ACCJC report on NMC cites 11 concerns and deficiencies

The Northern Marianas College needs to resolve 11 concerns and deficiencies in order to get out of “probation” status, according to a report recently made public by the Accrediting Commission for Community and Junior Colleges.

The 21-page report detailed the ACCJC team’s observations and evidence found during its visit to the college in November. The report also showed detailed evidence of each deficiency, of which eight concerns were resolved based on their findings and observations.

The report kicked off with what NMC had done right so far, particularly in protecting its autonomy from the government. The ACCJC team lauded the Board of Regents for issuing a resolution affirming its autonomy and its constant communication with the Legislature. It was noted that, although the government retains authority over the appropriation of funds for NMC, it does not have line item or staffing control. The college also has control over the implementation of budget cuts and staffing.

Evidence also showed that the board has renewed its focus on its policy and oversight role through a resolution defining the boundaries between board oversight and administrative operational responsibilities of the NMC president.

The team also praised the hiring of personnel in various positions, including the presidency, with the appointment of Dr. Sharon Hart in July 2011. Prior to her entry, NMC didn’t have a permanent chief executive officer since January 2010.

The team also determined that NMC has made great strides in recruiting people for administrative posts.

The report also bared that NMC planning is detailed in the 2008 Institutional Excellence Guide and is implemented through campus-wide governance bodies and standing committees. NMC was also successful in demonstrating faculty efforts in distinguishing between personal conviction and professional views through necessary workshops.

The issue of confidentiality in the college’s accreditation efforts was also deemed resolved through some actions and appropriate trainings initiated by the college and its board.

Continued probation

Although the NMC president has created a “white paper” outlining key principles that will guide budgeting decisions, the team noted that NMC’s financial stability remains unclear.

Of particular concern for the team was the dissolution of the college’s budget and finance committee, saying this makes program review and budget planning uncertain.

During their visit, the team was informed about this committee’s important role, only to find out during their exit interview that it had been dissolved.

This is particularly perplexing because this committee was identified by NMC as an integral component to budget planning, as indicated in its report to the commission.

The team also disclosed that despite corrective plans, deficiencies continue to occur in NMC’s internal control as shown by the college’s audit findings, specifically in grant programs.

Additionally, the ACCJC team learned about a previously unknown $1.5 million that was only recently identified for the college. If these funds had been identified earlier, austerity Friday would have been unnecessary for the college, the team said.

“The internal control issue and the discovery of unknown funds point to a weakness in the financial management system that limit the college’s ability to make sound financial decisions. Information from the system is neither dependable nor timely. The audits attest to the accuracy of the financial information system; however it appears that there are more systematic issues with financial management,” the team bared in its report.

One issue is the “apparent disconnect” between the CFAO and members of the financial staff. The team recommended the immediate recruitment of a permanent CFAO for the college.

Due to a sequence of events that happened in a November board meeting that the team observed for several hours, the team determined that college staff members need additional training in how to relate to the board and the college needs to develop board agendas that are structured and clearly identify action items and information items as well as the nature of board action required.