Section III: Comprehensive Standards

3.2.2. The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure:

3.2.2.1 the institution’s mission;

3.2.2.2 the fiscal stability of the institution;

3.2.2.3 institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services;

3.2.2.4 related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs.

JUDGMENT OF COMPLIANCE

Compliance.

NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE

Northeast Alabama Community College demonstrates compliance, with a clearly defined legal authority and operating control for areas 3.2.2.1 through 3.2.2.4. The Alabama State Board of Education is the governing board for the college. The board appoints a chancellor, who is also the chief executive officer of the Department of Postsecondary Education, to assist the board in carrying out its responsibility for the operation of the Alabama College System. The chancellor bears authority and responsibility for the operation, management, control, supervision, maintenance, regulation, improvement, and enlargement of each of the colleges within the system. The president is responsible to the chancellor for the day-to-day operation of the college.

3.2.2.1 The mission of the college is to seek to carry out the mission defined by the governing board for the Alabama College System, as published in State Board Policy 108.01. Goals specific to Northeast Alabama Community College are determined by college administrators, faculty, staff, and students together with members of the community. Both the mission and goals are incorporated into the official Mission and Goals Statement and are presented to the Alabama State Board of Education for approval. State Board Policy 203.02 affirms that the college president, appointed by the board, is responsible to the chancellor for the day-to-day operation of the college, including fulfillment of the mission.

3.2.2.2 The Alabama State Board of Education requires, through Board Policy 301.01, that "Each college shall operate within available resources but shall maintain adequate operational balances to ensure the financial stability of the college." The president is responsible for the day-to-day operation of the college, and as such bears ultimate responsibility for the fiscal stability of the college. Fiscal stability is demonstrated through auditor's reports, financial statements, and an approved budget for the current academic year. Following an approved budget, purchase requests are subject to approval in accordance with the college's organizational chart, inclusive of the Dean of Administrative Services. Department directors are provided with regular financial statements, with expenditures monitored closely by business office personnel and the president.

3.2.2.3  Adoption of policy is the responsibility of the Alabama State Board of Education. Upon the recommendation of the chancellor, the State Board of Education develops policies for the colleges of the Alabama College System. Board Policy 210.01 states, "The president of each postsecondary institution shall be responsible for developing local policies governing the institution. Local policies must be in accord with State Board policies, chancellor's regulations, federal and state statutes, and appropriate judicial directions." Assistance in the development, review, and revision of policies is provided by the staff of the Department of Postsecondary Education. Local policies are published in the college Catalog, the Faculty & Staff Handbook, and the Institutional Management Plan as well as on the college Web site.

The college does not have affiliated corporate entities. Policy regarding auxiliary services is rendered by the Alabama State Board of Education. Board Policy 320.01 gives the college authorization to, "...operate or to contract for food services, vending services, bookstores, and other self-supporting activities as a service to, and incidental to, the instructional program of the college."

The college maintains contracts for the following auxiliary services: bookstore, cafeteria, Buffalo Rock (both food and soft drink vending machines), and Mountaineer, Inc. (grounds care service). As an extension of its food service to the students, the cafeteria, through an agreement with Coca-Cola, provides vending machines in various buildings on campus.

3.2.2.4   Alabama State Board of Education Policy 213.01 authorizes and encourages each college president in the Alabama College System to "establish college-related foundations ..."  Additionally, the policy requires such foundations "to be incorporated under the laws of the State of Alabama as nonprofit organizations for the sole purpose of undergirding and supporting the educational aims and objectives of the college..."

Articles of Incorporation and Bylaws of the Northeast Alabama Community College Foundation became effective April 17, 2002. Presently the college is awaiting a federal tax identification number. Article III states, "The purpose of the corporation is to provide federal, state and private funding for educational purposes and physical improvements to the campus."  Furthermore, "The corporation is organized...within the meaning of Section 501 (c)(3) of the Internal Revenue Code of 1986..."

By-Laws of the NACC Foundation provide for the property and business of the foundation to be managed by its Board of Directors. The initial board of directors is comprised of the college president and two community members, one from DeKalb County and the other from Jackson County.

The college has restricted accounts for the NACC Theatre Guild and the Music Department. The Memorandum of Agreement between the NACC Theatre Guild and the college states that, "The guild functions by raising enough funds to finance benefits designed to raise significantly larger amounts to be donated to the theatre. The guild must clear proposed benefits and fund-raising activities through the Director of Theatre and the President of the college." Additionally, "All aspects of the use of these funds are subject to the same procedures and approvals of the President, Business Manager, and appropriate budget supervisor as any other expenditures of the college."

A one-time gift of $150,000 in mutual funds was made in 1998 and earmarked for Speech and Music. Purchases from this restricted account are subject to the same procedures and approvals as purchases made from any other account, with ultimate approval required by the president.

SUPPORT DOCUMENTATION

3.2.2.1

3.2.2.2

3.2.2.3

3.2.2.4

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