1990 SACS Self-Study Report - Chapter VI - Administrative Processes

The picture that emerges from an examination of administrative processes at the University of North Carolina at Wilmington is uneven. In the areas where it needs to have well-defined, efficient, and effective means to command the resources of the University, UNCW seems to do well. Many procedures in the area of financial resources, for example, are well-defined, comprehensive, and effective. Some of the suggestions about these procedures do not imply shortcomings but rather indicate that a strengthening or embellishment of the status quo is in order.

Two themes in this chapter, however, represent real concerns for the University. The first is communication. In nearly every section of this chapter, a need for better communication is mentioned as either a source for concern or an area for improvement.

The second item that shows up again and again is a lack of resources: in money, personnel, equipment, and facilities. Nearly every sub-unit asks for more dollars, people, offices, classrooms, hardware, and software.

Identifying communication as a problem in a large complex organization can be difficult. To characterize an institution as being in need of better communication is practically a cliché, in that all organizations can benefit from improved communication. A problem occurs, however, when attempts are made to describe with some degree of precision the nature of communication problems. What is called poor communication can be the result of many things, including poor timing (or tardiness), inaccuracy, lack of openness, and lack of skill in communication. Or an institution may lack a comprehensive system for providing fast, accurate, and welldispersed information. Further, poor communication might mean a lack of feedback or an administrative structure and process that communicates downward (too often or too little), but not upward. There might also be the sense that upward communication is taking place needlessly - in other words, that individuals are being asked to "jump through hoops" that do not result in action or reaction on the part of those higher in the organization.

It is a reasonable conjecture that many universities (and particularly their staffs and faculties) identify communication as a problem. Even so, when specific communication problems are linked to perceptible or resolvable difficulties, some action is called for. This chapter includes suggestions and recommendations to improve communication. In particular it suggests that communication at UNCW should be studied and that remedies, where appropriate, be applied.

In a discussion of the resources of the University, a distinction needs to be made between their mere availability and their effective allocation to the needs of the University. While nearly every section of this chapter includes resource wish lists, the underlying problem that is identified (in both this chapter and others) has to do with the effective allocation of resources by the administration. The perception that an administration is ineffective or unfair in the allocation of resources goes hand in hand with the identification of communication problems. Indeed, some of the analysis in this chapter has to do with how much input faculty have into the budgeting and fundraising processes, as well as how much is communicated generally about how the administration undertakes these processes.

Earlier chapters of this report attest to the reconfiguration of the planning process. Central to this change is the notion, often articulated by the Chancellor, that the planning process should bring in all elements of the University. Such an approach, if well conceived and implemented, can go a long way to resolving some of the problems identified in this chapter.

The University of North Carolina at Wilmington operates under a clearly defined hierarchal structure consistent with standard principles of organization with a chain of command and delegation of authority and responsibility. Although the organizational structure and administrative procedures appear appropriate for the allocation of resources in accomplishing the University's mission, a majority (52%) of faculty and a substantial minority (45%) of staff surveyed for the Self-Study believed that the administration does not allocate resources effectively. This issue deserves attention. It is unclear what the source of this perception is: whether it is perceptual, or attributable to a lack of responsiveness of the organizational structure, or based on differences in values of the various constituencies within the campus. Survey research might center on perceptions by the faculty and staff of the appropriate structure and procedures for resource allocation as well as their knowledge about the current and proposed links between budget and planning structures.

Suggestion:

The Chancellor should appoint an ad hoc committee to examine faculty and staff perceptions of the system for allocating the University's resources. The committee, which should include faculty, staff, the University planning officer, the Vice-Chancellor for Business Affairs, and members of the University Planning Committee, should address resource allocation in terms of both its content and the perception of its effectiveness and fairness.

Organizational charts of the administrative structure and statements of the duties and responsibilities of the Chancellor and his chief administrative officers are published in the Faculty Handbook. All new faculty members receive a copy of this handbook through the offices of their deans. New staff members receive an orientation through the Department of Human Resources. In addition, a Manual of Administrative Procedures is distributed to all department heads and periodically updated. Eighty-five percent of faculty and staff expressing opinions in the survey concurred that UNCW policies are published and accessible.

Although the staff agreed that there were adequate means of communication about policies and procedures, there was substantial unease concerning communication in general. Of the staff expressing an opinion on their survey, a majority (66%) disagreed with the statement that "the administration has an effective communication system." Furthermore, a majority (61%) disagreed with the statement that "responsibilities of UNCW's leaders are communicated to the staff." Again the question arises as to whether the perception of poor effectiveness in communication results from the actual structure of communication and its dissemination, the knowledge of the staff concerning channels of communication, or the belief systems of the survey respondents. Whatever their source, the strength of staff response to these items indicates that these issues deserve attention.

When organizational and administrative changes occur, announcements of such changes are sent to key campus administrators, including directors, deans, department chairs, and vice chancellors. Directors, deans, and chairs in turn are expected to inform faculty and staff of these changes. In addition, information concerning such changes is presented by the Chancellor to the faculty, through the Faculty Senate, on a monthly basis. The in-house publication, Campus Communiqué, provides for further distribution of information to all faculty and staff. Finally, major changes are communicated by memo directly to all faculty and staff. The University's avenues of communication appear to be adequate and effective.

The selection procedures of the chief executive officer and administrative officials directly responsible to him are appropriate to insure that candidates are well qualified in terms of training and experience for their positions. The Office of Federal Compliance maintains a file of regulations and policies about hiring procedures to assure nondiscriminatory hiring of administrators and all other personnel. This office is charged with overseeing the process of hiring all employees. The hiring process and position qualifications of administrators are outlined in the Faculty Handbook.

Administrative positions are advertised nationally, and all applications are screened initially by a University search committee. Finalists for a position are invited to the campus for extensive interviews, and further checking of references and verification of credentials precede final selection. Of those expressing opinions in the surveys, 70% of the faculty and 80% of the staff agreed that UNCW administrators possessed appropriate competence and credentials. Since 1989, all administrative officials have been formally evaluated by the faculty on an annual basis. . However, only 18% of faculty expressing an opinion agreed that the institution has effective methods for evaluating administrators. In a like manner, of the staff expressing an opinion, a minority (31%) agreed that "UNCW has an effective method for evaluating administrators." Although the faculty evaluation of administrators is in place, there still remains a level of employee concern that is worthy of attention. Again the problem may exist in one of three areas. First, there may be some employees ignorant of the evaluation procedures in use. Second, employees may feel that evaluation results are not being used to effect change, and finally, the current system may be one with which employees disagree. Surveys of administrators, faculty, and non-administrative staff might be helpful to determine both knowledge and perceptions. This would be a first step in the consideration of whether changes in the evaluation system are in order.

An examination of such official documents of the University as the Faculty Handbook as well as the Undergraduate Catalogue and the Graduate Catalogue indicates that the name of the institution, the titles of administrative heads, the designations of administrative and academic divisions, the terms used to describe academic offerings and programs, and the names of the degrees awarded are accurate, descriptive, and appropriate. The titles of administrative positions are common to academic institutions in general. The names of all academic courses, programs, and degrees are the result of input from faculty committees and the Faculty Senate.

The General Statutes of the State of North Carolina define the legal status of the Board of Governors as the policy-making body of the University of North Carolina, the official title of the state university system. General Statute 116-11(2) states the following provisions:

The Board of Governors shall be responsible for the general determination, control, supervision, management and governance of all affairs of the constituent institutions. For this purpose the Board may adopt such policies and regulations as it may deem wise.

The Board is composed of 32 members elected by the state legislature for eight-year overlapping terms. No member may serve more than two terms, and membership on the Board of both women and minorities is mandated. Members of the Board of Governors are selected for their interest in, and their ability to contribute to, the purposes of the Board of Governors.

The duties of the Board of Governors as detailed in The Code of the Board of Governors (pages 7-8) include:

There are five standing committees of the Board whose duties are prescribed by The Code of the Board of Governors (pages 8-10): the Committee on Budget and Finance; the Committee on Educational Planning, Policies and Programs; the Committee on Personnel and Tenure; and the Committee on University Governance.

The Board of Governors meets monthly, and its agenda is published in advance of each meeting. The Board also publishes a quarterly bulletin summarizing actions taken and highlighting special programs, policies, and events. Members of the Board make periodic visits to the constituent campuses to provide on-site contact with the various faculties, students, and support personnel.

Only the President reports directly to the Board of Governors. He is responsible for presenting all recommendations coming through the University system to the Board. The faculty of a constituent institution has access to the Board of Governors through the President.

The only agency within the state of North Carolina that has review powers over the Board of Governors is the Advisory Budget Commission, which may initiate or reverse actions of the Board through budgetary decisions and constraints. The only provision in The Code for removal of board members is in the case when a member misses four consecutive meetings. At that point his or her seat is considered vacant.

In another reference to governance, General Statute 116-11(14) provides as follows:

The Board of Governors may delegate any part of its authority over the affairs of any institution to the Board of Trustees or, through the President, to the chancellor of the institution in any case where such delegation appears necessary or prudent to enable the institution to function in a proper and expeditious manner.

. . . each constituent institution shall have a Board of Trustees composed of thirteen persons, chosen as follows:

Members may serve two consecutive four-year terms and may be reappointed or elected after one year off the Board. No one may serve simultaneously on the Board of Governors and the Board of Trustees. No state employee or member of the state legislature, spouse of a state employee, or legislator may serve on a Board of Trustees. The terms of the Board members overlap to preserve continuity. Meetings are held in February, April, July, September, and November.

Within the above legal framework, the Board of Governors, exercising its discretionary authority, designates the following powers and duties of the Boards of Trustees of the constituent institutions:

Each Board of Trustees shall promote the sound development of its institution within the functions prescribed for it, helping it to serve the people of the State in a way that will complement the activities of the other institutions and aiding it to perform at a high level of excellence in every area of endeavor. Each Board of Trustees shall serve as advisor to the Board of Governors on matters pertaining to its institution and shall also serve as advisor to the Chancellor concerning the management and development of the institution.

Each Board of Trustees shall have such other powers and duties, not inconsistent with other provisions of this Code or with applicable provisions of State law, as shall be defined and delegated by the Board of Governors.

(The above provisions appear in section 403A and 403B of chapter IV of The Code of the Board of Governors.)

North Carolina General Statue 116-33 calls upon each board of trustees "to promote sound development of the institution within the functions prescribed for it, helping it to serve the State in a way that will complement the activities of the other institutions and aiding it to perform at a higher level of excellence in every area of endeavor. Each board shall serve as advisor to the Board of Governors on matters pertaining to the institutions and shall serve as advisor to the chancellor concerning the management and development of the institution." The ability of each board to meet these responsibilities would be enhanced if its membership included not only the elected student body president, but also the elected faculty president.

This University has stated in its mission statement its commitment to public service through assisting with the improvement of public school education and enhancing the personal, cultural, and economic health of the region. There are and will be regional leaders, including alumni, who would be valuable trustees but who are otherwise disqualified from service by the current language of General Statue 116-31, which prohibits state employees and their spouses from serving on any boards of trustees.

For the purpose of carrying out its responsibilities, the Board of Trustees is organized into five committees: the Executive Committee, the Academic Affairs Committee, the Advancement Committee, the Business Affairs Committee, and the Student Affairs Committee.

Both The Code of the Board of Governors and the By-Laws of the Board of Trustees make it clear that official action of these boards may be taken only in official meetings involving a duly constituted quorum.

Operational guidelines for the Board of Trustees are specified in the Procedural Policies of the Board of Trustees. Included in this document are the delegations of authority from the Board of Governors to the Board of Trustees.

The Code of the Board of Governors, consistent with statutory provisions, addresses such matters as the composition and method of selection of members, length of service, rotation policies, organization and committee structure, and frequency of meetings. Continuity in the board membership is provided through staggered terms of office. Removal from office for cause is also addressed. In addition to chapter IV of The Code of the Board of Governors, the By-Laws of the Board of Trustees also address these matters.

Under powers and duties delegated by the Board of Governors to the Board of Trustees, the responsibilities of the Board of Trustees include formulating broad institutional policies, securing financial resources to support adequately institutional goals, and selecting the chief executive officer.

To assure that the Board of Trustees is adequately informed about the financial condition and stability of the institution, the Appendix to The Code of the Board of Governors includes the following statement:

The Board of Trustees shall advise the Chancellor with respect to the development of budget estimates for the institution and with respect to the execution and administration of the budget of the constituent institution, as approved by the General Assembly and the Board of Governors. [36]

Section 502C of The Code, which addresses the relation of the Chancellor to the governing board, requires the Chancellor to provide the Board of Trustees with a detailed report on institutional operations, as well as other reports that may be requested by the Board of Trustees. The Board of Trustees receives annually a copy of the audit of the institution that is required under North Carolina law. The audit establishes the financial stability of the institution.

Neither the Board of Governors nor the Board of Trustees has adopted policies directly addressing the protection of the governing board and the administration from undue pressure from political, religious, or other external bodies. However, General Statute 116-7(a) contains the following provisions:

All members of the Board of Governors shall be selected for their interest in, and their ability to contribute to the fulfillment of, the purposes of the Board of Governors, and all members shall be deemed members-at-large, charged with the responsibility of serving the best interests of the whole State. In electing members, the objective shall be to obtain the services of the best qualified citizens of the State, taking into consideration the need for representation on the Board by the different races, sexes, and political parties.

These criteria are followed by the Governor and the Board of Governors in their appointment of members of the Board of Trustees.

There is a clear distinction, in writing and in practice, between the policymaking functions of the Board of Trustees and the responsibility of the administration and faculty to administer and implement policy. Section 502C of The Code addresses the relation of the Chancellor to the Board of Trustees and contains the following statements:

Additional support for this distinction is found in the Faculty Governance document, which is published in the Faculty Handbook.

The governing board of the University of North Carolina system does not employ lay advisory committees in guiding its constituent institutions.

The University provides every faculty member with a copy of the Faculty Handbook. The handbook was last revised in April 1989 by a faculty and administrative committee. Section 2 contains adequate information on the administrative structure, description of the duties of the administrative officers, and an abbreviated copy of the organizational chart. Other sections contain various administrative procedures and regulations. Most importantly the handbook includes: copies of chapter 6 of The Code of the Board of Governors, which outlines regulations on academic freedom and tenure; a copy of the criteria for reappointment, promotion, and tenure; and a copy of the UNCW Policies on Academic Freedom and Tenure. Together, these documents provide a comprehensive statement of procedures and criteria involved in reappointment, promotion, tenure, and dismissal. There is no regular schedule for revising the Faculty Handbook. However, revisions are made on an ad hoc basis. The Provost's office, which is charged with making handbook revisions, reviews the need for changes.

Among other materials in the Faculty Handbook are policies on equal employment opportunity, sexual harassment, drug use, and AIDS. Faculty are also provided a complete copy of The Code. The Office of the Provost, the Office of Federal Compliance, and the Office of Research Administration have more complete copies of federal, state, and University statutes, regulations and policies which are necessary for faculty performance of duties. The staff members, subject to the State Personnel Act, are supplied with copies of Working for North Carolina: State Employees Handbook. This 48-page publication gives an overview of employment conditions, rights, and benefits. Employees are directed to their supervisor for further information. The UNCW Department of Human Resources maintains copies of very complete regulations concerning University personnel policies. Each agency and department possesses a copy of the manual of Administrative Procedures. This document is in a loose-leaf binder, which allows for easy updating. Thus, staff and faculty have access to most daily operational procedures. In addition, all employees are provided with brochures outlining health and all other benefit packages. The Self-Study Surveys indicate that only 10.7% of the faculty and 11.2% of the staff who responded disagreed with the statement that "the official policies of the University are published and accessible."

There are no off-campus units of UNCW that require separately accredited status.

The University is organized along functional lines. The major divisions (Academic Affairs, Student Affairs, Business Affairs, Advancement, and Public Service) are each given designated functions which represent the various aspects of support for the University's mission. Interdivisional coordination is developed through the Chancellor's office and the meetings of the Administrative Cabinet and of the three advisory committees of faculty, students, and staff. Thus, informal communication is fostered across constituencies. The Chancellor and the vice chancellors convene a number of ad hoc and standing committees which have broad representations of faculty, students, and administrators. The Faculty Senate standing and ad hoc committees contain not only faculty and academic administrative members but also representatives of students and staff from divisions outside of Academic Affairs. The Planning Committee also has representatives from all University divisions. Thus, although the organization follows a traditional functional structure, the committees and project teams allow for cross-divisional problem solving. Furthermore, the reorganized Planning Committee allows for a campus-wide planning process.

The University maintains organizational charts which delineate unit responsibilities. Specifically, section 2 of the Faculty Handbook contains abbreviated organizational charts, and the UNCW Department of Human Resources and the Provost's Office maintain updated organization charges listing every position on campus and the lines of authority associated with each position. As noted elsewhere, each academic unit and department has developed its mission statement in accordance with the institution's overall mission statement.

UNCW's program of institutional advancement has seen considerable maturation in the decade since the University was last accredited. Two of the most important events in that process were the creation of the position of Vice Chancellor for University Advancement and the establishment of the Faculty Senate Committee on University Advancement. The initiation of a full-fledged advancement program was in fact the top recommendation of UNCW's last Self-Study. The Division of University Advancement includes programs in development and fundraising, institutional relations, and alumni affairs. It is not clear at this point in the history of both the University and the Division whether the Division's programs have the support of all the various campus constituencies, including the Board of Trustees, administration, faculty, staff, students, friends, and alumni - and whether the programs under the advancement rubric relate directly to the purposes of the institution. In the Self-Study Survey, nearly half of UNCW's -faculty (49%) disagreed (only 14% agreed) with the notion that the interests and input of all segments of the University community are well represented in the fundraising efforts of the Office of University Advancement. Further, the University has just begun its second consecutive academic year without a permanent Vice Chancellor for University Advancement. A search during academic year 1990-91 did not yield a new Vice Chancellor, and the search continues during 1991-92.

Several recent positive steps toward achieving direct support from the University's various constituencies are: (1) the creation of a University Advancement Committee of the Board of Trustees, (2) a renewed search (involving a professional search firm) for a person to fill the vacant position of Vice Chancellor for University Advancement, (3) development of a comprehensive "needs" list (incorporating campus-wide input), (4) the imminent launching of a major fundraising effort, and (5) the Chancellor's commitment to widespread input into the planning and advancement processes.

According to its own unit report, the Division of University Advancement has the stated purpose:

. . . to devise and achieve the necessary means to provide the University of North Carolina at Wilmington with resources from the public and private sector (other than appropriated funds). This is accomplished by identification of the resources necessary for the development and maintenance of academic, research and service programs that are responsive to the needs of the citizenry. University Advancement has developed programs that generate understanding and support for overall University needs.

The Self-Study Survey of Faculty demonstrated concern about whether Advancement can achieve its stated purpose and whether it generates "understanding and supportof overall University needs." Only 16% of the faculty were satisfied with faculty involvement with University Advancement procedures and policies (52% were dissatisfied). An even smaller number (12%) of the faculty viewed the fundraising programs of University Advancement as effective, with 44% viewing them as ineffective. Further, it is uncertain whether the stated purpose of the Division is in keeping with the complete involvement of the various segments of the University's community. And while the Office of University Advancement has seasoned, talented, and qualified professionals, it needs a cohesive and goal-directed umbrella under which to function.

Suggestion:

The Chancellor should initiate action to assure that the programs in UNCW's Division of University Advancement have the full support of the faculty, students, staff, trustees, administration, friends, and alumni. Particularly, he should make every effort to appoint a Vice Chancellor for University Advancement who understands the viewpoints of the varied campus constituencies, and who is willing to make sure that the UNCW's advancement effort coheres with its mission, goals, and purpose. Special emphasis should be placed on greater faculty participation in the advancement process, with a proportionally more significant role delegated to the Faculty Senate's University Advancement Committee. The Vice Chancellor for University Advancement should, in consultation with the Chancellor, the Faculty Senate Advancement Committee, and the University Planning Committee, draft a Statement of Purpose for the Division of University Advancement, a statement consistent with the University's mission.

The UNCW Alumni Association, through its involvement with alumni, hopes to further the mission and goals of the University. Through its publication, UNCW Magazine, alumni are kept informed about University activities. Through its fundraising efforts, support is provided for scholarships, student groups, the Library, and athletics.

The Alumni Association's Bylaws state that the purpose of the association includes aiding and assisting the University through such projects and undertakings as the Association pursues. Because the Alumni can create a vital link between the University and its graduates, it would be desirable for this purpose statement to be broadened to include the broader potential relationship between alumni and the institution.

Defining the roles of the various programs under University Advancement would have the effect of allowing every program to contribute to a cohesive advancement effort. Until such a time as the Division of University Advancement begins to be guided by the previous suggestion, it will be difficult to either discern or measure the degree to which any program, including the UNCW Alumni Association, is able to encourage former students to continue to participate in the growth and development of the institution, and whether the Association can assist in the evaluation of institutional effectiveness. It would be helpful to departments and programs within the University if they could receive direct feedback from alumni about the University's ability to prepare its graduates for work, as well as about the kind of relationship they would like to have with the University. The latter is especially important, because the University's academic programs may at some point depend to a considerable degree upon support of alumni, and Advancement may want to target specific academic needs to the willingness of alumni to support them.

UNCW has been successful at gathering data about the careers of its graduates and the relationship of those careers to the goals that the institution has set for itself. The Office of Institutional Research performed a comprehensive survey of 1988-89 graduates, which obtained specific information about the value of the University's various curricula, as well as about the relationship of specific courses and requirements to success in attaining career goals. That survey includes data about the employment and additional education of alumni. Additionally and importantly, the survey presents the collective evaluation of courses and of the educational program at UNCW. With regard to the latter, the survey provides valuable information about the progress students feel they made in their general education. This is particularly helpful in assessing the Basic Studies program and yields information about the ability of the institution to attain its educational mission. The Office of Institutional Research performs this survey annually and will also conduct 5-year and 10-year follow-ups.

Publications produced and distributed by UNCW satisfy reasonable goals, including the responsible representation of the University in all published advertisements, recruitment media, curriculum descriptions, and published academic requirements. The Graduate Catalogue and the Undergraduate Catalogue both represent with accuracy and integrity the accreditation status of the University. The form and content of public information released by University Advancement's University News Bureau are consistent with accepted standards of public-relations practice. The University Publications Office publishes under one cover the "Guide to Producing Publications," "Guide to Dissemination of News," and "University Manual of Style." Additionally, all publications produced and distributed by the University must adhere to rigorous state guidelines.

UNCW is a constituent institution of the University of North Carolina system. The system consists of 16 publicly supported separate institutions of higher education with separate Boards of Trustees. The system's Board of Governors controls tuition rates, mandatory student fees, and growth at each institution. The system has a central administrative staff and a President. The chancellors at each constituent institution report directly to the system President. The system's Board of Governors and President act as liaisons to the state legislature and each constituent institution. Since the major portion of funding at each institution comes from state appropriations and receipts controlled by the system, it is imperative that the relationship of each constituent institution to the system and the legislature be understood.

Currently, UNCW is funded by the state of North Carolina as a Comprehensive Level I institution. Faculty positions are funded at a student/teacher ratio of 16.4 to 1. The education and general (E&G) operating budget for 1990-91 is approximately $46 million. As a state institution, UNCW is audited annually by the State Auditor's Office. The audit report is filed with the Office of the Governor, the State Comptroller's Office, the State Budget Office, the General Administration of the UNC system, and appropriate federal agencies. Upon receipt, a copy of the audit is distributed to each member of the UNCW Board of Trustees.

Tables 6.1, 6.2, and 6.3 present financial data for UNCW over the past five years. These tables illustrate the University's growth over the period and provide analytical data. Table 6.1 gives education and general (E&G) revenue sources by state appropriations; tuition and fees; federal contracts and grants; state contracts and grants; private gifts, contracts, and grants; and investment income.

Table 6.2 is a summary of education and general expenditures per FIFE student from 1985 through 1990 compared to SACS Level-III data for institutions with enrollments between 5,001 and 10,000. These data show that UNCW is above Q2 for total E&G expenditures per FTE. Additionally, UNCW is above Q3 level for instruction, research, libraries, and institutional support. Academic support and public service are the only categories that fall below the Q 1 level.

Table 6.3 shows E&G expenditures by category as a percent of total E&G expenditures compared to data from the SACS Level-III survey. Comparing these data with SACS data shows the relative emphasis compared to other institutions. By trending the data over five years, shifts in emphasis can be determined.

Funding for UNCW is adequate to support the programs offered. Although scholarship spending is lower than Q2, as shown in Table 6.2, this is likely due to the

relatively low cost of attending UNCW. Academic support falls below the 01 level in the 1986 data comparison. However, academic support has increased 56.7% from 1986 to 1990, as compared to a 25.3% increase for overall E&G expenditures per FTE. Therefore, the allocation deficiency has been rectified. Similarly, public service funding has increased 1.35% over the five-year period, and it was likely above the Q2 level in 1990.

Table 6.3 shows that UNCW exceeds median funding in the categories of instruction, research, libraries, and institutional support. The trend data indicate an appropriate shift of funding from institutional support to other categories. Generally, Table 6.3 indicates that the primary missions of instruction, public service, and research are receiving an appropriate share of the available funding. Although UNCW continues to be a very affordable institution of higher education for North Carolina residents, a disturbing trend is illustrated by data in Table 6.1, which shows an erosion of state-appropriated support. In 1985-86, state appropriations accounted for 71.6% of E&G expenditures. In 1989-90, this support had dropped to 68.34%. An additional decline in state-appropriated support as a percent of E&G expenditures was anticipated in 1990-91. During the same period, tuition and fees increased as a percent of E&G expenditures from 16.44% to 18.73%. In order to ensure access to the University, student tuition and fees must be held to a minimum.

Additional analysis of data in Table 6.1 indicates the percentage of endowment income has dropped over the same five-year period. These trends should be stopped and reversed: A capital campaign should be launched in 1991-92 to secure additional gifts to increase private support of our educational mission. Endowment growth needs to be increased to support at least one percent of E&G expenditures by soliciting additional gifts. Funding alternatives within current University resources need to be sought to replace relative losses in state appropriations.

The Chief Financial Officer at UNCW is the Vice Chancellor for Business Affairs (VCBA), who reports directly to the Chancellor. The VCBA is responsible for all financial activities of the University, including physical-plant maintenance and operations, all operations of auxiliary enterprises, human resources, custody and care of assets, insurance, public safety, purchasing, telecommunications, and internal audit. In order to limit the span of supervision, the various responsibilities of the VCBA are divided by function into five units. These five units report directly to the VCBA. Figure 6.1 shows the organization of Business Affairs by function within each unit.

The VCBA. manages the University's financial resources and ensures that those resources are effectively utilized to meet the goals of the University as set by the Chancellor and his cabinet. Financial concerns are reported weekly to the Chancellor, and monthly financial reports are provided to all account managers, senior officers, and the Chancellor. Additionally, the VCBA. reports quarterly to the Board of Trustees on financial matters and prepares for the Chancellor an annual financial report, which is provided to the Board of Trustees and the UNC General

Administration. The VCBA serves as an ex-officio member of the Endowment Board and as Treasurer of the Foundation Board. The current Vice Chancellor has served in that position since 1985 and has over 20 years experience in university business administration. He also serves on several national professional boards. The VCBA meets weekly with staff to provide open communications and personal assistance to unit managers. These meetings ensure that the VCBA and staff are informed on matters affecting Business Affairs and provide a vehicle for dissemination of information regarding concerns of the Chancellor, the cabinet, and the faculty. The VCBA is evaluated annually by the faculty and the Chancellor. These evaluations provide feedback to the VCBA and are used as a positive force for change within the operations of Business Affairs. The VCBA serves on several faculty committees including the Faculty Budget Committee, the Building and Grounds Committee, the Faculty Welfare Committee, and the Bookstore Committee. The organizational structure in Business Affairs has evolved to its present state to allow the VCBA flexibility to perform the primary function of a coordinator with various facets of the University community outside of Business Affairs, and to ensure that concerns and needs of these various University components receive the attention warranted within the operations of the Business Affairs Division. Various committees have been formed by Business Affairs to provide advice and to study various functional activities managed by Business Affairs. Examples of such committees are the Food Services Committee, the Housing and Food Services Advisory Board, the Human Relations Committee, the Employee Performance Advisory Committee, the Employee Grievance Committee, and the Safety Committee.

Evaluation of the effectiveness of Business Affairs is best measured by accomplishments and results achieved. During the 1980's the following tangible achievements are documented:

On an annual basis, the constituent institutions of the UNC system may receive additional funding based on the Board of Governor's projections of enrollment growth. After the designation of the amounts and purposes of these funds is communicated to the University, usually in July, these new funds are added to the UNCW operating budget. The various approved departmental requests may then be compared to the new UNCW operating budget so that final allocations can be made to the departments. Also, during this point in the budget process, reallocation of funds from one departmental budget to another may occur, if requested by the senior officers.

The Budget Office has the responsibility of reconciling and monitoring the approved departmental budgets to the new UNCW operating budget. The total UNCW operating budget for any one fiscal year may be best described as the sum of the state budget and any other revisions which are approved by the Office of State Budget Management (OSBM) that apply to that fiscal year. The state budget has two primary components: the continuation budget, which provides for the continuing level of service for existing programs; and the change budget, which is composed of the expansion budget for current operations and the capital-improvement budget. The expansion budget provides for expansion of existing programs, new programs and salary increases, and benefits. The capital-improvement budget provides for construction, major repairs and maintenance, and land purchases. The state budget is enacted by the General Assembly during its regular session, and it is administered by the Governor over the two-year period, or biennium.

A flow chart showing the preparation of the state budget and the UNCW operating budget is presented in columns 1 and 2 of Figure 6.2. The two-year cycle begins when detailed instructions are received for the next biennium's continuation budget in August of even-numbered years. To start the University process, the Assistant Vice Chancellor for Business Affairs-Finance requests from the appropriate departmental budget authorities or senior officers equipment lists and information on projected costs of such items as utilities, maintenance contracts, postage, insurance, one-time facilities, and any other requirements. After this information is received, Budget Office personnel use this feedback as well as information about allowable inflationary cost factors provided in the instructions to develop proposed increase or decrease adjustments to the Continuation Budget. These adjustments are keyed into the OBSM Automated Budget Preparation System (BPS). Discussions with OSMB budget analysts and the Assistant Vice Chancellor for Business Affairs-Finance result in a final worksheet. This worksheet - providing data for the year just ended, the current authorized year, and the two years of the next biennium - plus all supporting schedules (such as equipment purchase, motor vehicle purchase, and personnel) and narrative explanations are submitted to the UNC General Administration in September for their submission to the State Budget Office in the same month.

Instructions for preparation of the change budget are received in August of even-numbered years. The Vice Chancellor for Business Affairs and the Associate Vice Chancellor prepare the capital-improvements request. The planning process which results in the Facilities Master Plan, outlined in detail on page 372, is the basis for this budget request.

The Assistant Vice Chancellor for Business Affairs-Finance organizes and coordinates the preparation of the expansion-budget request for current operations with the senior officers. The Chancellor and the vice chancellors of each division gather as much input as possible from the deans, department heads, members of the faculty and administration, and representatives of the Business Office. This is done through both direct inquiries and the departmental budget process previously described.

The planning and development of academic programs by Academic Affairs is another formal annual planning process. In this process, faculty, department heads, deans, and the Provost's Office formally solicit General Administration's approval to plan a new academic program. After receiving permission to plan, this group submits the plan for General Administration's approval. If approved, resources required to fund new programs are estimated, and this information is presented to the Provost.

The senior officers then develop University priorities for institutional enhancement, enrollment change, or any other scheduled priorities outlined in the Instructions for Preparation. Decisions are made on requests to be presented to General Administration. Narratives, with related schedules organized by state budget subheads, are prepared by appropriate areas, justifying the requests for funds other than those from enrollment changes. Final requests are compiled by the Assistant Vice Chancellor for Business Affairs-Finance and the Budget Office and are submitted to General Administration for review in December.

Following review by General Administration and the Board of Governors, the continuation and change budgets are sent to the Office of State Budget Management in January. OSBM's staff and the Governor usually meet to finalize the economic forecast and make final decisions on the primary components of the state budget (continuation and change). The Governor's amended final budget recommendations go to the General Assembly when it convenes in February.

The biennial budgets are adjusted in even-numbered years, during the short session of the General Assembly. Current state budget conditions and priorities are carefully evaluated at this time and significantly impact allocation decisions regarding what was originally requested for the second year, including any changes since the original request.

Following the completion of the regular session of the General Assembly (usually in April) where the review, amendment, and approval of the biennial budgets take place, OSBM certifies the approved continuation budget to UNCW via the BC 307 document, and the legislature sends approved change-budget allocations to General Administration. The change-budget allocations are subsequently reported to UNCW via approved BD 606 forms and become a part of the UNCW operating budget.

In the Self-Study Surveys, only 25 % of the faculty and 40% of the administrative staff expressed an understanding of the process involved in developing the overall University budget. Only 13% of the faculty felt that they had adequate influence in the process.

These results indicate a need to increase communication regarding the University's budget process among the senior-officer levels and the faculty and administrative staff and to increase the faculty's sense of involvement and influence over the entire budget process

The Chancellor's cabinet should maintain and publish annually a list of University budget priorities and distribute it to the campus community.

Suggestion:

Another way to increase the faculty and staffs understanding of the University budget process would be to place on Library reserve a copy of the Procedures Manual of UNCW's Office of Systems and Budget, which outlines the University's budget process. Also, additional information about the University's budget process could be provided by financial-services personnel through workshops. The Office of Business Affairs should also continue to use advances in computer technology to handle the University's budget process more effectively and efficiently.

Consistent with UNCW's operating budget and subdivision into departmental budgets, the system of budgetary control ensures that the budgetary plans of the Board of Governors and the Chancellor are carried out.

Budget control has been delegated by the Vice Chancellor for Business Affairs to the Assistant Vice Chancellor for Business Affairs-Finance. Budget-allocation figures are distributed to departmental budget authorities as they are funded. Expenditures for non-personnel items must be approved by departmental managers. The appropriate Business Affairs personnel review each requested expenditure to determine the propriety of the request and the availability of funds.

Transaction ledgers, summarizing all financial activity for the month and showing year-to-date totals for expenditures, encumbrances, and available budget balances are provided monthly to each departmental manager. The senior officers, deans, and assistant vice chancellors also receive summary reports of available budget balances each month for all departments that report to them.

UNCW's electronic requisitioning system will not allow a department to create a purchase requisition without sufficient budget balances available. This feature is effective, as most of the University's spending is done through the automated purchasing system.

Additional budgetary control is provided by the University's automated budget-monitoring system, which produces over commitment-notice letters that are sent to departmental budget authorities at the end of the month following any overspending of any individual object-code budgets. This might occur following the processing of manual checks, interdepartmental invoices, decentralized charges, or temporary payroll. The notices direct department heads to correct the overcommitment by requesting a budget revision, a journal entry to move charges, or a purchase-order-change order. The General Fund portion of the UNCW operating budget is appropriated by purpose and by line item. Revisions to the budget, as appropriated, must be approved by OSBM. Generally, the Division will not allow the movement of funds from salary-related to non-salary-related line items or the movement of funds from instructional to non-instructional purposes. When revisions to the UNCW operating budget becomes necessary, they are promptly prepared by the Budget Office and submitted in writing and justified on Form BD 606. If a departmental manager simply requires a transfer of funds from one nonsalary-related line item to another, this can usually be done internally by the Budget Office with an internal budget revision, which does not require OSBM approval. All approved revisions are reflected on the monthly reports.

As reflected in annual audits, budget control at UNCW functions well. No audit exceptions have been taken on budget items. Generally speaking, departments are able to make most reasonable budget revisions. The personnel of the Financial Services Division constantly strive to assist and educate users on how to read and interpret monthly reports and provide other requested assistance.

The state of North Carolina, through its laws and budgetary process, provides 87% of the University's funding for education and several other purposes. Consequently, the degree of control exercised by the state and its ability to modify its funding during recessionary periods greatly affect UNCW's ability to deliver services.

University budgets are appropriated by purpose and by line item within each purpose. Within each purpose the University has flexibility to adjust non-personnel line items, with the exception of library books and utilities. Movement between purposes or between non-personnel and personnel line items requires approval of the State Budget Office. Generally, the State Budget Office will not allow such reallocations unless justified by some rare occurrence, such as the settlement of a law suit. Although the state system of control can be cumbersome, state budgetary control usually does not hinder UNCW from accomplishing its various missions.

Currently, and during the past two years, the state has experienced shortfalls in projected revenue collections. The cumulative effects of these shortfalls have included changes to the student/teacher ratio, a loss of positions, and decreased operating funds. The process of budget cutting used by the state legislature can be capricious and creates confusion and uncertainty within the University community.

Due to the severity and length of the current recession in North Carolina, the Governor, the State Budget Division, and the legislature are considering new and more manageable methods of controlling budgets. Unfortunately, much damage has already been done to employee and student morale as a result of current and anticipated budget cuts. It is hoped that the University can survive these lean times. The University should receive lump-sum allocations from the state and be allowed to use the funds allocated in the most efficient manner as determined by the institution itself. Unused appropriations should become the property of the University.

The UNCW accounting system follows generally accepted principles of institutional accounting as they appear in "College and University Business Administration," published by the National Association of College and University Business Officers. Monthly, quarterly, and annual financial reports are prepared by the Accounting Office for the Chancellor, senior officers, University departments, state and federal agencies, and the UNCW Board of Trustees. Annual audits are conducted by the State Auditor's Office under the guidelines of "Audits of Colleges and Universities," published by the American Institute of Certified Public Accountants. Annual audit reports over the past ten years have rendered unqualified opinions. The Office of Internal Audit at UNCW provides independent control and appraisal of the fiscal and administrative operations of the University.

The combination of experienced accounting personnel and the capabilities of the financial-records system provides accurate and timely financial data to University departments. Many specialized reports tailored to individual departmental needs are prepared on an ad-hoc basis by financial-services personnel.

The Accounting Office conducts various workshops for University departments to enhance their understanding and interpretation of financial data.

Advanced technology and innovative, goal-oriented personnel have allowed Accounting to serve the University departments with more useful and timely financial data. However, current state budgetary constraints have limited financial resources. A currently vacant position in Accounting has been frozen by the state. This vacancy limits ability to provide greater specialized reporting to University departments. The lack of financial resources has limited the purchase of Electronic Data Processing (EDP) equipment for enhanced reporting and additional much-needed office space.

The payroll unit of Accounting has little flexibility in the services it can offer UNCW employees since payrolls are not run by the University but by Central Payroll in Raleigh.

Purchasing and Warehouse Services are under the Director of Purchasing Services, who reports to the Assistant Vice Chancellor for Business Affairs-Business. Central Stores reports to the Director of Auxiliary Services, who answers to the same Assistant Vice Chancellor. Inventory Control is under the direction of the Director of Financial Reporting, who reports to the Assistant Vice Chancellor for Business Affairs-Finance.

Requisitions for goods and services not available through Central Stores are sent electronically to Purchasing Services. Upon receipt of the requisition, the purchasing agent determines if the items requested are on a State Term Contract. If so a purchase order is generated to that firm. If not, and the item is less than $10,000, the agent requests more descriptive information and/or specifications for the purpose of obtaining quotations. Upon receipt and evaluation of the quotations, a vendor is selected, and a purchase order is electronically issued. If the item costs more than $10,000, a requisition to State Purchase and Contract is mailed to Raleigh, where formal bids are obtained by the Purchase and Contract Division, returned to UNCW for evaluation and recommendation, certified by the State Board of Awards, and returned to UNCW for a purchase order to be generated.

Copies of all purchase orders which meet the fixed-asset criteria are forwarded to the Fixed Asset Accounting Clerk, who monitors and reports on fixed-asset activity. The University defines fixed assets as nonexpendable property costing $500 or more with a useful life of one year or more. Upon receipt of the equipment, the items are tagged and entered on the Fixed Asset System. Quarterly reports are prepared by Fixed Assets, from which entries are prepared to update the financial record, so that the two systems are in balance. Annually, each department head is sent a printout of all the equipment in that department for verification. Any unresolved items in this inventory report are reported to the department's appropriate vice chancellor. Also, during the year the Internal Audit Department on campus verifies several department fixed-asset inventories. This provides an additional check on the Fixed Asset System.

Departments wishing to purchase items available through Central Stores may do so electronically. The inventory is available on the VAX, and departments can immediately determine if the item is available and/or in stock. Using the same screen they can place the order. Deliveries are made by Central Stores personnel within four hours. Central Stores management works with Purchasing to determine which items are purchased repetitively and should be available through Central Stores. Departments are also encouraged to make requests to Central Stores to stock items as needed.

The Director of Purchasing Services has been delegated the responsibility of signing and maintaining the files of all contracts for service and maintenance, lease agreements, and minor construction.

Purchasing works closely with Project Design and Management in the preparation of bids for minor construction projects. Advertisements for bids are placed in the newspapers, specifications are prepared, bid packages are put together, and public bid openings are arranged. Successful bidders are awarded contracts.

Project coordinators for new buildings and renovations work closely with Purchasing in the design, layout, and selection of furnishings. Purchasing assists with the requisitioning and makes the procurement, keeping in mind the budget and installation limitations of each project.

Purchasing Services is able to provide the University with expertise in obtaining goods and services of the best quality and at the lowest prices within the legal boundaries set by the state of North Carolina. Those North Carolina regulations that govern state-contract purchases insure that no pressure from political or business interests is placed upon the institution.

A comprehensive collection of descriptive literature and catalogs on a wide range of materials and equipment is maintained. Up-to-date copies of Thomas Register, Industrial Directories, Wilmington City Directory, Sweet's Catalog File, and various annual buyers' guides are kept. The professional buyers keep abreast of state and University purchasing regulations, new products, and changes in the marketplace. New-product shows and professional-association meetings are attended by the purchasing agents.

The UNC system has established and published a policy for refunding tuition, fees, and charges to students. The University policy applies to all students and is published in the undergraduate and graduate catalogues. A copy of this published policy is attached as Figure 6.3. The current refund policy as published in the catalogues is adequate. It compares favorably to the refund policy of other institutions.

REFUNDS: TUITION

Students who officially withdraw from the University on or before the last day of the registration (Drop/Add) period will receive a refund of the amount paid.

Students withdrawing from the University after the Drop/Add period will be charged 10 percent of all semester charges for each week of classes that have been held that semester. This weekly charge begins with the first day of scheduled classes regardless of the actual date of enrollment.

No refunds will be made for withdrawals after the end of the ninth week of scheduled classes.

The refund policy applies to complete withdrawals from UNCW. Students who simply reduce their course load after the Drop/Add period will receive NO refund or reduction of fees whatsoever.

REFUNDS-FINANCIAL AID

Students who receive financial aid are not given refunds on financial aid received when charges are prorated due to withdrawal.

REFUNDS-HOUSING

Housing arrangements are effective for the full academic year. Agreements made subsequent to the beginning of the fall semester remain in effect until the close of the spring semester. Housing deposit and charges will not be refunded expect as provided for below:

New Students (Incoming Freshman and Transfers) - If a new student, after remitting the deposit and being accepted to on-campus housing, decides not to live on campus and gives notice of this decision in writing by May 15, 1991 in the case of application for the fall semester, or at least one month prior to the semester in case of the application for spring semester, the deposit shall be refunded less at $25.(10 administrative charge. Requests for refund received after May 15, 1991 will be denied and the $100.00 deposit forfeited. This condition also applies to students remitting the deposit and being accepted to on-campus housing after May 15, 1991.

Returning Students (students currently or previously enrolled at UNCW) - The $100.00 housing deposit is non-refundable to returning students after being accepted to on-campus housing. (Exceptions being marriage, transferring to another institution or withdrawal from UNCW - less $25.00 administrative fee). Notification must be received in the Housing Office, in writing, by May 15, 1991.
Room rent for either semester will not be refunded once a student officially moves into a residence Ball/apartment/suite.
A pro-rata refund of meal plan charges will be made to students who officially withdraw from the University.

Financial Services within the Office of Business Affairs has the responsibility for management of the cashiering function. Under Financial Services, the Cashier's Office is the centralized repository for receipting all funds to the University in accordance with the North Carolina Statute 147-77, North Carolina Budget Manual 5.1, and UNCW Administrative Procedures Manual CSH 1.10. These regulations govern the receipting, accountability, control, and depositing of funds by the University. All UNCW employees are covered under a blanket honesty bond.

All funds receipted at the Cashier's Office are deposited the following morning at a local bank (Wachovia Bank and Trust, N.A.) or the North Carolina State Treasury. The daily deposits are recorded, and certifications of deposit are prepared and sent to the State Treasurer's Office in Raleigh by courier mail. UNCW Campus Police transports the deposits to the local bank. Cash on hand is held in lockable money trays during regular working hours. During closed hours, all cash and cash equivalents are secured in the locked trays and located in a walk-in vault. The Cashier's Office is secured nightly with an alarm system.

Upon written consent from the Director of Accounting, certain departments are responsible for maintaining a receipting process consistent with University policy. Examples of such departments include the Office of Special Programs and the University Bookstore. All departments approved for receipting cash must adhere to a departmental record-keeping manual provided by Financial Services. Departments and activities of the University which have more than $30 in depositable currency and coin (including checks) must deposit funds daily and receipt the deposit in the Cashier's Office. Deposits of less than $30 must be receipted in the Cashier's Office at least once a week. All cash receipting outside the Cashier's Office goes through a verification and reconciliation process within Financial Services. All funds and procedures are subject to audit by authorized University personnel and the Office of the State Auditor.

Monies received in the Cashier's Office are recorded either through the general-ledger cash-receipting system or the Student Information System (SIS). Both systems require special operator numbers and passwords to safeguard access. All financial activity for students is receipted on the SIS system, which is an on-line real-time system. SIS receipts are consecutively numbered, assuring accountability for all receipts issued. Control reports are receipted through the cash-receipting system. The cash-receipting system is a subsystem of the Financial Records System (FRS).

All transactions are recorded through a batch process into FRS. University cash receipts are consecutively numbered in accordance with generally accepted accounting principles (GAAP). Cash-control reports are produced daily for cash verification.

The University Cashier's Office maintains a petty cash fund for use by all departments in accordance with UNCW Administrative Procedures Manual CSH 1.20. Individual reimbursement for petty cash expenditures may be obtained by submitting a properly prepared Petty Cash Reimbursement Request form. Ancillary petty cash funds may be authorized by Financial Services if activity warrants. Departments or activities authorized to maintain ancillary petty cash funds are responsible for safeguarding the fund, adhering to all policies and procedures for petty cash expenditures, reconciliation, and reimbursements. Petty cash funds are subject to periodic audit by University personnel and the Office of State Auditors.

The present cashiering function complies with the North Carolina State Statute 147-77, North Carolina Budget Manual 5.1, and UNCW Administrative Procedure Manual. While maintaining the accountability and control for receipting University funds, the Cashier's Office seeks to serve students, faculty, and staff in an efficient and professional manner. Faculty, staff, and student surveys each yielded a positive evaluation of the performance of the Cashier's Office. Fifty-seven percent of the students responding were satisfied with the Cashier's Office service; 65% of faculty and 78% of staff responded favorably.

The Cashier's Office is reviewed periodically by the UNCW Internal Audit Department and annually by the Office of the State Auditors.

In order to ensure that all cashiering functions continue with a high degree of accuracy and compliance to North Carolina guidelines, adequate resources are needed to maintain and acquire computer equipment. As the University has grown in student enrollment and University receipts have increased, the number of employees in the Cashier's Office has remained constant. Additional personnel would improve effectiveness in serving the University community.

UNCW has three types of investable funds: endowment principal, cash on deposit with the State Treasurer, and, from time to time, cash from construction loans. Investment of endowment funds is controlled by a separate Endowment Board appointed by the Board of Trustees pursuant to instructions contained in UNC General Administration Administrative Memorandum No. 93 dated October 28, 1977. UNCW is required to deposit practically all funds with the State Treasurer's Office. The investment of these funds is not under the control of UNCW or its Board of Trustees. Investment funds received from construction loans are usually limited by the loan agreement to government securities or commercial-bank certificates. Figure 6.4 is a copy of a resolution dated April 9, 1986, from the Board of Trustees authorizing the Vice Chancellor for Business Affairs and the Assistant Vice Chancellor for Business Affairs-Finance to invest University funds in bank certificates of deposit or in U.S. government securities or obligations.

Due to state laws, to UNC General Administration policies and procedures, and to other external factors, UNCW administrators have little flexibility in the investment of University assets. The only significant pool of investable University assets is under the control of the Endowment Board. There are no written instructions from the Board of Trustees to the Endowment Board regarding investment policies and guidelines.

The University has a comprehensive risk-management program. The Administrative Assistant to the Vice Chancellor for Business Affairs is responsible for administering the insurance and risk-management program for the University. Business Services is responsible for obtaining insurance coverage and responding to specific requests. The Director of Safety and the Chancellor's Safety Committee (which has existed since 1986) are charged annually with evaluating the campus, making recommendations for reducing risk, and improving safety. Within five years, a position should be created to manage the University's insurance program.

The following insurance protections are currently in place. Coverage is provided by the North Carolina Department of Insurance through independent insurance agents.

WHEREAS, R. O. Walton, Jr. is Vice Chancellor for Business Affairs and Timothy A. Jordan is Assistant Vice Chancellor for Business Affairs - Finance, and

WHEREAS, the positions of Vice Chancellor for Business Affairs and Assistant Vice Chancellor for Business Affairs - Finance require the authority to invest University funds,

THEREFORE BE IT RESOLVED, that R. O. Walton, Jr. and Timothy A. Jordan be authorized to invest available University funds. Said investments to be in bank Certificates of Deposit or in U. S. Government Securities or obligations.

Certified to be a true copy of the resolution passed by the Board of Trustees of The University of Worth Carolina at Wilmington, at the regular meeting held on April 9, 1986.

Catherine C. Burruss
Assistant Secretary
Board of Trustees
Dated: April 9, 1986

UNCW currently meets all of the minimum accreditation criteria of the Southern Association of Colleges and Schools pertaining to physical resources. Specifically, the physical resources of the University are adequate to serve the needs of the institution. Space allocated to the various institutional functions is also adequate. Existing facilities are reasonably well maintained, and the University adheres to an annually modified plan for the upkeep of its property. The University provides a safe and secure environment for the conduct of activities. The institution provides administrative responsibility for health and safety programs and maintains and regularly evaluates a comprehensive safety plan. Finally, the institution has a master plan which is periodically reviewed and updated.

The main campus of the University is situated on a 661-acre site midway between the Cape Fear River and the Atlantic Ocean. The University has a total of 77 buildings with a total gross space of 1,412,552 square feet. The average age of buildings is 13.7 years.

Academic buildings on campus total 15 in number with a gross square footage of 463,092 and an average age of 16.4 years. They include a total of 82 classrooms with 4,234 stations, 34 laboratories with 884 stations, and health and physical education training facilities. The academic buildings are generally located toward the western portion, or front, of the campus tract. They are of brick, modified Georgian design.

There are a total of 22 administrative and support facilities. Those located in the front portion of the campus are constructed of brick and are modified Georgian in design. However, many of the support facilities are pre-engineered metal buildings. These have been grouped into a support-services area in the southeastern portion of the campus.

The campus has facilities for housing 1,958 students. Student housing is located in the southeastern area of the campus. Housing areas contain integral playing fields for various sports including tennis, basketball, volleyball, and softball. These areas are interconnected with well-lit concrete walks and have adjacent parking facilities. The majority of the buildings are modern, simple designs with brick exteriors. The 13 apartments, however, are constructed of brick and siding exteriors. All units can accommodate handicapped residents and contain bathrooms.

The University's athletic facilities are located in the southwestern portion of the campus. In addition to those facilities listed below or previously described under the academic buildings are the following facilities: baseball, softball, and soccer fields and multi-use playing fields; a state-of-the-art track-and-field area with granulated rubber surface on asphalt base; tennis courts; and outdoor basketball courts. These playing areas are in addition to those located in the student housing area.

In addition, the University owns property in areas outside the main campus. The Kenan House (the Chancellor's residence) and its associated buildings and the Wise House and Apartment complex are located near downtown Wilmington. Four buildings which house the Center for Marine Science Research are located near Wrightsville Beach.

The existing physical resources range form barely adequate to adequate for meeting the University's mission given the present curriculum and student population. However, many of these resources are already stretched to capacity and beyond. The need for additional facilities is reflected in the results of the Self-Study Surveys, in which 48% of the faculty and 30% of the staff disagreed with the statement, "The physical resources, buildings, and equipment meet the needs of the University." Forecast increases in the student population and the implementation of planned curriculum expansion will require additional facilities. The campus has adequate undeveloped land to meet these needs.

The space allocated to the various institutional functions is adequate for the effective conduct of these functions. However, in certain areas effectiveness is severely restricted by the lack of additional space, and most departments have requested more classrooms and faculty offices. There is also a shortage of laboratory and storage space. Problems associated with space shortage are reflected in the Self Study Surveys, in which 42% of the faculty and 25% of the staff disagreed with the statement, "There is adequate space for University functions."

Management of the available space within the academic areas has been good, and plans have been made to shift allocations of space as new facilities become available. The construction in 1988 of a new building for the Cameron School of Business allowed the Department of Mathematical Science to move into Bear Hall, which had been vacated by the School of Business. The offices of the Dean of the Graduate School were also moved to Bear Hall. The humanities departments in Morton Hall were able to expand into the space previously occupied by Mathematical Sciences. Similarly, the Departments of Biological Sciences, Earth Sciences, Chemistry, and Physics will have their current space problems alleviated upon construction of the planned Physical Sciences Building. The Departments of Chemistry and Physics will move from DeLoach Hall into the new building, and Earth Sciences will move into DeLoach Hall. To date, only the architectural and engineering planning of the Physical Sciences Building has been funded, and this has taken place during the 1990-92 academic years. Unfortunately, the programs of these departments are currently limited by available space, and it may be three or more years before construction of the new building and the renovation of DeLoach Hall can be completed.

The need for a new Fine Arts facility has been apparent for many years, and the Department of Fine Arts has prepared a list of requirements for a new building. The present facilities are inadequate, both in terms of space and function. A Fine Arts Building is currently on the master plan as the next new academic building on the main campus after the Physical Sciences Building. Also under consideration is the addition of a new facility for the Center for Marine Science Research.

Completion of these planned facilities would relieve many of the space problems on campus and greatly enhance the overall mission of the University.

The area of greatest concern is availability of classroom, office, laboratory, and storage space, especially to meet anticipated needs for expansion.

It is especially important that the University increase staff support and funds for buildings, grounds, and equipment maintenance in proportion to the rate of campus expansion.

The primary goal of the Physical Plant Department is to provide maintenance and operations support for all University properties, including buildings and support equipment, grounds and paved areas, rolling stock, and utilities.

The Physical Plant Department uses a five-year plan to project resources. This plan is reviewed annually. The Physical Plant Department also does annual budget plans and a biannual expansion plan under the state's Biennium Budget system. Projects not funded through the annual budget are submitted as special projects for funding consideration. Special projects may include deferred maintenance items. The Maintenance and Operations Section also plans annually for the testing, calibration, and maintenance of three specific types of major equipment: chillers, boilers, and transformers. The Grounds Section prepares annual, seasonal, and weekly work plans. The results of their plans are reviewed annually. Housekeeping accomplishes the major portion of its planning during major breaks, when special cleaning projects can be accomplished.

The Physical Plant Department is located within the Business Affairs Division, and its Director reports directly to the Associate Vice Chancellor for Business Affairs. The department has 99 permanent personnel positions, one of which is arrived at by adding together two part-time positions. The Physical Plant Department is organized into four major sections: Administrative, Maintenance and Operations, Grounds, and Housekeeping.

The Administrative Section's main function is to provide administrative support to the entire Physical Plant Department. It provides routine administrative functions such as typing, filing, and receptionist duties. However, it also provides a range of other support tasks:

The Maintenance and Operations Section consists of six units: Heating, Ventilating and Air Conditioning (HAVC), Electrical, Painting, Carpentry, Locksmith, and Preventive Maintenance. The main purposes of this section are to provide maintenance and repair services to University buildings and equipment as required or requested; to promote the longevity of the facility, life safety, and personnel comfort; to operate the major building systems (heating, cooling, ventilating, electrical, water, and sewage); to promote energy conservation and safety; and to prolong the life and efficiency of operating equipment through preventive maintenance. Routine maintenance and repair work and minor renovations and alterations are accomplished in-house by the appropriate craft section upon receipt of a work order by that unit. Exceptions to this are elevators, fire alarm systems, pest control, and filter-media replacement. These have been contracted out based upon efficiency, technical-skill requirements, or economy. All buildings have separate heating and cooling systems. These are monitored at least once daily by two operating personnel assigned specifically to this task. Preventive maintenance is performed on all operating equipment annually by the Preventive Maintenance Unit, which operates from prepared checklists.

The purpose of the Housekeeping Section is to provide a clean, healthy, and safe environment. In addition to routine daily care and cleaning of all academic buildings, administrative offices, laboratories, the University Center, and the University Union, the section supports many special activities such as Parent's Day, the Azalea festival activities, and Commencement. The Housekeeping Section has maintained adequate standards of cleanliness throughout their assigned areas. This has been attested to during the various inspections conducted by state and local authorities. However, with the continued growth of facilities, the Housekeeping Section too is in need of additional personnel and updated equipment. Presently the ratio of floor space to housekeepers is 21,950 square feet of cleanable floor space per housekeeper.

The purpose of the Grounds Section is to maintain the University exterior grounds in a professional and pleasing manner. In addition, the Grounds Section provides automotive-maintenance services to the campus and operates the refueling facility. The Grounds Section is responsible for the maintenance of 335 acres of developed land and 225 acres of turfed areas and related irrigation systems, including two off-campus sites. It is also responsible for the maintenance and cleaning of seven miles of roads, 21 parking lots, and the entire storm-drainage system of the campus. The Grounds Section's fuel facility dispenses approximately 4,000 gallons of fuel each month and maintains 101 vehicles and 85 other assorted items of equipment.

The Grounds Section has seen a significant increase in responsibilities. Since 1980, developed areas have increased from 220 to 335 acres, and the included turfed area has increased from 115 to 225 acres. There has also been a concerted effort to bring color to the campus with flowered planting beds. During this same period, however, only one person was added to the grounds crew. Although there has been an increase in the quantity of equipment, additional personnel will be required in the future to maintain the condition of the grounds as the University continues to grow. Since 1983, the majority of the landscape design for new areas, as well as several irrigation systems, has been developed in-house by the grounds superintendent.

In 1986, a formal preventive-maintenance program was instituted and staffed with five personnel dedicated exclusively to preventive maintenance and separate from the crafts shops. This has been a significant step in prolonging the life cycle of operating equipment and helping to avoid breakdowns and resulting work orders.

Essentially the goal of this program is to provide scheduled preventive maintenance to all operating equipment at least annually, and more often if required.

Another significant innovation was the computerization in 1987 of the Physical Plant Department's work-order system and the related billing system. This action provided significant improvement in the initiation, monitoring, and processing of work orders and improved the accuracy and timeliness of billings to the customer. The system also provides for management reports and the accumulation of data about the history of facilities. Deferred maintenance is one of the reports generated and reviewed periodically. Funds are then sought for priority requirements through programs such as the annual Special Projects Program. The system also provides for the automatic generation of preventive-maintenance work orders based upon loaded equipment data and the availability of personnel.

Overall, the level of maintenance of buildings, grounds, and equipment is good. In the Self-Study Surveys, 57.0% of the faculty and 63.1% of the staff agreed with the statement, "The buildings I use are well maintained." This is due in no small part to the relatively young age of the facilities, which have an average age of about 14 years. In future years, as the facilities age, increased work will be required to maintain the same level of appearance and utilization.

As indicated by the Self-Study Surveys, a majority of both staff and faculty believe the University provides a healthful, safe, and secure environment for all members of the campus community. The results of eight questions related to safety and security are presented in Table 6.4.

The Safety Department and its staff are charged with the administrative responsibility (and oversight) for environmental health and safety programs. One of the functions of the Safety Department is to assist all levels of management to reduce injury, accidents, and hazards and to provide adequate emergency response for natural disasters and emergencies. In support of this goal, a series of training sessions and education workshops is offered. Frequent safety inspections and monitoring efforts provide feedback to managers for the evaluation of existing comprehensive safety programs.

	Staff	Faculty
	% Agree	% Agree
Adequate safety procedures and equipment are provided in laboratories, studios, and other potentially hazardous areas.	75	63
I am aware of how to evacuate the buildings on campus.	83	68
Emergency telephone numbers are posted in my building.	55	61
The campus has adequate lighting.	72	73
Work areas in my building(s) are adequately lighted.73	73	78
My building is secured at night by campus police.	72	62
Key control in my building is well maintained.	76	64
The services provided by campus police, including enforcement of parking regulations, are adequate.	70	63

The Safety Department also provides for the collection, storage, and removal from campus of hazardous wastes. The Department's Radiation Safety Officer also oversees the removal of radiation waste. These activities are routinely coordinated with state and local agencies.

The Safety Department has a staff that also manages the State Employee's Workplace Requirements Program for safety-and-health and accidents programs. The Department ensures compliance with the Occupational Safety and Health Act. In addition, the staff conducts a fire-prevention program and oversees fire extinguisher maintenance. The Department provides first-aid boxes as well as CPR and first-aid training sessions.

The University has, and continues to maintain, a comprehensive safety plan. This plan results from the recommendations of safety committees, inspections by state agencies and the Safety Office, and evaluation-guideline management.

The University safety committees that offer recommendations include the Chancellor's Safety Advisory Committee, which deals with safety concerns for the campus community, and the Radiation Safety Committee, which is concerned with very specific hazards in localized areas on campus. Additional recommendations pertaining to safety originate from the Physical Plant Safety Committee, which deals with industrial operations and their attendant hazards. A Chemical Safety Committee is being formed to deal with laboratory environments on the campus.

Additionally, the University is inspected by the Department of Insurance for fire safety and building conditions as well as by the Wilmington Fire Department for fire safety. The Office of State Personnel conducts routine inspections for general and laboratory safety. Periodically the Radiation Protection Branch of the state of North Carolina inspects the campus for radiation safety. In addition, University staff routinely conduct internal safety inspections of facilities and operations.

The Safety Department, in addition to internal safety inspections, coordinates the results of agency inspections and evaluations, participates in all activities, administers the inspection reports, and prepares information for line managers. Safety statistics show UNCW to be average in accident/injury rate compared to similar state institutions.

In general, the University is currently in compliance with national, state, and local health and safety regulations. This does not imply that at any given moment the University is in total compliance with the myriad of regulations that apply. A one-day snapshot would undoubtedly uncover areas that are not in compliance. However, in-place programs allow the discovery of discrepancies and provide for measures that would correct them.

Each year the University is inspected by the Office of State Personnel, the North Carolina Radiation Protection Agency, the Wilmington Fire Department, and the State Insurance Department. In none of these inspections has the University been cited as "out of compliance." A further indicator of the compliance record of the University is the annual Governor's Safety Award. For 1988 and 1989, the University was awarded the Governor's Award of Merit, which indicates that the campus was between 80% and 90% in compliance with state guidelines.

Some programs have yet to come into full compliance with new standards. The most notable is the recently passed Occupational Safety and Health Act, Laboratory Standard. A committee has been formed to work on compliance. It appears that the University already is approximately 60% in compliance and, with small administrative changes, will be within 80% compliance of the standard.

All buildings on the UNCW campus meet the Handicapped Accessibility Code for the period in which they were constructed. Not all are fully handicapped-accessible according to current codes; however, all of the newer buildings meet the stringent, requirements of the North Carolina Building Code. Some of the older buildings are not equipped with elevators and present a problem to handicapped persons. As renovation of the older buildings continues, the University is adding

elevators and bringing buildings into compliance with the Handicapped Building Code. In addition to renovation efforts, the University attempts to meet the needs of individual handicapped students.

Keying is the responsibility of the Office of the Director of the Physical Plant. Key control is maintained by a strictly observed requisition procedure requiring the approval and signature of department chairs, deans, the Vice Chancellor for Business Affairs, and the Associate Vice Chancellor.

The Campus Police Department maintains an environment reasonably free of crime, hazards, and other detractions and is assigned the responsibility of providing the appropriate response to any emergency where life or property is in jeopardy. The Department provides many services of convenience to members of the University community and visitors to the campus.

The goal of the Department is to reduce opportunities for crime, accidents, and loss of both individual and institutional property and, through investigative processes, to improve the frequency of apprehension of those responsible. It is the lead department for improving and maintaining the state of campus security. Making each member of the University community aware of security and crime is a major goal of this unit.

The Department has six functional areas: uniformed patrol, emergency communications, criminal investigations, crime prevention, lost and found, and security systems. Uniformed patrol and emergency communications operate twenty four hours per day, three hundred sixty-five days a year. Criminal investigators are on duty from 8 a.m. each weekday morning until 5 p.m. each evening. A Criminal Investigator is always on call. Other personnel work the normal University workweek for staff employees.

The most visible aspect of the Department is Uniformed Patrol. There are four shifts of police officers, each commanded by a sergeant. They work temporal shifts: day, evening, and night. Each shift has several police officers and a telecommunicator assigned to it.

The afternoon shift and night shift consist of the same number of staff, with the addition of four security guards and a shuttle driver. The four security guards work from 8 p.m. until 2:20 a.m. in residential areas. The shuttle driver works from 6 p.m. until midnight, Sunday through Thursday. The sergeant and police officers and the telecommunicator are full-time SPA employees. Security guards typically are temporary employees; most are students. The campus is patrolled by uniformed personnel in marked police cars, police officers in unmarked cars, and uniformed campus security guards on foot.

The Communications Center is the principal dispatch point for all campus police operations. Fifty-two alarms and seven emergency telephones terminate their calls in the Center. Six telephone lines are available for incoming and outgoing telephone calls. An additional telephone line, not on the University telephone network, is maintained for emergency calls to off-campus police, fire, and emergency medical-service agencies. Located in the Center is a computer terminal linking the Center to other law-enforcement agencies and to the University's own computer network.

Crime statistics indicate that the crime rate for this campus is significantly lower than that of other universities in this region. Another indication of the University's effectiveness in the area of security is the award received by the Crime Prevention Program during the past two years.

The Master Plan for Campus Development (1990-2010) was prepared in 1990 by John Jefferies of Jefferies and Faris, Architects and Planners (see Appendix 6-B on page 380). The plan delineates projects for campus development through the year 2010, with specific plans through 1999 and general projections through the remaining years. It includes an inventory of existing campus properties and facilities.

The development of this comprehensive plan involved groups associated with the University community, including an ad hoc subcommittee of the Planning Committee, appointed by the Vice Chancellor for Academic Affairs, who chairs the Planning Committee. Data used in the planning process, based primarily on projected FTE enrollment, were provided by the Office of Institutional Research.

The Master Plan is to be updated at least every two years, with consideration given to changes in instructional methods and student needs. The Business Affairs Committee of the Board of Trustees, in consultation with the faculty and staff, is responsible for recommending to the Chancellor sites and types of buildings proposed for construction and means of beautifying the campus.

The University, at this point in its development, has in place effective means to handle externally funded grants and contracts. However, these mechanisms will be tested as the University grows and increasingly complex funding sources are tapped. Furthermore, it is apparent that many of the faculty are unaware of the mechanisms that currently exist.

The University recognizes the mutual advantages of sponsored and contracted research. These activities enhance faculty competence and contribute to the academic mission of the University by affording opportunities for student training and research. They also advance the University's public-service mission by involving it in the resolution of societal problems.

However, in order to assure that all externally funded programs are compatible with the University's mission, proposals must be reviewed and approved by several administrative officials before they can be submitted to external agencies. This procedure also assures that externally funded programs remain under University control.

Full dissemination of scientific and technical information resulting from sponsored programs is strongly encouraged, and the University ordinarily will not accept financial assistance from a sponsor that reserves the right to edit, censor, or in any way restrict publication. Publication of research results may be restricted in certain circumstances (for example, to protect patent rights) for short periods of time. Such restrictions, however, are not to exceed one year. Exceptions to this policy will be made only when justified by circumstances and when clearly in the best interest of the University.

Unless contrary to the agreement, the University is free to copyright books, films, or other copyrightable materials provided in the course of, or under, a sponsored agreement. Sponsors may, however, require an irrevocable royalty-free license to use and to authorize others to use such materials. If the purpose of a sponsored project is to accumulate a data bank or to develop and produce software, specific steps must be taken during proposal development and the negotiation phase to ensure that rights of both the University and the sponsor in such materials are fully and clearly covered in the agreement. (The UNCW Faculty Handbook further discusses the researcher's responsibilities relative to funded research on page 6 of section IV and on page 5 of section VI.)

Policies are in place concerning faculty members' obligations to externally funded research relative to other academic activities. Specifically, policies on external professional activities (section VI B.1) and teaching-load assignments (section IV B.2) are addressed in the UNCW Faculty Handbook. The manual "Administration of Sponsored Programs: Research, Instruction, Public Service" also addresses problems related to externally funded summer salaries and salary supplements paid during the academic year from grants and contracts.

The University needs to delineate carefully the role of research relative to other academic responsibilities, particularly as it relates to annual merit evaluations and promotions. The Faculty Handbook addresses the faculty member's obligation to research. Furthermore, the Handbook states that the University is committed to the encouragement and support of faculty research.

In addition, the Office of Research Administration's 1989 manual "Administration of Sponsored Programs: Research, Instruction, Public Service" describes to faculty and staff the policies and procedures established by the University to govern the development and administration of sponsored activities.

The Office of Research Administration, the University agency with principal oversight responsibility for all sponsored agreements, is responsible for ensuring that the provisions of the funding agreement are the same as the approved proposal and that the integrity of the contractual relationship is not compromised. All variances to the sponsored agreement must have prior administrative approval. This oversight and prior-approval requirement ensure institutional control of acceptance and administration of all externally funded research projections.

Grants and contracts, although usually associated with specific individual faculty, are awarded to the University and not to the individual. As a result, all University policies which govern research and instruction are applied, and all funds are administered in accordance with University policies and procedures, such as those stated in the Faculty Handbook.

No proposal is submitted by the University to an external agency without the review and approval of the department chair, the dean, the Director for Research Administration, the Vice Chancellor for Business Affairs, and the Provost. This process ensures that the institution controls its own activities and that all externally funded programs are compatible with the institutional mission.

The University received approximately $2 million from externally funded programs for academic year 1990-91. This constitutes only a small amount, approximately four percent, of UNCW's operational budget. This small percentage makes it clear that the continuity of programs at UNCW is not dependent upon external grants. Rather the institution is complemented by obtaining these grants, and support for general institutional activities is not endangered by the grants.

As the University continues to grow and develop, external funding will take on increased importance, particularly as graduate programs are added and grow. The University's system for administering grants and contracts appears adequate and appropriate for the existing conditions in the University. Careful planning is needed to insure that the University maintains control of larger, more complex externally funded programs such as the NOAA/NURC program.