Call to
Order
The meeting
was called to order at 1:09 p.m.
Roll
Call
Present:
Brannan, Proctor, Smith, Laverty
Absent:
Canady, Pelleran, Rasmusson
Limited
Public Comment Regarding Agenda Items
Howard Jones,
resident of Lansing. Mr. Jones stated that he and his wife are long
time supporters of Lansing Community College's Foundation. He
further stated that he was surprised to read about what was going on
at Lansing Community College. Mr. Jones commented that he did not
read, within the internal audit report, where Mr. Tim Zeller's was
contacted and felt this investigation was one sided. He stated that
we needed to resolve the problems at the college. Mr. Jones felt
that as taxpayers we need to know what is going on with the Board as
well as with the executive office. He wanted to know why the
community's money is being questioned. Mr. Jones stated that the
college needed to adopt a policy where people could obtain
information without a FOIA (Freedom of Information Act). Mr. Jones
also stated that Lansing Community College should adopt a new policy
where every student that receives an associate degree is required to
take a course in government that would include citizen's
responsibility in a democracy.
AUDIT
COMMITTEE REPORT
Trustee
Brannan stated that serious allegations were made by a former
Lansing Community College employee, Tim Zeller, against the office
of the Interim President Judith Cardenas. He stated that Mr. Zeller
acted as General Counsel to the college and that Mr. Zeller knew
that the Board has been in the process of hiring a new General Legal
Counsel and that it was not a secret that Mr. Zeller's days in his
job were numbered. Trustee Brannan said that in his opinion he
believed that Mr. Zeller was a disgruntled employee whose on going
actions were divisive to the college. He stated that based on the
allegations Mr. Zeller made against the President's office and based
on other evidence that may not completely be explored today in this
report, Tim Zeller's many mistakes over time have cost the college
thousands of dollars. Trustee Brannan said that the Board of
Trustees had been forced to hire outside legal counsel to fix and
address the many mistakes that Mr. Zeller has made in the past. He
stated that what the Board did not foresee or expect was that in Mr.
Zeller's failing desperate attempt to save his own job, he would
smear and disparage President Judith Cardenas with malicious
statements that were published and broadcasted by the local media.
Trustee Brannan reported that in the volumes of documents reviewed,
and the hours of interviews conducted, the Board's Audit Committee
found that all of the allegations made against the President are
false. He also said nothing that President Cardenas did could be
consider abuse or fraud and that she is innocent of all allegations.
Trustee
Brannan introduced attorney Bev Baligad who coordinated the audit
effort, Hoa Nguyen, Lansing Community College's Executive Director
of Compliance and Internal Control, and Michelle Gallagher, an
outside forensic auditor who has reviewed all the material presented
today and who has conducted hours of interviews investigating these
false allegations.
Ms. Baligad
reported that Michelle Gallagher reviewed all the documents of the
Internal Auditor and that she also interviewed Mr. Tim Zeller and
President Judith Cardenas. She stated that Hoa Nguyen focused his
investigation on the five specific allegations reported to the
Auditor General.
Mr. Nguyen
reported that this special investigation was requested by President
Cardenas and approved by the Chair of the Audit Committee on
Thursday, September 28, 2006. He stated that the objective of the
investigation was to determine if college funds were misused and if
applicable college policies were violated. Mr. Nguyen also stated
that in performing his investigation he analyzed and verified
pertinent documents and records from the following college
departments, the Human Resource Department, Business Office,
Accounting and Payroll, Purchasing and the President's Office.
Mr. Nguyen
and Ms. Gallagher presented their findings to the Board.
Both final
reports are on file with the official Board materials.
Allegation #1:
The Interim President is approving inordinate amounts of overtime
for three or four support staff in the President's Office. For
example, one employee received over $12,000 in overtime within a
five month period. An employee is being paid "extra responsibility
dollars" for taking on additional work, and has been paid overtime
for weeks when she took vacation time for her regular hours.
Mr. Nguyen
presented his findings and found that the allegation was without
merit.
Ms. Gallagher
agreed and found that the allegation was without merit.
Discussion
followed.
Allegation #2:
The President has given lucrative increases to the support staff
without following the hiring process and/or reclassification
process.
Mr. Nguyen
presented his findings and found that the allegation was without
merit.
Ms. Gallagher
agreed and found that the allegation was without merit.
Discussion
followed.
Allegation #3:
The President and staff have made
multiple purchases on LCC credit cards. Complainants alleged that
the President has bought extravagant gifts for employees, spent
money inappropriately on meals for employees or others, and
circumvented the purchasing policy by using college credit cards for
purchases of college related items.
Mr. Nguyen
presented his findings and found that the allegation was without
merit.
Ms. Gallagher
agreed and found that the allegation was without merit.
Discussion
followed.
Allegation #4:
The Interim President has hired an employee to help her write a book
and/or work on her degree completion projects, paying the employee
through the college.
Mr. Nguyen
presented his findings and found that the allegation was without
merit.
Ms. Gallagher
agreed and found that the allegation was without merit.
Discussion
followed.
Allegation #5:
The President has purchased items or services from a company with
whom she has a consultant relationship.
Mr. Nguyen
presented his findings and found that the allegation was without
merit.
Ms. Gallagher
agreed and found that the allegation was without merit.
Mr. Nguyen stated that in
conclusion he found nothing to substantiate the misuse of college
funds and/or violations of college polices other than the failure of
the President's Office employees to process the college card charges
through iExpense in a timely manner.
Trustee Smith
commented that it was very unfortunate that these allegations were
not brought forth to the Board of Trustees Audit Committee initially
and that the allegations have caused the community great unrest. She
stated that as the allegations were brought forth to the community
in a very big way that hopefully the findings will set the community
at rest. Trustee Smith stated that the college is trying to move
forward and thinks this is an attempt to try and hamper this
process. She commented that the community can see that the Board was
quick to respond to the allegations and to bring this matter to a
close and hopes it puts the community at rest.
Trustee
Brannan thanked Hoa Nguyen, Michelle Gallagher and Bev Baligad for
the hard work they have done. He stated that there is a process to
follow at the college with regards to allegations and that they are
to be brought to the Audit Committee. He further stated that it can
all be done anonymously. Trustee Brannan commented that it was
unfortunate that circumstances have led to this misinformation that
was malicious in nature and without verification. He apologized to
President Cardenas that this happened.
Mr. Hoa
Nguyen stated that he would like to recognize before the Board the
full cooperation that he received from each and every department and
every employee. He also stated that their professional manner and
assistance made his job easier.
Ms. Gallagher
thanked President Cardenas and Mr. Tim Zeller for being forthright,
open and fully cooperative in their interviews with her. Ms.
Gallagher stated that Mr. Zeller asked who he should forward
comments that he may continue to receive from staff. Ms. Gallagher
responded that she told Mr. Zeller that any complaint should be
filed through the secure and anonymous website
BOT@michlaw.org and that anything that comes to this website
will be reviewed and appropriately assigned.
Ms. Bev
Baligad stated that this website was first put in place during the
investigation of the Ad Hoc Committee. She stated that it was to
give individuals a confidential venue to give the Board direct
information. Ms. Baligad explained that she is the only person that
receives the email and is the only person authorized to view that
website and that certain issues are forwarded to the Audit Committee
and if a person wishes to remain anonymous, she has a duty to erase
that individual's information before forwarding to the Audit Chair.
Chairman
Laverty thanked Trustee Brannan, Hoa Nguyen, Michelle Gallagher, and
Bev Baligad for their extensive work and leadership on the audit
report.
The floor was
opened for discussion.
Chairman
Laverty stated that thanks to the evidence presented today, the
Board and Lansing Community College finally know the truth. He felt
that many of Mr. Zeller's actions have been negligent and that his
intention was to harm the President and Lansing Community College.
He stated that Tim Zeller made accusations, against President
Cardenas's office, to the State without any evidence or proof.
Chairman Laverty further stated that those false allegations were
repeated over and over in the media and that the media called him
and President Cardenas wanting a reaction. He questioned how anyone
could respond to false accusations before an investigation. Chairman
Laverty felt that this was an unfortunate example of tabloid
journalism. He stated that Lansing Community College and this town
deserved better. Chairman Laverty reported that the Lansing State
Journal filed a freedom of information request for all credit card
statements and credit cards used by the college. He stated that
there were over five-hundred cards in use at the college. He stated
that the public and the employees of Lansing Community College
should know exactly what the newspaper is doing. He also report that
the Lansing State Journal has filed a freedom of information request
for all salaries of employees in the President's office, all
timecards of employees in the President office, all emails sent and
received by Mr. Tim Zeller during a ten day period in September, and
all billing invoices from the Board's law firm Foster, Swift,
Collins & Smith, P.C. Chairman Laverty felt that with the public
knowing what the State Journal was up to, it would be of no surprise
that the college doesn't have that information readily available and
that it would take time and money. He stated that Lansing Community
College will provide all of the information that the law requires
them to produce and supports that. He commented that the intention
of this college is to return its focus to better serve the Lansing
Community College students. Chairman Laverty stated that Lansing
Community College will move forward with a national search to select
a new President, and the college is going to fix the computer
problem that have plagued the students and faculty. He also reported
that the college received a letter today from the State of Michigan
Office of the Audit General. It read as follows:
To: Dr. Judith Cardenas,
Interim President of Lansing Community College
Dear Dr. Cardenas,
I'm writing to notify you that
the Officer of the Auditor General is commencing a performance audit
of Lansing Community College. Michael L. Becker, CPA, Audit Division
Administrator for Audits of Community Colleges and Eldon M. Land,
Auditor Manager for Audits of Community Colleges will oversee the
audit. Anthony A. Alfred, CPA, will be the audit supervisor. If you
have audit related concerns you would like us to address or need
additional information regarding this audit please contact me or
Scott M. Strong CPA Deputy Auditor General.
Sincerely,
Thomas H. MacTavish, CPA
Auditor General
Chairman
Laverty stated that Webb Smith, Attorney of Foster, Swift, Collins
and Smith sent a letter to the Auditor General pledging the
College's cooperation, help and assistance in anyway. He commented
that the college is an open book with nothing to hide and welcomes
their coming in and taking a look at what is going on throughout the
college. He stated that the last time the college was audited by the
Auditor General was December 2001.
Trustee Smith
welcomed a closure for the events that have followed and looks
forward to the college redirecting its energy and efforts to its
primary focus of education. She stated that Lansing Community
College is where success begins and would like to start seeing those
successes a little more.
President
Cardenas thanked all the students, faculty and staff at Lansing
Community College for their undying support and commitment to the
job of providing success for our students. She stated that these
past few weeks have been trying in the community and have caused
people to pause and question the integrity of this institution. She
further stated that the college will no longer tolerate this type of
questioning. President Cardenas stated that the employees at Lansing
Community College are highly dedicated, to not only their job but to
ensuring that our mission is met on a daily basis and would like to
see that on the front page of the Lansing State Journal.
President
Cardenas commented that she continues to be committed and will
continue to state that it is an honor to be the Interim President of
Lansing Community College and does not take those responsibilities
lightly. She asked that we continue to pull together to move
strategically as we identify a new President and move this
institution in order for us to continue to serve the needs of a
changing community.
Chairman
Laverty announced that the Board would take a brief recess to
convene upstairs to conduct the interviews of the Board
Administrative Assistant. He asked for a motion for the full Board
to take the recommendation of the Personnel and Compensation
Committee if the Board loses a full quorum during the interview
process.
MOVED by
Trustee Smith and supported by Trustee Proctor that the full Board
accept the Personnel and Compensation Committee's recommendation for
the Administrative Assistant through the interview process and move
forward to the next Board of Trustees Meeting.
Ayes:
Brannan, Proctor, Smith, Laverty
Nays: None
Absent:
Canady, Pelleran, Rasmusson
Motion
carried.
Recess was
taken at 2:15 p.m.
INTERVIEWS
FOR BOARD ADMINISTRATIVE ASSISTANT
Anita Evans
opened each interview by giving the candidate initial instructions
and the job description.
Trustee Smith
asked each candidate the same set of questions.
Anita Evans
ended each interview by informing the candidate that the Board would
like to make a recommendation by the next Board of Trustees Meeting.
Candidate
#1 - Tim Aben
The interview
began at 2:43 p.m. and ended at 3:02 p.m.
Candidate
#2 - Lisa Backus
The interview
began at 3:16 p.m. and ended at 3:39 p.m.
Candidate
#3 - Erin Jones
The interview
began at 3:50 p.m. and ended at 4:05 p.m.
Candidate
#4 - Judy Class
The interview
began at 4:15 p.m. and ended at 4:32 p.m.
Candidate
#5 - Ava Mills
The interview
began at 4:47 p.m. and ended at 5:12 p.m.
Candidate
#6 - Benita Duncan
The interview
began at 5:32 p.m. and ended at 5:56 p.m.
Discussion
followed.
DISCUSSION
ON BOARD ADMINISTRATIVE ASSISTANT
The Board
returned back to the Boardroom at 6:46 p.m.
Chairman
Laverty reported that the interview process was completed and that
the recommendations from the Personnel and Compensation Committee
will be discussed at the next regular Board meeting on October 16,
2006.
The floor was
opened for public comment.
Trustee Smith
announced that the Board of Water and Light is having their National
Utility Month and that they have random acts of thank you's. She
presented a gift bag to President Cardenas and Chairman Laverty and
thanked them for being customers.
Chairman
Laverty stated that there was an issue to discuss in closed session
but due to not having a quorum they could not go into closed
session.
CLOSED
SESSION
No closed
session
ADJOURNMENT
MOVED by
Trustee Proctor and supported by Trustee Smith for the meeting to
adjourn.
Ayes:
Proctor, Smith, Laverty
Nays: None
Absent:
Brannan, Canady, Pelleran, Rasmusson
Motion
carried.
The meeting
adjourned at 6:48 p.m.
