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Section III: Mission, Governance, and Institutional Effectiveness
SACS Comprehensive Standard

III-3. The legal authority, governance structure, and operating control of the institution are clearly defined for the following areas:

a. the institution's mission
b. the fiscal stability of the institution
c. institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services
d. related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs.

JUDGMENT OF COMPLIANCE

Yes, East Tennessee State University is able to provide a portfolio of evidence supporting compliance.

STATEMENT OF RATIONALE FOR JUDGMENT OF COMPLIANCE

A. The Institution's Mission

The legal authority for establishing East Tennessee State University and its mission is the state legislature (Tennessee Code Annotated 49-8-101). Minimally, the institution's mission is reviewed and/or revised during the multi-year strategic planning cycle of the Tennessee Board of Regents (TBR Strategic Planning, 2000-2005). Mission statements may be amended outside of the planning cycle upon request of the institution.

East Tennessee State University's Strategic Planning and Institutional Effectiveness Committee is responsible for oversight and revision of the institution's statement of mission and purpose (ETSU Standing Committees). Revision recommendations are gathered from the campus community through the ETSU President's Council, representatives of campus divisions, and colleges. A revised mission statement must be approved by ETSU President's Council (Minutes) and recommended to the president for his approval and submission to the TBR.

B. The Fiscal Stability of the Institution

The legal authority for and governance structure of East Tennessee State University are provided by state statute (Tennessee Code Annotated 49-8-101). The fiscal stability of ETSU is the shared responsibility of the TBR, the chancellor of the system, and the president (TBR Manual, Duties of the Board; System of Governance). The TBR has numerous policies and guidelines for review and approval of institutional financial transactions that are designed to assure financial stability and compliance with state law (TBR Manual, Business and Finance Policies; Guidelines). The ETSU Division of Business and Finance annually prepares financial reports for review by the chancellor and the TBR to demonstrate compliance with the budget and to document the fiscal stability of the university (ETSU Financial Report 1999-2000).

The operating control of the university resides with the president as chief executive officer (TBR Manual, Duties of the Presidents). It is the responsibility of the president to present three detailed budgets to the chancellor for review each year. These consist of the original budget prepared in May preceding the beginning of the fiscal year, the October revision prepared in October of the fiscal year, and the spring revision prepared in May of the fiscal year. Once budgets have been reviewed and determined to be in compliance with TBR policies and guidelines, they are submitted to the TBR through the chancellor's office. It is the responsibility of the TBR, upon the chancellor's recommendation, to approve or disapprove institutional budgets (TBR Manual, Budget Control).

The president, the chancellor, and TBR members work closely with the legislature for provision of funds to the university. As a state regional institution, ETSU relies on the state legislature to provide adequate funds for the execution of its mission and its strategic plan.

C. Institutional Policies, Including Corporate Entities and Auxiliary Services

The institutional policies of East Tennessee State University are based upon, and maintained in compliance with, the policies of the TBR as stipulated by our enabling legislation (Tennessee Code Annotated 49-8-101). It is the ultimate responsibility of the president of the institution to ensure that policy compliance is maintained and that policy implementation follows TBR guidelines (TBR Manual, Duties of the Presidents).

East Tennessee State University may not merge with any private educational institution without the approval of the Tennessee General Assembly (Tennessee Code Annotated 49-8-203). The TBR requires the chancellor's approval on all contracts establishing educational relationships with other entities (TBR Manual, Approval of Agreements; SACS Standard IV-7 Report). Policies concerning the development of related foundations are also provided by the TBR (TBR Manual, Foundations; see description in section D of this report).

Auxiliary services at ETSU are defined as essential elements in support of educational programs and conceptually are regarded as self-supporting (TBR Manual, Budget Control). These auxiliary agencies furnish services to students, faculty, or staff and charge a fee directly related (but not necessarily equal) to the cost of the service. Policies regarding the operation and classification of auxiliary enterprises are provided by the TBR (TBR Manual, Education Business Activities). Auxiliary services at ETSU include the following:

• University Bookstore,
  

• Center for Physical Activities,
  

• Debit Card Operations,
  

• Food Services,
  

• Long-distance Telephone Services,
  

• Post Office,
  

• Student Housing, and
  

• Vending Operations.

D. Related Foundations and Other Corporate Entities

Currently, East Tennessee State University has only two active related corporate entities---the ETSU Foundation, Inc., and the Medical Education Assistance Corporation (MEAC). The ETSU Foundation is the private fund-raising arm of the university and serves as the umbrella organization for specific fund-raising groups, such as the national Pirate Club, Friends of the Library, and Friends of the Reece Museum. The MEAC provides private practice opportunities for the university physicians in the James H. Quillen College of Medicine. These corporations have been formed according to policies established by the TBR (TBR Manual, Foundations). Each corporation has its own charter and bylaws, and is governed by a written agreement with ETSU. In combination, these documents clearly define the legal authority, governance structure, and operating control of ETSU in relation to these corporations (ETSU Foundation Charter, Bylaws; Agreement between ETSU and ETSU Foundation; MEAC Charter, Bylaws; Agreement between ETSU and MEAC; MEAC Private Practice Regulations).

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