Executive and Audit Committee Board of Trustees Meeting ... · Executive and Audit Committee Board of Trustees Meeting May 6, 2005 ... Internal Audit for fiscal years 2003 ... We

AGENDA Executive and Audit Committee

Board of Trustees Meeting May 6, 2005

Mr. James R. Talton, Jr., Chairman, Presiding

Report Items Acted on by the Full Board since the last meeting: None.

Acted on by the Executive and Audit Committee since the last meeting:

1) Approval of Request to Sever House at 506 East Ninth Street 2) Approval of Request for Property Lease—Pediatric Subspecialty and Healthy Weight Clinic 3) Approval of Request for Initial Appointments with Permanent Tenure for Frank Romer,

Professor, Department of Foreign Languages and Literatures; and Deirdre M. Mageean, Professor, Department of Geography

Discussion/Action Items

1) Approval of Minutes --April 1, 2005 (Full Board Meeting) 2) Internal Audit Quarterly Report

Internal Audit Reports (Stacie Tronto) 3) IT Management Flexibility Compliance (Jack Brinn) 4) Employment of Related Persons 5) Serious Illness and Disability Policy 6) Nominations for Board of Visitors (Austin Bunch) 7) Planning Process (Bob Thompson) (Documentation for the above items will be available at the Board meeting. They will also be on file in the Assistant Secretary to the Board’s office, 107 Spilman Building.)

INTERNAL AUDIT ACTIVITY

QUARTERLY REPORT THIRD QUARTER FISCAL YEAR 2005

Office of Internal Audit and Management Advisory Services

April 14, 2005

TABLE OF CONTENTS

Internal Audit Activity Report 2 Office of Internal Audit

INTRODUCTION.................................................................................................. 3

SUMMARY OF COMPLETED AND PENDING ENGAGEMENTS ....................... 4

REPORT OF OTHER INTERNAL AUDIT ACTIVITIES ........................................ 7

APPENDICES: A: ANNUAL AUDIT PLAN FY 2004 – 2005………………………....…………..A-1 B: INTERNAL AUDIT ACTIVITIES……..…..…………………………………….B-1 C: CONSULTATIONS……………………………………………………………..C-1 D: INTERNAL AUDIT STRATEGY……………………..……………..…………D-1

3Q05 East Carolina University

INTRODUCTION


The Office of Internal Audit and Management Advisory Services is committed to the mission of the University and assisting management in the effective discharge of their responsibilities and duties. With that in mind, the Internal Audit team has committed themselves to a very aggressive annual audit plan and re-engineering of Internal Audit timeline. The Internal Audit team is also committed to the four core values or principles considered essential to the effective practice of internal auditing: integrity, objectivity, confidentiality, and competency.

The following pages summarize the progress of our commitment to the annual audit plan and other internal audit activities for the period January 1, 2005 to March 31, 2005.


SUMMARY OF COMPLETED AND PENDING ENGAGEMENTS


For the quarter ending March 31, 2005, we completed and/or initiated the following engagements, follow-ups, and special reviews for a total of 1435 staff auditor hours, which is 52% of total staff auditor hours for this period. Please note that actual auditor hours of the completed engagements will not equal the total auditor hours for the period because an engagement may have been initiated in the previous fiscal year or quarter. The complete annual audit plan for fiscal year 2005 can be found in Appendix A. The completed engagements are highlighted in yellow. The annual audit plan is a dynamic document that may change during the fiscal year as circumstances dictate. Requests from management and changes in the University’s organization or operations may result in changes to the plan and priorities. COMPLETED ENGAGEMENTS, FOLLOW-UPS, AND SPECIAL REVIEWS Information Technology: SCT Banner Finance Module – SDLC Issued: 03/28/05 Budgeted Hours: 256 Actual Hours: 174 This review was requested by the ECU Board of Trustees. In summary, the project was found to be within budget but “challenged” as to whether the system could be successfully implemented by July 2005. Management has responded that a new implementation date will be established. Disaster Recovery Hotsite Testing – 2004 Issued: 02/23/05 Budgeted Hours: 100 Actual Hours: 64 Each year the Office of Internal Audit participates in the testing of the University’s disaster recovery plan. The purpose of this participation is to observe and document the hotsite recovery test and provide feedback about the strategies and procedures of the University’s documented recovery capability. No significant weaknesses were found with regard to control over IT processes to ensure continuous services, which satisfies the University’s business requirements.




Special Reviews: Alumni Relations Issued: 02/12/05 Budgeted Hours: 100 Actual Hours: 309 In July of 2004, the Office of Internal Audit received a request to review a complaint from a vendor alleging that an Alumni Relation’s employee requested the vendor to falsify an invoice. Further, the Office of Internal Audit received allegations that this same employee had mischaracterized expenditures and accepted gifts and payments from vendors. Due to the lack of adequate controls over expenditures and sponsor/affinity records, we could not conclude on the allegations. However, Management has taken the initiative to strengthen the internal controls and the Office of Internal Audit will perform an operational audit at a later date. MCNC Grant Issued: 03/24/05 Budgeted Hours: 100 Actual Hours: 182 While conducting a review of a Federal contract, the Office of Internal Audit questioned a number of expenditures that were charged to the MCNC grant that appeared to be related to the Federal contract. Upon further review, it was found that East Carolina University provided the agreed upon services as listed in the service contract with MCNC. However, it was found that MCNC grant funds were utilized for expenses related to the Federal contract. Management has determined that since the MCNC was a fixed priced contract, the funds do not need to be returned to the sponsor. Further, the MCNC account will be reimbursed and the remaining funds will be transferred to a residual account. Follow-Up Review: University Pro-Card Program Issued: 03/04/05 Budgeted Hours: 100 Actual Hours: 100 The primary purpose of the follow-up was to verify compliance with the recommendations and management responses and to assess the adequacy of the corrective actions taken with regard to the operational engagement issued in July of 2003. It was found that out of ten observations, nine had been satisfactorily completed. The incomplete item relates to a control that is not utilized by the bank and the ECU Pro-Card Manager has requested this feature.




PENDING ENGAGEMENTS, FOLLOW-UPS, AND SPECIAL REVIEWS The following is a list of engagements, follow-ups, and special reviews that have been initiated but not yet completed: Operational: DEC - Pediatrics Joyner Library Compliance: HIPAA Privacy Review Chancellor’s Discretionary Account 2004-2005 Police Department International I-9 Misuse of State Property Information Technology: Disaster Recovery Testing 2005 Special Reviews: Dining Services Parking and Traffic Deposit Sheets Bank Account Financial Aid Joyner Library Follow-Up Reviews: Outstanding Items for 2001-2002


REPORT OF OTHER INTERNAL AUDIT ACTIVITIES


Besides performing engagements, follow-ups, and special reviews, the Internal Audit department is also involved in other activities that supports the mission of the University, adds value to the University, and assists management in the effective discharge of their responsibilities and duties. A complete list of internal audit activities by category and the percentage of time expended on each category can be found in Appendix B. The following provides more detail of these activities: INTERNAL AUDIT STRATEGY The internal audit profession is undergoing a significant transformation. Issues facing the profession and risks confronting the University must be understood. Because of this transformation an effective internal audit strategy driven by the Standards for the Professional Practice of Internal Auditing is essential. Therefore, a five year internal audit strategy has been developed for the Office of Internal Audit for fiscal years 2003 through 2007. The Internal Audit Strategy along with the approximate and actual completion dates can be found in Appendix D. This is a dynamic document that may change as circumstances dictate. For this quarter, Internal Audit has revised the Internal Audit website and developed a brochure that describes the services offered. Please visit our website at http://www.ecu.edu/Audit/ . The development and implementation of a risk based audit plan is still our top priority for this fiscal year. We also continue to strive to build rapport with senior management and to use every opportunity to ensure that the East Carolina Community has a clear understanding of the role of the internal audit function and vice versa. CONSULTATIONS Internal Audit provides consultation and management advisory services to administrative and academic units. For this period, we provided 30 consultations for a total of 353 hours or 11% of total auditor hours to a variety of departments. A complete list of consultations for this quarter can be found in Appendix C.

PROFESSIONAL DEVELOPMENT/TRAINING The Internal Audit department is committed to continuing education. We continue to provide staff development and career counseling to all members of the Internal Audit team to ensure that each person is in the process of becoming certified in at least one audit-related discipline and can consistently provide the


http://www.ecu.edu/Audit/

REPORT OF OTHER INTERNAL AUDIT ACTIVITIES


level of service expected by the University. For this quarter, the Internal Audit team expended a total of 167 hours towards professional development, which includes on-line research, reading periodicals and textbooks, and attending training events. COMMITTEES It is very common and highly encouraged that internal auditors sit on key management and project committees as ad-hoc, nonvoting members who participate in the meetings by offering commentary and insights. Hopefully, by building rapport with senior management, Internal Audit will be invited in the future to sit on key management committees. Currently, the Internal Audit department is represented on the following committees: • Information Systems Steering Committee • Information Resources Coordinating Council • Banner Steering Committee • HIPAA Oversight Committee • HIPAA Security Implementation Committee • Brody School of Medicine Risk Management and Compliance Committee • Chancellor’s Cabinet This concludes our report for the quarter ending March 31, 2005. If you should have any questions or comments, please contact the Office of Internal Audit at 252-328-6044.


Appendix AAnnual Audit Plan FY 2004-2005

3QFYE05As of 03/31/05

Management Budget Actual Budgeted %Description Requested Status Status Hours of Total

Operational Audits:Alumni Association Brought Forward Inactive 256Patient Revenue Cycle Yes Brought Forward Assigned 400CHSC Operations Yes Brought Forward Inactive 256DEC - Pediatrics Yes Brought Forward Active 237Distance Education Yes Brought Forward Inactive 256Joyner Library Yes Brought Forward Active 256Office of Technology Transfer Brought Forward Inactive 256Petty Cash Funds Yes Brought Forward Inactive 256Student Loans Yes Brought Forward Inactive 256University Cashier's Office Yes Brought Forward Inactive 256University Life and Other Financial Arrangements Yes Brought Forward Inactive 256Athletic Camp Billings and Receivables Yes Current Year Inactive 256Surplus Property Current Year Inactive 100Study Abroad Program Yes Work In Progress Complete 40

Subtotal Operational Audit Hours 3337 33%Compliance Audits:CHSC - OAT Grant Yes Brought Forward Inactive 256Clinical Trials Yes Brought Forward Inactive 256International I-9 Brought Forward Active 256Personnel Flexibility Yes Brought Forward Inactive 256Chancellor Discretionary Account 2004/2005 Yes Current Year Active 100Construction Contracts - Review Process Current Year Inactive 256Grants and Contracts - Regulatory Compliance Current Year Inactive 256Misuse of State Property - 2003/2004 Yes Brought Forward Active 100Police Fair Labor Law and Compliance Yes Current Year Active 100SRCI/UNC Mgmt. Flexibility - 2004/2005 Yes Current Year Inactive 100State Audit Reports Yes Current Year Inactive 100Chancellor Discretionary Account 2003/2004 Yes Work In Progress Complete 34HIPAA Privacy Review Work In Progress Active 20HIPAA Security Review Yes Added Inactive 256SRCI/UNC Mgmt. Flexibility - 2003/2004 Yes Work In Progress Complete 64

Subtotal Compliance Audit Hours 2410 24%Information Technology Audits:Logician Brought Forward Inactive 256PBX - West Campus Brought Forward Inactive 256Banner - SDLC Current Year Complete 256Disaster Recovery Test (2004/2005) Current Year Active 100Disaster Recovery Test (2003/2004) Work In Progress Complete 67

Subtotal Information Technology Audit Hours 935 9%Special Reviews:Agromedicine Telephone Review Yes Work In Progress Complete 20Alumni Relations Yes Added Complete 256Contracutal Auto Payments Yes Work In Progress Complete 20Dining Services - Limited Review Yes Work In Progress Active 40Hopitality Management and Discretionary Acct Yes Work In Progress Complete 40MCNC Grant Work In Progress Complete 20Parking and Traffic Daily Deposits Yes Added Active 40Bank Account Review Yes Added Active 100Financial Aid Review Yes Added Active 256Radiation Onclogy - Employee Time Records Yes Added Assigned 100Diving Safety - Cell Phone Yes Added Active 100Campus Living Time Reporting Yes Added Active 100Joyner Library - Unauthorized Access Yes Added Active 150NSABP - Special Review Yes Added Active 100Friends of the Library - Special Review Yes Added Active 100Motor Fleet Complaint Yes Added Complete 40RDS Telephone Review Yes Work In Progress Complete 5SHS - Review of Hard Drive Yes Added Complete 20Joyner Library - Special Review Yes Added Complete 100Travel - Housing Yes Work In Progress Complete 20

Subtotal Special Review Audit Hours 1627 16%

A-1

Appendix AAnnual Audit Plan FY 2004-2005

3QFYE05As of 03/31/05

Management Budget Actual Budgeted %Description Requested Status Status Hours of Total

Follow-Up Reviews:Athletics Brought Forward Assigned 100Dowdy Student Store Work In Progress Complete 84End-User Computing Policies and Procedures Brought Forward Cancelled 0Housing - Special Review Brought Forward Inactive 100ITCS Operations Compliance Brought Forward Complete 100Music Review - Employee Time Records Brought Forward Inactive 8Psych - Finestone Grants Brought Forward Inactive 40Follow-Up on 2001-2002 Outstanding Items Added Active 100Telecommunications Work In Progress Complete 96University Procard Work In Progress Complete 90University Unions Work In Progress Complete 90

Subtotal Follow-Up Review Audit Hours 808 8%Special Projects:Incident Response Team Guide Added Active 100Internal Audit Website Complete Active 200HIPAA Security Implementation Team Yes Brought Forward Active 256Implement Risk Based Audit Plans Yes Work In Progress Active 400

Subtotal Special Project Hours 956 9%Total Audit Hours 10073 100%

A-2

Appendix BInternal Audit Activities

3QFYE0501/01/05 - 03/31/05

% of % of %Staff Total Director Total Total of Total

Description Hours Staff Hours Hours Director Hours Hours HoursAdministration(1) 484 18% 32 6% 516 16%Audits, Special Reviews, and Follow-Ups 1435 52% 137 25% 1571 48%Consultations 198 7% 155 28% 353 11%External Auditor Assistance and Year-End Work 119 4% 0 0% 119 4%Leave Time(2) 295 11% 64 12% 359 11%Professional Development/Training 159 6% 8 1% 167 5%Routine Tasks(Misc. Meetings, Committee Meetings, Etc.) 35 1% 118 22% 153 5%Special Projects 22 1% 36 7% 58 2%

Total 2746 100% 550 100% 3296 100%

(1) Currently Internal Audit does not have an Administrative Assistant dedicated to performing administrative duties such as ordering supplies, maintaining leave records, filing, etc. The staff auditors are currently performing these duties.

(2) 22% of leave time involves State Holidays 12% of leave time involves compensatory time off

B-1

Appendix CConsultations

3QFYE0501/01/05 - 03/31/05

SECTION DESCRIPTION

Admin & Finance Positive Pay Access for Reconciliation (Core Banking System) CFI FASFA Checks Personal Phone Calls Petty Cash Wire TransferArts & Sciences Students Signing Time SheetsBSOM BSOM Pharmacy Incentive Program Eastern NC HIV Contract Telephone Invoice ApprovalsDisability Support Ser Study Abroad Class for Deaf StudentECU Foundation Proof of PurchaseGrants and Contracts Four-Year Old Grant AllocationHealth & Human Perf. Grant AdministrationITCS BSOM Clinic Workstation Lockdown Paper-Shredding Guidelines Vendor and Visitor Wireless Network AccessJoyner Library NC ECHO Grant - Software PurchaseLaupus Library Segregation of DutiesMaterials Management AB Seas Fixed Assets Lost Equipment Graduate Student Tuition ReimbursementParking & Traffic State funds - Parking PassesResearch-Grad. Studies Question on "Conflict of Commitment"SOM-Clinics Record RetentionStudent Life Employee Complaint Special Olympics Tsunami Relief FundsSystems Coord/ITCS Banner End-User Access Approval ProcessUniversity Attorney Taking University Computers Home West Litigation

C-1

Appendix DInternal Audit Strategy Matrix

FY 2003 - 2007As of 03/31/05

Approximate ActualTask Completion Completion

Number Action Plan Status Date Date

1Develop and implement evaluation plan for the Chief Auditing Executive and Internal Audit Function.

Complete2Q05 2Q05

2 Restructure Internal Audit department staff. Complete 3Q05 3Q053 Revise Internal Audit Website. Complete 3Q05 3Q054 Recruit an IT auditor. Complete 3Q05 2Q05

5

Training in computer forensics and the evaluation of ENCASE along with the development of "Incident Response" policies and procedures.

Active 1Q06

6Implement risk based audit plans. (Annual audit plan will be risk-based beginning July of 2005.)

Active 1Q06

7Obtain internal stakeholders' input on their expectations of the Internal Audit Department and build rapport with each group.

Active 1Q06

8

Request a system-wide restudy of internal audit positions by the Office of State Personnel in order to align these positions with private industry.

Active 1Q06

9Develop and implement a yearly Internal Audit Activities report. Inactive 1Q06

10Develop and implement an internal quality assurance assessment for internal audit. Inactive 1Q06

11Evaluate and implement audit automation software. Inactive 2Q06

12Request a quality assurance review from an external source. (Should be performed every 5 years.)

Inactive 3Q06

13Strive to obtain the Institute of Internal Auditor's Quality Improvement Award. Inactive 4Q06

14 Address the application of Sarbanes-Oxley Inactive 4Q06

15Develop and implement fraud awareness plan for the University. Inactive 1Q07

16 Implement internal control guide and provide internal control training to business units.

Inactive 1Q07

17Develop and implement customer satisfaction surveys. Complete 2Q03 2Q03

18Develop and implement project tracking system. Complete 3Q03 3Q03

19 Develop and implement workpaper standards. Complete 3Q03 3Q03

20Implement the software package ACL along with utilization of Date Warehouse. Complete 3Q03 3Q03

D-1

Appendix DInternal Audit Strategy Matrix

FY 2003 - 2007As of 03/31/05

Approximate ActualTask Completion Completion

Number Action Plan Status Date Date

21

Group membership to the Institute of Internal Auditors (IIA) for the Internal Auditing (IA) staff. (Membership renewal required each year.)

Complete 3Q03 3Q03

22Develop and implement follow-up tracking mechanism to ensure recommendations are implemented timely and accurately.

Complete 4Q03 4Q03

23Develop and implement a quarterly internal audit activities report. Complete 1Q04 1Q04

24

Change reporting structure of Internal Audit Department to report functionally to the Audit Committee of ECU Board of Trustees and administratively to the Chancellor.

Complete 2Q04 2Q04

25Revise the current Internal Audit Charter to reflect the new definition of Internal Audit and the reporting structure.

Complete 2Q04 2Q04

26Develop and implement an Audit Committee Charter. Complete 2Q04 2Q04

27Change the title of department from "Office of the Internal Auditor" to "Office of Internal Audit and Management Advisory Services."

Complete 2Q04 2Q04

28Implement Institute of Internal Auditor's Professional Practices Framework . (Annual review of compliance required each year.)

Complete 3Q04 4Q04

29Develop and implement Internal Audit Activities Manual. Complete 4Q04 4Q04

30 Revise audit reporting formats and evaluate the potential to deliver reports electronically.

Complete 3Q04 4Q04

31

Encourage professional development among staff members by attending local IIA sponsored meetings, reading internal auditing publications, and attending conferences and seminars.

Ongoing NA NA

32Market the services provided by the Internal Audit department through presentations and brochures.

Ongoing NA NA

33Continuously review industry best practices as it relates to Internal Audit and determine if applicable to the University.

Ongoing NA NA

34Encourage staff to obtain a certified/professional designation such as CIA, CPA, CISA, or CFE.

Ongoing NA NA

D-2

Faculty Senate Resolution #05-21 Approved by the Faculty Senate: March 22, 2005 Approved by the Chancellor: April 13, 2005 Approved by the Board of Trustees: pending Approved by the UNC General Administration: pending Approved by the UNC Board of Governors: pending

East Carolina University Policy on Serious Illness and Disability Leave for Faculty

Introduction and Purpose The purpose of this policy is to provide permanent faculty who do not currently earn sick leave with paid leave for cases of a serious health condition, maternity leave, or parental leave as defined under the Family and Medical Leave Act (FMLA). The purpose of this policy is also to coordinate leaves granted under federal and state acts such as the FMLA [29 U.S.C. § 2601, et seq.], the North Carolina Family Illness Act (NCFIA) [SB1115, Section 28.3B], and the UNC Policy on Serious Illness and Disability Leave for Faculty [UNC Policy 300.2.11(G)]. All three policies cover the same serious health conditions, maternity leave or parental leave. This policy supplements the FMLA and NCFIA to provide for a period of paid leave rather than such leave being unpaid. This policy does not apply to brief absences of 14 calendar days or less that are usually accommodated informally. This policy is intended to apply to short-term and intermediate-term disability of up to one year. Exceptional cases may be considered by the University. All eligible East Carolina University faculty members with a medically verifiable serious health condition as defined below are covered under this policy. The review by university administrators focuses exclusively on verifying the documentation of the condition.

Granting or denial of a request for a leave under this policy shall be made without regard to the faculty member's race, color, national origin, religion, gender, age, sexual orientation, political affiliation, disability, or personal malice.

I. Definitions

For purposes of this policy a brief absence is defined as fourteen (14) calendar days or less.

The following definitions are applicable to the Family and Medical Leave Act (FMLA), the North Carolina Family Illness Act (NCFIA) and ECU's Policy on Serious Illness and Disability Leave for faculty:

A serious health condition is defined as (a) an illness, injury, impairment, or physical or mental condition that involves either inpatient care in a hospital, hospice, or residential medical care facility, or that involves continuing treatment by a health care provider; (b) any period of incapacity requiring an absence from work of more than fourteen calendar days that also involves continuing treatment by a health care provider; or (c) continuing treatment by a health care provider for conditions so serious that, if not treated, would likely result in an absence of more than ten workdays. Prenatal care is also included. The period of actual physical disability associated with childbirth is considered a serious

2

health condition and must be taken as family/medical leave, whether as paid or unpaid leave.

Immediate Family - spouse, parents, children (including step relationships), or other legal dependents who require the faculty member's care.

Parent - a biological or adoptive parent or an individual who stood in loco parentis (a person who is in the position or place of a parent) to an employee when the employee was a child.

Child - a son or daughter who is under 18 years of age or is 18 years of age or older and incapable of self-care because of a mental or physical disability. Child would include: (a) biological, (b) adopted, (c) foster, (d) step-child, (e) legal ward, and (f) child of an employee standing in loco parentis as defined above.

Immediate Supervisor - Normally, the immediate supervisor is the individual who is the head of the code unit. However, in code units that describe department structures, the immediate supervisor is the department head/chair.

FMLA provides for a period of up to 12 weeks of unpaid leave for a serious health condition, maternity leave, or parental leave. NCFIA provides for up to 52 weeks of unpaid leave in a five-year period in cases of serious illness of a child, spouse, or parent.

Applicable vice chancellor - The applicable vice chancellor is the Provost/Vice Chancellor for Academic Affairs or the Vice Chancellor for Health Sciences, whoever is appropriate for the particular faculty member.

Start Date - The period of paid leave under this policy begins with the first day of the absence from University contractual duties resulting from such illness or disability. If a leave begins as a brief illness, then results in a more serious condition that warrants use of the Serious Illness Leave policy, the period of paid leave under this policy will revert back to the first day of absence.

II. Eligibility

This policy applies to persons holding regular full-time faculty appointments who are eligible for participation in either the North Carolina Teachers and State Employees Retirement System or the Optional Retirement Program, and who are not eligible to earn sick leave under any other state or institutional leave policy. If a faculty member has been in a previous leave-earning position and has an accumulated sick leave balance, the faculty member must exhaust any previous sick leave balance prior to requesting coverage under this policy. Part-time permanent faculty holding appointments of at least 75% are also covered under this policy.

III. Benefit

(A) In all cases, leave granted under this policy shall be in increments that are appropriate to the facts and circumstances surrounding the illness or disability, the academic calendar, the needs of the unit, and the responsibilities of the faculty member. Leave taken under this Serious Illness policy shall run concurrently with FMLA leave

3

and/or with the statutory provisions of the North Carolina Family Illness Act. Any leave under this policy will count as part of the 52 week allowable total under the NCFIA and/or as part of the 12 week allowable total under the FMLA.

(B) A faculty member who has a medically verifiable illness or disability, with proper medical documentation, as defined under FMLA, or whose immediate family member has a medically documented, verifiable illness, may elect to request a paid leave of absence for up to 15 calendar weeks in accordance with Section V. Such a request must be reviewed by the immediate supervisor and the dean with notification of the action taken submitted to the appropriate vice chancellor and the Office of Human Resources.

(C) If the illness or disability requires an absence from faculty duties in excess of the 15 calendar weeks, the faculty member may elect to petition for an extension of paid leave (see (E) below) or for a leave of absence without pay under procedures described in the Faculty Manual or under University policies implementing the FMLA or under statutory regulations of the NCFIA.

(D) The faculty member should consult with the Office of Human Resources regarding existing benefits through the Disability Income Plan or through other disability programs that may be offered to University employees on an optional basis.

(E) A faculty member who provides the appropriate additional medical documentation and whose illness or disability, or that of the family member, extends beyond the 15 weeks provided for under this Policy, may elect to submit a written request to the immediate supervisor for an extension of leave with pay up to a maximum of one year (determined by counting forward 12 months from the date the leave begins) at the discretion of the University. More than one serious illness or disability leave may be granted in a 12-month period, but the total maximum allowable paid leave for all such serious illnesses may not exceed one year in length. Such requests must be reviewed by the appropriate dean, vice chancellor, and the Associate Vice Chancellor for Human Resources. Additional leave with pay in excess of the limits may be granted in exceptional cases at the discretion of the university.

(F) Additional leave requires leave of absence without pay.

(G) The immediate supervisor may require such medical documentation or certifications, second or third medical opinions (at the university's expense) or other documentation of the need for leave, probable length of absence from normal duties, ability to return to work, or intent to return to work as it may deem necessary.

(H) When the request is to care for a member of the faculty member's immediate family, the University will also require satisfactory evidence that the faculty member will exercise primary responsibility for the care of those who would qualify the faculty member for leave under this policy.

(I) Leave offered under this policy is not allowable as terminal leave payment when the faculty member leaves the employment of the University. Unused leave shall not accumulate nor be carried forward from one academic year or calendar year to the next. It may not be used to extend years of creditable state service for retirement benefits.

4

However, it may be exhausted prior to participation in the Disability Income Plan of North Carolina that is provided to eligible state employees.

(J) It is the intent of this Policy that faculty members receive the benefits defined herein during the period(s) in which they have a contractual commitment to the University.

IV. Use of Leave

The period of leave provided under this policy may be used for medically verifiable sickness or injury as defined under the FMLA. Use of such leave includes the birth of a child and to care for the newborn child after birth or for temporary disability connected with childbearing and recovery, which prevents the faculty member from performing usual duties. Leave also may be used for the placement of or to care for a child placed with the employee for adoption or foster care, and/or for a serious health condition of the employee that prevents the employee from performing the essential functions of his/her job. In accordance with ECU's policy on leave granted under the Family and Medical Leave Act, a faculty member may seek leave needed as a consequence of a medically verifiable illness/disability of a member of the immediate family, as defined in Section I. of this policy.

A faculty member who anticipates the need for a temporary leave shall notify his or her immediate supervisor in writing as soon as possible.

If the faculty member's request is for the purpose of caring for an immediate family member, the immediate supervisor may request medical verification of the illness or disability of that person and may also inquire about the circumstances which make it impossible or difficult for the faculty member to carry on with normal duties.

When the request is for the care of the faculty member’s family member or dependent, the immediate supervisor may base the recommendation on other factors, including the needs of the unit, timing within the academic year, effect on students, ability of the unit to compensate for the absence, etc.

Female faculty shall not be penalized because they require time away from work caused by or contributed to by pregnancy, miscarriage, abortion, childbirth or recovery. Disabilities resulting from pregnancy shall be treated the same as any other temporary disability. The type and nature of the faculty member’s duties during pregnancy shall be determined by the faculty member's immediate supervisor in consultation with the faculty member and upon advice she receives from her physician.

V. Administration of Benefit

It is the responsibility of the faculty member to request the use of leave provided by this policy as soon as possible upon learning of the need for the leave. This request will be made to the faculty member's immediate supervisor. The request for leave shall include an estimate of the amount of time the faculty member is expected to be on leave. The faculty member will notify his or her immediate supervisor if the estimate materially changes.

Such requests must be in writing, but there may be instances where the employee is unable to make the request by completing the necessary forms at the Office of Human

5

Resources web site or via a letter. All conditions covered by this serious illness and disability leave policy cannot be anticipated. The policy provided herein is expected to be appropriate in most situations. However, in unusual cases, the faculty member or other responsible party may be unable to provide the necessary notification. In those rare instances where the employee or a member of the employee's family is unable to make the necessary request, it is the responsibility of the immediate supervisor to consult with a Human Resources benefits counselor for direction.

The immediate supervisor will review the request and forward the documentation to the dean. The dean is responsible for reviewing the documentation and consulting with the Office of Human Resources. The dean will provide written notification of the decision to the immediate supervisor, who will then advise the faculty member. The dean will provide a copy of the notice to the appropriate vice chancellor and to the Office of Human Resources. If leave is denied, the written notification will include the grounds for denial.

In the case of a request for leave beyond the initial 15 week period, the request must also be reviewed by the appropriate vice chancellor and the Associate Vice Chancellor for Human Resources. The person responsible for notifying the faculty member is the Associate Vice Chancellor for Human Resources. If leave is denied, the written notification will include the grounds for denial.

The immediate supervisor is responsible for securing, to the extent possible, substitute personnel for the duration of the faculty member’s leave. Any adjustments in work schedules within the unit are at the discretion of the immediate supervisor with the approval of the dean and are subject to departmental and institutional needs and resources. In recommending approval of a leave, the immediate supervisor will develop a written plan to cover the responsibilities of the faculty member for the duration of the leave. Funding of substitute personnel is the responsibility of the appropriate vice chancellor.

Nothing in this policy shall prohibit other faculty members from “covering” for the faculty member on leave but only so long as the faculty member on leave complies with this leave policy.

VI. Appeals

A decision not to grant a request for leave under this policy may be appealed to the appropriate vice chancellor. The vice chancellor's decision may be appealed to the chancellor. Appeals of a negative decision must be made by the faculty member to the next higher level within ten (10) business days of receipt of the negative decision. The vice chancellor and chancellor must respond to an appeal within ten (10) business days of receipt of the appeal.

VII. Confidentiality

Communications concerning leave requested or granted under this policy are subject to the same confidentiality requirements as other personnel records in accordance with North Carolina law.

VIII. Record-Keeping

6

Because this policy provides an important financial benefit, accurate records on all requests for leave, whether or not the request is granted, must be maintained. The immediate supervisor shall be responsible for forwarding all records pertaining to the use of this policy to the Office of Human Resources. The Office of Human Resources will maintain the official records concerning requests for leave under this Policy, and may, from time to time, be required to make general reports on its use to other University administrators and to the Faculty Senate.

IX. Coordination with Other Policies

ECU's Faculty Manual indicates that leaves from all employment obligations which are granted to probationary-term faculty may include extension of the length of the probationary term. It is the responsibility of the faculty member to review the pertinent sections and determine the impact such leave would have on their probationary term.

A permanently tenured faculty member granted leave under this policy may have his or her five-year cumulative review delayed by a period agreed upon by the faculty member, the faculty member's immediate supervisor, the dean, and the appropriate vice chancellor.

The terms of this policy pertain only to a leave for a specified period because of illness or disability. This policy has no effect on provisions for other types of leave as described in the Faculty Manual.

The leave provided for under this policy shall have no effect on the faculty member’s other employment benefits.

X. Effective Date This policy shall become effective immediately upon approval by the President of The University of North Carolina and shall supersede any previous authority granting leave for faculty, if any. The policy, once approved by the Faculty Senate, Chancellor, Board of Trustees, UNC General Administration, and UNC Board of Governors will be placed in the ECU Faculty Manual under Part VI. Section VII. and referenced in Section I.D.

Overview of Strategic Planning Timeline, May – October 2005

Share working draft

of SP w/ BOT

Results of Academic

Program Dev.

2005-2015EnrollmentProjections

Share draft SPw/Executive

Council – May 17

Share draft SPw/Cabinet

June 3

New VCResearch &Graduate St.

July 1

New Assistantfor Diversity

July 1

July 1Completediscussiondraft of fulldocument

forBOT meeting

on July 17

Share w/Campus

CommunityAugust

Convocation

Final Consideration

BOTOctober

Solicit publiccomments:forums, webposting, etc.

Faculty, Deans,Chairs, Staff, &

Students

Divisions,Colleges, & Unit PlansOctober

4/26/05 Draft

Introduction to East Carolina University

(This is a mock up of how we might set the stage for the vision statement and goals. It is very incomplete and intended for discussion purposes. We have discussed using people's pictures with a brief caption as illustrations. ) Since its founding in 1907 almost 100 years ago, East Carolina University has changed in many ways. It has:

• Grown from a two year normal school to be a research/intensive institution granting a full range of degrees from the baccalaureate to the doctorate, including medicine.

• Served more than XXXXXX alumni. • Grown from XX students in 1907 to almost 23,000 in 2005. • Grown from xx faculty in 1907 to more than 1,500 in 2005. • The largest undergraduate nursing and allied health sciences programs in

North Carolina. • Etc.

Its students have gone on to excel in their chosen fields of endeavor. For example, in recent years ECU's graduates…

• Been recognized as “The National Teacher of the Year.” • Starred in major films and on television. • Served as corporate leaders in Fortune 500 companies • Improved the health of people as doctors, nurses, and allied health

professionals • Have served as a United States Senator. • Performed as musical and visual artists • Become academic leaders • Started their own businesses • Have served as state legislators • received the Pulitzer Prize for history • Won an Emmy Award • Established the Golden Corral Restaurant chain

Its students and faculty have….

• Played a major role in excavating the pirate Blackbeard's ship, The Queen Anne's Revenge

• Pioneered research on non-invasive cardiovascular surgery using robotic technology

• Been leaders in the development of new model teaching practices for the education of new k-12 teachers

• Become the North Carolina leader in distance education • Been recognized as international scholars in such subjects as the U.S.

Supreme court, German politics, geology • Pioneered research in bariatrics and diabetes • Developed internationally recognized devices to help those who stutter

speak clearly • Speecheasy • Hemocellular • Founded the WWF

ECU's Values

Throughout its history, ECU has been served by its adherence to a core set of values, some of which are common to higher education in general, but which are made distinctive when applied to the mission of the university in its physical location. The university's motto is “sevire”, meaning “to serve” and that concept is key to the university's history. Service: ECU was founded as a normal school to help provide public school teachers for eastern North Carolina. This mission embodied not only the value of “service”, but of “education” itself. It was through the provision of excellence in educational opportunities that the university could be of greatest service to its home region and the state. Respect and Caring:

• Faculty & students & staff • E.g. Floyd

Opportunity

• For students • For the region

Optimism

• Never satisfied -can do more, can be better Passion

• For mission • For students • For the meaning of ECU to its alumni, their families, and the region

Excellence

• If there is anything which frustrates the faculty, it is not having the resources they believe necessary to achieve the quality they believe possible

As the university moves into its second century, it faces a number of challenges and opportunities. In fact, each of the challenges is an opportunity for the university to develop. Many of these challenges and opportunities are not unique or even distinctive to ECU, but how ECU chooses to meet them will produce a unique set of decisions defined by the combination of our values and actions. Among these challenges and opportunities are:

• Manage enrollment growth and its consequent effects • Grow research while maintaining and enhancing strength in

undergraduate and professional masters programs • Communicate our story • Develop international and diversity exposure of our students • Selective programmatic development • Economic and community development of eastern North Carolina • Secure appropriate resources - space, finances, etc. • Develop integrated planning processes • Educate our students for change • Revision of our curriculum and instructional methods • Faculty roles and rewards • Multi/interdisciplinary collaboration • To make a difference

(The above are placeholders for the time being.)

To successfully meet these challenges and opportunities, ECU must retain its core values, but to these it must also shift its values to include:

• More applied service • Understanding and tolerance • Prepare students for the world of change • Leadership

This will enable ECU to be recognized as:

ECU's Future Section We have decided to hold off on drafting a vision statement per se until we have a clearer sense of our understanding of where the campus wants to go. "It is never quite over, we are always trying to move forward ..." Ballard

East Carolina University represents a new choice

While East Carolina has a proud history, we see ourselves new each day. As an emerging national research university, we offer a fresh approach. We will not rest on our past accomplishments, but will continue to build a new future for our students, our region, and our state. As East Carolina concludes its first century, it looks back on a period of remarkable growth and accomplishments that have not only transformed the university, but have also improved the state of higher education in North Carolina. In this new environment, East Carolina pledges to continue as a dynamic institution, growing and adapting to meet the needs of the state and its students. In so doing, East Carolina will represent a new best choice for students, for university employees, for donors, and for the citizens of North Carolina. In the next 10 years, East Carolina will be recognized as this new best choice university for North Carolina's best and brightest students, faculty, and staff. In particular, ECU will be nationally recognized for: • The quality and diversity of students it enrolls, retains, and graduates. • The quality and diversity of the new faculty it recruits and retains. • The superb work experience, strong institutional support, and excellent

professional opportunities available to its faculty and staff. • Its success at attracting private support from its alumni and donors, and

increasing its external funding in support of academic programs.

Students come first The student experience is paramount at East Carolina.

From the freshman to the graduate level, our students are taught by experienced faculty committed to the quality of their craft. We take a hands-on, personal approach to student development both in the classroom and outside of it. Our approach emphasizes useful and rigorous experiences that prepare the student to meet the challenges of life. For us, learning does not end in the classroom and research is not confined to the lab. The acquisition of knowledge is not enough; it must be applied. At East Carolina, we recognize that the overwhelming reason students attend college is to prepare for a career. We also realize that they will change their jobs multiple times over the course of their careers. We embrace this "real" world responsibility and will prepare our students to realize their dreams and aspirations through academic and student support programs that enrich their career preparation with the life-long benefits of a classic, liberal education combined with the personal discipline of a strong, ethical character development. In the next 10 years, East Carolina will be nationally recognized for • How it has made student learning the core of its activities • The quality and value of the overall educational experience available to its

students - instruction, the range of academic choices, and out of class experiences

• Having implemented a program of undergraduate student leadership development that is tightly integrated into the curriculum and student life, is distinctive among large, national universities, and is considered a distinguishing characteristic of an East Carolina baccalaureate education

• Its success in retaining and graduating students. • Its effectiveness in meeting the needs of its students, regardless of the

location of their learning experience or level of instruction, through the innovative use of information technology

• The quality, breadth, and success of its distance education programs.

It's more than research. It's discovery and creation. A modern research university is measured by more than the amount of external funding or the scale of the bench research enterprise. Our value as a research university is measured by the results we achieve. The work of discovery and creation is a modern expression of East Carolina's commitment “To Serve”. Every day we are working to discover new ways to improve the lives of our students, the citizens in the region, the state, and the nation. Our discoveries and creations are significant, and through them, East Carolina is a growing force in the lives of people across our state and around the world.

In the next 10 years, East Carolina will be nationally recognized for • The quality of the creative work produced by its fine and performing arts

programs • At least 5 doctoral programs that are considered to be the best in North

Carolina and among the top tier of comparable programs in the nation. • The level and rate of increase in external funding raised to support the

scholarly efforts of its students and faculty. • The successes of its interdisciplinary approach to the treatment, instruction,

and research of such healthcare problems as cardiovascular disease, metabolic disorders, and wellness.

• The manner in which it involves its undergraduate students in the research, discovery, and creation processes of their chosen fields of study.

Look Forward

East Carolina's history is the story of an institution that has never stopped pursuing and achieving progressively higher goals. We have never been content to settle for things as they are today, but see a better "tomorrow" and have committed ourselves to realizing it. Our students and community share this same spirit. In the next 10 years, East Carolina will be nationally recognized as • Having moved from its previous level as a solid regional university to a new

standing among the clearly emergent new national universities • The selective manner in which it has chosen to develop and invest in its new

academic and research programs • The new academic programs it has developed to address the needs of its

local community and region • Setting the standard for modern intercollegiate athletic programs through the

achievements of its athletes in their sports and fields of study

A place and a purpose East Carolina has always been identified with a place, a region. Its very name conveys that identification. While ECU is becoming a national research university with international influence, the school still retains its commitment to "the east". Eastern North Carolina is our home and we have an obligation to aid in its improvement. Our purpose is embodied in the university's motto “Sevire”,

meaning “to serve.” We have an obligation, a commitment, and an opportunity to serve our home region and, through that service, the state and beyond. In the next 10 years, East Carolina will be nationally recognized for • Being a role model for how public universities can provide leadership to

improve the quality of life and economic development of their home communities and region

• The effectiveness of its educational partnerships with the public schools, community colleges, and other universities

• The breadth and continuing impact of its community engagement and service learning programs on the region and the education of our students.

• How it has applied medical and health research to improve the lives of its regions citizens.

Given the above longer term visioning, what follows would be the strategic plan for 2005 -2010 itself. What we have done is “park” key issues identified in many cases by only a word or two under several categories. Clearly other aspects need adding and some of these topics need shifting to the divisions or even lower in the organization.

2005-2010 Strategic Plan Success in achieving this level of national recognition requires the careful investment of time, resources, and attention. It requires us to make some serious decisions about the kinds of programs in which we will invest and those in which we will not. Moreover, success cannot be pursued for the mere sake of recognition. Success should be pursued because of the higher quality of service we can provide to our students, our employees, and to North Carolina. The recognition must come as a result of the caliber of the choices we make and our accomplishments in meeting our objectives. It must also come as a result of our effectively communicating what we have accomplished to our students, alumni, the state, and to the higher education community. Therefore, to move the university forward in fulfilling the vision embodied above, East Carolina adopts the following goals, strategies, and measurements of our success for 2005-2010. 1. Enrich the quality of student learning experiences - in and out of the

classroom • Incorporate the development of nationally competitive leadership

experiences into the curriculum of our academic and student programs • Ensure that students learn in a safe, supportive campus environment

• Enhance campus mentoring and advising programs aimed at retaining and graduating students at even higher rates

• Strengthen student opportunities for engagement with faculty and staff • Inculcate a sense of pride of accomplishment as well as personal and

professional ethics in our students • Ensure student access to - minorities - DE • Educate, on and off campus, individuals for a changing economy

2. Strengthen campus academic programs • Engage in selective investment in new academic programs • Emphasize the development of strong interdisciplinary scholarly activities • Foster faculty innovative teaching that enables students to think creatively

and make discoveries • Expand campus distance education activities, while ensuring the quality of

the educational experience for students and faculty • Make the development, assessment, and use of learning outcomes the

hallmark of campus academic program development and review • Expand our learning of how education takes place in changing world and

apply what we learn to our programs • Transform faculty tenure and promotion criteria to recognize and reward

the diversity of scholarly activities • Master’s programs?

3. Develop and sustain a shared, inclusive campus understanding of

the value of diversity • Recruit and retain a more diverse student body from within the United

States as well as from abroad • Develop an expanded culturally pluralistic curriculum and educational

experience • Recruit, retain, and promote a more diverse university workforce at all

levels • Graduate students who are culturally competent and versatile • Build opportunities for students and faculty to engage in international

educational scholarly activities 4. Research/Discovery

• Improve the support and infrastructure for securing and administering external grants and contracts

• Increase significantly the number and value of external grants and contracts submitted and awarded in support of academic programs

• Involve undergraduate students in research and creative processes of their chosen disciplines

• Something on interdisciplinary research?

5. Become a role model for how public universities can provide leadership to improve the quality of life and economic development of their home communities and region • Strengthen existing and build new effective partnerships with the public

schools, community colleges, and other universities • Healthcare • Arts? • Educate, on and off campus, individuals for a changing economy • Create a culture of support for entrepreneurial activities and advancement • Advance research and other campus initiatives that support economic

development • Share our intellectual resources to assist external individuals and

organizations to be successful • Establish and improve university programs and activities that foster the

future economic health of the region

6. Create a culture of leadership -- of shared responsibility for the

future development of East Carolina University • Develop open, transparent decision making processes • Ensure the financial stability and growth needed to achieve the

university's goals and mission • Develop integrated, collaborative planning processes • Demonstrate respect for ourselves as a community through the

quality/nature of our interactions with one another? (Is this an appropriate strategy?)

• Increase the level of private support from our alumni • Institutional effectiveness • IT • Staff • Relations with external supporters

MEMORANDUM TO: Chancellor Ballard Members of the Executive Council FROM: Robert J. Thompson DATE: April 26, 2005 RE: 2005-2014 Enrollment Projections As you know ECU must revise its long-range enrollment projections and submit them to OP by May 31, 2005. These projections will go from 2005-2014. With input from Tom Powell (Admissions), Paul Tschetter (Graduate School), Elmer Poe and Clayton Sessoms (Academic Outreach), my staff and I have pulled together the following assessment of our options. This should be viewed as a starting point in the discussion as opposed to an end point. Those of us working on these projections are still considering the implications of various options, but we cannot answer such questions as what size the institution should seek to be, the appropriate mix of on-campus and DE students, or what profile should we seek for incoming freshmen. What follows is in three parts. First is an overview of how the enrollment projection process has changed. Second is a breakdown of the various estimates I have received and their individual implications. Third is an overview of the separate decisions to be made and a few recommendations. I should also point out that our enrollment projections for the next two fiscal years was submitted last fall and must serve as the starting point these longer range projects. This is why each of the various options has the same data for the next two academic years.

PART 1: How the enrollment projection process has changed

Freshmen: Previously it was fairly easy to calculate the number of high school graduates in the state, where they would be located, and determine our likely share. Out-of-state freshmen estimates tended to be relatively easy as well because we attracted more applicants than we could admit. The freshmen piece is still comparatively easy. Our choices are:

• For what SAT profile do we wish to aim? • How many out-of-state freshmen do we wish to take?

The difficult issue with regard to Freshmen was the need to extend our NC recruiting into markets outside our traditional recruitment area, the East. Recruiting in the Charlotte area, for example, requires us to entice students to drive past almost all of the other UNC institutions to

get to us. This is where our comparatively lower SAT profile and academic reputation have a negative impact on our ability to recruit and then retain students from such distant parts of the state. This overall situation with regards to Freshmen remains pretty much the same today. Undergraduate Transfers: Undergraduate transfer students were also fairly easy to estimate in that we tended to recruit these from the area community colleges. We could watch their enrollments, work with their academic advisers, and estimate the proportion of their students likely to enroll with us. As the number of graduating high school students in the state increased, this translated into a 2-3 year lag prior to their coming to us. One problem in this area of enrollment projection is that most of the counties in the East are experiencing slower growth in their high school and community college populations ( a few are actually declining in numbers) in comparison to other parts of the state. This is a sector that has changed greatly with the growth of distance education. We seem to be getting fewer of these students coming to campus and more using distance education to meet their needs. Graduate Students: Previously estimating enrollment change in graduate programs was also comparatively predictable, although more volatile that the other categories. Economic trends affected graduate enrollments more quickly than for the other categories. Basic patterns in graduate enrollment were fairly steady as most of the masters programs recruited students from the more immediate geographic area. As new PhD or masters programs were added estimates of their likely enrollment were added in separately as there was no preexisting trend data to use for the estimates. This is the sector most dramatically affected by the growth of DE enrollments. The bulk of our DE students are enrolled in graduate programs and most graduate programs have developed parallel DE programs to their on-campus programs or they have shifted entirely to DE instruction. This has allowed them to expand greatly their enrollments and geographic service areas. This shift also has an unintended negative financial impact when programs are shifted from 101 funding for which the university receives basically full funding in the actual year of instruction to 107 funding for which we are funded at a lesser rate. The dramatic growth in DE also makes prediction of numbers of students in particular programs much more difficult. It is difficult to estimate the likely pools of students for these programs. Even the disciplines do not have a solid basis for estimating. Retention and Graduation Rates: Clearly another piece of our projection model involves campus retention and graduation rates. This piece of the process is well documented and allows us to project the continuing student portion of the on-campus enrollment accurately. The rapid growth of DE enrollment and the enrollment patterns for these students is still under analysis, but it appears to be falling into patterns that can reasonably be used to estimate continuation rates.

Part 2: Overview of projection estimates

Freshmen: For purposes of this exercise, IPRE has kept the same level of expected Freshmen from instate and out-of-state sources as we have been working with for the past several years. This means estimating ECU’s share of NC High School Graduates at 4.24%, the average rate for the past three years and out-of-state students at 16% of the estimated NC number. Even though we may, on campus, decide to increase the out-of-state portion, for purposes of the long

range projection, we use this lower figure. We use these figures because altering them will have comparatively little effect on the overall enrollment numbers with which we are dealing. However, this general topic is one on which a conscious decision should be made. Tom Powell has suggested that we lower the size of the Freshman class to about 3,500 students through 2007. IPRE agrees with him that the further one gets away from our immediate base of recruitment the more difficult it is to recruit and retain students. We do not, however, concur that changes he describes in terms of demographics of our potential students are likely to be of much effect during the next several years. The effects of those changes are more than two years out and much depends on the actions of the state legislature with regards to tuition rates for undocumented students. Also, while the cost of attending ECU has gone up and those students receiving financial aid have lower than overall retention rates, ECU general retention rate is remaining stable. At this point, there is no solid indication that the higher costs of attending college is allowing fewer students to continue, they are simply acquiring greater debt. In any case, as noted above, our enrollment projections for the next two years have already been submitted. The estimate for incoming freshmen is 3,516 in 2005 and 3,585 in 2007. Distance Education Enrollment: In a very real way the enrollment projection process has fundamentally changed with the growth of 107 (DE) enrollments. Initially, DE enrollment was primarily graduate instruction in nature. No matter which numbers we go with, that will continue to be the case, but the size of the undergraduate portion will increase. IPRE and Continuing Studies disagree somewhat on the likely number of future DE enrollments. Therefore, several alternative scenarios have been produced. IPRE’s estimate is labeled Table 1 and is based on a declining rate of growth. Continuing Studies has prepared 4 scenarios. Table 2 is based on a declining rate of growth, but a higher one than used by IPRE. Table 3 is a higher rate of growth. The respective end points in overall cumulative enrollment by 2015 for these different scenarios are:

• Table 1: 33,181 • Table 2: 35,602 • Table 3: 57,832

These different scenarios have very different implications for the proportion of undergraduate and graduate students. The first two tables have the proportion of graduate students increasing to over 1/3 of total enrollment. Table 3 estimates that by 2105 the proportion of undergraduates and graduates will be essentially equal. IPRE has also run a rough estimate on the numbers of new faculty positions that the university would receive and the amount of square footage in office space alone that would be needed to accommodate them. The faculty numbers are illustrated on each of Tables 1-3 in the last shaded area titled Estimated Additional Positions. Table 4 converts these estimates of additional faculty into the projections of additional office space needed to house the faculty members. These numbers do not include any estimate for support staff, instructional facilities, or such spaces – only faculty office spaces. The lowest estimate would require new space equivalent to four floors of the new Science and Technology Building. Clearly each of these scenarios has very different implications for the future of the university. What they illustrate is that we will have to make a choice.

Part 3: Decision Items/Recommendations:

1. Whatever enrollment targets we select, we must keep pressing OP to close the gap in

funding and bring DE up to on-campus levels. 2. We also need to continue to push for funding for the graduate programs in the School of

Medicine. 3. What size of Freshman class do we wish? 4. What SAT profile do we wish to seek, especially for the next several years?

(Recognizing that the 2005 freshmen class is largely determined at this time.) 5. As we do not have adequate time to develop a full analysis of the implications of our

various possible choices, what overall enrollment target do we wish to set? 6. Suggest that we take a risk and assume that the figures we submit will not serve as the

basis for the next bond referendum and that we pick a moderate range estimate. We then use the time between now and December to engage in a full blown analysis of what size and kind of institution we wish to become, especially in the distance education arena. We also try to bring estimates of future state job needs to bear on possible DE enrollments. This will set us up well for 2007 when we have to submit another 10 year enrollment plan. This analysis should be the focus of a task force

7. This analysis should not extend beyond December as its results will have a major bearing on a new campus master plan.

2005 Ten Year Enrollment Plan

DRAFTTable 4: ECU Space RequirementsSummary of Alternative Scenarios

Fall Fall Fall Fall Fall Fall Fall Fall Fall Fall Fall Fall Fall Fall2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

IPRE LR Baseline Scenario Estimated Additional Positions TOTAL 128.980 120.561 82.947 71.614 60.871 44.811 38.540 33.119 36.359 46.372 56.672 Regular 9.064 14.841 17.210 19.449 20.781 13.844 6.490 -0.164 5.920 14.112 22.412 DE 119.916 105.720 65.737 52.166 40.089 30.967 32.050 33.284 30.439 32.260 34.260

Estimated NASF for OfficesRegular Faculty 1,722 2,820 3,270 3,695 3,948 2,630 1,233 -31 1,125 2,681 4,258

20% Support staff and GA's for Regular Faculty 344 564 654 739 790 526 247 -6 225 536 852DE Faculty 22,784 20,087 12,490 9,911 7,617 5,884 6,090 6,324 5,783 6,129 6,509

5% Support staff and Gag's for DE Faculty 1,139 1,004 625 496 381 294 304 316 289 306 325Subtotals NASF 25,990 24,475 17,038 14,841 12,736 9,334 7,874 6,603 7,422 9,653 11,945Grand Total NASF 147,912

1.3 Estimated Gross Square Footage 192,285

DE LR (Low) Scenario Estimated Additional Positions TOTAL 129.018 120.523 73.332 71.289 69.940 71.471 63.781 57.636 59.180 67.324 75.612 Regular 9.064 14.841 17.210 19.449 20.781 13.844 6.490 -0.164 5.920 14.112 22.412 DE 119.954 105.682 56.122 51.840 49.158 57.627 57.291 57.801 53.261 53.212 53.200



5% Support staff and Gag's for DE Faculty 1,140 1,004 533 492 467 547 544 549 506 506 505Subtotals NASF 25,997 24,467 15,120 14,776 14,545 14,653 12,909 11,494 11,975 13,833 15,723Grand Total NASF 175,494


DE LR (Mod Scenario (3) Estimated Additional Positions TOTAL 129.018 120.523 98.844 117.850 135.777 155.617 179.419 215.159 265.902 329.517 404.069 Regular 9.064 14.841 17.210 19.449 20.781 13.844 6.490 -0.164 5.920 14.112 22.412 DE 119.954 105.682 81.634 98.401 114.995 141.772 172.929 215.323 259.983 315.405 381.657



5% Support staff and Gag's for DE Faculty 1,140 1,004 776 935 1,092 1,347 1,643 2,046 2,470 2,996 3,626Subtotals NASF 25,997 24,467 20,210 24,065 27,680 31,440 35,979 42,920 53,216 66,141 81,251Grand Total NASF 433,366


IPRE/bf DRAFT April 15, 2005

Documents

Executive and Audit Committee Board of Trustees Meeting ... · Executive and Audit Committee Board of Trustees Meeting May 6, 2005 ... Internal Audit for fiscal years 2003 ... We