Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 285]

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274

BOARD OF TRUSTEES

[June 18

EXECUTIVE SESSION An executive session was requested and ordered for consideration of a personnel matter. President Ikenberry stated that he wished to report on a serious matter which has been under investigation during the last three weeks — a matter having to do with failures by a University employee to account properly for certain funds held by the University of Illinois Foundation and the University. H e asked Executive Vice President Brady to review the subject in some detail. In brief, the matter involves the payment over the last 18 months of some $575,000 in foundation funds and some $33,000 in University funds for purposes in no way connected with foundation or University business. Mr. Brady further reported that Robert N. Parker has resigned as assistant treasurer of the foundation and as deputy comptroller and senior associate vice president of the University on June 16, 1981, effective immediately, and that the resignations have been accepted by the president of the University. The auditing firm of Coopers and Lybrand has been employed to undertake immediately an audit of the foundation accounts; the issuance of all checks by the foundation has been stopped, except upon authorization of the executive vice president; and Mr. Parker has been advised of his option to resign, an option he selected, with the knowledge that at this meeting of the Board of Trustees the president was prepared to initiate dismissal proceedings against him. Mr. Brady further reported that surety companies of the foundation have been notified and that it was his expectation that the University would recover all of the funds. Finally, Mr. Costello, the university counsel, reported he and others would go to the state's attorney for Champaign County today (June 18) to inform him of the findings and to place the matter in his hands for such disposition as he might make of it. As to future steps, there will be a study of the office of the comptroller and of the possibility of strengthening die fiscal operation of the foundation. Following such steps, a position will be defined to carry out the duties and responsibilities assumed by Mr. Parker and a recommendation to the board will be brought forward in due course. EXECUTIVE SESSION ADJOURNED FOR COMMITTEE MEETINGS Mr. Stone announced diat the executive session would be adjourned for a meeting of die Buildings and Grounds Committee and a meeting of the board as a Committee of the Whole. 1

1 Earlier the Board of Trustees met as a Committee of the Whole to receive further information on the appropriation request for 1981-82. In addition, the board as a Committee of the Whole conducted another hearing on the question of consolidation of the two Chicago campuses, receiving testimony from a number of officers and faculty members of the Chicago Circle campus; from the Nonacademic Employees Council representative to the State Civil Service Merit Board; and from the chairman of the General University Policy Committee of the Urbana-ChampaigB Senate.