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Siena College is a learning community advancing the ideals of a liberal arts education, rooted in its identity as a Franciscan and Catholic Institution. A Proposal to the Board of Instruction at Siena College Master of Science in Accounting Degree Department of Accounting and Business Law School of Business Date: November 15, 2007 Accounting Program Review Committee Members from Siena College Department of Accounting and Business Law: Margaret R. Garnsey, M.S., Ph.D., CPA Associate Professor of Accounting Andrea W. Hotaling, M.S., CPA Associate Professor of Accounting Katherine J. Silvester, Ph.D., Committee Chair Associate Professor of Accounting Walter P. Smith, Ph.D., CMA Assistant Professor of Accounting Leonard E. Stokes, III, M.S., Ph.D., CPA, CMA Professor of Accounting External Reviewers: Adrian P. Fitzsimons, Ph.D., CPA, CMA, CFA Professor, Accounting and Taxation The Peter J. Tobin College of Business St. John’s University 8000 Utopia Parkway Bent Hall, Room 364 Queens, New York 11439 email@example.com 718-990-1868 Victoria L. Shoaf, Ph.D. Chair and Associate Professor School of Accounting and Taxation The Peter J. Tobin College of Business St. John’s University firstname.lastname@example.org 2 EXECUTIVE SUMMARY The Accounting Program at Siena College has a long history of graduating significant numbers of high quality students. The Bachelor of Business Administration in Accounting was one of the original degrees awarded by Siena College in 1935. Since that time, over 6,000 accounting degrees have been awarded to students – more than in any other major at Siena. Currently, over 25% of all School of Business and 12% of all Siena students are declared Accounting Majors. The Accounting Program is currently faced with an extremely critical and time- sensitive decision – how to adapt our programs to the 150 credit hour educational requirement for the CPA exam that takes effect in New York State on August 1, 2009. Our competitors have already put graduate programs in place and are aggressively marketing these programs. As a result, we now find ourselves at a significant competitive disadvantage in terms of attracting talented students into our 120-hour programs. In this proposal, we have carefully analyzed the options available to us, in terms of our market position and institutional Mission. As a result of the foregoing analysis, we strongly recommend that Siena College move quickly and decisively to establish a Master of Science in Accounting Program. Our proposal also delineates how this MS graduate program can be combined with our current BS undergraduate program to also provide our students with the option of a combined BS/MS program. The following proposal provides a context for our analysis by detailing the history, size, and scope of the Accounting Program at Siena College. A detailed analysis of input from Focus Groups of our constituencies (students, employers, faculty, and administration) was conducted and the results are reported in Section VIII. Our SWOT analysis also carefully considers and discusses our Strengths, Weaknesses, Opportunities, and Threats. Our BS/MS recommendation is also supported by the External Reviewers who participated in the Accounting Academic Program Review that was recently completed. As a result of their review, the External Reviewers have strongly recommended that the Accounting Department develop and implement a Combined BS/MS Degree in Accounting. Accordingly, we have developed and are proposing a stand-alone MS Program that also seamlessly blends with our current BS Program. As a result, we can offer students both a Combined BS/MS Degree Program and a stand-alone MS Degree Program. The proposed MS in Accounting is designed for a specific niche market – students seeking to enter Public Accounting. Incoming accounting students consistently believe that they will ultimately work in Public Accounting. Our proposed 3 Combined BS/MS Degree in Accounting will allow such students to become educationally-qualified to enter their chosen profession, without having to leave Siena to do so. The establishment of the MS in Accounting Program, with its Accelerated Graduation and Professional Experience Internship Semester Options for BS/MS students, should significantly enhance our ability to successfully recruit talented students. It is important to note that, in reality, as accounting students progress through their undergraduate education, they become aware of the diverse opportunities that are available to Accounting Majors, as well as the challenges associated with entering Public Accounting. As a result, only about 40% of Siena accounting undergraduates actually choose a Public Accounting career. Our proposed MS and BS/MS in Accounting Programs are designed for this specific group of talented accounting majors that ultimately decide to pursue the CPA certification. However, the proposed MS Program is also flexible enough to allow for enrollment of part- time graduate students. The best accounting programs in the country maintain Separate Accounting Accreditation for their Accounting Programs. The establishment of the MS in Accounting Program at Siena will not only support our current School of Business AACSB Accreditation, it will also prepare us to seek Separate Accounting Accreditation for our own accounting programs. The Incremental Cost Analysis in Section IX indicates that an MS Program with a cohort of 20 highly-talented students is financially feasible. If the MS in Accounting Program is not funded, our accounting program will join a cohort of low level proprietary schools in New York State. In addition, we would expect the stronger accounting students to choose our competitors’ 5-year BS/MS Accounting Programs over Siena’s 4-year BS and BBA Programs, which require a student to transfer in his 5 year of study. As a result, if the MS in Accounting is not funded, we expect a significant decline in both the numbers of incoming accounting students, as well as a significant decline in the quality of the average Siena accounting student. Ultimately, the relevant comparison is not between funding or not funding the MS in Accounting Program. The relevant comparison is between funding the MS in Accounting Program or explicitly positioning the Siena Accounting Major as a smaller and less competitive program in our marketplace. The Siena MS in Accounting Program is financially feasible, vigorously competitive, and supports our current students in their professional aspirations. We urge the Board of Instruction to carefully consider and approve our Proposal. We look forward to discussing our Proposal with the Board and all other interested parties. 4 TABLE OF CONTENTS Section Content Page I Historical Development of the Accounting Program 9 II Size and Scope of the Accounting Program 13 III External Demand for the Accounting Program 18 IV Internal Demand for the Accounting Program 22 V Quality of the Accounting Program: Inputs and Processes 24 VI Quality of the Accounting Program: Outcomes Assessment 34 VII Impact & Justification of the Accounting Program 35 VIII Opportunity Analysis of the Current Accounting Program 37 • Faculty SWOT Analysis 37 • Focus Groups 39 • Strategic Analysis and Possible Responses 43 IX Proposed Master of Science in Accounting Program 53 • Advantages to Establishing the MS 53 • Concerns about Establishing the MS 56 • Projected Size of Program 59 • Projected Incremental Cost Analysis 61 • Interviews of Administrative Units 65 • Faculty Teaching Loads & Flexible Scheduling 66 • Program Course Scheduling 68 • Conclusion 70 X Recommendations and Biographies of External Reviewers 71 XI Program and Curriculum Details for the Proposed Accounting Programs 74 • Proposed Revised Bachelor of Science in Accounting76 • Proposed Master of Science in Accounting 79 5 TABLE OF CONTENTS, continued Section Content Page XII Bibliography 89 XIII Appendices 90 6 LISTING OF TABLES Table # Table Name Page 1 Number of Accounting Degrees/Certificates by Type 13 2 Total Number of Accounting Graduates 14 3 Number of Undergraduate Degrees Earned Each Academic Year in the School of Business 15 4 Degrees Awarded Between 1941 and 2007 by Siena College 15 5 Most Wanted Degrees (Ranked by Employer Demand) 18 6 Employment Statistics for Undergraduate Accounting Majors In School of Business 19 7 Accounting Student Initial Job Placement by Market Segment 20 8 Number of Students Completing the Business Minor or Accounting Certificate Program 23 9 Full-Time Accounting and Business Law Faculty 25 10 Tenure Status of Current Full-Time Accounting Faculty 26 11 AQ and PQ Status of Current Full-Time Accounting Faculty 26 12 Projected 2008 Level Full-Time Accounting Faculty 27 13 Classes/Sections Taught by Adjunct Faculty 27 14 Combined SAT Scores of Incoming Freshmen in the School of Business 29 15 Transfer Student Statistics 31 16 Teaching Statistics For Accounting Courses 32 17 Summary of Departmental Faculty SWOT Analysis for the Accounting Program at Siena College 38 18 CPA Focus Group Key Points 39 7 LISTING OF TABLES, continued Table # Table Name Page 19 Corporate, Not-For-Profit, and Governmental (CNG) Focus Group Key Points 41 20 Accounting Student Focus Group Key Points 42 21 Summary of the NY State Education Requirement for Licensure, Effective August 1, 2009 43 22 Registered Accounting Programs in New York State 47 23 Registered Accounting Programs In New York State 50 24 Levels/Types of Registered Accounting Programs in New York State 50 25 Rough Estimate of Annual Enrollment in MS Degree Program: By Hiring Segment of Industry (Output Approach) 59 26 Rough Estimate of Annual Enrollment in MS Degree Program: Siena Students Qualifying for the MS Degree Program By Overall Grade Point Average (Input Approach) 60 27 Estimated Incremental Cost of Establishing an MS in Accounting61 28 Administrative Unit Interviews Key Points 65 8 SECTION I HISTORICAL DEVELOPMENT OF THE ACCOUNTING PROGRAM Siena College. Siena College was founded in 1937 by the Order of Friars Minor (OFM) as an educational institution of higher learning that would reflect their dedication to Franciscan and Catholic ideals. The Franciscan dedication to the ideals of higher education and learning is the foundation of both Siena’s liberal arts traditions and its educational programs. As expressed in Siena College’s most recent catalog, “...the Franciscan tradition of the pursuit of knowledge is likened to a dance: between the desire of the mind for understanding and intelligibility, and the longing of the heart for love and salvation….. In light of this Franciscan tradition, which emphasizes intellectual, social, and religious dimensions, Siena College seeks to foster scholarship, 1 service, and community” . This Franciscan legacy continues today and is reflected in the current Mission Statements of Siena College, the School of Business, and the Department of Accounting and Business Law (Appendix A). Today, Siena College continues as “a coeducational, independent, liberal arts college…governed by an independent, self-perpetuating Board of Trustees …. Siena is registered by the Board of Regents of the University of the State of New York. All programs are accredited by the Middle States Association of Colleges and Schools.”  In addition, the School of Business recently received accreditation by the Association to Advance Collegiate Schools of Business (AACSB) in December 2006. School of Business. Siena College is divided into three schools: the School of Liberal Arts, the School of Science, and the School of Business. The School of Business is the largest of the three schools. During the 2006-07 academic year, approximately 3,140 students were enrolled at Siena College, with 1,287 (41%) of them enrolled in the School of Business . The Accounting and Business Law Department. The Siena accounting degree was among the first degrees granted by Siena College in 1941. In that initial graduating class, 24 students earned undergraduate degrees from the School of Business. Of these 24 students, 17 Bachelor of Business Administration degrees were granted to accounting 2 majors. Historically, the Accounting Program has prepared students to enter the accounting market as educationally-qualified professionals ready to sit for the Certified Public 1 2Numbers in brackets refer to the numbered Bibliography at the end of the report. The other 7 degrees were Bachelor of Science degrees earned by economics majors within the School of Business. 9 Accounting Examination. Two bachelor degrees and one certificate program are currently offered in the Accounting Major. The Business Law portion of the curriculum supports the entire School of Business, and it does not offer separate degrees or programs. The Accounting Program is a significant component of both the School of Business and Siena College. Until the mid 1990s, the Accounting Program was the largest major in the Business School. Currently, Accounting is the second largest major (Marketing Management is the largest major). In terms of graduation data, the School of Business graduated 324 students in 2007, with 88 (27%) graduating as Accounting Majors/Certificate Holders. Historically, Siena College has awarded over 6,000 Accounting Degrees – more than any other major in the College. Additional details and statistics are discussed in Section II – Size and Scope of the Accounting Program. External Industry Changes in the Accounting Profession. Over the past two decades, significant discussions have been occurring within the accounting profession and its related professional organizations (such as the AICPA and various State Certified Public Accountant (CPA) Societies) regarding the minimum educational requirements for public accountants. Nationwide, most states have now enacted legislation that would require students to have at least 150 credit hours in order to be educationally-qualified for the CPA Exam. (See Appendix B for a listing of these states). New York State has now enacted legislation that will also require 150 credit hours of education in order to sit for the CPA Exam after August 1, 2009. The relevant New York State “Laws, Rules, and Regulations” and “License Requirements” are included as Appendix C. 4 Previous Accounting Program Reviews by the Department of Accounting and Business Law had recognized and seriously considered this emerging educational change within the accounting profession. Faced with this anticipated change, various strategic steps were previously taken by the Department, the School of Business, and Siena College. These steps resulted in the adoption of a Master of Business Administration (MBA) Degree in Professional Accounting in 1994 and the 120-hour Bachelor of Science (BS) Degree in Accounting in 2005. (The first BS Degree was issued in May 2006). The Siena College MBA in Professional Accounting degree was authorized by New York State in 1994, and it was intended to provide accounting students with additional education to meet the upcoming 150 hour educational requirement to enter public accounting. Unfortunately, admission to the program was suspended at Siena College in 2000 due to insufficient enrollments and anticipated AACSB accreditation issues for graduate programs. 5 3 4American Institute of Certified Public Accountants This report is organized into two sets of Appendices. Appendices A through Z are attached to this report. Appendix Z contains a listing of the Supplemental Materials, Readings, and Data that are not attached to this report, due to their volume. The actual materials that are included in Appendices Z1 – Z31 are contained in separate volumes, and they are 5The publication and research requirements for MBA faculty are significantly higher than those for undergraduate faculty. As discussed later, the publication and research requirements for specialized MS faculty are much less than for MBA faculty. 10 The Siena College BS Degree was approved by New York State in 2005. It was intended as a separate degree track that would offer additional electives and flexibility for accounting students who do not intend to immediately pursue CPA licensure. Such students typically either enter graduate school or begin their careers in corporate, governmental, or Not-For-Profit firms. It is also common for these students to seek certification in their field(s) of specialization. Appendix E contains a listing of the most common certifications sought by accounting professionals. Although one of the very last states to do so, New York State finally adopted the 150 hour rule, which will take effect on August 1, 2009. This 150-hour educational requirement is the major curricular issue now confronting the Accounting Program at Siena College. Based upon the upcoming August 2009 requirements, Siena College does not currently offer a licensure-qualifying 150 hour degree program in accounting. As a result, we were dropped from the New York State Inventory of Registered Programs as a licensed accounting program on August 1, 2004. A list of the 146 “Licensure- Qualifying” Registered Programs in New York State is included in Appendix D. Siena College does not appear on the list, although our accounting program competitors in New York are on the list. Academic Program Review Committee. In the interests of continuing improvement, Siena College formally reviews all academic programs on a 5-year basis. The last formal Accounting Program Review was conducted during the 2000-01 academic year. In October 2006, all members of the Department of Accounting and Business Law were invited to join and/or chair a committee to formally conduct our 5-year accounting program review. Five faculty members stepped forward, and the Accounting Program Review Committee met for the first time on November 7, 2006. The Committee is comprised of Professors Garnsey, Hotaling, Silvester (Chair), Smith, and Stokes. Professors Hotaling and Stokes had served major roles on previous accounting program review committees, and they provided an important historical context, as well as significant input, for the current review. Professor Garnsey was also involved and provided significant input to both the previous and current reviews. Professors Smith and Silvester, who were both hired after the 2000-01 Accounting Program Review, provided fresh viewpoints to the process. Overview of the Academic Program Review (APR) Committee Work. The APR has met extensively and continuously since its establishment in November 2006. As discussed in future sections of this report, the Committee sought input from all constituencies in our market: accounting students, Siena College administrators, departmental faculty, and employers from the public, corporate, and not-for-profit and governmental sectors. A preliminary internal focus group of all departmental faculty was held in December 2006 to structure and begin the SWOT (Strength, Weakness, Opportunity and Threat) analysis of our Accounting Program. Subsequently, three separate focus groups of accounting employers and accounting students were held on campus during the Spring 2007 semester to encourage creative brainstorming and input from these constituencies. 11 The Preliminary Report and Recommendations of the 2006-2007 Accounting Program Review were issued on August 26, 2007. Two external reviewers from St. John’s University visited our campus in September to review our recommendations, programs, resources, and processes. A short biography of each of these reviewers, Dr. Adrian Fitzsimons and Dr. Victoria Shoaf, are included in Section IX – Recommendations of the External Reviewers, along with a copy of their formal recommendations to our accounting program. In October 2007, the Accounting and Business Law Department voted unanimously to support the recommendations of the External Reviewers and the Accounting Program Review Committee to immediately move to establish a Master of Science Degree in Accounting at Siena College. This proposal to the Board of Instruction is a result of the 2006-2007 Accounting Program Review report and the recommendations of our External Reviewers. 12 SECTION II SIZE AND SCOPE OF THE ACCOUNTING PROGRAM The Department currently offers the following degree programs and certificates in Accounting. • 120 credit hour Bachelor of Business Administration • 120 credit hour Bachelor of Science • Accounting Certificate A short catalog description and/or planning guide for each current program are included in Appendix F. The Accounting Program is a major component of both the School of Business and Siena College. The Program has historically graduated significant numbers of students. Table 1 shows the number and types of accounting degrees and certificates conferred over the last 9 years. Table 1: Number of Accounting Degrees/Certificates by Type  Year BBA BS Total Certificates MBA Grand Total 2007P6 78 8 86 2 0 88 2006 73 1 74 5 0 79 2005 82 0 82 3 0 85 2004 68 68 1 0 69 2003 78 78 3 0 81 2002 71 71 5 5 81 2001 55 55 6 3 64 2000 63 63 6 18 87 1999 79 79 1 8 88 Table 2 shows the number of degree recipients from the Accounting Major, as a percentage of the School of Business and of Siena College. Over the most recent 3 years, the Accounting Program has generated an average of 25% of the School of Business graduates and 11% of Siena College graduates. 6P: Preliminary data obtained via telephone conversations with the Registrar’s Office in July 2007. 13 Table 2: Total Number of Accounting Graduates  Year Total Bus. Sch. Accounting Accounting Accounting Graduates Graduates Graduates Graduates7 as a % of as a % of as a % of Siena Bus. Sch. Siena College Graduates College 8 Graduates Graduates 2007P 86 44 % 27 % 12 % 2006 74 40 % 26 % 10 % 2005 82 47 % 23 % 11 % 2004 68 45 % 19 % 9 % 2003 78 46 % 23 % 11 % 2002 71 45 % 23 % 10 % 2001 55 41 % 22 % 9 % 2000 63 41 % 24 % 10 % 1999 79 44 % 28 % 12 % The Accounting Program has historically attracted significant numbers of students into the School of Business and Siena College. Table 3 shows the number of degrees earned per program per academic year over the past eleven years in the School of Business.As mentioned above, during the last 3 academic years, the Accounting Major has accounted for an average of 25% of the School of Business degrees earned. (On a weighted average basis over the past 11 years, Accounting has also generated 25% of the degrees earned in the School of Business.) In terms of the number of degrees earned, Accounting has been the second largest major in 9 of the 11 years cited in Table 3. 7 8This total excludes the MBA graduates. P: Preliminary data obtained via telephone conversations with the Registrar’s Office in July 2007. The 2007 data will not include August 2007 graduates, due to a change in reporting methodology in the Siena Fact Book. Previous years did include August graduates. For comparability purposes, the August graduates should be added to the Fact 9ook figures in this table. However, at the time of this report, the data was not yet available. The number of degrees earned differs from the number of graduates due to students who occasionally earn 10multaneous double degrees. Accounting tied with Finance in 2002 as the second largest major. Finance was the second largest major in 2004 (an uncommonly low year for accounting graduates). In addition, Finance edged Accounting out as the second largest major by 2 bachelor degrees in 1999. 14 Table 3: Number of Undergraduate Degrees Earned Each Academic Year in the School of Business  Concentration 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 Accounting 86 74 82 68 78 71 55 63 79 103 93 Economics 3 3 10 6 2 0 1 1 2 5 10 Finance 53 50 61 89 66 71 53 57 81 83 79 Marketing 200 156 209 201 196 166 139 138 120 110 147 Management Total – School 342 283 362 364 342 308 248 259 282 301 329 of Business Accounting as 25% 26% 23% 19% 23% 23% 24% 24% 28% 34% 28% a % of Bus. Sch. Accounting as a % of Bus. 25 % Sch. over last 3 years Accounting as a % of Bus. 25 % Sch. over last 11 years As shown in Table 4, Siena College awarded over 30,000 degrees between 1941 and 2007. Over 6,000 of these degrees were in Accounting. This represents approximately 20 % of all degrees awarded by Siena College. In fact, no other major has graduated more students than the Accounting Major at Siena College. Table 4: Degrees Awarded Between 1941 and 2007 by Siena College 11 Major Number of Degrees Totals Awarded BA American Studies 99 BA Classical Language 28 BA Classics 18 BA Classical Studies 0 BA Creative Arts 27 BA Economics 111 BA English 2,587 BA History 1,520 BA French 109 BA Spanish 170 11Historical data provided by the Registrar’s Office, August 2007. 15 BA Mathematics 108 BA Modern Languages 122 BA Philosophy 158 BA Political Science 1,457 BA Psychology 1,527 BA Pre-Law 1 BA Religious Studies 84 BA Social Sciences 54 BA Social Work 346 BA Sociology 1,818 Arts Total 10,344 BS Biochemistry 24 BA Biology 179 BS Biology 1,771 BS Chemistry 457 BS Computer Science 806 BA Environmental Studies 55 BA Mathematics 126 BS Mathematics 462 BS Physical Sciences 2 BS Physics 447 BS Pre-Dental 31 BS Pre-Medical 181 BS Science Education 2 Science Total 4,543 Between 1941 and BBA Accounting 6,022 2007, Siena College BS Accounting 8 awarded more degrees BA Economics 17 in Accounting, than in BS Economics 1,856 any other major. BS Finance 2,673 BS Marketing 517 BS Marketing & Management 4,811 Business Total 15,904 Siena College Total 30,791 16 Summary: Therefore, based upon the previous tables, it is important to remember the following current statistics when analyzing and evaluating the Accounting Program: • 1 out of every 4 Business Majors is an Accounting Student/Major • 1 out of every 9 Siena Students is an Accounting Student/Major • Cumulatively, Siena College has awarded more degrees in Accounting, than in any other major. 17 SECTION III EXTERNAL DEMAND FOR THE ACCOUNTING PROGRAM During the fall of their senior year, accounting majors must decide whether to enter the job market or apply to graduate school. Graduate School. Currently, the School of Business maintains articulation agreements with five different graduate schools. If students choose the graduate school route, they may take advantage of the articulation agreements that are in place. These provide various opportunities for our students to make the transition to the next level of education as seamlessly as possible. The five schools are Clarkson University, Pace University, St. John’s University, Union Graduate College, and the University at Albany, SUNY. A summarized list of these graduate program articulation agreements is included in Appendix G. Employers. The external industry demand for the accounting graduate has historically been very strong across all segments of the market: public accounting, corporate/private accounting, and Not-For-Profit/governmental accounting. The Spring 2007 Salary Survey of the National Association of Colleges and Employers indicates that the Accounting Degree is the “Most Wanted Degree” by Employers. Table 5: Most Wanted Degrees (Ranked by Employer Demand)  1. Accounting 2. Business Administration/Management 3. Computer Science 4. Electrical Engineering 5. Mechanical Engineering 6. Information Sciences and Systems 7. Marketing/Marketing Management 8. Computer Engineering 9. Civil Engineering 10. Economics/Finance The Survey also reports a nation-wide average starting salary for new accounting graduates as $47,975 for Private Accounting and $46,289 for Public Accounting. 18 Given this strong market demand, it is not surprising that the vast majority of accounting 12 majors at Siena College enter the job market immediately upon graduation.(This is consistent with the old 120-credit hour educational requirement for the CPA Exam.) Table 6 below shows the employment and graduate school trends for the last five graduating classes of Siena accounting majors. On average, 97% of accounting students were either employed or in graduate school at the time of each survey. In analyzing the data and making inferen13s, it is of concern that the response rates to the survey are so low for 2003, 2004 and 2005. Additional efforts in the Career Center indicate that the overall response rate for the Class of 2006 Survey will approach 60%, while the response rate for accounting majors will probably exceed 75%. Table 6: Employment Statistics for Undergraduate Accounting Majors in School of Business  Total # # & % % in % Grad- Accounting Respond Employed Grad Still uation Degrees and -ing School Looki Year* % ng Responding 14 2006P15 74 77% 57 52 91 % 7 % 2 %16 2005 82 35% 29 27 93 % 3 % 3 % 2004 17 68 44% 30 24 80 % 10 % 10 % 18 2003 78 35 % 27 26 96 % 4 % 0 % 2002 71 86% 61 58 95 % 3 % 2 % 2001 55 80% 44 43 98 % 0 % 2 % Average 92 % 5 % 3 % The Siena Career Center provides extensive support and services to both Siena accounting students and their prospective employers. Suzanne O’Connor, Associate 12This trend is also consistent with the placement experiences of other accounting programs nation-wide. Securing a position in a public accounting firm and sitting for the CPA Exam is the time-honored and traditional method for entering the Accounting Profession. 13For example, Table 6 shows that while 82 accounting majors graduated in 2005, only 29 of these 82 graduates responded to the survey. Of these 29 students, 27 were employed (93%). Of those 27 respondents, 22 respondents gave an employer name and could be further analyzed in Table 7. 14The Class of 2006 Career Status Survey did not close until July 20, 2007. Therefore, all figures from the 2006 15reer Status Report are based upon preliminary data collected by the Career Center, as of 7/9/2007. For 2001-2005, Year includes graduates of January, May, and August of the given year. 16or 2006, Year includes January and May, only. 17Row does not add to 100%, due to rounding. The Sarbanes-Oxley legislation on Internal Control Systems significantly affected the recruiting of our 2004 accounting graduates. Employer demand was higher than usual, our class size was smaller than usual, and a number of 18r students accepted high-paying positions in New York City. The reported response rate declined significantly between 2002 and 2003. There is no consensus on what caused such a dramatic decrease in the survey response rate. 19 Director for the Career Center, estimates that approximately 30% of the Center’s on- campus recruiting and interviewing activity is in support of accounting-related positions. The Siena College Career Center also collects and compiles annual placement data for each graduating class through follow-up telephone interviews with students. Table 7 shows the initial job placement of accounting graduates for the last 5 years, based on the Career Center “Career Status Reports.” Table 7: Accounting Student Initial Job Placement by Market Segment  Graduation Total Public Corporate Not-For-Profit Year Responses Accounting Accounting & Government with Firm Placements Placements Accounting 19 20 Name Placements 2006P 45 56 % 20 % 24 % 2005 22 36 % 36 % 27 % 21 2004 24 33 % 50 % 17 % 2003 25 60 % 24 % 16 % 2002 58 36 % 31 % 33 % 2001 43 40 % 37 % 23 % Average 44 % 33 % 23 % Recent trends show the percentage of Public Accounting placements increasing, and the percentage of corporate accounting placements decreasing. The Not-For-Profit and Government segment appears cyclical, and these cycles are typically related to New York State budgetary considerations. Anecdotal evidence suggests that the best accounting graduates of our program either attend graduate school or are actively and successfully recruited primarily by the public accounting firms. These trends are consistent with the following general placement observations: • Students’ first choice of employment is generally Public Accounting. If the CPA firms will hire them, the students will accept the positions. • Students who do not get a position with a CPA firm spill over into the Corporate and Not-For-Profit/Governmental sectors. • Corporate opportunities have declined during the last 2 years, following the Sarbanes-Oxley Internal Controls hiring blitz in 2004. During the employer 19The number of responses differs between Tables 6 and 7 because some survey respondents did not want to give an employer name. This allowed the respondent to answer the entire survey, including salary questions, while preserving their personal anonymity. For example, as shown in Table 6, 52 individuals were employed in 2006. However, 7 20dividuals did not give an employer name. Therefore, only 45 individuals gave usable responses for Table 7. 21P: Preliminary data obtained via telephone conversations with the Career Center. Row does not add to 100%, due to rounding. 20 focus group, this recent decline in hiring was cited by the participants from the corporate/private segment. Most participants felt that it was a temporary aberration resulting from “over-staffing” that occurred for Sarbanes-Oxley. • The Not-For-Profit/Governmental placements vary, depending upon what occurs within the other two segments, as well as government budgetary cycles. 21 . SECTION IV INTERNAL DEMAND FOR THE ACCOUNTING PROGRAM The Accounting and Business Law Department staffs three required core courses in the School of Business Core Program: BLAW 300: Business Law I ACCT 200: Financial Accounting ACCT 205: Managerial Accounting The Department also staffs two courses required for the Finance Major in the School of Business: ACCT 300: Intermediate Accounting 1 ACCT 305: Intermediate Accounting 2 Siena students (outside of the School of Business) may choose to complete a Business Minor. In terms of size, the Business Minor has been the minor that is most frequently chosen by Siena students annually for the last five years. In academic year 2006-2007 alone, 25 Business Minors were earned out of a total of 210 minors earned. This represents 12% of all minors earned. The Accounting Department staffs two courses that are required for the Business Minor: ACCT 200: Financial Accounting ACCT 205: Managerial Accounting. Students who have previously earned a Bachelor Degree, in a field other than Accounting, may choose to complete an Accounting Certificate in order to satisfy the accounting education requirement for the CPA Exam. The Accounting Certificate Program is typically taken by an older, non-traditional student on a part-time basis. 22 Table 8 includes information on students completing the Business Minor or the Accounting Certificate. Table 8: Number of Students Completing the Business Minor or Accounting Certificate Program  Year Total Number Total Total Number Total Enrollment of Business Enrollment 23 of Accounting in Accounting Minors in Business Certificates Certificate 22 24 Earned Minor Earned Program 2007 P 27 N/A 2 N/A 2006 31 39 5 14 2005 29 48 3 19 2004 28 54 1 14 2003 34 48 3 8 2002 18 49 5 10 22Earned Data is as of May of the year. 23Enrollment Data is as of the September of the year. 24P: Preliminary data obtained via telephone conversations with the Registrar’s Office in July 2007 23 SECTION V QUALITY OF THE ACCOUNTING PROGRAM: INPUTS AND PROCESSES Faculty. The Accounting and Business Law Department currently includes 9 full-time Accounting Faculty and 3 full-time Business Law faculty. Table 9 lists these full-time faculty and related relevant information, including whether each faculty member was Academically Qualified (AQ) or Professionally Qualified (PQ) during our recent AACSB accreditation visit. Table 10 shows a summary of the tenure status of the current full-time accounting faculty, and Table 11 shows a summary of the AACSB AQ/PQ faculty designations for the current full-time accounting faculty. 25Although the Business Law Faculty AQ/PQ designations are included in our Accounting and Business Law Faculty in Table 9, the Business Law Faculty members are not included in the AQ/PQ percentages for the Accounting Faculty by the AACSB. Therefore, we have not included the Business Law Faculty in our subsequent AQ/PQ calculations, tables, or analyses. 24 Table 9: Full-Time Accounting and Business Law Faculty Name and Rank Education License or Specialization Joined AQ PQ Rank Certification Siena Accounting: Carmody, Associate MBA CPA Audit 1979 Robert Farley, Visiting MBA CPA Financial 2006 Eugene Assistant Tax Garnsey, Associate Ph.D. CPA Financial 2001/199626 X Margaret MS Inform. Systems Hotaling, Associate MS CPA Tax 1980 X Andrea Raux, Assistant Ph.D. CPA Financial 1987 Donald MS CGFM Not-For-Profit Silvester, Associate Ph.D. Managerial/Cost 2003 X Katherine Smith, Assistant Ph.D. CMA Managerial/Cost 2004 X Walter Stokes, Professor Ph.D. CPA Financial 1986 Leonard MS CMA Fraud & Forensics Van Patten, Professor MS CPA Managerial/Cost 1975 X Michael Department Chair Business Law: Allegretti, Professor M.Div. Business Law 2000 X Joseph27 J.D. Religious Studies Dwyer, Professor J.D. Business Law 1987 X Paul Marcuccio, Assistant J.D. CPA Business Law 2004 X Elizabeth 26Professor Garnsey joined as a visiting faculty member in 1996 and as a full-time tenure track faculty member in 2001. 27Professor Allegretti has a joint appointment as Professor of Religious Studies. 25 Table 10: Tenure Status of Current Full-Time Accounting Faculty Type # of Faculty Tenured Faculty 6 Tenure-Track Faculty 2 Visiting Faculty/Open Line 1 1 Total 9 Table 11: AQ and PQ Status of Current Full-Time Accounting Faculty Type # of Faculty % of Faculty AQ 3 33 % PQ 2 22 % Neither 4 45 % Total 9 100 % AACSB guidelines for Undergraduate Programs require that we maintain a minimum of 50% AQ faculty contact hours, and a minimum of 90% AQ/PQ combined contact 28 hours. As Table 11 indicates, we do not meet either minimum with our current accounting faculty composition. Based upon the recommendation of and discussions with the AACSB Visit Team, the Accounting and Business Law Department was authorized to begin actively recruiting for two Academically-Qualified (AQ) accounting positions in January 2007. Unfortunately, neither position was successfully filled by the end of the academic year. Open Line 1 (in Table 10 above) is currently being filled by a Visiting Assistant Professor. The Department interviewed for both faculty positions at the American Accounting Association (AAA) meeting in Chicago in August 2007. The Department is currently conducting on-campus interviews and visits for one AQ position in Auditing and one AQ position in Advanced Financial Accounting. However, depending upon the demand/supply tensions in the accounting faculty market, the Department may need to fill one line with a less expensive Professionally-Qualified (PQ) candidate. Table 12 below indicates the AQ/PQ designations associated with our projected 2008 staffing level. This projection assumes: 29 • We hire 1 AQ faculty member • We hire 1 PQ faculty member • Two current Ph.D. faculty publish sufficiently to be reclassified from “non- qualified” to AQ status 28AACSB calculations are based on the credit contact hours (or sections) that each faculty member contributes (including non-qualified adjunct contact hours) . However, a rough estimate of percentages based on staffing levels is useful for discussing the AQ/PQ issue for our purposes. 2We are pleased to report that Professor Chester Breary, an Academically-Qualified new faculty member, accepted our employment offer on November 10. He will join Siena beginning with the Fall 2008 semester. 26 • All other AQ and PQ faculty maintain their Qualified Status Table 12: Projected Fall 2008 Level of Full-Time Accounting Faculty AQ and PQ Status 30 With 1 New AQ Hire, 1 New PQ Hire , & 2 Current Non-Qualified Faculty Converted to AQ Type # of Faculty % of Faculty AQ 6 60 % PQ 3 30 % Neither 1 10 % Total 10 100 % Only a few accounting courses are currently staffed with adjunct faculty. Information about these courses is listed in Table 13 below, for the 2006-2007 academic year. Under the old AACSB faculty qualification standards, part-time faculty were not classified as AQ, PQ, or Non-Qualified. Under the new standards for accreditation maintenance, the adjunct faculty will be subject to a participating/non-participating determination and qualification. This will require us to become even more selective in our use and choice of adjunct faculty. Table 13: Classes/Sections Taught by Adjunct Faculty Course Semester(s) Taught Adjunct Professor ACCT 200-13 Summer 2007 Phelan ACCT 205-33 Summer 2007 Fitorre ACCT 460-7E Spring 2007 Hancox ACCT 205-6E Fall 2006 Phelan ACCT 460-7E Fall 2006 Hancox ACCT 472-9E Fall 2006 McHugh Current Staffing Issue Summary: The above-discussed addition of these two new 2008 faculty will allow the Department to make progress in the following necessary areas of our current Bachelor’s degree programs: 30The Accounting Search Committee has successfully hired one new AQ faculty member to begin in the Fall 2008. We have a second AQ offer currently outstanding. Our preference is to hire a second AQ faculty member. Table 12 represents a “Fallback” scenario (i.e., if we are unsuccessful at hiring a second AQ faculty member and decide to hire a PQ faculty member.) 31The term “2008 level” will be used to designate the number of faculty required to maintain our current undergraduate accounting programs. The term “MS-Qualified” faculty will be used to designate the additional faculty, over and above the “2008 level,” that will be required to offer an MS in Accounting program at Siena College. This is discussed further in Section IX – Proposed Master of Science in Accounting Program. 27 A) Replace some Non-Qualified Adjunct Faculty with AQ Full-Time Faculty. B) Reduce Current Classes Sizes in the Required Auditing Class to an Appropriate Size for an Upper Level Required Major Course. (Current section sizes are 35 to 40 students.) C) Increase the Number of Accounting Electives/Sections Offered Every Semester by One or Two, in Order to Meet Current Student Needs. D) Allow for the Projected Reduction of Teaching Loads from 8 Sections to 6 Sections per Year for 2 Current Non-Qualified Faculty Who Should Attain AQ Status Within the Next Academic Year. Obviously, two new Fall 2008 AQ faculty will not allow us to fully achieve all of the above goals. However, they will allow us to make significant and necessary progress in supporting our current programs. They will also help us in our progress toward AACSB acceptable levels of qualified faculty. However, the addition of these two Fall 2008 AQ Faculty do not provide sufficient levels of staffing to support significant future growth in the numbers of students served or programs offered. 28 Students. The general quality of students entering the School of Business has been gradually increasing over the past ten years, as indicated in Table 14. Overall, there was a 3 % increase in SAT scores between 1997 and 2006. We assume that the SAT scores of incoming Accounting Students would show a similar increase. Table 14: Combined SAT Scores of Incoming Freshmen 32 in the School of Business  Fall Average Combined Entering SAT Scores School of Business 2006 1120 2005 1111 2004 1093 2003 1116 2002 1100 2001 1101 2000 1093 1999 1083 1998 1096 1997 1088 For comparison purposes, note that for 2006, Average SAT for the School of Liberal Arts was 1101, Average SAT for the School of Science was 1180, and the Overall Siena Average was 1127. 32Separate SAT scores by major are not available. Anecdotally, the accounting and finance students tend to be the more quantitatively-talented students in the School of Business. 29 Processes: Class Sizes, Class Offerings, Internships, Study Abroad. Internships. “For credit” course internships are currently allowed in the School of Business only when a student has reached senior status. As discussed in our Employer Focus Groups (discussed in Section VIII – Opportunity Analysis of the Accounting Program), internships are highly desirable items for the business student’s resume. Accounting students also realize the value of business experience and frequently seek out paid jobs/internships early in their college careers. It is essential to note that accounting students have historically been in high demand for paid (as well as unpaid) internships that are not structured around a course. In fact, the Career Center calculated that 85 % of 33 the May 2007 accounting majors graduated with such experience. Paid accounting internships generally range in the $10 to $15 per hour range. The larger firms, such as General Electric, pay at the top of the range. Small local firms pay in the $10 to $12 range. Study Abroad. Study abroad is attractive to accounting students. Unfortunately, accounting majors cannot take U.S. accounting courses abroad due to the differences between U.S. and Non-U.S. GAAP (Generally Accepted Accounting Principles), Laws, Rules, and Regulations. Therefore, due to the sequential structure and number of the accounting courses that are needed to prepare a student for the CPA exam, few students are able to “fit” a semester abroad into their 4-year course plan. As a result, during academic years 2004, 2005 and 2006, a total of only 26 accounting students participated in the Study Abroad option. The student focus group (discussed in Section VIII) cited the desire to study abroad as “something they would like to have been able to do, but that they couldn’t fit into their schedule.” Transfer Students. Transfer students have traditionally entered the Accounting Program from a number of our surrounding community colleges. (Although students do transfer in from other 4 year schools, such students are relatively few.) Table 15 shows the number of transfer students enrolling in our accounting major over the past four years. 33In July 2007, Suzanne O’Connor, Associate Director of the Career Center, reviewed the MonsterTrak database for internship information. At that point, 68 of the Siena Class of 2007 accounting graduates had resumes posted on MonsterTrak. Of these 68 graduates, 58 of them had listed significant accounting-related internship(s) and/or job experiences on their resumes. This represents approximately 85% of the accounting majors seeking positions through the Siena Career Center. 30 Table 15: Transfer Student Statistics  Academic # of Enrolling Transfer Students Year Siena College % of Siena Transfers Ending Full Part Total Accounting Who Are Accounting Time Time Majors 34 Majors 2006 214 21 235 23 10 % 2005 252 49 301 32 11 % 2004 188 51 239 26 11 % 2003 200 40 240 24 10 % As indicated in the above table, approximately 10% to 11% of transfer students chose to become an Accounting Major during the years under analysis. As discussed in Section II, 11% of all Siena students are Accounting Majors. Therefore, the Accounting Major appears to be neither over-represented nor under-represented within the transfer student population. College-wide, approximately half of the transfer students join Siena as a junior and a third of the transfer students join Siena as a sophomore. On a long-term basis, full-time Transfer Students have an average 5-year graduation rate (76.1%) exactly equal to that of students who enter Siena as freshman students (76.1%).  In addition, our Employer Focus Groups noted that the Transfer Students from Community College frequently have “better bookkeeping” skills than other students. However, it is also clear from our experience in the classroom that the first semester as an Accounting Major at Siena College is a very difficult transition for the Community College Transfer Student. As a result, these students usually experience significant adjustment issues and under-perform in their first few accounting courses and semesters. This not only causes them significant psychological stress, but it also puts them at a disadvantage in terms of Grade Point Averages when interviewing with employers the first semester of their senior year. While most transfer students will successfully make the transition, the Accounting and Business Law Department is actively working with Academic Advising to identify ways of helping these students make a more rapid and less painful adjustment. 34These are students who have declared an Accounting Major by the end of their first semester at Siena. 31 Class Size. Instructional quality and faculty/student interaction can be negatively affected by class size. Table 16 below shows the number and sizes of the accounting course sections offered over the past 8 semesters. Table 16: Teaching Statistics For Accounting Courses  Semester # of Sections # of Seats Average Offered Occupied Section Size Spring 2007 30 786 26 Fall 2006 33 779 24 Spring 2006 31 751 24 Fall 2005 32 750 23 Spring 2005 32 720 23 Fall 2004 34 751 22 Spring 2004 33 712 22 Fall 2003 35 679 19 The above table indicates a number of trends from Spring 2004 to Spring 2007 (the most recent semester). • There was a 9 % decrease in the number of accounting sections offered. • There was a 10 % increase in the total number of seats occupied for all sections. • There was a corresponding 18 % inc35ase [4 student increase] in the average section size for accounting classes. While the average accounting class size has grown 18%, there has also been some extreme increases in class sizes for some specific courses. In partic36ar, the ACCT 430 Auditing class size has ranged from a low of 23 to a high of 38 students during the past 4 semesters. This is an unacceptably high class size for a required major accounting class. In general, 400 Level Accounting Courses should be held to a level of 20 students. This allows for extensive class participation, student presentations, projects, and interactive classroom activities. Due to a lack of faculty, the department was not able to staff an adequate number of sections of the course. As discussed previously, one of our “2008 Level” open AQ faculty positions is in Auditing, in order to specifically address the class size issue. In general, the above trends are consistent with the increase in research release time and the corresponding decrease in teaching loads that have occurred in support of AACSB accreditation efforts. Our Departmental ability to reduce the Average Section Size in 35A comparison of the Fall 2006 and Fall 2003 semesters generates similar results. For example, the Average Section Size increase was 26% (5 student increase) between Fall 2003 and Fall 2006. 36Section sizes for the last 4 semesters for Auditing are as follow: Spring 2007: 36 & 38; Fall 2006: 23; Spring 2006: 28 & 29; Fall 2005: 30 32 Accounting Classes is dependent upon our ability to hire new Accounting Faculty this 37 year, as well as any numerical growth that may occur in the Accounting Major, Business Minor, or School of Business overall. Obviously, sabbaticals and normal faculty turnover will also adversely affect the number of Accounting Sections offered and the resulting Average Section Sizes. 37 If the Department had been able to add one additional faculty member last year, the number of sections offered would have increased to 36. 786 students spread over 36 sections would have generated an Average Section Size of 22. 33 SECTION VI QUALITY OF THE ACCOUNTING PROGRAM: OUTCOMES ASSESSMENT In accordance with our recent AACSB accreditation efforts, a tremendous amount of effort has been dedicated to assessment over the past 5 years. Every course in the Accounting Department (and in the School of Business) has the following assessment materials and efforts associated with it: • Course Guides • Syllabi that Follow the Course Guides • Semester-by-Semester Assessment of each Course A sample of these materials is included in Appendix Z8 for one course, ACCT 350 Cost Accounting. 38 During the AACSB accreditation team visit, the detailed assessment materials were reviewed and commented upon favorably. No deficiencies have been identified internally or externally. The detailed Learning Objectives and Assessment Procedures for each Accounting 39 Course are also included in Appendix Z9. The most significant evidence of the quality of our Accounting Program (and that of all programs in the School of Business) is the Siena Business School’s recent AACSB accreditation. This is an accreditation granted to less than 9 % of undergraduate only business schools.  “AACSB International accreditation represents the highest standard of achievement for business schools, worldwide. Institutions that earn accreditation confirm their commitment to quality and continuous improvement through a rigorous and comprehensive peer review. AACSB International accreditation is the hallmark of excellence in management education.”  38All of the above materials for every