Annual Operational and Financial Review March al Operational and Financial Review

Transcription

1 Annual Operational and Financial Review March 2015 al Operational and Financial Review

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3 Contents I. OVERVIEW... 3 II. ACADEMIC ELEMENTS... 6 A. B. C. D. E. F. G. Distinctive and outstanding programs... 6 Recent changes to academic programs... 8 Online programs and community college partnerships Online programs Community college partnerships Programs responsive to Arizona s workforce needs Academic quality and student success Examples of initiatives contributing to academic success and career opportunities Assessment and progress of student success initiatives International education Challenges and risks III. RESEARCH ELEMENTS A. B. C. D. Research successes Recent investments and progress Research challenges Strategies to achieve 2020 goals in research expenditures IV. FINANCIAL ELEMENTS A. B. C. D. E. Financial highlights FY Future financial planning Revenue plan Operating Budget (FY12 FY20) Major initiatives driving anticipated changes in expenditures V. UNIVERSITY FOUNDATION VI. APPENDIX Northern Arizona University Strategic Business Plan March 2015 Page 2 of 72

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5 I. OVERVIEW The last decade has been one of substantial progress for the university. Student enrollment has grown by 45 percent since fall 2005, the main campus has been transformed into a modern and vibrant living learning community, and research has emerged as a strategic tool for building financial vitality and fueling the state s economic engine. The historical role of serving rural Arizona has been strengthened through 2NAU joint admission programs with community colleges, Personalized Learning, and other lower cost degree options for time and place bound students. The last decade was also marked by structural changes to the university budget resulting in a significant shift in operations, creating a tuition driven institution. Enrollment growth and structural budget transformation have led to more strategic development of new academic programs, greater integration of academic and capital planning, and a greater reliance on public private partnerships, especially in the areas of auxiliary services. With new leadership, the university is charting a course of growth, academic excellence, research expansion and efficient performance while staying responsive to the ABOR 2020 Vision and nimble enough to take advantage of opportunities as they arise. Refining and strengthening our already strong relationships with our students, within the university, within the communities we serve, and with the state will be a focal point as we move forward. This document acknowledges our accomplishments, points to our plans and aspirations, and outlines our challenges. It tells our ongoing story and establishes the starting points for what we will achieve tomorrow. Mission The university s mission is to provide an outstanding undergraduate residential education strengthened by research, graduate and professional programs, and sophisticated methods of distance delivery and innovative new campuses and programs throughout the state. Values Rooted in the diverse cultures of the northern Arizona region of the Colorado Plateau, the university community values excellence in education closely tied to student success and access, and supports conduct reflective of civility and integrity. Northern Arizona University Strategic Business Plan March 2015 Page 3 of 72

6 Enterprise Metrics The university s commitment to undergraduate education is reflected in the considerable progress toward meeting the 2020 goals. In fact, the goal for bachelor s degrees awarded was surpassed in Similarly, the university is on track to meet or exceed other metrics such as undergraduate degrees awarded in STEM, health professions and related high demand fields; undergraduate online degrees awarded; undergraduate enrollment; and exclusively online program enrollment. Metrics related to research and graduate enrollment are experiencing less progress in part because of external influences, such as declining federal funding and student demand. In response, the university is investing in new graduate programs with promising market potential and in research active faculty to attract new funding sources. Our success will depend on the university s ability to continue these strategic investments with enrollment growth through attracting new and retaining current students being an important component of our overall strategy. 35,000 30,000 25,000 20,000 Metric 10. Total Enrollment (Official 21st Day) 27,396 29,754 24,925 25,744 26,308 25,011 22,307 23,320 15,000 10,000 Projected* 5,000 0 Total enrollment has been growing steadily. s Since fall 2008 it increased by 23 percent, mostly due to growth of incoming freshman classes and community college transfers. Projected represents Enterprise metric projections established in 2011 with a 2020 enrollment goal of 29,754 students. Northern Arizona University Strategic Business Plan March 2015 Page 4 of 72

7 Metric 9. Undergraduate Enrollment (Official 21st Day) 30,000 25,000 20,000 15,000 23,569 16,654 18,083 19,954 20,431 21,560 22,407 24,970 10,000 5,000 0 Years of increases in incoming freshman classes led to a substantial growth of undergraduate enrollment. Since fall 2008 undergraduate enrollment grew by a remarkable 42 percent. NAU began to experience enrollment increases in 2006, but the following years of sustained rapid growth coincides with the implementation of the PLEDGE tuition program. The PLEDGE guarantees incoming undergraduate students a flat tuition rate (no tuition increase) for eight semesters. This is part of our commitment to a predictable cost of attending and graduating from NAU. Future growth may slow as the competition for in state students intensifies and the higher education policy changes of neighboring states impact student migration patterns. Projections of high school graduates in Arizona call for a flat trend until 2022, which may also affect future incoming classes. Projected represents Enterprise metric projections established in Northern Arizona University Strategic Business Plan March 2015 Page 5 of 72

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9 II. ACADEMIC ELEMENTS A commitment to undergraduate education and a deep respect for regional populations and the historical challenges of an expansive, rural geography contribute to programs that distinguish the university among its peers. A. Distinctive and outstanding programs NAU s distinctive mission is rooted in undergraduate education. We are unique in having built a systematic approach to first year course design across all disciplines and majors focused on improving student success in gateway courses. We engage in continuous assessment and enhancement of high impact educational practices. For example, our joint academic student services assessment teams conduct propensity score analyses for initiatives in order to identify groups for evaluating outcomes. Differences in academic performance and/or retention between the groups provide information on the programs effects. Time and place bound students may choose affordable, quality educational opportunities through innovative online programs, community college partnerships and competency based Personalized Learning programming. Close contact between faculty and undergraduates is built into curriculum and cocurricular offerings. Both student and workforce demand is high in the healthcare sector. NAU is addressing this challenge by offering health profession programming in Flagstaff, Phoenix and elsewhere. Students may also choose from innovative interdisciplinary graduate programs such as the School of Earth Sciences and Environmental Sustainability Ph.D. and Professional Science Master s in Climate Science and Solutions. NAU invests in highly regarded programs well matched to our institution s history and regional audience, including forestry; hotel and restaurant management; science, technology engineering and mathematics and STEM education (the NAU Teach program and accreditation by the Council for the Accreditation of Education Programs, the standard of excellence in teacher preparation). Faculty in these programs and others ranging from applied linguistics to conservation biology and Northern Arizona University Strategic Business Plan March 2015 Page 6 of 72

10 microbial genetics are recognized as leading scholars with international awards and leadership positions. A commitment to global education is expressed by preparing all our students to thrive in an increasingly multi national, multi cultural world. The Global Learning Initiative demonstrates a commitment to incorporate specific educational experiences and learning outcomes related to the global nature of society, culture and economy in every one of our degree programs not simply in general education but in ways related to specifics majors or professional programs. Examples of NAU s Global Learning Initiative In the Economics degree program in the Franke College of Business, specific elements of international business, trade and global economic activity have been incorporated into the course learning outcomes in more than a dozen required and elective Economics courses. A new dual degree program, Global Business Program, is being launched in the coming year to support business students in acquiring a second degree in a foreign language after spending a year abroad in an international internship and university setting. These examples are representative of students learning the global dimensions of their respective disciplines and understanding how the themes of diversity, global engagement and environmental sustainability interact with their respective academic majors. An annual report by Diverse Issues in Higher Education ranked NAU seventh in the nation for awarding bachelor s degrees to Native Americans. NAU is second in the nation for graduating native student baccalaureates who go on to STEM doctoral degrees (according to the National Science Foundation Survey of Earned Doctorates). Northern Arizona University Strategic Business Plan March 2015 Page 7 of 72

11 Metric 1. Bachelor's Degrees Awarded 6,000 5,000 4,513 5,034 4,900 4,000 3,000 2,000 3,203 4,281 3,825 3,473 Projected* 1,000 0 The university s enrollment growth has translated into increased bachelor s degree awards. In 2014, the university exceeded its 2020 goal. Projected represents Enterprise metric projections established in B. Recent changes to academic programs Recent changes to academic programs, implemented with regard to Enterprise metrics, include: Expansion of 2NAU joint admission programs with community colleges and distinctive NAU Yavapai, online, and Personalized Learning programs. Expansion of the Phoenix Biomedical Campus. Coordinated expansion of blended learning, the Lumberjack Mathematics Center, and other programs aimed at increasing capacity while improving student success. Increased attention to retention, career services, experiential learning and development through University College. Two new degree programs will be presented at the March ABOR meeting, both tied to existing strength in NAU faculty and to unique relationships with regional employers and partners. Note that the Academic Strategic Plan will be a separate item on the March ABOR meeting agenda. o A proposed Ph.D. in astronomy which is linked with northern Arizona s telescope based economic sector. o A proposed online master s in Parks and Recreation Management serving those already employed in tourism, public lands and resource management fields. Northern Arizona University Strategic Business Plan March 2015 Page 8 of 72

12 C. Online programs and community college partnerships Online programs and community college partnerships play an increasingly prominent role in allowing NAU to achieve its institutional goals. With over 80 online degree programs and 37 community campuses around the state to provide student services and support, 7,500 Arizona students and their employers are well served with degree and certificate options by a range of tuition price options. 1. Online programs Recently developed online degree programs include emergency management, industrial technology management, psychology, intelligence studies, law enforcement management, justice studies, and logistics and supply chain management. More than 500 students have enrolled since 2013 in the online competency based Personalized Learning in high demand areas including computer information technology, small business administration and liberal arts an ideal degree completion option for students who have many college credits but no degree. Metric 29. Online Degrees 1,600 1,400 1,200 1, , , Undergraduate Graduate Both undergraduate and graduate online degree awards have been growing steadily. With the current mix of programs and pathways, the university is likely to reach the 2020 goals. Projected represents Enterprise metric projections established in Northern Arizona University Strategic Business Plan March 2015 Page 9 of 72

13 Metric 32A. Exclusively Online Program Enrollment Headcount 2,593 2,662 2,956 3,293 3,759 3,822 4,439 Projected * 9,180 10,000 8,000 6,000 4,000 2,000 0 Undergraduate Headcount Graduate Headcount Online program enrollment has been growing especially in the undergraduate headcount. Overall it increased by more than 70 percent since fall Personalized Learning is expected to accelerate the growth to approach the 2020 goals. Nevertheless the increasing number of similar competing programs from across the nation will challenge the institution to keep its competitive edge. Projected represents Enterprise metric projections established in Community college partnerships Twenty one of our community campuses are co located at community colleges in the state, offering 75 traditional classroom degree programs. NAU is a pioneer and state leader in providing 3+1 programs: 90 credits at a local community college and 30 credits at NAU. These are the most affordable bachelor s degrees in Arizona. o Enrollment has increased in these programs from 468 in fall 2009 to nearly 900 in fall 2014 with degrees awarded under these programs rising from 46 in 2009 to 408 in o NAU currently offers 21 different programs within 7 disciplines including interdisciplinary studies in public administration, technology management and humanities. Joint admission programs, our 2NAU programs, that admit students to NAU and a community college from the outset, have served more than 6,000 students since 2008 with the largest enrollment of 1,249 students seen in fall o Of these students, 209 have graduated from NAU, 731 students have fully transitioned to NAU, and an additional 3,009 are still retained at the community college. Northern Arizona University Strategic Business Plan March 2015 Page 10 of 72

14 The NAU Yuma branch campus, in partnership with Arizona Western College, serves the third largest Arizona metropolitan area as a federally recognized Hispanic Serving Institution. In a unique partnership with Yavapai College and the City of Prescott Valley, NAU Yavapai provides bachelor s degrees in an accelerated three year program at just over $5,200 per year. Strategies to improve transfer student enrollment and success include: o Increased emphasis on effective transfer recruiting and advising to accelerate numbers and graduations of transfers. o Implementation of the Jacks Transfer portal to help prospective transfer students navigate degree requirements and transfer credit applicability toward a specific program. More than half our baccalaureate graduates enter NAU as non traditional students, demonstrating that we are serving a wide variety of students, not just conventional freshmen. 4,000 3,500 3,000 2,500 2,000 1,500 1, Metric 3. Arizona Community College Transfers 2,606 2,523 2,151 2,376 2,469 1,917 Projected* 3,800 The university s renewed focus on improving services for prospective transfer student and their experiences after admission are keeping the university on track to meet the 2020 goal. Since the academic year, the number of Arizona community college transfers increased by 29 percent. The last few years Arizona community colleges experienced declining enrollments which limits the population from which to recruit. Additionally, the 2NAU joint admission programs with Arizona community colleges, actively advise students to complete as many credits as possible at their community college before attending NAU. This also affects the rate at which these students actually become NAU Arizona community college transfers. Projected represents Enterprise metric projections established in Northern Arizona University Strategic Business Plan March 2015 Page 11 of 72

15 2,500 Metric 4. Number of Arizona Community College Transfer Bachelor's Degrees 2,300 2,000 1,500 1, ,035 1,234 1,397 1,525 1,652 1,771 Projected* 0 Northern Arizona University continues to increase the number of Arizona Community College students who graduate with transfer bachelor s degrees. Projected represents Enterprise metric projections established in D. Programs responsive to Arizona s workforce needs NAU is well known for academic programs that are competitive nationally and globally, and that produce graduates who can fill workforce needs. Through continual adaptation, the university is positioned to take advantage of new opportunities as they arise. A distinctive regional setting provides avenues to pursue strategic priorities. o NAU benefits from the diversity of a strong Native American presence imbued with a diverse cultural and language heritage. o STEM and bioscience programs in Flagstaff and across northern Arizona flourish in collaboration with economic development entities to integrate workforce, education and industry across the region. o Southwestern studies focus on geology, environment and cultures that draw international interest. A legacy of education programs evolves in response to changes in the demand for teaching credentials and professional development. o Teacher and educational leadership preparation is offered face to face, in Flagstaff and across the state, and online. Northern Arizona University Strategic Business Plan March 2015 Page 12 of 72

16 o We have obtained and maintain accreditation by the Council for the Accreditation of Education Programs and by the Council for Accreditation of Counseling and Related Educational Programs. o Best practice programs such as NAUTeach, supported by the National Math and Science Initiative and several major funders, address growing demands for STEM education. Adaptation is especially apparent in regionally responsive, high demand graduate programs. o Development of additional professional science master s degrees including degrees in Applied Geospatial Sciences and Climate Science and Solutions. o Expansion of health professions programs. o Increasing emphasis on interdisciplinary degrees. o Growth of online and hybrid degree programs. The establishment and continuing build out of the Phoenix Biomedical Campus, with high tech learning studios and simulation facilities, address an urgent state workforce need by offering the following graduate degrees: o Master s degree in Physician Assistant Studies, Arizona s only public university PA program o Doctor of Physical Therapy o Occupational Therapy Doctorate We are extending a decade long commitment on the Flagstaff campus to build or renovate academic buildings with attention to interactive spaces, quality and flexibility of classrooms. Extensive renovations at Cline Library include the Cline Learning Studio, a technology rich environment that will guide the development of similar learning environments elsewhere on campus. Northern Arizona University Strategic Business Plan March 2015 Page 13 of 72

17 Metric 21. Number of Degrees Awarded in High Demand Fields (Undergraduate) 2,500 2,000 1,500 1, ,824 1,930 2,101 2,200 1,334 1,496 1, Projected* Health Professions & Related Undergraduate Education Undergraduate STEM Undergraduate Health professions and related undergraduate degrees more than doubled since ; STEM undergraduate degrees almost doubled, and education undergraduate degrees increased by almost 100 degrees. Historically, NAU s enrollments in education were among the largest at the university. Undergraduate enrollments have been affected by the economic recession and its effects on teacher employment, but not to the degree graduate programs were affected. NAU will work to continue to increase its undergraduate education degrees awarded. Projected represents Enterprise metric projections established in E. Academic quality and student success NAU carefully designs and assesses initiatives to ensure academic quality and student success, particularly with regard to established Enterprise goals. These initiatives within the divisions of Academic Affairs and Enrollment Management and Student Affairs have been designed to improve student academic achievement (as measured by NAU GPA), academic progress (as measured by earned student credit hours, timely progression to sophomore status and degree program progress) and rates of persistence (as measured by retention and graduation rates). Dramatic and sustained increases in incoming freshman enrollment and demographic changes in the freshman cohort drive an institutional focus on student success initiatives. o Cohort demographic trends impacting retention: o More out of state students. o More ethnically diverse students. o More financially needy students. o More first generation students. Northern Arizona University Strategic Business Plan March 2015 Page 14 of 72

18 The university has been pursuing evidence based practices in first year and transition programs since The central student success initiative is the unique, locally developed, faculty designed and driven First Year Learning Initiative. o It focuses institution wide attention on improving student success in lower division courses by systematic course redesign with goals to engage students earlier, and more often, and to build capacity for self directed learning. The full range of student success initiatives span academic programs, student support services and instructional scholarship, and are organizationally supported by the Enrollment Management and Student Affairs division and the University College, launched in o These initiatives are designed to improve student academic achievement and rates of persistence into the second year and through to graduation. Student Participation 99 percent of first year students participated in one or more of the course based student success initiatives. 57 percent (1,716) of full time, first time (FTFT) students participated in targeted mentoring outreach efforts aimed at providing supplemental out of class academic and social support to students. 1. Examples of initiatives contributing to academic success and career opportunities Students at NAU participate in undergraduate research, internships and service oriented activities that build upon their academic success and enhance career opportunities. NAU campus and community based action research teams are groups of first year students, mentored by faculty and graduate students, carrying out local investigations on questions of community interest. The projects students work on range from community and school gardens to weatherization and energy efficiency improvements in low income neighborhoods. o Through project based, experiential learning students: Take ownership of their educational processes. Gain essential leadership, communication, and teamwork skills that support the academic and social aspects of the whole student. Cultivate the knowledge, dispositions, values, skills, and habits that promote civic agency and positive community change. Northern Arizona University Strategic Business Plan March 2015 Page 15 of 72

19 Generate vibrant relationships and collaborations. Engage respectfully and creatively across differences to create action and public work that advances sustainability. Students benefit academically through their action research team experience: Minority students who earned C grades or better show a 16 percent improvement in retention. Female students show a 9 percent improvement in retention. First semester GPA and first year cumulative GPA are 0.33 and 0.20 higher for participants. Overall, students completing with a C or better show a 7 percent improvement in retention. The probation rate is 6.2 percent lower for participants. Native American Student Services partners with University College to provide inclass peer mentoring and additional out of class assistance to students in First Year Seminar courses with focused content on indigenous peoples. o This new initiative brings together first year Native American students and others across campus in joint seminar action research team courses. With assistance from instructors and graduate assistants, students cultivate important skill sets for academic, social and professional successes. NAU Veteran Educational Transition Success program o Research and experience has revealed that the first year is the most critical in the successful transition of our new student veterans from the military to a university setting. o This fall, the Office of Military and Veteran Affairs introduced the Veteran Educational Transition Success program. VETS encompasses seven initiatives for The most significant part is the first year seminar and its associated action research team component. Those enrolled in the first year seminar are also participating in a community service volunteer project: NAU Food Drive or Community Veterans Resource Directory. Undergraduate research and creative activities o These high impact activities are documented to increase graduation rates, movement into graduate and professional programs and career placement. o NAU has established a university wide Office of Undergraduate Research and Creative Activity. The university wide Undergraduate Research Symposium extends scholarship beyond the science fields. Northern Arizona University Strategic Business Plan March 2015 Page 16 of 72

20 o Research is boosted by a combination of externally funded programs, internal funding (such as the Hooper Undergraduate Research Award), private philanthropy and curricular integration of research experiences. o The Interns to Scholars program is introducing research earlier in the student experience. Academic Year participation in undergraduate research More than 1,800 undergraduate students enrolled in independent research for credit, working with faculty mentors. Nearly 600 first year students participated in community based action research teams in freshman seminars. Approximately 150 undergraduate students worked in our research centers and institutes. Internal and externally funded student research funds supported 135 undergraduate students. NAU undergraduate student, Araceli Olivas, became the first NAU student to be selected in a national competition by the Council for Undergraduate Research to present research in the annual Posters on the Hill competition in Washington, D.C. In February 2015, we learned that another NAU student, Cedar Mitchell, was selected for this year s event. Capstones offer valuable hands on experiences. o Integrative learning experience required in all majors; in many programs, capstones take the form of project based learning, research or internships. o Capstones are an important element in ensuring career or graduate program preparedness. o A recent example of an interdisciplinary capstone experience: the Collegiate Wind Competition Team. NAU was one of 10 institutions across the U.S. invited to participate by the U.S. Department of Energy. The team comprised 23 students from six different majors in engineering, business and science fields. A design challenge and team based project prepared graduating students to move into an important regional industry sector. We have just learned that NAU has been invited to participate for a second year in this national competition. Northern Arizona University Strategic Business Plan March 2015 Page 17 of 72

21 Advising as learning involves cutting edge approaches to personal and academic development that address 2020 goals by reducing time and credits to degree. o Advising is becoming more student centered and personalized, utilizing analytics for predictive purposes and developing tools for student exploration and access. Information about the student s precollege background, and an inventory of their personal strengths and learning style, are used to advise students about best fit support and transition programs. o Gateway Student Success Center is formalizing a model of advising as learning, with explicit learning outcomes and formal assessment of how students develop self efficacy and autonomy over time. Learning Communities enhance retention through academic and co curricular connections. o They have a long, successful history at NAU since 1996 and leverage existing residential campus assets. Residential Learning Communities with paired courses and out of class study groups, faculty dinners, and field trips further enhance students' academic experiences, persistence and progress to graduation as evidenced through formal assessment. o The number of students enrolled in the thirty six Residential Learning Communities on campus for this academic year exceeds 950 students. o The university is now expanding to non residential learning communities. Peer and staff mentoring and first generation initiatives and programs through EMSA support students academically by promoting self guided learning, monitoring academic progress, goal setting and resource use. 2. Assessment and progress of student success initiatives Careful analysis demonstrates the overall effectiveness of NAU s student success initiatives. Student success initiatives include those efforts geared toward increasing student academic performance and persistence to graduation. Such efforts include peer and staff mentoring as well as course linked and out of class academic support. o These efforts make use of results of historical and predictive analyses through which risk characteristics related to prior academic performance and demographics have been identified. Northern Arizona University Strategic Business Plan March 2015 Page 18 of 72

22 o Additionally, predictive psychosocial measures are gathered through the Student Strengths Inventory and used in tandem with other measures to identity those at risk of poor academic performance or leaving. The SSI is part of a larger suite of software used by staff to coordinate outreach to students at risk, monitor their participation in success programs and communicate across campus departments. o Outreach to individuals at risk as well as implementing supportive programs serving particular groups are strategies that make use of predictive analyses. They have resulted in increased academic performance and retention for students who participate. Assessment drives improvements and progress is periodically measured. The following figures demonstrate effectiveness of many student success initiatives. Approximately 50 percent of the students completing the summer 2014 Mathematics Peak Performance program who attempted to improve their math placement did so with this program. 57 percent of full time, first time (FTFT) students participated in targeted mentoring outreach efforts aimed at providing supplemental out of class academic and social support to students. o 40 percent participated in targeted mentoring programs such as Peer Jacks, Student Support Services, Residential Learning Communities, Student Success Coaching, Native American Student Services Scholars, STAR Bridge Program and the Honors Program. Our analyses found higher retention rates and academic performance. o An additional 17 percent met with staff as a part of Freshman Outreach, a highly coordinated effort to reach first generation, low income, ethnic minority, out of state, and/or below average core high school GPA students early in the first semester. During meetings, students review collegereadiness survey results and become acquainted with campus resources related to their needs and interests. First Year Learning Initiative o 98 percent of FTFT students, virtually all first year Mountain Campus students, participate in one or more of the 80 courses certified by the First Year Learning Initiative (FYLI). Half of NAU s first year serving courses are FYLI certified. o FYLI course designs incorporating active learning approaches in class are used in conjunction with the GPS academic alerting system, a system where instructors can swiftly and efficiently message particular subgroups of Northern Arizona University Strategic Business Plan March 2015 Page 19 of 72

23 students in their large courses, request or suggest next steps for students. The FYLI program resulted in significant reduction in D s, F s and Withdrawals (DFW) and prevented approximately 800 failed courses per year. In financial terms, the DFW reduction represents approximately $1.3 million in saved costs to students o Through its Peer TA program, FYLI is one of the largest student employers on campus, providing important avenues for financial support and professional development to the 400 undergraduate students who serve as Peer TAs each year. In a 2014 survey, 38 percent of respondents indicated that being a Peer TA influenced their decision to remain at NAU. Lumberjack Mathematics Center continues to grow with ~ 3,400 students enrolled in classes in the fall 2014 semester; up from ~3,100 students in fall 2013 and ~1,900 in fall o The launch of the Lumberjack Mathematics Center has further helped us to reduce the DFW rates in introductory courses such as Math 114 to its lowest level. Progress in student success in high enrollment courses o According to the Gardner Foundation Gateways to Completion project, fouryear institutions nationwide have DFW rates greater than 30 percent for 32 percent of high enrollment courses. At NAU in the period of 2010 through 2013, less than 3 percent of our high enrollment courses have DFW rates that high. Supplemental Instruction o 27 percent of FTFT students participate in Supplemental Instruction for key gatekeeper courses with improved course outcomes as a result. Average Course Grade DFW Rate Non Participants SI Participants Non Participants SI Participants All Students in SI Supported Courses % 15.5% Men % 16.0% Women % 13.0% Native American % 28.0% First Generation Students % 18.0% Arizona Students % 13.5% o NAU s SI program is one of the largest programs in the country. For AY , the SI program served a total of 5,803 students with 60,113 visits to SI sessions. Northern Arizona University Strategic Business Plan March 2015 Page 20 of 72

24 For fall 2014, the number of students with visits to SI sessions increased 9 percent from the previous fall. Tutoring at Student Learning Centers, Enrollment Management and Student Affairs o Over 3,300 students participated in 23,391 tutoring sessions in AY ,300 students participated specifically in the Math Achievement Program for specialized math tutoring. o Statistical analysis has demonstrated that use of tutoring is associated with higher first semester GPA (fall 2013 full time, first time Flagstaff cohorts) and one year retention for freshmen (fall 2012 and fall 2013 FTFT Flagstaff cohorts). F. International education In international education, progress is being made on new and existing initiatives. NAU has had a long tradition of welcoming international students. Current enrollment of 1,246 students (fall 2014) is the largest in the institution s history. The top three sending countries are China, Saudi Arabia and Kuwait. This reflects the demographics of international students in the United States. Over the long term, we see a critical mass of international students at the university supporting and maintaining its transformation into a global campus. The financial contributions they will make cannot be understated. Just as importantly, however, their presence will enrich the academic milieu, provide opportunities for the exchange of diverse ideas and experiences, and support the university s growth as a research institution. The international student strategy was articulated in recommendations arising from the Task Force on Global Education convened in Not only have all of the recommendations been met, but in some instances they have been exceeded. International students, like domestic students, are now the beneficiaries of a global learning experience, being prepared for the new and evolving challenges that exist in a globally interconnected and interdependent world. The Visiting Scholars program and our faculty teaching internationally improve global readiness of all our graduates. The International House, which now exists in repurposed residence halls, provides a global learning community for international and domestic students, supported by a Northern Arizona University Strategic Business Plan March 2015 Page 21 of 72

25 wide variety of cross cultural programming. This will soon be housed in the International Pavilion, a LEED Platinum facility and net zero building being built adjacent to the International House. The current strategy is driven by the desire to have a critical mass of international students enrolled at the university. This is further underscored by the Enterprise goals to substantially increase student enrollment and baccalaureate degree attainment by To meet the goal of 2,000 international students by 2020, the university employs multiple recruiting approaches, including dual degree agreements with partner universities overseas, participating in educational fairs overseas, collaborating with agents who serve as important conduits of international students to universities in the United States and maintaining ties with international alumni around the world who can be effective and credible agents to direct international students to NAU. G. Challenges and risks Key 2020 metrics such as first time, full time retention and six year graduation show inconsistent progress as the university increases its access for students entering college with diverse needs and offers students new options to earn a degree. Northern Arizona University is investing considerable resources to student success programs and assessment of the effectiveness of the programs. In the future, the university will expand its participation in analytics efforts such as the Predictive Analytics Reporting (PAR) Framework. The PAR Framework is a non profit provider of analytics delivering actionable institutional specific models to member institution. The university is also investigating engaging in other analytic initiatives focused on efficient course sequences and effective financial aid interventions. Northern Arizona University Strategic Business Plan March 2015 Page 22 of 72

26 Metric 8. Freshman Retention Rate 80% 75% 70% 65% 60% 72.2% 69.3% 76.1% 71.5% 72.8% 71.7% 73.6% (preliminary ) Projected* 78.0% 55% 50% NAU is expanding and refining its student retention and success initiatives. Progress has been made and the university expects to succeed in reaching its 2020 goal. More than half of our baccalaureate recipients did not enter the institution in one of our Freshman cohorts, so we track a range of retention metrics in our analysis of student retention and student success beyond the full time, first time students that this metric tracks. Projected represents Enterprise metric projections established in Metric 7. Six year Graduation Rate 70% 60% 50% 40% 30% 20% 10% 0% 52.6% 50.0% 49.2% 51.6% 49.1% 51.6% (preliminary) Projected* 60.0% The estimated rate of 51.6 percent reflects the class that entered in fall Many student success programs were added over the last six years that we expect will have a positive impact on our six year graduation rate. NAU also analyzes the progress and success of its students using the National Clearinghouse and Voluntary System of Accountability data. These more complete data sets track students who graduate elsewhere or are still enrolled working to finish a degree. For example, many Arizona students enroll at NAU for their first year or two and then transfer to ASU or UA for programs not offered at NAU; because of job opportunities in Phoenix or Tucson; and (they tell us) because Flagstaff s climate was more extreme than expected. Projected represents Enterprise metric projections established in Northern Arizona University Strategic Business Plan March 2015 Page 23 of 72

27 Other challenges and risks relate to broader societal trends The changing nature of student demand in our Extended Campuses sites: increasing competition requires enhanced student outreach and constant modernization of curricular delivery while maintaining the NAU hallmark of individual attention. State debate over academic standards which inhibits academic preparation in the K 12 pipeline in Arizona. Rigorous K 12 programs for all students and an increased college going culture are needed in Arizona and elsewhere in the western United States. Growing financial stresses on students. Challenge of preparing health care providers for the entire state given the need to concentrate expensive program infrastructure in urban areas. Challenge of increasing graduate enrollments given stagnant nationwide trends and the resulting competition for qualified candidates. Northern Arizona University Strategic Business Plan March 2015 Page 24 of 72

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29 III. RESEARCH ELEMENTS NAU aims to achieve nationally recognized research excellence by focusing on the following goals: Create new knowledge, make discoveries and innovate. Expand economic development in northern Arizona and across the state. Train students and engage them in research. Support research that addresses issues related to Native American populations. Develop the northern end of Arizona s biosciences and biomedical corridor. Achieve Enterprise metrics for research and technology transfer. Through each of these goals, NAU s research enterprise is building relationships that impact the region and the state. A. Research successes NAU increased its research expenditures by 20 percent from FY 2009 to FY 2014, a period during which our tenure eligible faculty numbers have decreased, teaching loads have increased and federal budgets for research have shrunk. This growth reflects the strategies NAU has successfully implemented for expanding research productivity. Over the past five years, NAU invested in new research centers, increased funding for intellectual property development and technology transfer and has brought highly productive researchers into the state. Within two years, we expect to see accelerated growth in research and intellectual property revenue as the targeted investments we are making now generate additional returns. Key research fields: Microbiology and bioengineering Health sciences Environmental sciences and sustainability Forest restoration and conservation management Astronomy NAU received its first W.M. Keck Foundation award ($1 million) to support Regents Professor Kiisa Nishikawa s research on mechanisms of muscle contraction and to support the establishment of a new Center for Bioengineering Innovation. The center s primary mission is to generate intellectual property that improves lives and fosters economic growth in Arizona. One major project being conducted in the center is expected to result in the development of more advanced prosthetics with motion that better replicates natural muscle movement. Northern Arizona University Strategic Business Plan March 2015 Page 25 of 72

30 The Center for Microbiology Genetics and Genomics (MGGEN) expanded its research to investigate new pathogens and methods for early detection and improved responses to MRSA, influenza and valley fever. The partnership between NAU and TEGN has generated productive collaborations between TGEN North and MGGEN to address a number of infectious diseases and generate new intellectual property. The College of Health and Human Services received $6 million from the NIH to promote health and resilience in American Indian communities through the NAU Center for American Indian Resilience. The primary goal of CAIR is to reduce health disparities among American Indians in Arizona and across the United States. The Center is a partnership among NAU, The University of Arizona and Dine College. NAU s NIH Partnership for Native American Cancer Prevention Center (and in partnership with the University of Arizona) was renewed in 2014 for a third five year cycle. This NIH Center has brought in $15 million to date in funded research and professional training for NAU. NAU established the Minority Health and Health Disparities International Research Training Program with a $1.3 million grant from NIH. This interdisciplinary grant provides minority students with international research experiences exploring issues relating to health disparities among the world s indigenous populations. NAU s new Translational Health Research Initiative (THRIVE) expands health research efforts at NAU and throughout the northern Arizona region. This program positions NAU as a regional anchor for the northern end of Arizona s biomedical corridor and extends our basic research activities into clinical research settings for the first time. THRIVE has generated $400,000 in funding from the Flinn Foundation, is currently submitting additional proposals, and has strengthened the research partnership between NAU and Flagstaff Medical Center. B. Recent investments and progress NAU has acquired high performance computing capacity. The Linux based computing cluster, called Monsoon, enables NAU researchers to solve complex research problems using applications that require high bandwidth and very high computing capabilities. Monsoon allows NAU researchers to work with extremely large datasets in reasonable timeframes and at reduced cost. NAU has recently established new research centers in areas of strategic research strengths. o The Center for Ecosystem Science and Society investigates the responses of Earth s ecosystems to environmental change, from earth s ecosystem to microbial ecosystems, translating discoveries to help improve lives. In FY 2014, the center recruited two world class researchers to NAU, Ted Schuur and Michelle Mack. Northern Arizona University Strategic Business Plan March 2015 Page 26 of 72

31 o The Center for Bioengineering Innovation is building NAU s capacity to conduct nationally recognized research, to translate discoveries into real world applications that improve lives, and to provide cutting edge training opportunities to enhance Arizona s biotechnology workforce. o The Landscape Conservation Institute combines research on landscape management with policy expertise to build partnerships between ranchers and environmentalists to effect rangeland conservation. The work is supported in part by the Doris Duke Foundation and by community partnerships including the Diablo Trust Southeast of Flagstaff and the Kane Ranch in far Northern Arizona. The College of Engineering, Forestry and Natural Sciences has established a new research intensive Informatics and Computing Program to move interdisciplinary computation and data intensive research into the forefront of every discipline at NAU and link research with informatics centric educational elements across campus. By summer of 2015, seven research intensive faculty will have primary assignments in this program. NAU has increased its Intellectual Property and Tech Transfer portfolios consistently between FY 2010 and FY 2014 with increased proof of concept funding and the addition of the RAPIDLab prototyping lab. o The number of invention disclosures transacted from FY 2010 to FY 2014 increased by more than 150 percent. o NAU s patent portfolio more than doubled in size (from 7 to 16 patents). THRIVE will continue to expand the partnership between NAU and Northern Arizona Healthcare and seek out additional productive partners. This initiative promotes additional collaborative research and positions NAU as a regional anchor for the northern end of Arizona s biomedical corridor. NAU has begun to recruit high productivity research intensive faculty to expand our research capacity. In its second year, this program of targeted hires continues to attract major talent to Arizona. NAU s formal partnership with Lowell Observatory in the Discovery Channel Telescope and a recent faculty addition in Astronomy are resulting in increased funding, stronger participation in the region s observatory based economic sector and our plan for a strategic new Ph.D. program with a primary focus on near Earth objects and our solar system. C. Research challenges Increased enrollment has created high teaching loads for faculty at a time when we are challenged to double research activity. Northern Arizona University Strategic Business Plan March 2015 Page 27 of 72

32 Limited research space and a limited number of Ph.D. programs affect faculty recruiting efforts and overall research productivity. Cuts to state funding increase the challenge to sustain research growth. Federal agency budget cuts have resulted in an extremely competitive environment for obtaining federal research funds. Increases in regulatory requirements challenge faculty and require continual investment of resources in research support infrastructure. $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 13. Research & Development Expenditures (in $1,000s) $26,183 $28,803 $30,785 $28,100 $31,590 (preliminary) $30,516 Projected $43,432 Despite the challenges already noted, we are making steady progress on our research metrics goals. Recent and planned investments in faculty, research centers and other programs are expected to result in increased external research funding and progress towards our 2020 goals. Projected represents ABOR metric projections established in D. Strategies to achieve 2020 goals in research expenditures We have undertaken a number of steps to significantly enhance our research enterprise. These steps will lead to growth, even in a difficult climate. The following strategies reflect several actions implemented recently, and we will continue to develop these actions in the coming years. We are confident that these strategies have us on the right track to further develop our research capacity. Emphasize and reward high impact projects Support the development of large scale, interdisciplinary research projects. Northern Arizona University Strategic Business Plan March 2015 Page 28 of 72