ECONOMIC ANALYSES -- proposed new policy

ACC's decisions are fundamentally driven by pursuit of its mission of community service rather than of financial gain for itself. Many of its activities of great value to the community do not generate a net profit to the College, and many others are close enough to breakeven that their finances have little strategic impact. But careful attention to the financial implications of College operations is still necessary to identify possibilities for improvement and expansion, to ensure allocation of limited resources in accordance with planned priorities, and to avoid waste. Accordingly:

[1] The President shall ensure that the economic analyses needed for planning and evaluation are conducted according to reasonable, clearly-stated principles that are applied in a consistent manner in all sectors.

[2] These principles shall make appropriate provision for matching costs with revenues, for recognition and allocation of indirect and capital costs, and for using present-value valuations in long-term analyses.

[3] The level of detail and sophistication of analyses may be adapted to the size and economic sensitivity of the topics.

[4] Analyses or projections provided to the Board shall report the sources of the information, the assumptions on which the analysis is based, and who is responsible for it.