners, other constituents, and the greater society it serves.


b:In its mission documents, the organization recognizes the diversity of its learners, other constituents, and the greater society it serves.


c:Understanding of and support for the mission pervade the organization.




d:The organization's governance and administrative structures promote effective leadership and support collaborative processes that enable the organization to fulfill its mission.






e:The organization upholds and protects its integrity.



e:The organization upholds and protects its integrity.

The Mission DocumentsThe Mission Documents


An important objective of our subcommittee was to clarify exactly what constituted NCU’s mission documents, and how these documents should be understood in relation to each other.




Key were the Mission Statement, Vision Statement, and Identity Statement.




An important objective was to clarify exactly what constituted NCU’s mission documents, and how these documents should be understood in relation to each other.


Inadequacies in the mission documents were identified.

An important objective was to clarify exactly what constituted NCU’s mission documents, and how these documents should be understood in relation to each other.


Inadequacies in the mission documents were identified.

A New Mission StatementA New Mission Statement

Last month the Regents approved a new Mission Statement designed to replace the old Mission Statement and the Vision Statement.




The “glosses” to the Mission Statement remain fluid.






The Identity Statement remains in effect, but the wording may be massaged some.



The Identity Statement remains in effect, but the wording may be massaged some.

Our efforts reflect a work in progress.




1) Adjustments will be needed due to having a new Mission Statement.





2) Due to an oversight on my part, no report has been written for Core Component 1c.







3) One sub-subcommittee has not yet submitted its report.



3) One sub-subcommittee has not yet submitted its report.

Core Component 1a: Mission Documents




This portion of our report will have to be revised, due to having a new Mission Statement. Therefore, I will focus my time on other core components.

This portion of our report will have to be revised, due to having a new Mission Statement. Therefore, I will focus my time on other core components.

Core Component 1b: DiversityCore Component 1b: Diversity


Since the glosses to the new Mission Statement are still malleable, I suggest placing additional commitments to diversity within the glosses.




“Unity in Diversity” is inherent in a proper understanding of being “Christ-centered” and being “Pentecostal.”


“Unity in Diversity” is inherent in a proper understanding of being “Christ-centered” and being “Pentecostal.”


Commitment to diversity is also implicit in the expression “throughout the world.”

Commitment to diversity is also implicit in the expression “throughout the world.”


The following are presented as markers of our diversity:The following are presented as markers of our diversity:


The following are presented as markers of our diversity:

1) Ethnicity;


1) Ethnicity;



1) Ethnicity;

2) Educational backgrounds;


1) Ethnicity;




1) Ethnicity;


3) Ability/Disability; and


1) Ethnicity;





1) Ethnicity;



4) Religion.


1) Ethnicity;



4) Religion.


Personally, I find our claim to religious diversity unconvincing.Personally, I find our claim to religious diversity unconvincing.

Core Component 1c: Understanding the Mission




At present, we do not have a report for this core component.

At present, we do not have a report for this core component.

Core Component 1d: GovernanceCore Component 1d: Governance


At NCU we have many decision-making bodies and offices.




There is widespread agreement about decision-making processes and jurisdiction.






Yet, sometimes “boundary issues” arise.



Yet, sometimes “boundary issues” arise.




Yet, sometimes “boundary issues” arise. In these cases we generally employ an

“inclusive strategy” (by consulting multiple affected bodies).



Yet, sometimes “boundary issues” arise. In these cases we generally employ an

“inclusive strategy” (by consulting multiple affected bodies).

The Board of RegentsThe Board of Regents


Our Board of Regents is a “representative board,” which is generally the weakest form of governing board.




Boards dominated by ex officio members tend toward disengagement.






This has been a problem in the past, but our present board seems highly engaged.



This has been a problem in the past, but our present board seems highly engaged.


Our present board structure has advantages:Our present board structure has advantages:


Our present board structure has advantages:

1) Accountability to our core constituency;


1) Accountability to our core constituency;



1) Accountability to our core constituency; and

2) Access to our core constituency.


1) Accountability to our core constituency; and

2) Access to our core constituency.

AccountabilityAccountability

Accountability is important because of fear of theological, spiritual, and missional drift.




Educational institutions sell what economists call “credence goods.”






Credence comes from objective measurements (e.g., accreditation), reputation, and oversight by trusted parties.



Credence comes from objective measurements (e.g., accreditation), reputation, and oversight by trusted parties.


Having regents who are trusted figures within the Assemblies of God gives us greater “credence” with our core constituency.

Having regents who are trusted figures within the Assemblies of God gives us greater “credence” with our core constituency.

AccessAccess

Access to our core constituency is crucial to recruitment and fundraising.


AccessAccess


About 10 years ago, DYDs were added to our board. This was done to increase access.


About 10 years ago, DYDs were added to our board. This was done to increase access.

Governance IssuesGovernance Issues

Governance IssuesGovernance Issues

We have identified five governance issues that may require some organizational change, and certainly merit careful review.

We have identified five governance issues that may require some organizational change, and certainly merit careful review.

The Number of RegentsThe Number of Regents

Our Articles of Incorporation call for a maximum of 50 regents, but our Bylaws provide for up to 51 regents.


The Number of RegentsThe Number of Regents


Perhaps the Articles of Incorporation should be amended to allow for more regents.


Perhaps the Articles of Incorporation should be amended to allow for more regents.

The Sarbanes-Oxley Act of 2002The Sarbanes-Oxley Act of 2002


This act was passed in response to the Enron and Tyco scandals.




While most provisions of Sarbanes-Oxley do not apply statutorily to non-profits, this act has impacted the best practices models for non-profits.


While most provisions of Sarbanes-Oxley do not apply statutorily to non-profits, this act has impacted the best practices models for non-profits.


At present, NCU does not comply with some Sarbanes-Oxley standards.




The Board does not have separate finance and audit committees. Currently the Executive Committee serves as both.






Since the President is an NCU employee and serves on the Audit Committee, we do not meet the “independence” standard.



Since the President is an NCU employee and serves on the Audit Committee, we do not meet the “independence” standard.


The Administration is well aware of these issues and is moving in the direction of full compliance.

The Administration is well aware of these issues and is moving in the direction of full compliance.

Conflict of InterestConflict of Interest


Several of our regents serve on the governing boards of competing institutions.




It would be unthinkable for the same person to serve of the boards of both Ford and GM, but a similar situation is common in AG higher education.






This situation is difficult for NCU to address by itself.



This situation is difficult for NCU to address by itself.


NCU has a written policy on conflict of interest, but this policy does not address whether NCU regents may also sit on the governing boards of competing institutions.

NCU has a written policy on conflict of interest, but this policy does not address whether NCU regents may also sit on the governing boards of competing institutions.

Liability and IndemnificationLiability and Indemnification


Article VI of NCU’s Articles of Incorporation attempts to shield regents from personal liability.




A line of text seems to have dropped out of Article VII of NCU’s Bylaws (on indemnification of regents and officers).


A line of text seems to have dropped out of Article VII of NCU’s Bylaws (on indemnification of regents and officers).


Tom Hutchinson, NCU’s attorney has provided the wording of how this article should read.




It would make sense for the Board of Regents to correct the wording of this article.


It would make sense for the Board of Regents to correct the wording of this article.


Since the point of Sarbanes-Oxley is to hold governing boards accountable in their oversight duties, and broad indemnification and exemption from liability seem designed to shield members of governing boards from accountability, one wonders whether courts would honor these provisions.

Since the point of Sarbanes-Oxley is to hold governing boards accountable in their oversight duties, and broad indemnification and exemption from liability seem designed to shield members of governing boards from accountability, one wonders whether courts would honor these provisions.

The Principle of Non-Compensation




Article III of NCU’s Articles of Incorporation states: “This corporation shall not afford pecuniary gain, incidental or otherwise, to its members.”





This seems inconsistent with the practice of awarding full tuition scholarships to the spouses and dependent children of regents.


This seems inconsistent with the practice of awarding full tuition scholarships to the spouses and dependent children of regents.



It is also possible that married regents or regents with dependent children could not serve on on the Board’s Audit Committee and still pass the test of independence according to Sarbanes-Oxley standards.

It is also possible that married regents or regents with dependent children could not serve on on the Board’s Audit Committee and still pass the test of independence according to Sarbanes-Oxley standards.



It is also possible that if NCU would hire a regent as a member of the faculty, that this would raise issues of non-compliance with Article III.





Tom Hutchinson, NCU’s attorney has suggested that we adopt an informal policy that Board members not teach more than one or two classes in any academic year.


Tom Hutchinson, NCU’s attorney has suggested that we adopt an informal policy that Board members not teach more than one or two classes in any academic year.



In some way or other, this issue needs to be raised with the Board.

In some way or other, this issue needs to be raised with the Board.

Core Component 1e: IntegrityCore Component 1e: Integrity


Several of NCU’s governing documents address issues of fiscal responsibility and legal compliance.




Specifically, NCU is committed to abiding by IRS regulations, Minnesota’s employment laws, the Americans with Disabilities Act, FERPA, the Family Medical Leave Act, and both Minnesota and federal Financial Aid regulations.


Specifically, NCU is committed to abiding by IRS regulations, Minnesota’s employment laws, the Americans with Disabilities Act, FERPA, the Family Medical Leave Act, and both Minnesota and federal Financial Aid regulations.


NCU responds to complaints and grievances from staff, faculty, and students.




Specific grievance processes are detailed in the Faculty Manual, the Staff Manual, and the NCU Judicial Manual maintained by the Student Development Department.


Specific grievance processes are detailed in the Faculty Manual, the Staff Manual, and the NCU Judicial Manual maintained by the Student Development Department.