Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 131]

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122

BOARD OF TRUSTEES

[January 20

point. We are well beyond the stage of potential damage; a decline in quality is in progress and if steps are not taken, the damage will become irreparable. We urge action this year by the Governor and the General Assembly to restore the University of Illinois and the rest of higher education to its proper priority and increase significantly State support. If this is to be done, we recognize that prompt action must be taken by the Governor and the General Assembly to restore fiscal health to Illinois State Government. We therefore will support essential tax reform and increases in the State income tax and other revenue sources. These steps, tax reform and significantly stronger support for the University of Illinois, are essential to the economic and intellectual health of the State. T h e resolution was unanimously a d o p t e d .

OLD AND NEW BUSINESS Report, Recovery of Misappropriated Funds Mr. Costello reported (as he had done in the executive session) on the fact that full recovery will be made of funds misappropriated in the course of the Parker case. T h e full report is as follows:

T h e University and the Foundation will recover the more than $600,000 in University and Foundation funds which Robert N. Parker transferred and spent without authorization. The final closing documents are being executed by all parties, including two insurance companies, a bank, the University, the Foundation, and the Foundation's subsidiary, U.D. Corporation, through which the funds were channeled. There will be a full and complete restoration to the University and to the Foundation of all funds which Mr. Parker transferred to others without authority. We are gratified by the favorable disposition of this difficult and complex matter which has been of deep concern to the Foundation, to the University, and to their friends and supporters. Recovery rights against Mr. Parker and those who ultimately received the improper payments are retained by the insurance companies.

Amendment to the Bylaws of the Board of Trustees to Establish a "Finance and Audit Committee"

(1) T h e Board of Trustees has expressed an interest in the establishment of means by which the board can maintain oversight of the auditing function and has asked the president of the University to make recommendations. T h e president now has recommended the renaming of the Board of Trustees' Finance Committee as the "Finance and Audit Committee." T h e redesignated committee would, in addition to its previously existing functions, review the previous year's internal audit program and the direction of the program to be followed in the year ahead, and review with the comptroller the annual financial audits, including any specific issues of concern. As appropriate, background documents related to specific audit issues would be sent to committee members during the course of each year. In order to accomplish such a change, it is necessary to amend the Bylaws of the board by amendment submitted in writing and furnished each member at the beginning of a regular meeting. Therefore, the question is presented: Whether the Bylaws of the Board of Trustees and other University documents shall be amended by the addition of the words "and Audit" to the name of the Board of Trustees' committee styled "Finance."