UNIVERSITY OF MICHIGAN

Michigan Office of the
Auditor General
Thomas H. McTavish, C.P.A.
Auditor General

EXECUTIVE DIGEST #3322001
UNIVERSITY OF MICHIGAN - FLINT

INTRODUCTION
This report, issued in February 2002, contains the results of our performance audit of the University of Michigan - Flint.

AUDIT PURPOSE
This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency. For audits of universities, audit selection is based on several factors, such as length of time since our last audit and legislative requirements.

BACKGROUND
The University is one of three campuses operated by the University of Michigan Board of Regents. The chancellor is the chief executive officer and reports to the president of the University of Michigan.

The University was established in 1956, admitting only juniors and seniors, and expanded to a four-year institution in 1965. When the University first became operational, it was located on the C.S. Mott Community College campus. However, by 1977, the University moved to its 42-acre site, which is located in downtown Flint along the south side of the Flint River. In 1997, the University acquired an additional 25 acres immediately north of the Flint River, where a new building is currently being constructed. It is expected to open in the summer of 2002.

The University is committed to the highest standards of teaching, learning, scholarship, and creative endeavors. The University's mission is to be the leading university in its region. The University accomplishes its mission by educating all students in an environment that emphasizes literacy, critical thinking, and humanistic and scientific inquiry; facilitating student participation in the learning process and promoting individual attention to students; ensuring that faculty and staff give students the necessary guidance, support, and encouragement to achieve their academic goals; enabling faculty to achieve high quality scholarship in areas of basic and applied research and creative ability; promoting respect and understanding of human and cultural diversity; and collaborating with local and regional educational institutions and other public and private organizations to provide access to academic programs.

During winter semester 2001, the University had 5,916 students enrolled on- and off-campus. The University had 4,953 fiscal year equated students during fiscal year 2000-01.

As of June 30, 2001, the University had 183 full-time and approximately 290 part-time faculty and 307 full-time, 22 part-time, and 459 temporary administrative and support personnel. For the fiscal year ended June 30, 2001, current fund revenues were $64.9 million (Exhibit 1) and current fund expenditures and transfers were $60.4 million (Exhibit 2).

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS
Audit Objective: To assess the effectiveness of the University's monitoring of academic and related programs provided to students.

Conclusion: We concluded that the University was generally effective in its monitoring of academic and related programs provided to students. However, we noted reportable conditions related to student survey analysis, repetitive course enrollment, and the special admissions program (Findings 1 through 3).

Noteworthy Accomplishments: The University of Michigan Board of Regents approved a Doctor of Physical Therapy (DPT) degree in July 2001. This represents the first doctorate degree offered at the University's campus. Students currently enrolled in the physical therapy program and those newly admitted for fall semester 2001 will have a choice of completing the currently offered Master of Physical Therapy or switching to the new DPT. Following the transition period, the DPT will replace the Master of Physical Therapy. With the transition to the DPT degree, the University's physical therapy education program will increase its competitiveness in the State and national marketplace, will address the current changes in the health care environment, and will prepare the graduates to practice anywhere in the country.

Audit Objective: To assess the effectiveness and efficiency of the University's use of resources allocated to support academic and related programs.

Conclusion: We concluded that the University was generally effective and efficient in its use of resources allocated to support academic and related programs. However, we noted reportable conditions related to minimum class size and classroom utilization (Findings 4 and 5).

Noteworthy Accomplishments: The University purchased and implemented an optical imaging system that allowed the financial aid area to eliminate the use of paper forms and communications and decrease application-to-award turnaround from two months to one week. Financial disbursements went from the second week of class to 10 days prior to the start of the semester.

AUDIT SCOPE AND METHODOLOGY
Our audit scope was to examine the program and other records of the University of Michigan - Flint. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances.

Our audit procedures included examination of the University's records and activities primarily for the period July 1, 1999 through June 30, 2001.

We evaluated the University's policies and procedures relating to student academic progress, including admission requirements, special admissions programs, and the advising of and provision of needed services to students. Also, we reviewed the University's practices relating to repetitive course enrollments.

We examined the University's methods for ensuring the quality of its academics, including performing program evaluations.

We assessed the efficiency of the University's use of resources by evaluating policies and procedures and analyzing data relating to minimum class size; classroom utilization; and faculty utilization, including workloads, overload classes, and release time.

AGENCY RESPONSES
Our audit report includes 5 findings and 6 corresponding recommendations. The University's preliminary response indicated that it generally agreed with all of the recommendations.

Full Audit Report - #3322001 - UNIVERSITY OF MICHIGAN - FLINT

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This page was created on January 31, 2002.


INTRODUCTION This report, issued in February 2002, contains the results of our performance audit of the University of Michigan - Flint.

AUDIT PURPOSE This performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency. For audits of universities, audit selection is based on several factors, such as length of time since our last audit and legislative requirements.

BACKGROUND The University is one of three campuses operated by the University of Michigan Board of Regents. The chancellor is the chief executive officer and reports to the president of the University of Michigan. The University was established in 1956, admitting only juniors and seniors, and expanded to a four-year institution in 1965. When the University first became operational, it was located on the C.S. Mott Community College campus. However, by 1977, the University moved to its 42-acre site, which is located in downtown Flint along the south side of the Flint River. In 1997, the University acquired an additional 25 acres immediately north of the Flint River, where a new building is currently being constructed. It is expected to open in the summer of 2002. The University is committed to the highest standards of teaching, learning, scholarship, and creative endeavors. The University's mission is to be the leading university in its region. The University accomplishes its mission by educating all students in an environment that emphasizes literacy, critical thinking, and humanistic and scientific inquiry; facilitating student participation in the learning process and promoting individual attention to students; ensuring that faculty and staff give students the necessary guidance, support, and encouragement to achieve their academic goals; enabling faculty to achieve high quality scholarship in areas of basic and applied research and creative ability; promoting respect and understanding of human and cultural diversity; and collaborating with local and regional educational institutions and other public and private organizations to provide access to academic programs. During winter semester 2001, the University had 5,916 students enrolled on- and off-campus. The University had 4,953 fiscal year equated students during fiscal year 2000-01. As of June 30, 2001, the University had 183 full-time and approximately 290 part-time faculty and 307 full-time, 22 part-time, and 459 temporary administrative and support personnel. For the fiscal year ended June 30, 2001, current fund revenues were $64.9 million (Exhibit 1) and current fund expenditures and transfers were $60.4 million (Exhibit 2).

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS Audit Objective: To assess the effectiveness of the University's monitoring of academic and related programs provided to students. Conclusion: We concluded that the University was generally effective in its monitoring of academic and related programs provided to students. However, we noted reportable conditions related to student survey analysis, repetitive course enrollment, and the special admissions program (Findings 1 through 3). Noteworthy Accomplishments: The University of Michigan Board of Regents approved a Doctor of Physical Therapy (DPT) degree in July 2001. This represents the first doctorate degree offered at the University's campus. Students currently enrolled in the physical therapy program and those newly admitted for fall semester 2001 will have a choice of completing the currently offered Master of Physical Therapy or switching to the new DPT. Following the transition period, the DPT will replace the Master of Physical Therapy. With the transition to the DPT degree, the University's physical therapy education program will increase its competitiveness in the State and national marketplace, will address the current changes in the health care environment, and will prepare the graduates to practice anywhere in the country. Audit Objective: To assess the effectiveness and efficiency of the University's use of resources allocated to support academic and related programs. Conclusion: We concluded that the University was generally effective and efficient in its use of resources allocated to support academic and related programs. However, we noted reportable conditions related to minimum class size and classroom utilization (Findings 4 and 5). Noteworthy Accomplishments: The University purchased and implemented an optical imaging system that allowed the financial aid area to eliminate the use of paper forms and communications and decrease application-to-award turnaround from two months to one week. Financial disbursements went from the second week of class to 10 days prior to the start of the semester.

AUDIT SCOPE AND METHODOLOGY Our audit scope was to examine the program and other records of the University of Michigan - Flint. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances. Our audit procedures included examination of the University's records and activities primarily for the period July 1, 1999 through June 30, 2001. We evaluated the University's policies and procedures relating to student academic progress, including admission requirements, special admissions programs, and the advising of and provision of needed services to students. Also, we reviewed the University's practices relating to repetitive course enrollments. We examined the University's methods for ensuring the quality of its academics, including performing program evaluations. We assessed the efficiency of the University's use of resources by evaluating policies and procedures and analyzing data relating to minimum class size; classroom utilization; and faculty utilization, including workloads, overload classes, and release time.

AGENCY RESPONSES Our audit report includes 5 findings and 6 corresponding recommendations. The University's preliminary response indicated that it generally agreed with all of the recommendations.