. . }. ,.,.INTERAGENCY AGREEMENT BETWEENWASHINGTON STATE UNIVERSITYAND EASTERN WASHINGTON UNIVERSITYTHIS INlERAGENCY AGREEMENT (hereinafter "Agreement") is made and entered into byand between Washington State University (hereinafter "WSU") and Eastern WashingtonUniversity (hereinafter "EWU"), both state of Washington institutions of higher education.EWU and WSU will be collectively referenced as the "Parties."··IT IS THE PURPOSE OF THIS AGREEMENT to set forth the rights and obligations of theParties and the terms and conditions governing certain aspects of the WSU WWAMI Program atthe Riverpoint Campus.The Parties agree to the following terms and conditions:A.B.EWlPS ROLE AND RESPONSIBILITIES:I.EWU will provide course instruction in the WWAMI Riverpoint Campusprogram to the extent mutually agreed by the Parties based on the resourcesavailable at EWU and the amount ofresourcesrequired by WSU.2.EWU will provide course development for WWAMI courses to the extentmutually agreed by the Parties based on the resources available at EWU and theamo.unt of resources required by WSU.3.EWU will provide course directors for the WWAMI Riverpoint Campus Programto the extent mutually agreed by the Parties based on the resources available atEWU and the amount of resources required by WSU.WSU'S ROLE AND RESPONSIBILITIES:I. WSU shall provide funding to EWU for services provided and costs incurredrelated to the provision of seryices to the WSU WW AMI Riverpoint Campusprogram to include: course instruction, course development, and course directors.2.WSU shall provide EWU a payment of 156,000 per year for services providedthe first year of the Agreement. The Parties shall meet prior to April I, 2009 andmutually determine whether the Agreement is to be extended for a second yearand the amount of payment for the second year of the Agreement, if any. Theysha:11 meet prior to April I, 20 IO and mutually determine whether the Agreementis to be extended for a third year and the amount of payment for the third year ofthe Agreement, if any. These extensions, if any, shall be by signed writing.3.WSU shall transfer funding to EWU in a lump sum by the end of July each yearfor the coming academic year expenses except for the start up year, funds shouldbe transferred to EWU by August 16, 2008.Interagency Agreement between EWU and WSUPage I of5

C.4.The WWAMI Director in consultation with EWU shall determine WSU's needsfor services by April 1 of each. year considering EWU's available resources.5.The WWAMI Director in consultation with EWU shall determine courseassignments by March I of each year to allow EWU enough time for resourceplanning which will be required as a result of EWU providing instructionalservices.GOVERNANCE OF LOANED FACULTYThe Parties acknowledge that many of the working conditions ofEWU faculty aregoverned by a Collective Bargaining Agreement ("CBA"). Attachment A. The Partiesagree to comply with applicable requirements of the CBA for EWU faculty, including,but not limited to, workload and disciplinary actions. In the event WSU has concernsabout performance or behaviors of faculty, those concerns shall be brought to theattention of the EWU Dean of the College of Science, Health and Engineering in a timelymanner. The Parties agree to work collaboratively to address and resolve these issues,should they arise.D.WSU POLICIESWSU requires faculty who wish to participate in the WW AMI program at WSU tocomply with WSU policies, including but not limited to WSU' s Policy AgainstDiscrimination and Sexual Harassment (EP 15, Discrimination and Sexual Harassment.htm) (Attachment B) and Policy on Faculty-Student and Supervisor-SubordinateRelationships (EP 28, FacultyStudent and Supervisor-Subordinate Relationships.htm) (Attachment C).E.INDEMNIFICATION/RESPONSIBILITIESEach Party to this Agreement shall be responsible for its own acts and/or omissions andthose of its officers, employees and agents. EWU faculty working in the WWAMIprogram shall retain their identities as EWU faculty, and EWU shall be responsible for.,their conduct in the WW AMI program to the same extent as if they were working withintheir usual EWU positions.Neither Party shall be responsible for the errors or omissions of the other.No Party to this Agreement shall be responsible for the acts and/or omissions of thirdparties.F.PERIOD.OF PERFORMANCESubject to its other provisions, the period of performance of this Agreement shall be one(1) year, subject to annual extensions for up to three (3) years, and shall commence onAugust I, 2008, and be completed (so long as annually extended in writing) on June 30,2011 (the "Term"), unless terminated sooner as provided in this Agreement.Interagency Agreement between EWU and WSUPage2 of5

Subsequently, this Agreement may be renewed for successive 3-year terms upon themutual written consent of the Parties.G.NON-DISCRIMINATIONNeither party will discriminate against any person on the ba,sis of tace, creed, color;national origin, sex, age, honorably discharged veteran or military status, sexualorientation, gender identity or-expression, or the presence of any sensory, mental, or·. physical disability or the use ofa trained dog guide or service animal by a person with a .disability.H.INDEPENDENT CAP ACITYThe employees or agents of each party who are engaged in the performance of thisAgreement shall continue to be employees or agents of that party and shall not beconsidered for any purpose to be employees or agents of the other party.I.MODIFICATIONThis Agreement may be modified or amended by mutual agreement of the Parties, Suchamendments shall not be binding unless they are in writing and signed by personnelauthor-ized to bind each party.J.CONTINUATION CONTINGENT UPON FUNDINGContinuation of this Agreement is contingent upon continued funding of the WWAMI ·program.K.TERMINATIONEither party may terminate this Agreement by notice delivered on or before April 1 ofeach year of the Agreement or by failure to extend the Agreement annually by April 1 ofeach year of the Term. Further, the Agreement may be terminated at any time upon the ·mutual written consent of the Parties. If this Agreement is so terminated, the Parties shallbe liable only for performance rendered or costs incurred in accordance with the terms ofthis Agreement prior to the effective date of termination.L.DISPUTESIf any significant concerns or disputes arise related to this Agreement, the Parties agreetha the matter shall first be brought to the attention of the other Party, in writing. If itcannot be resolved at a program level, the dispute shall be referred to the Provosts of therespective institutions who shall then make prompt, diligent efforts to resolve any suchmatter.Interagency Agreement between EWU and WSUPage 3 of5

.'·,-,,. M.GOVERNANCEThis contract is entered into pursuant to and under the authority granted by the laws ofthe state of Washington.N.WAIVERA failure by either Party to exercise its rights under this Agreement shall not precludethat Party from subsequent exercise of such rights and shall not constitute a waiver of anyother rights under this Agreement unless stated to be such in a writing signed by anauthorized representative of the party and attached to the original Agreement.O.SEVERABILITYIf any provisiori ofthisAgreement or any provision of any document incorporated byreference shall be held invalid, such invalidity shall.notaffect the otherprovisions of this. Agreement which can be given effect without the invalid provision, if such remainderconforms to the requirements of applicable law and the fundamental purpose of thisAgreement, and to this end the provisions of this Agreement are declared to be severable.P.ENTIRE AGREEMENTThis Agreement contains all the terms and conditions agreed upon by the Parties as to itssubject matter. No otJ:ier understandings, oral or otherwise, regarding the subject matterof this Agreement shall be deemed to exist or to.bind any of the Parties hereto.Q.CONTRACT ADMINISTRATION/NOTICEAny notices required to be given or which shall be given under this. Agreement shall be inwriting, delivered mailed by first class mail, postage prepaid or transmitted by handdelivery:Notices to EWU:· Dr. John Mason, Provost and Vice President for Academic AffairsEastern Washington University220 Showalter HallCheney, WA 99004· Notices to WSU:Dr. Steven L. Hoch, Provost and.Executive Vice PresidentWashington State University. P.O. Box 641046French Administration Building Room436Pullman, WA 99 I 64-1046 .Copy to:Kenneth P. Roberts, DirectmWWAMI SpokaneP.O. Box 1495Spokane, WA 99210-1495 Interagency Agreement between EWU and WSUPageAof5

. R.SIGNATURESThe Parties affirm the persons below have signature authority for the Parties. By theirsignatures on this Agreement, the Parties agree to all of its terms and conditions.For:TON UNIVERSITYMary V es, Vice President of Businessand manceDate:6/jifI t2 i ·l· WASHINGTONSTATEd Heath, Senior AssociateVice President of Business and FinanceI?//1/11;Date:Approved As To Form:Deborah Danner, Sr. Counsel Assistant Attorney GeneralAttorney for EWUDate:'''6 /19,/ 0 Interagency Agreement between EWU and WSUSylvia Glover, Sr. CounselAssistant Attorney GeneralAttorney for WSUDate:8/¼ f.7Page 5 of5

I\ I I f\l,fll,t.1'4 IEASTERN WASIDNGTON UNIVERSITYANDUNITED FACULTY OF EASTERN WASHINGTON UNIVERSITYJUNE 23, 2006 - AUGUST 31, 2009Eastern Washingto University/United Faculty or Eastern/UFEF1nal Agreement 8/22/2006I\

TABLE OF CONTENTSPREAMBLE.· . IARTICLE I : ACADEMIC ORGANIZATION . IARTICLE 2 : APPOINTMENT, ASSIGNMENT, RANK AND PROMOTION . 2'ARTICLE 3: COMPENSATION AND BENEFITS . ,.,. 15ARTICLE4: DEPARTMENT CHAIRS . :. 21ARTICLE 5 : DISCIPLINE . 22ARTICLE 6: DURATION . :. 22ARTICLE 7 : GRIEVANCE PROCEDURE . 23ARTICLE 8 : INTELLECTUAL PROPERTY RIGHTS . 25ARTICLE 9 : LEAVES . :. 26ARTICLE 10: PROFESSIONAL RIGHTS AND RESPONSIBILITIES . 32ARTICLE 11 : RECOGNITION .,. ,. 40ARTICLE 12 : REDUCTION IN FORCE., .:. ;. 40ARTICLE 13 : TERMS OF AGREEMENT .:. 43ARTICLE· 14 : UFE - UNIVERSITY RELATION SHIP . :. 44ARTICLE 15 : UNION-MANAGEMENT COMMITTEE .;. 46Appendix A - Just Cause GuidelinesAppendix B - Intellectual PropertyAppendix C Statement of Academic Freedom and Tenure, 1940 Statement of PrinciplesAppendix D -Statement of Professional Ethics as Adopted by the AAUP June 1987Appendix E - Agreement Regarding Modes of Instruction.Appendix F - DefinitionsEaskm w .blnglon Uoherslt)'ll)ulled Faculty ofEutero/UFEFinal Agrftttlent 6123/'!006Pagel

PREAMBLEEastern Washington University (the "University") and the United Faculty of EasternWashington University (the "UFE") (collectively, the "Parties") agree as follows:ARTICLE 1: ACADEMIC ORGANIZATION1. I1.2 Princi les.1.1.1The University's academic organizational structure should reflect and promotethe mission, academic plan and programs of the University. It is .based upon amultidimensional framework, recognizing different organizational needs ofvarious units, yet providing for equitable consideration of all programs withininstitutional goals and policies.1.1.2Teaching will remain the primary function of faculty members at theUniversity; however, departments may need faculty who can fulfill a variety ofroles and not all faculty will have the same roles or responsibilities in adepartment.·1.1.3The University should provide every faculty member with:(a)An opportunity for professional deveiopment within the resources andstrategic plan of the University; and(b).A clear understanding of the conditions of employment, particularly thepolicies and procedures governing retention, tenure and promotion.Shared Responsibilities. The academic administration of the University shall be basedupon the principle of shared responsibility in governance. Organizational procedures willplace decision accountabjlity as close as possible to the most adequate and appropriatesource of expertise and information, and provide for specific evaluation and review of alloperations.1.2.1The structure should promote effective and efficient management as directlyand simply as possible.1.2.2Every program unit (departments, centers, colleges, schools,.etc.) will prepareexplicitgoal statements which will be reviewed regularly, bothfor consistencywith institutional mission and goals and for relationship to programproductivity.· 1.2.3The faculty will participate in the selection of academic administrative .personnel.Eastern Washington University/United Faculty of EasternF1nal Agreement 6113/2-006Page 1

1.3Department and College Policies and Procedures.1.3.1Each college shall develop Policies and Procedures ("P&P") and a missionstatement that are consistent with the University Policies and Procedures andmission. The college P&P, upon approval by a ballot of the college facultyaffected by the issues in the P&P, are forwarded to the Chief Academic Officerfor final approval. Review of the college P&P will be conducted at least everythree (3) years, and any proposed revisions will be approved by a ballot asdescribed in this paragraph.1.3.2Each department shall develop.P&P and a mission statement that are consistentwith the respective college P&P and mission. Department P&P, upon approvalby a ballot of the department faculty affected by the issues in the P&P, aresubmitted to the dean for preliminary approval and forwarded to the ChiefAcademic Officer for final approval. Review of the department P&P will beconducted at least every three (3) years, and any proposed revisions will beapproved by a ballot as described in this paragraph.1.3.3The Chief Academic Officer's approval of department and college P&P doesnot imply approval or disapproval of individual Faculty Activity Plans("FAP") as defined below.1.3.4Colleges and departments shall develop strategic plans and goals which areconsistent with the University strategic plan and make recommendations abouthow resources will be allocated to accomplish their plans and goals.1.3.5Assessment plans must be a component of both college and departmentstrategic plans and shall be consistent with the UniverSity's Assessment Plan.All plans shall include comprehensive measures of student outcomes andcompetency by !Illljor. These plans shall be filed with the college dean and theOffice of Institutional Research, Demography, and Assessment.ARTICLE 2: APPOINTMENT, ASSIGNMENT, RANK AND PROMOTION2. l ·· . Faculty Appointments. A full-tinie contract year, except for Librarians, is the three (3)quarters of fall, winter and spring. Summer session appointments are by separatecontracts.2.1.1Faculty status. .(a)Probationary appointments{i)Assistant Professor(ii)Associate Professor(iii)Full ProfessorEastem Washington Unlvecslty/Unlted Faculty or EasternF1nal Agreement 6/23/2006·Pag

(b). ·. (c)(iv)Librarian II(v)Librarian III(vi)Librarian NTenured Appointments(i)Associate Professor(ii)Full Professor(iii)Librarian III{iv)LibrarianNSpecial Faculty(i)· · (ii)(iii)(n)Lecturer/Library AssociateSenior Lecturer/Senior Library AssociateFaculty in ResidenceQuarterly faculty who teach 1/6 time or more in any academic year or areappointed to .17 or greater FTE assignment as a library faculty member.2.Lz.· Authority for Appointment and Rea11pointment All faculty appointments andreappointments are made upon the recommendation of the Chief AcademicOfficer and the President to the Board of Trustees and are not effective until theBoard of Trustees has taken formal action. ·only those terms of employment thatare made in writing to the appointees shall be binding upon the University.2.1.3Faculty Recruitment. The University will establish policies and procedures forfaculty recruitment that are consistent with guidelines adopted by the AmericanAssociation of University Professors. Departmental faculty riienibers and thedepartment chair will provide their recommendations regarding faculty candidatesto the dean through the selection process described in the individual departmentand college P&P.·2.1.4Additional Staffing. The parties recognize the vital role that tenur c:d and tenuretrack faculty play in academic life ofthe University, and share a commitment toemphasizing the role of tenured and tenure-track faculty in teaching at theUniversity. Consistent with department needs and University resources, theUniversity will give first consideration to adding tenure-track positions whenadding staff to meet increased student demand.Eastern Washington University/United Faculty of EasternFinal Agreement 6/23/1006P ge3

2.1.5New Faculty Appointments.(a),2.1.6All candidates must meet the qualifications for the rank to which they areappointed, and are expected to provide, either through professionalexperience or graduate experience, evidence and continuing potential for:(i) ·Excellent teaching or librarianship that commands the respect ofstudents and faculty as demonstrated through such measures aspeer evaluations and student evaluations of teaching.(ii)Important professional contributions oflocal, state or national.significance.(iii)Superior professional activity, scholarship and/or creative activity.(iv)Working collegially, collaboratively and productively to achievedepartment, college and university goals.(b)In addition to the minimum criteria for rank stated in this Article, colleges .and departments may establish additional criteria for appointment andpromotion.(c)At the time of appointment, each faculty: member will be informed of thecriteria for retention, tenure and promotion as described in thedepartments' and co\leges' P&P.Appointment with Tenure. Faculty may be hired with tenure at the.rank ofAssociate Professor, Full Professor, Librarian III or Librarian IV. The process forhiring with tenure must follow the hiring-in procedures as designated in thecollege and department plans, and it must include the full evaluation process forgranting tenure by faculty of the department. Those hired in with tenure must, atleast, meet the criteria and qualifications for the rank of Associate Professor orLibrarian III as indicated in Sections 2.1.10 and 7 . Joint Appointments. Faculty may be appointed in two {2) or moredepartments/programs subject to the following conditions:(a)The original appointment must be approved by each of the departments orprograms to which it is made.·(b)The proportion of an appointee's professional responsibilities and rightsduring the academic year shall be agreed upon in writing at the time of theappointment by the appointee and those departments or programs to whichthe appointment is made. Ordinarily, at least one-third of the appointee'sprofessional rights and responsibilities must be in each of the departmentsor programs involved. Such proportion shall be changed only through·consultation among the appointee and the affected administrative units.Ell-5ter Washington U versity/United Faculty or Easte · Final Agreement 6/23/2006Page4

Changes in the appointment must be approved by the departments orprograms to which the appointment was made.2.1.8(c)A joint appointee shall be evaluated for promotion, retention and tenure bya faculty committee whose composition proportionately reflects thedivision of his/her professional responsibilities between or among thedepartments or programs to which the appointment is made. If the jointappointment is in more than one college or unit, the reviewing committeeshall include representation from each.(d)The Department/Unit Personnel Committee must include representationfrom the departments/units involved unless this is impossible due to thenumber of tenured faculty, in which case tenured faculty from relateddisciplines will serve.Probationary Appointments. Faculty may be hired on a tenure track at-the rank ofAssistant, Associate or Full Professor, Librarian II, Librarian ill, or Librarian IV,2.1.9 · Assistant Professor.(a)Qualifications: A doctorate or terminal degree is required, however,appointment without these qualifications may be made in exceptionalcircumstances. Faculty who have this rank shall not have yet attainedtenure status.(b)Length of Probationary Period. The normal full probationary period is six(6) years. The initial appointment is a one year probationary appointment.Probationary appointments may exceed six ( 6) years, as provided in.paragraph (i) below.·(i)Extensions of Probationary Period. No later than the conclusion ofthe fifth year evaluation, a faculty member may make a request tothe department chair for a one (I) year extension of the·probationary period due to extenuating circumstances outside thecandidate's control which have significantly affected the candidate.Such circumstances may include but are not limited to healthproblems of the candidate or the candidate's family; the birth oradoption of a child; or additional assignments that may haveinterfered with the execution of the FAP. The department chair'srecommendation will be forwarded to the dean, who will grant ordeny the request. A candidate may request reconsideration of adenied request through the Faculty Review Board processdescribed in Section 2.3.(ii)Faculty with less than a full six (6) years of probationary servicewho demonstrate e]5:ceptional achievements may be considered fortenure and promotion after the fourth year if nominated by theirEastern Washington University/United Faculty of EasternFinal Agreement 6/23/2006Pilge5

department personnel committee, their chair, and dean. Refusal toconsider early promotion and tenure may not be appealed throughthe grievance procedure or other review procedures established in·. this Agreement.(iii)Faculty who, at the time of hire, negotiated an agreement for. consideration for tenure and promotion with less than a full six (6)years of probationary service may be considered for tenure andpromotion according to the terms in their offer of employment.The fact that a faculty member has an agreed shortenedprobationary period will not preclude early consideration for tenureand promotion through the nomination process describ'ed inparagraph (ii) above.2. l.10 Associate Professor. A doctorate or terminal degree appropriate to theappointment, and six (6) or more years of successful professional experience arenormally required Faculty appointed at the rank of tenure-track associateprofessor must be evaluated for tenure in the third year. If tenure is not granted,· notification must be given by March l of the third year and a one (l) yearterminal appointment is granted.2.1. l l Full Professor, A doctorate or terminal degree appropriate to the appointment,and ten (l 0) years of successful professional experience are normally required.Faculty appointed at the rank of tenure-track full professor must be evaluated fortenure in the second year. If tenure is not granted, notification must be given byMarch l of the second year and a one (l) year terminal appointment is granted.2.l.12. Professional Librarians.(a)The professional library staff shall have faculty status and equivalent rank(Librarian II, Ill, IV), but contract appointments may differ from those ofother University faculty in length of appointment (up to twelve (12)months/year), salary and vacation periods in accordance with the needs of.the University and the normal practices of the profession.(b)As a general policy, new appointments will be made at the rank ofLibrarian II. A new appointment may be made at the rank of Librarian ill,if the candidate meets the paper qualifications for the rank, and theapplication has the support of the d.ean and the Library Faculty PersonnelCommittee.(c)Original appointment of candidates who do not meet the paperqu,ilifications at the rank of Librarian ill and all original appointments atthe rank of Librarian IV may be approved upon recommendation of theLibrary Faculty Personnel Committee and only when the candidatespossess outstanding qualifications which are essential for carrying out aneffective program.Easter·n Washington University/United FacultyofEasteroFinal Agreement 6/23/1006Page6

2.1.13 Qualifications for Rank ofLibrazy Faculty.(a)Librarian II. A master's degree in librarianship and at least three (3) yearsof successful professional experience shall normally be required. Libraryfiiculty holding this rank shall not have yet attained tenure. In addition tothe minimal rank criteria described in this Agreement, the Library hasestablished additional criteria for appointment and promotion to this rank.(b)Librarian III. A second master's degree or the doctorate in librarianship orequivalent degree, and six (6) years or more of successful professionalexperience shall normally be required. A faculty member lacking thedoctorate, equivalent degree, or second master's degree shall have at leastnine (9) years of successful professional experience. This is the lowestrank at which tenure may be awarded.(c)Librarian IV. The doctorate in librarianship, an equivalent degree, asecond master's degree, or other terminal degree appropriate to the field,and ten (l 0) years successful professional experience shall be required. Alibrary faculty member lacking the doctorate. or second master's degreemay be appointed to the rank of Librarian IV only in exceptional cases andwhere expertise in his/her field is clearly equivaknt or superior to thatassociated with the doctorate or second master's degree.2. l.14 Qualifications and Appointment Term for Special Faculty Titles. The followingare contractual, non-tenure track positions and an annual contract year is the threequarters, fall, winter and spring.(a)Lecturer/Librazy Associate. Qualified faculty with teaching/librarianshipresponsibilities on an annual contract.(b)Senior Lecturer/Senior Librazy Associate. Qualified faculty with at leastsix ( 6) years of successful service a Lecturer/Library Associate may be. appointed as a Senior Lecturer/Senior Library Associate on a multiple yearcontract. Upon appointment to Senior Lecturer/Senior Library Associate,the notice of non-renewal will be one year. For positions funded byexternal sources, elimination of the external funding is grounds fortermination, irrespective of the one year notice requirement.( c)Faculty in Residence (Scholar in Residence, Visiting Assistant. Associateor Full Professor}. These titles may be granted to individuals ofexceptional qualifications brought to the institution to provide a short-termenhancement for a program.as2.1.15 Quarterly Faculty. Qualified faculty with teaching or librarian responsibilitieshired on a quarterly contract.Ell.stern Wuhlngton University/United Facultyo(EasternFinal Agreement 6/23/2006Page7

2.2Procedures for Retention, Tenure and Promotion.' Committees. University departments shall establish departmentalpersonnel committees and the University library shall establish a library personnel.committee for the purpose of evaluating faculty members for retention, tenure andpromotion. The department/library personnel committee shall be made up of aminimum of three (3) tenured faculty who, where possible, hold a rank at orabove that of the person being considered. Small departments may includefaculty members from related areas and large departments may establish morethan one COlllillittee.Schedule. The Office of Academic Personnel will provide the colleges with. timelines outlining dates related to the retention, promotion, tenure process. ·Retention of Probationary Faculty.(a)Department Evaluation.(i)Full-time faculty on probationary status will be evaluated annually,regardless of contract length, by the department chair and by thedepartmental and/or unit personnel committee to determinereappointment. Probationary faculty will be provided withtimelineSTelative to retention decisions. Such evaluations will bebased upon progress in meeting goals contained in the F AP. It isexpected tha{ the FAP will be in effect throughout the probationaryperiod unless modified by mutual agreement between the facultymember, department chair, departmental personnel committee,dean, and Chief Academic Officer.(ii)As part of the evaluation process, the department will provide thefaculty member with an annual assessment of progress on the FAPand a recommendation regarding probationary status. Theevaluation will be signed by the faculty and retained inher/his official personnel file in the Office of Academic Personnel.(iii)The department personnel committee and/or unit and thedepartment chair shall each forward a recommendation to the unitdean as to whether the faculty member should be:( I)Continued on probationary status.(2)Removed from probationary status and continued as aspecial faculty member. Consecutive appointments shallnot

WSU shall transfer funding to EWU in a lump sum by the end of July each year for the coming academic year expenses except for the start up year, funds should b