DRAFT FOR DISCUSSION PURPOSES December 31, 2017 University College of the Cayman Islands Board of Governors FOR APPROVAL PUBLIC OPEN SESSION TO: Board of Governors PRESENTER: Tom Simpson Member of the Board of Governors DATE: January 23 for January 31, 2018 AGENDA ITEM: Federation of UCCI and ICCI ITEM IDENTIFICATION: Approval of proposal for the federation of University College of the Cayman Islands (“UCCI”) and International College of the Cayman Islands (“ICCI”) to be proposed by UCCI to ICCI. JURISDICTIONAL INFORMATION: Under the University College Law 2012 Section 13(1): “The Board shall have power - … . (k) to enter into agreements or arrangements on behalf of the College with other institutions of further or higher education for the provision of instruction, or the granting of degrees, diplomas, certificates and other distinctions;” Under the Public Management and Finance Law (2017 Revision) Section 46: “(1) Subject to subsection (2), a statutory authority or government company shall - … . (b) supply outputs to entities or individuals other than the Cabinet for payment and in accordance with agreements with those entities or individuals;” 1 DRAFT FOR DISCUSSION PURPOSES December 31, 2017 “(2) A statutory authority or government company shall not produce an output during a financial year unless - … . (a) the output is within the nature and scope of the activities that are set out in the annual ownership agreement of the authority or company; and . (b) the Cabinet, or another entity or person has, by way of formal agreement, agreed to pay for the full cost of the output to be produced.” The Cayman Islands National Vision for Tertiary Education calls for ICCI and UCCI to: “work together, to complement one another, through programmes and services that do not unnecessarily overlap or create redundancies”. GOVERNANCE PATH: 1. Administrative & Academic Committee 2. Board of Governors PREVIOUS ACTION TAKEN: At previous meetings of the UCCI Board of Governors, the UCCI Board has discussed proposals made by ICCI for the union of the two institutions. Such proposals require the approval of Cabinet and would include many other actions beyond the scope of the Board’s powers, including the repeal of the University College Law. To fulfill The National Vision for Tertiary Education, the UCCI Board leadership has explored with ICCI leadership an alternative proposal to achieve the same benefits without a merger, through a federation agreement between the two institutions that does not require approval of the Cayman Islands government (“CIG”). UCCI has in the past explored the idea of a Foundation to receive gifts and private sector contributions. However under UCCI’s governing statutes, the CIG Cabinet, not the Board, has ultimate control over such funds and so UCCI cannot provide donors certainty that gifts will be maintained and used as intended. This item was presented for discussion at the January 17 th meeting of the Administrative & Academic Committee. HIGHLIGHTS: As a public college and university, UCCI has a broader remit to provide for the unmet tertiary education needs of Cayman residents. UCCI must meet minimum academic standards with excellent teaching of programmes that are widely accessible to the Islands’ potential students. It may also choose a few programme areas in which to focus on higher academic quality for students who are capable of meeting those higher standards (e.g. the Nursing School). 2 DRAFT FOR DISCUSSION PURPOSES December 31, 2017 As a private university, ICCI is free to have a distinctive mission to focus on higher academic quality with selective admission to ensure students are capable of meeting those higher standards. Federated colleges operate independently, but with a formal collaborative agreement between them that controls a set of academic policies, standards or programmes. In Canada for example, federated colleges started out as religious institutions to train clergy. These denominational institutions continue to grant theological degrees but ceased to grant other degrees by joining the secular, publicly-funded universities to enjoy the benefits of scale, credibility and financial stability. Objectives for a federation of UCCI and ICCI include: a. better address the community and business educational and training needs of the Cayman Islands to ensure that Cayman residents have the future skills needed to compete in a knowledge-based digital economy; b. produce a greater number of qualified Cayman graduates suited to the present and future needs of the private and public sectors in the Cayman Islands; c. improve overall educational standards of the higher education sector in the Cayman Islands through an institution with international institutional accreditation so as to attract and retain a greater number of Cayman resident enrollments and international enrollments; d. reduce costs per graduate and create synergies by leveraging the respective strengths of the Colleges so as to improve the overall financial management of the sector and enable financial resources to be directed to a wider educational improvement and scope of courses agenda; and e. provide an environment that better enables the present and future staff and faculty of both Colleges to excel and attain higher levels of academic skill and recognition. Heads of Agreement for the Federation of ICCI and UCCI Single Applicant for Institutional Accreditation With this proposal, ICCI and UCCI will become federated universities under an Agreement of the Federated Universities of the Cayman Islands with a view to becoming a single applicant for American regional accreditation with the New England Association of Schools and Colleges (NEASC) and/or other international institutional accreditation bodies. It is expected that the Agreement will have an initial seven-year term, automatically extended to the end of the initial period of accreditation obtained. During the period of federation, ICCI and UCCI agree to place certain powers and aspects of their statutory or other authorities in abeyance but do not permanently relinquish such authority. 3 DRAFT FOR DISCUSSION PURPOSES December 31, 2017 Single Academic Senate ICCI and UCCI will each continue to control admissions and grant degrees in their own names. They will operate under a governance structure that maintains separate independent boards responsible for their respective business affairs. However, governance of all academic matters will fall under a single academic Senate with delegations, terms of reference and powers satisfactory to obtain NEASC or other international institutional accreditation. It is expected that the UCCI Administrative and Academic Committee (“AAC”) will become the Senate by UCCI Board appointment of ICCI’s academic leadership to the AAC membership. ICCI’s academic leadership will be granted teaching cross-appointments to UCCI to facilitate this. Separate Funding, Assets, Staff and Tuition Fees ICCI and UCCI will each continue with existing funding sources, to hold their own assets and to employ their own faculty and staff. However, faculty of both institutions will be subject to policies approved by the Senate (other than remuneration and other economic benefits of employment). Each institution in consultation with the other will continue to set their own tuition fees and policies for student financial assistance. ICCI will continue to be able to set such fees and policies without CIG approval. Distinctive Missions that Co-operate, Not Compete, With Path for Students to Transfer ICCI will transition to a semester system so that it may develop its own distinctive mission and high quality programmes, while reducing duplication by relying on UCCI to make available liberal arts and science and other core courses to ICCI students. UCCI’s mission will complement, not compete with ICCI’s distinctive mission. In some cases, this may mean a programme will be offered at only one institution. In other cases, this may mean a similar programme may be offered by both institutions but directed to distinctly different student needs. Qualified students must have a path to transfer between institutions (e.g. a UCCI Associate degree graduate may wish to continue at ICCI to complete a Bachelor’s degree). Operational Agreement to Seek Synergies in Facilities and Services In other areas, ICCI and UCCI will regularly seek synergies and reflect the provision of services to each other through an Operational Agreement on a full cost recovery basis. Synergies are expected in administration, libraries, buildings, facilities, recruitment, registrarial and advising services, student life and academic skills services. Operational Agreements will have terms based on strategic planning cycles. Single Foundation for Cayman Islands Tertiary Education Private Giving ICCI and UCCI will work together with private interests to create one Foundation, with an independent private sector board of trustees, to receive gifts and private sector contributions for all of higher education on the Cayman Islands. ICCI and UCCI will co- 4 DRAFT FOR DISCUSSION PURPOSES December 31, 2017 ordinate their fundraising goals through the Foundation, with academic priorities set by the Senate. Through donor agreements, donors may direct gifts to either ICCI or UCCI (or additional future member tertiary education institutions) or gifts may be undirected (an option attractive to donors wishing to make a donation without choosing). The Foundation board may act as an independent arbiter of disputes under the Federation Agreement or Operational Agreement. 5