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doc16753 4.27.22_BoardBook.pdf
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"text": "Special Called Meeting of the Board of Regents\nWednesday, April 27, 2022\n10:00 a.m.\n2nd Floor Julian M. Carroll\nAcademic Service Building\nFrankfort, Kentucky 40601"
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"text": "7. Consent Agenda\\nA. Approval of the Minutes for Prior Meetings\\n ^{{*}}Minutes of the December 3, 2021 Quarterly Meeting of the Board of Regents\\n ^{{*}}Minutes of the February 3, 2022 Special Called Meeting of the Board of Regents\\nB. Land Grant Purchases\\ni. Approve Purchase of Hydroponics Systems\\nii. Approve Purchase of Mobile Feeding System\\niii. Approve Purchase of Optical Emission Spectrometer\\niv. Approve Purchase of Synergy Hl Hybrid Multi-Mode Reader and Gas Controller\\nv. Approve Purchase of QuantStudio Absolute Q Digital PRC System\\nvi. Approve Purchase of Patient Simulators Software and SimPads\\nvii. Approve Purchase of Birthing Simulators",
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"text": "KENTUCKY STATE UNIVERSITY BOARD OF REGENTS\nQUARTERLY MEETING\nThursday, December 2, 2021 at 1:00 p.m.",
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"text": "Regent Ron Banks\nRegent Carolyn Burns, MD\nRegent Elaine Farris, Ed.D.\nRegent Edward Fields\nRegent Paul Harnice, Esq.\nRegent Dalton Jantzen\nRegent Rahul Reddy, MD\nRegent Roger Reynolds\nRegent Jason Robinson\nRegent Herman Walston, Ed.D.",
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"text": "Mr. Edward Fields was sworn in as the new Staff Regent before the meeting was called to order. Mr. Fields gave a brief introduction of his background at the beginning of the meeting and stated that he is looking forward to advancing KSU in this new role."
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"text": "Move the Board to adopt the agenda of the December 2, 2021 Quarterly Meeting. Seconded by Regent Fields and passed without dissent."
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"text": "Move the Board to approve the minutes of the September 2, 2021 Quarterly Meeting of the Board of Regents and the minutes of the October 19, 2021 Special Called Meeting of the Board of Regents with a correction to the October 19, 2021 minutes, adding “Ed.D.” after Regent Walton’s name."
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"text": "The nominees for Bred of the Quarter include: Jessica Burton, Jack Wollman, Andy Ong, Keymia Herve, Melvin Nichols, Rebecca Persons, Isaac Yett, Roderick Mozee, Adrian Douglas, Jameelah Means, and Nathan Cochran."
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"text": "Mr. Greg Rush, Vice President for Finance and Administration/CFO, introduced Mr. Craig Turner of CRM to provide an update on the new residence hall construction. Mr. Turner stated that KSU was able to secure an excellent rate when the bonds were sold. In fact, he said that it was the best financial package he has ever sold among all of the P3's he has worked with. Additionally, the same construction package bought today would be eight to ten million dollars more due to rising costs of materials. All in all, everything went very well."
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"text": "Mr. Turner provided a visual demonstration of what the residence halls will look like upon completion. There will be 410 beds and 300-350 person capacity in the dining hall. The dorms are being constructed to be as energy efficient as possible. The first payment will not be due until March of 2024 which will give the University some time to build up revenue. He stated that construction is on schedule with completion expected in November 2022 and move-in projected to occur in December 2022."
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"text": "Hon. Travis Powell, General Counsel and Vice President of CPE, reported that the Search Committee had an excellent first meeting. Kenny Daugherty from Myers McRae provided an overview of the search process for the Committee and the Committee had productive conversations about how the search process would work. For anyone interested, these meetings can be viewed live on zoom or at a later time on the University's YouTube channel."
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"text": "Mr. Powell stated that there is no formal timeline for the search process. Currently, the Committee is gathering information for the leadership profile which is scheduled for approval on December 17, 2021. The Committee members will then compile all of the candidate information and meet in closed session at the end of March to discuss the candidates. From that pool, the Committee will pick 12-13 candidates to invite to a zoom interview. After the zoom interview, they will choose five to six candidates to meet in person in an undisclosed off-campus location to maintain confidentiality. The Committee will then take action on two to three candidates for Board consideration and will continue the search process if they don’t get the right candidate."
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"text": "Dr. Aaron Thompson, President of CPE, commenced the update by stating that the Management and Improvement Plan has been approved by the CPE Board and it will now go to the Governor. CPE has also presented the outcome of the financial analysis to the Governor. The next part of the process will be restructuring the budget."
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"text": "Mr. Powell reported that some focus areas of the Management and Improvement Plan will be more complete than others by the time the plan is put in place, as certain components such as financial controls are an immediate need. Conversations and meetings have occurred regarding all of the focus areas."
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"text": "Regent Farris requested updates on progress of the focus areas. Dr. Thompson stated that he can provide a project plan with milestones and deliverables."
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"text": "Mr. Rush shared that the University is in a better financial position and has not had to take any draws on the Revenue Anticipation Note. He stated that he had hoped that he wouldn't have to dip into the January allotment but it has become necessary because of timing. There are still some lingering issues but bills are being paid on time and the average balance is down. The $23 million requested from the legislature will just get the University back to zero."
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"text": "Regent Harnice said that he hoped that CPE will assist KSU in projecting the pension liability in the five year budget plan. Mr. Rush replied that KSU currently pays a fixed amount which is subject to change based on the pension situation and it will have to be worked into the budget each year."
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"text": "Regent Farris asked if Mr. Rush would be bringing a budget structure broken down by units. Mr. Rush stated that he is working on the budget structure and it will be brought to the Boa[p7.7.1] at a Special Called Meeting on February 3 rd.",
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"text": "Mr. Rush stated that accommodating students is still a challenge and anticipates using three floors of the Capital Plaza Hotel in the Spring. Keeping students in one hotel is more efficient and helps operations run smoother. One wing of the Best Western is being reserved for COVID isolation and quarantine which will be funded by CARES money."
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"text": "Mr. Rush reported that KSU’s pool in Exum Gym has closed due to a failed boiler and faulty infrastructure. The repairs are estimated to cost $150,000 to $200,000. The Asset Preservation Fund could potentially be used for repairs if the $23 million request is approved by the General Assembly. The project will be have to be taken to CPE and, if approved, the pool realistically won’t be open until next fall."
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"text": "Regent Walston inquired about turning Hillcrest back to the former status as the President's house. Mr. Rush responded that the Board would have to make that decision. Regent Farris stated that the Board approved the change from the"
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"text": "President’s House at a meeting and it can be brought back for consideration. General Counsel Lisa Lang recommended waiting until there is a Presidential candidate due to a tax issue that needs to be negotiated."
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"text": "Regent Banks inquired about Russell Court Apartments and Mr. Rush stated that Russell Court could potentially be handled through the Asset Preservation Fund and needs to be addressed in the Master Plan."
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"text": "Dr. Leroy Hamilton Jr, Provost and Vice President for Academic Affairs, updated the Board on Academic Affairs matters. He stated that 1.097 students enrolled in the Fall and 192 new students are currently enrolled for the Spring Semester. Enrollment continues to increase while full-time faculty has declined. Discussions are underway about how to address this issue."
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"text": "Dr. Hamilton shared that 12 students need to be enrolled in a course in order for the course to break even financially. Academic Affairs is exploring several options to address this issue including customized registration, reducing the number of multiple courses offered at the same time, avoiding carry-over from semester to semester, and utilizing the entire workday to maximize course offerings."
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"text": "All final exams will be held online again and this process has received a lot of positive feedback. Dr. Hamilton stated that online exams have not had a negative impact on students' final grades."
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"text": "Regent Farris requested the amount that KSU has paid in adjuncts due to low course enrollment. She stated that this amount is interrelated to the Board's guiding principles as they consider the new budget. Dr. Hamilton stated that he has access to this information and can bring it back."
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"text": "Attorney Lang reported that she spoke with President Stamps and Mr. Powell regarding a two-fold approach to the policies and procedures process, including pulling together all University policies to ensure alignment with state law and University policies and creating a policy process."
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"text": "Move the Board to approve the purchase of a cabinet x-ray irradiator system. Seconded by Regent Reynolds and passed without dissent."
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"text": "Regent Ron Banks\nRegent Carolyn Burns, MD\nRegent Elaine Farris, Ed.D.\nRegent Edward Fields\nRegent Paul Harnice, Esq.\nRegent Dalton Jantzen\nRegent Gerald Patton, Ph.D.\nRegent Rahul Reddy, MD\nRegent Roger Reynolds\nRegent Jason Robinson\nRegent Herman Walston, Ed.D.",
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"text": "Move the Board to appoint Dr. Gerald Shields, CFO of Kentucky State University, as Treasurer of the Kentucky State University Board of Regents."
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"text": "Hon. Travis Powell, Vice President and General Counsel of CPE, began by providing and update on the Presidential Search. He reported that the Presidential Search Committee approved the leadership profile for the candidates. The position was then posted on all of the major higher education recruiting websites and thirty applications were received in response to the posting. The deadline for selecting candidates for video interviews is March 29th and campus visits will occur in mid-April. Mr. Powell stated that the timeframe may be adjusted relative to the progress of House Bill 250 because candidates may want to see what occurs with this legislation prior to the interview process. The goal is to bring two or three quality candidates to the Board."
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"text": "Regent Patton inquired about the role of the Board of Regents in the search process. Regent Farris responded that the Board decided at a meeting to form a search committee and that the representation of the committee and the search committee charge were approved by the Board. It was decided that the Regents would not serve on the committee due to issues that occurred in the prior presidential search. The Board also voted that Mr. Powell chair the committee. The final decision of who the President will be will come back to the Board of Regents. Dr. Aaron Thompson, President of CPE, also replied that the Executive Order gave CPE some authority to work with the Board of Regents during the search process and CPE is there to be a partner with KSU in the search for a new president. The KSU Board of Regents has not yielded authority to anyone."
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"text": "Regent Patton asked which factors were utilized to determine that KSU needed the Management and Improvement Plan in areas other than finance when it appears that all of the other areas were functioning appropriately according to the SACSCOC documentation he has read. Regent Farris responded that everything is on the table when facing a $23 million problem. All areas need to be looked at from a different perspective and the Board needs to make sure that all areas are efficient and effective and that all programs are doing what they need to do and are revenue bearing. Dr. Thompson stated that an excessive amount of spending and debt occurred in the three years after SACSCOC review which necessitated the Management and Improvement Plan."
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Page 27
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Page 28
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Page 29
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16 · CAPTION
17 · TABLE
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54 · TABLE
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76 · FOOTNOTE
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78 · FOOTER
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"text": "HB 250, an act relating to Kentucky State University (KSU), making an appropriation therefor, and declaring an emergency, was signed by the Governor on April 8, 2022 and became effective immediately. The following provides a review of its actions and how they impact KSU and the KY Council on Postsecondary Education (CPE)."
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"text": "Create a new Financial Exigency Policy by May 15, 2022. A copy must be provided to CPE and LRC by June 1, 2022.",
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"text": "In consultation with CPE, conduct review of all departments and academic programs then eliminate or change department or program by April 8, 2023.",
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"text": "In consultation with CPE, conduct a performance review of all faculty and staff by April 8, 2023. If there is not enough information on tenured faculty, this process can be delayed but not past April 1, 2024. Tenured faculty must undergo an additional post tenure review by June 2027."
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"text": "Submit request for $23 million with supporting documentation and make recommendations to CPE for further investigation, if conduct has risen to level of a crime."
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"text": "Report progress to Interim Joint Committee on Education on June 1 and November 1 of each year.",
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"text": "Section 1. (1) The General Assembly hereby finds a significant lack of efficiency and effectiveness in the instructional and operational performance of Kentucky State University and determines that immediate appropriate corrective action is warranted as follows:"
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"text": "Whereas Kentucky State University does not have sufficient resources or reserves to continue operating as currently structured, the General Assembly declares that a state of financial exigency exists at Kentucky State University from the effective date of this Act until June 30, 2023. Notwithstanding any existing Kentucky State University policies relating to financial exigency, the Kentucky State University board of regents shall execute a new financial exigency policy by May 15, 2022, that will expedite the restructuring of university operations. The board of regents shall provide a copy of the new exigency policy to the Council on Postsecondary Education and the director of the Legislative Research Commission by June 1, 2022;",
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"text": "In accordance with KRS 164.350 and 164.365, the Kentucky State University board of regents has the authority to terminate employment of any university employee, including tenured employees, upon 30 days' notice in accordance with the university's personnel policies and subject to the recommendation of the president or acting president, or in the case of the termination of the president or acting president, the recommendation of the Council on Postsecondary Education;",
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"text": "The Council on Postsecondary Education shall approve any Kentucky State University expenditure greater than $5,000, and the university shall provide a monthly report of university finances to the council in the format requested by the council. The council shall provide a monthly update on the financial status of the university to the Governor and the Legislative Research Commission. The financial oversight granted to",
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"text": "Within one year of the effective date of this Act, the Kentucky State University board of regents, in consultation with the Council on Postsecondary Education, shall conduct a thorough review of all university departments and academic programs for long-term viability, financial stability, alignment with the university's mission, and other criteria determined by the board and the council. In accordance with accreditation requirements, the board shall eliminate or make changes to any department or program found to be ineffective, inconsistent with the university's mission, or otherwise not meeting the review criteria;",
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"text": "1. Within three months of the effective date of this Act, the Kentucky State University board of regents, in consultation with the Council on Postsecondary Education, shall develop a process to review all faculty and staff performance, including a post-tenure review for tenured faculty as described in subparagraph 2. of this paragraph. The process shall ensure a consistently high level of employee performance and shall include but not be limited to assessments by peers, students, and administrators. In addition to evaluating an employee's growth, accomplishments, and skills, the process shall be used to identify deficiencies and ineffectiveness and redirect employee efforts to",
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"text": "22 RS HB 250/EN",
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"text": "continuing significant lack of efficiency and effectiveness in the governance and\nadministration of Kentucky State University. Upon the recommendation of the council,\nthe General Assembly may extend the council's involvement with and oversight of the\nuniversity beyond 2025."
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"text": "Section 3. (1) There is hereby appropriated to the Council on Postsecondary Education General Fund moneys in the amount of $23,000,000 in fiscal year 2021-2022 to address financial instability at Kentucky State University, including a cash shortfall due to prior year deficits and a projected financial structural imbalance in fiscal year 2021-2022. Prior to receiving any disbursement of the funds from the council, the university shall submit a request with supporting documentation required by the council for the council's review and approval and make recommendations for further investigations necessary, if any conduct has risen to the level of a crime. The total disbursed to Kentucky State University shall be a non-interest bearing loan to be repaid by university. Funds not disbursed to the university shall be deposited to the loan repayment trust fund created in Section 4 of this Act."
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"text": "By November 1, 2025, the Council on Postsecondary Education shall make recommendations to the Interim Joint Committee on Appropriations and Revenue for consideration by the General Assembly during the 2026 Regular Session for the terms and schedule for repayment of the loan beginning in fiscal year 2026-2027 based on ongoing monitoring of Kentucky State University's financial status.",
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"text": "The council shall provide an annual report to the Interim Joint Committee on Appropriations and Revenue detailing the status of the Kentucky State University loan by November 1, 2026, and by November 1 each year thereafter for as long as the loan is in effect.",
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"text": "Section 4. (1) The Kentucky State University loan repayment trust fund is hereby created as a trust fund in the State Treasury to be administered by the Council on Postsecondary Education for the purpose of receiving loan payments as described in"
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"text": "The trust fund shall consist of amounts repaid by Kentucky State University and any amounts not disbursed to the university as described in Section 3 of this Act.",
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"text": "→ Section 5. There is hereby appropriated to the Council on Postsecondary Education General Fund moneys in the amount of $5,000,000 in fiscal year 2022-2023 and $10,000,000 in fiscal year 2023-2024 for the purposes of distributing funds to Kentucky State University, as determined by the council, as goals and benchmarks are met by the university in accordance with the management improvement plan established in Section 2 of this Act. Nothing in this section shall be considered as a performance fund distribution under KRS 164.092, and the university shall be included in the comprehensive funding model as described in KRS 164.092."
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"text": "Section 6. There is hereby appropriated to the Council on Postsecondary Education General Fund moneys in the amount of $1,500,000 in fiscal year 2022-2023 for the costs incurred by the council in carrying out its duties described in Sections 1 to 3 of this Act."
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"text": "Section 7. Whereas the financial health and success of Kentucky State University, a comprehensive, historically Black land-grant university, is vital to the well-being of Kentucky's postsecondary education system and the students it serves, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law."
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"text": "As part of the responsibilities granted to the Council related to Kentucky State Universities (KSU) in HB 250 (2022), Section 1.(1)(c) of states the following:"
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"text": "The Council on Postsecondary Education shall approve any Kentucky State University expenditure greater than $5,000, and the university shall provide a monthly report of university finances to the council in the format requested by the council. The council shall provide a monthly update on the financial status of the university to the Governor and the Legislative Research Commission. The financial oversight granted to the council under this paragraph shall continue until the council reports to the Governor and the Legislative Research Commission that the university's finances are stable;"
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"text": "All contracts and personnel actions must be approved by the KSU Board of Regents or designated Committee before resulting expenditures will be approved. Contracts and personnel obligations occurring before the effective date of HB 250, April 8, 2022, will be considered approved by the KSU Board of Regents."
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"text": "CPE staff may will contact KSU with any questions or clarifications regarding the request. Requests may be revised or withdrawn at any time."
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"text": "Finance and Administration\nAcademic Services #202 | 400 East Main Street\nFrankfort, KY 40601 | (502) 597-6343\nKYSU.EDU",
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"text": "I am submitting this request to the Kentucky Council on Postsecondary Education (CPE) to disburse $17.5 million to Kentucky State University (University) to carry the University through the months of April, May, and half of June 2022. As justification for this request, I would provide the following information on behalf of the University:"
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r4c0 (36%): “Continue Audit Support for FY 2021 and preparation for FY 2…”
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"text": "As a final note, the University states that, in its review of the University’s financial records, the University has uncovered excessive spending, but has not uncovered any criminal activity. As part of on-going litigation, outside counsel is engaging a team of forensic accountants to investigate financial activities during the tenure of Dr. Brown. The University will also work with the Auditor of Public Accounts or a firm of the APA’s choosing to conduct a more in-depth review of the University’s finances. If criminal activity is discovered the University will report it to the appropriate law enforcement agency and CPE."
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"text": "As always, KSU appreciates CPE's diligent oversight and continued support of Kentucky State University. Please do not hesitate to contact me if you have any further concerns or questions."
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