Ties to recruiter questioned

UNC-CH sees no conflict in admissions director being on AGOS Japan board

Officials at UNC-Chapel Hill's business school found themselves answering conflict of interest questions Wednesday involving the school's admissions director.

Sherry Wallace, director of MBA admissions for Kenan-Flagler, is one of three officials from U.S. universities who serve on an advisory board for a Japanese company that recruits students for business programs.

UNC-CH received e-mail from someone in Japan on Sunday questioning whether the Japanese recruiting company -- known as AGOS Japan -- might enjoy an advantage over its competitors because of its American ties. The e-mail was also received by the online news site insidehighered. com, which published a story Wednesday saying at least one university official was paid to be on the board.

University leaders are extremely sensitive to charges of such conflicts following scandals last year involving kickbacks by student loan companies to universities in return for business.

But Allison Adams, media relations director at Kenan-Flagler, said Wallace's participation at AGOS Japan was approved by the school's dean before she agreed to be on the advisory board, and she is not paid by AGOS.

Wallace's term began Jan. 1, and she is expected to attend one annual meeting in Japan. Her trip and expenses are reimbursed with AGOS agreeing to spend up to $3,000 for a round-trip ticket; four nights at a hotel and expenses of about $372 a day. AGOS also agreed to spend up to $4,000 on an alumni reception while Wallace is there. An admissions officer from the University of Pennsylvania's Wharton School and an associate dean at Columbia University's Teachers College are also on the advisory board.

The UNC-CH conflict of interest officer, Sherrie Settle, reviewed Wallace's appointment after it was questioned and found no fault with it. But the appointment is still likely to attract attention among higher education officials.

"If the school doesn't have a problem with it, I guess they're off the hook with their employers," said Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers. "In general, it would be best to avoid these kinds of entanglements."

(Staff writer Jane Stancill contributed to this report.)