Discussion Overview. Background: The Challenges of Auditing Academics 9/14/2015
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1 Auditing Academic Processes PROACTIVELY ADDRESSING THIS EMERGING RISK AREA Leigh Goller, CPA Director of University Audit Duke Office of Audit, Risk and Compliance Raina Rose Tagle, CPA, CISA, CIA Partner, National Higher Education Consulting Practice Leader Baker Tilly September 28, 2015 Discussion Overview Background: The s of Auditing Academics Industry Trends and Recent Cases of Academic Fraud Auditing es Demonstrated via Case Studies On the Horizon: Link Emerging Risks with the Audit Plan Resources Questions and Comments Contact Information 2 Background: The s of Auditing Academics In the past, colleges and universities viewed academic quality as an intangible impossible to measure and in the eye of the beholder. The current premise of academic quality assurance is entirely the opposite - that it is possible to assemble meaningful and generalizable evidence. - Peter Ewell, Trusteeship Magazine,
2 The s of Auditing Academics Ownership and Accountability Issues Shared Governance Evidence and Quantified 4 What s at Risk? Reputation Academic Integrity Alumni and Community Relations Accreditation Enrollment Tuition Rankings Financial Reputation Monetary Losses Regulatory Penalties 5 Industry Trends and Recent Cases of Academic Fraud 6 2
3 Current Industry Trends Institutional Scandals Governing Boards Active Oversight Shared Governance among Faculty and Staff Internal Audit Assessments 7 Recent Cases of Academic Fraud University of North Carolina Chapel Hill (UNC) In 2012, academic anomalies were reported, including classes that did not meet and unauthorized grade changes. Florida State University In 2006 and 2007, instructor and tutor accused of providing test answers to students. NCAA sanctions led to loss of wins, probation and loss of scholarships. Auburn University In 2006, Sociology Department accused of providing classes for over a dozen athletes with little or no work required. Investigation found overly accommodating to all students. 8 Recent Cases of Research Misconduct Duke University In 2010, faculty misrepresented credentials, sponsor withheld hundreds of thousands of dollars in funding and retracted nine research papers. Pennsylvania State University In 2010, professor accused of defrauding federal sponsors was charged with making false statements, money laundering, and fraud. He received 41 months in prison and a fine of nearly $650,
4 Audit es Demonstrated via Case Studies Baker Tilly s risk assessment model and its protocols for gap analysis and evaluation of internal controls applicable to academic integrity should be considered as best practices for reviewing and protecting the academic enterprise. - The Report of the UNC Board of Governors Academic Review Panel, February Academic Policies and Procedures Review Trustees requested academic integrity risk assessment Created risk matrix, reviewed policy and procedures, and conducted gap analysis Risk assessment noted as system-wide best practice 11 Academic Policies and Procedures Review Registration Course Instructor Academic Administration 12 4
5 Academic Irregularities Review Needed to determine the extent of anomalous courses and grade changes Developed and carried out analysis of 20 years of academic data to identify red flags Identified more than 200 anomalous classes 13 Academic Irregularities Review Data Analytics for Anomalous Course Identification Red Flag Identification Instructors with a Abnormally high considerable number Prominent clustering grades, substantially of of athletes, especially higher classes exceeding the from revenue sports than each student s usual course load GPA Numerous grade changes, especially of permanent grades Unusually high numbers of DROP/ ADDS in enrollment No classroom for meetings, typically with the notation TBD or similar No time scheduled for class meetings, typically showing 12:00 noon to 12:00 noon (the default entry) 14 Undergraduate Admissions Mission to build a competitive, diverse and unbiased undergraduate population Assessed the process and controls as compared to the mission, goals and objectives Validated workflow integrity and consistency with mission; identified opportunities to improve sensitive data protection 15 5
6 Institutional Data Reporting Risk of misreporting of student admissions and placement data in both undergraduate and graduate schools Inventoried reporting to external organizations Reviewed the design of controls to determine whether quality assurance processes for data reporting were in place Applied a risk-based approach to select areas to perform detailed testing Provided recommendations to improve information oversight and strengthen internal controls to reduce the risk of misreported data 16 Student Behavioral Assessment Services Students are under increasing pressure related to academic performance and social relationships Evaluated the process to receive, evaluate and address student behavioral concerns Validated risk mitigation strategy and prompted discussion regarding outreach, themes and available resources 17 Student Athlete Academic Eligibility Certifying NCAA compliance while ensuring a high quality education for student athletes Evaluated institutional academic eligibility management and compliance with NCAA requirements Identified an opportunity to provide better information to academic advisors and improve tracking provided to the Registrar for NCAA certification 18 6
7 On the Horizon: Linking Emerging Risks with the Audit Plan 19 Faculty Governance Aligning faculty interests with institutional priorities and resources Evaluating the role of faculty governance committees to promote and carry out academic priorities and programmatic approvals Identifying opportunities to improve communication and align actions with strategic plan and resource allocation 20 Adjunct Faculty Increasing risk of collective bargaining arrangements Utilizing data analytics to reveal risk variances within the institution (teaching load, pay equity, etc.) Supporting institutional priorities to mitigate employment risks 21 7
8 Resources 22 Resources 1) Baker Tilly Report on Academic Integrity Internal Controls Review. < Procedures-Report Final.pdf> 2) "1966 Statement on Government of Colleges and Universities." AAUP.org. American Association of University Professors, n.d. Web. 24 Apr < 3) "2012 Edition of the Principles of Accreditation: Foundation for Quality Enhancement." Southern Association of Colleges and Schools Commission on Colleges, 1 Jan Web. 24 Apr < 4) "Academic Dishonesty - Law and Higher Education." Law and Higher Education.com. Law and Higher Education, 21 Nov Web. 24 Apr < 5) "AGB Board Outlines Principles for Board Engagement in Overseeing Educational Quality." Association of Governing Boards.com. Association of Governing Boards, 4 Apr Web. 24 Apr < 6) "Board Oversight of Educational Quality." Association of Governing Boards.com. Association of Governing Boards, n.d. Web. 24 Apr < 7) "Definition of Research Misconduct." Office of Research Integrity. Department of Health and Human Services, n.d. Web. 24 Apr < 8) Huckabee, Charles. "New Panel Will Look Into Academic-Fraud Scandal at UNC-Chapel Hill." Chronicle of Higher Education.com. Chronicle of Higher Education, 16 Aug Web. 23 Apr < 9) Lederman, Doug. "Another Case of Academic Fraud Involving Athletes Inside Higher Ed." Inside Higher Ed.com. Inside Higher Ed, 21 Aug Web. 24 Apr < 23 Resources (cont.) 10) Olson, Gary A. "Exactly What Is 'Shared Governance'?" Chronicle of Higher Education.com. Chronicle of Higher Education, 23 July Web. 24 Apr < 11) "Sociology Chairman at Auburn U. Is Accused of Fixing Grades for Athletes." Chronicle of Higher Education.com. Chronicle of Higher Education, 14 July Web. 23 Apr < 12) Thamel, Pete. "Top Grades and No Class Time for Auburn Players." New York Times.com. New York Times, 14 July Web. 23 Apr < 13) Thomas, Katie And Ken Belson. "Documents in Fraud Case Made Public by Florida St." The New York Times.com. The New York Times, 15 Oct Web. 23 Apr < 14) "University of Missouri-Columbia Office of the Provost: Academic Audit FAQs." University of Missouri-Columbia Office of the Provost: Academic Audit FAQs. N.p., n.d. Web. 20 Jan < 15) Wolverton, Brad. "UNC s No-Show Classes Catered Mostly to Athletes." Chronicle of Higher Education.com. Chronicle of Higher Education, 9 July Web. 23 Apr < 24 8
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