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.
