Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 96]

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84

BOARD OF TRUSTEES

[October 11

In addition, the following persons were also in attendance: Mr. Donald K. Coe, director, University Office of Public Affairs; Mr. Kirk H a r d , executive assistant to the president of the University; and Mr. R. C. Wicklund, associate secretary. EXECUTIVE SESSION President Wolff, referring to Section T w o of the O p e n Meetings Act, stated: " A motion is now in o r d e r to hold an executive session to consider information regarding the appointment, employment, or dismissal of employees or officers, to discuss pending, probable, or imminent litigation, the acquisition of real property, to discuss campus security, and to receive legal advice from counsel." T h e motion was made by Ms. Reese and approved unanimously. Recommendation for Settlement of University Seminar Center Claim, College of Business Administration, Chicago President Ikenberry indicated that there was a recommendation for settlement before the board and asked Mr. Higgins to discuss this. Mr. Higgins explained that the situation involved a p r o g r a m for coordinating conferences and special short courses wherein the cognizant supervisor had not followed appropriate procedures and controls instituted by the University. T h e University discovered this fact and corrected the actions. Mr. Higgins indicated that the employee had been removed from his position immediately after discovery of his inappropriate actions. H e further explained that on this specific transaction, no money was lost to the University and that the settlement will be paid from the revenues of the p r o g r a m . Settlement of University Seminar Center Claim

(1) T h e Executive Education Program (EEP) of the College of Business Administration at Chicago was established with the goal of developing executive-level seminars. T h e majority of seminars were conducted by EEP under contract with various outside organizations. During Fiscal Years 1989 and 1990, it was noted that EEP was not following University procedures. Meetings were held with the director of EEP to review and explain University policies and procedures. T h e director continued to ignore these procedures. In this instance, the director contracted with University Seminar Center (USC) division of the Goldhirsh Group, Inc., for a series of seminars and programs. These services were provided during the period from May 1988, through June 30, 1990, at a cost of $778,000. T h e services were initially performed based upon an agreement between the EEP director and USC without University approval. T h e University received revenue of $993,000 from the seminars that were provided by USC. T h e director of EEP circumvented University procedures by stringing payments to USC through the Office of Business Affairs, totaling $335,000, using different contracts, purchase orders, and miscellaneous invoice vouchers. T h e remaining balance claimed by USC is $443,000. Even though USC had no legal contract with the University, it did provide services from which the University generated revenue, and it is entitled to be reimbursed for the value of its services.