Advance Excellence in Accounting Education
The College of Business Administration and Graduate School of Management
Accountants and accounting are the backbone of the world of finance. As advisers to enterprises ranging from mom-and-pop shops to multinational corporations, accountants function as the “referees” of the business arena, helping to make capitalism work. With wide media coverage of accounting failures such as Enron and others, accounting has begun to shed its image as a dull and stodgy profession and the number of university students enrolling in accounting programs is again on the rise. The number of undergraduate accounting degrees awarded in the United States in 2003 rose 11 percent from the year before, according to the American Institute of Certified Public Accountants (AICPA).
While this is good news for accounting firms seeking to hire graduates, it has contributed to a critical shortage of accounting professors and fierce competition among universities for qualified faculty members. The Accounting Program at Kent State University is seeking private support to ensure its ability to recruit and retain excellent faculty members, as well as to fund student scholarships, faculty development and support to student organizations. Investment in the university’s Accounting Program will advance the profession by producing accounting graduates who are well prepared to succeed in a variety of settings.
Accounting at Kent State
Kent State University’s College of Business Administration and Graduate School of Management has a strong track record of placing its students in internships and professional positions at top accounting firms. Virtually every student in the undergraduate, master’s and doctoral programs actively seeking employment is placed in a suitable accounting position and many are able to choose from multiple offers. Kent State graduates can be found on the faculties of colleges and universities, as well as in high-level positions in accounting firms, industry, government and non-profit organizations.
Our program offers high-quality instruction and a curriculum that is responsive to the changing regional, global and technology-driven business environment. Highlights of the Accounting Program include:
- About 90 bachelor’s degrees awarded each year to students who must earn a minimum grade point average of 2.5, most of whom graduate with a 3.0 or better.
- Enrollment of more than 200 accounting majors (all juniors and seniors), which has increased by about 15 percent since 1995.
- Instruction of an additional 1,300 students per year in courses required as part of the overall business curriculum and the MBA program, as well as such fields as management, finance and fashion merchandising.
- More than 4,000 alumni nationwide, including over 2,000 in Northeast Ohio.
- Participation by about 40 accounting majors annually in paid, full-time internships, typically during the spring or summer of their junior year.
- Twelve full-time faculty members dedicated to teaching practical skills, as well as fostering high ethical standards for professional practice.
- Two award-winning student groups, the Accounting Association and Beta Alpha Psi, which meet weekly with accounting practitioners.
- A growing master’s degree program, currently at 50 students, with a target of 75 high-quality students.
- A well respected Ph.D. program – one of only four in Ohio – with a 100 percent placement record for its graduates.
- Continuing education opportunities through the Evening and Weekend College and courses taught at such satellite locations as Kent State Stark, Lorain Community College and a proposed new site in Solon (in partnership with Cleveland State University).
A National Shortage
"The comeback of the accounting career occurs as the number of business doctorates produced is at a 17-year low and universities struggle to recruit new accounting professors," reported the Wall Street Journal in a July 2004 article. In 2002, only 110 accounting Ph.D.’s were awarded nationwide. As a result, the number of openings for college accounting instructors is now more than twice the number of submitted resumes, according to the AICPA. The shortage is expected to worsen as the current baby-boomer generation of faculty nears retirement age.
The lure of high-paying jobs in public accounting and other positions, means that fewer students are choosing academic careers that require additional years of education. Those that do earn Ph.D.’s are in high demand at universities, as well as within consulting firms and private companies. Such individuals can command substantial salaries and other benefits. In 2001, the Chronicle of Higher Education reported that, “typical salaries for new Ph.D.’s in finance, accounting and information systems are now more than $100,000 at many universities.” Often, when a university loses a professor to a competing school (as Kent State did in 2003), the institution finds it has to pay a higher salary to attract a new assistant professor than it did for the more experienced professor. Clearly, it is advantageous to retain existing faculty members.
A National Shortage
To build excellence in accounting education, Kent State University must be able to offer competitive salaries to its faculty members, as well as opportunities for research and professional development. The current environment for public universities such as Kent State, which has experienced five consecutive years of reductions in state funding, is such that private gifts are the primary means by which we can take the program from one that is good to one that is marked by excellence.
The Accounting Program currently has 9 tenure-track (TT) positions and 3 non tenure-track (NTT) positions. While compensation for NTT faculty members appears to be adequate, annual compensation for TT professors is about $10,000-$15,000 below market level. This leaves the Accounting Program vulnerable to losing experienced faculty to other institutions and puts it at a disadvantage in recruiting new ones within an increasingly tight market.
In 2003, the Kent State University Foundation initiated a program of establishing endowments to augment the salaries of outstanding professors in all academic disciplines. The aim is to allow donors to endow existing faculty positions in the range of $100,000 to $250,000 – far less than the investment required to fully endow a new faculty chair.
Funds gifted several years ago by KPMG Peat Marwick have recently been directed to establish the first professoriate position in accounting. The KPMG Peat Marwick Endowed Professoriate in Accounting will help the program recruit and retain a succession of distinguished faculty members in this discipline.
To build the quality of accounting education through outstanding teaching and research, the Accounting Program seeks support to create six Professoriate endowments at the $250,000 level. Private investment of $1.5 million would generate $75,000 annually ($12,500 per position) for this purpose. Such named positions will enhance the prestige and competitiveness of our senior faculty posts.
Our faculty members are committed to continually enhancing their knowledge through professional development and interaction with colleagues across the country. Unfortunately, the university is only able to provide each TT faculty member with $1,000 annually to fulfill this important objective. NTT faculty members receive only $500 per year to travel to conferences or pursue research opportunities.
An endowed fund of $500,000 would generate an additional $25,000 per year for faculty development. This would allow the Accounting Program to provide $2,500 annually for each TT faculty member and $1,000 per NTT faculty member to further their skills, knowledge and research interests. Such a fund would greatly enhance faculty recruitment and retention. Private leadership is needed to make it happen.
Pursuing Higher Accreditation
In fall 2003, Kent State’s Accounting Program formally began the process of attaining accreditation from the Association to Advance Collegiate Schools of Business International (AACSB). While the College of Business Administration has for many years received accreditation, this separate accreditation for accounting will increase the prestige of our program and its graduates.
Accounting is the only business discipline requiring a separate entry exam and licensure to practice. Therefore, it is in the best interests of our students – and their future employers – to gain this external validation that our Accounting Program meets professional standards and strives for continual improvement.
AACSB approval will also make our program more competitive with others that have achieved this stature, including Case Western Reserve University, The Ohio State University, Miami University of Ohio and others. The requirements for Kent State’s accounting program to gain AACSB accreditation will be more extensive due to the fact that we offer a doctorate in accounting. Criteria to be examined include faculty-student ratios, faculty qualifications and research productivity, faculty interaction with the practice community, student placement and career success, student diversity and learning outcomes.
The AACSB has appointed Frances Ayres, director of the School of Accounting at the University of Oklahoma, to serve as a mentor during the accreditation process. Based upon her visits to Kent State, Dr. Ayres has encouraged us to pursue higher accreditation and we are taking steps to achieve this by spring of 2006.
Of the 405 colleges of business in the United States with AACSB accreditation in 2003, only 157 have accounting programs with this additional accreditation.
Naming the Accounting Program
An opportunity exists to name the Accounting Program at Kent State University. With an investment of $5 million, the program would join a select group of named, AACSB-accredited programs in accounting in the United States. In recognition, the program would be named for the benefactor, a company or one its principal partners – elevating their status within the community and the accounting profession.
Such an endowed fund would generate $250,000 annually for faculty support and development, student scholarships and activities, technology and operating expenses. The following describes how such support could be used:
- Professoriate Endowments - $1.5 million
Six accounting faculty members would be appointed to these named positions within the College of Business Administration, increasing its ability to recruit and retain highly qualified instructors. - Faculty Development Endowed Fund - $500,000
This would generate $25,000 annually for faculty to attend professional conferences, present research papers and pursue partnerships with practicing accountants. - Endowed Student Scholarships - $1 million
The Accounting Department currently awards about 25 scholarships of about $1,500 each annually. With tuition of more than $7,500 per year for Ohio students (and $14,516 for non-resident students), we need to provide more substantial aid to reward deserving students. Such an endowed fund would enable the program to more than double the average scholarship awarded to $3,500 annually for 25 top students. - Student Enrichment Endowment - $300,000
Two volunteer-run student groups, the KSU Accounting Association and Beta Alpha Psi, are instrumental in promoting our program and facilitating opportunities for students to meet with the practice community. The proposed endowed fund would generate $15,000 annually for officers and leaders of these groups to attend conferences and competitions. - Accounting Program Endowment - $1.7 million
Income generated by this endowment would be used at the discretion of the Program Chair, in conjunction with the Dean of the College of Business Administration, to purchase technology, hire adjunct faculty and cover other expenses. Additional funding for adjunct faculty is especially needed to offer additional sections of specialized courses such as advanced tax accounting, as well as new courses like systems auditing, forensic accounting and ethics. Such a fund will provide the flexibility for the Accounting Program to meet current challenges and seize emerging opportunities.
Summary
The Accounting Program within Kent State University’s College of Business Administration has earned distinction in preparing students with the skills and knowledge demanded in the financial world. The program is pursuing the additional distinction of accreditation by the AASCB – a mark of excellence that our students, programs, curriculum and faculty are of the highest quality.
An opportunity exists to further advance the program, and the accounting profession, through private support. We invite you to consider a leadership investment to name the Accounting Program, or an element within the program, to enhance its prestige and effectiveness in providing access to accounting education. Your generosity will be recognized widely as Kent State joins a highly select group of universities nationwide that offer a named, accredited program in accounting.
Dr. George E. Stevens
Dean
College of Business Administration
and Graduate School of Management
Kent State University
P.O. Box 5190
Kent, OH 44242-0001
(330) 672-1101 / fax (330) 672-3381
gstevens@kent.edu
Dr. Richard E. Brown
Chairman
Department of Accounting
(330) 672-1545 / fax (330) 672-2548
rbrown1@kent.edu
Ralph W. Kletzien
Director of Development - College of Business
(330) 672-1185 / fax (330) 672-9545
rkletzie@kent.edu