College Group Applauds Higher Education Commission's Support of Autonomy, Vows Voluntary Steps to Increase Governance and Fiscal Accountability

 

Darryl G. Greer, Executive Director
Paul R. Shelly, Director of Communications & Marketing

 

Press Release:
December 14, 2007

The New Jersey Association of State Colleges and Universities (ASCU), representing the nine state colleges and universities, today applauded the New Jersey Commission on Higher Education's response to the State Commission of Investigation's two and one-half year long study of some four-year public colleges and universities. The recommendations followed a careful review of the SCI report by an ad hoc committee of the state higher education panel.

ASCU executive director/CEO, Dr. Darryl G. Greer said that he appreciates the Commission's timely review of the SCI report and willingness to listen to college leaders' concerns in formulating recommendations based on the report.

"The Association concurs with the CHE committee report that state college and university autonomy is working well and is the cornerstone for effective governance. We also concur that there is room for improvement in accountability and service to the public."

The Association outlined some of the steps it is taking toward development of what it calls "a comprehensive plan for improving accountability within the current governance structure based on effective nonpartisan boards of trustees." These include:

 

n	Review of the institutions' alignment with the principles of Sarbanes-=Oxley (SOX), federal legislation to improve fiscal accountability of publicly traded companies.  Note:  summary information is available on request.
n	Completion of a peer comparison study that analyzes Association member-institutions' spending patterns with those of rigorously selected "peer institutions" in other states, using an outside consultant with highly specialized knowledge of college finance.  A summary of the study, once completed, will be released publicly.
n	Development of a set of recommendations for trustee board member qualifications and selection to assure that governance remains free of partisan interference.

Greer pointed out that none of the above steps that the Association is taking are mandated. He added that in many ways, state colleges and universities are surpassing current statutory regulations.

Regarding Sarbanes-Oxley principles, Greer said that most of the state colleges have implemented key provisions, in some cases years ago, or are far along the road to doing so. For example, all ASCU institutions have: institutional codes of ethics; employment of external auditors to assess internal controls, compliance, and financial operations and statements; adherence to Generally Accepted Accounting Principles; utilization of nationally recommended college audit guidelines; and rigorous application of state coordinated ethics standards for trustees and administrators. Most, if not all, already have an explicit policy that protects whistleblowers. Several have the recommended separate audit committee and/or implement an audit plan with a "dashboard indicators" progress check.

This information is evidence that these colleges are dedicated to improving accountability, transparency and the monitoring of finances and that the public can expect even more along these lines over the months ahead, without the need for state intervention. Progress will be reported by the Association as part of a multi-year effort the group is calling New Jersey College Promise, the goals of which include increasing state college/university affordability, opportunity and accountability.

In January, the Association will unveil additional plans for increasing college affordability and college opportunity.

The nine state colleges and universities have over 90,000 students, over 90% of them New Jersey residents. The schools continue to face high demand and rank among the nation's most productive according to a study by the National Center for Higher Education Management Systems.