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OREGON STATE BOARD OF HIGHER EDUCATION
MINUTES OF EXECUTIVE COMMITTEE MEETING
BOARD ROOM, ERB MEMORIAL UNION
UNIVERSITY OF OREGON
EUGENE, OREGON

February 18, 2000

CALL TO ORDER

An Executive Committee meeting of the State Board of Higher Education was called to order by President Imeson at 7 a.m.

ROLL CALL

On roll call, the following Executive Committee members answered present:

Dr. Herb Aschkenasy
Mr. Don VanLuvanee
Mr. Jim Willis (arrived at 7:05)
Ms. Phyllis Wustenberg
Mr. Tom Imeson

PRESIDENT'S REPORT

President Imeson noted that the only OUS staff member present was Board Secretary Diane Vines, and that other senior staff had elected not to attend the meeting in an effort to promote more open discussion with Deloitte & Touche staff regarding their findings. To present the external audit report, he introduced David Riley from the OUS Controller's Division, who was joined by Sharon Walker and Mary Nicholson Hill from the Secretary of State's Office Audit Division, and Donald Riggs from Deloitte & Touche.

PRESENTATION BY DELOITTE & TOUCHE

Mr. Riggs, upon inquiry from Dr. Aschkenasy, clarified the process for hiring an outside auditor. He then reviewed the external auditor's report of the 1998-99 OUS annual financial statements, including a review of the schedule of federal awards and the details of government compliance regulations related to the timing of certain reports. (The annual financial statement and auditor's report are on file in the Board's office.)

Discussion ensued about which items from the audit should be brought to the attention of the campus and System leadership. Mr. Riggs stated that, overall, the problems identified last year have been remedied. Specifically regarding the area of computer security, Mr. VanLuvanee suggested that individuals from the Information Technology industry be utilized for advice on computer security issues for the System. The Committee concurred.

Ms. Walker and Ms. Nicholson reported that campus audits are in process and include audits of foundations, credit card use, and employee terminations. Ms. Wustenberg asked about the role of the Board regarding the relationship between campuses and foundations. Mr. Riggs responded that the foundation balances were not audited by Deloitte & Touche because they were not considered a direct entity of the System.

Dr. Aschkenasy moved and Ms. Wustenberg seconded the motion to accept the 1998-99 external audit report as submitted. The following voted in favor: Directors Aschkenasy, VanLuvanee, Willis, Wustenberg, and Imeson. Those voting no: none.

CEO SALARIES

President Imeson reviewed the recommendations for CEO compensation. He announced that Presidents Bernstine and Youngblood had chosen not to accept their salary increases (awarded for the turnaround of campus performance) until faculty negotiations on their campuses were completed.

Members of the Committee agreed that staff and the presidents could refine the CEO evaluation process to move from a rules-based to a more results-based system of evaluation, which would evaluate more than just campus performance.

Mr. VanLuvanee moved and Dr. Aschkenasy seconded the motion to refer the presidents' salaries recommendation to the full Board for a final vote. Mr. VanLuvanee moved and Ms. Wustenberg seconded the motion to refer the Chancellor's salary recommendation to the full Board for a final vote. The following voted in favor: Directors Aschkenasy, VanLuvanee, Willis, Wustenberg, and Imeson. Those voting no: none.

ADJOURNMENT

The Executive Committee meeting adjourned at 7:55 a.m.

Diane Vines
Secretary of the Board

Tom Imeson
President of the Board