WASHBURN UNIVERSITY OF TOPEKA BOARD OF REGENTS MINUTES November 17, 1993 I. Vice Chairperson Roth called the meeting to order at 5:03 p.m. in the Kansas Room of the Memorial Union. Present were: Mr. Felker, Mrs. Hines, Mr. Hodges, Mr. Kimbrough, Mrs. Parks and Mr. Roth. III. Approval of Minutes It was moved and seconded to approve the Minutes of the September 15, 1993 meeting of the Board of Regents as circulated. Motion passed. Vice Chairperson Roth yielded the floor to the President for a report. President Thompson introduced Chief Student Affairs Officer and Dean of Students, Dr. Greg Greider, who reviewed the fall 1993 enrollment highlights form which he had circulated to members of the Board of Regents just prior to the meeting. President Thompson reported that one of the goals for the institution for fiscal year 1994 was the development of an enrollment management plan. He reported that in connection with development of an enrollment management and marketing plan the institution had interviewed seven advertising agencies who all are to submit proposals to the administration next week. He said the administration anticipates selecting a firm in early December. The purpose will be to have the agency assist the institution in development of a new and different image for the institution. He reported that another major concern of the institution for FY 1994 was the adoption of a general education core. He then yielded the floor to Vice President for Academic Affairs, Dr. Wayne Sheley, who reported that just minutes before the Board of Regents meeting, a committee had adopted a proposal identifying nine different skill areas and also adopted new distribution requirements. He reported that these distribution requirements will require students to have twelve credit hours in the arts and humanities with three credits in the arts; twelve credit hours in mathematics and natural sciences with three credit hours required in mathematics; twelve credit hours in social sciences; and, six hours in english. The proposal, adopted by the Council of the College of Arts and Sciences, will go next to the University Council, probably in January. Dr. Sheley said the institution would like to have these new general education requirements in place by 1995 so that a couple of years of experience with these requirements can be had before the accreditation visit by representatives of the North Central Association. Regent Felker was recognized and reported that there have been rumblings from the community that Dr. Thompson is cutting programs on his own. Mr. Felker said that the program review process is not something that President Thompson is doing on his own, but by requirement of the Board. He said that if Washburn University is going to be in the state system in the future, it will have to defend each class course or have them eliminated by the state. He said we're going to start from scratch and review every program we have. He said he's been informing persons that the University is not your father's Washburn University anymore, that whether or not Washburn is in the state system, the programs are going to have to undergo microscopic review. President Thompson reported that the administration had intended to give the Regents an overview of a program review process and how priorities are established; however, he felt that we were not adequately prepared to make such a presentation. He said the report will be ready for January and that it will identify how priorities are established and outline a ten year goal as well as provide one three and five year time plans. Both Mayor Felker and Regent Hodges indicated that it was important for the administration to take the time to make a complete report, whether that be three or four hours, and that the report be delayed until the administration is fully prepared. Faculty representatives to the Board Mr. Heim and Dr. Schmidt reported that the consensus of the faculty appears to be that they are supportive of the program review process but concerns had been raised by the nature of the Board's questions about what the program review process will deliver for the institution as presently configured. President Thompson reported that the administration has invited a cross section of community leaders for government, industry, business, labor, and education to meet on the University's campus December 9 from 1:00-4:00 p.m. in a meeting to be moderated by Howard Fricke of the Security Benefit Group. He said the purpose of the meeting is to talk with these leaders about the programs offered by the institution, where we should put our resources in the future and what new programs might we consider implementing to meet their needs. President Thompson then asked Vice President for University Advancement, Darvin Hawley, to give the members of the Board an update on fundraising for the Alumni Convocation Center. Vice President Hawley reported that the general solicitation mailing has just been completed as of November 12 and that the institution is beginning to see some responses from earlier mailings to Shawnee County, Johnson County and across the state. He reported that as of November 15, the institution had $2.556 million in gifts and/or commitments against the goal of $3 million. He reported that there is also a goal to have $2 million in cash before construction of the Alumni Convocation Center can begin. He said he fully expects to have the $2 million in cash shortly after year's end. He reported that there are still a significant number of individual proposals out for consideration by putative donors which easily could result in the contribution of $100,000 to the University within the next 30 days or so. He said he looks to all of the members of the Board of Regents to be players in the fundraising campaign and if persons learn of others who have not yet been solicited, he/she should let the University Advancement Office know. President Thompson said, as a final matter, that the University's Masters of Social Work Degree program is currently in the hands of the Kansas Board of Regents staff and that it will probably appear on the Kansas Board of Regents agenda either in December or at the latest in January. IV. Old Business There was no old business. V.New Business A. Audit Reports 1. 1992-93 Berberich, Trahan & Co. Audit Report Vice President Mosiman introduced John Berberich and Brad Koehn of the accounting firm of Berberich, Trahan & Co. Mr. Berberich advised the Board that there are three differing standards applying to audits of the University. The first is the normal standards of the American Institute of Certified Public Accountants; the next is the Kansas Statutory Kansas Minimum Standard Accounting Program; and lastly is the Federal General Accounting Standards applying single audit requirements. He then walked the Board through parts of the audit report previously provided to members of the Board of Regents in the agenda item. He reported that the conclusion of the audit was an unqualified clean opinion and that there was nothing unusual in the report. He said the records of the institution were in excellent shape and that the staff at the University is a good one doing good work in the financial area. He reported that there are no material issues in the area of internal University controls and that the issue identified in the management letter pertains to the overaward of student financial aid in the amount of about $1,500. Regent Heitz arrived at 5:51 p.m. There was discussion whether additional controls need to be imposed with respect to financial aid awards. Regent Roth and Regent Hodges both indicated that in comparison with the $3.5 million in awards made by the institution, $1,500 is relatively insignificant. It was moved and seconded to accept the audit report of Berberich, Trahan & Co. Motion passed unanimously. It was moved and seconded to reappoint the accounting firm of Berberich, Trahan & Co. to perform the audit of the institution's fiscal year 1994 as recommended. Motion passed unanimously. 2. Nebraska Student Loan Program Inc. Audit Mr. Mosiman reported that the Nebraska Student Loan Program Inc. audit was performed last spring and made a brief comment that there is a mass of churning information involved in awarding student aid awards and that there is, in his opinion, no way that the staff can be errorless. He did say, however, the staff will never stop striving for perfection in this matter but that, because of the volume of awards being made, perfection is not likely. The NSLP audit was presented for information only. B. Special Financial Reports 1. Strategic Financial Indicators - FY 1982-1993 Vice President for Administration, Mr. Mosiman, walked the Board of Regents through some of the comparative data found in the latter portion of their report beginning at page 41. Mr. Mosiman noted that much of the information compares the institution with independent, meaning private, colleges and universities. He reported that the net operating ratios found in V. through VIII. at page 43 compare the institution with public institutions. With respect to the contribution and demand ratios found in VIII. and IX. Mr. Mosiman articulated an explanation in each instance in which there was significant variance between Washburn's data and the data from the public four-year comparison pool. Mr. Montgomery arrived at 6:09 p.m. Mr. Roth said he believes that the information found in the Strategic Financial Indicators - FY 1982-1993 is valuable information and inquired whether there were any plans to incorporate this kind of information in setting of the goals such as, for example, increasing the demand ratio for instructional costs from 43.7% to 45%. Mr. Mosiman said that his area had not utilized these indicators as goals to be reached. President Thompson directed the institution's Executive Director for Institutional Planning, Dr. Sheldon Cohen, to incorporate these ratios in developing the ten year strategic plan to be presented to the Board at its January meeting. Regent Heitz expressed an interest in knowing when the University should start getting concerned about a decrease in fund balances. Mr. Mosiman said that while fund balances in dollar amount are going up, percentage-wise of the entire budget they are going down. He said that having a couple of million dollars in fund balances is "on the bubble." The report was presented for information only. 2. Budget Status Report Vice President Mosiman reported that the institution is in a tight budget year but anticipates that we will have a positive net operating result predicated on having $900,000 in unexpended appropriations at year's end. For comparison, the institution had $1.2 million in unexpended appropriation at the end of fiscal year 1993. He indicated that the institution is on the bubble, as we have lost revenue on the tax side. The Budget Status Report was presented for information purposes only. 3. Various Financial Reports on Washburn Endowment Association This item was presented to the Board for information purposes only. C. Policies 1. Proposal to Raise Administrative Purchasing Limits from $10,000 to $25,000 The Board of Regents heard on first reading a proposal to amend the existing University Bylaws Article III, Section 1 to raise the Purchasing limits from $10,000 to $25,000. It was the consensus of the Board, following discussion, that the current Bylaw should continue but that expenditures of more than$10,000 but less than $25,000 may be made and submitted for ratification at a subsequent Board meeting, with approval of the Chair or Vice Chair. 2. Revision to Facilities Use Policy It was moved and seconded to approve the revision to the Facilities Use Policy as proposed in the agenda item. Motion passed unanimously. 3. Christmas Eve Holiday Clarification It was moved and seconded to amend the exception statement to the Christmas Eve holiday to read as follows: "When Christmas Day falls on Saturday, a Sunday or Monday, there will be no Christmas Eve paid holiday." Motion passed unanimously. D. Loan Revision Request from Gamma Nu Alumni Association It was moved and seconded to authorize the administration to take steps necessary to implement revision to the loan by and between Washburn Endowment Association and the Gamma Nu Alumni Association as requested. Motion passed unanimously. E. Contracts for Goods/Services 1. Proposed Upgrade of IBM RS6000 It was moved and seconded to authorize the upgrade of the IBM RS6000 Model 350 for the School of Applied Studies to a Model 560 at a cost of $16,800. Motion passed unanimously. 2. Campus Street and Parking Improvements It was moved and seconded to authorize the administration to contract with Dinkel Construction Inc. in the amount of $343,000 for the following projects: 1. New service drive to the Memorial Union and construction of new entrance to the Union parking lot from Mulvane parking lot. 2. Replacement of deteriorated section of Jewell Avenue from 17th Street south to Carruth Hall. Associated storm sewer and sidewalks are included within this replacement. 3. Replacement and reconfiguration of parking lot located north of Benton Hall. This project would eliminate a hazardous intersection at Jewell Avenue. 4. Replacement of deteriorated section of College Avenue on the east side of Moore Bowl. Improvement of entrances to adjacent facilities is included in this replacement. 5. Construction of Jewell Avenue from Durow Drive to 21st Street west of Falley Field. Construction of sidewalk to parking lot 7 and extension of storm sewer lines is included in this project. Motion passed unanimously. 3.Contract Administrative Functions of Charitable Remainder Trust It was moved and seconded to defer to the January, 1994 meeting the proposal to contract with Guardian Trust Company for the administration of Charitable Remainder Trust of which the University is presently trustee. Motion passed with Mr. Hodges abstaining. (The administration is to distribute to the members of the Board of Regents the current University policies for bidding as well as the University Counsel's opinion on the legal requirements attached to bidding for University purchases and contracts.) 4.KTWU Direct Mail Campaign It was moved and seconded to authorize the administration to contract for a direct mail campaign to be conducted in late February, 1994 in the amount not to exceed $16,000; provided, however, that a complete audit be performed of the direct mail campaign by the administration. Motion passed unanimously. * 5. Benton Hall Computer Lab It was moved and seconded to approve the award of a contract to IBM for the purchase of a server and twelve X-stations in the amount of $51,800 ($44,000 from Account 13-06724 and $7,800 from Account 37050). Motion passed unanimously. F. Proposed Auction of Farm in Edwards County, Kansas It was moved and seconded to authorize the auction of the Edwards County farm for an amount not less than $20,000. Motion passed unanimously. G. Administrative Items It was moved and seconded to approve the items shown in agenda items G. 1 through 9. Motion passed with Mr. Hodges abstaining. Among the items approved were approval of: 3. Public Fund Investments 4. Depository Security Transactions, and 5. Liquidated Claims approval as set forth in the agenda item; 7. approval of a new Corporate Banking Resolution for United Missouri/Highland Park Bank; 8. the transfer of $15,332 from the Regents Contingency Account 78597 to the Sport Camps budgets shown on the transfer form; and, *9. the appointment of Diane J. Skelton from Student Activities Assistant (.50 FTE) to Student Activities Assistant/Publication Technical Advisor (.75 FTE) effective November 1, 1993 at an annual basic salary of $17,000 to be pro-rated from November 1, 1993 for the fiscal year of $11,333.36. * Items added to the Board of Regents Agenda at the meeting with the consent of the Board. It was moved and seconded to recess to Executive Session for a period not to exceed ten minutes for the purpose of a preliminary discussion on the acquisition of real estate and to reconvene thereafter in this room, this day in open session. Motion passed unanimously. The Board recessed to Executive Session at 7:00 p.m. The Board reconvened in open session at 7:10 p.m. It was moved and seconded to recess to Executive Session for a period not to exceed ten minutes for preliminary discussion on the acquisition of real estate and to reconvene thereafter in this room, this day in open session. Motion passed unanimously. The Board recessed to Executive Session at 7:10 p.m. At 7:17 p.m. the Board reconvened in open session. It was moved and seconded to authorize the administration to negotiate acceptance of a parcel of real estate described in an agenda item dated November 17, 1993, from Adams Business Forms, Inc. as an unrestricted gift subject to evidence of clear title, that it be free of lien, and that completion of a Phase I environmental study for determination of the existence of hazardous wastes show it is not likely that hazardous wastes are present on/in the property. Motion passed. It was moved and seconded to recess to Executive Session for a period not to exceed 15 minutes for the purpose of discussing personnel/legal matters and to reconvene thereafter in this room, this day in open session. Motion passed. The Board recessed to Executive Session at 7:18 p.m. At 7:24 p.m. the Board reconvened in open session. It was moved and seconded to: approve a leave of absence without pay for Associate Professor Don Mitchell in the Department of Computer Information Sciences; accept the resignation of Head Football Coach Dennis Caryl effective November, 1993, make payment of compensation to Mr. Caryl for November and December, 1993 and continue payment of his single member premium towards group health insurance coverage through June 30, 1994; and, to permit President and Mrs. Thompson to continue coverage in the University's group health insurance plan post-retirement at their/his/her expense until their respective demise. Motion passed unanimously. The meeting adjourned at 7:26 p.m. Kenneth P. Hackler Secretary, Board of Regents